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16 May 2014
Bruno Acquitted of Honest Services Mail Fraud Involving BriberyRead the Press Release
ALBANY, NEW YORK – A federal jury in Albany found Joseph L. Bruno, the former New York State Senate Majority Leader, not guilty of honest-services mail fraud following a two week trial before the Honorable Gary L. Sharpe, Chief United States District Judge.
Today’s verdict follows a prior trial and two appeals. In December of 2009, a jury convicted Bruno of carrying out a scheme to defraud the State of New York and its citizens of the right to his honest services by soliciting private business from, and entering into financial relationships with, persons or entities who were pursuing interests before the New York State Legislature or other state agencies, and concealing and failing to disclose the existence and true nature of such financial relationships, and the resulting conflicts of interest, while taking discretionary official actions benefitting parties with whom he had those relationships. Then, in 2010, the United States Supreme Court decided United States v. Skilling, holding that the honest services statute criminalizes only fraudulent schemes involving bribes or kickbacks.
On November 16, 2011, the United States Court of Appeals for the Second Circuit issued an opinion vacating Bruno’s conviction and authorizing a retrial, as requested by the United States. The Court of Appeals noted that the jury had been instructed pursuant to the law in effect at the time of the trial, which had not required bribery or kickbacks to constitute honest services fraud, but the subsequent Skilling decision had changed the law. In determining that a retrial was proper, the Court of Appeals reviewed the case against the elements of honest services fraud as altered by Skilling and held that the evidence presented at trial was sufficient for a reasonable jury to find that Bruno engaged in a quid pro quo bribery scheme under the standard announced in Skilling.
On May 3, 2013, a federal grand jury returned a superseding indictment, and Bruno filed a motion to dismiss that indictment on double jeopardy grounds. Chief Judge Sharpe denied the motion, and Bruno filed an interlocutory appeal denied by the Second Circuit on August 6, 2013.
United States Attorney Hartunian said, “Although this was not the outcome we expected based on the evidence presented, we believe that justice is served when a case is fully and fairly adjudicated before an impartial, attentive jury who listened to facts that were presented and tested by talented lawyers on both sides of the issue; that is what happened here, and we accept the jury’s verdict. We bring cases based on the facts and the law, not popularity or other good works, and we do not shy away from difficult cases, especially those involving the conduct of public officials who intertwine personal business and the public trust. No less than the Court of Appeals for the Second Circuit examined this case and found that there was sufficient evidence of a quid pro quo bribery scheme for a reasonable jury to convict Mr. Bruno on these counts. As the history of this case demonstrates, whether Mr. Bruno’s conduct constituted a federal crime needed to be decided by a jury.”
The investigation which led to this indictment was conducted by the Albany Division of the Federal Bureau of Investigation. The United States was represented in this prosecution by Assistant United States Attorneys Elizabeth C. Coombe and William C. Pericak.
Brownsville Man Pleads Guilty to Money Laundering ConspiracyRead the Press Release
BROWNSVILLE, Texas – Oscar J. Aguilar, 37, a Mexican citizen legally residing in Brownsville, has entered a guilty plea to conspiring to commit international money laundering, announced United States Attorney Kenneth Magidson along with Janice Ayala, special agent in charge of Homeland Security Investigations (HSI) in San Antonio.
Aguilar has admitted to recruiting nine others, some of whom were family members, to open bank accounts at Bank of America in Brownsville. Later, co-conspirators in Florida would deposit money from narcotics sales into the accounts. Aguilar’s recruits withdrew the money in amounts under the $10,000 reporting requirement and would give that money to Aguilar or other co-conspirators. The recruits were paid for moving the money through their bank accounts.
After Aguilar received the money, he facilitated its crossing from Brownsville to Matamoros, Mexico, where it was delivered to the Gulf Cartel.
From September 2008 through November 2012, the conspirators moved approximately $1,893,170 through nine bank accounts, with nearly $1.5 million from September 2011 through November 2012 alone.
“HSI Special Agents often investigate complex financial schemes in order to disrupt and dismantle the ongoing operations of transnational criminal organization,” said Ayala. “These investigations deprive the organizations from enjoying the benefits of these illicit proceeds, and prevent them from furthering the efforts of the ongoing criminal enterprise. We will continue to aggressively investigate fraudulent financial schemes that put in jeopardy the integrity of our financial system.”
Nine others have been convicted in relation to this case. With the exception of Francisco Jesus Arambul-Cortez, who also pleaded to conspiracy to commit International money laundering, the eight others entered guilty pleas to operating an unlicensed money transmitting business.
Aguilar entered his plea today before U.S. Magistrate Judge Ronald G. Morgan. He will remain in custody pending his sentencing hearing, set for Aug. 18, 2014, before U.S. District Judge Andrew S. Hanen. At that time, he faces up to 20 years in prison and a possible fine of $500,000.
This case was investigated by Homeland Security Investigations and is being prosecuted by Assistant United States Attorneys Karen Betancourt and Joseph Leonard.
Bridgeport Grocery Store Operators Charged with Food Stamp FraudRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that KHALID ABOUTAYEB, 45, of Bridgeport, and his sister, JAMILA ABOUTAYEB, 54, of Fairfield, were arrested yesterday on federal food stamp fraud charges.
