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Wednesday 9 April 2014
Justice Department Honors Crime Victims, Advocates, and Teams for Exceptional Perseverance and InnovationRead the Press Release
Deputy Attorney General James M. Cole will preside over the National Crime Victims’ Rights Service Awards ceremony 2 p.m. Wed., April 9, honoring ten individuals and programs for exceptional perseverance and innovation in advancing crime victims’ rights. The Department’s Office for Victims of Crime leads communities across the country in observing National Crime Victims’ Rights Week every year and hosts the award ceremony to honor outstanding work on behalf of crime victims.
“Through their courage and critical contributions to assist and empower victims, these individuals and organizations have given hope to countless Americans victimized by crime--even under the most difficult circumstances,” said Attorney General Eric Holder. “I am proud to recognize these extraordinary advocates by celebrating their achievements and assure them that the Department of Justice is more determined than ever to help ensure their continued success.”
“We are humbled and proud to recognize these extraordinary individuals, teams, and organizations for their outstanding service” said Deputy Attorney General Cole. “These compassionate honorees have become beacons of hope for so many others who have endured shock and deep sadness in the face of too many incidents involving violence and loss.”
President Reagan proclaimed the first Victims’ Rights Week in 1981, calling for renewed emphasis and sensitivity to the rights of victims. National Crime Victims’ Rights Week is observed this year from April 6–12, and the theme is “30 Years: Restoring the Balance of Justice.”
The following is a list of the award recipients nominated by their colleagues and selected by the Attorney General:
Allied Professional Award: Recognizing an individual or organization outside the victim assistance field for services or contributions to the victims’ field. Recipient: Forensic Nurse Examiner Team, Christiana Care Health System, Newark, Del.
Crime Victims Financial Restoration Award: Recognizing individuals, programs, organizations or teams that developed innovative ways of funding services for crime victims or instituted innovative approaches for securing financial restoration for crime victims. Recipient: Mi Yung C. Park, trial attorney, Child Exploitation and Obscenity Section, Criminal Division, U.S. Department of Justice, Washington, D.C.
Federal Service Award: Recognizing the extraordinary efforts of federal agency personnel who lead initiatives or reforms and make extraordinary contributions that impact victims of federal, tribal, and military crimes, or more broadly promote victims’ rights and services for underserved victims nationally and internationally. Recipients : FBI Victim Assistance Program and U.S. Attorney’s Office for the District of Massachusetts; and the U.S. Air Force Special Victims’ Counsel Program.
National Crime Victim Service Award: Honoring extraordinary efforts in direct service to crime victims. Recipients: DC Safe, Washington, D.C.; and Hazel Heckers, victim advocate, Denver, Colo.
Crime Victims’ Rights Award: Honoring those whose efforts to advance or enforce crime victims’ rights have benefited crime victims at the state, tribal, or national level. Recipient: Jamie Balson, prosecutor, Maricopa County District Attorney’s Office, Peoria, Ariz.
Ronald Wilson Reagan Public Policy Award: Honoring leadership, innovation and vision that lead to noteworthy changes in public policy that benefit crime victims. Recipient: Pat Tuthill, advocate, Tallahassee, Fla.
Professional Innovation in Victim Service Award: Recognizing a program, organization or individual who has helped to expand the reach of victims’ rights and services. Recipient : The Rapid DNA Service Team, Richmond, Calif.
Special Courage Award: Recognizing extraordinary bravery in the aftermath of a crime or courageous act on behalf of a victim or potential victim. Recipient: Paul Traub, Burnsville, Minn.
Descriptive narratives and videos of the contributions of recipients are available at the Office for Victims of Crime’s Gallery .
Justice Department Highlights Tax Division's Enforcement ResultsRead the Press Release
With the annual tax filing deadline approaching on April 15, today the Justice Department announced highlights of its work during the past year to enforce the nation’s tax laws. The Tax Division has worked with the Internal Revenue Service (IRS) to carry out their combined tax enforcement missions in critical areas, including prosecuting tax fraud and evasion, halting the spread of abusive tax shelters, tracking down tax cheats who use offshore accounts and combating stolen identity refund fraud. Previously, the division announced that it has shut down more than 60 fraudulent tax preparers over the past 12 months.
The division’s primary purpose is to enforce the nation’s tax laws fully, fairly and consistently through both criminal and civil litigation. Some of the division’s accomplishments from the past fiscal year (FY 2013) include:
· Favorable outcomes in approximately 95 percent of all civil and criminal cases litigated by the division;
· The division authorized 749 grand jury investigations and 1,495 prosecutions of individual defendants;
· Division prosecutors obtained 125 indictments and 114 convictions (not including the additional criminal tax prosecutions handled exclusively by U.S. Attorneys’ Offices nationwide);
· The division collected over $235 million through affirmative civil litigation and retained over $975 million through defensive tax refund and other litigation and;
· Taking into account the tax dollars collected and refunds not paid as a result of the division’s successful litigation efforts, over the past five fiscal years (FY 2009-2013), the division’s attorneys have returned an average of $14 for each dollar invested to the U.S. Treasury.
“The taxes paid by honest taxpayers pay for important government functions, from support for our military to the operation of our national parks,” said Assistant Attorney General Kathryn Keneally. “Those who would cheat their neighbors and fellow citizens should know that we are committed to enforcing the tax laws. The department will continue to use all available law enforcement tools to recover tax revenue and to punish tax offenders.”
“The IRS and Justice Department continue to make important progress on issues ranging from identity theft and offshore evasion to fraudulent return preparers and abusive tax shelters,” said IRS Commissioner John Koskinen. “As the April 15 deadline approaches, taxpayers should remember that we are working year-round to ensure that everyone plays by the rules and follows the law. The hard work of the Justice Department and the IRS can be seen in the long list of criminal and civil tax enforcement actions across the country during the past year.”
Prosecuting Tax Offenses
The division has supervisory authority over all criminal conduct involving federal tax laws. The division has always maintained the investigation and prosecution of tax crimes as a central focus, including tax evasion, failure to file returns, submission of false tax returns and other conduct designed to violate federal tax laws. Division attorneys are also particularly adept at prosecuting tax defiers, individuals who purposefully refuse to comply with tax laws and use frivolous arguments to support their positions.
Some of the division’s criminal tax prosecution highlights from the past 12 months include:
· April 2014 – Tommy Edward Clack, a paving contractor, was sentenced by a federal court in Winston-Salem, N.C., to serve 66 months in prison for filing a false 2007 tax return and making a false statement to a federally insured bank to obtain a mortgage. From 2004 through 2007, Clack underreported income that he received from his paving businesses, which caused a tax loss of more than $1.3 million.
· March 2014 – Matthew Bender, a tax return preparer from Detroit, was convicted for aiding and assisting in the preparation of false income tax returns for his clients, as well as failing to report the income he earned as a return preparer. Bender prepared over 3,000 tax returns between 2006 and 2011 and earned over $500,000 in tax preparation fees, which he failed to report to the IRS. Bender placed false deductions on customers’ returns, which caused their tax refunds to be inflated.
· December 2013 – John Hoang, an attorney and certified public accountant from Woodbridge, Va., was sentenced to serve four years in prison for aiding and assisting in the preparation of false tax returns for his clients, resulting in a tax loss of over $1.5 million.
· July 2013 – Timothy Turner, the self-proclaimed president of the so-called sovereign citizen group Republic for the united States of America (RuSA), was sentenced to serve 18 years in prison for conspiracy to defraud the United States, attempting to pay taxes with fictitious financial instruments, attempting to obstruct and impede the IRS, failing to file a 2009 federal income tax return and falsely testifying under oath.
· July 2013 – Richard Whatley, a former owner of an employee leasing company, was sentenced to serve 51 months in prison for failing to account for and pay over employment taxes.
- May 2013 – Joseph Rizzuti of Stuart, Fla., was sentenced to serve 80 months in prison for conspiracy to commit wire fraud and obstructing the IRS. Rizzuti, an accountant, interfered with the IRS’ ability to collect taxes owed by two clients and admitted to engaging in a conspiracy to commit wire fraud.
Stopping the Spread of Tax Shelters
The division also plays a critical role in the government s efforts to combat abusive tax shelters. According to U.S. Treasury estimates, abusive tax shelters for large corporations and high-income individuals cost the government billions of dollars annually. In recent years, the division’s civil litigators at both the trial and appellate levels have won important victories in cases involving tax shelters with names such as STARS, Son of BOSS, FOCus, BLIPS, OPIS, DAD and SILO/LILO.
Some of the division’s successes over the past 12 months include:
· December 2013 – In United States v. Woods, the Supreme Court unanimously held that a 40 percent gross valuation misstatement penalty applies when a taxpayer engages in an abusive tax shelter scheme that lacks economic substance.
· December 2013 – The division successfully defended a favorable Tax Court decision in Blum v. Commissioner, a case involving the Offshore Portfolio Investment Strategy (OPIS) tax shelter. The 10th Circuit Court of Appeals held that the taxpayer was not entitled to a $45 million loss generated by the OPIS transaction because the transaction lacked economic substance, and that valuation misstatement penalties should be imposed. As the court explained, the “intricacies of this offshore financial transaction and the fog of plausible deniability surrounding it cannot make up for the clarity of the big picture: this was a transaction designed to produce nothing more than tax advantages.”
· September 2013 – After a month-long trial, the division prevailed in the Court of Federal Claims against BB&T Corporation, which had claimed more than $660 million in tax benefits based on a sham transaction known as Structured Trust Advantaged Repackaged Securities (STARS). In Salem Financial Inc. v. United States, the court ruled that BB&T was not entitled to the tax benefits and imposed $112 million in penalties. The court concluded that the conduct of BB&T, the designers and marketers of the STARS transaction and the law firm that provided tax advice supporting the transaction was “nothing short of reprehensible” and that the considerable effort put into the transaction was a “waste of human potential.” This case is currently on appeal.
· August 2013 – The division successfully defended a favorable district court decision in WFC Holdings Corp. v. United States, a case involving a contingent-liability tax shelter. The Eighth Circuit Court of Appeals found that the literal language of the Internal Revenue Code supported the company’s tax treatment of the transaction, but nonetheless disallowed the company’s asserted tax loss and resulting $82 million tax refund because the transaction lacked economic substance and a subjective business purpose.
Investigating Offshore Evasion
The division continues to play a leading role in investigations and prosecutions involving the use of foreign tax havens and remains committed to investigating offshore tax evasion around the globe. The division’s current offshore program began in 2008, with the investigation of UBS, which resulted in the 2009 UBS deferred prosecution agreement . In January 2013, the U.S. Attorney's Office in the Southern District of New York secured the guilty plea of Wegelin Bank, the oldest private bank in Switzerland and the first foreign bank to plead guilty to felony tax charges. In July 2013, Liechtensteinische Landesbank AG, a bank based in Vaduz, Liechtenstein, entered into a non-prosecution agreement and agreed to pay more than $23.8 million stemming from its offshore banking activities and turned over more than 200 account files of U.S. taxpayers who held undeclared accounts at the bank.
Since 2009, the department has publicly charged 74 account holders and 38 bankers and advisors with violations arising from offshore banking activities. So far, 61 account holders have pleaded guilty, seven were convicted at trial and five await trial. Six bankers and financial advisors have pleaded guilty and several are fugitives. In October 2013, Raoul Weil, formerly the third highest banking official at UBS and the subject of a 2008 indictment for his role in assisting U.S. clients to evade taxes, was arrested in Italy, waived extradition and is now awaiting trial.
Additional highlights from the division and the U.S. Attorneys’ Offices include:
· March 2014 – Former Swiss banker Andreas Bachmann pleaded guilty to engaging in a wide-ranging conspiracy to aid and assist U.S. customers in evading their taxes by concealing assets and income in secret Swiss bank accounts.
· March 2014 – Joshua Vandyk, a U.S. citizen, and Eric St-Cyr and Patrick Poulin, Canadian citizens, were indicted for money laundering and conspiracy to launder monetary instruments relating to assisting U.S. citizens in hiding assets from the U.S. government. According to the indictment, the Caribbean-based defendants assisted undercover law enforcement agents, posing as U.S. clients, in laundering criminal proceeds through an offshore entity in order to conceal thetrue owner.
· March 2014 – Victor Lipukhin, a Russian citizen and former lawful permanent U.S. resident, was indicted for attempting to interfere with the administration of the internal revenue laws and for filing false tax returns relating to several secret Swiss bank accounts. According to the indictment, Lipukhin maintained accounts worth more than $10 million at UBS AG in the name of sham entities based in the Bahamas, failed to report his ownership of the accounts and used fictitious mortgages when purchasing real estate in the U.S. to further conceal ownership of the accounts.
· October 2013 – Ashvin Desai, the owner of a medical device company in San Jose, Calif., was convicted of filing false tax returns, aiding and assisting in the preparation of false tax returns, and failing to file Reports of Foreign Bank and Financial Accounts (FBARs) in connection with accounts held at The Hongkong and Shanghai Banking Corporation Ltd. (HSBC) in India that generated over $1.1 million in interest income.
· October 2013 – Patricia Lynn Hough, a physician and owner of two Caribbean-based medical schools, was convicted of conspiring to defraud the U.S. and filing false tax returns. Hough concealed millions of dollars in assets and income in offshore bank accounts held at UBS and other foreign banks.
· April 2013 – Arizona businessmen Stephen M. Kerr and Michael Quiel were convicted after a jury trial of filing false individual tax returns, and Kerr was additionally convicted of failing to file an FBAR related to secret Swiss bank accounts. Co-defendant Christopher Rusch, a San Diego attorney who assisted Kerr and Quiel, pleaded guilty to federal tax charges in February 2013. All three men were sentenced to serve 10 months in federal prison.
The department is also successfully using a variety of law enforcement tools to gather information for use in future enforcement efforts. In two separate actions in 2013, the U.S. District Court in the Southern District of New York authorized the IRS to issue “John Doe” summonses to several U.S. banks that hold correspondent bank accounts for Wegelin & Co. , Zurcher Kantonalbank and The Bank of N.T. Butterfield & Son Limited through which the foreign banks move money into and out of the United States. The division secured a similar order from the U.S. District Court in the Northern District of California relating to a U.S. account used by Canadian Imperial Bank of Commerce FirstCarribean International Bank . Together, the summonses will allow the U.S. government to determine the identity of U.S. taxpayers who may hold accounts in the Bahamas, Barbados, Cayman Islands, Guernsey, Hong Kong, Malta, Switzerland and the United Kingdom.
The department also announced a program on Aug. 29, 2013, that encouraged Swiss banks to cooperate in the department’s ongoing investigations of the use of foreign bank accounts to commit tax evasion. The Program for Non-Prosecution Agreements or Non-Target Letters for Swiss Banks (the Program) allows Swiss banks not currently under investigation to come forward to provide cooperation and pay steep penalties in return for the possibility of a non-prosecution agreement or deferred prosecution agreement. The Program expressly excluded banks that were previously authorized for investigation in connection with their Swiss banking activity, 14 at the time of the announcement, and expressly excludes all individuals. The department has received over 100 letters of intent to participate in the Program from Swiss entities. Every Swiss bank that cooperates under the Program represents an opportunity to obtain valuable law enforcement information.
Combating Identity Theft
The division, in conjunction with the IRS and U.S. Attorneys nationwide, has made the investigation and prosecution of individuals who engage in stolen identity refund fraud (SIRF) a high priority. The division is targeting individuals involved in all stages of these schemes, including those who illegally obtain Social Security numbers and other personal identifying information, those who file the false returns with the IRS, those who facilitate cashing the checks or otherwise obtaining the refunds and those who mastermind or promote these scams.
Some highlights of the division’s success in this area include:
· October 2013 – Vernon Harrison, a corrupt U.S. Postal Service mail carrier, was sentenced to serve nine years and three months in federal prison. According to court documents, tax refunds were placed on debit cards and mailed to addresses on Harrison’s postal route in Montgomery, Ala., which he then stole from the mail and provided to a co-conspirator in exchange for cash.
