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Friday 11 April 2014
Government Files Sentencing Memorandum in United States V. Robert MericleRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that it filed the Government's Sentencing Memorandum in United States v. Mericle.
Former Tax Preparer Extradited and Sentenced for Filing False ReturnsRead the Press Release
United States Attorney Deborah R. Gilg announced that Martin M. Mazarura, 33, was sentenced in the United States District Court in Omaha for preparing false individual income tax returns. The Honorable Joseph F. Bataillon sentenced Mazarura to the custody of the United States Bureau of Prisons for a year and a day. He was ordered to pay restitution in the sum of $82,738. After his release from prison Mazarura is to begin a one year term of supervised release although he is likely to be returned to Canada following his release from the Bureau of Prisons.
In 2006 Mazarura was engaged in the business of preparing individual income tax returns from his office at 72nd and Blondo in Omaha. The IRS Fraud Detection Center noted that Mazarura had submitted a number of returns containing inflated credits. The case was referred to the IRS Criminal Investigation Division.
The criminal investigation focused on 18 tax returns prepared by Mazarura. The tax loss to the United States from these 18 returns totaled $82,738. On these returns Mazarura claimed Telephone Excise Tax credits, additional Child Care credits, and Earned Income Credits when they were not applicable or, when applicable, claimed credits well in excess of the entitled amount. Mazarura provided his customers with dependents on their returns who were not dependents and frequently were unknown to the customer.
Mazarura is a citizen of Zimbabwe. He left the United States and took up residence in Canada. He was extradited from Canada upon the understanding that after his prison sentence he be allowed the opportunity to return to Canada.
“While most return preparers provide excellent service to their clients, a few unscrupulous tax preparers file false and fraudulent returns to defraud the government, the tax-paying public and their own clients,” said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation.
Former Hidalgo County Sheriff’s Office Chief of Staff Pleads GuiltyRead the Press Release
McALLEN, Texas - Maria Patricia Medina, 40, has entered a guilty plea to one count of misprison of a felony, announced United States Attorney Kenneth Magidson. Medina was the former chief of staff for former Hidalgo County Sheriff Lupe Trevino.
The investigation revealed that during 2011 and 2012, the former sheriff received cash contributions from alleged drug trafficker, Tomas “El Gallo” Gonzalez. Medina, who was the chief of staff and campaign treasurer, admitted she assisted Trevino in the concealment of the donations by falsifying election records.
Chief U.S. District Judge Ricardo H. Hinojosa accepted the plea today and has set sentencing for July 3, 2014. At that time, Medina faces up to three years in federal prison and a potential fine of $250,000.
The investigation leading to the charges was conducted by Homeland Security Investigations, Drug Enforcement Administration and Texas Department of Public Safety, Rangers Division. Assistant United States Attorneys James Sturgis and Anibal Alaniz prosecuted the case.Former Employee Pleads GuiltyTo Stealing $289,000 from A Wichita BankRead the Press Release
WICHITA, KAN. A former employee has pleaded guilty to embezzling at least $289,000 from a Wichita bank, U.S. Attorney Barry Grissom said.
Lisa Marie Evans, 43, Wichita, Kan., pleaded guilty to one count of embezzlement. In her plea, she admitted that from 2011 to 2013 she stole the money while working for Southwest National Bank in Wichita. She was responsible for balancing the bank vault on a daily basis. A surprise audit in April 2013 revealed the theft. Investigators examined security footage of the vault that showed Evans taking money from the vault and hiding it on her person.
Sentencing is set for June 30. She faces a maximum penalty of 30 years in federal prison and a fine up to $250,000. Grissom commended the FBI and Assistant U.S. Attorney Aaron Smith for their work on the case.Former Council Bluffs, Iowa, Resident Sentenced to 21 Months for Failing to Register as A Sexual OffenderRead the Press Release
COUNCIL BLUFFS, IA - On Friday, April 11, 2014, Jeramie L. Reazer, age 37, last known address in Omaha, Nebraska, was sentenced to 21 months imprisonment for failing to register with the sex offender registry by United States District Court Judge Stephanie M. Rose, announced United States Attorney Nicholas A. Klinefeldt. Judge Rose also ordered Reazer to serve a five-year term of supervised release following incarceration.
In May of 2013, law enforcement determined that Reazer had been residing in Mills County, Iowa, for approximately a month without registering with the Mills County Sheriff's Office as required by the Sex Offender Registration and Notification Act.
Reazer was required to register with the Mills County Sheriff’s Office as a result of a conviction for Sexual Assault in the Third Degree in Douglas County, Nebraska in 2005. On November 25, 2014, Reazer entered a guilty plea to failing to register with the Mills County, Iowa, Sheriff's Office as required when he began residing in rural, Mills County, Iowa.
The investigation was conducted by the Douglas County Nebraska, Sheriff’s Office and the United States Marshal's Service and the case was prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.
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Florida Woman Sentenced to 27 Months in Prison for Role in Real Estate Investment SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LORETTA SENECA, 51, of Boynton Beach, Fla., was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 27 months of imprisonment, followed by three years of supervised release, for her role in a real estate investment scheme. SENECA was also ordered to serve the first six months of supervised release in home confinement, and to perform 120 hours of community service.
According to court documents and statements made in court, between approximately November 2006 and December 2007, Robert Rivernider, Robert Ponte and SENECA engaged in a real estate investment conspiracy that defrauded both lenders and individuals they recruited. Rivernider is SENECA’s brother. As part of the scheme, Rivernider, Ponte and others recruited victim borrowers to take out financing to purchase various investment properties, primarily in Tennessee and Florida, with financing from victim lenders. Rivernider and Ponte typically represented to borrowers that these properties would be passive investments and that Rivernider and Ponte would be responsible for the details of the purchase, rental, maintenance and payment of the mortgages on the properties. The co-conspirators made false representations to the victim borrowers that Rivernider and Ponte would arrange for the purchase of the properties by the borrowers at markedly discounted values. In fact, Rivernider and Ponte frequently marked up the purchase price of the properties to the victim borrowers, often by as much as 25 percent, without disclosing the increase in the purchase price. Rivernider, Ponte and others also falsely represented that the investment properties would return to the victim borrowers sufficient monies to cover the carrying costs, as well as reduce the borrowers’ other debt burden.
Rivernider, Ponte, SENECA and others victimized lenders by making multiple false representations in loan applications and other documents provided to the victim lenders. SENECA, a trained mortgage broker, was actively involved in the real estate transactions, including organizing and gathering many of the materials needed by the victim lenders, gathering certain information from the victim borrowers, providing certain comparables based on properties brokered by Rivernider to be used for purportedly independent appraisals, and a range of other background tasks necessary for the lenders to make the loans.
This scheme involved at least 100 properties, and the victim lending institutions suffered more than $21 million in losses.
On February 25, 2013, SENECA pleaded guilty to one count of conspiracy and one count of wire fraud.
Rivernider and Ponte pleaded guilty to multiple charges stemming from both this scheme and a separate scheme that defrauded investors out of approximately $2.2 million. They are currently serving prison terms of 144 months and 90 months, respectively.
Judge Chatigny ordered SENECA to pay restitution in the amount of $5 million, and the government is seeking an order of full restitution against Rivernider and Ponte.
This matter was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Christopher W. Schmeisser.
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[email protected]Final Two Defendants Sentenced in Identity Theft Tax Refund Fraud Scheme Involving Thousands of Patients’ Personal Identity InformationRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Michael Ali Bryant, Sr., 41, and his wife, Latina Rashawn Bryant, 43, both of Lauderdale Lakes, were sentenced for their participation in a stolen identity tax refund scheme. Michael Bryant was sentenced to 144 months in prison, to be followed by three years of supervised release. Latina Bryant was sentenced to 48 months in prison, to be followed by three years of supervised release.
Both defendants previously pled guilty to one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Michael Bryant also previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3); and Latina Bryant previously pled guilty to one count of using an unauthorized access device, in violation of Title 18, United States Code, Section 1029(a)(2).
Co-defendant Marquis Onigirin Moye, 24, of Pompano Beach, was sentenced on March 28, 2014 to 54 months in prison, to be followed by three years of supervised release. Moye previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
Co-defendants Tiffany Shenae Cooper, 33, of Deerfield Beach, and Angela Dione Rosier, 41, of Coral Springs, were sentenced on February 28, 2014. Cooper was sentenced to 57 months in prison, to be followed by three years of supervised release. Rosier was sentenced to 49 months in prison, to be followed by three years of supervised release. The court also ordered both defendants to pay $129,390.06 in restitution to the IRS and the medical services provider whose database had been breached. Cooper previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Rosier previously pled guilty to one count of conspiracy to commit access device fraud, in violation of Title 18, United States Code, Section 1029(b)(2).
According to court documents, a confidential source (CS) initially approached Michael Bryant and inquired about purchasing narcotics. Bryant told the CS that he did not have any narcotics but that he did have personal identity information (PII) that he was willing to sell to the CS. The CS made a controlled purchase of ten pages (each page containing approximately 20 to 25 names) of PII. Bryant instructed the CS on how to commit tax fraud using the PII, and provided the CS with specific instructions on what information to enter into the web pages of the internet-based tax services to obtain a tax refund. An examination of the PII revealed that it was from a medical services provider.
Rosier was an employee of the medical services provider. Cooper spoke to Rosier to obtain user names and passwords for current employees of the medical services provider. Cooper admitted to illegally logging on to the medical services provider’s computer network and downloading PII for the purpose of committing various types of fraud. She was assisted in her activities by Rosier and co-defendant Moye.
Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
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.
Essex County, N.J., Man Convicted of Being A Felon in Possession of A FirearmRead the Press Release
NEWARK, N.J. - An Essex County, N.J., man with a felony criminal record has been convicted by a federal jury for carrying a loaded semi-automatic pistol, U.S. Attorney Paul J. Fishman announced today.
Victor Lopez, 25, of Newark, was convicted of one count of being a felon in possession of a firearm following a three-day trial before U.S. District Judge Anne E. Thompson in Newark federal court. The jury deliberated for four hours before returning the guilty verdict.
According to documents filed in this case and the evidence at trial:
Officers of the Passaic Police Department responded to a 911 call on Sept. 13, 2012, about a possible burglary in progress at an apartment building in Passaic, N.J., where they encountered Lopez leaving the building
Officers questioned the Lopez, who appeared nervous, and found a gun in his back pocket. The .380 caliber semi-automatic handgun was loaded with seven bullets, including one in the chamber. Four of the bullets were hollow-point rounds.
The charge of being a felon in possession carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for June 23, 2014.
U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of, and officers of the City of Passaic Police Department, under the direction of Deputy Chief Rosario J. Capuana, with the investigation.
The government is represented by Assistant U.S. Attorneys Sara F. Merin and Jonathan W. Romankow of the U.S. Attorney=s Office Criminal Division in Newark.
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Defense counsel: Vincent Sanzone Jr. Esq., Elizabeth, N.J.
Eastern Shore Cocaine Dealer Sentenced to over 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Ranson Chandler, Jr., age 37, of Salisbury, Maryland, today to 123 months in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine, and for possession of a firearm in furtherance of a drug trafficking crime.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Wicomico County Sheriff Michael A. Lewis; Salisbury Police Chief Barbara Duncan; Chief Michael Phillips of the Fruitland Police Department; and Wicomico County State’s Attorney Matthew Maciarello.
According to Chandler’s plea agreement, an investigation by the Drug Enforcement Administration and the Wicomico County Narcotics Task Force established that during the months of October and November 2012, Ranson Chandler, Jr., conspired with Terron Lamont Crump and others to distribute cocaine on the Eastern Shore of Maryland.Information obtained through wiretaps demonstrated that on multiple occasions Chandler conducted or attempted to conduct narcotics transactions with Crump and others.
For example, in an intercepted call on November 27, 2012, Chandler and Crump discussed the price of “the hard knock,” which Chandler was attempting to procure for a third party. Crump told Chandler that the price was “one even,” or $1,000 per ounce, but that he (Crump) would not be able “to get to it” until the following day. At approximately 10 a.m. the next morning, officers observed a drug transaction between Chandler and Crump near the Route 50 Diner in Salisbury. After the transaction took place, the officers attempted to arrest Chandler who, while attempting to flee, crashed his vehicle into a vehicle occupied by three law enforcement officers.
Chandler was arrested. During a search officers recovered approximately 68 grams of cocaine from Chandler’s pants pocket and an additional 197 grams of cocaine from his vehicle, as well as a loaded (and stolen) 9 mm handgun recovered from the center console of Chandler’s vehicle.
The evidence showed that that it was foreseeable to Chandler that he and his co-conspirators distributed, more than 500 grams of cocaine during the conspiracy, which operated from June 2012 through and November 28, 2012.
Terron Lamont Crump, age 35, of Fruitland, Maryland, pleaded guilty to his role in the conspiracy and was scheduled to a year and a day in prison.
United States Attorney Rod J. Rosenstein praised the DEA and Wicomico County Narcotics Task Force comprised of the Maryland State Police, Wicomico County Sheriff’s Office, Salisbury Police Department, Fruitland Police Department and the Wicomico County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Peter J. Martinez, who prosecuted this Organized Crime Drug Enforcement Task Force case.