On May 14, 2014, a grand jury in New Haven returned separate indictments charging KHALID and JAMILA ABOUTAYEB with engaging in food stamp fraud at the M&J Deli Market, a grocery and convenience store they operated at 988 State Street in Bridgeport. Following their arrests, the ABOUTAYEBS appeared before U.S. Magistrate Judge Holly B. Fitzsimmons in Bridgeport. Both defendants are currently detained.
The federal Supplemental Nutrition and Assistance Program (“SNAP”) is administered by the USDA’s Food and Nutrition Service and utilizes federal tax dollars to subsidize low-income households to provide them with the opportunity to achieve a more nutritious diet by increasing their food-purchasing power. SNAP recipients purchase eligible food items at retail food stores through the use of an Electronic Benefits Transfer (EBT) card, and SNAP benefits may be accepted by authorized retailers only in exchange for eligible items. Items such as alcoholic beverages, cigarettes, paper goods and soaps are not eligible for purchase with Food Stamp benefits, and it is a violation of the rules and regulations governing the food stamp program to allow benefits to be used to purchase ineligible items. SNAP benefits may not lawfully be exchanged for cash under any circumstances. The program is designed so that the total amount of each purchase is electronically transferred to the retailer’s designated bank account.
The indictment against KHALID ABOUTABYEB alleges that he unlawfully exchanged customers’ food stamp benefits for ineligible items and cash at M&J Deli Market between approximately December 2011 and February 2013. The indictment against JAMILA ABOUTAYEB alleges that she unlawfully exchanged food stamp benefits for ineligible items and cash at the store between approximately June 2013 and March 2014.
According to statements made in court, the investigation has revealed that approximately $285,000 in illegal SNAP benefits were redeemed at the store.
If convicted, KHALID and JAMILA ABOUTAYEB face a maximum term of imprisonment of five years and a fine of up to $250,000.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the U.S. Department of Agriculture, Office of Inspector General, and is being prosecuted by Assistant U.S. Attorney Felice M. Duffy.
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(203) 821-3722 [email protected]Branford Woman Who Structured Cash Transactions Is SentencedRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAWN M. GUARINO, also known as Dawn DeCapua Guarino, 54, of Branford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to two years of probation, during which she must perform 100 hours of community service, for structuring currency transactions to evade reporting requirements. GUARINO pleaded guilty to the offense on January 30, 2014.
Federal law requires all financial institutions to file a Currency Transaction Report (CTR) for currency transactions that exceed $10,000. To evade the filing of a CTR, individuals will often structure their currency transactions so that no single transaction exceeds $10,000. Structuring involves the repeated depositing or withdrawal of amounts of cash less than the $10,000 limit, or the splitting of a cash transaction that exceeds $10,000 into smaller cash transactions in an effort to avoid the reporting requirements. Even if the deposited funds are derived from a legitimate means, financial transactions conducted in this manner are still in violation of federal criminal law.
According to court documents and statements made in court, over the course of 18 days in October and November 2009, GUARINO cashed 18 checks made payable to her in the amount of $9,900 and totaling $178,200. The transactions occurred at 13 different branches of two banks in eight towns in the New Haven area. The checks, which were from her attorney, represented GUARINO’s portion of a settlement of a Connecticut civil lawsuit stemming from an automobile accident. At the time, GUARINO knew that the bank was required to issue a report for a currency transaction in excess of $10,000, and her intention was to evade the transaction reporting requirements.
On April 19, 2014, Judge Underhill ordered GUARINO to forfeit $13,000 based on the parties’ plea agreement. GUARINO paid the money prior to sentencing.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division and the U.S. Department of Education, Office of Inspector General. The case was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
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Tom Carson
(203) 821-3722 [email protected]Brandon Man Sentenced to More Than 7 Years for Stolen Identity Refund FraudRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington yesterday sentenced Anthony R. Reeves to seven years and three months in federal prison for multiple counts of wire fraud, theft of government property, and aggravated identity theft. As part of his sentence, the court also entered a money judgment in the amount of $69,585.59, a portion of the proceeds of the charged criminal conduct.
Reeves was found guilty on February 3, 2014, following a bench trial.
According to court documents, on May 8, 2012, Reeves was stopped by a Florida Highway Patrol (FHP) Trooper for speeding and other traffic infractions. After a drug canine alerted on the vehicle, the car was searched. During the search, the trooper found a backpack that contained a laptop, a plastic bag containing 35 debit cards, multiple cell phones, a notebook, and 54 medical records from the Department of Veterans Affairs (VA) James A. Haley Hospital in Tampa. The notebook contained lists of names, social security numbers, email addresses, credit card numbers, and cell phone numbers. The VA medical records contained the names and SSNs of patients. In total, Reeves had the personal identifying information (PII) of 69 veterans and 52 others in his possession. Reeves admitted that he purchased VA medical records from someone whom he knew who worked at the VA, and used the information to file fraudulent tax returns.