· September 2013 – Lea’Tice Phillips, an employee of an Alabama state agency, was sentenced to serve seven years and 10 months in federal prison. As alleged in court documents, Phillips had access to databases that contained personal identifying information and conspired with others to file false tax returns using identities stolen from the database.
· July 2013 – Angela Myers, who operated a tax preparation business located in Baton Rouge, La., was sentenced to serve 11 years in federal prison. According to court documents, Myers electronically filed false claims for refunds using the names and social security numbers of identity theft victims, many of whom were nursing home patients.
Return Preparer Fraud
Corrupt accountants and fraudulent tax return preparers present a serious law enforcement concern. Some accountants and return preparers dupe unwitting clients into filing fraudulent returns, while others serve as willing enablers by providing a veneer of legitimacy for clients predisposed to cheat. The division’s civil injunction program, now more than 10 years old, continues to be an effective way to shut down fraudulent return preparers and illegal tax-scheme promoters – especially during filing season – thereby reducing the harm to the public while potential criminal investigations are ongoing. In February, the division announced recent successes in its civil injunction program including more than 60 injunctions entered against both large-scale tax return preparation franchises and smaller, independent return preparers and promoters across the country.
Some of the division’s successes include:
· November 2013 – the division concluded civil actions resulting in permanent injunctions against ITS Financial LLC, the parent company of the Instant Tax Service franchise located in Dayton, Ohio. Earlier in the year, the division obtained injunctions against Instant Tax franchises in Kansas City, Kan. , Los Angeles and Indianapolis . Instant Tax Service claimed to be the fourth-largest tax-preparation firm in the nation.
· September 2013 – the division obtained injunctions that permanently barred the owners, Markey Granberry and Derrick Robinson, as well as Eumora Reese, a former manager, of Mo' Money Taxes, tax-preparation chain based in Memphis, Tenn., that at one time operated as many as 300 offices in 18 states, from preparing tax returns for others and owning or operating a tax return preparation business. Earlier, in March 2013, a federal district court in Tennessee permanently shut down a Nashville, Tenn., licensee of Mo' Money Taxes LLC and MoneyCo USA LLC.
· Numerous smaller tax return preparation businesses and individual preparers around the country who were engaging in fraudulent practices were also subjects of injunctions, including tax return preparers in Indiana , Maryland , Missouri , Texas , Georgia , South Carolina , Florida and California .
· October 2013 – a federal court permanently barred Tobias Elsass and his companies from preparing federal tax returns, promoting the availability of theft loss deductions or engaging in any other tax-related business. The court found that Elsass and Fraud Recovery Group promoted a nationwide scheme that falsely informed customers that they were entitled to claim large theft loss tax deductions, and then prepared the tax returns that improperly claimed such deductions.
Hiding income offshore, identity theft, and return preparer fraud are all part of the IRS’s “ Dirty Dozen Tax Scams .” More information about the Tax Division’s civil and criminal enforcement efforts in these and other areas is available on the Justice Department website . For more on the Dirty Dozen Tax Scams, see the IRS website and the IRS YouTube Channel .
Johnston Resident Pleads Guilty to Credit Card Fraud, Aggravated Identity Theft, Social Security FraudRead the Press Release
PROVIDENCE, R.I. – Henry A. Fellela, Jr., 56, of Johnston, pleaded guilty in federal court in Providence on Tuesday to charges that he fraudulently obtained the identity of a Smithfield resident and using that person’s identity and credit card to purchase more than $3,000 worth of goods. In addition, Fellela pleaded guilty to charges that he fraudulently obtained more than $58,000 in Supplemental Social Security benefits by falsely claiming he had no permanent home address while living with his wife and children in Johnston.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Fellela pleaded as charged in a five-count indictment returned in July 2013 with one count each of credit card fraud, aggravated identity theft and Social Security fraud, and two counts of theft of government funds.
Fellela’s guilty plea was announced by United States Attorney Peter F. Neronha; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; Smithfield Police Chief Richard P. St. Sauveur, Jr.; and Scott E. Antolik, Special Agent in Charge of the Boston Field Office of the Social Security Administration, Office of the Inspector General/Office of Investigations.
According to information presented to the court, an investigation by U.S. Postal Inspectors and Smithfield Police revealed that Fellela stole the identity of a Smithfield resident and used that person’s identity and credit card to make numerous purchases including electronic goods and clothing totaling $3,077.13.
In addition, according to information presented to the court, an investigation by the Social Security Administration, Office of the Inspector General/Office of Investigations determined that from March 2004, approximately three months after Fellela was released from federal prison to begin serving a 21-month term of supervised release on an unrelated matter, and continuing until about June 1, 2012, Fellela collected Supplemental Social Security benefits totaling $58,207.34 after falsely reporting that he had no permanent address at the time he applied for and received the benefits.
Fellela, who was released on $50,000 unsecured bond to home incarceration with electronic monitoring following his arrest in July 2013, faces statutory penalties of up 10 years imprisonment, 3 years supervised release and a fine $250,000 on the charge of credit card fraud; up to 10 years imprisonment, 3 years supervised release and a fine $250,000 on each charge of theft of government property; 5 years imprisonment, 3 years of supervised release and a fine of $250,000 on the charge of Social Security fraud; and 2 years imprisonment for aggravated identity theft, to be served consecutive to all other sentences imposed.
The case is being prosecuted by Assistant U.S. Attorney Richard W. Rose.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Indictment: Kansas Home Health Worker's BillsClaimed She Was Working up to 39 Hours A DayRead the Press Release
TOPEKA, KAN. - A Kansas City, Kan., woman working as a personal care attendant was indicted Wednesday on a federal charge that Medicaid paid more than $587,000 based on fraudulent bills she submitted, U.S. Attorney Barry Grissom and Kansas Attorney General Derek Schmidt announced.
Doris Betts, 54, Kansas City, Kan., was charged with six counts of health care fraud. The indictment alleged the crimes occurred while Betts was claiming to provide personal services, residential support, day support, and sleep cycle support for seven different Medicaid consumers through four different billing agencies since January 2008. Personal services include bathing, house cleaning, meal preparation, toileting, transferring and prompting patients to take medication.
The indictment alleges an analysis of Betts’ documentation of services showed:
- She claimed to be with two or more different clients at the same time.
- She claimed to provide services when clients actually were in the hospital.
- She claimed to provide services when she was at her own medical appointments.
- She claimed to provide services at different locations without any travel time between them.
The indictment alleges she documented more than 750 work days that exceeded 24 hours, the highest of which totaled 39.5 hours.
If convicted, she faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count. Health and Human Services and Kansas Attorney General Derek Schmidt’s Medicaid Fraud Division investigated. Assistant Attorney General Stefani Hepford of the Kansas Attorney General’s Office and Assistant U.S. Attorney Tanya Treadway are prosecuting.
OTHER INDICTMENTS
Shaun Lee Kendall, 29, and Michael Richard Wilkins, 21, both of whom are being held in the Shawnee County Jail, are charged are charged with one count of carjacking. The indictment alleges that on Jan. 29, 2014, in Shawnee County, Kan., they used force against a victim to steal a 1999 Dodge Dakota truck.
If convicted they face a maximum penalty of 15 years and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
Kyle B. Rains, 30, Park City, Kan., is charged with two counts of distributing child pornography and one count of possessing child pornography. The crimes are alleged to have occurred in February and March 2014 in Sedgwick County, Kan.
If convicted, he faces a penalty of not less than five years and not more than 20 years in federal prison and a fine up to $250,000 on the distribution counts, and a maximum penalty of 10 years and a fine up to $250,000 on the possession count. Homeland Security Investigations, the Internet Task Force on Crimes Against Children and the Wichita Police Department investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
Kevin L. Cline, 55, Minneapolis, Kan., and C&R Plating of Minneapolis, are charged with 20 counts of violating the Clean Water Act, one count of making false statements to the Kansas Department of Health and Environment, one count of failing to notify KDHE of changes to their wastewater pretreatment equipment, one count of failing to report a bypass of pretreatment equipment, and one count of illegally introducing pollutants into a sewer system.
The indictment alleges that pollutants from C&R Plating, a metal finishing business, were introduced into the sewer system of the City of Minneapolis, Kan.
If convicted, he faces a maximum penalty of three years in federal prison and a fine up to $50,000 per day of violation on 23 of the 24 counts. The charge of introducing pollutants into a sewer system carries a maximum penalty of five years in federal prison and a fine up to $250,000. The Environmental Protection Agency investigated. Assistant U.S. Attorney Rich Hathaway is prosecuting.
Edith Misael Salas-Rangel, 27, a citizen of Mexico, is charged with one count of unlawfully re-entering the United States after being deported. She was found March 28, 2014, in Geary County, Kan.
If convicted, she faces a maximum penalty of two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.Houston Man Convicted of Sex Trafficking of ChildrenRead the Press Release
HOUSTON – Tevon Harris aka “Da Kidd” and “King Kidd,” 22, of Houston, has entered a plea of guilty on two charges of trafficking children under 18 for commercial sex, announced United States Attorney Kenneth Magidson.
According to the plea agreement, from January through July 2012, Harris forced young girls, who he knew were minors, into prostitution by using force and intimidation. Harris stipulated that in order to gain the trust of victims, whom he met on social networking sites, he would tell them he was going to help them become models. Instead, he picked them up, took them to motel rooms and then forced them to have sex with him. Harris would also deprive them of their cell phones, thereby cutting off their communication with the outside world.
Harris used violence to keep the minors cooperating with him. In one instance, he deprived a victim of food for more than four days because he did not believe she was servicing his clients well enough. He also supplied her with marijuana and alcohol. Another victim was beaten with a towel rack torn from a motel room wall when Harris found her using the phone to call her mother for help.
The victims were photographed and their images were posted in online ads for prostitution. Harris kept all monies they earned.
U.S. District Judge David Hittner accepted the guilty pleas today and set sentencing for July 7, 2014. At that time, Harris faces a minimum of 10 years and up to life imprisonment and a maximum fine of $250,000. Upon completion of any prison term imposed, Harris also faces a maximum of life on supervised release and he will be required to register as a sex offender. He was ordered to remain in custody pending that hearing.
An investigation by the Houston FBI Innocence Lost Task Force, which includes such agencies as the Houston Police Department, developed this case using statements from victims as well as on line advertisements for the victims’ services and hotel records from several hotels.
This case, prosecuted by Assistant United States Attorney Sherri L. Zack, 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."
Hogsett Announces Eleven Individuals Indicted by Federal Grand Jury for Cocaine Drug TraffickingRead the Press Release
INDIANAPOLIS - Joseph H. Hogsett, United States Attorney, and representatives from the Indiana State Police, the Marion County Prosecutor’s Office and the Indianapolis Metropolitan Police Department (IMPD), announced today that federal charges have been filed and are being brought in furtherance of a long standing investigation named “Operation Family Ties” involving a drug trafficking operation in Indianapolis.
Hogsett announced that a federal grand jury returned an indictment charging the following individuals with cocaine trafficking:
Benigno Reyes-Contrerra, 27
Edgar Dominguez-Castillo, 25
Gerardo Baltierra, 29
Fellipe Maguellal, 22
Wade Havvard, 36
Antjuan Dyson, 36
Larry Eugene Coe, 39
Tuwanna Harney, 37
Timika Highbaugh, 39
Waimond Jackson, 53
Earnest McCain, 55All 11 defendants have been charged with conspiracy to possess with intent to distribute a controlled substance. Today’s indictment exposes these defendants to mandatory minimum sentences and higher maximum prison sentences than they originally faced when they were charged in state court.
Beginning in March 2010, IMPD began an investigation into a cocaine drug trafficking operation the Butler-Tarkington neighborhood of Indianapolis. Detectives learned that the organization had been trafficking in cocaine for more than two years.
It is alleged that Wade Havvard, Larry Coe and a previously federally indicted individual, Marvin Golden, 35, were significant cocaine traffickers in the Butler-Tarkington area. Hundreds of telephone and text messages were sent between them consistent with drug trafficking. It is alleged they would stash the cocaine in houses around the Butler-Tarkington area then sell to other middle- level dealers who would distribute the cocaine on the northwest side of Indianapolis.
The investigation culminated in the arrest of over 40 individuals in early January 2014, at which time more than 6 kilograms of cocaine was confiscated. Also seized at the time of arrests were marijuana, nine guns, six vehicles and approximately $198,000 in cash.
United States Attorney Hogsett said, Athe alleged conduct in this case is unacceptable for our community. We seek to impose the harshest penalties on those who refuse to observe even the most basic assumptions of civil society. I have promised to seek out the worst of the worst and hold them fully accountable and based on the allegations in the indictment; these defendants justify enhanced penalties in federal court”
Hogsett further praised his local partners by saying, “I want to thank all of our law enforcement partners, particularly the Drug Enforcement Administration, the Indiana State Police, and the Indianapolis Metropolitan Police Department, for their dedication to taking these drugs off the street, and, therefore, making our neighborhoods safer. I also want to personally thank the Marion County Prosecutor’s Office for their partnership in bringing these individuals to justice.”
According to Assistant U. S. Attorney Michelle Brady, who is the lead prosecutor in the case for the government, if convicted, some of the defendants face a minimum penalty of 10 years to life. Others face 20 years to life and three defendants face mandatory life sentences without the possibility of parole.
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.
Hewlett-Packard Russia Agrees to Plead Guilty to Foreign BriberyRead the Press Release
ZAO Hewlett-Packard A.O. (HP Russia), an international subsidiary of the California technology company Hewlett-Packard Company (HP Co.), has agreed to plead guilty to felony violations of the Foreign Corrupt Practices Act (FCPA) and admit its role in bribing Russian government officials to secure a large technology contract with the Office of the Prosecutor General of the Russian Federation.
Deputy Assistant Attorney General Bruce Swartz of the Justice Department’s Criminal Division, U.S. Attorney Melinda Haag of the Northern District of California, Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office and Chief Richard Weber of the Internal Revenue Service – Criminal Investigation (IRS-CI) made the announcement.
A criminal information filed today in U.S. District Court for the Northern District of California charges HP Russia with conspiracy and substantive violations of the anti-bribery and accounting provisions of the FCPA. In addition, the government is entering into criminal resolutions with HP subsidiaries in Poland and Mexico relating to contracts with Poland’s national police agency and Mexico’s state-owned petroleum company, respectively. Pursuant to a deferred prosecution agreement, the department filed a criminal information charging Hewlett-Packard Polska, Sp. Z o.o. (HP Poland) with violating the accounting provisions of the FCPA. Hewlett-Packard Mexico, S. de R.L. de C.V. (HP Mexico) has entered into a non-prosecution agreement with the government pursuant to which it will forfeit proceeds and admit and accept responsibility for its misconduct as set forth in the statement of facts. In total, the three HP entities will pay $76,750,224 in criminal penalties and forfeiture.
In a related FCPA matter, HP Co. settled with the U.S. Securities and Exchange Commission (SEC) and will pay an additional $31,472,250 in disgorgement and prejudgment interest, bringing the total amount of U.S. criminal and regulatory penalties paid by HP Co. and its subsidiaries (collectively, HP) to more than $108 million.
“Hewlett-Packard subsidiaries, co-conspirators or intermediaries created a slush fund for bribe payments, set up an intricate web of shell companies and bank accounts to launder money, employed two sets of books to track bribe recipients, and used anonymous email accounts and prepaid mobile telephones to arrange covert meetings to hand over bags of cash,” said Deputy Assistant Attorney General Swartz. “Even as the tradecraft of corruption becomes more sophisticated, the department is staying a step ahead of those who choose to violate our laws, thanks to the diligent efforts of U.S. prosecutors and agents and our colleagues at the SEC, as well as the tremendous cooperation of our law enforcement partners in Germany, Poland and Mexico.”
“The United States Attorney’s Office, working alongside our colleagues in the Criminal Division, will vigorously police any efforts by companies in our district to illegally sell products to foreign governments using bribes or kickbacks in violation of the FCPA,” said U.S. Attorney Haag. “Today’s resolution with HP reinforces the fact that there is no double standard: U.S. businesses must respect the same ethics and compliance standards whether they are selling products to foreign governments or to the United States government.”
