Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Friday 4 April 2014
Former Vice President of Government Contracting Company<br /> Pleads Guilty to Conspiracy to Commit BriberyRead the Press Release
A former vice president of a Chesapeake, Va., government contracting company pleaded guilty today to conspiracy to pay bribes to public officials in exchange for favorable treatment in connection with U.S. government contract work.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, Acting U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office, Acting Executive Assistant Director Charles T. May Jr. of the Naval Criminal Investigative Service (NCIS) Atlantic Operations and Special Agent in Charge Royce E. Curtin of the FBI’s Norfolk Field Office made the announcement after the plea was accepted by U.S. Magistrate Judge Douglas E. Miller in the Eastern District of Virginia.
Adam C. White, 40, was charged by criminal information on March 28, 2014, with one count of conspiracy to bribe public officials. White faces a maximum penalty of five years when he is sentenced on July 11, 2014.
According to a statement of facts filed with the plea agreement, White worked for a government contracting company that was created to support the U.S. Navy’s Military Sealift Command (MSC) on various telecommunication projects. For several years, White and his business partners paid bribes to MSC public officials in exchange for favorable treatment in awarding MSC-related government contract work.
White admitted that he contributed a portion of his paycheck to the bribe payments by regularly withdrawing approximately $1,000 in cash from his personal bank account after receiving his bi-weekly paycheck and providing it to his business partners. Together, White and his business partners paid approximately $3,000 to $4,000 a month in cash bribes to two MSC public officials. In his statement of facts, White also admits that he was aware his business partners provided other things of value, including flat-screen televisions, to influence the official actions of a MSC public official.
As a condition of the plea agreement, White has agreed to forfeit $57,000 as the proceeds of the offense.
In December 2013, White resigned from his position as vice president of the government contracting company.
Prior to entry of this guilty plea, four other individuals pleaded guilty in connection with the same bribery scheme. On Feb. 12, 2014, Kenny E. Toy, the former afloat programs manager for the MSC N6 Command, Control, Communication and Computer Systems Directorate, pleaded guilty to bribery and admitted receiving more than $100,000 in cash bribes. On Feb. 18, 2014, Dwayne A. Hardman, one of White’s business partners, pleaded guilty to bribery and admitted to providing more than $140,000 in cash bribes to Toy and another MSC public official. On Feb. 19, 2014, Michael P. McPhail pleaded guilty to conspiracy to commit bribery and agreed to forfeit $57,000. On March 5, 2014, Roderic J. Smith, another of White’s business partners, pleaded guilty to conspiracy and agreed to forfeit $175,000.
The case was investigated by the FBI, DCIS and NCIS. The case is being prosecuted by Trial Attorney Emily Rae Woods of the Criminal Division’s Public Integrity Section and Assistant United States Attorney Stephen W. Haynie of the U.S. Attorney’s Office for the Eastern District of Virginia.Former Vice President of Government Contracting Company Pleads Guilty to Conspiracy to Commit BriberyRead the Press Release
NORFOLK, Va. – Adam C. White, 40, a former vice president of a Chesapeake, Va., government contracting company pleaded guilty today to conspiracy to pay bribes to public officials in exchange for favorable treatment in connection with U.S. government contract work.
Acting U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office, Acting Executive Assistant Director Charles T. May Jr. of the Naval Criminal Investigative Service (NCIS) Atlantic Operations and Special Agent in Charge Royce E. Curtin of the FBI’s Norfolk Field Office made the announcement after the plea was accepted by U.S. Magistrate Judge Douglas E. Miller in the Eastern District of Virginia.
White was charged by criminal information on March 28, 2014, with one count of conspiracy to bribe public officials. White faces a maximum penalty of five years when he is sentenced on July 11, 2014.
According to a statement of facts filed with the plea agreement, White worked for a government contracting company that was created to support the U.S. Navy’s Military Sealift Command (MSC) on various telecommunication projects. For several years, White and his business partners paid bribes to MSC public officials in exchange for favorable treatment in awarding MSC-related government contract work.
White admitted that he contributed a portion of his paycheck to the bribe payments by regularly withdrawing approximately $1,000 in cash from his personal bank account after receiving his bi-weekly paycheck and providing it to his business partners. Together, White and his business partners paid approximately $3,000 to $4,000 a month in cash bribes to two MSC public officials. White also admits that he was aware his business partners provided other things of value, including flat-screen televisions, to influence the official actions of a MSC public official.As a condition of the plea agreement, White has agreed to forfeit $57,000 as the proceeds of the offense.
The case was investigated by the FBI, DCIS, and NCIS. The case is being prosecuted by Trial Attorney Emily Rae Woods of the Criminal Division’s Public Integrity Section and Assistant United States Attorney Stephen W. Haynie of the U.S. Attorney’s Office for the Eastern District of Virginia.
In December 2013, White resigned from his position as vice president of the government contracting company.
Prior to entry of this guilty plea, four other individuals pleaded guilty in connection with the same bribery scheme. On Feb. 12, 2014, Kenny E. Toy, the former afloat programs manager for the MSC N6 Command, Control, Communication and Computer Systems Directorate, pleaded guilty to bribery and admitted receiving more than $100,000 in cash bribes. On Feb. 18, 2014, Dwayne A. Hardman, one of White’s business partners, pleaded guilty to bribery and admitted to providing more than $140,000 in cash bribes to Toy and another MSC public official. On Feb. 19, 2014, Michael P. McPhail pleaded guilty to conspiracy to commit bribery and agreed to forfeit $57,000. On March 5, 2014, Roderic J. Smith, another of White’s business partners, pleaded guilty to conspiracy and agreed to forfeit $175,000.Former U.S. Railroad Retirement Board Representative Sentenced in Manhattan Federal Court to Five Years in Prison for Her Role in LIRR Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that MARIE BARAN, a former employee of the United States Railroad Retirement Board (“RRB”), was sentenced today in Manhattan federal court to five years in prison for her role in the massive fraud scheme in which Long Island Railroad (“LIRR”) workers claimed to be disabled upon early retirement so that they could receive disability benefits to which they were not entitled. Between approximately 2007 and 2011, BARAN completed fraudulent disability applications on behalf of at least 188 LIRR clients in exchange for cash payments. Following a three-week jury trial in August 2013, BARAN was convicted of two counts of conspiracy to commit mail fraud, wire fraud, and health care fraud, two counts of conspiracy to defraud the RRB, two counts of health care fraud, two counts of mail fraud, and two counts of wire fraud. She was sentenced today before U.S. District Judge Victor Marrero.
Manhattan U.S. Attorney Preet Bharara stated: “Marie Baran manipulated a safety net for the disabled and took advantage of the federal agency that employed her for decades. In exchange for cash, she helped nearly 200 LIRR employees obtain more than $75 million based on lies. Today’s sentence ensures that she will now pay for her crimes.”
According to the Complaint, the Superseding Indictments, the evidence at trial, and statements made in court:
The RRB is an independent U.S. agency that administers benefit programs, including disability benefits, for the nation’s railroad workers and their families. A unique LIRR contract allowed employees to retire at the relatively young age of 50 – the age of eligibility has since changed to 55 – if they had been employed by the LIRR for at least 20 years. Eligible employees are entitled to receive an LIRR pension, which is a portion of the full retirement payment for which they are eligible at 65. In addition, at full retirement age (between age 60 and age 65 depending on years of service) they are eligible to receive an RRB retirement pension. For LIRR workers who retired at 50 with only an LIRR pension, they would receive less than their prior salary and substantially lower pension payments than those to which they would be entitled at full retirement age. However, LIRR employees who retired and claimed disability could receive a disability payment from the RRB on top of their LIRR pension, regardless of age. A retiree’s LIRR pension, in combination with RRB disability payments, can be roughly equivalent to the base salary earned during his or her career.
Hundreds of LIRR employees have allegedly exploited the overlap between the LIRR pension and the RRB disability program by pre-planning the date on which they would falsely declare themselves disabled so that it would coincide with their projected retirement date. These false statements, made under penalty of prosecution in disability applications, allowed LIRR employees to retire as early as age 50 with an LIRR pension, supplemented by the fraudulently obtained RRB disability annuity. From 1995 through 2011, more than 75% of LIRR employees stopped working and began receiving RRB disability benefits, whereas during this same period, only 25% of retiring Metro-North employees stopped working and began receiving RRB disability benefits.
BARAN is a former employee of the RRB who, following her retirement from the agency in 2006, began accepting cash payments from LIRR workers to complete fraudulent disability applications on their behalf. Between approximately 2007 and 2011, BARAN helped at least 188 LIRR employees obtain disability benefits to which they were not entitled. In exchange for payments of over $1000 per employee, BARAN completed fraudulent disability applications on the employees’ behalf, fabricating claims of serious physical suffering and decline, and grossly exaggerating the physical demands of the employees’ jobs. As a result of this fraud, BARAN’s LIRR customers have received approximately $30 million in RRB disability benefit payments, and the intended losses from her fraud amount to over $77 million.
In addition to her prison term, BARAN, 66, of East Meadow, New York, was also sentenced to three years of supervised release. She was also ordered to pay approximately $31 million in restitution, to forfeit approximately $31 million, and to pay a $1000 special assessment.
Thirty-three people have been charged in connection with the LIRR disability fraud scheme, 28 of whom have pled guilty and five of whom were convicted after trial.
Mr. Bharara praised the RRB Office of Inspector General, the Federal Bureau of Investigation, and the Metropolitan Transit Authority - Office of Inspector General for their outstanding work in the investigation, which he noted is ongoing. He also acknowledged the previous investigation conducted by the New York State Attorney General’s Office into these pension fraud issues.
The Office’s Complex Frauds Unit is handling the case. Assistant U.S. Attorneys Justin Weddle, Daniel Tehrani, and Nicole Friedlander are in charge of the prosecution.
Former Raleigh Identity Thief Sent to Prison for 54 Months for Role in Expansive Credit Card SchemeRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that yesterday afternoon in federal court United States District Judge Louise W. Flanagan sentenced MAMADOU SALIEU BARRIE, 34, to serve a total of 54 months in prison, followed by 3 years of supervised release, on charges of Aggravated Identity Theft, in violation of Title 18, United States Code, Section 1028A, and Possession of Fifteen or More Unauthorized Access Devices, in violation of Title 18, United States Code, Section 1029(a)(3). BARRIE was also ordered to make restitution to victims.
According to the Indictment and information provided to the Court at sentencing, BARRIE was a participant in a wide-ranging and ongoing credit card and cigarette trafficking scheme. The purpose of the scheme is to use stolen credit card account information to purchase large quantities of cigarettes in North Carolina which are resold on the black market in New York and other states. To carry out the scheme, participants acquire stolen credit card data on the internet and other locations, and encode the stolen data onto the magnetic strip of what appear to be legitimate gift or credit cards. Managers in the scheme then distribute the cards to “runners” who travel to various gas stations, convenience stores, and grocery stores located around the state where they purchase dozens of cartons of cigarettes at a time using the counterfeit gift and credit cards. The runners return the cigarettes to the managers in the scheme, who pay the runners a kickback and supply them with more counterfeit cards. The managers periodically make trips to New York where they sell the cigarettes on the black market for cash.
On April 30, 2011, BARRIE was arrested on state charges after a search of his Raleigh apartment turned up 92 fraudulently re-encoded gift cards and 106 cartons of cigarettes. Several months later, on January 3, 2012, BARRIE was arrested again during a traffic stop, at which time he was found in possession of 33 gift cards that had been re-encoded with stolen credit card data. The investigation also uncovered that BARRIE caused another person to rent a storage unit in her name. A search of that Raleigh storage unit uncovered a magnetic card encoding device, 32 cartons of cigarettes, and another 20 re-encoded credit cards.
During questioning by law enforcement, BARRIE admitted to receiving counterfeit cards and storing cigarettes for others involved in the scheme. He further admitted to renting the storage unit containing the card encoding device in connection with the scheme.
BARRIE was indicted by a federal grand jury sitting in the Eastern District of North Carolina on January 3, 2013. On August 15, 2013, BARRIE pled guilty to Counts 1 and 3 of the Indictment, which charged him with Aggravated Identity Theft, and Possession of Fifteen or More Unauthorized Access Devices.
At the sentencing hearing, over BARRIE’s objections, Judge Flanagan adopted findings by the United States Probation Office that 92 individuals and 18 banks were victimized as a result of BARRIE’s conduct.
The investigation of the ongoing scheme described above continues. Anyone with knowledge of the scheme should contact the United States Secret Service in Raleigh at (919) 855-1052.
Investigation of BARRIE’s case was conducted by the United States Secret Service, with the assistance of the Raleigh Police Department, the New Bern Police Department, and the Kinston Police Department. Assistant United States Attorney William M. Gilmore represented the United States.
Former Marion Resident Sentenced to over 12 Years for Attempting to Entice MinorRead the Press Release
A man who attempted to entice a minor to engage in sexual activity was sentenced April 3, 2014, to over twelve years in federal prison.
Michael Glawe, age 31, formerly of Marion, Iowa, received the sentence after a December 16, 2013, guilty plea to one count of attempted enticement of a minor. At the guilty plea hearing, Glawe admitted that, between 2010 and 2011, he attempted to entice an undercover officer who was posing as a minor to meet for the purpose of unlawful sex with a minor.
Glawe was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Glawe was sentenced to 151 months’ imprisonment. A special assessment of $100 was imposed, and Glawe must also serve a ten-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, the Marion Police Department, and the Clinton County Sheriff’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 13-79.
Former Marion Investment Broker Sentenced to More Than Nine Years for Fraud, Money Laundering, and Tax EvasionRead the Press Release
Judge calls Randy Beltramea an "Unrepentant Flim Flam Artist"
A former investment broker was sentenced today, to more than nine years in federal prison.
Randy Beltramea, age 49, from Marion, Iowa, received the prison term after a guilty plea to making false statements to banks, defrauding investors, and evading taxes.