Law enforcement conducted an analysis of the laptop, which revealed that it had been used to access numerous debit card accounts in the names of the victims. The IRS then conducted an analysis of the returns associated with Reeves, based on the files on the computer and the identifiers found in his possession. Specifically, Reeves filed at least 71 fraudulent tax returns from tax years 2010 and 2011.
Special Agent in Charge Monty Stokes, Office of Inspector General, U.S. Department of Veterans Affairs said, “This case was the result of federal, state and local law enforcement agencies aggressively pursuing those who commit identity theft. Reeves is no stranger to the criminal justice system. This 7 year, 3 month sentence will hopefully be a deterrent for others, and give him some time to consider if it was really worth it.”
“Yesterday’s sentencing of Mr. Reeves is the final culmination of years of investigation, hard work and the combined efforts of the Internal Revenue Service, the Department of Veterans Affairs, the United States Attorney’s Office and the Florida Highway Patrol,” stated Florida Highway Patrol spokesman Steve Gaskins. “An alert Florida State Trooper conducting routine traffic enforcement, who looked beyond the traffic stop for criminal activity, has led to a highly successful conclusion whereby citizens and especially veterans benefit tremendously.”
This case was investigated by the Department of Veterans Affairs, the Internal Revenue Service - Criminal Investigation, and the Florida Highway Patrol. It was prosecuted by Assistant United States Attorney Sara C. Sweeney.
Bolton, Mississippi Resident Sentenced to Prison for Drug Trafficking and Money LaunderingRead the Press Release
Jackson, Miss - Kelvin Robinson, 46, of Bolton, Mississippi, was sentenced in U.S. District Court on May 15, 2014 to 172 months in prison for conspiracy to distribute over 1,000 kilograms of marijuana, and 120 months in prison for money laundering, announced U.S. Attorney Gregory K. Davis, Special Agent in Charge Gabriel Grchan of IRS Criminal Investigation - New Orleans Field Office, and Assistant Special Agent in Charge Floyd H. Baker of the Drug Enforcement Administration’s Jackson office. The sentences will be served concurrently.
Kelvin Robinson operated K&J Trucking in Bolton, Mississippi. From 2006 through 2012, he used his trucks to transport thousands of pounds of marijuana from the Texas/Mexico border into Mississippi. He laundered part of his drug proceeds by purchasing a car in another person’s name. Law enforcement agents seized $7,203.00 in cash, a 2009 Suzuki motorcycle, a 2002 Acura RL, and a 2002 BMW 754i.
“Thanks to the dedication and hard work of several state, local, and federal law enforcement agencies, another illegal drug trafficker has been brought to justice,” said U.S. Attorney Gregory Davis. “We will continue to seek out and prosecute those who bring drugs into the Southern District of Mississippi.”
Floyd H. Baker, Assistant Special Agent in Charge of the DEA in Jackson, stated: “These types of investigations are strong examples of the effectiveness of a combined effort by federal, state and local law enforcement agencies to bring drug trafficking organizations to justice.”
Gabriel L. Grchan, Special Agent in Charge, IRS – Criminal Investigation (New Orleans Field Office) stated: “Narcotics related money laundering violations, such as those committed by Kelvin Robinson, cause damage to the strength of both the local and national economy. Robinson attempted to buy a vehicle using illegal drug proceeds, which is a violation of the law. IRS-CI will continue to play an active role in the war on drugs. Individuals guilty of buying assets for the purpose of laundering their illegal drug profits will be prosecuted.”
Robinson’s three codefendants, Thomas G. Steward, age 54, of Houston, Texas, David Herrera, age 46, of Mercedes, Texas, and Jacqueline B. Bailey, age 49, of Clinton, Mississippi, are awaiting sentencing.
This case was investigated by the Organized Crime and Drug Enforcement Task Force headed by the DEA with assistance from the Criminal Investigation Division of the IRS, Hinds County Sheriff’s Office, Jackson Police Department, Ridgeland Police Department and Madison County Sheriff’s Office.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Anderson, Indiana Man Sentenced on Health Care Fraud ChargeRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on May 16, 2014, Donald Ray Keip, 39, of Anderson, Indiana, was sentenced on the one-count indictment charging that he engaged in a scheme to commit health care fraud in the United States District Court in Benton, Illinois. The district court sentenced Keip to serve five years of probation and 15 weekends in jail. The district court also ordered Keip to pay $12,000 in restitution to the Illinois Department of Human Services and $12,000 to the Center for Medicare and Medicaid Services. The court also ordered Keip to pay a special assessment of $100.00.
Keip admitted that he had submitted false and fraudulent bills in relation to his alleged performance of personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home. Keip admitted to falsely billing the program between June 30, 2011 and January 29, 2013, when he purportedly rendered personal assistant services to an individual when he, in fact, did not. As a result, Keip stole $24,000.00 in payments for services not performed.
The investigation was conducted by the U.S. Department of Health and Human Services -Office of Inspector General and the Illinois State Police - Medicaid Fraud Control Bureau. The case is being prosecuted by Assistant United States Attorney Liam Coonan.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General or call 800.447.8477.
Albuquerque Man Sentenced to Ten Years for Robbing US Bank in February 2013Read the Press Release
ALBUQUERQUE – Jay Patrick Mount, 36, of Albuquerque, N.M., was sentenced today to ten years in federal prison for his bank robbery conviction. Mount will be on supervised release for three years after completing his prison sentence.