“This case demonstrates the FBI's ability to successfully coordinate with our foreign law enforcement partners to investigate and bring to justice corporations that choose to do business through bribery and off-the-book dealings,” said Assistant Director in Charge Parlave. “I want to thank the agents who worked on this case in Washington, New York and in our Legal Attaché offices in Mexico City, Moscow, Berlin and Warsaw as well as the prosecutors. Their work ensures a level playing field for businesses seeking lucrative overseas government contracts.”
“This agreement is the result of untangling a global labyrinth of complex financial transactions used by HP to facilitate bribes to foreign officials,” said IRS-CI Chief Weber. “IRS-CI has become a trusted leader in pursuit of corporations and executives who use hidden offshore assets and shell companies to circumvent the law. CI is committed to maintaining fair competition, free of corrupt practices, through a potent synthesis of global teamwork and our dynamic financial investigative talents.”
According to court documents, in 1999, the Russian government announced a project to automate the computer and telecommunications infrastructure of its Office of the Prosecutor General of the Russian Federation (GPO). Not only was that project itself worth more than $100 million, but HP Russia viewed it as the “golden key” that could unlock the door to another $100 to $150 million dollars in business with Russian government agencies. To secure a contract for the first phase of project, ultimately valued at more than € 35 million, HP Russia executives and other employees structured the deal to create a secret slush fund totaling several million dollars, at least part of which was intended for bribes to Russian government officials.
As admitted in a statement of facts, HP Russia created excess profit margins for the slush fund through an elaborate buy-back deal structure, whereby (1) HP sold the computer hardware and other technology products called for under the contract to a Russian channel partner, (2) HP bought the same products back from an intermediary company at a nearly €8 million mark-up and paid the intermediary an additional €4.2 million for purported services, and (3) HP sold the same products to the GPO at the increased price. The payments to the intermediary were then largely transferred through a cascading series of shell companies – some of which were directly associated with government officials – registered in the United States, United Kingdom, British Virgin Islands and Belize. Much of these payments from the intermediary were laundered through off-shore bank accounts in Switzerland, Lithuania, Latvia and Austria. Portions of the funds were spent on travel, cars, jewelry, clothing, expensive watches, swimming pool technology, furniture, household appliances and other luxury goods. To keep track of these corrupt payments, the conspirators inside HP Russia kept two sets of books: secret spreadsheets that detailed the categories of recipients of the corrupt funds and sanitized versions that hid the corrupt payments from others outside of HP Russia. They also entered into off-the-books side agreements. As one example, an HP Russia executive executed a letter agreement to pay €2.8 million in purported “commission” fees to a U.K.-registered shell company, which was linked to a director of the Russian government agency responsible for managing the GPO project. HP Russia never disclosed the existence of the agreement to internal or external auditors or management outside of HP Russia and conducted no due diligence of the shell company.
According to an agreed statement of facts, in Poland, from 2006 through at least 2010, HP Poland falsified HP books and records and circumvented HP internal controls to execute and conceal a scheme to corruptly secure and maintain millions of dollars in technology contracts with the Komenda G³ówna Policji (KGP), the Polish National Police agency. HP Poland made corrupt payments totaling more than $600,000 in the form of cash bribes and gifts, travel and entertainment to the KGP’s Director of Information and Communications Technology. Among other things, HP Poland gave the government official bags filled with hundreds of thousands of dollars of cash, provided the official with HP desktop and laptop computers, mobile devices and other products and took the official on a leisure trip to Las Vegas, which included drinks, dining, entertainment and a private tour flight over the Grand Canyon. To covertly communicate with the official about the corrupt scheme, an HP Poland executive used anonymous email accounts, prepaid mobile telephones and other methods meant to evade detection.
In Mexico, according to the non-prosecution agreement, HP Mexico falsified corporate books and records and circumvented HP internal controls in connection with contracts to sell hardware, software, and licenses to Mexico’s state-owned petroleum company, Petroleos Mexicanos (Pemex). To secure the contracts, HP Mexico understood that it had to retain a certain third-party consultant with close ties to senior executives of Pemex. HP agreed to pay a $1.41 million “commission” to the consultant and hid the payments by inserting into the deal structure another third party, which had been approved by HP as a channel partner. HP Mexico made the commission payment to the channel partner, which in turn forwarded the payments to the consultant. Shortly thereafter, the consultant paid one of the Pemex officials approximately $125,000.
Court filings acknowledge HP Co.’s extensive cooperation with the department, including conducting a robust internal investigation, voluntarily making U.S. and foreign employees available for interviews, and collecting, analyzing, and organizing voluminous evidence for the department. Court filings also acknowledge the extensive anti-corruption remedial efforts undertaken by HP Co., including taking appropriate disciplinary action against culpable employees, and enhancing HP Co.’s internal accounting, reporting, and compliance functions.
The case is being investigated by the FBI’s Washington Field Office with assistance from the FBI’s New York City Field Office and FBI Legal Attache offices in Mexico City, Moscow, Berlin and Warsaw, and the IRS-CI’s Oakland Field Office. The case is being prosecuted by Trial Attorneys Ryan Rohlfsen and Jason Linder of the Criminal Division’s Fraud Section, and Assistant U.S. Attorney Adam Reeves of the Northern District of California. The Criminal Division’s Office of International Affairs also provided significant assistance in this matter.
The Justice Department expresses its deep appreciation for the significant assistance provided by the SEC’s Division of Enforcement, the Polish Anti-Corruption Bureau (CBA), the Polish Appellate Prosecutor’s Office, the Public Prosecutor’s Office in Dresden, Germany, and also acknowledges the contribution of our law enforcement partners in other countries involved in this matter.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.Hewlett-Packard Russia Agrees to Plead Guilty to Foreign BriberyRead the Press Release
WASHINGTON – ZAO Hewlett-Packard A.O. (HP Russia), an international subsidiary of the California technology company Hewlett-Packard Company (HP Co.), has agreed to plead guilty to felony violations of the Foreign Corrupt Practices Act (FCPA) and admit its role in bribing Russian government officials to secure a large technology contract with the Office of the Prosecutor General of the Russian Federation.
Deputy Assistant Attorney General Bruce Swartz of the Justice Department’s Criminal Division, U.S. Attorney Melinda Haag of the Northern District of California, Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office and Chief Richard Weber of the Internal Revenue Service – Criminal Investigation (IRS-CI) made the announcement.
A criminal information filed today in U.S. District Court for the Northern District of California charges HP Russia with conspiracy and substantive violations of the anti-bribery and accounting provisions of the FCPA. In addition, the government is entering into criminal resolutions with HP subsidiaries in Poland and Mexico relating to contracts with Poland’s national police agency and Mexico’s state-owned petroleum company, respectively. Pursuant to a deferred prosecution agreement, the department filed a criminal information charging Hewlett-Packard Polska, Sp. Z o.o. (HP Poland) with violating the accounting provisions of the FCPA. Hewlett-Packard Mexico, S. de R.L. de C.V. (HP Mexico) has entered into a non-prosecution agreement with the government pursuant to which it will forfeit proceeds and admit and accept responsibility for its misconduct as set forth in the statement of facts. In total, the three HP entities will pay $76,760,224 in criminal penalties and forfeiture.
In a related FCPA matter, the U.S. Securities and Exchange Commission (SEC) filed a proposed final judgment to which HP Co. consented. Under the terms of the proposed final judgment, HP Co. agreed to pay $31,472,250 in disgorgement, prejudgment interest, and civil penalties, bringing the total amount of U.S. criminal and regulatory penalties paid by HP Co. and its subsidiaries (collectively, HP) to more than $108 million.
“Hewlett-Packard subsidiaries created a slush fund for bribe payments, set up an intricate web of shell companies and bank accounts to launder money, employed two sets of books to track bribe recipients, and used anonymous email accounts and prepaid mobile telephones to arrange covert meetings to hand over bags of cash,” said Deputy Assistant Attorney General Swartz. “Even as the tradecraft of corruption becomes more sophisticated, the department is staying a step ahead of those who choose to violate our laws, thanks to the diligent efforts of U.S. prosecutors and agents and our colleagues at the SEC, as well as the tremendous cooperation of our law enforcement partners in Germany, Poland and Mexico.”
“The United States Attorney’s Office, working alongside our colleagues in the Criminal Division, will vigorously police any efforts by companies in our district to illegally sell products to foreign governments using bribes or kickbacks in violation of the FCPA,” said U.S. Attorney Haag. “Today’s resolution with HP reinforces the fact that there is no double standard: U.S. businesses must respect the same ethics and compliance standards whether they are selling products to foreign governments or to the United States government.”
“This case demonstrates the FBI's ability to successfully coordinate with our foreign law enforcement partners to investigate and bring to justice corporations that choose to do business through bribery and off-the-book dealings,” said Assistant Director in Charge Parlave. “I want to thank the agents who worked on this case in Washington, New York and in our Legal Attaché offices in Mexico City, Moscow, Berlin and Warsaw as well as the prosecutors. Their work ensures a level playing field for businesses seeking lucrative overseas government contracts.”
“This agreement is the result of untangling a global labyrinth of complex financial transactions used by HP to facilitate bribes to foreign officials,” said IRS-CI Chief Weber. “IRS-CI has become a trusted leader in pursuit of corporations and executives who use hidden offshore assets and shell companies to circumvent the law. CI is committed to maintaining fair competition, free of corrupt practices, through a potent synthesis of global teamwork and our dynamic financial investigative talents.”
According to court documents, in 1999, the Russian government announced a project to automate the computer and telecommunications infrastructure of its Office of the Prosecutor General of the Russian Federation (GPO). Not only was that project itself worth more than $100 million, but HP Russia viewed it as the “golden key” that could unlock the door to another $100 to $150 million dollars in business with Russian government agencies. To secure a contract for the first phase of project, ultimately valued at more than €35 million, HP Russia executives and other employees structured the deal to create a secret slush fund totaling several million dollars, at least part of which was intended for bribes to Russian government officials.
As admitted in a statement of facts, HP Russia created excess profit margins for the slush fund through an elaborate buy-back deal structure, whereby (1) HP sold the computer hardware and other technology products called for under the contract to a Russian channel partner, (2) HP bought the same products back from an intermediary company at a nearly €8 million mark-up and paid the intermediary an additional €4.2 million for purported services, and (3) HP sold the same products to the GPO at the increased price. The payments to the intermediary were then largely transferred through a cascading series of shell companies – some of which were directly associated with government officials – registered in the United States, United Kingdom, British Virgin Islands and Belize. Much of these payments from the intermediary were laundered through off-shore bank accounts in Switzerland, Lithuania, Latvia and Austria. Portions of the funds were spent on travel, cars, jewelry, clothing, expensive watches, swimming pool technology, furniture, household appliances and other luxury goods. To keep track of these corrupt payments, the conspirators inside HP Russia kept two sets of books: secret spreadsheets that detailed the categories of recipients of the corrupt funds and sanitized versions that hid the corrupt payments from others outside of HP Russia. They also entered into off-the-books side agreements. As one example, an HP Russia executive executed a letter agreement to pay €2.8 million in purported “commission” fees to a U.K.-registered shell company, which was linked to a director of the Russian government agency responsible for managing the GPO project. HP Russia never disclosed the existence of the agreement to internal or external auditors or management outside of HP Russia and conducted no due diligence of the shell company.
According to an agreed statement of facts, in Poland, from 2006 through at least 2010, HP Poland falsified HP books and records and circumvented HP internal controls to execute and conceal a scheme to corruptly secure and maintain millions of dollars in technology contracts with the Komenda Glówna Policji (KGP), the Polish National Police agency. HP Poland made corrupt payments totaling more than $600,000 in the form of cash bribes and gifts, travel and entertainment to the KGP’s Director of Information and Communications Technology. Among other things, HP Poland gave the government official bags filled with hundreds of thousands of dollars of cash, provided the official with HP desktop and laptop computers, mobile devices and other products and took the official on a leisure trip to Las Vegas, which included drinks, dining, entertainment and a private tour flight over the Grand Canyon. To covertly communicate with the official about the corrupt scheme, an HP Poland executive used anonymous email accounts, prepaid mobile telephones and other methods meant to evade detection.
In Mexico, according to the non-prosecution agreement, HP Mexico falsified corporate books and records and circumvented HP internal controls in connection with contracts to sell hardware, software, and licenses to Mexico’s state-owned petroleum company, Petroleos Mexicanos (Pemex). To secure the contracts, HP Mexico understood that it had to retain a certain third-party consultant with close ties to senior executives of Pemex. HP agreed to pay a $1.41 million “commission” to the consultant and hid the payments by inserting into the deal structure another third party, which had been approved by HP as a channel partner. HP Mexico made the commission payment to the channel partner, which in turn forwarded the payments to the consultant. Shortly thereafter, the consultant paid one of the Pemex officials approximately $125,000.
Court filings acknowledge HP Co.’s extensive cooperation with the department, including conducting a robust internal investigation, voluntarily making U.S. and foreign employees available for interviews, and collecting, analyzing, and organizing voluminous evidence for the department. Court filings also acknowledge the extensive anti-corruption remedial efforts undertaken by HP Co., including taking appropriate disciplinary action against culpable employees, and enhancing HP Co.’s internal accounting, reporting, and compliance functions.
The case is being investigated by the FBI’s Washington Field Office with assistance from the FBI’s New York City Field Office and FBI Legal Attache offices in Mexico City, Moscow, Berlin and Warsaw, and the IRS-CI’s Oakland Field Office. The case is being prosecuted by Trial Attorneys Ryan Rohlfsen and Jason Linder of the Criminal Division’s Fraud Section, and Assistant U.S. Attorney Adam Reeves of the Northern District of California with the assistance of Phillip Villanueva, Maryam Beros and Rayneisha Booth. The Criminal Division’s Office of International Affairs also provided significant assistance in this matter.
The Justice Department expresses its deep appreciation for the significant assistance provided by the SEC’s Division of Enforcement, the Polish Anti-Corruption Bureau (CBA), the Polish Appellate Prosecutor’s Office, the Public Prosecutor’s Office in Dresden, Germany, and our law enforcement partners in Mexico, the United Kingdom, Lithuania, Latvia, Italy, Spain and Hungary.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
(HP Mexico NPA )
(HP Poland DPA )
(HP Poland information )
(HP Russia information )
(HP Russia plea agreement )
Four Organizations Honored by U.S. Attorney’s Office During National Crime Victims’ Rights WeekRead the Press Release
Montgomery, Alabama - In recognition of National Crime Victims’ Rights Week (April 6-12, 2014), the United States Attorney’s Office for the Middle District of Alabama is honoring four organizations for their support and service to communities affected by crime, announced U.S. Attorney George L. Beck Jr. The Alabama Crime Victims’ Compensation Commission, the Family Sunshine Center, and the One Place Family Justice Center, all in Montgomery, along with the Wiregrass Angel House in Dothan, received letters of appreciation from U.S. Attorney Beck on April 9, 2014 to recognize their commitment to serving individuals whose lives have been devastated by crime.
This year’s theme—30 Years: Restoring the Balance of Justice—presents a perfect opportunity to salute these organizations and their long-term commitment to aiding crime victims. As we celebrate three decades of defending victims’ rights, we are reminded of how far we have come, and how much work is yet to be done.
Only 30 years ago, crime victims had virtually no rights and no assistance. Today, the 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. Financed not by taxpayers but by fines and penalties paid by offenders, the Crime Victims Fund supports victim services, such as rape crisis and domestic violence programs and victim compensation programs that pay many of victims’ out-of-pocket expenses from the crime, such as counseling, funeral expenses, and lost wages.
Crime can have a lasting physical, emotional, or financial impact on people of all ages and abilities, and of all economic and social backgrounds. In addition to these challenges, crime victims face a criminal justice system that often does not have the resources or expertise to help them deal with the remnants of crime.
Thankfully, many organizations in the Middle District have recognized the need for additional services and have made excellent progress in assisting crime victims. The Family Sunshine Center, the One Place Family Justice Center, and the Wiregrass Angel House provide a comprehensive set of services to crime victims in an effort to promote their safety, well-being, and recovery. The Alabama Crime Victims’ Compensation Commission seeks to ease the financial hardships encountered by victims by offsetting some of the lingering and significant expenses of crime.