East Bay Doctor Indicted for Health Care Fraud and Distribution of Controlled SubstancesRead the Press Release
OAKLAND – An eight count indictment was unsealed in federal court this morning charging Dr. Toni Daniels with conspiracy to commit health care fraud, conspiracy to distribute and dispense controlled substances, distribution of controlled substances, and willful failure to file a tax return, announced U.S. Attorney Melinda Haag, FBI Special Agent in Charge David J. Johnson, U.S. Department of Health & Human Services, Office of Inspector General Special Agent in Charge Ivan Negroni, Drug Enforcement Administration Special Agent in Charge Jay Fitzpatrick, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
According to the Indictment, from October 2010 through April 2011, Toni Daniels was a self-employed medical doctor who met with customers at various retail establishments in and around Oakland, including Burger King, Chicken and Waffles, Dick’s Donuts, and Starbucks. During these meetings, Daniels allegedly sold prescriptions for oxycodone, hydrocodone, and other controlled substances, in exchange for cash payments, without first determining whether the purchasers had any medical need for these prescriptions. The Indictment further alleges that Daniels knew that many of her customers used Medicare, Medi-Cal, and other private health insurance plans to cover the cost of the medically unnecessary medications that she prescribed. Between Oct. 15, 2010 and April 15, 2011, Medicare and Medi-Cal paid over $64,000 in false and fraudulent claims for drugs prescribed by Daniels. The Indictment also alleges that Daniels made a gross income of $143,869 during calendar year 2010 and willfully failed to file an income tax return for that year.
Daniels, 62, of Berkeley, was indicted on March 27, 2014. She was arrested last night and made his initial appearance today before the Honorable Kandis A. Westmore, United States Magistrate Court Judge in Oakland. Daniels was remanded into custody and her next court appearance is scheduled for Monday, April 14, at 9:30am before judge Westmore for identification of counsel.
The maximum statutory penalties for conspiring to commit health care fraud, in violation of 18 U.S.C. § 1349, are a prison term of 10 years, a fine of $250,000, and 3 years of supervised release. The maximum statutory penalties for conspiring to distribute controlled substances and for distributing controlled substances, in violation of 21 U.S.C. §§ 846 and 841(a)(1), are a prison term of 20 years, a fine of $1,000,000, and 3 years of supervised release. The maximum statutory penalties for willfully failing to file a tax return, in violation of 26 U.S.C. § 7203, are a prison term of 1 year, a fine of $25,000, and 3 years of supervised release. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Randy Luskey is prosecuting this case with the assistance of Vanessa Vargas. The prosecution resulted from a joint investigation by the FBI, the U.S. Department of Health & Human Services, Office of Inspector General, the Tactical Diversion Squad of the Drug Enforcement Administration, and IRS-Criminal Investigation.
Please note, an indictment contains only allegations against an individual and, as with all defendants, Toni Daniels must be presumed innocent unless and until proven guilty(Daniels indictment )
Department of Justice and Rhode Island Judiciary Enter into Agreement for Provision of Language Assistance Services in R.i. CourtsRead the Press Release
WASHINGTON – The Justice Department has reached an agreement with the Rhode Island Judiciary to ensure that limited English proficient (LEP) individuals will have access to timely and competent language assistance at no charge in all court proceedings, services and programs throughout the state court system.
As part of the agreement, the department approved the Rhode Island Judiciary’s Language Access Plan, which outlines the efforts to be undertaken in order to ensure comprehensive language assistance throughout the court system. The plan requires ongoing translations of forms and signs in court buildings into commonly spoken languages in Rhode Island, such as Spanish, Portuguese, Cambodian and Cape Verdean. The Rhode Island Judiciary also created a Notice of Right to Language Assistance which states that the court will provide a competent interpreter for any limited English proficient party or witness at no charge, and explains the procedure to request an interpreter or a translation of the notice into other languages. The notice must be provided to each defendant in a proceeding and is available in multiple languages. In civil matters, the notice must be incorporated in or attached to the initial pleading to be served upon the defendant. In criminal matters, the notice must be incorporated in or attached to the initial charging documents provided to the defendant, in the forms completed by a bail commissioner or provided by the court at the defendant’s her initial court appearance. In addition, a language services complaint form is available in multiple languages on the court’s website, in the court clerk’s office and at the Office of Court Interpreters.
The plan was mandated in 2012 by Chief Justice Paul A. Suttell through an executive order that was issued after extensive consultation with the department. The Office of Court Interpreters and the Administrative Office of State Courts will review the effectiveness of the plan and consider changes to improve its policies and procedures on an annual basis. The plan includes an important requirement for input from and consultation with stakeholders. The agreement also requires additional steps to be taken by the court in consultation with the department and provides for at least two years of monitoring and technical assistance.
“Chief Justice Suttell, the Rhode Island Judiciary staff and the other Rhode Island stakeholders who contributed to this process are to be commended for their ongoing efforts and shared determination that justice and equality in Rhode Island courts not be restricted to those proficient in English,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division.
The complaint was resolved as part of the initiative by the Federal Coordination and Compliance Section (FCS) of the Civil Rights Division to ensure that state courts comply with the language access requirements of Title VI. To ensure that no LEP individual is denied justice due to a court’s failure to provide language services, the FCS Courts Team, led by Special Legal Counsel Christine Stoneman, provides policy guidance and technical assistance to state court systems and undertakes enforcement actions across the country. Recently, FCS released a Courts Language Access Planning and Assistance Tool and resolved a complaint with the King County Superior Court in Washington.
The Rhode Island matter was handled by FCS Attorney Paul M. Uyehara of the Civil Rights Division with the assistance of Assistant U.S. Attorney Ndidi N. Moses, who was serving as a Detail Attorney to FCS.
For more information about Title VI and the Safe Streets Act, or to obtain copies of the settlement documents, please visit this website.
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Contact: (202) 514-2007
Deborah Williamson Pleads Not Guilty to Embezzling from Grocery EmployerRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Deborah Williamson, 36, a former resident of Wheelock who now lives in Florida, pleaded not guilty yesterday in United States District Court in Burlington to a charge that she embezzled about $70,000 from her ex-employer. U.S. Magistrate Judge John M. Conroy released Williamson on conditions pending trial, which has not been scheduled.
On March 20, 2014, a federal grand jury in Burlington returned a one-count indictment accusing Williamson of mail fraud. According to the indictment, Williamson was employed as the manager of White Market, a grocery store in Lyndonville. Her duties included regularly cashing checks drawn against the company's local bank account to obtain one dollar bills and coins for the cashier's cash registers. The indictment alleges that between 2010 and 2012, Williamson stole nearly $70,000 in cash from the store's safe. She allegedly tried to cover up these thefts by not recording, or underreporting, the amount of cash and coins received from the bank in the store's computerized accounting system.
The United States Attorney emphasizes that the charge in the indictment is merely an accusation and that the defendant is presumed innocent unless and until she is proven guilty.
If convicted, Williamson faces up to 20 years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
This case was investigated by the Lyndonville Police Department and the Federal Bureau of Investigation.
Williamson is represented by Brooks McArthur. The prosecutor is Assistant U.S. Attorney Gregory Waples.Crimanal Complaint Filed Against Kelvin Melton in Kidnapping CaseRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today KELVIN MELTON, a/k/a Dizzy, a/k/a Old Man, was charged with conspiring to kidnap Frank Arthur Janssen of Wake Forest, North Carolina, in violation of Title 18, United States Code, Section 1201(a).
According to the investigation, MELTON and others engaged in a conspiracy to seize, kidnap, and abduct Frank Janssen from Wake Forest, North Carolina and transport him to Atlanta, Georgia. MELTON used a cell phone that he illegally possessed while serving a life sentence in the Polk Correctional Institution in Butner, North Carolina to transmit instructions and threats to Mr. Janssen’s wife and to co-conspirators in the plot. Specifically, MELTON gave instructions on how to kill Mr. Janssen and dispose of his body. If convicted of this charge, MELTON facesa maximum sentence of life imprisonment and a fine of up to $250,000.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The case is being investigated by the FBI Charlotte, FBI Atlanta, the Wake Forest Police Department, the North Carolina State Bureau of Investigation with assistance by the Durham County Sheriff’s Office, Raleigh Police Department, Durham Police Department, North Carolina Alcohol Law Enforcement, Garner Police Department, North Carolina Highway Patrol, RDU Police, City County Bureau of Investigation, the Cobb County Police Department, Alpharetta Police Department, Atlanta Police Department, and the Georgia Bureau of Investigation. The United States Attorney’s Office for the Eastern District of North Carolina is handling the prosecution of these cases.
Convicted Felon Sentenced to Eight Years in Federal Prison for Illegal Possession of A FirearmRead the Press Release
CHARLESTON, W.Va. – A Charleston, West Virginia felon who illegally possessed a firearm was sentenced today to eight years in federal prison, U.S. Attorney Booth Goodwin announced. Curtis Watkins, 25, previously pleaded guilty in October of 2013 to being a felon in possession of a firearm. The sentence was handed down by United States District Court Judge John T. Copenhaver, Jr.
In September of 2012, Watkins illegally possessed a loaded 9-millimeter pistol near Sistah’s Rib Shack on the West Side of Charleston. Watkins was previously convicted in October of 2009 of felony possession with intent to distribute cocaine base, also known as “crack.” Watkins was still on federal supervision for the felony drug conviction when he was found with the gun. Watkins received an additional sentence of 12 months, to be served consecutively to the felon-in-possession sentence, for violating the terms of his supervised release.
The investigation was conducted by the Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Haley Bunn handled the prosecution.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Citizen of Zimbabwe Pleads Guilty to Tax Fraud ConspiracyRead the Press Release
WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Tendayi Mandere, a citizen of Zimbabwe, pled guilty today to violations of 18 USC § 286 (False Claims Conspiracy) and 18 USC § 1028A(a)(1) (Aggravated Identity Theft). Mandere will be sentenced on August 22, 2014 at 10:00 a.m. by the Honorable Richard G. Andrews, United States District Judge for the District of Delaware. For his violation of 18 USC § 286, Mandere faces a maximum sentence of ten years in prison, a fine of $250,000, and 3 years of supervised release. His violation of 18 U.S.C. § 1028A(a)(1) carries a mandatory two year term of imprisonment consecutive to any other term of incarceration, a maximum fine of $250,000, and a maximum of 3 years of supervised release.
According to statements made at the plea hearing and documents filed in court, the defendant participated in a tax fraud conspiracy involving the filing of more than 130 false individual federal income tax returns with the Internal Revenue Service. The defendant obtained the names and social security numbers of real individuals from his co-conspirators, and he used them to electronically file false tax returns via the Internet. The defendant fabricated the wage and withholding information on the returns, which sought refunds of more than $600,000. Most of these fraudulent returns were rejected by the Internal Revenue Service. As part of the defendant’s plea agreement, he agreed that he was responsible to pay restitution to the Internal Revenue Service in the amount of at least $114,000, the amount obtained by the defendant and his co-conspirators during the course of the scheme.
U.S. Attorney Oberly gave the following comments: “I want to specifically extend thanks to the IRS and its agents who work so diligently ferretting and developing evidence allowing my office to prosecute tax cheats. Tax fraud is a huge problem, and all of us who work and pay our taxes are victims. These cases are of particular interest to me and will be prosecuted to the fullest extent possible.”
“Investigating refund fraud and identity theft is a priority for IRS Criminal Investigation," said Akeia Conner, Special Agent in Charge, Philadelphia Field Office. “Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers. Today’s plea should serve as a strong deterrent to those who are considering similar conduct. Law enforcement is serious about investigating these crimes and holding to account those who would defraud the government.”
This case is the result of an investigation conducted by the Internal Revenue Service Criminal Investigation, the United States Postal Inspection Service, and the Social Security Administration, Office of the Inspector General. The case is being prosecuted by Assistant United States Attorneys Lauren Paxton and Jennifer Hall.
Canadian Man Sentenced for Importing 147,000 Ecstasy PillsRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Osborne Young, 47, of Richmond Hill, Ontario, Canada, who was convicted following a jury trial of importing approximately 147,000 pills containing Benzylpiperazine, commonly referred to as Ecstasy, into the United States from Canada, was sentenced to 166 months in prison by U.S. District Judge Richard J. Arcara.
According to Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the prosecution of the case at trial, the defendant drove his tractor trailer and attempted to enter the United States from Canada at the Lewiston Bridge Port of Entry in April 2012. After being pulled over for secondary inspection, Customs and Border Protection Officers discovered approximately 147,000 Ecstasy pills concealed in the refrigeration unit of the tractor trailer. The estimated value of the pills was at least $1,500,000.
The sentencing is the result of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero and U.S. Customs and Border Protection, under the direction of Randy Howe, Director of Field Operations.
Bronx Man Pleads Guilty in White Plains Federal Court to Five Counts of Impersonating A Federal AgentRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Terence S. Opiola, the Special Agent in Charge, U.S. Immigration and Customs Enforcement (ICE) Office of Professional Responsibility (OPR) Northeast, announced today that CARL OSBORNE pled guilty to five counts of impersonating a federal officer in order to detain others. OSBORNE pled guilty in White Plains Federal Court before United States District Judge Cathy Seibel.
Manhattan U.S. Attorney Preet Bharara stated: “The public needs to know that the men and women of law enforcement who are authorized can be trusted to do the vital jobs they carry out for us every day. Carl Osborne’s criminal actions of impersonating federal agents to stop motorists put himself and others in harm’s way and cannot be tolerated.”
Special Agent in Charge Terence S. Opiola of the U.S. Immigration and Customs Enforcement (ICE) Office of Professional Responsibility (OPR) Northeast, stated: “The men and women who have legitimately earned the badges they wear have sworn an oath to protect and defend this nation. Imposters who purport themselves to be special agents and officers of the law undermine the public trust and prey on the vulnerable. This conduct will never be tolerated and all individuals engaged in these acts will be brought to justice.”