Mount was arrested on Feb. 28, 2013, based on a criminal complaint alleging that he robbed the US Bank branch located at 1418 Carlisle Blvd. NE in Albuquerque on Feb. 25, 2013. Mount subsequently was charged with bank robbery in an indictment filed on March 27, 2013.
On Feb 5, 2014, Mount entered a guilty plea to the indictment. In his plea agreement, Mount admitted robbing the bank by presenting a demand note to a bank teller and taking money from the teller on Feb. 25, 2013. Mount acknowledged that the demand note threatened to harm the bank teller.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department and was prosecuted by Assistant U.S. Attorney William J. Pflugrath.
Afterschool Program Employee Indicted for Producing, Receiving, Distributing, and Possessing Child PornographyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced that RENE CARDONA, a former employee of an afterschool program in the Bronx, was indicted today on two counts of production of child pornography, two counts of receiving and distributing child pornography, and one count of possessing child pornography. CARDONA, who was previously arrested on April 30, 2014, has been detained since his arrest.
Manhattan U.S. Attorney Preet Bharara said: “Crimes involving the alleged exploitation of children are always distressing, but they are especially so where, as here, the defendant was entrusted to work with and mentor children.”
FBI Assistant Director-in-Charge George Venizelos said: “As alleged, during various times between 2011 and 2014, Cardona repeatedly exploited and jeopardized the well-being of innocent children. It is particularly disturbing when a crime like this is committed by an individual like Cardona who is entrusted to care for our children. Cardona’s acts are inexcusable and together with our law enforcement partners, the FBI remains committed to vigorously investigating and bringing to justice those who prey upon and harm our youngest members of society.”
According to the Indictment and the Complaint filed in Manhattan federal court:
In February 2014, CARDONA engaged in multiple chats over the Internet with an eleven-year-old male located in Guam. In those chats, CARDONA, who was aware of the victim’s age, induced the youth to take sexually explicit photographs of himself and to send the photographs to CARDONA. CARDONA also sent sexually explicit photographs of himself to the youth.
CARDONA, 22, faces a mandatory minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison for each count of production of child pornography. For each count of receipt and distribution of child pornography, CARDONA faces a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison, and for the one count of possession of child pornography, he faces a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
For information about the status of these federal criminal proceedings, victims may call the Victim Witness Coordinator for the United States Attorney’s Office at (866) 874-8900.
CARDONA is believed to have worked at the Betances Summer Camp and Afterschool Programs in the Bronx from 2012 to approximately 2014, and thereafter as a mentor for youths at the Youth Men’s Initiative at Betances Community Center from January to April 2014. CARDONA is also believed to have worked as a volunteer at the Betances Community Center at various times starting in 2011. As alleged in the federal Criminal Complaint, CARDONA admitted to having had inappropriate sexual contact with children, including children he had encountered through these programs.
Persons with information about children with whom CARDONA may have had inappropriate sexual contact, or from whom he may have solicited sexually explicit images or videos, are urged to contact the FBI hotline established for this investigation at (212) 384-1600, as well as the Manhattan District Attorney’s Office Sex Crimes Hotline at (212) 335-9373. The Manhattan Child Advocacy Center is available to provide services to children who may be victims of CARDONA’s conduct, including both inappropriate sexual contact and sexually explicit images. The Manhattan Child Advocacy Center can provide information about obtaining immediate medical treatment, testing for sexually transmitted diseases, and mental health counseling. The Manhattan Child Advocacy Center can be contacted at:
Manhattan Child Advocacy Center
1753 Park Avenue
New York, NY 10035
(646) 695-6100
The investigation and prosecution of CARDONA’s conduct relating to production and distribution of child pornography is being handled by the United States Attorney’s Office for the Southern District of New York. The investigation of CARDONA’s conduct relating to inappropriate sexual contact with youths is being handled by the Manhattan District Attorney’s Office.
Mr. Bharara thanked and praised the investigative work of the FBI and the New York City Police Department in this matter, as well as the Manhattan District Attorney’s Office and the U.S. Attorney’s Office for the Districts of Guam and the Northern Mariana Islands.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Andrew DeFilippis is in charge of prosecution.
The charges and allegations contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Rene Cardona Indictment
15 May 2014
Williamson's Former Mayor Pleads Guilty to Lying to Federal InvestigatorsRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Darrin McCormick, 50, of Williamson, West Virginia, pled guilty to lying to federal agents from the FBI and IRS. McCormick, the former Williamson branch manager of the Bank of Mingo, admitted that he lied during an interview in February of 2013 about suspicious banking activities undertaken by the principals of Aracoma Contracting, LLC, a contract labor company providing employees to local coal companies. Aracoma, owned by Jerome Edward Russell, 50, of Williamson, and Frelin R. Workman, 58, of Belfrey, Kentucky, routinely sent employees to the Bank of Mingo’s Williamson branch to simultaneously withdraw cash in increments of $10,000, commonly referred to as “structuring,” so as not to trigger mandatory reporting to the IRS. Russell and Workman were using the cash to pay a cash payroll as part of a scheme to avoid payroll taxes and also to pay bribes to Arville W. Sargent, 52, of Chapmanville, a premium auditor employed by BrickStreet Mutual Insurance Company (“BrickStreet”). In exchange for cash, Sargent intentionally underreported Aracoma’s payroll, which resulted in reducing Aracoma’s insurance premium to BrickStreet.