“I am pleased to honor these organizations for the superb work they have done for crime victims in our communities,” said U.S. Attorney George L. Beck Jr. “They share a commitment to reaching every victim of crime and providing them with the services they desperately need. Although the U.S. Attorney’s Office must focus primarily on the prosecution of offenders, we recognize that nearly every crime we prosecute has a victim, and we want them to know they are not alone.”
Further information about National Crime Victims’ Rights Week is available at ovc.ncjrs.gov/ncvrw.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Former South Carolina Corrections Officer Sentenced for Beating Inmate with Mental IllnessRead the Press Release
Robin Smith, 38, a former corrections officer at the Alvin S. Glenn Detention Center in Richland County, S.C., was sentenced to serve 24 months in prison to be followed by three years of supervised release today in the U.S. District Court for the District of South Carolina in Columbia for assaulting a pre-trial detainee with mental illness. Smith previously pleaded guilty to violating the detainee’s civil rights.
On Feb. 11, 2012, while working as a corrections officer at the Alvin S. Glenn Detention Center, Smith used unreasonable, unprovoked force against an inmate with mental illness. During the course of a routine search of the victim’s cell, Smith twisted the victim’s wrist and arm and kicked him in the upper body. During the assault, the victim was lying on the floor of the cell with one hand cuffed, was not combative and posed no threat to Smith.
“The overwhelming majority of correctional officers dispatch their difficult duties with honor and professionalism,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Justice Department will aggressively prosecute those who cross the line to engage in acts of criminal misconduct.”
“What Robin Smith did was wrong,” said U.S. Attorney Bill Nettles for the District of South Carolina. “At the base level, Mr. Smith kicked a man around who was so mentally ill he could not understand or follow the directions Smith was giving him. No just society can allow that kind of conduct on the part of a corrections officer to go unpunished.”
“Aggressive investigation of civil rights violations is a priority of the FBI and we will continue to work with our law enforcement partners to ensure the public’s trust in law enforcement is not compromised by the type of behavior demonstrated in this case,” said FBI Acting Special Agent in Charge Ann Colbert.
Today’s sentence resulted from the investigative work of the FBI and the Richland County Sheriff’s Office. U.S. Attorney Nettles thanked Sheriff Lott and the Richland County Sheriff’s Department for their commitment to the investigation. The case is being prosecuted by Trial Attorneys Jared Fishman and Nicholas Murphy for the Civil Rights Division and First Assistant U.S. Attorney Beth Drake.
Former Sergeant First Class Sentenced for Bribery and Theft SchemesRead the Press Release
GREENVILLE – United States Attorney Thomas G. Walker announced that today in federal court, JAMES EDWARD TRAVIS was sentenced by Senior United States District Judge Malcolm C. Howard to 60 months of imprisonment and 3 years of supervised release. He was also ordered to pay $422,302.65 in restitution and forfeiture was also ordered. On December 9, 2013 TRAVIS pled guilty to a Criminal Information charging him with demanding, seeking, and accepting bribes, in violation of Title 18, United States Code, Sections 201(b)(2)(A) and (B), and to theft of government property in violation of Title 18, United States Code, Sections 641 and 2.
United States Attorney Walker reflected, “Public corruption such as this defendant’s criminal conduct undermines our nation’s reconstruction efforts overseas and dishonors the sacrifice our military makes every day.”
According to the Criminal Information filed on November 13, 2013, and information presented in open court, JAMES EDWARD TRAVIS was a Sergeant First Class in the United States Department of the Army assigned to the Operational Detachment-Bravo for Alpha Company, 4th Battalion, 3rd Special Forces Group for a wartime deployment to Afghanistan. Between January 3, 2012, and October 4, 2012, TRAVIS was deployed to Afghanistan, working out of Forward Operating Base Sharana. During his deployment, TRAVIS acted as both a paying agent and a contracting officer representative. As a contracting officer representative, TRAVIS was responsible for, among other things, approving completion of contracts and then approving payments. TRAVIS was also in charge of contracting for cargo vehicles or “jingle trucks” to move supplies and equipment as well as small construction projects. TRAVIS accepted kickbacks from various vendors on a “quid pro quo” basis for various contracts. The kickbacks ranged from $4,000 to $7,000 per contract. TRAVIS solicited the help of a DOD civilian contractor to get the bribe monies back to the United States. When, during the course of the investigation, TRAVIS was questioned by law enforcement regarding the source of the cash, heinitially lied and claimed that the cash was gambling winnings. TRAVIS also asked the DOD contractor to lie to law enforcement if questioned.
In addition, TRAVIS, another U.S. soldier, and a local Afghan worked together to steal fuel from FOB Sharana in Afghanistan. On multiple occasions, TRAVIS paid the other soldier to escort an Afghan driver to the fuel point on FOB Sharana, to load fuel into the Afghan’s tanker truck, and to escort the driver with the stolen fuel back off FOB Sharana. Agents determined that 182,815 gallons of fuel were stolen. Based on an average price of $2.31/gallon for JP-8 fuel, the loss from the fuel theft scheme to the government is estimated at $422,302.65.
In a letter to the Court, Brigadier General Darsie D. Rogers reflected, “Special Forces units’ successes in Afghanistan are based on trust, cooperation, and mutual respect with our Afghan counterparts and the Afghan people. We pride ourselves in our ‘quiet professionalism.’ SFC Travis’ actions were anything but professional. He disgraced not only US Army Special Forces, but all Soldiers who served honorably in Afghanistan.”
Defense Criminal Investigative Service (DCIS) Special Agent in Charge John F. Khin, Southeast Field Office, commented, "It is disheartening when a military member abandons his code of conduct and violates a position of trust for personal enrichment. The DCIS investigates fraud and corruption that undermines the integrity of the Department of Defense. We continue to aggressively investigate violators to preserve precious American taxpayer dollars and better support our Warfighters serving honorably and selflessly in Southwest Asia."
“American servicemen and women face dangerous situations every day; their lives should not be put at risk by fellow soldiers working for their own profit. James Edward Travis stole thousands of dollars meant to support efforts in Afghanistan, but he could not hide his crimes from the FBI and our military partners dedicated to upholding justice,” said John Strong, Special Agent in Charge of the FBI in North Carolina.
“Theft of fuel in a war zone is serious. Not only does it rob US taxpayers and damage the reconstruction effort, stolen fuel can also wind up in the hands of insurgents bent on harming Americans. There must be zero tolerance for this kind of crime -- and SIGAR is dedicated to ensuring that anyone engaging in this activity will face justice,” commented Special Inspector General for Afghanistan Reconstruction John F. Spoko.
The case was investigated by the Defense Criminal Investigation Service, the Office of the Special Inspector General for Afghanistan Reconstruction, the United States Army Criminal Investigation Command, and the Federal Bureau of Investigation. Assistant U.S. Attorney Banumathi Rangarajan handled the prosecution of this case on behalf of the Eastern District of North Carolina.
Former Partner of A Freehold Office Equipment Leasing Company Admits Stealing More Than $600,000Read the Press Release
TRENTON, N.J. – A former partner of a Freehold, N.J.-based office equipment leasing company today admitted stealing more than $600,000 in a fraudulent loan scheme, U.S. Attorney Paul J. Fishman announced.
Jason Lee Lum, 35, of Yardley, Pa., pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with wire fraud for receiving approximately $682,000 in fraudulently obtained loan proceeds.
According to documents filed in this case and statements made in court:
Lee Lum was a partner in a company called Superior Data Corp., which was in the business of providing office equipment leasing services. As a result of the high cost of leasing office equipment, the company would obtain loans through a financing company for its clients to lease office equipment. After a client agreed to lease office equipment, a company employee would submit the lease agreement paperwork to the financing company in order to obtain a loan for the client. If the financing company approved the loan, the financing company would send the loan proceeds directly to the company’s bank account. The client would then receive the leased office equipment and would directly repay the loan to the financing company.
As a partner at the company, Lee Lum was responsible for the company’s finances and for submitting loan documentation on behalf of clients. From October 2011 to May 2012, Lee Lum forged signatures of existing company clients on loan documents and then submitted the documents to the financing company. The company clients had neither approved nor consented to the loan documents being submitted, nor did the clients obtain any office equipment in connection with the fraudulent loan applications. When the financing company approved the fraudulent loan applications, Lee Lum directed the proceeds to be sent to the company’s bank account, which he controlled. Lee Lum used the fraudulently obtained loan proceeds to pay personal expenses, company payroll (including his own salary), and to increase the company’s revenue for accounting purposes. Lee Lum sought to conceal his fraud by making payments on the fraudulently obtained loans. When Lee Lum began to fall behind on those payments, the financing company that issued the loans sought payment directly from the company’s clients, whose names were on the fraudulent loans.
The wire fraud count to which Lee Lum pleaded guilty carries a maximum penalty of 20 years in prison and a $250,000 fine. As part of the plea, Lee Lum agreed to pay restitution in the amount of $682,862. Sentencing is scheduled for Sept. 19, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis of the U.S. Attorney’s Office Criminal Division in Trenton.
14-122
Defense counsel: Frederick W. Klepp Esq., Cherry Hill, N.J.
Lee Lum, Jason Information
Former Massachusetts Attorney Sentenced for Mortgage FraudRead the Press Release
BOSTON – A former attorney practicing in Boston was sentenced today for his involvement in a mortgage fraud scheme that resulted in more than $2.5 million in losses.
Charles R. Sammon, 37, of West Pittston, Pa., was sentenced today by U.S. District Court Judge Richard G. Stearns to 33 months in prison, 36 months of supervised release and $977,042 in restitution to defrauded lenders. In November 2013, Sammon pleaded guilty to wire fraud, mail fraud and unlawful monetary transactions.
Sammon participated in at least 13 fraudulent real estate transactions involving triple-decker apartment buildings in various sections of Boston, including Dorchester, Roxbury, and Jamaica Plain. For eight of those transactions, Sammon served as the real estate closing attorney representing the mortgage lender. For the other five, Sammon participated as the seller of real property himself. The basic scheme involved recruiting people to buy properties by promising to pay them as much as $40,000 per transaction, which was not disclosed to the lenders. Many of the buyers were also promised that the seller would pay the mortgage for upwards of a year. Also central to the scheme was telling the lenders that each borrower intended to occupy the property as their primary residence, which was not true.Many of the payments to buyers were made directly from Sammon’s law firm bank account on transactions for which he was the closing attorney, but he failed to disclose those payments to the mortgage lenders that he represented. Sammon also received some of the loan proceeds in addition to his legal fees for doing so, which was also not disclosed to the lender. In one transaction, he received more than $50,000.
Each of the loans given for these 13 transactions went into default, usually 12-18 months after the transaction, and all the properties were sold at foreclosure or through a short sale, resulting in combined losses to the lenders of more than $2.5 million.United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in New England; Shelly Binkowski, Inspector in Charge of the United States Postal Inspection Service; Steven Marks, Acting Special Agent in Charge of the United States Secret Service; and Fred Gibson, Acting Inspector General of the Federal Deposit Insurance Corporation, Office of Inspector General, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Mark J. Balthazard of Ortiz's Economic Crimes Unit and DOJ Trial Attorney Alexander H. Berlin.
Former Markham Deputy Police Chief Sentenced to Five Years in Prison for Lying to FBI About Raping Woman in Police CustodyRead the Press Release
CHICAGO — The former deputy police chief in south suburban Markham was sentenced today to the maximum of five years in federal prison after a judge ruled that he sexually assaulted a woman in police custody in 2010. The defendant, TONY D. DEBOIS, pleaded guilty last September to lying to FBI agents in 2012 about having had sex in his office, but he contended at a lengthy sentencing hearing last month that the woman he had sex with was not the victim, and the sex was consensual.
“It is a case about lying about a rape that occurred under the most egregious circumstances that law enforcement could imagine,” Assistant U.S. Attorney April Perry argued today before the sentence was imposed by U.S. District Judge Joan Lefkow.
“The seriousness should not be underestimated,” Judge Lefkow said, adding that she found Debois’ conduct “revolting.”
Debois, 42, of Frankfort, was also placed on supervised release for three years following his sentence, which he was ordered to begin serving on June 10.
Judge Lefkow ruled today that the government established that Debois raped the 21-yearold highly vulnerable victim by a “considerable” preponderance of the evidence presented at the hearing last month, including the victim’s testimony, which the judge said was corroborated by other factors. The victim and a man were arrested by Markham police officers on Sept. 23, 2010, after the man was suspected of engaging in a counterfeit currency transaction. The victim, who had no prior contact with law enforcement, was handcuffed, taken to the Markham Police Department, and placed in a holding cell for about 30 minutes. One of the arresting officers then took her to Debois’ tactical office, where, according to Judge Lefkow’s ruling, “he insinuated she could escape further trouble if she engaged in sex with him.” The judge found that Debois’ conduct was rape and that he later obstructed justice to avoid punishment for the sexual assault.
DeBois served as deputy chief in Markham between 2008 and 2011 and also served as the department’s head of internal affairs until 2011, when he became Markham’s inspector general until 2012. DeBois began his law enforcement career with the former Chicago Housing Authority Police Department in the 1990s, and he was a police officer in south suburban Harvey from 1999 to 2007, when he joined the Markham department.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. They thanked the Illinois State Police and the Cook County State’s Attorney’s Office for their extensive cooperation in the investigation.
The government was represented by Ms. Perry and Assistant U.S. Attorney Patrick Pope.
Former Executive Director of Rockwall Housing Development Corporation Sentenced to 12 Months and One Day in Federal Prison for Role in Conspiracy to Steal Federal Funds from HUDRead the Press Release
DALLAS — Jennifer Tyson, 37, of Rockwall, Texas, the former Executive Director/Manager of the Rockwall Housing Development Corporation (RHDC), was sentenced this morning by U.S. District Judge Ed Kinkeade to 12 months and one day in federal prison and ordered to pay $195,421.00 in restitution for conspiring to steal federal funds from the U.S. Department of Housing and Urban Development (HUD). Judge Kinkeade ordered Tyson to surrender to the Bureau of Prisons on May 6, 2013. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas announced today.
Specifically, Tyson pleaded guilty to an Information charging one count of conspiracy to commit theft concerning programs receiving federal funds. The RDHC is a landlord to several authorized public housing agencies (PHAs) in Rockwall. These PHAs, and, in turn, the RHDC, receive federal funds from HUD through the “Housing Choice Voucher Program.” The RHDC owns and operates a 36-unit apartment complex in Rockwall, known as “the Meadows.”
In her role as the RHDC’s Executive Director/Manager from June 2009 to November 2013, Tyson was an agent of the RHDC. Her responsibilities included, among other things, reviewing and processing monthly housing assistance payments and had managerial discretion and responsibility for the day-to-day running of the Meadows.
According to the factual resume filed in the case, beginning in March 2010 and continuing until June 2011, Tyson wrote approximately 128 RHDC checks, made out to Co-conspirator B, later identified as Trent George, 38, of Wright City, Oklahoma, totaling approximately $126,063. While this co-conspirator did perform some work for the Meadows, such as watering plants and picking up trash, George did not earn, and was not owed, $126,063 over the course of less than 16 months. George has pleaded guilty to his role in the conspiracy and scheduled to be sentenced on June 25, 2014.
Generally, George cashed the checks that Tyson gave to him. Then, Tyson, along with George and his fiancé, Co-conspirator A, later identified as Rachel McKnight, 31, of Garland, Texas, used the cash to purchase illegal narcotics for their own personal use. McKnight is scheduled to plead guilty next week to her role in the conspiracy.
From February 2011 until January 2012, Tyson wrote approximately 94 RHDC checks made out to “cash” and used the proceeds for her own personal use.
From October 2009 until October 2012, Tyson wrote approximately 55 RHDC checks made out to “reimbursement” and used the proceeds for her own personal use.
In January 2011, McKnight was evicted from the Meadows and began living with George in hotels in Rockwall. Tyson would occasionally visit them and the three would often use illegal narcotics in these hotel rooms. Tyson paid for these hotel stays using RHDC funds.
The investigation was conducted by HUD and the FBI. Assistant U.S. Attorney P.J. Meitl prosecuted.