According to the criminal Information and related court proceedings:
Between August 2012 and May 2013, on five separate occasions, OSBORNE, who was not an officer of the United States, represented himself to be a federal agent of the United States Department of Homeland Security. In the guise of a federal officer, complete with fake uniform, credentials and phony gun, and driving a vehicle equipped with lights and sirens, OSBORNE pulled over several vehicles in the Bronx and Westchester County.
OSBORNE, 37, of the Bronx, New York, pled guilty to five counts of impersonating a federal agent or officer and detaining individuals. All five counts carry a maximum term of 3 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. The sentencing before Judge Seibel is scheduled for July 18, 2014.
Mr. Bharara praised the outstanding investigative work of the Department of Homeland Security, Immigration and Customs Enforcement Office of Professional Responsibility.
The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorney Daniel P. Filor is in charge of the prosecution.
U.S. v. Carl Osborne Information
Bloomington Man to Serve 10 Years in Prison for Placing Pipe Bomb in DecaturRead the Press Release
Urbana, Ill. – Senior U.S. District Judge Harold A. Baker yesterday sentenced Lloyd B. Lockwood, 47, of Bloomington, Ill., to serve the statutory maximum 10 years in federal prison for placing a pipe bomb in a Decatur, Ill., mailbox in March 2011, as announced by U.S. Attorney Jim Lewis, Central District of Illinois.
On Aug. 14, 2013, a jury convicted Lockwood for placing a pipe bomb in a mailbox at a Decatur home on Mar. 30, 2011. Lockwood was charged with possession of an unregistered destructive device and being a felon in possession of a destructive device.
Lockwood was arrested and charged in the case in September 2012. He was released on bond with special conditions including home detention. In January 2013, U.S. Magistrate Judge David G. Bernthal revoked Lockwood’s bond after Lockwood violated an order of protection filed against him in McLean county court. Lockwood has been detained in the custody of the U.S. Marshals Service since January 2013, and was remanded to the U.S. Marshals Service following yesterday’s hearing.
The case was prosecuted by Assistant U.S. Attorney Jason M. Bohm. The charges were investigated by the FBI, ATF, Decatur Police Department, Macon County Sheriff’s Office, and the University of Illinois Bomb Squad.Bethalto Man Sentenced for Producing Child PronographyRead the Press Release
Will Spend Twenty Five Years in Prison, Then Will Be on Supervision for the Rest of His Life
Follow @SDILNewsA Bethalto man was sentenced in federal district court on April 11, 2014, for Production of Child Pornography, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Walter Lewis Sherman, 47, was sentenced to 25 years in federal prison, to be followed by a lifetime term of supervised release. Sherman pled guilty to the charges on December 4, 2013. He has been in continuous custody since January 24, 2011. There is no parole in the federal system.
“This was an appropriately harsh sentence for a very disturbing crime. My office will always be on the forefront of protecting the most innocent and vulnerable members of our community from such predators.” noted United States Attorney Wigginton.
The violation occurred from approximately December 13, 2008, to July 2010, in Madison County, Illinois, and involved a kindergarten-aged child. Sherman admitted to taking still photographs of the nude child, consisting of extreme close-up images of the child’s genitalia.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the Bethalto Police Department, which has a detective assigned to the Federal Bureau of Investigation’s Metro East Cybercrime Task Force. The case was prosecuted by Assistant United States Attorney Suzanne M. Garrison.
Bergen County, N.J., Doctor Charged with Tax ViolationsRead the Press Release
Allegedly Made Millions of Dollars in Cash Deposits; Transferred Ownership of Home to Family Member; and Failed to File Tax Returns
NEWARK – A Bergen County, N.J., doctor who owns three immediate care facilities in Hudson County, N.J., was arrested today on multiple tax violations, including allegedly making cash deposits of more than $5.8 million into bank accounts he controlled, U.S. Attorney Paul J. Fishman announced.
Medhat El Amir, 59, of Saddle River, N.J., was indicted April 10, 2014, by a federal grand jury on one count of corruptly endeavoring to impede the due administration of the internal revenue code, four counts of tax evasion and three counts of failure to file tax returns. He was arrested at his home this morning by agents of IRS-Criminal Investigation and the U.S. Department of Health and Human Services, Office of Inspector General. He is scheduled to make his initial court appearance this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.
According to the Indictment:
El Amir was a primary care doctor and 60 percent owner of Immediate Care P.C., (Immediate), which provided urgent care health services for its patients at an office in North Bergen, N.J., and two offices in Jersey City.
From Feb. 11, 2005, through Dec. 31, 2010, El Amir allegedly attempted to impede the internal revenue code in a number of ways. He fraudulently transferred his residence in Saddle River to his sister, identified only as “A.E.A.,” for $2.5 million to keep the property out of the reach of the IRS while continuing to live there. He also cashed checks made out to Immediate at a check cashing facility and deposited that unreported income into a number of bank accounts he controlled and used the money for personal expenses. During a four-year period, El Amir received checks totaling $7,261,084 from insurance companies for medical treatments provided by Immediate and caused $5,836,298 in cash to be deposited into 15 bank accounts he maintained and/or controlled.
El Amir also allegedly filed a false 2008 personal income tax return, claiming interest deductions to which he was not entitled, and sent fraudulent correspondence to the IRS that under-reported the amount of income he and his wife received from Immediate in calendar year 2008 and the amount of income deductions to which he was entitled.
Despite earning a significant income through Immediate, El Amir did not file a personal income tax return, Form 1040, for calendar years 2007, 2009 and 2010. While El Amir did file a personal income Form 1040 for calendar year 2008, this return substantially under-reported the income El Amir received from Immediate in calendar year 2008.
The count of corruptly endeavoring to impede the due administration of the internal revenue code carries a maximum potential penalty of three years in prison and a $5,000 fine. The counts of tax evasion each carry a maximum potential penalty of five years in prison and a $250,000 fine and the counts of failure to file a tax return each carry a maximum potential penalty of one year in prison and a $25,000 fine.U.S. Attorney Fishman credited special agents of the IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, and the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Tom O’Donnell, with the investigation leading to today’s indictment.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $535 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
The government is represented by Assistant U.S. Attorney Deborah J. Gannett of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
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El Amir, Medhat Indictment
Alton Man Pleads Guilty to Firearm OffenseRead the Press Release
Follow @SDILNewsOn April 11, 2014, Cameron D. Matlock, a 22-year old Alton, Illinois, man pled guilty in federal district court, in East St. Louis, Illinois, to unlawful possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Matlock is scheduled for sentencing on August 1, 2014, at which time he faces a prison term of not more than 10 years’, a fine of up to $250,000, or both, not more than 3 years of supervised release, and a mandatory special assessment of $100.
Court proceedings revealed that on or about December 22, 2013, an Alton police officer was dispatched to an apartment building in Alton, Illinois, on a report of suspicious behavior by individuals parked in a vehicle towards the back of the building. Upon arrival, the officer observed two men standing outside of the car and two sitting in the backseat. As he came closer to the men, he immediately smelled marijuana and ordered the individuals inside the car to step out. Matlock occupied the driver side rear seat. A search of the car uncovered a small black handgun on the rear driver side floorboard, where Matlock was seated. Matlock admitted to knowing he was not to possess a firearm, as a previously convicted felon.
This case was investigated by the Alton Police Department and is assigned to Special Assistant United States Attorney Neal C. Hong for prosecution.
Thursday 10 April 2014
Warren County, Kentucky, Woman Charged with Arson of the Horse Cave, Kentucky Dollar General StoreRead the Press Release
– Also charged with bankruptcy fraud in a superseding indictment
BOWLING GREEN, Ky. – A Warren County, Kentucky woman was charged by a federal grand jury meeting in Bowling Green this week, with a single count of maliciously damaging and destroying, and attempting to damage and destroy, by means of fire, the Dollar General Store, a building, real, and personal property, located in Horse Cave, Kentucky, announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the indictment, on June 27, 2011, Debra Fowler Kessinger, age 57, attempted to destroy, by means of fire, the Dollar General Store located at 1015 East Main Street in Horse Cave, Kentucky.
Further, the defendant was charged in a separate two-count superseding indictment, this week, by a grand jury in Bowling Green, with bankruptcy fraud. According to the indictment, beginning in April 2008, and continuing through December 2009, Kessinger knowingly devised a scheme to defraud her creditors, the U.S. Trustee, and the Bankruptcy Court, by submitting a fraudulent Chapter 7 Bankruptcy petition, In re Debra K. Fowler, Case No. 08-11653, that concealed and failed to disclose the purchase and possession of property, and the receipt and transfer of life insurance proceeds and retirement benefits of her late husband to the bank accounts of family members and others for her own benefit.
If convicted at trial, Kessinger faces between 5 and up to 20 years in prison for destroying property by means of fire, a $250,000 fine and 3 years of supervised release. Kessinger also faces forfeiture of property, no more than 10 years in prison for bankruptcy fraud, a fine of $500,000 and 3 years of supervised release.
This case is being prosecuted by Assistant United States Attorney Joshua Judd and is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.Victim Advocates, Prosecutors, Law Enforcement and Others Join in Recognition of Crime Victims' Rights Week TodayRead the Press Release
***MEDIA ADVISORY***
Second Annual Walk/Run for Justice 5K Set to kick off at Noon
CHARLESTON, W.Va. – The United States Attorney’s Office for the Southern District of West Virginia, along with victim advocates, prosecutors, law enforcement and others will host an event at Haddad Riverfront Park in Charleston TODAY in recognition of National Crime Victims’ Rights Week Charleston Police Chief Brent Webster and Lt. Keith Vititoe with Kanawha County Sheriff Office are invited speakers. This event is being held in conjunction with the nationwide observance of National Crime Victims’ Rights Week (NCVRW), which began on April 6. The ceremony today is being held in conjunction with the 14th Annual Operation Reach Out. Operation Reach Out is a collaboration of federal, state and local organizations that was formed to raise awareness for NCVRW in West Virginia. This year’s theme for week is “30 Years: Restoring the Balance of Justice.”
WHO:
Chief Brent Webster, Charleston Police Department
Lt. Keith Vititoe, Kanawha County Sheriff’s Office
Staff representing local and statewide advocacy programs
Survivors of crime
Various federal, state and local officialsWHERE:
Haddad Riverfront Park
Kanawha Boulevard Charleston, WVWHEN:
TODAY, April 10, 2014TIME:
The ceremony will begin at 11:30 a.m. and the Walk/Run for Justice 5K will kick off at noon.
Route: Haddad Riverfront Park to the West Virginia State Capitol Complex and back.United States Sues Town of Oyster Bay for Housing DiscriminationRead the Press Release
Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Jocelyn Samuels, Acting Assistant Attorney General for Civil Rights, announced today that the United States has commenced an action against the Town of Oyster Bay on Long Island for violating the Fair Housing Act, 42 U.S.C. § 3601 et seq. In its complaint, the United States alleges that two housing programs to develop below-market rate housing for first time homeowners and senior citizens discriminate against African-Americans because the programs give preference to residents of the Town, which is predominantly white.
“Housing programs designed to help young families and senior citizens purchase homes should be available to people of all races, including African Americans,” stated United States Attorney Lynch. “To the extent residency preferences prevent families and senior citizens from purchasing homes because of race, ethnicity or color, the preferences violate federal law and cannot be tolerated.”
Acting Assistant Attorney General for Civil Rights Samuels, stated, “The Fair Housing Act protects the right of all individuals, regardless of their race, to choose where to live and to have equal access to affordable housing. Today’s lawsuit is a reminder that if municipalities wish to adopt residency preferences such as those imposed by the defendants, they must do so in a way that does not discriminate against people based on race.”
At issue are two Town zoning incentive programs. The “Next Generation” housing program encourages developers to build below-market rate housing for first time homebuyers, generally young families. The “Golden Age” housing program similarly offers incentives for the construction of below-market rate housing for senior citizens. Developers who build housing under the programs receive zoning variances which allow them to build housing more densely than under current zoning restrictions in exchange for lower sale prices for certain units. Both programs require developers to award units constructed under the programs to residents and children of residents of the Town.
According to the United States’ complaint, the residency preferences discriminate against African Americans because very few African Americans reside in the Town and even fewer are eligible for the program as compared to the population of African Americans in surrounding communities, which are significantly more diverse. For example, African Americans constituted less than 1% of families living in the Town of Oyster Bay who were income eligible and otherwise qualified to purchase housing under the Next Generation program. Conversely, whites made up as much as 90% of the pool of eligible families. The eligible population of Nassau County and Suffolk County residents was approximately 10% African American and between 70% and 75% white. The eligible population in the New York City metropolitan area was approximately 20.5% African-American and approximately 48% white.
Also named as defendants are John Venditto, the Oyster Bay Town Supervisor, in his official capacity, and Long Island Housing Partnership (“LIHP”), the not-for-profit organization which is responsible for administering the Next Generation housing program, including implementing the residency preferences for the Town.
The complaint was filed with an accompanying settlement between the United States and LIHP. LIHP has agreed to injunctive relief pursuant to which LIHP will ensure that residency preferences it administers are analyzed so that they do not violate fair housing laws. LIHP will also provide education and training to localities, banks and individuals on Long Island regarding the requirements of fair housing laws.
This case is being handled by Eastern District of New York Assistant U.S. Attorneys Michael J. Goldberger and Thomas A. McFarland, and Trial Attorney Neta Borshansky of the Civil Rights Division Housing and Civil Enforcement Section.
United States Sues Oyster Bay, N.Y., for Housing DiscriminationRead the Press Release
Acting Assistant Attorney General Jocelyn Samuels for the Justice Department’s Civil Rights Division and U.S. Attorney Loretta E. Lynch for the Eastern District of New York announced today that the United States has filed a complaint against the Town of Oyster Bay in Long Island, N.Y., for violating the Fair Housing Act. The complaint alleges that two housing programs designed to develop below-market rate housing for first time homeowners and senior citizens discriminate against African-Americans because the programs give preference to residents of the town, which is predominantly white.