In February of 2013, federal agents interviewed McCormick at his home in Williamson. He denied knowledge of Aracoma’s suspicious banking practice when specifically asked. At today’s hearing, McCormick admitted that he lied to the agents knowing it was important to a federal investigation.
“Lying to federal investigators is always a serious crime, but it’s particularly disappointing when the lie comes from someone who’s both an elected officeholder and a bank official,” said U.S. Attorney Goodwin. “Cash structuring provides the fuel for any number of financial crimes—including bribery, as we saw with the auditor from BrickStreet—which is why it’s so important that banks report structuring when it happens. The defendant understood that perfectly well. It’s a shame he chose to deceive federal agents rather than help them get to the truth.”
In October of 2013, Sargent was sentenced to 72 months in prison and ordered to pay over $7 million in restitution to BrickStreet and the IRS for his role in the fraudulent scheme. Russell and Workman were sentenced to thirty months for their respective roles. The corporation, Ararcoma, was ordered to pay $405,000 in forfeiture to the United States as part of its sentence.
McCormick faces up to five years in prison and $250,000 fine. Sentencing is scheduled for August 28, 2014 at 2 p.m.
This investigation was conducted by the FBI and IRS Criminal Investigation, with assistance from the West Virginia State Police and the West Virginia Insurance Commission. Assistant United States Attorney Thomas Ryan is handling the prosecution.
Wiconisco PA Man Sentenced to 20 Months for Failure to Register as Sex OffenderRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that TRAVIS WAYNE DARKES, age 32, of Wiconisco, PA, was sentenced to 20 months imprisonment, followed by 60 months of supervised release for Failure to Register as Sex Offender, in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(B) and 2250(a)(3).
The charges are a result from an investigation by the Seminole Police Department, the Oklahoma Highway Patrol and the United States Marshal Service. The defendant was indicted in September, 2013 and pled guilty in October, 2013.
The Indictment alleged that from in or about March, 2013 until on or about September 4, 2013, in the Eastern District of Oklahoma, and elsewhere, the defendant, an individual required to register as a sex offender under the Sex Offender Registration and Notification Act, after having received convictions from the State of Pennsylvania, Lebanon County, on or about December 20, 2006, for the offenses of Indecent Assault, traveled in interstate commerce and knowingly failed to register and update his registration as required by the Sex Offender Registration and Notification Act.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in 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 Edward Snow represented the United States.
Waterbury Man Charged with Enticing Minor He Met at ChurchRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MIGUEL TORRES, 44, of Waterbury, was arrested today on a federal criminal complaint charging him with enticing and attempting to entice a minor female to send him sexually explicit videos of herself and to engage in unlawful sexual activity.
According to the criminal complaint, TORRES met a minor female at the church they both attended. TORRES offered to mentor the minor, gave her his cell phone number, and they began communicating via text messages. In late June 2013, when the minor was 14 years old, TORRES began to ask the minor to send him sexually explicit videos and pictures. Their text message conversations became sexually explicit, and TORRES persuaded the minor to take sexually explicit videos and pictures of herself and send them to him. TORRES also sent the minor sexually explicit videos and pictures of himself, and he told her that he had engaged in sexual conduct with other girls so that the minor would be comfortable with it. In August 2013, TORRES and the minor discussed getting together to engage in sexual activity.
On August 30, 2013, TORRES was arrested on related state charges. A forensic examination of TORRES’s cell phone revealed several videos of the minor engaged in sexually explicit conduct.
TORRES has been detained since his state arrest. Today, he appeared before U.S. Magistrate Judge Holly B. Fitzsimmons in Bridgeport, who ordered TORRES detained.
If convicted of the federal enticement charge, TORRES faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Waterbury Police Department and Homeland Security Investigations. The Connecticut State’s Attorney’s Office in Waterbury is also providing critical assistance in this investigation. The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel and Special Assistant U.S. Attorney Charles L. Rombeau.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]United States Attorney’s Office Recognizes National Police WeekRead the Press Release
Calls on All Marylanders to “Thank a Police Officer for Serving with Valor and Integrity”
Baltimore, Maryland – In connection with National Police Week – the week that includes Peace Officers Memorial Day on May 15 – the United States Attorney’s Office today encouraged all Marylanders to take a moment to remember officers who have been killed or wounded in the line of duty and to express their appreciation to the men and women who work every day to protect public safety.
“Police agencies get plenty of attention when things go wrong, but we too rarely take the opportunity to thank law enforcement officers who are on duty every morning, afternoon and evening, every day of the year,” said U.S. Attorney Rod J. Rosenstein. “We are very grateful for the service of the many outstanding officers in our local, state and federal law enforcement agencies who are working together to reduce crime in Maryland. This week, every citizen should take the opportunity to thank a police officer for serving with valor and integrity.”