Former Captain at New Mexico Prison Indicted for Sexual Assaults of Women Inmates and Making False StatementsRead the Press Release
A federal grand jury in Albuquerque, N.M., indicted John Greene, 70, a former captain at the Gallup-McKinley Adult Detention Center (GMADC), on charges related to the sexual assaults of women inmates in his custody.
Greene is charged with three counts of violating the civil rights of three different victims by engaging in unwanted sexual contact with the victims while they were incarcerated at GMADC. The indictment also charges Greene with two counts of making material false statements to the FBI. Specifically, one count charges Greene with lying to the FBI when he denied touching the breasts of a woman in his custody, and the second count charges Greene with lying to the FBI when he denied having any personal contact with another woman in his custody. The indictment alleges that Greene knew these statements were false at the time that he made them because he had, in fact, touched the breasts of these women.
Greene faces a statutory maximum sentence of 13 years in prison for all of the crimes charged in the indictment. An indictment is merely an accusation and Greene is presumed innocent unless proven guilty.
This case is being investigated by the Gallup Resident Agency of the Albuquerque Division of the FBI and is being prosecuted by Assistant U.S. Attorney Mark Baker for the District of New Mexico and Fara Gold of the Justice Department’s Civil Rights Division.
Former Captain at New Mexico Prison Indicted for Sexual Assaults of Female Inmates and Making False StatementsRead the Press Release
ALBUQUERQUE – A federal grand jury in Albuquerque, N.M., indicted John Greene, 70, a former captain at the Gallup-McKinley Adult Detention Center (GMADC), on charges related to the sexual assaults of female inmates in his custody.
Greene is charged with three counts of violating the civil rights of three different victims by engaging in unwanted sexual contact with the victims while they were incarcerated at GMADC. The indictment also charges Greene with two counts of making material false statements to the FBI. Specifically, one count charges Greene with lying to the FBI when he denied touching the breasts of a female in his custody, and the second count charges Greene with lying to the FBI when he denied having any personal contact with another female in his custody. The indictment alleges that Greene knew these statements were false at the time that he made them because he had, in fact, touched the breasts of these women.
Greene faces a statutory maximum sentence of 13 years in prison for all of the crimes charged in the indictment. An indictment is merely an accusation and Greene is presumed innocent unless proven guilty.
This case is being investigated by the Gallup Resident Agency of the Albuquerque Division of the FBI and is being prosecuted by Assistant U.S. Attorney Mark Baker for the District of New Mexico and Fara Gold of the Justice Department’s Civil Rights Division.Former CEO of Atlanta-area Daycare Chain Convicted of Stealing Nearly $2 Million in Federal Child Nutrition FundsRead the Press Release
ATLANTA - Antonio T. Hurt pleaded guilty to stealing nearly $2 million from a federal program that partially reimburses daycare centers for the cost of meals for needy children.
“This defendant stole nearly $2 million in funds intended to feed underprivileged children,” said United States Attorney Sally Quillian Yates. “This critically important program provides basic sustenance for those most in need. Instead of paying for school day nutrition, he used the money to expand his daycare business, lease luxury cars, buy jewelry, and pay for other personal expenses. We will continue to hold accountable those who siphon off public funds for personal use.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI remains well positioned to identify, investigate, and present for prosecution those individuals such as Mr. Hurt who would steal from the much needed and publicly funded federal programs such as the Child & Adult Care Food Program, all for their own personal gain. Today’s guilty plea ensures that this defendant, who demonstrated extraordinary greed as well as disregard for so many, will be held accountable for his criminal actions.”
“On behalf of the Georgia children and families who rely on this program, I want to thank U.S. Attorney Sally Quillian Yates and the Northern District of Georgia for bringing Dr. Hurt to justice,” said Bobby Cagle, Commissioner of Bright from the Start: Georgia Department of Early Care and Learning (DECAL), the state agency responsible for administering the Child and Adult Care Food Program (CACFP). “No amount of waste or fraud or even attempted waste or fraud will be tolerated and we will continue to turn these cases over for criminal prosecution and seek restitution wherever it is appropriate. This is literally taking food from those who need it most--infants, young children, the elderly, and chronically impaired disabled persons. Those who would take advantage of this program through fraud or deception have now been warned.”
“USDA-OIG’s investigative branch will continue to work diligently with the US Department of Justice and its law enforcement partners in investigating and prosecuting individuals and organizations who defraud the CACFP and all other USDA funded assistance programs,” said Karen Citizen-Wilcox, Special Agent-in-Charge, USDA-OIG-Investigations.
According to United States Attorney Yates, the charges and other information presented in court: Between 2007 and 2010, Hurt served as the Chief Executive Officer of Bright Star Early Learning Center, which owned and operated multiple daycare centers throughout metropolitan Atlanta, and in other parts of north Georgia under the name, “Bright Star.” Hurt also entered into franchise agreements that allowed multiple additional third-party daycare centers to operate under the “Bright Star” name.
In February 2006, Hurt arranged for Bright Star Early Learning Center to apply to participate in the Child & Adult Care Food Program (“CACFP”). CACFP, which is funded by the U.S. Department of Agriculture under the National School Lunch Act of 1964, is a federal program that partially reimburses daycare centers for the cost of serving breakfast and lunch to eligible children whose family income falls below certain thresholds. In Georgia, the program is administered by the Georgia Department of Early Care & Learning. Child and adult care centers that are eligible to participate in the program are required to submit monthly claims to the Department of Early Care & learning which detail the number of eligible students, meals, and other information for each 30-day period. The Department of Early Care & Learning then reimburses the daycare centers.
Beginning in October 2007 and continuing through January 2010, Hurt submitted millions of dollars in CACFP reimbursement claims to the Department of Early Care & Learning on behalf of his own daycare centers and his franchisees. Hurt’s reimbursement claims intentionally misstated the number of eligible students, meals, and other information. As a result, the Department of Early Care & Learning issued fraudulently inflated reimbursement funds to an account that Hurt controlled. Hurt then issued the expected payments to the unsuspecting daycare centers, and retained the fraudulently inflated portion for himself, amounting to approximately $1.9 million over a two-year period. Hurt used the money to expand and fund the operation of his daycare business, obtaining multimillion dollar acquisition and development loans to build new daycare centers, and in order to live beyond his means.
Hurt, 38, of Baltimore, Md., was formerly a Georgia high school principal.
Sentencing is scheduled for June 18, 2014, at 2:00 p.m. before United States District Judge Amy Totenberg.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorney David M. Chaiken is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Federal Prison Sentences Handed Down in El Paso Alien Smuggling CaseRead the Press Release
This morning, 63-year-old El Paso commercial truck driver Rogelio Munoz Chavarria was sentenced to four months in federal prison followed by two years of supervised release and fined $2,000 for his role in an undocumented alien smuggling scheme announced United States Attorney Robert Pitman and Homeland Security Investigations Special Agent In Charge Dennis Ulrich.
Chavarria’s sentencing comes one day after U.S. District Judge Philip R. Martinez sentenced co-defendant and ringleader Refugio Aide Diaz Martinez, a 45-year-old Mexican National who had been residing illegally in the Dallas area, to six years in federal prison and ordered her to pay a $12,500 fine. In February, Diaz’s husband and co-ringleader, 46-year-old Robert “Beto” Perez, Jr. of Dallas, was sentenced to eight years in federal prison and fined $15,000 for his role in the scheme. All three had previously pleaded guilty to conspiracy to smuggle undocumented aliens for financial gain.
According to court records, since September 2008, Diaz, Perez, Chavarria and 12 other convicted individuals were involved in an alien smuggling ring based in Dallas, Texas. This organization was responsible for the smuggling, transporting and harboring of more than 150 undocumented aliens, including at least 18 minors, through the El Paso/Juarez corridor. Sentences handed down thus far in this case range from probation to eight years in federal prison.
Two other commercial truck drivers--51-year-old Lazaro Echeverria of Miami Gardens, FL, and 46-year-old Cesar Delgadillo of Hesperia, CA—are scheduled for sentencing on April 23, 2014, and May 14, 2014, respectively. Each faces up to ten years in federal prison for conspiring to smuggle undocumented aliens for financial gain.
This investigation was conducted by Homeland Security Investigations (HSI). Assistant United States Attorney Patricia Aguayo is prosecuting this case on behalf of the Government.
Elyria Man Faces Bank Robbery and Firearms ChargesRead the Press Release
A federal grand jury returned a four-count indictment charging Jonathon E. Schubert, age 29, of Elyria, Ohio, with armed bank robbery and brandishing a firearm during the commission of a felony, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Jonathon E. Schubert robbed three different PNC Banks (in Sheffield Village, Cleveland, and North Olmsted, Ohio) on November 26, 2013, January 27, 2014, and March 10, 2014, stealing approximately $15,315.75 from the banks, and brandishing a firearm during the commission of the November 26,2013 robbery.
If convicted, Schubert’s sentence will be determined by the Court after review of factors unique to this case, including Schubert’s prior criminal record, if any, his role in the offense and the unique 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 case is being prosecuted by Assistant U.S. Attorney Adam J. Hollingsworth following an investigation by the Federal Bureau of Investigation.
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
Elyria Man Charged with Heroin and Fentanyl Distribution, Including Fentanyl Which Caused the Death of an Elyria ResidentRead the Press Release
A six-count indictment was filed charging an Elyria man with distribution of heroin and fentanyl, including distributing fentanyl that caused the death of an Elyria resident on Nov. 9, 2013, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Siarres R. Noble, age 29, faces two counts of distribution of heroin and four counts of distribution of fentanyl.
The charges include the specification that alleges the fentanyl Noble distributed on November 8, 2013, resulted in the death of an Elyria resident one day later.
“The poison sold by this defendant directly led to the death of a woman,” Dettelbach said. “Heroin and fentanyl use leads to death, destroys lives and damages families. We will continue doing all we can to turn the tide on this epidemic.”
“Information about heroin and other dangerous illegal drugs has become too common place in our daily news reports,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office. “The partnership between law enforcement, social services and the community must continue in order to further attempts to rid our territory of these highly addictive substances.”
Elyria Police Chief Duane Whitely said: “There is a serious drug problem in this country and it is important that law enforcement at every level take the steps necessary to combat the sales of illegal drugs. Sadly, in this case, the sale of drugs led to someone’s death. The weapon used may not have been a gun, but it is just as deadly.
“I want to thank everyone involved in this case for the effort they put into it. Starting with the response from Elyria Police Investigative Unit for responding so quickly to the spike in overdoses that led to the arrest of Siarres Noble for selling the drugs that led to the death. I cannot say enough about the efforts put forward by the Lorain County Prosecutor’s office, the FBI and the U.S. Attorney’s office. It is the strong working relationship between all of these agencies that led to the federal indictment of Siarres Noble,” Whitely said.
The indictment results from an investigation conducted by the Elyria Police Department and the Federal Bureau of Investigation.
The case was presented for indictment by Assistant United States Attorneys Robert F. Corts and Vasile C. Katsaros and Special Assistant United States Attorney Margaret Tomaro.
If convicted, the defendants’ sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
El Departamento de Justicia y el Poder Judicial de Nueva Jersey Colaboran en Asegurar que se Provean Servicios de Asistencia Idiomática en TribunalesRead the Press Release
WASHINGTON – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con el Poder Judicial de Nueva Jersey para que el poder judicial del estado brinde servicios integrales de asistencia idiomática a personas con conocimientos de inglés limitados [Limited English Proficient (LEP)]. El departamento informó al Poder Judicial de Nueva Jersey por medio de una carta con fecha del 7 de abril de 2014, que estaba cerrando su indagación, la cual fue abierta en respuesta a quejas de usuarios de los tribunales de que dos condados de Nueva Jersey no eran plenamente accesibles a personas LEP. El departamento abrió su investigación bajo el Título VI de la Ley de Derechos Civiles de 1964, el que prohíbe la discriminación debido al origen nacional por parte de beneficiarios de asistencia federal y exige que dichos beneficiarios brinden acceso significativo a personas LEP.
La carta de resolución entre el departamento y el Poder Judicial de Nueva Jersey describe las acciones e iniciativas que el Poder Judicial de Nueva Jersey ha implementado en respuesta a las inquietudes expuestas durante la indagación federal y la labor que llevarán a cabo para asegurar la provisión continua de asistencia idiomática integral en todo el sistema judicial. Las iniciativas incluyen, entre otras, servicios de intérprete para litigantes, interpretación en lenguaje de señas en tribunales, servicios para asistir a usuarios LEP a llevar a cabo negocios, tales como quioscos bilingües de autoayuda y videos tutoriales, la traducción de más de 340 formularios y folletos de autorrepresentación, avisos traducidos, traducción instantánea (oral) en temas emergentes y urgentes y la publicidad de estos servicios en publicaciones ampliamente leídas por la comunidad local hispana. El Poder Judicial de Nueva Jersey también está realizando una indagación en todo el estado de servicios de intérprete disponibles en cárceles, para cerciorarse que todas las personas LEP tengan acceso significativo a los tribunales.
"El Poder Judicial de Nueva Jersey es un líder en el campo de políticas de interpretación hace muchos años, y felicitamos al Director Administrativo Interino, el Juez Grant, el personal del Poder Judicial de Nueva Jersey y partes interesadas que han trabajado para asegurar que el estado también sea un líder en el acceso a los tribunales de manera más general", señaló la Secretaria de Justicia Auxiliar Interina Jocelyn Samuels de la División de Derechos Civiles. "En especial, aplaudimos la labor de los líderes judiciales estatales y locales de comunicarse con las partes LEP interesadas y sus representantes para abordar estos desafíos".
La demanda fue resuelta como parte de una iniciativa de la Sección de Coordinación y Cumplimiento Federal [Federal Coordination and Compliance Section (FCS)] de la División de Derechos Civiles para asegurar que los tribunales estatales cumplan con las exigencias de acceso idiomático del Título VI. La FCS provee orientación en políticas y asistencia técnica a los sistemas judiciales estatales a través de herramientas como la recientemente lanzada Herramienta de planificación y asistencia del acceso idiomático, y se ocupa de hacer valer la ley en todo el país.
Estuvo a cargo del caso de Nueva Jersey el Secretario de Justicia Auxiliar Ndidi Moses del Distrito de Connecticut, con la asistencia de la Consejera Legal Especial Christine Stoneman de la División de Derechos Civiles.
Para obtener más información sobre el Título VI y la Ley de Calles Seguras, o para obtener copias de documentos relacionados con este caso, visite el portal de LEP en Internet.
Edgewater, Maryland Woman Pleads Guilty to Scheme to Defraud the IRSRead the Press Release
Scheme Resulted in Tax Loss of More Than $839,000
Greenbelt, Maryland - Georgia Smith, age 52, of Edgewater, Maryland, pleaded guilty today to conspiring to defraud the United States in connection with a scheme to file false tax returns by concealing income and inflating expenses.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration Inspector General Peggy E. Gustafson; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and General Services Administration Inspector General Brian D. Miller.
Georgia Smith’s husband, Vernon Smith, was the president and sole owner of Capitol Contractors since 2002. Capitol Contractors was a Maryland corporation with its headquarters in Capitol Heights, Maryland and later Edgewater, Maryland. Capitol Contractors had provided roofing and construction services but was largely dormant after 2002.
In 1999, Vernon Smith caused a new roofing and construction company, Platinum One Contracting, Inc. (“Platinum”) to be incorporated in Maryland. Although Vernon Smith installed two individuals to be the nominee owners and officers of Platinum, Vernon Smith exercised complete and undisclosed control over Platinum’s business operations. Georgia Smith was in charge of Platinum’s accounting, and acted as the de facto Controller for the company.
Georgia Smith and Vernon Smith transferred millions of dollars from Platinum to bank accounts in their own names, to casinos on their own behalf, to Capitol Contracting and another company owned by Vernon Smith, and to credit card companies to pay for personal expenses that Georgia Smith and Vernon Smith charged to Platinum’s corporate credit cards, including extensive dental work, veterinary visits for personal pets, lavish vacations, a Royal Caribbean cruise, limousine transportation to casinos in Atlantic City, N.J., funeral expenses for a family relative, fencing for their personal residence, among others. Georgia Smith also mischaracterized numerous payments to casinos as subcontractor expenses.