In a plea agreement, Beltramea admitted that in 2009 and 2010, he devised a scheme to defraud former investors by soliciting money from them under false pretenses. In particular, Beltramea admitted telling former investors that their money was to be invested in Subway sandwich shop restaurants, when he actually intended to, and did, use their money in his own real estate investment and for his own personal expenses. In connection with soliciting money from one of the investors, Beltramea provided the investor with a promissory note on which he forged the signature of another person who was involved in buying a Subway restaurant. In fact, that other person did not give Beltramea permission to use or sign his name to the promissory note. Beltramea also admitted that he moved some of the proceeds from the fraud into a bank account under his mother’s name for the purpose of trying to hide the source of the money and in an effort to evade taxes. The IRS had previously imposed a tax lien in excess of $320,000 against Beltramea because he had not filed tax returns or paid taxes since 2001. Finally, Beltramea admitted that he obtained loans and loan extensions from two banks by providing them with false financial statements and with tax returns he falsely represented had been filed with the IRS.
Beltramea was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Noting Beltramea was an “unrepentant flim flam artist,” Chief Judge Reade sentenced to 111 months’ imprisonment. He was also ordered to make $376,488.27 in restitution to his victims. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Beltramea is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys C.J. Williams and Jacob Schunk and investigated by the Internal Revenue Service.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-20-LRR.
Former Grand Rapids Counselor and Foster Parent Sentenced to 30 Years in Prison for Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN – Jeffrey Victor Marchione, 48, of Grand Rapids, was sentenced to 30 years in federal prison after pleading guilty to distributing and possessing over 44,000 images and videos of child pornography, U.S. Attorney Patrick Miles announced today. Marchione was a licensed counselor and mentor to numerous adolescent boys, as well as adoptive parent, foreign host parent, and foster parent to 29 children. He also pled guilty in the 17th Circuit Court, State of Michigan, to Criminal Sexual Conduct, Third Degree (Person 13-15) for having oral sex with a teenage boy. He faces sentencing on the state charge later this month.
In delivering the sentence, U.S. District Judge Robert J. Jonker stated, “In my experience, this has got to be the largest collection of child pornography I have seen in a single case.” Referring to allegations by several young men that they were molested by Marchione over the past 22 years, Judge Jonker continued, “This is a very serious underlying set of conduct and violations of the law.” The prison sentence will be followed by lifetime supervised release.
U.S. Attorney Miles commented: “People with a sexual interest in children who put themselves in positions of authority and mentorship over youth exploit the trust of everyone in our community. People like Marchione who prey on children for sexual gratification and who supply child pornography to others will be prosecuted to the fullest extent of the law.”In January 2012, two different undercover agents downloaded child pornography from Marchione through an online file-sharing program. Marchione told one of the undercover agents in a chat session that he was interested in 10-14 year-old boys and that he had sexual contact with boys in the past. In August 2012, the FBI executed a search warrant at Marchione’s home and seized computers and external hard drives containing over 44,000 images and videos of child pornography. The investigation uncovered an online chat session in which Marchione instructed another person to become an activity leader or tutor in his community to find a child to molest. He sent 150 pages of instructions on how to find and molest a child without the child telling anyone and instructing readers to find a vulnerable child who needs someone to trust.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney's Office, county prosecutor’s offices, the Internet Crimes Against Children task force (ICAC), and federal, state, and local law enforcement work closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood also work to educate local communities about the dangers of online child exploitation and to teach children how to protect themselves. For more information about project, please visit www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement.
The FBI investigated the case. Assistant U.S. Attorney Tessa K. Hessmiller prosecuted it.
END
Florissant Man Convicted of Federal Drug Conspiracy ChargesRead the Press Release
St. Louis, MO – TORRANCE COTTON was convicted late Thursday of charges involving a conspiracy to distribute large amounts of cocaine in the St. Louis area.
Testimony at trial revealed that beginning in late summer 2012, Torrance L. Cotton began supplying cocaine to co-defendant David Frazier, who in turn supplied it to co-defendant Jeremy Poe. According to the testimony, the exchanges of drugs and money took place at a business located on South Broadway in St. Louis where both Torrance Cotton and David Frazier were employees. On January 11, 2013, co-defendant Jeremy Poe was arrested after agreeing to sell a kilogram of cocaine to a government informant. Subsequent search warrants at addresses associated with Jeremy Poe yielded an additional 1.5 kilograms of cocaine, along with a blender, scale, cutting agent and a press. On January 18, 2013, agents seized a kilogram of cocaine from co-defendant David Frazier’s kitchen. Torrance Cotton’s fingerprints were later located on the packaging of that kilogram of cocaine.
Cotton, Florissant, was convicted after a four-day trial before United States District Judge John A. Ross. Sentencing has been set for June 2014.
Ten co-defendants have entered guilty pleas to related charges, have been sentenced or are awaiting sentencing.
Cotton now faces a penalty range of ten years to life in prison. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Drug Enforcement Administration.First Ever Extradition on Antitrust ChargeRead the Press Release
Romano Pisciotti, an Italian national, was extradited from Germany on a charge of participating in a conspiracy to suppress and eliminate competition by rigging bids, fixing prices and allocating market shares for sales of marine hose sold in the United States and elsewhere, the Department of Justice announced today. This marks the first successfully litigated extradition on an antitrust charge.
Pisciotti, a former executive with Parker ITR Srl, a marine hose manufacturer headquartered in Veniano, Italy, was arrested in Germany on June 17, 2013. He arrived in the Southern District of Florida, in Miami, yesterday and is scheduled to make his initial appearance today in the U.S. District Court for the Southern District of Florida in Ft. Lauderdale, at 11:00 a.m. EDT.“This first of its kind extradition on an antitrust charge allows the department to bring an alleged price fixer to the United States to face charges of participating in a worldwide conspiracy,” said Assistant Attorney General Bill Baer in charge of the Department of Justice’s Antitrust Division. “This marks a significant step forward in our ongoing efforts to work with our international antitrust colleagues to ensure that those who seek to subvert U.S. law are brought to justice.”
Marine hose is a flexible rubber hose used to transfer oil between tankers and storage facilities. During the conspiracy, the cartel affected prices for hundreds of millions of dollars in sales of marine hose and related products sold worldwide.
According to a one-count felony indictment filed under seal on Aug. 26, 2010, and ordered unsealed on Aug. 5, 2013, in U.S. District Court in the Southern District of Florida, Pisciotti carried out the conspiracy by agreeing during meetings, conversations and communications to allocate shares of the marine hose market among the conspirators; use a price list for marine hose in order to implement the conspiracy; and not compete for customers with other marine hose sellers either by not submitting prices or bids or by submitting intentionally high prices or bids, all in accordance with the agreements reached among the conspiring companies. As part of the conspiracy, Pisciotti and his conspirators provided information received from customers in the United States and elsewhere about upcoming marine hose jobs to a co-conspirator who served as the coordinator of the conspiracy. That coordinator acted as a clearinghouse for bidding information that was shared among the conspirators, and was paid by the manufacturers for coordinating the conspiracy. The department said the conspiracy began at least as early as 1999 and continued until at least May 2007. Pisciotti was charged with joining and participating in the conspiracy from at least as early as 1999 until at least November 2006.
Pisciotti is charged with violating the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
As a result of the department’s ongoing marine hose investigation, five companies, including Parker ITR; Bridgestone Corp. of Japan; Manuli SPa of Italy’s Florida subsidiary; Trelleborg of France; and Dunlop Marine and Oil Ltd, of the United Kingdom, and nine individuals have pleaded guilty.
The investigation is being conducted by the Antitrust Division’s Washington Criminal I Section, the Defense Criminal Investigative Service (DCIS) of the Department of Defense’s Office of Inspector General, the U.S. Navy Criminal Investigative Service and the Federal Bureau of Investigation. The U.S. Marshals Service and other law enforcement agencies from multiple foreign jurisdictions are also investigating or assisting in the ongoing matter. The Criminal Division’s Office of International Affairs provided assistance.
Anyone with information concerning bid rigging or other anticompetitive conduct in the marine products industry is urged to call the Antitrust Division’s Washington Criminal I Section at 202-307-6694.
Financial Services Firm President Sentenced to 3 Years in Prison for $2.9M Fraud SchemeRead the Press Release
PITTSBURGH - A resident of Pittsburgh, PA, has been sentenced in federal court to 36 months imprisonment followed by 3 years supervised release on his conviction of violating federal laws, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Ronald A. Moog, 78.
According to information presented to the court, Moog was the President of Moog Transfinancial Services, a Pittsburgh based corporation in the business of auditing freight bills for other companies who had a large volume of freight business. According to Moog’s contractual relationship with the victim companies, Moog would inform the victims of the payment necessary to pay off their freight charges. The victims would then send Moog money, which Moog would place into a trust account. For nearly 13 years, the defendant syphoned money out of the trust account for purposes other than paying the victims’ freight bills, leading to a shortfall within the account of over $2.8 million. This amount was passed onto the victim companies in the form of delinquent freight invoices, which they had already sent money to Moog to pay for and which they believed had been already paid.
As part of the sentence, Judge Fischer ordered Moog to pay restitution of approximately $2.9 million to the following victims: Mine Safety Appliances (MSA), Jennmar, Traco, Union Switch & Signal, Neville Chemical, Penn Machine Company, Union Spring, Bradley Paint Company, B.M Kramer & Co. Inc., and E.W. Bowman, Inc.
Assistant United States Attorney James T. Kitchen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Postal Inspection Service for the investigation leading to the successful prosecution of Moog.
Financial Planner Sentenced to Serve 10 Years in Federal Prison on Wire Fraud and Money Laundering ConvictionsRead the Press Release
Defendant Also Ordered to Pay Nearly $100,000 in Restitution
FORT WORTH, Texas — Caleb Deason, 34, of Fort Worth, Texas, was sentenced yesterday by U.S. District Judge John McBryde to serve a total of 120 months in federal prison, following his conviction at trial in December 2013 on one count each of wire fraud and money laundering. Departing upward from the U.S. Sentencing Guidelines, Judge McBryde remarked that it was obvious to him that Deason was nothing more than a “con man and a flim-flam” who has been amoral in the majority of his dealings in his professional life. Judge McBryde also ordered Deason to pay $99,491 in restitution. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement today.
Deason owned and operated CD Financial, a financial services business in Fort Worth. He was an agent of Transamerica Life Insurance Company from November 2006 through May 2012. In October 2011, Deason sold an individual a Transamerica policy with a death benefit of approximately $1 million.
In January 2012 the insured died unexpectedly. Transamerica conducted extensive due diligence before agreeing to pay the policy’s death benefit to the insured’s wife. However, Deason fraudulently changed the bank account and routing information and forged the beneficiary’s signature on a Transamerica wire request form in order to divert the proceeds from the life insurance policy to his own personal use, which included purchasing a 2010 Range Rover. The Range Rover was administratively forfeited by the U.S. Secret Service.
The U.S. Secret Service and the Texas Department of Insurance investigated. Assistant U.S. Attorneys Brian Poe and John de la Garza prosecuted.
Federal Inmate Charged with Attempted Murder at CanaanRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a criminal information has been filed in U.S. District Court in Scranton charging that an inmate at the United States Penitentiary at Canaan, Pennsylvania, with allegedly assaulting another inmate with a dangerous weapon with the intent to commit murder on November 7, 2013. Eddie Joe Sutton, age 59, formerly of Texas, was charged with the offense. According to United States Attorney Peter Smith, the alleged victim was another inmate who survived the attack but suffered stab wounds which required treatment at a local hospital.
The Government also filed a plea agreement which is subject to approval by the Court.
The case was investigated by the FBI and the Special Investigation Section at USP-Canaan.
Prosecution is assigned to Assistant United States Attorney John Gurganus.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is twenty years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Fairview Man Pleads Guilty to Produciton of Child PornographyRead the Press Release
Kevin S. Kolb, 47, of Fairview, Tenn., pleaded guilty today in U.S. District Court in Nashville to five counts of production of child pornography, announced David Rivera, United States Attorney for the Middle District of Tennessee.
According to testimony at the plea hearing, Kolb took sexually explicit images of a young girl, while in his care, when she was between the age of seven and ten years old. Kolb distributed these images via the internet and investigators also found approximately 600 sexually explicit images and 12 videos of child pornography in Kolb’s possession.
Kolb faces a mandatory minimum sentence of fifteen years in prison and up to 150 years for these crimes. Sentencing is scheduled for June 23, 2014, before U.S. District Court Judge Aleta Trauger.
This matter was investigated by the Federal Bureau of Investigation and the United States is represented by Assistant U.S. Attorney S. Carran Daughtrey.
Executive Sentenced to Five Years in Federal Prison on Wire Fraud Conspiracy ConvictionRead the Press Release
Ran Ponzi Scheme Involving Medical Insurance Investments
DALLAS — Duncan MacDonald III, 50, of Dallas, was sentenced yesterday afternoon by U.S. District Judge Jane J. Boyle to five years in federal prison, following his guilty plea in July 2013 to a felony Information charging conspiracy to commit wire fraud. Restitution owed will be determined at a later date. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
In a related case, Gloria Ann Solomon, 71, also of Dallas, will be sentenced by Judge Boyle on April 17, 2014. She pleaded guilty to an Information charging the same offense.
According to documents filed, from at least 2006 and continuing into at least September 2012, MacDonald was President and Director of Global Corporate Alliance, Inc. (GCA). MacDonald operated GCA out of offices in Addison and Euless, Texas. He hired co-conspirator Solomon in January 2007 as GCA’s Chief Administrative Officer.
GCA managed the North American Consumer Alliance (NACA), a not-for-profit member association that created and packaged insured benefit association healthcare programs and policies administered to corporations, organizations and other entities. GCA sold the healthcare policies throughout the U.S. and maintained a conservative management fee. It collected fees called “overages” that were in excess of the conservative management fee.