Additional information about National Police Week is available at http://www.nleomf.org/programs/policeweek/. For details about officers who died in the line of duty in Maryland, visit http://www.odmp.org/search/browse/maryland.
United States Attorney Continues Fight Against Methamphetamine in Central IndianaRead the Press Release
Hogsett announces indictment and arrests of 23 defendants for methamphetamine trafficking and firearms violations
INDIANAPOLIS - U.S. Attorney Joseph H. Hogsett announced today the indictment and arrest of 23 defendants involved in a drug trafficking operation that stretched from the Mars Hill section of Indianapolis to North Vernon, Indiana and other communities in central Indiana.
"The scourge of meth has taken a heavy toll on communities in our state, and the U.S. Attorney's Office is redoubling efforts to combat organized methamphetamine activity in Southeastern Indiana," Hogsett said.
"Long term investigations, cooperatively maintained, using sensitive investigative techniques, produce significant results. This isn’t small ball. This isn’t ‘three buys and a bust.’ This is what you do when you are serious about making the quality of life in this community better."
FBI Special Agency in Charge Robert A. Jones said, "This case is another example of the power of partnerships. The FBI and state and local partners throughout central and southern Indiana have joined together with the USAO in this investigation to dismantle a drug distribution network that has plagued the community."
The main indictment charged 16 defendants with participating in the activities of a methamphetamine distribution organization. The indictment charged the following defendants with conspiracy to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine:
• Donald P. Maggard, 40, of North Vernon, Indiana; • Ashley N. Wright, 27, of North Vernon, Indiana; • Jason L. Howard, a/k/a Jay, 33, of North Vernon, Indiana; • Jason D. Mantooth, 38, of Indianapolis, Indiana; • Dorothy M. Neeley, 39, of Indianapolis, Indiana; • Robert J. Holliday, a/k/a Jo Jo, 30, of Indianapolis, Indiana; • Kimberly A. Ault, 31, of Indianapolis, Indiana; • David L. Bell, 48, of Seymour, Indiana; • David Eric Chadwell of Osgood, Indiana; • George R. Nichols, a/k/a Rick, 59, of Butlerville, Indiana; • Jessica R. Parsons, 32, of North Vernon, Indiana
The indictment also charged Marsha D. Fields, 56, of North Vernon, Indiana with maintaining a drug-involved premises and the following individuals with unlawful use of a communications device:
• Danny W. Maggard, 39, an inmate at the Putnamville Correctional Facility; • Christy N. Walker, 31, of Columbus, Indiana; • Shannon M. Palmer, 36, of Indianapolis, Indiana; and
• Faris B. Keener, 31, of McMinville, TennesseeHogsett explained that the indictment of the 16 defendants was the product of an ongoing investigation that had already produced 7 arrests for drug trafficking and firearms violations in the Mars Hill area. Those defendants previously arrested included the following:
• Jennifer L. Gaddy, 44, of Indianapolis, Indiana, charged with three counts of methamphetamine distribution; • Logan Mediate, 20, of Indianapolis, Indiana, charged with tampering with a witness, discharge of a firearm in furtherance of a crime of violence, possession of a short-barreled shotgun in furtherance of a crime of violence, felon in possession of a firearm, and possession of a sawed-off shotgun; • Jonathan Anderson, 29, of Indianapolis, Indiana, charged with felon in possession of a firearm; • Dustin H. Pennington, 31, of Indianapolis, Indiana, charged with felon in possession of a firearm; • Dwight L. Holloway, 33, of Indianapolis, Indiana, charged with possession of heroin with intent to distribute and felon in possession of a firearm; • Justin Kincaid, 33, of Indianapolis, Indiana, charged with felon in possession of a firearm; and
• Kathleen A. Owens, 29, of Indianapolis, Indiana, charged with two counts of possession of methamphetamine with intent to distribute.“It is difficult to know just how much methamphetamine this organization distributed into central Indiana, but their dealing stops now,” said Hogsett. “Those who peddle drugs in our Hoosier communities will have the full force of federal law to deal with.”
These charges are the result of a collaborative investigation conducted by the Federal Bureau of Investigation, the Indiana State Police, the Indianapolis Metropolitan Police Department, the Fishers Police Department, and several other local enforcement agencies.
According to Bradley Blackington, who is prosecuting the case for the government, those defendants charged with conspiracy to distribute methamphetamine face up to life in federal prison and fines up to $10 million if convicted.
U.S. Attorney Booth Goodwin, U.S. Marshal John Foster and Members of the West Virginia State Police to Discuss Results of Major Sweep Aimed at Sex Offender Registration Compliance on FridayRead the Press Release
CHARLESTON, W.Va. –U.S. Attorney Booth Goodwin, joined by U.S. Marshal John Foster and members of the West Virginia State Police, will discuss the results of a sex offender registration compliance sweep conducted in Wood and Wirt counties. A press conference will be held at 10:00 a.m. on Friday, May 16, 2014 at West Virginia State Police headquarters located at 725 Jefferson Road in South Charleston, West Virginia.
OFFICIALS TO DISCUSS RESULTS OF SEX OFFENDER COMPLIANCE SWEEPWHO: United States Attorney Booth Goodwin
United States Marshal John Foster
Members of the West Virginia State PoliceWHAT: Press conference to discuss results of sex offender registration compliance sweep conducted in Wood and Wirt counties.