“The Fair Housing Act protects the right of all individuals, regardless of their race, to choose where to live and to have equal access to affordable housing,” said Acting Assistant Attorney General Samuels. “Today’s lawsuit is a reminder that if municipalities wish to adopt residency preferences such as those imposed by the defendants, they must do so in a way that does not discriminate against people based on race.”
“Housing programs designed to help young families and senior citizens purchase homes should be available to people of all races, including African-Americans,” said U.S. Attorney Lynch. “To the extent residency preferences prevent families and senior citizens from purchasing homes because of race, ethnicity or color, the preferences violate federal law and cannot be tolerated.”
At issue are two town zoning incentive programs. The Next Generation housing program encourages developers to build below-market rate housing for first time homebuyers, generally young families. The Golden Age housing program offers similar incentives for the construction of below-market rate housing for senior citizens. Developers who build housing under the programs receive zoning variances which allow them to build housing more densely than current zoning restrictions permit in exchange for lower sale prices for certain units. Both programs require developers to award units constructed under the programs to residents and children of residents of the town.
According to the complaint, the residency preferences discriminate against African-Americans because very few African-Americans reside in the town and even fewer are eligible for the program, as compared to the population of African-Americans in surrounding communities that are significantly more diverse. African-Americans constituted less than one percent of families living in the Town of Oyster Bay who were income eligible and otherwise qualified to purchase housing under the Next Generation program. Conversely, whites made up as much as 90 percent of the pool of eligible families. The eligible population of Nassau County, N.Y., and Suffolk County, N.Y., residents was approximately 10 percent African-American and between 70 percent and 75 percent white and the eligible population in the New York City metropolitan area was approximately 20.5 percent African-American and approximately 48 percent white.
Also named as defendants are Oyster Bay Town Supervisor John Venditto, in his official capacity, and Long Island Housing Partnership (LIHP), the not-for-profit organization which is responsible for administering the Next Generation housing program, which includes implementing the residency preferences for the town.
The complaint was filed with an accompanying settlement between the Department and LIHP. LIHP has agreed to injunctive relief which requires LIHP to ensure that residency preferences it administers are analyzed so that they do not violate fair housing laws. LIHP will also provide education and training to localities, banks and individuals on Long Island regarding the requirements of fair housing laws.
United States Attorney Announces the Federal Indictment of Four Indianapolis Men on Heroin ChargesRead the Press Release
$100,000 worth of heroin destined for the streets of Indianapolis seized.
Hogsett describes U.S. Attorney’s Office continuing efforts to combat a resurgence
of heroin use in Hoosier communities.INDIANAPOLIS – In the second major drug prosecution announcement in the past two days, United States Attorney Joseph H. Hogsett revealed the indictment of four Indianapolis men for their participation in a heroin drug trafficking organization (DTO) that operated primarily in the Brightwood neighborhood on the Northeast side of Indianapolis. Charged with conspiracy to possess with intent to distribute and to distribute heroin were:
Francisco Javier Perez-Garcia, a/k/a, Tio, 36;
Mario Vasquez, a/k/a, Minuto, 26;
Agustin Martinez-Acosta, a/k/a, Chukky 46, and
Jeronimo Lagunes, 27.Perez-Garcia and Vasquez were also charged with conspiracy to possess with intent to distribute and distribute methamphetamine.
“Heroin has become the scourge of our community in the past several years.” said Hogsett. “Few substances are more lethal right now. Heroin has no socio-economic or racial boundary and impacts every corner of our state. The heroin epidemic is blind to what tax bracket you happen to be in. We also are keenly aware that we can’t prosecute our way out of this problem. That is why we are redoubling efforts to bring all of our resources to bear on the root causes of these challenges.”
Search warrant affidavits allege Perez-Garcia operated a DTO at several locations in Brightwood neighborhood dealing large amounts of heroin since early 2013. His two accomplices, Vasquez and Martinez-Acosta worked closely with Perez-Garcia moving the heroin to retail dealer/customers. The affidavit further alleges heroin customers would call the “dispatch phone” at Perez-Garcia’s auto body shop at 2405 North Station Street to order the heroin. The three, along with other members of the DTO would routinely sell heroin from that location and others in the Brightwood area. It is believed the heroin shipments would come from unknown sources in Mexico, California and Houston.
Court documents allege the fourth defendant, Lagunes, was driving a Cadillac Escalade on Interstate 70 near Brownsburg on March 23, 2014, when he was stopped by the Brownsburg Police Department for a traffic violation. When interviewed by officers, his story did not match with a passenger in the vehicle concerning their origination point and destination of travel. Lagunes gave officers consent to search the vehicle and they found over a kilogram of heroin in a Gucci purse in the rear of the vehicle. The government further alleges the heroin was destined to the DTO for distribution on the Eastside of Indianapolis. The value of this heroin if distributed on the streets of Indianapolis would be approximately $100,000.00.
This indictment comes on the heels of a February 2014 trial of three Indianapolis men who were found guilty after a nine–day jury trial where defendants Brandon Lomax,. Demond Glover and Anthony Lomax were convicted of twenty criminal counts including conspiracy to possess and distribution of heroin as well as federal firearms charges. This DTO operated on the Westside of Indianapolis.
“The DEA is firmly committed to helping stem the tide of heroin use in Indiana,” said Dennis Wichern, Assistant Special Agent in Charge of the Drug Enforcement Administration in Indiana. “Our agency has increased heroin seizures by 320% from 2008-2013 and, we fully understand the severity of the epidemic in our communities.”
Heroin is made from morphine which is extracted from poppy plants. Typically the plants are grown in Asia, South America and Mexico and the heroin is then transported to the United States for illicit use. It is ingested by smoking, snorting or injecting directly into the veins of users. Heroin has become popular as opiate users find it more difficult and expensive to find prescription drugs. The devastating consequences of opiate addiction makes the user turn to a quicker and less expensive but often times deadly use of heroin.
To assist in this fight, Hogsett has directed federal prosecutors to work with the Drug Enforcement Administration and the Indiana Attorney General’s Office to aggressively investigate doctors who are operating high-volume “pill mill” practices. If they are found to have abused their prescription writing authority, they face potential state and federal prosecution, as well as the revocation of their medical licenses. He has also directed the Office to work with local authorities to seek federal funding for treatment and prevention efforts.
Other law enforcement partners who worked on the case include: the Indianapolis Metro Drug Task Force, the Indiana State Police, the Internal Revenue Service, the Immigration and Customs Enforcement Criminal Investigations Division and the Ohio State Patrol.
According to Assistant United States Attorney Michelle Brady and Assistant United States Attorney Doris Pryor, who are prosecuting the case for the government, all defendants face a mandatory minimum sentence of 10 years to life, if convicted.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
U.S. Attorney Hosts Human Trafficking and Domestic Sex Trafficking Forum During National Crime Victims’ Rights WeekRead the Press Release
Tampa, Florida — April 6 marks the beginning of National Crime Victim’s Rights Week. This year’s theme—30 Years: Restoring the Balance of Justice—presents a perfect opportunity to salute the Tampa Bay area law enforcement and victims’ services community in their long-term commitment to aid crime victims. As part of this week’s nationwide activities, the U.S. Attorney’s Office for the Middle District of Florida today hosted a forum bringing together federal, state, and local law enforcement experts and victims’ services providers to educate members of the community on human trafficking and domestic sex trafficking. The half-day forum included a victim’s perspective, a law enforcement investigative and prosecutorial overview, an insight into the forensics interview process, and resources for assisting victims of human and sex trafficking. U.S. Attorney A. Lee Bentley, III opened the forum by discussing human and sex trafficking in Florida and highlighted ways in which federal, state, and local public safety agencies, along with the greater community can work together to raise awareness and help combat the issue.
“Human trafficking takes many forms,” said U.S. Attorney A. Lee Bentley, III. “In order to tackle this problem, we must collaborate with our partners on all fronts – from education and prevention, to enforcement, prosecution and the recovery of victims.”
Florida Attorney General Pam Bondi joined U.S. Attorney Bentley in addressing the need for greater collaboration among stakeholders. Since 2013, the Office of the Florida Attorney General has been engaged in a statewide initiative to educate Floridians on the dangers of child exploitation through its “From Instant Message to Instant Nightmare” campaign. The initiative is dedicated to making Florida a zero-tolerance state for human trafficking and elicits the cooperation of parents, businesses, and citizens.
"I am grateful to U.S. Attorney Bentley for his leadership in bringing together everyone who has a role in assisting human trafficking victims,” said Florida Attorney General Pam Bondi. “I am dedicated to eradicating human trafficking in Florida, and by opening the lines of communication among federal, state and local agencies, we can enhance our efforts to end this horrific crime."
According to reports compiled by the Office for Victims of Crime (OVC), U.S. Department of Justice-led federal investigations and human trafficking charges have increased in recent years. Since 2008, the Middle District of Florida has prosecuted several notable cases, resulting in significant prison sentences for offenders involved in sex trafficking:- United States vs. Weylin O. Rodriguez – Life imprisonment
- United States vs. Ian Sean Gordon – Life imprisonment
- United States vs. Marvin Madkins – 50 years
- United States vs. Eric Bell – 30 years
- United States vs. Andrew Fields - 34 years
- United States vs. Tyrone Townsend – 26 years and 8 months
- United States vs. Ruel Brown – 15 years and 8 months
Only 30 years ago, crime victims had virtually no rights and no assistance. Today, our nation has made dramatic progress in securing rights, protections, and services for victims. Every state has enacted victims’ rights laws and all have victim compensation programs. More than 10,000 victim service agencies now help people throughout the country. In 1984, Congress passed the bipartisan Victims of Crime Act (VOCA), which created a national fund to ease victims’ suffering. Now, once-hidden crimes, like domestic and sexual violence, hate and bias crimes, bullying, and sex and labor trafficking, among others, are receiving greater attention and additional resources.
National Crime Victims’ Rights Week will be held April 6–12 in communities throughout the nation. OVC encourages widespread participation in the week’s events and in other victim-related observances throughout the year. For more ideas on how to volunteer to help crime victims, visit the Office for Victims of Crime website, www.ovc.gov.
Two Randolph County Men Sentenced for Methamphetamine ConspiracyRead the Press Release
Follow @SDILNewsOn April 10, 2014, Stephen P. Salzwedel, a/k/a “Steak,” 41, and Tony G. Carle, 27, both of Tilden, Illinois, were sentenced in United States District Court in Benton on a one-count indictment charging conspiracy to manufacture methamphetamine, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced.
Salzwedel and Carle, who had both previously pled guilty to the methamphetamine offense, were sentenced to prison terms of 140 months and 120 months, respectively. They were each fined $200 and placed on 3 years’ supervised release. The offense occurred between 2012 and April 2013 in Perry, Randolph, and Jackson Counties. Evidence at the plea and sentencing hearings established that Salzwedel and Carle were involved with others in the manufacture of methamphetamine. They purchased pseudoephedrine, themselves, and collected pseudoephedrine from others to use in cooking methamphetamine. At sentencing, the district judge found that they were responsible for obtaining over 72 grams of pseudoephedrine. Salzwedel and Carle also received enhanced sentences because there was a minor involved in the offense.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Illinois State Police Methamphetamine Response Team, and Drug Enforcement Administration. The Randolph County State’s Attorney’s Office also assisted in the investigation.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Two Defendants Charged with Defrauding Sony OpenRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the unsealing of an indictment alleging that two former employees of IMG Worldwide, Inc. defrauded the company that runs the Sony Open Tennis tournament on Key Biscayne.Mikel Mims, 37, of Miami Gardens, and Simon Habbershaw, 41, formerly of Miami, were charged with conspiring to commit wire fraud and substantive wire fraud charges. Mims was arrested this morning and is scheduled to have an initial appearance this afternoon in Miami. Simon Habbershaw remains at large.
Each defendant faces a maximum term of 20 years in prison for each count of wire fraud and five years in prison for conspiring to commit wire fraud.
According to the indictment, Mims and Habbershaw were employees of IMG Worldwide, Inc. responsible for coordinating with sponsors and patrons for the delivery of tickets to the Sony Open Tennis tournament on Key Biscayne. The defendants are alleged to have told the printing vendor for IMG Worldwide, Inc., that patrons and customers of IMG Worldwide, Inc. had purchased more tickets than the patrons and customers had actually purchased. As a result, the printing vendor for IMG Worldwide, Inc. printed extra tournament tickets that it delivered to the defendants. The defendants then told customers that purported patron and customers of IMG Worldwide, Inc. had extra tickets for the tennis tournament that needed to be sold, stating that various companies had previously purchased too many tournament tickets. Between 2008 and 2013, Mims and Habbershaw sold these extra tournament tickets to patrons and customers of IMG Worldwide, Inc., but instead used the proceeds of the sale of the additional tournament tickets for their own personal benefit and the benefit of others. The indictment seeks forfeiture in the amount of $407,409.
Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorneys H. Ron Davidson and Alison Lehr.
An indictment is merely an accusation and defendants are presumed innocent until proven guilty.
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.
Three Texas Men Indicted for Possessing More Than 100 Pounds of CocaineRead the Press Release
A federal grand jury in Cleveland returned a one-count indictment charging three Texas men with possession with the intent to distribute approximately 51 kilograms of cocaine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Indicted are Guadalupe J. Zarate, age 42, of Penitas, Texas, Jesus Alberto Flores, age 25, of Pharr, Texas, and Noe Romero Salinas, age 32, of Rio Grande, Texas.