In 2008, MacDonald created GCA’s “Overage Program” to sell interests in the overages through “Overage Purchase Agreements.” An investor’s potential return was directly related to the number of people who enrolled in a healthcare plan by purchasing a healthcare policy from CGA. GCA would pay the investor for each new healthcare plan enrollee. MacDonald installed Solomon as the program’s manager and she worked with MacDonald in conducting GCA’s activities regarding the Overage Program.
MacDonald initially planned to have only a single person invest in the Overage Program, but when one couldn’t be found, GCA fractionalized the program to make it available for multiple investors to provide smaller amounts of funds. GCA contracted with a sales agent to solicit individuals to invest, and the sales agent used information regarding the Overage Program that was provided by MacDonald and Solomon. That information included the number of current and projected healthcare plan enrollees that would drive investors’ potential returns.
MacDonald admits that he significantly inflated the current and projected enrollment figures by the thousands in an attempt to sell the Overage Program to investors. He and Solomon knew that the figures were false and that the sales agent would relay the figures to investors he was soliciting.
MacDonald also personally acquired investors for the Overage Program. In fact, MacDonald and Solomon provided false information to persuade one particular investor to invest $2 million in the Overage Program. They then used this money to make payments to existing program investors.
When GCA had difficulty making timely payments to Overage Program investors, MacDonald authorized Solomon to respond to investor complaints and inquiries with excuses for the delayed payments. Solomon sent these emails from accounts that were created for fictitious GCA employees.
The Overage Program did not generate any income or revenue. Less than 50 people actually bought any healthcare policies during the lifetime of the program. MacDonald and Solomon admit that any payments made to existing investors came from money that GCA received from new investors in the program.
In a parallel action, both defendants were also charged by the U.S. Securities and Exchange Commission (SEC) with securities fraud and conducting an unregistered securities offering while acting as unregistered broker-dealers. That complaint alleges that GCA had raised nearly $10 million from investors and returned about $2 million to investors in the form of Ponzi payments. On August 8, 2013, the district court entered Agreed Partial Judgments against both defendants, enjoining them from future violations of federal securities laws. The SEC continues to seek disgorgement plus prejudgment interest and civil penalties against both defendants.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, which was established in 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
The FBI conducted the investigation. The SEC’s Fort Worth Regional Office also provided valuable assistance. Assistant U.S. Attorney Chris Stokes led the prosecution.
Eight Defendants Charged in Identity Theft Fraud Scheme Involving Personal Identifying Information from AT&T Customer FilesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the unsealing of a twenty-two count indictment charging eight defendants with participating in a conspiracy to unjustly enrich themselves by stealing personal identifying information and using the information to make unauthorized wire transfers from the victims' bank accounts and obtain unauthorized credit or debit cards.
All of the defendants were charged with one count of conspiracy, in violation of Title 18, United States Code, Section 1349, and several defendants were charged individually with access device fraud, in violation of Title 18 United States Code, Sections 1029(a)(2) and 1029(a)(3), and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
The defendants charged are: Chouman Emily Syrilien, 25, of Lauderdale Lakes, Arrington Basil Segu, 28, of Miami, Carlos Antonio Alexander, 24, of Orlando, Angel Arcos, 23, of Pompano Beach, Shantegra La’Shae Godfrey, 23, of Deerfield Beach, and Monique Smith, 31, of Pompano Beach. Arcos, Godfrey and Smith had their initial appearances this morning before U.S. Magistrate Judge Alicia O. Valle. Segu had his initial appearance yesterday. Alexander is currently incarcerated. Two defendants remain at a large.
According to the indictment, Syrilien was employed by Interactive Response Technologies, lnc. (IRT) located in Margate. IRT provides staffing for call centers to handle direct sales and customer inquiries for AT&T. Syrilien unlawfully provided a co-conspirator with the personal identifying information from multiple AT&T customer files. Segu also unlawfully provided personal identifying information of numerous individuals to the co-conspirator.
Alexander, Godfrey, and Smith and were added as “authorized users” on victims’ credit or debit card accounts or bank accounts to access the accounts of persons whose personal identifying information had been stolen. Once a co-conspirator’s name was added as an “authorized user,” the bank and/or credit card company was directed to mail additional debit or credit cards bearing the names of these newly added “authorized users” to their addresses or addresses under their control, all without the true account holder's knowledge or consent. The defendants used these credit and debit cards to make purchases or obtain money. Alexander, Smith and Godfrey each made both retail purchases as well as cash advances in excess of $24,000, $12,000 and $8,200, respectively.
Defendant Arcos allowed his personal information to be used to open a bank account to further the fraudulent activity.
If convicted, the defendants each face a maximum of thirty years in prison for the conspiracy charge, a maximum of ten years in prison for the access device fraud charge, and a mandatory term of two years in prison for each aggravated identity theft charge, at least one of which must be served consecutive to any other term in prison.
Mr. Ferrer commended the investigative efforts of IRS-CI and FBI. The case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
An indictment is only an accusation and the defendants are presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
East St. Louis Man Sentenced for Crack Cocaine OffensesRead the Press Release
Follow @SDILNewsThe United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced that Damon L. Pruitt was sentenced today in District Court in East St. Louis to 100 months in prison for selling crack cocaine.
Pruitt, 28, of East St. Louis, Illinois, pled guilty on November 15, 2013, to selling crack cocaine on three separate occasions in East St. Louis during May, 2013. Pruitt has been confined since his arrest on June 26, 2013.
The investigation which resulted in Pruitt’s arrest and conviction was conducted by police officers assigned to the Metropolitan Enforcement Group of Southwestern Illinois (MEGSI). The case resulted from the efforts of the WAVE (Working Against Violent Elements) Task Force, which focuses its efforts on combating violent crime in East St. Louis, Washington Park, and surrounding communities. The WAVE Task Force receives financial support through the Department of Justice’s Project Safe Neighborhoods (PSN) initiative, a nationwide federal program which endeavors to address gun-related violence.
The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Eagle Butte Woman Sentenced for Involuntary ManslaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, woman convicted of Involuntary Manslaughter was sentenced on March 31, 2014, by U.S. District Judge Roberto A. Lange.
Debra Charging Cloud, age 28, was sentenced to 30 months in custody, 18 months of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Charging Cloud was indicted by a federal grand jury on May 15, 2013, and she pled guilty to Involuntary Manslaughter on January 13, 2014.
The conviction arose from a car crash that occurred on April 6, 2013, when Charging Cloud, who was driving under the influence of alcohol, went into the ditch and rolled over. Charging Cloud’s blood alcohol level was .226. During the crash and rollover, an adult female passenger in Charging Cloud’s vehicle was ejected and died as the result of her injuries.
This case was investigated by the Federal Bureau of Investigation, the South Dakota Highway Patrol, and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Charging Cloud was immediately turned over to the custody of the U.S. Marshals Service.
Eagle Butte Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Seth Carter, age 20, was indicted on February 12, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 2, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, at least 5 years up to life of supervised release, with a violation of a condition of release possibly resulting in 5 years of additional incarceration on any such revocation, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between December 4, 2013, and February 11, 2014, Carter, who was required to register under the Sex Offender Registration and Notification Act, and having entered, left, and resided in Indian country, knowingly failed to register and update his sex offender registration.
The charge is merely an accusation and Carter is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Carter was remanded to the custody of the U.S. Marshals Service pending trial. Trial has been set for May 15, 2014.
District Man Sentenced to 17 Years in Prison for 2011 Slaying of Taxicab Driver in Northeast Washington-Shooting Took Place During A Robbery, Following Argument over 75 Cents-Read the Press Release
WASHINGTON – Rashad Slye, 23, of Washington, D.C., was sentenced today to 17 years in prison for the 2011 killing of a taxicab driver during a robbery in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Slye pled guilty in January 2014, in the Superior Court of the District of Columbia, to a charge of second-degree murder while armed. The plea agreement, which was contingent upon the Court’s approval, called for a sentence of 17 years in prison. The Honorable Jennifer Anderson accepted the plea agreement today and sentenced Slye accordingly. Upon completion of his prison term, Slye will be placed on five years of supervised release.
According to the government’s evidence, on Saturday, Oct. 22, 2011, at about 2:50 a.m., Slye and a friend called for a taxicab at the Morgan Boulevard Metro station in Landover, Md. Within a few minutes, the victim, Domingo Ezirike, 40, arrived in his taxicab and picked up Slye and his friend. Slye asked to be taken to Ponds Street NE in the District of Columbia. Mr. Ezirike asked Slye and his friend for $20, and the friend gave Mr. Ezirike $20. Within minutes, Slye began arguing with Mr. Ezirike about the fare and about the lack of heat or music in the cab.
Mr. Ezirike drove the cab to the 4300 block of Ponds Street NE and he asked for an additional $7.75 in fare. Slye’s friend gave him $5 and Slye gave him $2. However, Mr. Ezirike insisted on the additional 75 cents, and he and Slye argued over the money.
After Slye’s friend got out of the cab and left the immediate area, Slye continued to argue over the fare. He pulled out a 9mm handgun and demanded the $20 back. He also ordered Mr. Ezirike out of the cab and onto the ground. At that point, he stood over Mr. Ezirike and began to rifle through his pockets, asking where the money could be found.
Slye struck Mr. Ezirike in the head with the gun and continued searching him, insisting he was hiding the money. Mr. Ezirike offered to remove his pants and while still on the ground, did so. Slye then entered the vehicle, still holding Mr. Ezirike on the ground at gunpoint, as he searched the front passenger compartment. He then ordered Mr. Ezirike back into the taxicab and insisted that he search for money. Then, as Mr. Ezirike sat in the driver's seat, Slye fired a single shot that struck him in the arm, causing him to immediately fall back into the seat and remain still. Slye immediately fled the scene towards the 1500 block of Anacostia Avenue NE.
Mr. Ezirike placed the vehicle in reverse and drove it backwards and onto grass on Anacostia Avenue. He died on the scene, as the bullet traveled from his arm and into his chest cavity.
In announcing the sentence, U.S. Attorney Machen praised the work of the detectives, officers and crime scene technicians who investigated the case from the Metropolitan Police Department. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Meridith McGarrity, Mia Beamon, Phaylyn Hunt, Paralegal Supervisor Sharon Newman, Victim/Witness Advocate Tamara Ince, and Information Technology Specialist Leif Hickling. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys David J. Gorman and Kacie M. Weston, who prosecuted the case.
14-078District Man Sentenced to 17 Years in Prison for 2011 Slaying of Taxicab Driver in Northeast Washington-Shooting Took Place During A Robbery, Following Argument over 75 Cents-Read the Press Release
WASHINGTON – Rashad Slye, 23, of Washington, D.C., was sentenced today to 17 years in prison for the 2011 killing of a taxicab driver during a robbery in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Slye pled guilty in January 2014, in the Superior Court of the District of Columbia, to a charge of second-degree murder while armed. The plea agreement, which was contingent upon the Court’s approval, called for a sentence of 17 years in prison. The Honorable Jennifer Anderson accepted the plea agreement today and sentenced Slye accordingly. Upon completion of his prison term, Slye will be placed on five years of supervised release.
According to the government’s evidence, on Saturday, Oct. 22, 2011, at about 2:50 a.m., Slye and a friend called for a taxicab at the Morgan Boulevard Metro station in Landover, Md. Within a few minutes, the victim, Domingo Ezirike, 40, arrived in his taxicab and picked up Slye and his friend. Slye asked to be taken to Ponds Street NE in the District of Columbia. Mr. Ezirike asked Slye and his friend for $20, and the friend gave Mr. Ezirike $20. Within minutes, Slye began arguing with Mr. Ezirike about the fare and about the lack of heat or music in the cab.
Mr. Ezirike drove the cab to the 4300 block of Ponds Street NE and he asked for an additional $7.75 in fare. Slye’s friend gave him $5 and Slye gave him $2. However, Mr. Ezirike insisted on the additional 75 cents, and he and Slye argued over the money.
After Slye’s friend got out of the cab and left the immediate area, Slye continued to argue over the fare. He pulled out a 9mm handgun and demanded the $20 back. He also ordered Mr. Ezirike out of the cab and onto the ground. At that point, he stood over Mr. Ezirike and began to rifle through his pockets, asking where the money could be found.
Slye struck Mr. Ezirike in the head with the gun and continued searching him, insisting he was hiding the money. Mr. Ezirike offered to remove his pants and while still on the ground, did so. Slye then entered the vehicle, still holding Mr. Ezirike on the ground at gunpoint, as he searched the front passenger compartment. He then ordered Mr. Ezirike back into the taxicab and insisted that he search for money. Then, as Mr. Ezirike sat in the driver's seat, Slye fired a single shot that struck him in the arm, causing him to immediately fall back into the seat and remain still. Slye immediately fled the scene towards the 1500 block of Anacostia Avenue NE.
Mr. Ezirike placed the vehicle in reverse and drove it backwards and onto grass on Anacostia Avenue. He died on the scene, as the bullet traveled from his arm and into his chest cavity.
In announcing the sentence, U.S. Attorney Machen praised the work of the detectives, officers and crime scene technicians who investigated the case from the Metropolitan Police Department. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Meridith McGarrity, Mia Beamon, Phaylyn Hunt, Paralegal Supervisor Sharon Newman, Victim/Witness Advocate Tamara Ince, and Information Technology Specialist Leif Hickling. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys David J. Gorman and Kacie M. Weston, who prosecuted the case.
14-078Dallas Man Guilty of Straw Purchasing Firearms and Other ChargesRead the Press Release
LAREDO, Texas – Martin Lopez-Villela, 51, a legal permanent resident of Dallas, has entered a plea of guilty to conspiracy to defraud, smuggling goods from the United States and making a false statement during the purchase of firearms, announced United States Attorney Kenneth Magidson.
A straw purchase, as it is commonly referred, occurs when the true purchaser solicits a middleman to conduct a firearm transaction for him. The true purchaser does not want to reveal his identity, frequently because federal law prohibits him from purchasing firearms.