WHERE: West Virginia State Police
725 Jefferson Road
South Charleston, WV
WHEN: Friday, May 16, 2014 at 10:00 a.m.Two Sentenced in Federal Court for Obtaining Oxycodone by FraudRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced that two Beckley area residents were sentenced today in federal court for obtaining oxycodone by fraud. Sherry Lively, age 46, of Crab Orchard, West Virginia and Justin Woodie, age 22, of Beckley, West Virginia received prison sentences for six months and three months, respectively. The defendants, who plead guilty in January of 2014, forged prescriptions for oxycodone on stolen prescription pads and presented them to Beckley area pharmacies to be filled.
These cases were investigated by the DEA.
These cases were prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin.
Two More Alleged Kidnappers Arrested, Charged in Plot to Coerce Reluctant Husband to Grant Jewish DivorceRead the Press Release
TRENTON, N.J. - Special agents of the FBI arrested two men at their Lakewood, N.J., homes this morning for allegedly kidnapping a reluctant Jewish husband in order to coerce him through violence to grant his wife a religious divorce – referred to as a “get” – U.S. Attorney Paul J. Fishman announced.
David Aryeh Epstein, 39, and Chaim Baruch Rubin, 32, are charged by criminal complaint with kidnapping. Both defendants appeared in Trenton federal court this afternoon before U.S. Magistrate Judge Douglas E. Arpert. They each were released on $500,000 bail with home detention and electronic monitoring.
According to the complaint unsealed today:
In November 2009, Rubin called the victim concerning a sales job opportunity at “ShredZone” in Lakewood, and the victim, who had been living in Brooklyn, N.Y., moved to a temporary residence in Lakewood to begin work. A few days later, Rubin asked him to stay late for a private meeting.
When he walked to his car that evening, the victim was attacked by a group of men. He was bound, put in a van, beaten and shocked with a stun gun until he agreed to grant his wife a divorce.
David Epstein is the son of rabbi Mendel Epstein, 68, of Brooklyn, who was previously charged in October 2013 with conspiracy to commit kidnapping, along with nine other individuals. Four of those charged have since pleaded guilty to extortion charges in connection with this case.
If convicted, the defendants face a maximum potential penalty of life in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today’s arrests.
The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and Sarah Wolfe of the U.S. Attorney’s Office in Trenton.
The pending charges and allegations against these and related defendants are merely allegations and they are considered innocent unless and until proven guilty.
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Defense counsel:
David Epstein: Harlan Protass Esq., New York
Chaim Rubin: James Moriarty Esq., New YorkEpstein, David and Chaim, Rubin Complaint
Two Blue Springs Realtors Sentenced for $11 Million Mortgage FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two Blue Springs, Mo., real estate agents and several co-defendants have been sentenced in federal court for their roles in an $11 million mortgage fraud scheme.
Leann Raejeana Turner, 44, of Blue Springs, was sentenced to three years in federal prison without parole on Monday, May 12, 2014. The court also ordered Turner to pay $4,912,040 in restitution.
On May 30, 2012, Turner pleaded guilty to one count of conspiracy to commit wire fraud and one count of money laundering. Turner is one of nine defendants who participated in the mortgage fraud scheme from early 2005 to Aug. 4, 2006. Turner was a real estate agent working for a series of real estate companies during the conspiracy. Carole L. Colson, 71, formerly doing business as Carole Colson Real Estate in Blue Springs, now of Lake Worth, Fla., was a real estate agent. Bruce Q. Williams, 44, of Kansas City, Kan., and Anthony E. Hicks, 42, of Little Rock, Ark., were loan officers at mortgage brokerage companies. Other co-defendants were “home buyers” who conspired to defraud mortgage lenders.
Mortgage lenders made loans of approximately $11,092,886 on 16 residential properties in Lee’s Summit, Liberty, Blue Springs, Parkville, Independence and Oak Grove, Mo. From that total, unbeknownst to the lenders, buyers received approximately $2,006,845 from the loan proceeds in illegal secret kickbacks. The scheme resulted in a financial loss to mortgage lenders of nearly $5 million.
The scheme involved buying and selling homes at inflated prices, obtaining mortgage loans at the inflated prices, then kicking back $100,000 of the excess loan proceeds to each of the home buyers without the lenders’ knowledge. The scheme financially benefitted all of the conspirators. Turner (the real estate agent for 15 of the 16 transactions) received commissions and sometimes hidden payments and assets; Williams and Hicks (the loan officers) received commissions from the transactions; and the home buyers received kickbacks.
Turner and Colson listed and arranged for the sale of the homes at inflated prices and solicited buyers. Misrepresentations and omissions of material facts were made to mortgage lenders in order to obtain the loans. In order to obtain the loan proceeds without the lenders’ knowledge, the buyers created fictitious businesses that issued false invoices that claimed the businesses had provided work and services for which they were entitled to receive loan proceeds.