The men were in possession of the drugs in the Northern District of Ohio on April 4, 2014, according to the indictment.
If convicted, a defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Akron Police Department, the Summit County Sheriff’s Office, and the Akron-Summit County High Intensity Drug Trafficking Area (HIDTA) initiative. The case is being prosecuted by Assistant United States Attorney Samuel A. Yannucci.
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.
Three Men Charged with<br /> Allegedly Defrauding the FCC of Approximately $32 MillionRead the Press Release
Three individuals have been indicted for their alleged roles in an approximately $32 million fraud against a Federal Communications Commission (FCC) program designed to provide discounted telephone services to low-income customers.
The charges were announced today by Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office, Inspector General David L. Hunt of the FCC Office of Inspector General (FCC-OIG) and Chief Richard Weber of the Internal Revenue Service – Criminal Investigation (IRS-CI).
Thomas E. Biddix, 44, of Melbourne, Fla., Kevin Brian Cox, 38, of Arlington, Tenn., and Leonard I. Solt, 49, of Land O’Lakes, Fla., were charged by a criminal indictment returned on April 9, 2014, and unsealed today in federal court in Tampa, Fla. The indictment charges the three defendants with one count of conspiracy to commit wire fraud and 15 substantive counts of wire fraud, false claims and money laundering. The court also authorized a seizure warrant seeking the defendants’ ill-gotten gains, including the contents of multiple bank accounts, a yacht and several luxury automobiles.
As alleged in the indictment, the defendants engaged in a scheme to submit false claims with the federal Lifeline Program administered by the Universal Service Administrative Company, a not-for-profit corporation designated and authorized by the FCC. The program aims to provide affordable, nationwide telephone service to all Americans through discounted phone service for qualifying low-income customers.
The indictment alleges that the defendants owned and operated Associated Telecommunications Management Services LLC (ATMS), a holding company that owned and operated multiple subsidiary telephone companies that participated in the Lifeline Program. Biddix, chairman of the board at ATMS, and Cox and Solt allegedly caused the submission of falsely inflated claims to the Lifeline Program between September 2009 and March 2011 that resulted in ATMS fraudulently receiving more than $32 million.
The investigation has been conducted by the FBI, FCC-OIG, and IRS-CI. The United States Marshals Service provided assistance coordinating the seizures of assets.
The case is being prosecuted by Trial Attorneys Andrew H. Warren and Kyle Maurer of the Criminal Division’s Fraud Section, with assistance from Darrin McCullough of the Criminal Division’s Asset Forfeiture and Money Laundering Section, and the United States Attorney’s Offices for the District of Columbia, the Western District of Tennessee and the Middle District of Florida.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.Three Indicted for Shining Lasers at Law Enforcement Aircraft in Fresno and BakersfieldRead the Press Release
FRESNO, Calif. — A federal grand jury in Fresno returned two indictments today charging three men in two separate cases with aiming green laser pointers at law enforcement aircraft, announced U.S. Attorney Benjamin B. Wagner and Monica Miller, Special Agent in Charge of the FBI’s Sacramento Field Office.
The federal statute used to charge the defendants is part of legislation signed into law in 2012 by President Obama that makes it a federal crime to knowingly aim the beam of a laser pointer at an aircraft.
Reports of laser attacks have increased dramatically in recent years as powerful laser devices have become more affordable and widely available to the public. The focused beams of a laser remain powerful at extended viewing distances and can expose pilots and their crew members and passengers to radiation levels above those considered to be flight safe. Brief exposure to even a relatively low-powered laser beam can cause discomfort and temporary visual impairments such as glare, flash blindness and after images. Prolonged exposure to high-powered laser beams can result in permanent eye injury.
Laser Strike on Kern County Sheriff Helicopter
Timothy Earl Wilson, 46, of Bakersfield, was charged with aiming a laser pointer at Air‑1, a Kern County Sheriff’s Office helicopter. According to court records, Air-1 was struck by a powerful green laser multiple times. As a result of the laser strikes, the tactical flight officer experienced a feeling of pressure, throbbing and irritation in his eyes that lasted 30 minutes, and the flight crew was forced to divert attention away from routine patrol.Wilson was charged with the laser offense following a joint investigation conducted by the FBI’s Bakersfield and Long Beach Offices and Kern County Sheriff’s Office with assistance from the Bakersfield Police Department. Assistant U.S. Attorney Karen A. Escobar is prosecuting these cases.
Wilson was also charged by the Kern County District Attorney’s Office with drug-related violations and resisting arrest.
Laser Strike on CHP Aircraft
David Walter Fee, 22, and Andrew Zarate, 20, both of Fresno, were charged with aiming a laser pointer at Air 43, a California Highway Patrol aircraft. According to court records, Air 43 was struck up to 50 times by a powerful green laser pointer. As a result, the pilot suffered temporary blindness and Air 43 was forced to break away from a burglary in progress at a Fresno middle school.The case was investigated by the FBI’s Fresno Office, California Highway Patrol, and Fresno Police Department. Assistant U.S. Attorneys Karen A. Escobar and Michael G. Tierney are prosecuting this case.
Wilson is scheduled for arraignment on the indictment on April 21, 2014. Fee and Zarate are scheduled for arraignment on April 18, 2014. All three men face a maximum prison term of five years and a fine of up to $250,000, if convicted. Any actual sentence would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
Summary of Department of Justice's Findings - Albuquerque Police Department InvestigationRead the Press Release
INTRODUCTION
Following a comprehensive investigation, the Justice Department today announced its findings that the Albuquerque Police Department has engaged in a pattern or practice of excessive force, including deadly force. The pattern and practice is the result of serious systemic deficiencies in policy, training, supervision and accountability. The police department’s failure to ensure that officers respect the Constitution undermines public trust. Constitutional policing increases the public’s trust, ensures safety, and respects the rights of the city’s residents.
DEPARTMENT OF JUSTICE INVESTIGATION
The Findings Letter marks the culmination of the Justice Department’s comprehensive investigation of Albuquerque Police Department, which began on November 27, 2012, and was conducted jointly by the Civil Rights Division and the United States Attorney’s Office for the District of New Mexico. The Justice Department investigation involved an in-depth review of police department documents, interviews with command staff and rank and file police officers. The Department reviewed thousands of pages of documents, including written policies and procedures, internal reports, data, video footage, and investigative files. The investigative team interviewed hundreds of community members and held four community meetings in which diverse members of the Albuquerque provided their accounts of encounters with officers.
FINDINGS
The Justice Department found reasonable cause to believe that the Albuquerque Police Department engages in a pattern or practice of excessive force in violation of the Fourth Amendment of the United States Constitution. The Justice Department specifically found three patterns of excessive force:
- Officers too frequently use deadly force against people who pose a minimal threat in situations where the conduct of the officers heightens the danger and contributes to the need to use force;
- Officers use less lethal force, including Tasers, on people who are passively resisting, non-threatening, observably unable to comply with orders, or pose only a minimal threat to the officers; and
- Encounters between Albuquerque Police officers and persons with mental illness and in crisis too frequently result in a use of force or a higher level of force than necessary.
The Justice Department also found systemic deficiencies of the police department, which contribute to these three patterns. The causes include deficient policies, failed accountability systems, inadequate training, inadequate supervision, ineffective systems of investigation and adjudication, the absence of a culture of community policing, and a lack of sufficient civilian oversight.
REMEDIAL MEASURES
The Justice Department seeks critical remedial measures to address these deficiencies. These measures are in eight areas:- Use of Force Policies
- Interacting with Individuals with Mental Illness and other Disabilities
- Tactical Units
- Training
- Internal Investigations and Civilian Complaints
- Management and Supervision
- Recruitment and Selection
- Community Policing and Oversight
NEXT STEPS
The Justice Department looks forward to working with the city and Albuquerque Police Department and the community to timely resolve these findings. Change will not occur over night, and effective reform of the Albuquerque Police Department requires a durable and sustainable blueprint for reform which will provide the structure, transparency, and accountability necessary to achieve success.Statement of U.S. Attorney David B. BarlowRead the Press Release
“I have just informed Attorney General Holder and Senators Hatch and Lee that I have decided to conclude my service as United States Attorney this summer and return to private practice at Sidley Austin LLP. I am making this announcement in advance of my departure so that President Obama and Senators Hatch and Lee will be able to begin the process of selecting and vetting our next U.S. Attorney.
“U.S. Attorneys are not permanent fixtures in their offices. Serving as U.S. Attorney for the better part of three years has been and continues to be the most humbling honor and privilege of my career. However, for family reasons, my wife and I have decided to make the change this summer.
“I look forward to the remaining time I have to serve with the truly outstanding attorneys and other legal professionals in the U.S. Attorney’s Office, as well as our counterpart defense counsel; judges and court personnel; and federal, state, local, and tribal law enforcement who serve the people of Utah with such distinction.”
Statement by Attorney General Holder on Sentencing Commission’s Vote <br /> to Approve Reductions in Sentencing Guidelines for Nonviolent Drug OffendersRead the Press Release
WASHINGTON—U.S. Attorney General Eric Holder—who testified before the U.S. Sentencing Commission last month in support of a proposal to reduce the federal sentencing guidelines for low-level, nonviolent drug offenders—released the following statement Thursday in response to the Commission voting to formally adopt those changes:
“This action by the U.S. Sentencing Commission represents a milestone in our effort to reshape the criminal justice system’s approach to dealing with drug offenders. This reduction in the federal sentencing guidelines, while modest, sends a strong message about the need to reserve the harshest penalties for the most serious criminals. At a time when prison and detention costs consume nearly a third of the Justice Department’s budget, it simply makes sense to explore alternatives to incarceration and renew our emphasis on treatment and prevention.
“It is now time for Congress to pick up the baton and advance legislation that would take further steps to reduce our overburdened prison system. Proposals like the bipartisan Smarter Sentencing Act would enhance the fairness of our criminal justice system while empowering law enforcement to focus limited resources on the most serious threats to public safety. I look forward to continuing to work with lawmakers on both sides of the aisle on these types of common-sense reforms.”
Statement of Manhattan U.S. Attorney Preet Bharara on the Sentencing of SAC Capital Management Companies for Insider TradingRead the Press Release
“After due consideration, the Court has accepted the guilty plea and imposed sentence on SAC, including the payment of $1.184 billion in financial penalties. Today marks the day of reckoning for a fund that was riddled with criminal conduct. SAC fostered pervasive insider trading and failed, as a company, to question or prevent it. So far, this Office has successfully convicted eight SAC employees of insider trading, and when so much criminal conduct takes place within one institution, it is appropriate to impose criminal liability on the institution itself. Today’s sentence affirms that when institutions flout the law in such a colossal way, they will pay a heavy price.”
Spencer Man Sentenced to 262 Months for Methamphetamine DistributionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that MAURICE ELON EDWARDS, age 28, of Spencer, Oklahoma, was sentenced to 262 months imprisonment, followed by 4 years of supervised release for Possession of Controlled Substances with Intent to Distribute, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B)(viii) and 841(b)(1)(C) and Title 18, United States Code, Section 2.
The charge arose from an investigation by the McAlester Police Department, the Pittsburg County Sheriff’s Department and the Drug Enforcement Administration - Drug Task Force. The defendant was indicted in January, 2013 and was found guilty in September, 2013 by a federal jury along with co-defendant, ANTHONY DEXTER WASHINGTON, II, a.k.a. Tony Washington, age 27, of Oklahoma City, Oklahoma.
The evidence presented at trial proved that on or about January 14, 2012, in McAlester, Oklahoma, the defendants, did aid and abet one another to unlawfully, knowingly and intentionally possess with the intent to distribute five (5) grams or more of actual Methamphetamine, a Schedule II controlled substance, a Schedule II controlled Substance and a mixture or substance containing a detectable amount of Marijuana, a Schedule I controlled substance.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody of the United States Marshal Service pending transportation to the designated federal prison at which he will serve his nonparolable sentence.
Assistant United States Attorney Kyle Waters represented the United States.
Spearfish Man Sentenced for Transporting Stolen PropertyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Spearfish, South Dakota, man convicted of Interstate Transportation of Stolen Property was sentenced on April 7, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Brent Hall, 38, was sentenced to 12 months of imprisonment, 2 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Between January 2009 and September 2012, while working in a management capacity for Husker Properties, LLC, and Rimrock Properties, LLC, Hall stole funds from the firms and took such money from an office in Wyoming to Spearfish. He took the money from Sundance Travel Center, a business owned by Husker Properties. As part of his job responsibilities, Hall was to deposit money in a Spearfish bank. Before Hall would leave the business with the money, another employee would complete deposit slips showing the amount to be deposited. Hall would, in turn, create a new deposit slip for a lesser amount, and then keep the money not deposited for his own use.
Hall also stole money in a variety of other ways. He stole cash from vendors during the Sturgis Motorcycle Rally meant for the business, used company cash cards to pay for personal expenses, and provided complimentary rooms at the Spearfish Quality Inn, a hotel he was managing, to certain individuals when he was unauthorized to do so. In total, Brent Hall stole over $153,000 from the two companies.
The investigation was conducted by the Federal Bureau of Investigation. The sentencing was handled by Supervisory Assistant U.S. Attorney Gregg S. Peterman. Hall was immediately placed into the custody of the U.S. Marshals Service.
SoCal Doctor Charged with Illegally Writing Prescriptions for Addictive Narcotics and Laundering Proceeds of His Drug DealingRead the Press Release
LOS ANGELES – A Los Angeles-area doctor surrendered this morning to federal authorities after being indicted on federal drug trafficking charges for allegedly illegally distributing drugs, including powerful and addictive painkillers.