On or about Feb. 13, 2014, Lopez-Villela drove a 2007 Chevrolet Avalanche to the Lincoln Juarez Bridge in Laredo, attempting to exit the U.S. and enter Mexico. At that time, he was questioned and he gave a negative declaration for firearms and ammunition. Upon inspection, however, agents and officers discovered two .22 caliber semi-automatic firearms and five boxes that contained 300 rounds of various handgun ammunition.
Lopez-Villela was traveling to San Luis Potosi, Mexico, to deliver the firearms and ammunition. He admitted that while in Dallas, he purchased the two firearms from a firearms dealer and was to transport them and the ammunition into Mexico. He expected to be paid a total of $450 upon delivery.
U.S. District Judge Diana Saldana will sent a sentencing date in the near future. At sentencing, he faces up to 10 years in federal prison for the straw purchasing conviction, as well as a maximum of five and 10 years, respectively, for the conspiracy and smuggling charges. All charges also carry a possible $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, Customs and Border Protection and Border Patrol. Assistant U.S. Attorney Sanjeev Bhasker is prosecuting.
Co-Owner of New Jersey Industrial Pipes Supply Company Pleads Guilty to Making False Statement in Connection with Superfund InvestigationRead the Press Release
A co-owner of a Middlesex, N.J., industrial pipes, valves and fittings supply company pleaded guilty today to one count of making a false statement, the Department of Justice announced.Victor Boski pleaded guilty in the U.S. District Court of New Jersey to willfully making a materially false and fictitious statement to the U.S. Environmental Protection Agency (EPA) at a debarment proceeding. Previously, Boski and his company, National Industrial Supply LLC (NIS), had pleaded guilty on March 4, 2009, to participating in a kickback and fraud conspiracy to defraud the EPA at the Federal Creosote Superfund site located in Manville, N.J., and to defraud Tierra Solutions Inc., a general contractor based in The Woodlands, Texas, at the Diamond Alkali Superfund site in Newark, N.J., from approximately December 2000 to approximately September 2004. As outlined in the 2009 plea agreement, Boski provided $55,000 in kickbacks to two employees of the prime contractor responsible for awarding contracts at the two Superfund sites in exchange for the award of sub-contracts to NIS. These kickbacks included luxury vacations and payments to shell companies held by the two employees. Today’s guilty plea arises from false statements Boski made to the EPA in regard to his and NIS’s debarment hearing that resulted from the 2009 guilty pleas.
According to court documents, Boski appeared before the EPA on or about Nov. 30, 2011, on behalf of NIS to review his and NIS’s future eligibility to contract with the United States. During the course of the hearing, Boski falsely stated that he and NIS had paid kickbacks in the form of sporting event tickets and that the $55,000 in kickbacks he and NIS pleaded guilty to paying was an artificial number.
“When individuals plead guilty to participating in fraud and kickback schemes, it is crucial that that they do not then lie to government procurement officials about their conduct,” said Bill Baer, Assistant Attorney General in charge of the Justice Department’s Antitrust Division. “The division will vigorously prosecute individuals who make false statements regarding the crimes they have committed.”Including Boski, nine individuals and three companies have pleaded guilty or been convicted of charges arising out of this investigation. More than $6 million in criminal fines and restitution have been imposed and six of the individuals have been sentenced to serve prison sentences ranging from five months to 14 years. One individual was sentenced to six months home confinement and the remaining two were sentenced to pay criminal fines and restitution. An additional individual, John A. Bennett, a Canadian citizen, was also charged on Aug. 31, 2009, and is facing extradition to the United States. Boski is scheduled to be sentenced on July 7, 2014, before Judge Susan D. Wigenton.
Boski faces a maximum penalty of five years in prison and a $250,000 fine. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either of those amounts is greater than the statutory maximum fine.
The ongoing investigation is being conducted by the Antitrust Division’s New York Office, the EPA Office of Inspector General and the Internal Revenue Service Criminal Investigation. Anyone with information concerning bid rigging, kickbacks, tax offenses or fraud relating to subcontracts awarded at the Federal Creosote and/or the Diamond Alkali sites should contact the Antitrust Division’s New York Office at 212-335-8000 or visit www.justice.gov/atr/contact/newcase.htm.
California Man Sentenced for Possession of Unauthorized Credit CardsRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Darnele Nelson, 32, of California, who was convicted of possession of 15 or more unauthorized access devices, was sentenced to 36 months in prison and ordered to pay restitution totaling $1,722.91 by U.S. District Court Judge Richard J. Arcara.
Assistant U.S. Attorney Marie P. Grisanti, who handled the case, stated the defendant was in possession of 109 unauthorized credit, debit and gift cards and a magnetic card reader/writer device when he was refused entry into Canada on May 13, 2013. Nelson traveled from Nevada to Ohio, Maryland, Pennsylvania and New York before he attempted to travel to Canada.
The sentencing was the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero and Customs and Border Protection, under the direction of Randy Howe, Director of Field Operations.Buffalo Woman Sentenced on Drug ChargeRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Besari Torres, 37, of Buffalo, N.Y., who was convicted of possession with intent to distribute cocaine, was sentenced to three years probation including six months home detention by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that on September 29, 2011, the defendant, at the direction of her husband and co-defendant Victor Marshall, sold cocaine to a confidential informant on Albany St. in Buffalo. Victor Marshall Was convicted of a controlled substance offense and will be sentenced on May 16, 2014.
The sentencing is the culmination of an investigation by the Safe Streets Task Force, under direction of the Federal Bureau of Investigation.Broward Resident Charged for Filing over $439,000 in False Claims for Income Tax RefundsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce the unsealing of an indictment charging Bradley Bowman, of Lighthouse Point, with two counts of filing false claims to the IRS, in violation of Title 18, United States Code, Sections 287 and 2.
According to court documents, Bowman engaged PMDD Services, a tax return preparation firm in Shelley, Idaho, to prepare his 2005 and 2008 Individual Income Tax Returns. Bowman claimed fraudulent tax refunds of $299,024 and $140,355 on his tax returns for the 2005 and 2008 tax years, respectively.
If convicted, the defendant faces a maximum term of five years in prison for each count.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Bertha R. Mitrani and Department of Justice Tax Division Trial Attorney Gregory P. Bailey.
An indictment is only an accusation and the defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Braintree Man Charged with Narcotics RobberyRead the Press Release
BOSTON - A Braintree man was charged yesterday for selling narcotics from a pharmacy.
Daniel McPeck, 27, was charged with robbery involving a controlled substance.
According to the indictment, in April 2013, police officers responded to a Rite Aid on Pearl Street in Braintree in response to an armed robbery. Witnesses reported that McPeck entered the pharmacy carrying a plastic bag and a gun. The charges further allege that McPeck announced that a robbery was occurring, and ordered the pharmacist to put all the narcotics in the safe into the plastic bag he was carrying. He then fled through a back door.If convicted, McPeck faces a maximum sentence of 25 years in prison, a maximum of five year of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Braintree Police Chief Russell W. Jenkins, made the announcement today. The case is being prosecuted by Eve A. Piemonte Stacey 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.
Boston Man Sentenced for ATM BurglaryRead the Press Release
BOSTON – A Boston man was sentenced today for the 2012 robbery of an ATM in Boston’s South End.
Terry K. Leigh, 47, was sentenced by U.S. District Court Judge Dennis F. Saylor today to 30 months in prison, three years of supervised release, and ordered to pay $58,000 in restitution to the Bank of America. In January 2014, Leigh pleaded guilty to bank burglary.
On Aug. 11, 2012, federal agents and detectives were conducting surveillance on a Bank of America ATM located at 465 Columbus Avenue, Boston, as part of an ongoing investigation into ATM burglaries. At approximately 9:45 p.m. the agents observed two individuals enter the lobby of an apartment building located next to the ATM. Access to the ATM’s “money room” is gained through a locked security door within the apartment building’s lobby. One of the individuals, later identified as Leigh, was carrying a green duffle bag and wearing a blue hat, a gray shirt, dark sweatpants and what appeared to be a fake black beard. After a few minutes, both individuals left the apartment building, exiting onto Columbus Avenue. Leigh then reentered the apartment building. The agents, believing that the ATM was about to be robbed, gained access to the building’s lobby and observed Leigh exiting the ATM’s money room. Leigh fled up an adjoining staircase and was captured a short time later on the roof. Following Leigh’s arrest, the agents located the green bag containing various cutting tools, the blue hat and the fake beard which Leigh had been wearing. The ATM, which sustained significant damage, contained in excess of $240,000.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Evans, made the announcement today. The case is being prosecuted by Kenneth G. Shine of Ortiz’s Major Crimes Unit.Boston Man Indicted on Child Pornography ChargesRead the Press Release
BOSTON - A Hyde Park man was indicted yesterday, charged with producing child pornography.
Geraldo Christiano DeSouza, 42, was indicted on possession of child pornography, distribution of child pornography, production of child pornography, and two counts of coercion and enticement of a minor.
In October 2012, an undercover officer accessed a peer-to-peer file sharing program and located a host computer that offered files indicative of child pornography for sharing. Two of the files downloaded by the officer contained child pornography. A search warrant was executed at DeSouza’s apartment, and officers seized four laptops and other computer media from his room. The indictment alleges that child pornography was found on all four laptops, as well as evidence that DeSouza had engaged in sexual activity with minors. DeSouza also "chatted" with these minor victims using various forms of social media and webcam, and directed the minors to display themselves in a sexually explicit manner. Using his cell phone, DeSouza allegedly also filmed himself having sexual intercourse with minors.
If convicted, DeSouza faces a maximum of 10 years in prison on the charge of possession of child pornography; a mandatory minimum of five years and a maximum of 20 years in prison on the charge of distribution of child pornography; a mandatory minimum of 15 years and a maximum of 30 years in prison on the charge of production of child pornography; and a mandatory minimum of 10 years and a maximum of a lifetime in prison on the charge of coercion and enticement of a minor. DeSouza also faces a minimum of five years and a maximum of a lifetime of supervised release and a $250,000 fine on each count.
United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Boston Police Commissioner William Evans, made the announcement today. The case is being prosecuted by Eve A. Piemonte Stacey 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.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Belle Fourche Man Found Guilty of Commercial Sex TraffickingRead the Press Release
United States Attorney Brendan V. Johnson announced that James Eugene Larive, Jr., age 43, of Belle Fourche, South Dakota, was found guilty of Commercial Sex Trafficking as a result of a federal jury trial held in U.S. District Court in Rapid City. Following a two-day trial, the jury returned the guilty verdict on April 4, 2014.
The charge carries a mandatory minimum term of 10 years in federal prison and/or a $250,000 fine, 5 years up to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
“We will bring the full weight of justice down on anyone who wants to pay money to have sex with a child in South Dakota,” said Johnson. “We are grateful for the outstanding work of our state, local and federal law enforcement partners in this case.”
Larive was one of nine men who were arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2013 Sturgis Motorcycle Rally, targeting persons willing to pay to have sex with underage girls obtained through the Internet. All nine men were indicted for Commercial Sex Trafficking.
This conviction stems from Larive responding to a Craigslist.com advertisement posted by Division of Criminal Investigation undercover agents, which purported to offer young girls for sex. Following several emails with a person Larive believed to be associated with a 15-year old girl, but who was in fact an undercover agent, he proceeded to negotiate the time and place they would meet, along with the price he would pay, which was the trade of an expensive smart phone.
Of the nine original defendants, five have pled guilty. One has been sentenced to 10 years in federal prison, another to 7 years, and the other three await sentencing. The remaining 3 defendants are scheduled for trial.
The undercover operation and arrests were a joint effort between the South Dakota Division of Criminal Investigation, the Federal Bureau of Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Sarah Collins is prosecuting the cases.
Larive was remanded to the custody of the U.S. Marshals Service pending sentencing.
Armed Robbery Crew Sentenced to 32 Years of ImprisonmentRead the Press Release
Earlier today, United States District Judge Raymond J. Dearie sentenced Edward Byam, Derrick Dunkley, and Akeem Montsalvatge each to serve 32 years of imprisonment for the violent armed robberies of two Queens check-cashing stores. Following a two-week trial that ended on August 9, 2013, the defendants were each found guilty of robbery conspiracy, two counts of robbery, and two counts of using a firearm in connection with those robberies.
The sentences were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Thomas J. Canon, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), New York.
“This armed robbery crew terrorized the hard-working employees of Queens in pursuit of a quick buck,” stated United States Attorney Lynch. “They used masks and costumes to elude law enforcement, but, as they have learned today, their disguises could not shield them from justice.” Ms. Lynch thanked the ATF, the agency that led the government’s investigation, and expressed her grateful appreciation to the New York City Police Department’s Police Impersonation Unit, which assisted in the government’s investigation at all stages, and the United States Marshals Service, for its crucial assistance in apprehending these violent criminals.
The government’s evidence at trial established that the defendants committed two armed robberies of separate Pay-O-Matic check cashing stores in Queens, New York. In 2010, the three defendants stole over $40,000 from a Pay-O-Matic after one of the defendants gained entry through the roof into the secure teller area. Wearing hooded sweatshirts and cloth masks, the defendants held the victim teller at gunpoint, handcuffed him and beat him with a metal chair before making off with the stolen cash. In 2012, the defendants robbed another Pay-O-Matic check cashing store at gunpoint, while wearing New York City Police Department jackets, badges, and life-like Hollywood-style special effects masks that concealed their identities and made them appear to be three white men. During this robbery, the defendants gained entry to the secure teller area by showing one of the tellers a picture of her own home and then forced a second teller to let the defendants into the area where the safe was located. Once inside, the defendants held the tellers at gunpoint and stole over $200,000.
The government’s witnesses included the victim tellers who were held at gunpoint during the robberies, as well as the owner of the company that manufactured the life-like special effects masks used by the defendants during the 2012 robbery. The government’s evidence also included telephone and cell site records placing the defendants at the scenes of both crimes, DNA evidence, text messages among the defendants discussing how they would spend the robbery proceeds, and records showing the defendants bought thousands of dollars of luxury items from high-end luxury boutiques with the money they had stolen.