Georgia Smith admits that she and Vernon Smith signed false corporate and personal tax returns for 2005 and 2006. The Smiths knew that the cost of goods sold and payments to contractors reported on the corporate returns were false because almost all of that money was paid to, and for the benefit of, Georgia and Vernon Smith at casinos. They also knew that the income reported on their personal income taxes omitted hundreds of thousands of dollars that Capitol Contractors had paid to, and for their benefit. As a result, the Smith’s owed additional personal income tax to the IRS totaling $264,105, and Capitol Contractors owed an additional $574,911 to the IRS for tax years 2005 and 2006. The total tax loss resulting from Georgia and Vernon Smith’s conspiracy to defraud the IRS is $839,016.
Vernon J. Smith III, age 61, also of Edgewater, pleaded guilty last week to his participation in the tax scheme, as well as to fraudulently obtaining more than $52 million in federal contracts to which it was not entitled under the Small Business Administration Section 8(a) program. The total loss to the government resulting from Vernon Smith’s illegal conduct, regarding the illicit profit he received by defrauding the SBA, and depriving a legitimate Section 8(a) contractor of such profit, is $6,194,828.
Georgia Smith faces a maximum sentence of five years in prison for the conspiracy. U.S. District Judge Paul W. Grimm has scheduled her sentencing for July 2, 2014, at10:30 a.m. Vernon Smith’s sentencing is scheduled for July 2, 2014, at 9:30 a.m.
United States Attorney Rod J. Rosenstein praised the SBA Office of Inspector General; Defense Criminal Investigative Service; IRS Criminal Investigation; and the GSA Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Gregory R. Bockin and Trial Attorney Kenneth C. Vert of the U.S. Department of Justice Tax Division, who are prosecuting the case.
Department of Justice and New Jersey Judiciary Collaborate to Ensure Provision of Language Assistance Services in CourtsRead the Press Release
The Justice Department announced today that it has reached an agreement with the New Jersey Judiciary to provide comprehensive language assistance services to limited English proficient (LEP) individuals. In a letter agreement reached on April 7, 2014, the department informed the New Jersey Judiciary that it was closing its review, which was opened in response to complaints by court users that courthouses in two counties in New Jersey were not fully accessible to LEP individuals. The department opened its inquiry under Title VI of the Civil Rights Act of 1964, which prohibits national origin discrimination by recipients of federal assistance and requires those recipients to provide meaningful access to LEP individuals.
The resolution letter between the department and the New Jersey Judiciary outlines actions and initiatives that the New Jersey Judiciary has implemented to respond to concerns raised during the federal review and the efforts they will undertake to ensure the ongoing provision of comprehensive language assistance throughout the court system. The initiatives include, among other things, interpreter services for litigants, multi-lingual signage in courthouses, services to assist LEP patrons with transacting business such as bilingual self-help kiosks and tutorial videos, the translation of over 340 statewide pro se forms and brochures, translated notices, sight translation in emergent and time-sensitive matters and the advertisement of these services in publications widely read by the local Latino community. The New Jersey Judiciary is also conducting statewide reviews of courthouse access and of the interpreter services available in its holding cells to ensure that all LEP individuals have meaningful access to the courts.
“The New Jersey Judiciary has been a leader in the field of interpreter policies for many years, and we commend Chief Justice Stuart Rabner, Acting Administrative Director Judge Glen Grant, the New Jersey Judiciary staff and stakeholders who have all worked to ensure that the state is also a leader in access in the courthouse more generally,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “We particularly commend the efforts of the state and local court leaders to communicate with LEP stakeholders and their representatives to address these challenges.”
The complaint was resolved as part of an 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. FCS provides policy guidance and technical assistance to state court systems through tools such as the recently released Courts Language Access Planning and Assistance Tool, and undertakes enforcement actions across the country.
The New Jersey matter was handled by attorney Ndidi Moses with the assistance of Special Legal Counsel Christine Stoneman.
For more information about Title VI and the Safe Streets Act, or to obtain copies of documents related to this matter, please visit the LEP website . A Spanish translation of this release will be available soon at the Justice en Español website .
Demolition Company Operators Sentenced in Manhattan Federal Court for Scheme to Underpay Employees in Violation of Federal Prevailing Wage LawRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JOVER NARANJO, the owner and president of Enviro & Demo Masters, Inc. (“Enviro”), and LUPERIO NARANJO, SR., a foreman for Enviro, were sentenced today in Manhattan federal court to six and four years in prison, respectively, for perpetrating a scheme to underpay employees in violation of the federal prevailing wage law and for tampering with witnesses and using other people’s identities to further this scheme. Both defendants were convicted in November 2013 after a two-week trial before U.S. District Judge Jed S. Rakoff, who imposed today’s sentences.
Manhattan U.S. Attorney Preet Bharara said: “Today’s sentences ensure Jover Naranjo and Luperio Naranjo, Sr., will pay a steep price for underpaying their staff, abusing federal funds, and then lying to cover it all up – loss of their liberty.”
According to the Complaint and the Superseding Indictment filed in Manhattan federal court and the evidence presented at trial:
In August 2009, Enviro was awarded a sub-contract by the general contractor on a New York City project (the “Project”) to demolish five buildings in Upper Manhattan (the “Contract”) that was funded in part with federal stimulus money. From August 2009 through February 2010, JOVER NARANJO and LUPERIO NARANJO, SR., participated in a scheme to submit fraudulent certified payrolls to the New York City Department of Housing Preservation and Development (“HPD”) and the U.S. Department of Labor in connection with the Contract. These certified payrolls were fraudulent in at least three respects. First, they listed relatives as the demolition workers on the Project, when in fact, these relatives did no work. Second, the certified payrolls did not list the actual individuals who worked on the Project. Third, the certified payrolls misrepresented the wages being paid to Enviro’s workers.
In this regard, the fraudulent certified payrolls indicated that Enviro was paying its employees the federal prevailing wage, as required by federal law, but in reality, they were being paid far less. Although the applicable federal prevailing wages for Enviro employees working on the Contract were approximately $49 and $33 per hour for demolition laborers, depending on their specific job responsibilities JOVER NARANJO and LUPERIO NARANJO, SR., paid their demolition workers as little as $13 per hour. The total amount of salary underpaid by the defendants to Enviro employees working on the Contract was in excess of approximately $650,000.
JOVER NARANJO and NARANJO, SR., also employed a number of measures to conceal their fraud. For example, they submitted supporting documentation with the certified payrolls that included time sheets on which they forged workers’ signatures and canceled checks that they had doctored to make it appear that workers were earning the prevailing wage. In addition, they hid their workers from investigators and told some to lie about their identities, work schedules, and/or pay rates if they were questioned by investigators. When an employee truthfully told investigators that the employee was paid below the prevailing wage, JOVER NARANJO and LUPERIO NARANJO, SR., fired the employee and the employee’s relative.
JOVER NARANJO, 37, of Queens, New York, was also sentenced to three years of supervised release, and ordered to pay a $600 special assessment fee. LUPERIO NARANJO, SR., 65, of Queens, New York, was also sentenced to three years of supervised release, and ordered to pay a $500 special assessment fee. Forfeiture and restitution for both defendants will be determined at a later date
Mr. Bharara praised the outstanding investigative work of the New York Field Office of the U.S. Department of Labor’s Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, New York City Department of Investigation, and the United States Environmental Protection Agency Criminal Investigation Division.
This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Brian A. Jacobs and Brent S. Wible are in charge of the prosecution.
Cuyahoga Falls Man Pleads Guilty to Trying to Buy A ChildRead the Press Release
A Cuyahoga Falls man pleaded guilty to offering to buy a child, enticement, and receiving and distributing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office.
Robert W. Thomas, 37, is scheduled to be sentenced July 24.
“The conduct laid out in the indictment should sound an alarm for all parents,” Dettelbach said. “We will remain vigilant in protecting our children from predators.”
“Mr. Thomas’ behavior and his stated desires for wanting to buy a child are frightening,” Anthony said. “Law enforcement will continue to proactively and aggressively pursue predators that intend to harm our children and this is yet another reminder for parents to be aware of their child's Internet activities.”
From on or about January 6, 2014, through on or about January 11, 2014, Thomas offered to purchase or otherwise obtain custody or control of a minor, that is, a 10-year-old girl, with the intent to promote the engaging in of sexually explicit conduct by such minor for the purpose of producing a visual depiction of such conduct; and such offer was communicated and transported using any means and facility of interstate and foreign commerce, and in and affecting interstate and foreign commerce by any means including by computer, according to court documents.
From on or about January 6, 2014, through on or about January 11, 2014, Thomas knowingly used a computer connected to the Internet and a cellular phone, to attempt to induce a 10-year-old girl to engage in illegal sexual activity with him, according to court documents.
From on or about January 1, 2012, through on or about January 11, 2014, Thomas knowingly received and distributed in interstate and foreign commerce, by computer, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct, according to court documents.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Canton Office of the Federal Bureau of Investigation and the Alliance Police Department.
Cleveland Woman Charged with Theft of Government FundsRead the Press Release
A federal Grand Jury returned a two-count indictment charging Rita Johnson, 61, of Cleveland, with theft of government funds and making false statements in relation to fraudulently securing Social Security benefits, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Johnson, the representative payee for her grandmother, stole approximately $74,197 in government funds from the date of her grandmother’s death on May 2, 2004 until March 2011.
Johnson accomplished this scheme by concealing her grandmother’s death and then converting her deceased grandmother’s Social Security benefits for her own use in violation of her responsibilities as a representative payee and federal law, according to the indictment.
The indictment also alleges that, when asked by federal agents about her grandmother, Johnson made false statements and fraudulently provided a forged funeral service program that listed an inaccurate date of death.
Assistant United States Attorney Matthew J. Cronin is prosecuting the case following an investigation by the Social Security Administration's Office of Inspector General.
If convicted, the Court will determine the defendant’s sentence after a 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. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Cleveland Man Charged with Fraudulently Receiving $55,000 in Student Financial AidRead the Press Release
A Cleveland man was indicted on charges that he fraudulently received up to $55,000 in federal student financial aid funds, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Robert Williams, 35, faces one count of theft of federal student financial aid funds.
The indictment alleges that Williams enrolled in approximately six different Ohio colleges between 2007 and 2012 in order to receive Department of Education and Department of Veterans Affairs federal student aid benefits, despite the fact that he had no intention of obtaining a degree.
Williams used the federal student aid funds for his own personal use and enjoyment, according to the indictment.
Assistant United States Attorney Matthew J. Cronin is prosecuting the case following an investigation by the Department of Education -- Office of Inspector General and the Department of Veterans Affairs -- Office of Inspector General.
If convicted, the Court will determine the defendant’s sentence after a 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. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.Chicago Transportation Department Clerk Arrested for Allegedly Embezzling over $741,000 from City Permit FeesRead the Press Release
CHICAGO — A clerk for the City of Chicago’s Department of Transportation (CDOT) was arrested today for allegedly embezzling more than $741,000 from fees that were paid for certain city permits. The defendant, ANTIONETTE CHENIER, a city clerk since 1990, allegedly diverted the funds from checks that were written by companies that applied for and received city permits to block public ways with dumpsters or moving vans.
Chenier, 50, of Homewood, was charged with embezzlement in a criminal complaint that was unsealed following her arrest this morning. She is scheduled to appear at 3 p.m. today before Magistrate Judge Sheila Finnegan in U.S. District Court.
The arrest and charge follow an investigation by the Chicago Office of the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, and the City of Chicago Office of Inspector General.
From 1993 through 2005, Chenier was assigned to CDOT, and from 2006 through 2008, she was assigned to the city’s Office of Emergency Management and Communication (OEMC) before being transferred back to CDOT. As a clerk, working in CDOT’s City Hall permitting office, she was involved in processing the moving van and dumpster permit fees.
The city charges a $25 daily fee for a residential moving van and between $50 and $200 (or higher) per dumpster, depending on the size, location, and length of time the dumpster will be on a city street. For several years, companies have been able to apply for permits through a website operated by CDOT. Although CDOT issues the permits and collects payment, the checks are often made payable to OEMC, which previously administered the permit process.
According to the complaint affidavit, bank records show that Chenier opened a personal bank account in August 2008 and a business account at the same bank in March 2009 under the name “OEMC Chenier,” and she was the sole signatory on both accounts. Between August 2008 and January 2014, she allegedly deposited several hundred checks, totaling $741,299, payable to OEMC and other city departments into her personal and business accounts.
In January this year, bank officials noticed Chenier’s unusual banking activity and froze her business account, according to the affidavit.
The arrest and complaint were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the FBI; James C. Lee, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and Chicago Inspector General Joseph Ferguson.
Embezzlement carries a maximum penalty of 10 years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines. The government is being represented by Assistant U.S. Attorney Steven Block.
A complaint contains merely charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Complaint
Charleston Woman Sentenced for Her Role in Pill RingRead the Press Release
Defendant allowed her residences to be used for drug trafficking
Charleston, W.Va. – United States Attorney Booth Goodwin announced today that Alexus Motley, 21, of Charleston, was sentenced in federal court in Charleston to six months imprisonment for her participation in an illegal pill distribution ring. The sentence was imposed by United States District Court Judge Thomas E. Johnston. Motley had previously plead guilty to aiding and abetting the possession with intent to distribute oxycodone, Opana, and Xanax - dangerous and addictive prescription drugs.
In March of 2012, the Metropolitan Drug Enforcement Network Team (“MDENT”) began investigating drug dealers who travelled from New York to West Virginia to distribute prescription pain pills. In April of 2012, MDENT searched an apartment at 818 ½ West Avenue in Charleston, rented in Motley’s name. Officers found a gun, $3,740 in cash, 520 Xanax pills, 93 oxycodone pills, marijuana and documents belonging to Santiago Zacharie and Walter Parris. Motley had turned over occupancy of the apartment to Zacharie and Parris, who she knew were transporting oxycodone, Opana, Xanax, and other controlled substances from New York to the Charleston area for distribution. Motley also knew that Zacharie and Parris were using the West Avenue apartment as a “stash” house to store their pills. Zacharie and Parris have both been convicted for their roles in the distribution ring and sentenced to 27 months and 37 months, respectively.
In June of 2012, MDENT was conducting surveillance of Motley’s residence on Park Drive in Charleston. Officers had information that Ajamu Osborne, a fugitive, was inside the residence. Officers observed Osborne leave the residence and ride away on a bicycle. Officers arrested Osborne and recovered a bag containing 98 oxycodone 30 mg pills. A search of Motley’s Park Drive residence uncovered an additional 60 oxycodone 30 mg pills, a quantity of “Molly” (MDMA), a street drug akin to “Ecstasy,” 10 Opana pills, and approximately $15,000 in cash. Obsorne has pleaded guilty to possession with intent to distribute oxycodone and is scheduled to be sentenced on April 23, 2014.
The Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney Monica D. Coleman is in charge of the prosecution.This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Catoosa Man Sentenced to 18 Months for Failure to Register as Sex OffenderRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that JAMES WILLIAM WHITE, age 46, of Catoosa, Oklahoma, was sentenced to 18 months imprisonment, followed by 5 years of supervised release for Failure to Register as a Sex Offender, in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(B) and 2250(a)(3).
Charges arose from an investigation by and the Wagoner County Sheriff’s Department and the United States Marshal Service. The defendant was indicted in June, 2013 and pled guilty in August, 2013.
The Indictment alleged that from in or about March, 2013, until on or about June 4, 2013, in the Eastern District of Oklahoma, and elsewhere, the defendant, an individual required to register as a sex offender under the Sex Offender Registration and Notification Act, after having received a felony conviction from the State of North Carolina on or about December 11, 2006, for the felony offense of Indecent Liberty With Child, traveled in interstate commerce and knowingly failed to register and update his registration as required by the Sex Offender Registration and Notification Act.
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 facility at which he will serve his nonparolable sentence.
Assistant United States Attorney Edward Snow represented the United States.