Dr. Andrew Sun, 78, of La Mirada, surrendered this morning at the United States Courthouse, where he is expected to be arraigned this afternoon.
Sun, who operated medical clinics in San Gabriel and East Los Angeles, is named in an indictment that was returned by a federal grand jury on March 18. The indictment specifically charges Sun with 24 counts of illegally prescribing controlled substances including hydrocodone (a powerful narcotic painkiller commonly known by the brand names Vicodin and Norco), alprazolam (commonly known by the brand name Xanax), carisoprodol (best known as Soma), diazepam (the generic form of the brand name product Valium), and promethazine with codeine (a Schedule V cough syrup). The indictment also charges Sun with four counts of laundering the proceeds generated by his illegal prescriptions.
Sun issued nearly 5,000 prescriptions for controlled substances in a one-year period that ended in July 2010, according to an affidavit in support of a search warrant executed at Sun’s residence and two medical offices on July 11, 2012. During the investigation detailed in the affidavit, Sun prescribed drugs, including hydrocodone, to undercover agents on 13 separate occasions, each time in exchange for $150 cash.
The affidavit quotes Sun telling one undercover agent: “So if you want to insist on getting such a strong medicine, I’ll give it to you. I’m just a doctor, I’m not God, okay, so I cannot say no to something that you want to do… I only advise you not to, but, if you want to do it I can’t do, I can’t say no.”
The affidavit details another instance in which Sun encouraged an undercover agent to provide a fraudulent justification for the “maximum” allowable number of extra-strength Vicodin pills.
Based on review of the undercover recordings and other materials from the investigation, Dr. Rick Chavez, an expert in pain treatment, concluded that Sun’s interactions with each of the undercover agents “was insufficient, inappropriate, and inadequate,” according to the affidavit. Chavez concluded: “there is not only strong, but irrefutable evidence for inappropriate prescribing of controlled medications” by Sun.
An investigation by IRS - Criminal Investigation showed that Sun and his wife controlled 44 bank accounts, and that Sun deposited more than $1.1 million in cash into his accounts between 2008 and July 2012. The indictment charges Sun with laundering cash on four specific occasions when he deposited thousands of dollars in cash on dates that undercover agents met with him and received prescriptions.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
If convicted of the 28 counts in the indictment, Sun would face a statutory maximum sentence of 248 years in federal prison.
The investigation into Sun was conducted by the Drug Enforcement Administration, IRS - Criminal Investigation, the California Medical Board, the California Department of Health Care Services and the Monterey Park Police Department.
Release No. 14-042
Six Arrested in Drug Raid Involving Correctional FacilitiesRead the Press Release
Montgomery, Alabama - A drug distribution operation that involved inmates and a correction officer has been dismantled and six people have been arrested due to the joint efforts of the Drug Enforcement Administration and the Alabama Department of Corrections, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama, and Joyce White Vance, U.S. Attorney for the Northern District of Alabama. This investigation included multiple State of Alabama correctional facilities and would not have been possible without the extraordinary assistance of Commissioner Kim Thomas and his staff at the Department of Corrections.
A federal grand jury in Montgomery, Alabama returned an indictment against Stephanie Auban, 41 years old, of Cullman; Phillip Burgin, 23 years old, of Montgomery; William Thomas Crane II, 36 years old, of Crossville; and Alberto Trejo who is presently incarcerated in Bullock County Correctional Facility in Union Springs, Alabama for conspiracy to distribute methamphetamine. Phillip Burgin was a correction officer at Kilby State Prison in Montgomery.
A federal grand jury in Birmingham, Alabama returned an indictment against Miguel Calles-Gutierrez, 42 years old, of Birmingham, and Gumaro Calles, 24 years old, presently in Staton Correctional Facility in Elmore, Alabama for distribution of methamphetamine. Along with the arrests, law enforcement searched the two prisoner’s personal areas, one in Bullock County Correctional Facility and one in Staton Correctional Facility.
“Drug dealers spread poison for profit,” stated U.S. Attorney Beck. “They addict children for profit, they destroy families for profit, and they infect communities for profit. There are countless victims of drug dealing. We need to remember and attempt to help these victims and need to continue to do all that is possible under the law to punish these poison pushers. I want to thank Kim Thomas and his staff for their unwavering commitment to stopping these criminals from dealing drugs from inside our state prisons.”
“Some of these defendants worked from prison to distribute a harmful and illegal substance in the Northern District of Alabama," stated U.S. Attorney Vance. "Methamphetamine dealers need to know they will be tracked — wherever they are — and prosecuted. The state Department of Corrections and the DEA are to be commended for working collaboratively to bring about these arrests."
“Drug trafficking and dealing are dangerous to society, and that type of behavior will not be tolerated by the Department of Corrections,” Corrections Commissioner Kim Thomas said. “We have joined forces with our federal law enforcement community to make our streets and our prisons safer. The illegal activity of one correction officer is not a representation of the hard work of the almost 3,000 correctional staff working in our facilities. We will not allow these illegal acts to tarnish the professional reputation of the hard working correctional professionals at the Department of Corrections. It is our responsibility to act, and these arrests are proof of our action with our federal partners to stop illegal activity in prison and protect the public safety. The Department of Corrections will continue to partner with law enforcement across this state to aggressively target criminal activity and stop the network of drug distribution activity from inside our prisons and that harm our communities.”
“Due to the combined efforts of the Drug Enforcement Administration (DEA) and the Alabama Department of Corrections (DOC), a large-scale drug trafficking organization was identified, investigated and ultimately dismantled,” stated Clay Morris, Assistant Special Agent in Charge of the Drug Enforcement Administration. “Without the invaluable assistance from the Alabama Department of Corrections, the success of this investigation would not have been possible. The partnership between DEA and AL DOC was critical in keeping substantial amounts of methamphetamine from being distributed in our communities. I can’t thank Commissioner Thomas and Alabama DOC enough for their assistance.”
An indictment is merely an accusation, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted Ausban, Burgin, Crane, Miller and Trejo face a sentence of at least 10 years in prison and a maximum prison term of life. Miguel Calles-Gutierrez and Gumaro Calles face a sentence of no more than 20 years in prison. In the federal system, there is no parole.
This case was investigated by the Drug Enforcement Administration and the State of Alabama Department of Corrections. This case is being prosecuted by Curtis Ivy, Assistant U.S. Attorney in the Middle District of Alabama and an Assistant U.S. Attorney in the Northern District of Alabama.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Six Arrested in Drug Raid Involving Correctional FacilitiesRead the Press Release
MONTGOMERY / BIRMINGHAM, Alabama – A drug distribution operation that involved inmates and a correction officer has been dismantled and six people have been arrested due to the joint efforts of the Drug Enforcement Administration and the Alabama Department of Corrections, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama, and Joyce White Vance, U.S. Attorney for the Northern District of Alabama. This investigation included multiple State of Alabama correctional facilities and would not have been possible without the extraordinary assistance of Commissioner Kim Thomas and his staff at the Department of Corrections.
A federal grand jury in Montgomery, Alabama returned an indictment against Stephanie Auban, 41 years old, of Cullman; Phillip Burgin, 23 years old, of Montgomery; William Thomas Crane II, 36 years old, of Crossville; and Alberto Trejo who is presently incarcerated in Bullock County Correctional Facility in Union Springs, Alabama for conspiracy to distribute methamphetamine. Phillip Burgin was a correction officer at Kilby State Prison in Montgomery.
A federal grand jury in Birmingham, Alabama returned an indictment against Miguel Calles-Gutierrez, 42 years old, of Birmingham, and Gumaro Calles, 24 years old, presently in Staton Correctional Facility in Elmore, Alabama for distribution of methamphetamine. Along with the arrests, law enforcement searched the two prisoner's personal areas, one in Bullock County Correctional Facility and one in Staton Correctional Facility.
"Drug dealers spread poison for profit," stated U.S. Attorney Beck. "They addict children for profit, they destroy families for profit, and they infect communities for profit. There are countless victims of drug dealing. We need to remember and attempt to help these victims and need to continue to do all that is possible under the law to punish these poison pushers. I want to thank Kim Thomas and his staff for their unwavering commitment to stopping these criminals from dealing drugs from inside our state prisons."
"Some of these defendants worked from prison to distribute a harmful and illegal substance in the Northern District of Alabama," stated U.S. Attorney Vance. "Methamphetamine dealers need to know they will be tracked — wherever they are — and prosecuted. The state Department of Corrections and the DEA are to be commended for working collaboratively to bring about these arrests."
"Drug trafficking and dealing are dangerous to society, and that type of behavior will not be tolerated by the Department of Corrections," Corrections Commissioner Kim Thomas said. "We have joined forces with our federal law enforcement community to make our streets and our prisons safer. The illegal activity of one correction officer is not a representation of the hard work of the almost 3,000 correctional staff working in our facilities. We will not allow these illegal acts to tarnish the professional reputation of the hard working correctional professionals at the Department of Corrections. It is our responsibility to act, and these arrests are proof of our action with our federal partners to stop illegal activity in prison and protect the public safety. The Department of Corrections will continue to partner with law enforcement across this state to aggressively target criminal activity and stop the network of drug distribution activity from inside our prisons and that harm our communities."
"Due to the combined efforts of the Drug Enforcement Administration (DEA) and the Alabama Department of Corrections (DOC), a large-scale drug trafficking organization was identified, investigated and ultimately dismantled," stated Clay Morris, Assistant Special Agent in Charge of the Drug Enforcement Administration. "Without the invaluable assistance from the Alabama Department of Corrections, the success of this investigation would not have been possible. The partnership between DEA and AL DOC was critical in keeping substantial amounts of methamphetamine from being distributed in our communities. I can't thank Commissioner Thomas and Alabama DOC enough for their assistance."An indictment is merely an accusation, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted Ausban, Burgin, Crane, Miller and Trejo face a sentence of at least 10 years in prison and a maximum prison term of life. Patricia Calles, Miguel Calles-Gutierrez and Gumaro Calles face a sentence of no more than 20 years in prison. In the federal system, there is no parole.
This case was investigated by the Drug Enforcement Administration and the State of Alabama Department of Corrections. This case is being prosecuted by Curtis Ivy, Assistant U.S. Attorney in the Middle District of Alabama and an Assistant U.S. Attorney in the Northern District of Alabama.Sentencing for April 3 - 9, 2014Read the Press Release
Saul Castaneda, 51, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on April 9, 2014, for conspiracy to possess with intent to distribute, and to distribute 50 grams or more of methamphetamine. Castaneda was arrested in Cheyenne, Wyoming. He received 120 months imprisonment, to be followed by five years of supervised release and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case was investigated by the U.S. Drug Enforcement Administration.
Jose Mejilla-Pena, aka Bryan Najera-Barraza, 29, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on April 8, 2014, for possession with intent to distribute, and to distribute less than 50 grams of methamphetamine, and for possession of a firearm in furtherance of a drug trafficking crime. Mejilla-Pena was arrested in Albany County, Wyoming. He received 80 months imprisonment, to be followed by three years of supervised release, and is subject to deportation upon release from custody. This case was investigated by the Wyoming Highway Patrol, the Wyoming Division of Criminal Investigation and the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Jamie Sanchez-Marquez, 40, of Rock Springs, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 3, 2014, on one count of conspiracy to possess with intent to distribute, and to distribute 50 grams or more of methamphetamine; two counts of distribution of methamphetamine and aiding and abetting; and one count of use of a telephone facility to facilitate a felony drug offense. Sanchez-Marquez was arrested in Rock Springs. He received 57 months imprisonment, to be followed by five years of supervised release and was ordered to pay a $500.00 fine and a $400.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Seth Michael Pearce, 24, of Gillette, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 3, 2014, for conspiracy to possess stolen firearms. Pearce was
arrested in Gillette, Wyoming. He received 27 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.SAC Capital Management Companies Sentenced in Manhattan Federal Court for Insider TradingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that S.A.C. CAPITAL ADVISORS, L.P. (“SAC Capital LP”), S.A.C. CAPITAL ADVISORS, LLC (“SAC Capital LLC”), CR INTRINSIC INVESTORS, LLC (“CR Intrinsic”), and SIGMA CAPITAL MANAGEMENT, LLC (“Sigma Capital”) (collectively, the “SAC Companies”), which are responsible for the management of a group of affiliated hedge funds, (collectively the “SAC Hedge Fund” or “SAC”), were sentenced today by U.S. District Judge Laura T. Swain. The District Court accepted the guilty plea entered by the defendants on November 8, 2013, and approved the parties’ Plea Agreement. The Court imposed a sentence that included a criminal fine of $900 million (which is not tax-deductible), a statutory maximum five-year term of probation for each of the SAC Companies, the condition that the SAC Hedge Fund terminate its investment advisory business, effectively closing the hedge fund to outside investors, and a requirement that the defendants, and any successor entities, employ the compliance procedures necessary to identify and prevent insider trading, and that the defendants retain an independent compliance consultant, who will review, revise, and report to the Government on those compliance procedures. Together with the settlement of the civil forfeiture action, which was approved by U.S. District Judge Richard J. Sullivan on November 6, 2013, the SAC Hedge Fund is required to pay an additional $1.184 billion financial penalty on top of the $616 million the SAC Companies have already agreed to pay to the U.S. Securities & Exchange Commission (“SEC”).