The government’s case is being prosecuted by Assistant United States Attorneys Tyler Smith, Tiana Demas, and Maria Cruz Melendez.
The Defendants:
EDWARD BYAM
Age: 26
Queens, New York
DERRICK DUNKLEY
Age: 26
Queens, New York
AKEEM MONTSALVATGE
Age: 38
Queens, New York
E.D.N.Y. Docket No. 12-CR-586 (RJD)
Antioch Resident Pleads Guilty to Conspiring to File False ClaimsRead the Press Release
OAKLAND – Khyber Law pleaded guilty today to conspiring to file false claims, announced U.S. Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
According to the plea agreement, beginning in January 2011, Law assisted in filing several tax returns with the IRS that were false and fraudulent. Law admitted that the tax returns were false because the filings included fictitious Forms W-2 that inflated the individuals’ wages. The filings included a tax return filed in Law’s name which falsely reported that he was employed at a staffing agency. In other instances, Law admitted to filing the false tax returns without ever showing the fraudulent tax return to the purported filer. Law helped file the false returns from his residence and from other places.
Law, of Antioch, was charged in a superseding indictment on Dec. 17, 2013. He was charged with conspiracy to file false claims, wire fraud, filing false claims and aggravated identity theft. Law pleaded guilty to conspiracy to file false claims and agreed to pay restitution related to this offense.
The maximum statutory penalty for each count of conspiracy to file false claim, in violation of 18 U.S.C § 286, is ten years in prison and a fine of $250,000. Sentencing is scheduled for Aug. 22, 2014, before the Honorable Jon S. Tigar, United States District Court Judge in Oakland.
Assistant U.S. Attorney Thomas Newman is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
(Law indictment )
Alabama Sheriff’s Investigator Pleads Guilty to Assaulting Handcuffed Man at Macon County JailRead the Press Release
J. Keith McCray, a criminal investigator with the Macon County, Ala., Sheriff’s Office, pleaded guilty in federal court today to assaulting a handcuffed man at the county jail, resulting in bodily injury to the victim.
An indictment against McCray, 41, charged that on July 4, 2013, he violated the civil rights of a door-to-door salesman who was selling alarm systems in McCray’s Tuskegee, Ala., neighborhood. At the plea hearing, McCray admitted that he arrested the salesman and transported him to the Macon County Jail. There, McCray struck the victim four times in the face and head while the victim was handcuffed and posed no threat.
McCray pleaded guilty to one felony count of deprivation of rights under color of law. At sentencing, McCray faces a maximum sentence of 10 years in prison and a $250,000 fine.
“The defendant attacked an innocent citizen who was simply trying to earn a living on the day of the incident,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “When he assaulted the defenseless victim, he violated the trust put in him by the community as well as the law. The Department will continue to hold accountable those who abuse their authority.”
“While we look to law enforcement to maintain the safety and security of our citizens, their position of authority does not give them the right to act outside the bounds of the law,” said U.S. Attorney George L. Beck Jr. for the Middle District of Alabama. “We trust them to protect and serve our communities. While most members of law enforcement serve honorably, McCray breached this trust and must be held accountable. Failure to do so would discredit the noble service of every other officer, and weaken the public’s trust in those who are sworn to protect them.”
This case was investigated by the FBI and the Alabama Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Jerusha T. Adams of the Middle District of Alabama and Trial Attorney Chiraag Bains of the Civil Rights Division.
Alabama Sheriff’s Investigator Pleads Guilty to Assaulting Handcuffed Man at Macon County JailRead the Press Release
Montgomery, Alabama - J. Keith McCray, a criminal investigator with the Macon County, Ala., Sheriff’s Office, pleaded guilty in federal court today to assaulting a handcuffed man at the county jail, resulting in bodily injury.
McCray, 41, of Tuskegee, Ala., was at his home on July 4, 2013, when the victim, a door-to-door salesman, spoke with McCray about purchasing an alarm system. McCray indicated that he was not interested in purchasing a system. As the victim began to leave McCray’s property, McCray unlawfully seized the victim at gunpoint and took him to the Macon County Jail. During the plea hearing, defendant McCray admitted that at the jail, he struck the victim four times in the face and head while the victim was handcuffed and posed no threat.
McCray pleaded guilty to one felony count of deprivation of rights under color of law. At sentencing, McCray faces a maximum sentence of ten years in prison and a $250,000 fine.
“The defendant attacked an innocent citizen who was simply trying to earn a living on the day of the incident. When he assaulted the defenseless victim, he violated the trust put in him by the community as well as the law,” said Jocelyn Samuels, Acting Assistant Attorney General for Civil Rights. “The Department will continue to hold accountable those who engage in such actions.”
“While we look to law enforcement to maintain the safety and security of our citizens, their position of authority does not give them the right to act outside the bounds of the law,” stated George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama. “We entrust them to protect and serve our communities. While most members of law enforcement serve honorably, McCray breached this trust and must be held accountable. Failure to do so would discredit the noble service of every other officer, and weaken the public’s trust in those who are sworn to protect them.”
This case was investigated by the FBI and the Alabama Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Jerusha T. Adams of the Middle District of Alabama and Trial Attorney Chiraag Bains of the Justice Department’s Civil Rights Division.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617
Thursday 3 April 2014
West Valley Man Sentenced to 15 Years in Federal Prison after Pleading Guilty to Possession of Child PornographyRead the Press Release
SALT LAKE CITY - U.S. District Judge Dee Benson sentenced Shawn William Turley, age 50, of West Valley City to 15 years in prison Wednesday afternoon in U.S. District Court in Salt Lake City. Turley, who pleaded guilty in January to possession of child pornography, will be on supervised release for life when he finishes his federal sentence.
The federal sentencing guideline range in the case was 121-151 months. As a part of a plea agreement reached in the case, a 15-year sentence was recommended to the Court. Turley faced the significant sentence because of his prior convictions.
As a part of the plea agreement, Turley admitted that Utah Adult Probation and Parole agents conducted a field visit at his residence in July 2013 after a 12-year-old child disclosed that he had been sexually abusing her for a year. The agents located a phone hidden under Turley’s mattress and box springs during the field visit. West Valley City police officers and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations agents joined the investigation. Turley admitted in the plea agreement that his phone contained more than 600 images of prepubescent and pubescent females in sexually suggestive poses.
Turley admitted he obtained the pictures using a peer-to-peer network. As a part of the plea agreement, Turley also admitted to law enforcement officers that he sexually abused the 12-year-old child for approximately one year. He also acknowledged that he was being supervised by Utah Adult Probation and Parole for 1987 convictions for at least one qualifying first-degree felony in Utah’s Fourth District Court in Utah County.
The case was investigated by Utah Adult Probation and Parole, the West Valley City Police Department, and HSI. The case is being prosecuted by the U.S. Attorney’s Office in Salt Lake City.
Weslaco Man Convicted of Marijuana TraffickingRead the Press Release
LAREDO, Texas – Santiago Martinez, 37, of Weslaco, has entered a guilty plea to conspiracy to possess with the intent to distribute in excess of 1,000 kilograms of marijuana, announced United States Attorney Kenneth Magidson.
A Laredo grand jury returned an indictment Dec. 3, 2013, which alleged Martinez acted as a leader and organizer within a drug trafficking organization that purchased and transported marijuana from the United States-Mexico border to regional distributors in Memphis, Tenn., and Tampa, Fla.
According to court documents, the organization used “low boy” trailers and recreational camping trailers with hidden compartments to transport the marijuana, in 300 to 500 kilogram loads, twice per month. Proceeds from the sale and transportation of this marijuana were collected and sent back to South Texas. These proceeds were placed in hidden compartments in tractor trailers or recreational camping trailers or were deposited into numerous bank accounts.
Since 2001, law enforcement has seized more than 5,000 kilograms of marijuana and more than $1.3 million tied to this drug trafficking organization. The largest seizure of marijuana occurred on Jan. 7, 2011, at which time two tractors, hauling “low boy” trailers, arrived approximately one hour apart at the U.S. Border Patrol checkpoint on Highway 1017 east of Hebbronville. Inside hidden compartments in the trailers, agents found more than a 1000 kilograms of marijuana. One tractor was headed to Memphis and the other to Tampa.
The largest cash seizure occurred on Aug. 4, 2012, in Florida when law enforcement officers found seven bundles of money, totaling $831,539 in a lead-lined hidden compartment in a camping trailer.
Martinez admitted he purchased the marijuana and arranged for its transportation and that a number of the vehicles used by this organization were titled in his name. Martinez further admitted he conspired to move more than 10,000 kilograms of marijuana.
Martinez will remain in custody pending his sentencing hearing to be set in the near future. At that time, he faces a mandatory minimum sentence of 10 years and up to life in prison as well as a $10 million fine for the drug conspiracy. The United States is also seeking a money judgment in the amount of $11,555,000 based on the amount of marijuana transported by the organization during the span of the conspiracy.
The case is being investigated by the Drug Enforcement Administration with the assistance of the FBI. Assistant United States Attorney Elizabeth R. Rabe is prosecuting the case.
Vehicle Emmissions Inspector Sentenced to Two Months in Prison for Emissions FraudRead the Press Release
To Date, 14 Defendants Have Been Sentenced For Conducing “Clean Scans”
CHARLOTTE, N.C. – A licensed vehicle emissions inspector was sentenced today to serve two months in prison for his role in providing fraudulent passing emissions scores for more than 200 vehicles, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. In addition to the prison term, U.S. District Judge Max O. Cogburn, Jr. also sentenced Pedro Salmeron, 37, of Charlotte, to two years of supervised release, the first four months of which he must spend under home confinement. Salmeron was also ordered to perform 50 hours of community service and to a pay a $5,000 fine.
U.S. Attorney Tompkins is joined in making today’s announcement by Special Agent in Charge Maureen O’Mara of the U.S. Environmental Protection Agency, Criminal Investigation Division (EPA-CID), Atlanta Area Office; Greg McLeod, Director of the North Carolina State Bureau of Investigation (NC SBI); and Steven M. Watkins, Director of the North Carolina Division of Motor Vehicles License and Theft Bureau (NC DMV L&T).
According to court records and today’s sentencing hearing, Salmeron was employed as a technician for “Carolina Inspections” – also known as “Carolinas Auto Inspection” – located in Charlotte, and was also a vehicle emissions inspector licensed by the state of North Carolina. As a state-licensed emissions inspector, Salmeron was responsible for ensuring the emissions of vehicles he tested met federally mandated emissions requirements. Court records show that from February 2010 through January 2011, Salmeron conducted 201 illegal vehicle emissions inspection and falsely passed vehicles that would have failed emissions inspection. Court records indicate that Salmeron performed these fraudulent tests by entering the information of the vehicle being tested into the state database at Carolinas Auto Inspection, but then connecting the testing equipment to “surrogate” vehicles at the repair shop. The illegal practice of utilizing substitute vehicles for emissions testing is referred to in the industry as “clean scanning.” Salmeron pleaded guilty in August 2012 to one count of conspiracy to violate the Clean Air Act by conducting false vehicle emissions inspections.
The Clean Air Act requires vehicle emission inspections in geographic regions that exceed national ambient air quality standards. According to the EPA, the Charlotte metropolitan area exceeds the 8-hour standard set for Ozone, a potent irritant that can cause lung damage and other types of respiratory problems.
Salmeron was ordered to self-report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
Salmeron is the latest defendant to be sentenced resulting from an investigation of Charlotte-area vehicle emissions inspectors involved in conducing “clean scans.” The multi-agency investigation has netted 14 prosecutions, with defendants serving sentences ranging from 18 months in prison to probation, in addition to home confinement, community service and monetary fines:
1. Jassim Juburi: sentenced to 18 months in prison, three years of supervised release, and a $15,000 fine. (3:12-cr-84). 2. Jose Manuel Cabrera: sentenced to one year and one day in prison, three years of supervised release that includes 100 hours of community service and a $10,000 fine. (3:12-cr-240). 3. Jack Haney: sentenced to six months in prison, one year of supervised release that includes 6 months of home confinement, 50 hours community service, and a $10,000 fine. (3:11-cr-342). 4. Ronald Kinard: sentenced to six months in prison, one year of supervised release that includes 6 months of home detention, and a $10,000 fine. (3:11-cr-340). 5. Mohammed Hafeez Awan: sentenced to six months in prison, three years of supervised release that includes six months of home detention, 50 hours of community service, and a $1,000 fine. (3:12-cr-79). 6. Michel Jule Fernald: sentenced to five months in prison, two years of supervised release that includes five months of home confinement, and a $1,000 fine. (3:12-cr-90). 7. Chucky Cheung: sentenced to five months in prison and three years of supervised release that includes 5 months of home detention. (3:11-cr-160). 8. Tanveer Anwar: sentenced to four months in prison, two years of supervised release that includes four months of home confinement and 50 hours of community service. (3:11-cr-241). 9. Erick Chicas: sentenced to three months in prison, two years of supervised release that includes three months of home confinement, 50 hours of community service, and a $7,500 fine. (3:11-cr-240). 10. Alexander Edwards: sentenced to 60 days in prison, four months of home while serving two years of supervised release, and a $1,000 fine. (3:11-cr-102). 11. Thanh Long Quoc Nguyen: sentenced to two months of home confinement while serving two years of probation, 50 hours of community service, and a $2,000 fine. (3:11-cr-175). 12. Jin Sung Chang: sentenced to two years of probation to include six months of home detention, and a $400 special assessment. (3:11-cr-163). 13. Stephen Dickinson: sentenced to two years of probation and a $1,000 fine. (3:11-cr-101).
U.S. Attorney Tompkins thanked the EPA’s Criminal Investigation Division, NC SBI’s Diversion and Environmental Crimes Unit, and NC DMV License and Theft Bureau, with assistance from the North Carolina Division of Air Quality, Mobile Sources Compliance Branch, for their investigation leading to the 14 prosecutions.
Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte prosecuted the cases.
United States Announces $5.15 Billion Settlement with Anadarko to Pay for Environmental and Toxic Tort LiabilitiesRead the Press Release
Largest Payment for the Clean-Up of Environmental Contamination in History
James Cole, Deputy Attorney General of the United States, Preet Bharara, the United States Attorney for the Southern District of New York (“SDNY”), Robert G. Dreher, the Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resource Division (“ENRD”), and Cynthia Giles, Assistant Administrator of the U.S. Environmental Protection Agency, announced today that the United States has entered into a settlement agreement with the Kerr-McGee Corporation and certain of its affiliates (“New Kerr-McGee”), and their parent Andarko Petroleum Corporation, in a fraudulent conveyance case brought by the United States and co-plaintiff Anadarko Litigation Trust (the “Trust”) in the bankruptcy of Tronox Inc. and its subsidiaries (“Tronox”). The bankruptcy court had previously found, in December 2013, that the historic Kerr-McGee Corporation (“Old Kerr-McGee”) fraudulently conveyed assets to New Kerr-McGee to evade its debts, including its liability for environmental clean-up at contaminated sites around the country. Pursuant to the settlement agreement, the defendants agree to pay $5.15 billion to settle the case, of which approximately $4.4 billion will be paid to fund environmental clean-up and for environmental claims. This is the largest payment ever for the clean-up of environmental contamination.
Deputy Attorney General James Cole said: “Kerr-McGee’s businesses all over this country left significant, lasting environmental damage in their wake. It tried to shed its responsibility for this environmental damage and stick the United States taxpayers with the huge cleanup bill. Through a lot of hard work, we uncovered this fraud and recovered over $5 billion dollars for the American people. This settlement demonstrates the Justice Department’s firm commitment to preventing and combating all forms of fraud and to securing environmental justice.”
Manhattan U.S. Attorney Preet Bharara said: “If you are responsible for 85 years of poisoning the earth, then you are responsible for cleaning it up. That’s why this case was brought. And that’s why the defendants are paying a record $5.15 billion -- to fund that colossal cleanup and to make things right. The company tried to keep its rewards and shed its responsibilities by playing a corporate shell game, putting its profitable oil-and-gas business in a new entity and leaving behind a bankrupt shell holding the environmental liabilities of the defunct, polluting lines of business. The company tried to cleanse its valuable business from its toxic legacy liabilities. Now the defendants will pay to cleanse the land and water.”
Acting Assistant Attorney General Robert G. Dreher said: “Today’s settlement is a just resolution of an historic injustice to the American people and our environment. The money recovered will result in clean-ups of a toxic history the Old Kerr-McGee unsuccessfully tried to walk away from.”
EPA Assistant Administrator Cynthia Giles said: “EPA’s vigorous pursuit of this case will have a big return for communities across the country. Companies that pollute can’t escape their responsibility to pay for the cleanup. EPA will continue to fight for those affected by pollution.”
The Fraudulent Conveyance
According to the complaints of the Government and the Trust and the December 12, 2013, written opinion of U.S. Bankruptcy Judge Allan L. Gropper:
Old Kerr-McGee operated numerous businesses, which included uranium mining, the processing of radioactive thorium, creosote wood treating, and manufacture of perchlorate, a component of rocket fuel. These operations left contamination across the nation, including radioactive uranium waste across the Navajo Nation; radioactive thorium in Chicago and West Chicago, Illinois; creosote waste in the Northeast, the Midwest, and the South; and perchlorate waste in Nevada.
In the years prior to 2005, Old Kerr-McGee concluded that the liabilities associated with this environmental contamination were a drag on its “crown jewel” business, the exploration and production of oil and gas. With the intent of evading these and other liabilities, Old Kerr-McGee created a new corporate entity – defendant New Kerr-McGee – and, through a scheme executed in 2002 and 2005, transferred its valuable oil and gas exploration assets to the new company. The legacy environmental liabilities were left behind in the old company, which was re-named Tronox, and spun off as a separate company in 2006. As a result of these transactions, Tronox was rendered insolvent and unable to address its environmental and other liabilities. In 2009, Tronox went into bankruptcy.
The United States and the bankruptcy estate (now represented by the Trust) brought this lawsuit to hold the defendants accountable and require them to repay the value of the assets fraudulently conveyed from Old Kerr-McGee.
In its decision, the Court found that Old Kerr-McGee transferred assets with the intent to hinder or delay creditors, including particularly environmental creditors, and also transferred those assets for less than their fair value, which left Tronox insolvent, unable to pay its debts when they came due, and undercapitalized. Among other things, the Court concluded that:
- “[T]here can be no dispute that Kerr-McGee acted to free substantially all its assets – certainly its most valuable assets – from 85 years of environmental and tort liabilities.”
- “[O]verhelming” evidence demonstrated that “Defendants devised, carried out and had complete knowledge that [the transfer of Old Kerr-McGee’s oil and gas exploration and production assets was] part of ‘a single integrated scheme’ to create a ‘pure play’ E&P business [referring to the ‘crown jewel’ oil and gas exploration and production business] free and clear of the legacy liabilities.”
- “[T]here is no credibility to the uniform testimony of the inner circle [of Old Kerr-McGee management] that isolation of the oil and gas assets from the chemical business had nothing to do with an effort to cleanse the E&P assets from the legacy liabilities.”
- “The record is replete with evidence that Kerr-McGee misapplied [the] standard [for setting reserves for environmental claims under Generally Accepted Accounting Principles] and thereby understated its liabilities for GAAP purposes.”
- Statements by former Old Kerr-McGee employees that the cost of this environmental pollution would decline after the spin-off were “not rooted in reality.”
- Kerr-McGee had failed to conduct any “contemporaneous analysis of the effect of [its] transactions on the legacy liability creditors,” including the effect it would have on the United States’ environmental claims.
The Settlement
Under today’s settlement agreement, the defendants will pay $5.15 billion to the Trust to settle the fraudulent conveyance case. Pursuant to a 2011 settlement between the United States, certain state, local, and tribal governments, and the bankruptcy estate, approximately 88% of the net proceeds of this litigation will be distributed by the trust to the United States, certain state governments, the Navajo Nation, and environmental trusts created to clean up Tronox’s contaminated sites. The 2011 settlement agreement provides specific percentages of this funding that will be made available to each site.
As a result of these agreements, some of the key recoveries for environmental claims and for clean-up of environmental sites are estimated to be the following:
- $1.1 billion will be paid to a trust charged with cleaning up two dozen other contaminated sites around the country, including the Kerr-McGee Superfund Site in Columbus, Mississippi.
- $1.1 billion will be paid to a trust responsible for cleaning up a former chemical manufacturing site in Nevada that has led to contamination in Lake Mead. Lake Mead feeds into the Colorado River, a major source of drinking water in the Southwest.
- Approximately $985 million will be paid to U.S. EPA to fund the clean-up of abandoned uranium mines on land of the Navajo Nation, where radioactive waste remains from Kerr-McGee mining operations.
- Approximately $224 million will be paid to U.S. EPA for clean-up of thorium contamination at the Welsbach Superfund Site in Gloucester, New Jersey.
- Approximately $217 million will be paid to the federal Superfund in repayment of costs previously incurred by EPA cleaning up the Federal Creosote Superfund Site in Manville, New Jersey.
Additional amounts will be paid to the United States, states, the Navajo Nation, and environmental trusts for other environmental claims and contaminated sites at issue in this case.
The settlement agreement will be lodged with the United States Bankruptcy Court for the Southern District of New York for a period of at least 30 days before it is submitted for the Court’s approval, in order to provide public notice and to afford members of the public the opportunity to comment on the settlement agreement.
Mr. Bharara thanked the Trust, its trustee John C. Hueston, and its counsel, Kirkland & Ellis LLP, for their critical work on this case. Mr. Bharara also thanked the many federal, state, and tribal officials who worked tirelessly on this matter. The litigation of this case was assisted by EPA personnel from around the country; the U.S. Fish & Wildlife Service and Bureau of Land Management of the U.S. Department of the Interior; the National Oceanic and Atmospheric Administration of the U.S. Department of Commerce; the U.S. Nuclear Regulatory Commission; the U.S. Forest Service of the U.S. Department of Agriculture; and the U.S. Department of Defense, as well as numerous state governments and the Navajo Nation.
This case was handled by the Environmental Protection Unit and the Tax and Bankruptcy Unit of the SDNY’s Civil Division. Assistant U.S. Attorneys Robert William Yalen and Joseph Pantoja, along with Alan S. Tenenbaum, Katherine Kane, Frederick S. Phillips, Marcello Mollo, and Erica Pencak of ENRD, are in charge of this case.
United States Announces $5.15 Billion Settlement <br /> of Litigation Against Subsidiaries of Anadarko Petroleum Corp. to Remedy Fraudulent Conveyance <br /> Designed to Evade Environmental LiabilitiesRead the Press Release
WASHINGTON – The United States has entered into a settlement agreement with the Kerr-McGee Corporation and certain of its affiliates (“New Kerr-McGee”), and their parent Anadarko Petroleum Corporation, in a fraudulent conveyance case brought by the United States and co-plaintiff Anadarko Litigation Trust (the “Trust”) in the bankruptcy of Tronox Inc. and its subsidiaries (Tronox), announced Deputy Attorney General James Cole, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resource Division Robert G. Dreher, U.S. Attorney for the Southern District of New York Preet Bharara, and U.S. Environmental Protection Agency Assistant Administrator Cynthia Giles.
The bankruptcy court had previously found, in December 2013, that the historic Kerr-McGee Corporation (“Old Kerr-McGee”) fraudulently conveyed assets to New Kerr-McGee to evade its debts, including its liability for environmental clean-up at contaminated sites around the country. Pursuant to the settlement agreement, the defendants agree to pay $5.15 billion to settle the case, of which approximately $4.4 billion will be paid to fund environmental clean-up and for environmental claims. This is the largest environmental enforcement recovery ever by the Department of Justice.
“Kerr-McGee's businesses all over this country left significant, lasting environmental damage in their wake,” said Deputy Attorney General Cole. “It tried to shed its responsibility for this environmental damage and stick the United States taxpayers with the huge cleanup bill. Through a lot of hard work, we uncovered this fraud and recovered over $5 billion dollars for the American people. This settlement demonstrates the Justice Department’s firm commitment to preventing and combating all forms of fraud and to securing environmental justice.”
“If you are responsible for 85 years of poisoning the earth, then you are responsible for cleaning it up,” said U.S. Attorney Bharara. “That’s why this case was brought. And that’s why the defendants are paying a record $5.15 billion -- to fund that colossal cleanup and to make things right. The company tried to keep its rewards and shed its responsibilities by playing a corporate shell game, putting its profitable oil-and-gas business in a new entity and leaving behind a bankrupt shell holding the environmental liabilities of the defunct, polluting lines of business. The company tried to cleanse its valuable business from its toxic legacy liabilities. Now the defendants will pay to cleanse the land and water.”“Today's settlement is a just resolution of an historic injustice to the American people and our environment,” said Acting Assistant Attorney General Dreher. “The money recovered will result in clean-ups of a toxic history the Old Kerr-McGee unsuccessfully tried to walk away from.”
“EPA’s vigorous pursuit of this case will have a big return for communities across the country,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “Companies that pollute can’t escape their responsibility to pay for the cleanup. EPA will continue to fight for those affected by pollution.”
The Fraudulent Conveyance
According to the complaints of the government and the litigation trust created to pursue Tronox’s fraudulent conveyance claims on behalf its environmental and torts creditors and the Dec. 12, 2013, written opinion of U.S. Bankruptcy Judge Allan L. Gropper:
Old Kerr-McGee operated numerous businesses, which included uranium mining, the processing of radioactive thorium, creosote wood treating, and manufacture of perchlorate, a component of rocket fuel. These operations left contamination across the nation, including radioactive uranium waste across the Navajo Nation; radioactive thorium in Chicago and West Chicago, Illinois; creosote waste in the Northeast, the Midwest, and the South; and perchlorate waste in Nevada.
In the years prior to 2005, Old Kerr-McGee concluded that the liabilities associated with this environmental contamination were a drag on its business, the exploration and production of oil and gas. With the intent of evading these and other liabilities, Old Kerr-McGee created a new corporate entity – defendant New Kerr-McGee – and, through a scheme executed in 2002 and 2005, transferred its valuable oil and gas exploration assets to the new company. The legacy environmental liabilities were left behind in the old company, which was re-named Tronox, and spun off as a separate company in 2006. As a result of these transactions, Tronox was rendered insolvent and unable to pay its environmental and other liabilities. In 2009, Tronox went into bankruptcy.
The United States and the bankruptcy estate (now represented by the Trust) brought this lawsuit to hold the defendants accountable and require them to repay the value of the assets fraudulently conveyed from Old Kerr-McGee.
In its decision, the court found that Old Kerr-McGee transferred assets with the intent to hinder or delay creditors, in particular environmental creditors, and also transferred those assets for less than their fair value, which left Tronox insolvent, unable to pay its debts when they came due, and undercapitalized. Among other things, the court concluded that:
“[T]here can be no dispute that Kerr-McGee acted to free substantially all its assets – certainly its most valuable assets – from 85 years of environmental and tort liabilities.”The Settlement
Under today’s settlement agreement, the defendants will pay $5.15 billion to the trust to settle the fraudulent conveyance case. Pursuant to a 2011 agreement between the United States, certain state, local, and tribal governments, and the bankruptcy estate, approximately 88 percent of the net proceeds of this litigation will be distributed by the trust to the United States, certain state governments, the Navajo Nation, and environmental trusts created to clean up the contaminated sites. The 2011 settlement agreement provides specific percentages of this funding that will be made available to each site.
As a result of these agreements, some of the key recoveries for environmental claims and for clean-up of environmental sites are estimated to be the following:
• $1.1 billion will be paid to a trust charged with cleaning up two dozen contaminated sites around the country, including the Kerr-McGee Superfund Site in Columbus, Miss.