Canton Company and Business Owner Charged with Fraud for Making False Statements to Get Federal WorkRead the Press Release
A Canton man and the construction company he owns were charged with one count of wire fraud for making false representations about the company’s office location so it could obtain a HUBZone certification and qualify for tens of millions of dollars’ worth of federal contracts, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Charged are William Richardson III, also known as Buster Richardson, and TAB Construction Company, Inc., of which Richardson is the sole owner and shareholder.
The Historically Underutilized Business Zone Act of 1997 (the HUBZone Program), was established to provide federal contracting assistance for qualified small business concerns located in historically underutilized business zones in an effort to increase employment opportunities, investment, and economic development in those areas. Under the HUBZone Program, certain government contracting opportunities were “set aside” to be awarded only to eligible HUBZone Program participants, according to the information.
There were four requirements to participate in the HUBZone Program. First, a firm had to be classified as a small business. Second, the firm had to be controlled and owned at least 51 percent by United States citizens. Third, a firm’s principal office had to be located in a designated HUBZone area. Fourth, at least 35 percent of the firm’s employees had to reside in a designated HUBZone area. Only firms that satisfied all of these requirements were eligible to participate in the HUBZone Program and compete for HUBZone set-aside and/or sole-source contracts, according to the information.
Before a firm could participate in this program and bid on designated government contracts, it had to seek and obtain a certification from the United States Small Business Administration (SBA) verifying that the firm was HUBZone Program eligible. The SBA relied on information that was provided by applicant firms to determine and certify eligibility, according to the information.
In August 2000, to obtain a HUBZone certification, Richardson and TAB submitted to SBA a HUBZone application in which Richardson falsely stated that TAB’s principal office was located at 1010 Walnut Avenue NE in Canton, a location that was within a designated HUBZone area. TAB’s principal office was actually located in another area of Canton that was not within a HUBZone area, specifically 4534 Vliet Street SW, according to the information.
Richardson falsely represented in TAB’s application that the Vliet Street SW location was only a storage area for equipment and was not the company’s principal office location. Richardson and TAB provided supporting information and documents to SBA, including a fake lease, to back up this false claim, according to the information.
Based on Richardson’s false representations, SBA certified that TAB was HUBZone Program eligible and placed TAB on the government’s List of Qualified HUBZone Small Business Concerns, according to the information.
With this designation, Richardson and TAB received more than $34 million in contracts from the U.S. Army Corps of Engineers, the U.S. Coast Guard and the National Park Service between 2005 and 2012, according to the information.
This case is being prosecuted by Assistant U.S. Attorney Rebecca Lutzko following an investigation by the Small Business Administration – Office of Inspector General; Defense Criminal Investigative Service; Department of Homeland Security- Office of Inspector General and the U.S. Army’s Criminal Investigation Division.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An information 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.
Canal Fulton Man Faces Heroin, Cocaine and Firearms ChargesRead the Press Release
A federal grand jury returned a two-count indictment charging Myron A. Nash, age 39, of Canal Fulton, Ohio, with possession with intent to distribute cocaine and heroin, and being a felon in possession of a firearm and ammunition, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that on January 31, 2014, Nash possessed less than 500 grams of cocaine and less than five grams of heroin.
The indictment further alleges that Nash possessed a Kel Tec 9mm handgun, as well as ammunition, having been previously convicted of crimes punishable by imprisonment for terms exceeding one year.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, 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 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.
California-Based Masonry Companies Pay Nearly $1.9 Million to Settle Claims of Misrepresenting Disadvantaged Small Business Status in Connection with Military ContractsRead the Press Release
Five California-based masonry subcontractors and two individuals paid the government nearly $1.9 million to resolve allegations that they violated the False Claims Act by misrepresenting their disadvantaged small business status in connection with military construction contracts, the Department of Justice announced today. The defendants are Frazier Masonry Corp., F-Y Inc., CTI Concrete & Masonry Inc., Masonry Technology Inc., Masonry Works Inc., Russell Frazier and Robert Yowell.
“This settlement demonstrates our continuing vigilance to ensure that those doing business with the military do so legally and honestly and that taxpayer funds are not misused,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “Among the rules that military contractors and subcontractors must follow are those relating to the use and hiring of small businesses.”
The case involved contracts to construct facilities at Marine Corps bases at Camp Lejeune, N.C., and Camp Pendleton, Calif. Under the rules of the Small Business Administration, the contracts required that a certain percentage of the work be performed by disadvantaged small businesses. This contract requirement was intended to benefit small firms owned by women, minorities and other disadvantaged groups.
The government alleged that the defendant masonry subcontractors and their principals misrepresented to the prime contractors that they were small businesses, and that these misrepresentations caused the prime contractors to falsely certify that they had complied with the small business provisions of the contracts in claiming payment. Russell Frazier previously pleaded guilty in related criminal proceedings to causing false statements.
“This settlement demonstrates our commitment to protect taxpayer money and the integrity of the system set up to build military bases for our nation’s military personnel,” said U.S. Attorney for the Eastern District of North Carolina Thomas G. Walker.
“DCIS continues our aggressive investigative efforts, in partnership with other agencies, to ensure the integrity of all defense programs, to include military construction contracts, which ultimately benefit our dedicated Warfighters,” said John Khin, Special Agent in Charge, Southeast Field Office, Defense Criminal Investigative Service.The settlement resolves allegations filed in two lawsuits by Rickey Howard, a former employee of Frazier Masonry Corp., in federal court in Raleigh, N.C. The lawsuits were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The act also allows the government to intervene and take over the action, as it did in this case. Howard will receive $393,383.
The settlement was the result of a coordinated effort by the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the Eastern District of North Carolina, the Defense Criminal Investigative Service, the Naval Criminal Investigative Service, the Navy’s Acquisition Integrity Office, the Naval Facilities Engineering Command (NAVFAC) and the Small Business Administration’s Office of Inspector General and Office of General Counsel.
The cases are captioned United States ex rel. Howard v. Harper Construction Co., et al., Case No. 7:12-CV-215-D (E.D.N.C.) and United States ex rel. Howard v. RQ Construction LLC, et al., Case No. 7:13-CV-48-D (E.D.N.C.). The claims resolved by the settlement are allegations only; there has been no determination of liability.California Man Sentenced to 20 Years in Federal Prison for Methamphetamine Drug ConspiracyRead the Press Release
TULSA, Okla. — Jesus Uzziel Rodriguez, 31, of Hayward, California, was sentenced Tuesday by U.S. District Judge John E. Dowdell to 20 years in federal prison for drug conspiracy and possessing 500 grams or more of methamphetamine with intent to distribute, announced United States Attorney Danny C. Williams Sr. for the Northern District of Oklahoma. A federal jury convicted Rodriguez after a five-day trial.
The charges stemmed from an investigation by the Oklahoma Bureau of Narcotics and Dangerous Drugs Control (OBNDD).
According to court documents, from May to July 2013, Rodriguez, Vincente Chipres Valencia, 34, of East Palo Alto, California, and Francisco Reyes-Sanchez, 34, of Mounds, Oklahoma, arranged for a dealer in California to provide methamphetamine to be sold in Tulsa. The defendants conspired to distribute approximately four (4) pounds of methamphetamine at a value of approximately $50,000. On July 11, 2013, Rodriguez, Valencia, and Reyes-Sanchez did in fact deliver approximately four (4) pounds of methamphetamine during an OBNDD sting operation.
Rodriguez was charged by a federal grand jury on August 7, 2013. Valencia pleaded guilty to the same charges on October 31, 2013, and Reyes-Sanchez pleaded guilty to the charges on November 6, 2013.
The case was prosecuted by Assistant United States Attorney Robert T. Raley.
California Man Charged with Child Exploitation, Traveling to Ohio to Have Sex with A MinorRead the Press Release
Edwin Franco Rolffo-Zavala, 24, of Novato, California, was charged with sexual exploitation of a child, transporting visual depictions of minors engaged in sexually explicit conduct, and travel with intent to engage in illicit sexual conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that from on or about May 13, 2013, through on or about January 13, 2014, Rolffo-Zavala, used, persuaded, induced, enticed and coerced a minor, that is, a 13 year-old girl to engage in sexually explicit conduct, for the purpose of transmitting a live visual depiction of such conduct, and knowing and having reason to know that such visual depiction would be transmitted, using any means or facility of interstate and foreign commerce, and in and affecting interstate and foreign commerce.
The indictment also charges that from on or about January 1, 2011, through on or about January 13, 2014, Rolffo-Zavala knowingly transported, using any means of interstate and foreign commerce and in and affecting interstate and foreign commerce, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct.
The indictment also charges that on or about January 16, 2014, Rolffo-Zavala knowingly traveled in interstate commerce, from the State of California to the State of Ohio, for the purpose of engaging in illicit sexual conduct with a 14-year-old girl.
If convicted, the sentence in this case will be determined by the court after consideration of the federal sentencing guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique 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.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Akron Office of the Federal Bureau of Investigation and the Medina City Police Department.
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.
Brooklyn Woman Pleads Guilty to Identity TheftRead the Press Release
ALBANY, NEW YORK – JAMESE L. WILLIAMS, 29, of Brooklyn, pled guilty today before United States District Judge Mae A. D’Agostino to conspiracy to commit access device fraud, access device fraud, and aggravated identity theft, announced United States Attorney Richard S. Hartunian and the United States Secret Service. WILLIAMS is scheduled to be sentenced on August 6, 2014, in Albany, New York. She faces a two-year mandatory minimum on the aggravated identity theft charge, up to ten years of prison on the access device fraud charge and up to five years of prison on the conspiracy charge. She also faces a fine of up to $250,000 on each charge.
In the plea agreement, WILLIAMS admitted that, from October 2012 through January 2013, she and her co-conspirators used hundreds of counterfeit credit cards bearing stolen account numbers to purchase gift cards at Price Chopper grocery stores throughout New York, Massachusetts, New Hampshire, and Connecticut. WILLIAMS admitted that she should be held accountable for transactions of $548,381.
The case was investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney Jeffrey C. Coffman.
Brian Campbell Sentenced for Money LaunderingRead the Press Release
ROCHESTER, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Brian Campbell, 74, of Rochester, N.Y., who was convicted of conspiring to launder money, was sentenced to one year of home confinement and five years probation by U.S. District Judge Frank P. Geraci.
Assistant U.S. Attorney John J. Field, who handled the case, stated that the defendant worked for Kenneth Griffin, a co-defendant who was convicted in May 2013, at an employment staffing business that was used to commit fraud. The fraud involved creating false invoices and other supporting documents that the defendant then sold to a series of financing companies on a weekly basis for immediate cash. When a financing company realized that it had been sold uncollectible invoices and stopped dealing with Griffin's business, the defendant would change business names and continue the scheme with another financing company.
Griffin and others involved in the conspiracy sought to conceal their ill-gotten gains, which totaled approximately $567,000, by laundering the proceeds of the fraud using anonymous debit cards. These cards were provided to lower-level employees, who were directed to go to ATMs in the Rochester area to withdraw cash and return with the money, which was shared among the co-conspirators. Kenneth Griffin was sentenced to 46 months in prison.
The sentencing is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office, and the Federal Bureau of Investigation.Bonners Ferry Men Indicted for Violent ATM Theft in McCall and ATM Thefts in Boise, Meridian, Utah, Colorado, and WyomingRead the Press Release
BOISE — Nathan Paul Davenport, 34, and Matthew Taber Annable, 39, both formerly of Bonners Ferry, Idaho, were indicted today by a federal grand jury in Boise for multiple bank larcenies, conspiracy, and use of a deadly weapon during a felony offense, U.S. Attorney Wendy J. Olson announced.
The indictment, which supersedes an earlier indictment filed only against Davenport, charges that on January 10, 2014, Davenport and Annable, aiding and abetting each other, broke into and stole cash from an automated teller machine (ATM) located at the Idaho First Bank in McCall, Idaho. The indictment alleges that they possessed, carried, used, and discharged a firearm, specifically a Ruger semiautomatic rifle, in connection with the offense. The rifle was used to shoot at pursuing police officers. The indictment additionally charges both men with individual ATM larcenies committed against Idaho Banking Company in Boise and Meridian on January 5, 2014. The indictment also alleges conspiracy to commit a string of ATM larcenies in December, 2013 and January, 2014, which occurred in Wyoming; Colorado; Utah; Boise and Meridian, Idaho; and finally cumulated with the ATM theft in McCall, Idaho. Forfeiture allegations are also filed for the purpose of forfeiting firearms connected with the crimes and proceeds of the crimes.
“The theft of the McCall ATM and subsequent shootout with local law enforcement officers were violent and dangerous acts,” said Olson. “Where firearms are used to facilitate crimes such as this one and the associated conspiracy, Idaho law enforcement’s strong partnerships and ability to work with agencies in other states allow us to move quickly and 2 decisively. The investigation has been detailed and thorough to allow us to bring these additional charges.”
“The FBI appreciates the outstanding cooperation and professionalism of the Boise Police Department, Ada County Sheriff’s Office, McCall Police Department, Valley County Sheriff’s Office, Idaho State Police, United States Attorney’s Office, and many other law enforcement agencies in Idaho, Utah, Texas, and Wyoming,” said Mary Rook, FBI Special Agent in Charge for Utah, Idaho and Montana. “The joint efforts of these agencies were instrumental in resolving this case and ending a trail of ATM burglaries throughout the west. This case is an excellent example of what can be accomplished through cooperative law enforcement action.”
Davenport and Annable were arrested without incident on January 12, 2014, in Orem, Utah, in connection with a separate ATM robbery in Wyoming. The two men are currently in federal custody in Wyoming.
The charge of bank larceny by use of a dangerous weapon as charged in the Idaho indictment is punishable by up to 25 years in prison, a maximum fine of $250,000, and up to five years of supervised release. The charge of use of a deadly weapon during the commission of a felony offense is punishable by a mandatory minimum of ten years up to life imprisonment, a maximum fine of $250,000, and up to five years supervised release. The charge of bank larceny is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release. The charge of conspiracy to commit bank larceny is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release.
The case is being investigated by the Federal Bureau of Investigation, the Idaho State Police, the Valley County Sheriff’s Office, and the McCall Police Department.
Indictments and complaints are a means of charging a person with criminal activity. They are not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Blackfoot Man Sentenced for Drug DistributionRead the Press Release
POCATELLO – Eldon K. McConnell, 49, of Blackfoot, Idaho, was sentenced today to sixteen months in prison for possession with intent to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Robert J. Bryan also ordered McConnell to serve three years of supervised release following his release from prison. McConnell pleaded guilty to the charge on January 16, 2014.
According to the plea agreement, on November 30, 2011, the defendant was contacted by law enforcement officers at the Ramada Inn, Chubbuck, Idaho. The defendant had, in the hotel room, approximately 3.7 grams of methamphetamine. The defendant possessed the methamphetamine intending to distribute it to another person, and admitted to such in a subsequent interview with officers.
The case was investigated by Idaho State Police, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and Chubbuck Police Department.
Bismarck Man Convicted of Child Pornography ChargeRead the Press Release
BISMARCK– U.S. Attorney Timothy Q. Purdon announced that on April 9, 2014, Garron Gonzalez, 38, Bismarck, N.D., was found guilty by a federal jury in U.S. District Court on a charge of attempted sexual exploitation of minors.
Gonzalez attempted to persuade a 15-year-old person to send him sexually explicit visual depictions using a cell phone. The two had met while playing an online video game.
The charge of attempted sexual exploitation of minors carries a mandatory minimum sentence of 25 years in federal prison up to 50 years in federal prison and a $250,000 fine.
The case was investigated by Homeland Security Investigations, the North Dakota Bureau of Criminal Investigation, the North Dakota State Parole & Probation Office, with the assistance of the Morton County State’s Attorney’s Office.
Sentencing for Gonzalez will be scheduled in three to four months in U.S. District Court in Bismarck, N.D.
Assistant U.S. Attorney Gary Delorme is prosecuting the case.