Manhattan U.S. Attorney Preet Bharara said: “After due consideration, the Court has accepted the guilty plea and imposed sentence on SAC, including the payment of $1.184 billion in financial penalties. Today marks the day of reckoning for a fund that was riddled with criminal conduct. SAC fostered pervasive insider trading and failed, as a company, to question or prevent it. So far, this Office has successfully convicted eight SAC employees of insider trading, and when so much criminal conduct takes place within one institution, it is appropriate to impose criminal liability on the institution itself. Today’s sentence affirms that when institutions flout the law in such a colossal way, they will pay a heavy price.”
As alleged in the Indictment, the forfeiture Complaint filed against the funds, other court documents filed in the case, and statements made during the guilty plea and sentencing proceedings:
From 1999 through at least 2010, numerous employees of the SAC Companies obtained and traded on material, non-public information that they were not permitted to have (“Inside Information”), or recommended trades based on such information to SAC Portfolio Managers (“SAC PMs”) or the SAC Owner. Specifically, the Indictment charges the SAC Companies with insider trading offenses committed by numerous employees, occurring over the span of more than a decade, and involving the securities of more than 20 publicly-traded companies across multiple sectors of the economy. As charged in the Indictment, the systematic insider trading engaged in by SAC PMs and Research Analysts was the predictable and foreseeable result of multiple institutional failures. The failures alleged included hiring practices heavily focused on recruiting employees with networks of public company insiders, the failure of SAC management to question employees about trades that appeared to be based on Inside Information, and ineffective compliance measures that failed to prevent or detect such trading, particularly prior to late 2009.
At the guilty plea hearing on November 8, 2013, the SAC Companies pled guilty to all five Counts in the Indictment, and admitted that the six employees who had previously pled guilty to insider trading engaged in that criminal conduct while acting within the scope of their employment of the SAC Companies and for the benefit of the firm. The Plea Agreement does not provide immunity from prosecution for any individual and does not restrict the Government from charging any individual for any criminal offense and seeking the maximum term of imprisonment applicable to any such violation of criminal law. In fact, since the time of the guilty plea and prior to today’s sentencing, two additional SAC portfolio managers, Michael Steinberg and Matthew Martoma, were convicted of insider trading after separate jury trials.
Indeed, the total criminal fine imposed by the Court exceeded a Sentencing Guidelines range that was, in turn, based on all of the illicit profits gained and losses avoided resulting from all of the insider trading alleged in the Indictment. Neither the criminal fine nor the forfeiture amount to be paid in the civil forfeiture case can be claimed as a tax deduction or credit by the SAC Companies or their owner.
The Court further imposed a series of non-financial penalties on the SAC Companies that include the following:
- The SAC Companies will no longer accept third party investor funds and will terminate operations as an investment adviser.
- The SAC Companies were each sentenced to a five-year term of probation – the maximum allowed by law – with a provision to end probation earlier if the SAC Companies cease operating entirely. The terms of probation require, among other conditions, that the SAC Companies employ appropriate compliance measures to identify and prevent insider trading. Additionally, the insider trading compliance measures of the SAC Companies and any related entities trading securities will be reviewed by an independent compliance expert who will direct the SAC Companies to correct identified deficiencies, and who will report to the United States Attorney’s Office as to the progress of the corrective measures undertaken.
Mr. Bharara praised the efforts of the Federal Bureau of Investigation and also thanked the SEC for its assistance in the investigation.
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 Antonia M. Apps, Arlo Devlin-Brown, and John T. Zach are in charge of the prosecution, and Assistant U.S. Attorneys Sharon Cohen Levin, Chief of the Asset Forfeiture Unit, Micah Smith, and Christine Magdo are responsible for the forfeiture aspects of the case.
U.S. v. SAC Capital Advisors, LP et al. Stipulation and Order of Settlement
U.S. v. SAC Capital Advisors LLP, et al. Cover Ltr, Plea Agt, and StipRobertsdale Meth Cook Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. – Tony Rodger Foley, 33, of Robertsdale, was sentenced in federal court on Wednesday, April 9, to a seven-year prison term for his involvement in conspiracy to manufacture and attempt to manufacture methamphetamine. Foley pled guilty to the two charges, conspiracy to manufacture methamphetamine and an attempt to manufacture methamphetamine, in 2012. Court documents reflect that Foley was arrested after attempting to flee from Mobile County sheriff’s deputies in a black Hummer when they attempted to arrest him in connection with a sting operation involving the controlled delivery of pseudoephedrine. After making bond on those state charges, he continued to purchase pseudoephedrine and was arrested within months at a trailer near Robertsdale, caught in the act of manufacturing methamphetamine. The federal drug charges were brought against him shortly thereafter, and he has been in custody since that time.
The judge ordered that the sentences in each case would run concurrently. He also ordered that Foley undergo drug treatment while in custody, and as a condition of his supervised release term of five years, which will follow his incarceration. The judge did not impose a fine but ordered that Foley pay $200 in special assessments
The case was investigated by the Baldwin County Drug Task Force, the Baldwin County Sheriff’s Office, the Mobile County Sheriff’s Office and the Loxley Police Department. It was prosecuted in the United States Attorney=s Office by Assistant United States Attorney Gloria Bedwell.
Remarks as Prepared for Delivery ByRead the Press Release
Acting U.S. Attorney Damon P. Martinez, District of New Mexico, on the Albuquerque Police Department Investigation
Good morning and thank you for being here. I am pleased to welcome Acting Assistant Attorney General Jocelyn Samuels and members of her staff from the Justice Department’s Civil Rights Division to Albuquerque. It has been a privilege for the U.S. Attorney’s Office for the District of New Mexico to work closely with Jocelyn and her staff over the past 16 months on the Justice Department’s civil investigation into whether the Albuquerque Police Department engages in a pattern or practice of violating the Fourth Amendment by using excessive force. We are here today to announce our findings and conclusions, and the next steps for the Department of Justice, the City, and the people of Albuquerque.
Jocelyn and Jonathan Smith, who is the Chief of the Special Litigation Section of the Civil Rights Division, will address the scope and conclusions of the investigation, and discuss our next steps. Before they do, I would like to make a few important points.
Today marks a critical milestone in our community and for the Albuquerque Police Department. Understanding how we arrived here is very important, but how we move forward is even more important. The coming days and months will determine what the next generation of policing will look like in our City. We are at a unique time and place where the City can decisively determine the culture of the Albuquerque Police Department and its relationship with the community it serves. We are in a place where the City and the community can collaborate and develop a productive working partnership to rebuild and to maintain the foundation of trust that is essential for effective, productive law enforcement. Although there are difficult and systemic issues to resolve, we embrace these challenges and are very optimistic for the future of the Albuquerque Police Department.
Our optimism is based on three important factors:
First, although our investigation has found serious constitutional problems that Acting Assistant Attorney General Samuels will discuss in detail, it also has confirmed that the great majority of APD officers are honorable law enforcement professionals who risk their physical safety and well-being for the public good on a daily basis. Their work is not easy and their duties often are performed under difficult and dangerous circumstances. For most officers, policing is not a job; it is an honor and a profession. It is about promoting public safety and service to their neighbors and the community. The dangers they face on the job are real, and they must have the tools needed to protect the public and themselves. We are optimistic for the future of the Albuquerque Police Department because so many of its officers are committed to making our neighborhoods safer places to live, to work and to play, and do so with integrity and in compliance with the Constitution and the law.
Second, we also are optimistic because the City and the Albuquerque Police Department gave the investigative team access to every document and person requested during the investigation. Additionally, the Mayor and other City officials have expressed a strong desire to address the deficiencies uncovered; and have assured us that they are committed to working with us to remedy the problems. We have every reason to believe that we will move forward in a way that honors both the men and women working in APD and the residents of this great City they serve.
Finally, we are optimistic because the people of Albuquerque want and rightfully demand the highest standards for their police force. The residents of Albuquerque also want safe neighborhoods and want the police to succeed. Clearly, the residents of Albuquerque support the changes needed to fix the problems present in the Albuquerque Police Department. During our investigation we have heard from many people, coming from all walks of life in our city. They came forward because they care about this City, and because they care about the police department that serves them. The people of Albuquerque are committed to being part of the critical dialogue necessary to ensure that reforms are in place to promote constitutional policing while giving the men and women of the Albuquerque Police Department the support they need to fight crime effectively.
These three critical factors give us great optimism that the City, the Albuquerque Police Department, and the community will come together to ensure that the deficiencies identified by the investigation are corrected.
I now turn the podium over to Acting Assistant Attorney General Jocelyn Samuels who will discuss the results of the investigation.
# # #Registered Sex Offender Pleads Guilty to Trafficking A MinorRead the Press Release
Caused a 15 Year Old Runaway to Engage in Prostitution
Baltimore, Maryland – Thomas Sean Tinsley, age 29, of Glen Burnie, Maryland pleaded guilty today to sex trafficking of a minor. Tinsley is a registered sex offender, having previously been convicted of having sex with a minor female.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to Tinsley’s plea agreement, in May 2013, Tinsley met a 15 year old runaway near the Galleria Mall in downtown Baltimore, and invited her to live with him at his residence - a motel on Caton Avenue in Baltimore. Soon thereafter, Tinsley began having sex with the victim.
Tinsley encouraged the victim to engage in prostitution to pay for the motel room and to provide him with additional money. The victim routinely met with prostitution clients and communicated with Tinsley regarding her client interactions, including the location of the commercial sex and the identity of her patrons. Tinsley monitored the victim’s commercial sex activities and gave her instructions regarding her client interactions, including telling her to collect cash before the commercial sex. Sometimes, Tinsley negotiated directly with prospective clients for commercial sex on behalf of the victim.
When they searched the motel room, federal agents found Tinsley’s sex offender registry paperwork from a prior conviction, which listed the motel address as his ‘place of residence.”
Tinsley and the government have agreed that if the Court accepts the plea agreement Tinsley will be sentenced to between 121 and 210 months in prison followed by a lifetime of supervised release. U.S. District Judge Ellen L. Hollander has scheduled sentencing for July 2, 2014 at 11:00 a.m.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Mark W. Crooks, who is prosecuting the case.
Queens, N.Y., Tax Preparer Indicted for Filing False Tax ReturnsRead the Press Release
The Justice Department and Internal Revenue Service (IRS) announced that Celamour Berus, of Springfield Gardens, N.Y., was arrested for multiple tax crimes today following his indictment on April 3, 2014. The indictment was unsealed today in the District Court for the Eastern District of New York following his arrest.
According to the indictment, Berus owned and operated a tax preparation business called Celamour Enterprises, which was located at his home in Springfield Gardens, N.Y. The indictment alleges that Berus prepared false individual income tax returns for clients of Celamour Enterprises for tax years 2007 through 2011. Berus included false itemized deductions for charitable contributions, unreimbursed employee expenses and other expenses on the returns he prepared. The indictment charges that Berus aided and assisted in the preparation of 38 false tax returns for his clients.
The indictment also alleges that Berus falsified his own federal income tax returns for tax years 2007 through 2010 by failing to report all of the gross receipts generated by his tax preparation business. Berus also included false itemized deductions for unreimbursed employee expenses on his tax returns.
A trial date has not been scheduled. An indictment merely alleges that a crime has been committed and a defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Berus faces a statutory maximum sentence of three years in prison for each count and a fine of up to $250,000.
The case was investigated by special agents of IRS – Criminal Investigation. Trial Attorneys Jeffrey Bender and Kevin Lombardi of the Justice Department’s Tax Division are prosecuting the case.
Pair Charged with Robbing Grocery StoreRead the Press Release
Dylan Capone, 21, and Michael Young, 24, both of Philadelphia, charged today by Indictment with committing the January 28, 2014, armed robbery of the Chuen Hing Grocery, located at 1414 South 6th Street, Philadelphia, Pennsylvania, announced United States Attorney Zane David Memeger. Capone and Young were also charged with brandishing a firearm in connection with that robbery.
If convicted Capone and Young face a mandatory minimum term of seven years in prison with a maximum possible sentence of life.
The case was investigated by the Federal Bureau of Investigation and Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Paul G. Shapiro.
Click here to view the indictment
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Owner of Tax Return Preparation Franchise and Health Provider Business Pleads Guilty to Tax Fraud, Healthcare Fraud and Money LaunderingRead the Press Release
Claude Arthur Verbal II, formerly of Raleigh, N.C., and now of Miami, pleaded guilty to tax fraud, healthcare fraud and money laundering in two separate cases in federal court, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney Ripley Rand for the Middle District of North Carolina. Verbal pleaded guilty to one count of conspiracy to defraud the United States, one count of aiding and assisting the preparation of false tax returns, one count of healthcare fraud and one count of money laundering. The plea was accepted late yesterday by U.S. District Judge Catherine Eagles in Greensboro, N.C., and sentencing was set for Aug. 11, 2014. Verbal faces up to 28 years in federal prison and $850,000 in fines, and has agreed to pay restitution to the Internal Revenue Service (IRS) and Medicaid.
The Tax Case
According to court documents, Verbal was the owner of Nothing But Taxes (NBT), a tax return preparation franchise with 10 branches throughout the state of North Carolina that operated from 2005 to at least 2012. Verbal personally prepared false tax returns for clients of NBT and taught and encouraged his employees to do so as well. Verbal and NBT employees frequently offered clients a dramatically larger tax refund if the clients agreed to make a cash payment to the person who prepared their return. These cash payments were over and above the flat return preparation fee that NBT charged every client, whether or not their return was falsified.
According to court documents, from 2005 to 2007, Verbal personally prepared dozens of false tax returns on a computer at NBT’s location on Fayetteville Street in Durham, N.C. One such return was a 2006 tax return for an NBT client that falsely reported the client had a Schedule C business and a dependent, which Verbal knowingly prepared and electronically filed with the IRS.