• $1.1 billion will be paid to a trust responsible for cleaning up a former chemical manufacturing site in Nevada that has led to contamination in Lake Mead. Lake Mead feeds into the Colorado River, a major source of drinking water in the Southwest.
• Approximately $985 million will be paid to U.S. EPA to fund the clean-up of approximately 50 abandoned uranium mines in and around the Navajo Nation, where radioactive waste remains from Kerr-McGee mining operations. Additionally, the Navajo Nation will receive more than $43 million to address radioactive waste left at the former Kerr-McGee uranium mill in Shiprock, N.M.
• Approximately $224 million will be paid to U.S. EPA for clean-up of thorium contamination at the Welsbach Superfund Site in Gloucester, N.J.
• Approximately $217 million will be paid to the federal Superfund in repayment of costs previously incurred by EPA’s clean-up of the Federal Creosote Superfund Site in Manville, N.J.
Additional amounts will be paid to the United States, states, Navajo Nation, and environmental trusts for other environmental claims and contaminated sites.
The settlement agreement will be lodged with the U.S. Bankruptcy Court for the Southern District of New York for a period of at least 30 days before it is submitted for the court’s approval, in order to provide public notice and to afford members of the public the opportunity to comment on the settlement agreement.
* * *
The litigation of this case was assisted by EPA personnel from around the country; the U.S. Fish & Wildlife Service and Bureau of Land Management of the U.S. Department of the Interior; the National Oceanic and Atmospheric Administration of the U.S. Department of Commerce; the U.S. Nuclear Regulatory Commission; the U.S. Forest Service of the U.S. Department of Agriculture; the U.S. Department of Defense as well as numerous state governments and the Navajo Nation.
This case was handled by Assistant U.S. Attorneys Robert William Yalen and Joseph Pantoja of the Southern District of New York, and by Alan S. Tenenbaum, Katherine Kane, Frederick S. Phillips, Marcello Mollo, and Erica Pencak of the Justice Department’s Environment and Natural Resource Division.The consent decrees are available at the following link: http://www.justice.gov/enrd/Consent_Decrees.html.
Related Materials:
Fact Sheet
Settlement Proceeds Chart
MapUnilever Pays $4.5 Million for Violating Clean Water Act at Connecticut FacilityRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance, and Commissioner Robert Klee of the Connecticut Department of Energy and Environmental Protection announced that CONOPCO, INC., doing business as UNILEVER HOME & PERSONAL CARE USA, (“Unilever”) was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to three years of probation and a $1 million fine for violating the Clean Water Act at its former manufacturing site in Clinton in 2008. As part of the resolution of this case, Unilever also is contributing $3.5 million to state and local environmental programs, and instituting a new environmental compliance program at its U.S. manufacturing facilities.
“The environmental integrity of Connecticut’s rivers and the Long Island Sound are of essential importance to our state and all of us,” said U.S. Attorney Daly. “As this prosecution so clearly demonstrates, we will pursue all violations of federal laws to protect our waters. We recognize and thank the EPA for their invaluable work in this investigation, and commend Unilever for redressing their violations by contributing $2.5 million to fund research, outreach and education projects related to the effects of rising sea levels, and $1 million to construct a fishway in Clinton and for other environmentally projects in the lower Hammonasset River watershed. The Company’s contributions will directly assist the State of Connecticut in its efforts to protect and preserve our environment.”
“This case started with Unilever’s criminal conduct and is ending with a big return to the communities,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “Unilever is taking responsibility for its illegal actions by funding important environmental research and development. This work is critical to protect communities, and help them prepare for the effects of climate change.”
“This case sends a strong message that everyone must obey our environmental laws and regulations – they are designed to protect natural resources and the public health and will be enforced,” said DEEP Commissioner Robert Klee. “In addition, this resolution provides funding for important local projects as well as supports the launch of the Connecticut Institute for Resiliency and Climate Adaptation at the University of Connecticut’s Avery Point campus, where important work will be done to help our residents and communities address challenges being posed by the changing climate.”
According to court documents and statements made in court, Unilever’s Clinton manufacturing facility produced a variety of health and beauty products for sale in the United States. The wastewater produced by the plant was regulated by a permit that prohibited the company from bypassing any portion of its wastewater treatment system unless the bypass was unanticipated, unavoidable, and necessary to prevent loss of life, personal injury or severe property damage. The permit further required that Unilever notify authorities within two hours of becoming aware of any bypass, and submit a written report within five days setting forth the cause of the problem, the duration of the event including dates and times, and corrective actions taken or planned to prevent future occurrences.
On December 5, 2008, at approximately 3:00 p.m., a third party contract employee noticed that a hose was being used to bypass the industrial process wastewater treatment system by allowing the contents of a 4,500 gallon vacuum filter filtrate tank to discharge directly to a storm drain pipe that led to Hayden Creek. Upon making this discovery, the contract employee alerted the junior wastewater treatment operator for the Clinton facility and showed him the hose and ongoing wastewater bypass. These two individuals then shut off the hose at approximately 3:10 p.m.
At 3:30 p.m., the contract employee notified his non-Unilever supervisor about his observations, and was urged to notify the Safety, Health and Environmental (SHE) manager of the Clinton facility. The SHE manager received a call from the contract employee between 3:30 and 3:45 p.m. After asking the contract employee to send her an email describing his observations, the SHE manager went to the waste treatment area between 3:45 and 4:00 p.m. and observed foamy water and signs of recent discharge at the inlet of the storm drain pipe. The SHE manager notified the plant manager, took pictures, and observed the downstream oil/water separator. Despite the requirement that the Connecticut Department of Energy and Environmental Protection (DEEP) be notified within two hours of the detection of such a bypass, Unilever chose not notify the DEEP within this two-hour window.
On December 6, 2008, the SHE manager referred the matter to counsel for Unilever for further investigation and notification of DEEP. The next day, in response to the SHE manager’s request, the contract employee sent the SHE manager an email detailing his observations of the bypass and stating “[t]his is not the first time I’ve seen this done at your facility, I’ve seen this on two previous occasions. At that time, however, I was still trying to learn the system as quickly as possible and didn’t understand the significance of what I was viewing.” In the email, the contract employee opined that the senior operator had performed the intentional bypass and had “done this on several occasions, and perhaps more often than we care to know.”
On December 8, 2008, three days after being notified of the illegal discharge, the Unilever plant manager interviewed the two wastewater treatment operators and the contract employee who had initially discovered the bypass. All three individuals denied any responsibility for the bypass and indicated that they did not know who was responsible, although the contract employee again stated that he believed that the senior operator was responsible. From these interviews, the plant manager did not determine who was responsible for the bypass or confirm whether any prior bypasses had occurred. Later that day, the plant manager sent an email to his superior within the organization indicating that “we had somebody by pass [sic] the waste treatment process and put water into the storm water system . . .working with legal on how to handle the DEP [sic], if at all.”
On December 8, a DEEP compliance inspector was on-site at the Clinton facility for an unrelated reason. Unilever again failed to notify the on-site DEEP representative of the bypass that had occurred. On approximately December 10, Unilever notified the DEEP for the first time of the discharge that occurred five days earlier on December 5. This written notification occurred within the required five-day time period for the mandatory written report. Unilever also disclosed the discharge to the U.S. Environmental Protection Agency (EPA) in a written submission dated December 16, 2008.
Unilever conducted its own internal investigation of the December 2008 incident. In subsequent conversations and written communications with federal and state authorities throughout 2009 and 2010, Unilever claimed it was unable to conclusively determine who was responsible for the bypass, and mischaracterized the incident as an isolated, “one-off” incident that may have been the work of unknown “vandals.”
An extensive EPA investigation revealed the truth about what had happened. The junior operator admitted to the EPA that he intentionally bypassed the system on December 5. EPA further concluded that for an extended period of time, perhaps as long as two years prior to December 2008, the wastewater treatment operators routinely bypassed the system on a weekly basis, discharging approximately 1,500 gallons of partially treated wastewater at a time to the storm drain that led to Hayden Creek. EPA’s investigation established that these bypasses were concealed from and unknown to Unilever management, including the SHE manager and the plant manager. Unilever’s management was aware, however, both that the operators were not properly overseeing the wastewater treatment system and that the system was not properly functioning:
- The strength, flow, and variability of the facility’s wastewater made it difficult to treat. System upsets and capacity limitations often necessitated that wastewater be trucked off-site for treatment at a cost of approximately $1500 per truckload. The treatment system operators had authority to call for trucking if needed for wastewater treatment.
- Portions of the treatment system were old and in need of repair and maintenance. Equipment replacements and system improvements recommended by outside consultants were not fully implemented, although some corrective measures were completed.
- The treatment system required constant operator attention and adjustment. Nevertheless, during 2008, the senior operator was often absent. The junior operator did not possess the required license or training to qualify him to operate the system independently for extended periods of time without supervision, yet he was allowed by Unilever to do so.
- Although the waste treatment operators were licensed by the State of Connecticut and subject to applicable permit requirements, they required oversight to properly operate the plant. That oversight was inconsistent and the operators were allowed to act autonomously.
In December 2012, Unilever ceased manufacturing operations at the Clinton facility.
On December 5, 2013, Unilever pleaded guilty to two counts of knowingly violating, or causing to be violated, the Clean Water Act.
Today, Unilever made a $3.5 million payment to the Connecticut Statewide Supplemental Environmental Project Account (SEP) administered by DEEP. Of that money, $2.5 million will be directed to the Connecticut Institute for Resiliency and Climate Adaptation at the University of Connecticut’s Avery Point campus, which will conduct research, outreach and education projects related to the effects of rising sea levels. In addition, $500,000 will be used to design and construct a fishway at the Chapman Mill Pond in Clinton, and $500,000 will be used to fund various water quality or ecosystem restoration projects in the lower Hammonasset River watershed.
Unilever also has agreed to periodic environmental compliance inspections by an outside auditor at all of its manufacturing locations in the U.S, and to certify, within one year of sentencing, that all of its employees at these facilities who perform or manage work subject to environmental compliance requirements have received basic environmental compliance training. In addition, all Unilever employees who are responsible for advising these facilities with respect to mandatory notifications to be made to state and federal environmental agencies must complete additional training to ensure they understand the legal notification requirements under applicable environmental laws.
This matter was investigated by the U.S. Environmental Protection Agency and the Connecticut Department of Energy and Environmental Protection. The case was prosecuted by Assistant U.S. Attorney Ray Miller and Special Assistant U.S. Attorney Peter Kenyon.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]U.S. V. Joseph Mazella Highlighted on CNBC's American GreedRead the Press Release
http://video.cnbc.com/gallery/?video=3000262923
U.S. Department of Justice to Mark National Crime Victims’ Rights WeekRead the Press Release
The rights of crime victims will be commemorated during the week of April 6-12 by the U.S. Department of Justice and in communities throughout the country.
According to the Department’s Office for Victims of Crime (OVC), in 1984, Congress passed the bipartisan Victims of Crime Act (VOCA) which created a national fund to compensate victims for financial and other losses suffered as a result of crimes committed against them. In addition, VOCA money provides money to states in order to fund victim services.
The fund is not financed by taxpayers but through fines and penalties paid by offenders. The fund supports services such as rape crisis treatment, domestic violence programs and victim compensation for expenses, including counseling and lost wages. Every state now has victims’ rights laws and compensation programs and over 10,000 victim service agencies now help people throughout the country.
Middle District U.S. Attorney Peter Smith noted that, central Pennsylvania has one of the most active federal victim rights programs in the nation. It has provided direct services to 7552 victims of fraud schemes, child exploitation and violent crimes prosecuted by the U.S. Attorney’s Office in the past four years. In addition, 196,310 persons received notices of the status of cases in which they were victims. The Victim/Witness programs contact person in the United States Attorney’s Office is the Specialist Laurie Reiley. The Office’s Victim’s Rights and Asset Recovery Unit is headed by Assistant United States Attorney James Clancy.
More information about National Crime Victims’ Rights Week can be obtained from the OVC website www.ovc.gov. Information concerning the Middle District of Pennsylvania’s U.S. Attorney’s Office’s Victim Rights program is available at the office’s website and by contacting the Victim/Witness Specialist at 717-221-4482.
* * * *U.S. Attorney Goodwin to Speak at Statewide Child Abuse Conference in MorgantownRead the Press Release
***MEDIA ADVISORY***
CHARLESTON, W.Va. – United States Attorney Booth Goodwin will deliver remarks during the West Virginia Child Advocacy Network’s first statewide conference at the Lakeview Resort in Morgantown, W,Va. on Friday, April 4, 2014 at 9:00 a.m. The conference, attended by approximately 160 professionals, will promote best practices, updates and trends in the child abuse field.
Goodwin will discuss various topics, including an update on a pilot project aimed at preventing and mitigating the impact of trauma on children exposed to violence – “Handle With Care” – and other key issues that are critical to a collaborative response by law enforcement, schools and mental health professionals to crimes against children.The West Virginia Child Advocacy Network (WVCAN) 2014 Conference, held April 3 – 4, 2014, is a partnership among WV CAN, West Virginia Children’s Justice Task Force, Sisters of Joseph Health & Wellness Foundation, Claude Worthington Benedum Foundation and the United States Attorney’s Office for the Southern District of West Virginia.
For additional information, visit West Virginia Child Advocacy Network.WHO: U.S. Attorney Booth Goodwin
WHAT: West Virginia Child Advocacy Network 2014 Conference
WHEN: Friday, April 4, 2014
TIME: 9:00 a.m.
WHERE: Lakeview Resort, MorgantownTwo Utah Men Sentenced to Prison for Two Years for Filing False Tax Returns that Understated IncomeRead the Press Release
SALT LAKE CITY - Two residents of Utah were sentenced to two-year prison sentences in U.S. District Court in Salt Lake City this week after pleading guilty to filing false tax returns that understated their income.