Belle Fourche Man Indicted for Failing to Update Sexual Offender RegistrationRead the Press Release
United States Attorney Brendan V. Johnson announced that a Belle Fourche, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
John Lee McCleerey, age 61, was indicted on November 19, 2008. He appeared before U.S. Magistrate Judge Veronica L. Duffy on April 4, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years’ imprisonment and/or a $250,000 fine, 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment charges that between July and November 2008, McCleerey failed to update his sexual offender registration as required.
The charge is merely an accusation and McCleerey is presumed innocent until and unless proven guilty.
The investigation was conducted by the U.S. Marshals Service. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
McCleerey was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Beaver Falls Man Sentenced to 10 Years in Prison for Possessing, Distributing Child PornographyRead the Press Release
PITTSBURGH - A Beaver Falls resident has been sentenced in federal court to 124 months imprisonment, to be followed by a lifetime of supervised release on his conviction of possession and distribution of child pornography, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Darren Johnson, 44.
According to information presented to the court, on or about March 22, 2013, and March 28, 2013, Darren Johnson, knowingly distributed visual depictions of a minor, using any means and facility of interstate and foreign commerce, including by computer, and the production of such visual depictions involved the use of a minor engaging in sexually explicit conduct, and the visual depictions depicts such conduct; and on April 26, 2013, Johnson knowingly possessed visual depictions, namely, visual images in individuals computer files, the production of which involved the use of minors engaging in sexually explicit conduct. Johnson possessed approximately 300,000 images of child pornography.
Assistant United States Attorney Amy L. Johnston prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Pennsylvania Office of Attorney General and the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Johnson.
Baltimore Man Pleads Guilty to Identity Theft SchemeRead the Press Release
Used Stolen Identity Information to Purchase Motorcycles and Other Goods
With Losses to the Victims of at Least $120,000Baltimore, Maryland – Tavares Davon Miller, a/k/a “Tavon Jackson,” “Tavon Miller,” and “Ooh,” age 30, of Baltimore, Maryland pleaded guilty today to conspiracy to commit wire fraud and aggravated identity theft, in connection with a scheme to use the personal identifying information of others to purchase motorcycles, electronic equipment, jewelry and other goods.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Anne Arundel County Police Chief Kevin Davis; Charles County Sheriff Rex Coffey; Howard County Police Chief William McMahon; Chief J. Thomas Manger of the Montgomery County Police Department; and Chief Michael Phillips of the Fruitland Police Department.
According to his plea agreement, from September 25 through November 1, 2012, Miller acquired the identifying information of more than 10 victims, and used that information to fabricate driver’s licenses and credit cards in the names of those victims, but using the photograph of a co-conspirator (where applicable). Miller and the co-conspirator traveled to motorcycle dealerships and retail stores in Maryland, Delaware, Virginia and Pennsylvania, and used the fraudulent identification documents to purchase merchandise, including electronic equipment, jewelry and clothing, or apply for lines of credit at those stores. Miller and the co-conspirator then loaded the motorcycles and merchandise into their vehicle and returned to Maryland. Miller advertised the motorcycles and merchandise for sale over the internet, retaining the proceeds of the sales and paid the co-conspirator a fee for her services.As part of his plea agreement, Miller will be required to pay restitution in the full amount of the victims’ losses, which is at least $120,000.
Miller faces a maximum sentence of 20 years in prison for the wire fraud conspiracy and two years in prison, consecutive to any other sentence, for aggravated identity theft. U.S. District Judge Ellen L. Hollander scheduled sentencing for June 27, 2014 at 12:00 p.m.
United States Attorney Rod J. Rosenstein praised the U.S. Secret Service, Maryland State Police, the Anne Arundel, Howard and Montgomery County Police Departments, Charles County Sheriff’s Office and Fruitland Police Department for their work in the investigation. Mr. Rosenstein also recognized the following agencies for their assistance in the investigation: the Delaware State Police; Leesburg (Virginia) Police Department and Stafford County (Virginia) Sheriff’s Department; and the Lancaster (Pennsylvania) Police Department and Springettsbury Township (Pennsylvania) Police Department. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the case.Avon Man Charged with Bank Robberies and Calling in Bomb Threat to High SchoolRead the Press Release
A federal grand jury returned a three-count indictment charging Brett L. Benson, 40, of Avon, Ohio, with two counts of bank robbery and one count of making a bomb threat, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Benson robbed two banks in Elyria, Ohio: Talmer Bank & Trust on March 19, 2014 and Dollar Bank on March 24, 2014.
The indictment further alleges that Benson called in a bomb threat to the Elyria High School on the same date as the second bank robbery.
Assistant United States Attorneys Matthew B. Kall and Matthew J. Cronin are prosecuting the case following an investigation by the Federal Bureau of Investigation, the Elyria Police Department and other local law enforcement agencies.
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.
Albany Man Arrested for Impersonating Federal OfficerRead the Press Release
ALBANY, NEW YORK – SAMUEL DAVID KRAMER, 53, of Albany, New York was arrested today and charged with impersonating a Deputy United States Marshal announced United States Attorney Richard S. Hartunian, Ron Gardella, Special Agent-in-Charge, United States Department of Justice Office of the Inspector General, New York Field Office, and Major Steven James, Troop G Commander, New York State Police. Following an initial appearance before United States Magistrate Judge Randolph F. Treece, Kramer was released. If convicted, Kramer faces up to 3 years in prison.
The investigation is being conducted by agents with the Department of Justice Office of the Inspector General and the New York State Police. Anyone with information relevant to this investigation is asked to contact the New York State Police, Troop G Headquarters at (518) 783- 3211.
The charges are merely accusations, and the defendant is presumed innocent until and unless proven guilty.
Airplane Repair Business Owner Convicted in Scheme to Falsify InspectionsRead the Press Release
PHILADELPHIA – A federal jury, today, found Jay Stout, 55, formerly of Elizabethtown, PA, and his company, Flying Tigers, Inc., guilty of conspiracy, fraud involving aircraft parts, mail fraud, and obstruction of justice. A sentencing hearing has not yet been scheduled. Stout was president of Flying Tigers, a former airplane mechanical repair business located in Marietta, PA. He was indicted with his son Joel, 33, also of Elizabethtown. Joel Stout previously pleaded guilty and will be sentenced May 6, 2014.
Between October 2003 and January 2010, Stout conspired with his son and others to commit fraud in aircraft parts, mail fraud, and wire fraud, by charging customers for the annual inspections of their aircraft, despite the absence of a certified mechanic with inspection authority, a certification given by the FAA. In order to conceal the absence of an authorized certification, Stout and Flying Tigers prepared fraudulent certifications of annual inspections for the airplane and engine log books or, on other occasions, failed to create the necessary certification at all. Some customers who brought their airplanes into Flying Tigers for annual inspections were charged for the inspection, but Flying Tigers never provided a signed certification in the airplane or engine log books recording the annual inspection. By this method, the absence of the valid signature of a certified mechanic was not evident to the Flying Tigers customers. Other annual inspections were certified in the log books by Jay Stout, even though Jay Stout was no longer authorized to certify annual inspections. In other annual inspections, the signatures of certified mechanics with inspection authority were forged in the log books. Such was the case with one former Flying Tigers employee who left Flying Tigers in late 2006/early 2007, but whose forged or fraudulent signatures appear on certified annual inspections, both before the period that the former employee had his certification, and through October 2007, long after he stopped working for Flying Tigers. In addition, the fraudulent signature of Gilbert Stout, Jay Stout’s father, appeared on annual inspections many years after Gilbert Stout stopped working on aircraft, and the forged and fraudulent signature of Joel Stout, a Flying Tiger, Inc. employee and Jay Stout’s son, appeared on annual inspections that Joel Stout did not perform. Many airframe and engine log books, containing these and other entries, were shown to the jury during the trial.
When Jay Stout learned, in late 2007, that federal authorities were investigating the log book entries of Flying Tigers customers, Jay Stout intentionally altered log books in an effort to further conceal his fraud. He faces a statutory maximum sentence of 90 years in prison, possible restitution to his victims, and three years of supervised release.
The case was investigated by the United States Department of Transportation Office of Inspector General and is being prosecuted by Assistant United States Attorney Arlene Fisk.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-85252014 National Crime Victims' Rights WeekRead the Press Release
KANSAS CITY, Mo. – Gene Porter, Deputy United States Attorney for the Western District of Missouri, presented the Crystal Kipper & Ali Kemp Memorial Award today to Kansas City Police Detective Maggie McGuire for her work on behalf of protecting children, most notably her investigation of convicted Roman Catholic priest Shawn Ratigan and Bishop Robert Finn.
Today’s award ceremony was part of an annual event hosted by the U.S. Attorney’s Office and VictimNet, a coalition of victim service providers and others committed to meeting the needs of crime victims in Jackson County, in conjunction with the observance of National Crime Victims’ Rights Week. This year’s theme, “30 Years: Restoring the Balance of Justice,” honors the extraordinary achievements we have made on behalf of crime victims since the passage of the Victims of Crime Act in 1984.
Porter presented the Crystal Kipper & Ali Kemp Memorial Award to McGuire in place of U.S. Attorney Tammy Dickinson, who is out of the country. McGuire is a long-time detective with the Kansas City, Mo., Police Department and a former task force officer on the FBI Cyber Crimes Task Force.
Porter praised McGuire’s “untiring and relentless work” in the investigation of Ratigan and Finn.
Ratigan was sentenced to 50 years in federal prison without parole after pleading guilty to four counts of producing child pornography and one count of attempting to produce child pornography over a period of nearly six years. Each of those five counts involved the sexual exploitation of a separate child victim, ranging in age from two years old to 12 years old at the time of the offenses.
Finn was found guilty in state court of failing to inform police about the child pornography found on Ratigan's computer and sentenced to two years of probation. Finn is the first U.S. bishop to be criminally charged for his role as a supervisor of priests. The case is also the first criminal case against a sitting bishop in the child sex abuse scandal in the Catholic Church.
“But for (McGuire’s) work,” Porter said, “multiple victims might not have been identified, a predatory priest might not have been removed and sentenced to the functional equivalent of life in prison, and Robert Finn never would have become the first cleric of his rank in the United States to plead guilty and sustain a criminal conviction for failure to report suspected child abuse.”
McGuire overcame significant obstacles to investigate a unique case, said Porter. “When it becomes clear at the outset of the investigation that the entire hierarchy of a centuries-old religious denomination does not seem willing to recognize that the children depicted in the images are, in fact, victims of child exploitation, nor seem very willing to help establish the identity of the children depicted, and instead are spending millions of dollars on legal counsel in an ill-advised effort to avoid having the priest and bishop accept legal responsibility for their crimes, then you know, as an investigator, that your work is cut out for you.”
Porter noted that McGuire has investigated numerous child exploitation cases that have been successfully prosecuted by the U.S. Attorney’s Office. “She has insured that many dangerous sexual predators were taken off the streets for as long as possible,” Porter said.
“No one could have been better prepared to work on the cases against Father Shawn Ratigan and Bishop Robert Finn,” Porter said of McGuire. “From the very first day, years ago, that she was assigned to work on child exploitation cases, this detective was a pit bull in tracking down and catching child predators. Her dedication and persistence over the years identified and ultimately protected countless child victims in the Western District of Missouri who were portrayed in child pornography images that had been distributed all over the world.”
McGuire’s work on the Ratigan and Finn cases, Porter said, will continue to have a significant impact beyond the courtroom.
“The impetus for the additional programs and victims’ advocates put into place in the Diocese as a result of the Ratigan/Finn debacle, and the additional education of the community on the dangers of child exploitation — especially from the production of child pornography — all owe their origin to this detective’s work, and stand as a more positive legacy and a promise that children in our District will be protected for years to come.
The Crystal Kipper & Ali Kemp Memorial Award is presented by the U.S. Attorney’s Office each year during the local observance of National Crime Victims’ Rights Week to recognize the outstanding work of an individual or organization in protecting children from exploitation. The award was presented to McGuire in memory of Crystal Kipper and Ali Kemp, two young women who were both fatal victims of tragic crimes. Anna Rhea, Crystal Kipper’s mother, and Roger Kemp, Ali Kemp’s father, participated in today’s presentation.
Today’s event at the Jackson County Courthouse also featured comments from Jackson County Prosecutor Jean Peters Baker and other victim advocates. The event showcased various local victim service providers and a victims’ memorial walk led by the Kansas City Mounted Patrol.
The Crime Victims’ Rights Act (CVRA), enacted in 2004, grants victims in federal criminal proceedings certain enforceable rights, including the right to be reasonably heard at public court proceedings and to receive full and timely restitution as provided by law. The U.S. Attorney’s Office has a dedicated Victim/Witness Unit that serves federal crime victims across the district’s 66 counties. Members of this unit notify victims of significant case events through the Department of Justice’s Victim Notification System (VNS). Such notice enables victims to participate in court proceedings and make their voices heard. Victim/Witness personnel accompany victims to court hearings and trials to ensure that victim participation in court proceedings is meaningful and to answer questions and explain the federal judicial process.
In addition to notification and court accompaniment, the U.S. Attorney’s Office Victim/Witness Unit provides essential services to victims, such as making referrals for counseling, securing temporary housing, assisting with access to victim compensation funds, and accompanying victims to court to provide support and guidance during the proceedings. These services provide tools victims need to reshape their futures.
Further information about National Crime Victims’ Rights Week is available at http://ovc.ncjrs.gov/ncvrw/.
The Crystal Kipper & Ali Kemp Memorial Award
Crystal Kipper was an 18-year-old Gladstone, Mo., resident who was murdered after her car broke down on Interstate 29, just north of Platte City, on Feb. 24, 1997. Ali Kemp was a 19-year-old Blue Valley North High School graduate who was murdered on June 18, 2002, while she worked at the Foxborough neighborhood swimming pool in Leawood, Kan.
Tuesday 8 April 2014
Worcester Tax Preparer Charged with Falsifying ReturnsRead the Press Release
BOSTON – A Worcester tax return preparer was charged yesterday with preparing false tax returns.
Nydia Elicier, 55, was indicted on seven counts of aiding and assisting in the preparation of false tax returns. The indictment alleges that Elicier prepared individual federal tax returns for clients at Cox Elicier Tax, a Worcester business that she operated with her daughter, Jenniffer Cox Elicier. The allegations are that Nydia Elicier inserted false information into her clients’ Form 1040 returns, including false adjustments and Schedule A deductions such as medical and dental expenses, gifts to charity, educator expenses, and other unreimbursed employee expenses. In so doing, Elicier generated illegal refunds for her clients. In January 2014, Jenniffer Cox Elicier pleaded guilty to the offense.
If convicted, Elicier faces a statutory maximum penalty of three years in prison, one year of supervised release and a $100,000 fine.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement. The case is being prosecuted by Lori J. Holik, Chief of Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney and SEC Act Cooperatively to Shut Down Alleged Investment FraudRead 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 arrest of Joseph Signore, 49, of Palm Beach Gardens, and Paul Lewis Schumack, II, 56, of Coconut Creek, in connection with an alleged $70,000,000 investment fraud concerning the sales and marketing of a “Virtual Concierge” machine by a Jupiter-based company, JCS Enterprises, Inc., and T.B.T.I., Inc. formerly of Highland Beach. The Securities and Exchange Commission (SEC) sought and obtained a temporary restraining order freezing the accounts and assets of the companies in a separately-filed civil action.
According to the criminal complaint, Signore and Schumack allegedly collected approximately $70,000,000 from investors nationwide with the representation that for an approximate investment of $3,500 the investor would be guaranteed a monthly payment of $300 for three years, and their payments would be based on advertising revenue earned from ads sold on “Virtual Concierge” machines (VCMs). The criminal complaint alleges that detailed financial analysis revealed that little advertising revenue was actually received by JCS Enterprises, and that in fact old investors were paid with new investors’ money which is the hallmark of a Ponzi scheme. The criminal complaint alleged that TBTI served as the sales arm for JCS Enterprises.
Signore and Schumack each have been charged with conspiracy to commit mail and wire fraud, five counts of mail fraud each, and six counts of wire fraud. Each of those counts carries a maximum period of twenty years in prison, three years of supervised release, a fine of up to $250,000 and mandatory restitution.
Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorneys Stephen Carlton and Ellen Cohen.
A criminal complaint is only an accusation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
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.