According to court documents, the most common types of falsifications at NBT were false dependents, false Schedule C businesses, false tip income, false Earned Income Tax Credits (EITC) and false education credits. Verbal himself falsified returns using these items and taught his managers and line employees how to do so as well. Verbal and many of his employees facilitated the purchase and sale of false dependents at NBT by purchasing the names, dates of birth and social security numbers of individuals from the community for use as false dependents on other NBT clients’ tax returns.
According to court documents, in November 2010, one of Verbal’s employees informed a U.S. Probation Officer of the fraudulent practices at NBT’s location on Fayetteville Street. The probation officer informed Verbal of this fraud and he falsely denied knowledge of it. Afterward, Verbal took steps to keep the profitable Fayetteville Street location open and to continue operating as usual, but to also further distance himself from the fraudulent practices. In order to do this, Verbal transferred the electronic filing privileges for that NBT branch to a nominee. Verbal and others jointly persuaded, a relative of Verbal who allowed Verbal to use their name to apply for new electronic filing privileges for the Fayetteville Street location. In exchange, Verbal and his wife paid the relative $10,000, and the relative had no role in operating NBT, no professional tax experience and no knowledge of the fraud that was occurring at NBT.
Later, in 2012, the IRS shut down electronic filing privileges at all 10 NBT branches due to persistent fraud. Verbal re-applied for electronic filing privileges twice for all NBT locations, first in the name of the relative and, when that attempt failed, in the name of another relative who had no knowledge of NBT’s business.
Related Tax Cases
According to court documents, in a series of related cases in the Middle District of North Carolina, multiple other individuals employed by NBT – including branch managers, return preparers and client recruiters – have also pleaded guilty to charges involving federal tax fraud, fraud, and identity theft crimes. In particular, each of the individuals listed below pled guilty to one count each of wire fraud, aggravated identity theft and aiding and assisting the preparation of false tax returns:
Defendant Role Sentence
Leslie Brewster Branch manager 70 months
Nikki Brewster Branch manager 61 months
Tiffany Rogers Return preparer 48 months
Dawn Williams Return preparer 36 months and one day
Saichelle McNeill Return preparer 27 months
Ronald Hairston Client recruiter 24 months
Jennifer Bullock Return preparer 15 months
According to court documents, in a related case, Rakecia Brame pleaded guilty to wire fraud, aggravated identity theft and aiding and assisting the preparation of false tax returns. Brame, a former social worker with the Alamance County Department Social Services (DSS), admitted to selling the identities of DSS clients to NBT return preparers for use as false dependents on tax returns.
According to court documents, in another related case, Tasha Smith, a former NBT employee who later left and opened her own fraudulent tax return preparation businesses, pleaded guilty on April 8, 2014, to conspiracy to defraud the United States.
“The tax fraud committed by Claude Verbal and the other Nothing But Taxes defendants is an affront to honest, hard-working taxpayers,” said Assistant Attorney General Kathryn Keneally of the department’s Tax Division. “The Justice Department will prosecute and seek just punishment against those who prepare fraudulent tax returns.”
“Today, Mr. Verbal admitted to owning a tax preparation business that blatantly ignored the tax laws by preparing false tax returns and misusing his electronic filing privileges,” said Chief of IRS-Criminal Investigation Richard Weber. “Dishonest return preparers use a variety of methods to cheat the government, including falsifying information on the tax returns to generate larger refunds for their clients. Criminal Investigation will continue to ensure that all tax practitioners, tax preparers and others who practice in the tax law profession adhere to professional standards and follow the law.”
The Healthcare Fraud Case
According to court documents, Verbal was the owner and operator of Infinite Wellness Concepts (IWC), a Medicaid behavioral health provider with locations in Burlington, Durham and Greensboro, N.C. IWC was contracted to provide group therapy, intensive in-home services, enhanced mental health and substance abuse services. Court documents state that Verbal acquired at least one million dollars in fraudulently obtained funds from the Medicaid program. The fraudulent activities included:
· Changing diagnosis codes so that codes with higher reimbursement rates could be billed;
· Falsely inflating the number of clients treated during group therapy;
· Billing for services not rendered and submitting false treatment notes in support of the services not rendered using forged signatures from counselors and therapists,
· Unqualified personnel conducting therapy; and
· Creating fraudulent clinical assessments and creating clinical assessments prepared and signed by unqualified preparers.
According to court documents, Verbal used the proceeds of the tax and healthcare fraud schemes to make extensive purchases of luxury cars, homes and jewelry. The money laundering charge to which Verbal pleaded guilty relates to the purchase of a $52,000 diamond ring with the proceeds of healthcare fraud.
In the course of the health care fraud investigation, law enforcement authorities seized $765, 917 from bank accounts controlled by Verbal, a 2011 Toyota Camry and four pieces of diamond jewelry, including a 7-carat diamond ring. The United States initiated a civil forfeiture action alleging the properties constituted proceeds traceable to the health care fraud and on Sept. 19, 2013, Judge Eagles entered an order forfeiting the property to the government.
“Mr. Verbal’s fraudulent schemes victimized taxpayers in multiple ways, damaging Medicaid, the patients who rely on it, and the taxpayers who support it,” said U.S. Attorney Rand. “Stopping these fraudulent activities is a priority of the Department of Justice, and we are committed both to bringing the fraudsters to justice and returning the ill-gotten gains to the victimized agencies.”
“The improper billing of the N.C. state community mental health program by unscrupulous providers will not be tolerated,” said Derrick Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General in Atlanta. “This costs taxpayers millions of dollars each year and drains the Medicaid program of much needed resources.”
The tax case against Verbal was investigated by agents of IRS - Criminal Investigation, and was prosecuted by Assistant U.S. Attorney Frank Chut and Trial Attorney Jonathan Marx of the Tax Division. The healthcare fraud case against Verbal was investigated by agents of the Department of Health and Human Services, Office of Inspector General, the North Carolina State Bureau of Investigations, the North Carolina Department of Justice’s Medicaid Investigations Division and IRS – Criminal Investigation, and was prosecuted by Assistant U.S. Attorney Robert Hamilton.
Owner of Tax Return Preparation Franchise and Health Provider Business Pleads Guilty to Tax Fraud, Healthcare Fraud and Money LaunderingRead the Press Release
WASHINGTON – Claude Arthur Verbal II, formerly of Raleigh, N.C., and now of Miami, pleaded guilty to tax fraud, healthcare fraud and money laundering in two separate cases in federal court, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney Ripley Rand for the Middle District of North Carolina. Verbal pleaded guilty to one count of conspiracy to defraud the United States, one count of aiding and assisting the preparation of false tax returns, one count of healthcare fraud and one count of money laundering. The plea was accepted late yesterday by U.S. District Judge Catherine Eagles in Greensboro, N.C., and sentencing was set for Aug. 11, 2014. Verbal faces up to 28 years in federal prison and $850,000 in fines, and has agreed to pay restitution to the Internal Revenue Service (IRS) and Medicaid.
The Tax Case
According to court documents, Verbal was the owner of Nothing But Taxes (NBT), a tax return preparation franchise with 10 branches throughout the state of North Carolina that operated from 2005 to at least 2012. Verbal personally prepared false tax returns for clients of NBT and taught and encouraged his employees to do so as well. Verbal and NBT employees frequently offered clients a dramatically larger tax refund if the clients agreed to make a cash payment to the person who prepared their return. These cash payments were over and above the flat return preparation fee that NBT charged every client, whether or not their return was falsified.
According to court documents, from 2005 to 2007, Verbal personally prepared dozens of false tax returns on a computer at NBT’s location on Fayetteville Street in Durham, N.C. One such return was a 2006 tax return for an NBT client that falsely reported the client had a Schedule C business and a dependent, which Verbal knowingly prepared and electronically filed with the IRS.
According to court documents, the most common types of falsifications at NBT were false dependents, false Schedule C businesses, false tip income, false Earned Income Tax Credits (EITC) and false education credits. Verbal himself falsified returns using these items and taught his managers and line employees how to do so as well. Verbal and many of his employees facilitated the purchase and sale of false dependents at NBT by purchasing the names, dates of birth and social security numbers of individuals from the community for use as false dependents on other NBT clients’ tax returns.
According to court documents, in November 2010, one of Verbal’s employees informed a U.S. Probation Officer of the fraudulent practices at NBT’s location on Fayetteville Street. The probation officer informed Verbal of this fraud and he falsely denied knowledge of it. Afterward, Verbal took steps to keep the profitable Fayetteville Street location open and to continue operating as usual, but to also further distance himself from the fraudulent practices. In order to do this, Verbal transferred the electronic filing privileges for that NBT branch to a nominee. Verbal and others jointly persuaded, a relative of Verbal who allowed Verbal to use their name to apply for new electronic filing privileges for the Fayetteville Street location. In exchange, Verbal and his wife paid the relative $10,000, and the relative had no role in operating NBT, no professional tax experience and no knowledge of the fraud that was occurring at NBT.
Later, in 2012, the IRS shut down electronic filing privileges at all 10 NBT branches due to persistent fraud. Verbal re-applied for electronic filing privileges twice for all NBT locations, first in the name of the relative and, when that attempt failed, in the name of another relative who had no knowledge of NBT’s business.
Related Tax Cases
According to court documents, in a series of related cases in the Middle District of North Carolina, multiple other individuals employed by NBT – including branch managers, return preparers and client recruiters – have also pleaded guilty to charges involving federal tax fraud, fraud, and identity theft crimes. In particular, each of the individuals listed below pled guilty to one count each of wire fraud, aggravated identity theft and aiding and assisting the preparation of false tax returns:
Leslie Brewster, Branch manager, 70 months
Nikki Brewster, Branch manager, 61 months
Tiffany Rogers, Return preparer, 48 months
Dawn Williams, Return preparer, 36 months and one day
Saichelle McNeill, Return preparer, 27 months
Ronald Hairston, Client recruiter, 24 months
Jennifer Bullock, Return preparer, 15 months
According to court documents, in a related case, Rakecia Brame pleaded guilty to wire fraud, aggravated identity theft and aiding and assisting the preparation of false tax returns. Brame, a former social worker with the Alamance County Department Social Services (DSS), admitted to selling the identities of DSS clients to NBT return preparers for use as false dependents on tax returns.
According to court documents, in another related case, Tasha Smith, a former NBT employee who later left and opened her own fraudulent tax return preparation businesses, pleaded guilty on April 8, 2014, to conspiracy to defraud the United States.
“The tax fraud committed by Claude Verbal and the other Nothing But Taxes defendants is an affront to honest, hard-working taxpayers,” said Assistant Attorney General Kathryn Keneally of the department’s Tax Division. “The Justice Department will prosecute and seek just punishment against those who prepare fraudulent tax returns.”
“Today, Mr. Verbal admitted to owning a tax preparation business that blatantly ignored the tax laws by preparing false tax returns and misusing his electronic filing privileges,” said Chief of IRS-Criminal Investigation Richard Weber. “Dishonest return preparers use a variety of methods to cheat the government, including falsifying information on the tax returns to generate larger refunds for their clients. Criminal Investigation will continue to ensure that all tax practitioners, tax preparers and others who practice in the tax law profession adhere to professional standards and follow the law.”
The Healthcare Fraud Case
According to court documents, Verbal was the owner and operator of Infinite Wellness Concepts (IWC), a Medicaid behavioral health provider with locations in Burlington, Durham and Greensboro, N.C. IWC was contracted to provide group therapy, intensive in-home services, enhanced mental health and substance abuse services. Court documents state that Verbal acquired at least one million dollars in fraudulently obtained funds from the Medicaid program. The fraudulent activities included:
• Changing diagnosis codes so that codes with higher reimbursement rates could be billed;
• Falsely inflating the number of clients treated during group therapy;
• Billing for services not rendered and submitting false treatment notes in support of the services not rendered using forged signatures from counselors and therapists,
• Unqualified personnel conducting therapy; and
• Creating fraudulent clinical assessments and creating clinical assessments prepared and signed by unqualified preparers.
According to court documents, Verbal used the proceeds of the tax and healthcare fraud schemes to make extensive purchases of luxury cars, homes and jewelry. The money laundering charge to which Verbal pleaded guilty relates to the purchase of a $52,000 diamond ring with the proceeds of healthcare fraud.
In the course of the health care fraud investigation, law enforcement authorities seized $765, 917 from bank accounts controlled by Verbal, a 2011 Toyota Camry and four pieces of diamond jewelry, including a 7-carat diamond ring. The United States initiated a civil forfeiture action alleging the properties constituted proceeds traceable to the health care fraud and on Sept. 19, 2013, Judge Eagles entered an order forfeiting the property to the government.
“Mr. Verbal’s fraudulent schemes victimized taxpayers in multiple ways, damaging Medicaid, the patients who rely on it, and the taxpayers who support it,” said U.S. Attorney Rand. “Stopping these fraudulent activities is a priority of the Department of Justice, and we are committed both to bringing the fraudsters to justice and returning the ill-gotten gains to the victimized agencies.”
“The improper billing of the N.C. state community mental health program by unscrupulous providers will not be tolerated,” said Derrick Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General in Atlanta. “This costs taxpayers millions of dollars each year and drains the Medicaid program of much needed resources.”
The tax case against Verbal was investigated by agents of IRS - Criminal Investigation, and was prosecuted by Assistant U.S. Attorney Frank Chut and Trial Attorney Jonathan Marx of the Tax Division. The healthcare fraud case against Verbal was investigated by agents of the Department of Health and Human Services, Office of Inspector General, the North Carolina State Bureau of Investigations, the North Carolina Department of Justice’s Medicaid Investigations Division and IRS – Criminal Investigation, and was prosecuted by Assistant U.S. Attorney Robert Hamilton.