U.S. District Court Judge Clark Waddoups sentenced Larry Oral Bosh, age 46, of Nephi, to two years in federal prison and one year of supervised release after he concludes the prison sentence. Bosh must pay restitution of $563,672 to the IRS. The sentenced was imposed Tuesday afternoon.
In a plea agreement reached with federal prosecutors, Bosh admitted that from June 2007 through October 2008, he earned a substantial income from Evolution Developments, LLC and Clover Creek, LLC. He admitted he willfully failed to accurately report this income to the IRS. According to the indictment in the case, Bosh reported $5,502 in income during 2008, under-reporting his income by $1,732,502.
In the plea agreement, Bosh admitted that around April 20, 2010, he prepared, signed and filed a false individual tax return for tax year 2008. He admitted that as a result of those actions, he owed the IRS $563,672.
In a separate case, U.S. District Judge David Nuffer sentenced David Shawn Benson, age 40, of Ivins, Utah, to two years in prison and one year of supervised release for filing a false tax return. Benson was sentenced Tuesday.
According to the indictment charging Benson, he reported $37,982 in income during 2008, under-reporting his income by $1,902,109.
As a part of a plea agreement with federal prosecutors, Benson admitted that from June 2007 through October 2008, he earned substantial income from SHB Enterprises, LLC and Evolution Developments, LLC. He admitted he willfully failed to report this income to the IRS. On April 12, 2010, he prepared, signed, and filed a false individual tax return with the IRS knowing that it understated the taxable income he earned during tax year 2008. Judge Nuffer ordered Benson to pay $610,467 in restitution to the IRS.
The cases were investigated by special agents of IRS Criminal Investigation and prosecuted by the U.S. Attorney’s Office in Utah.
Trenton Man Sentenced to Eight Years in Prison for Possession of Three Guns, Including Loaded Semi-Automatic RifleRead the Press Release
TRENTON, N.J. – A Trenton, N.J., man with a previous conviction for drug distribution was sentenced today to 96 months in prison for possessing three firearms, including a loaded semi-automatic rifle and a loaded revolver, U.S. Attorney Paul J. Fishman announced.
Isaiah Harris, 26, previously pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging him with one count of being a convicted felon in possession of firearms and ammunition. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
At approximately 6:00 a.m. on Nov. 15, 2012, law enforcement officers entered a residence on Stuyvesant Avenue in Trenton to execute an unrelated warrant for Harris’ arrest and encountered Harris in a bedroom on the second floor. They recovered a loaded Taurus .38-caliber revolver from the bed Harris had been occupying and later discovered in the bedroom a loaded Norinco SKS, 7.62 semi-automatic rifle and a partially disassembled second Norinco SKS, 7.62 semi-automatic rifle. Harris admitted at his plea hearing that he possessed these weapons.
In addition to the prison term, Judge Shipp sentenced Harris to three years of supervised release, ordered him to forfeit the firearms and ammunition and fined him $1,000.
U.S. Attorney Fishman credited special agents and task force officers of the ATF’s Trenton Field Office, under the direction of Acting Special Agent in Charge George Belsky in Newark, N.J., and law enforcement officers from the Trenton Police Department, under the direction of Police Director Ralph Rivera Jr.; the Mercer County Sheriff’s Office, under the direction of Sheriff John Kemler; and the Mercer County Prosecutor’s Office, under the direction of Prosecutor Joseph L. Bocchini Jr., for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney John E. Clabby of the U.S. Attorney’s Office Criminal Division in Trenton.14-118
Defense counsel: Assistant Federal Public Defender Lisa Van Hoeck Esq., Trenton
Tracy Woman Pleads Guilty to Embezzling from Health Plan of San Joaquin and Agilent TechnologiesRead the Press Release
SACRAMENTO, Calif. — Shanika Brewer, 35, of Tracy, pleaded guilty today to embezzling from a healthcare program and mail fraud relating to a separate embezzlement, United States Attorney Benjamin B. Wagner announced.
According to court documents, from 2008 until 2011, Brewer worked in the accounts payable department of a Walnut Creek company at first called Varian, Inc., which later was acquired by Agilent Technologies, Inc. During her employment, Brewer entered false information into the company’s accounting system that caused other departments to issue checks to vendors who provided personal goods and services to Brewer. Brewer intercepted the checks and took them home to Tracy and mailed them out to pay her student loans, mortgage payments, and home improvements. She also used company funds to pay for her children’s school tuition and to deposit into her personal bank account. Brewer caused the issuance of hundreds of checks for her own benefit totaling over $800,000.
In December 2012, Brewer was hired by Health Plan of San Joaquin, which provides and administers medical benefits and services for employees of San Joaquin County. As the Assistant Controller, Brewer reorganized the accounts payable department. She began manufacturing false invoices for legitimate vendors as well as fictitious companies. Brewer signed the invoices, forging the names of other Health Plan or San Joaquin County employees. After submitting the invoices, she obtained checks that she took home to use for her own benefit. Brewer caused approximately $100,000 in losses and expenses to the Health Plan.
“This case came to our office due to the great work of the IMPACT Unit of the San Joaquin County District Attorney’s Investigative Bureau. When the IMPACT Unit’s investigation of the Health Plan of San Joaquin embezzlement led to evidence that Brewer had embezzled from her prior employer outside of San Joaquin County, the Unit began working with the FBI,” said U.S. Attorney Wagner. “This type of state and federal teamwork is a prime example of how cooperation results in fast, efficient, and appropriate resolution of cases affecting employers throughout California.”
“Brewer abused her position as a trusted employee to craft an elaborate scheme to embezzle over $800,000 over the course of five years. The money was used to support a lifestyle for her and her family that was well beyond her legitimate earnings,” said Special Agent in Charge Monica M. Miller of the Sacramento Field office of the Federal Bureau of Investigation. “Identifying and investigating financial fraud such as this protects the health of our economy and, in the case of fraud against the health care industry, ensures that our citizens continue receive the best possible health care that they have come to expect.”
San Joaquin County District Attorney James P. Willett advised the County’s employers and businesses “to enforce strong checks and balances over their finances and financial records,” noting that it was only due to the “vigilance of First Premier Bank of South Dakota, which alerted the County that County funds were paying Brewer’s personal credit card bill, that this embezzlement from the San Joaquin Health Plan was detected and stopped in six months. In most cases, once the method of embezzlement is established the embezzlement goes on for years.”
This case was the product of an investigation by the San Joaquin County District Attorney Investigations Bureau, IMPACT Unit and the Federal Bureau of Investigation. Assistant United States Attorney Jean M. Hobler is prosecuting the case.
Brewer is scheduled to be sentenced by Chief United States District Judge Morrison C. England Jr. on June 26, 2014. Brewer faces a maximum statutory penalty of 10 years in prison and a $250,000 fine or up to two times the embezzled funds. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was done in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the Task Force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
Three Women Indicted for Tax FraudRead the Press Release
A 29-count federal indictment was filed charging three women for their roles in a tax fraud conspiracy in which they fraudulently claimed and received more than $436,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Kathy Enstrom, IRS-Criminal Investigation Special Agent in Charge.
Indicted are Erica Harris, 32, and Shaunte Harris, 29, both of Toledo, and Latoya Gilmer, 29, of Detroit. The charges relate to conspiracy to defraud the government with respect to claims and false, fictitious, or fraudulent claims from 2009 through April 2010.
Harris, Gilmer and Harris approached individuals with little or no income and offered them a portion of the fraudulent tax refunds in exchange for their personal information and that of their children. Then the defendants filed false returns electronically, reporting false wages, false Social Security benefits and false 1099 withholding amounts typically exceeding $10,000, according to the indictment.
Collectively, they filed more than 40 false tax returns and received fraudulent returns totaling approximately $436,036, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Internal Revenue Service in Toledo. The case is being handled by Assistant United States Attorney Alissa M. Sterling
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Tahlequah Man Sentenced to 120 Months for Possession of Stolen FirearmRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that JUSTIN JAMES WALKER, age 28, of Tahlequah, Oklahoma, was sentenced to 120 months imprisonment, followed by 3 years of supervised release Possession of Stolen Firearm, in violation of Title 18, United States Code, Section 922(j).
Charges arose from an investigation by the Tahlequah Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The defendant was indicted in January, 2013 and pled guilty in October, 2013.
The Indictment alleged that on or about August 25, 2012, within the Eastern District of Oklahoma, the defendant did receive, conceal, store, barter, sell or dispose of a stolen firearm, to wit: Mossberg, Mode1500ATP, 12 Gauge Shotgun, bearing serial number Jl50578, which had been shipped or transported in interstate or foreign commerce, either before or after it was stolen, knowing or having reasonable cause to believe said firearm had been stolen.
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 the custody of the United States Marshal Service pending transportation to the designated federal prison at which he will serve his nonparolable sentence.
Assistant United States Attorney Kyle Waters represented the United States.
Sugar Land Resident Ordered Detained on Child Pornography ChargesRead the Press Release
HOUSTON – Glenn Casey Portwood, 52, of Sugar Land, has been ordered held in custody pending trial on child pornography charges, announced United States Attorney Kenneth Magidson.
Portwood was charged in a sealed indictment, returned March 20, 2014, for two counts of receipt of child pornography, one count of attempted distribution of child pornography and one count of possession of child pornography. He was taken into custody Tuesday, April 2, 2014. Today, he appeared before U.S. Magistrate Judge Frances Stacy, who found probably cause he committed the crimes charged against him. Judge Stacy further noted him to be a danger to the community and a flight risk and ordered he remain in federal custody pending further criminal proceedings. He is currently set for trial May 19, 2014.
Portwood came to the attention of law enforcement on Sept. 12, 2012, when an officer was investigating peer-to-peer file sharing programs on the Internet. According to allegations, he determined that a computer was sharing child pornography and traced that computer to the Internet account of Portwood.
On Sept. 26, 2012, officers executed a search warrant at Portwood’s house. At that time, officers found a Honda parked in the driveway which was registered to Portwood and inside its trunk was a black backpack, according to allegations. Officers allegedly discovered several CDs, an external hard drive and two laptop computers inside the bag. According to the charges, one of the CDs was labeled “VCKY 2004” and officers found a folder named “Vicky” with movie files containing child pornography. Four of the CDs allegedly contained child pornography, while a fifth CD depicted adult pornography involving women who were sleeping or drugged, according to the charges. The “Vicky” series is a widely traded child pornography series on the Internet.
At the detention hearing today, the government contended that upon forensic examination, images of child pornography were found on both of the laptops, to include approximately 325 images and 70 videos of child pornography along with approximately 2000 images of child erotica. In addition, the external hard drive was found to contain approximately 50,000 child pornography images and 1300 child pornography videos, according to the allegations. Officers allegedly found images and videos depicting babies and toddlers.
If convicted, Portwood faces a minimum of five and up to 20 years imprisonment for the receipt and distribution charges in addition to a maximum of 10 years on the possession charge. All charges, upon conviction, also carry a possible $250,000 fine. Upon completion of any prison term imposed, Portwood also faces a maximum of life on supervised release during which the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
The charges against Portwood are the result of an investigation conducted by the Sugar Land Police Department as part of the Houston Metro Internet Crimes Against Children Task Force and the FBI.
This case, prosecuted by Assistant U.S. Attorney Robert Stabe, 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."
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Stockton Woman Pleads Guilty to Credit Card ID Theft SchemeRead the Press Release
SACRAMENTO, Calif. —Frances Marie Charles, 35, resident of Stockton, pleaded guilty today to mail fraud and aggravated identity theft in connection with a fraudulent scheme to obtain replacement American Express credit cards, United States Attorney Benjamin B. Wagner announced.
According to court documents, from about June 2012 through December 2013, Charles participated in a scheme to fraudulently obtain over 215 replacement American Express credit cards in the names of at least 172 people, and to use the credit cards to obtain cash, goods, and services at the expense of American Express, banks, and merchants. Charles placed calls to American Express and used personal identifying information and financial information of victims to cause the replacement cards to be sent to Stockton, California, after which the cards would be used to make fraudulent charges and purchases. The total amount of attempted charges with the credit cards was well in excess of $400,000.
This case was the product of an investigation by the United States Secret Service. Assistant United States Attorney Christopher S. Hales is prosecuting the case.
Charles is in custody awaiting sentencing. She is scheduled to be sentenced by Judge Troy L. Nunley on June 19, 2014. Charles faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for mail fraud, and not less than 2 years imprisonment for aggravated identity theft, to run consecutively to the sentence for mail fraud. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
St. Johns County Man Pleads Guilty to Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Christopher Scott O’Brien, II (age 23, St. Johns) yesterday pleaded guilty to receiving child pornography over the Internet. O’Brien faces a mandatory minimum penalty of 5 years, up to 20 years in federal prison, and a potential life term of supervision. A sentencing date has not yet been set.
According to court documents, an agent with the Florida Department of Law Enforcement in Jacksonville began an undercover investigation to identify individuals in that area who had access to and/or were trading images and videos depicting child pornography over the Internet. The agent determined that a host computer in the area was hosting images of child pornography using a particular peer-to-peer file sharing program. The agent made successful connections to the host computer and successfully downloaded several video files depicting child pornography directly from the host computer. Further investigation revealed that the subscriber information traced back to O’Brien’s residence in St. Johns, Florida.
On February 26, 2013, FBI agents and other officers executed a search warrant at O’Brien’s residence and seized, among other things, several computers and other items of electronic media. O’Brien was at the residence and told the agents that he uses the same file sharing program as the one detected by the undercover agent. He stated that he only downloads videos and believed that he had four or five videos of child pornography on his computer, which he repeatedly watched and saved. He added that the children depicted in his collection of child pornography ranged from 8 to 15 years of age.
A subsequent analysis of O’Brien’s computer revealed that it contained approximately 838 videos, at least 50 of which depicted minors engaged in sexually explicit conduct.
This case was investigated by the Florida Department of Law Enforcement, the Federal Bureau of Investigation, and the St. Johns County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.