In addition to Turner’s sentencing this week, Colson was sentenced to five years of probation (including six months of house arrest, 120 hours of community service and ordered to pay $2,291,110 in restitution); Williams was sentenced to one year and one day in federal prison (and ordered to pay $3,443,123 in restitution); Hicks was sentenced to 10 months in federal prison (and ordered to pay $953,958 in restitution); Linda Joyce Henry Johnson, 65, of Corona, Calif., was sentenced to five years of probation (with six months of house arrest and ordered to pay $228,744 in restitution).
James Arthur Nash, Jr., 44, and Arman Nshanian, 38, both of Corona, Calif., two deputies of the Los Angeles County, Calif., Sheriff’s Department, were convicted at trial on Dec. 6, 2013, and await sentencing. They were each found guilty of conspiracy to commit wire fraud. In addition to the criminal conspiracy, Nash was convicted of four counts of wire fraud and Nshanian was convicted of two counts of wire fraud related to fax transmissions and emails that were sent across state lines during the mortgage application process.
Nash fraudulently purchased two residential properties in Blue Springs, Mo. He received $100,000 from each property. Nshanian fraudulently purchased a residential property in Lee’s Summit, Mo., and received $100,000.
Mark P. Billey, 40, of Buena Park, Calif., was sentenced on Sept. 20, 2011, to two years and nine months in federal prison and ordered to pay $701,450 in restitution.
Zelda Ann Jackson, 41, of Newbury Park, Calif., a real estate agent, pleaded guilty to assisting her husband in the purchase of a property. A sentencing hearing is scheduled on May 28, 2014.
This case is being prosecuted by Assistant U.S. Attorney Linda Parker Marshall. It was investigated by the FBI and IRS-Criminal Investigation.Trenton, N.J., Mayor Sentenced to 58 Months in Prison on Federal Extortion, Bribery and Mail and Wire Fraud ChargesRead the Press Release
Mayor’s Brother, Also Convicted at Trial, Sentenced to 30 Months
TRENTON, N.J. - Trenton Mayor Tony F. Mack was sentenced today to 58 months in prison after being convicted at trial in February on all six federal extortion, bribery and mail and wire fraud charges against him, U.S. Attorney Paul J. Fishman announced.
Mack’s brother, Ralphiel Mack, who was also convicted on three of the charges, but found not guilty on three mail fraud and wire fraud counts, was sentenced to 30 months in prison. The Macks had been convicted following a five-week trial before U.S. District Judge Michael A. Shipp, who imposed the sentences today in Trenton federal court.
The Macks were charged in connection with a scheme to accept $119,000 in bribes in exchange for Mayor Mack=s official actions and influence in assisting cooperating witnesses in the development of an automated parking garage on City-owned land.
“Nearly four years ago, Tony Mack raised his hand and swore to uphold the state and federal constitutions as he assumed the office of mayor of the capital city of New Jersey,” U.S. Attorney Fishman said. “Within 10 weeks, he began selling that office and, with the help of his brother and others, he sold out the people of Trenton in the process. Today, he learned the true cost of his actions: He will spend 58 months in federal prison.”
“Instead of providing transparent government to the citizens of Trenton, Tony Mack and his brother allowed themselves to succumb to self-interest and greed,” FBI Special Agent in Charge Aaron T. Ford said. “This investigation brought to light the unsavory underworld of secret meetings with convicted felons, the calculated use of ‘buffers’ and bagmen, and bribe payments associated with inside deals to give away the city’s treasures, its property. The citizens of Trenton are entitled to political figures who discharge their duties with goodness of heart, and not those motivated by personal gain.”
Tony F. Mack, 48, and Ralphiel Mack, 41, both of Trenton, originally were charged by complaint on Sept. 10, 2012, with one count of conspiracy to obstruct commerce by extortion under color of official right related to the $119,000 extortion scheme. Also charged at that time was Joseph A. Giorgianni, 64, of Ewing, N.J. An indictment returned in December 2012 added charges against all three defendants.
Giorgianni pleaded guilty on Dec. 13, 2013, to one count of conspiring with the Macks and others to obstruct interstate commerce by extorting individuals under color of official right, in addition to a separate extortion scheme, a narcotics charge and illegal weapons possession, all charges unrelated to the Macks.
Mayor Mack was convicted of the six counts charged in the indictment:- Conspiracy to obstruct and affect interstate commerce by extorition under color of official right;
- Attempted obstruction of commerce by extortion under the color of official right;
- Accepting and agreeing to accept bribes;
- Two counts of wire fraud;
- Mail fraud;
Ralphiel Mack was convicted on the same first three counts and found not guilty of the mail and wire fraud charges. The jury members deliberated for seven hours before returning their verdicts.
According to documents filed in this case and the evidence presented at trial: Tony Mack, Giorgianni and Ralphiel Mack conspired to accept approximately $119,000 in cash and other valuables, of which $54,000 was accepted and another $65,000 that the defendants planned to accept, from two cooperating witnesses (CW-1 and CW-2). In exchange for the payments, Tony Mack agreed to, and did, assist CW-1 and CW-2 in their efforts to acquire a City-owned lot (East State Street Lot) to develop an automated parking garage (the Parking Garage Project). The scheme included a plan to divert $100,000 of the purchase amount that CW-2 had indicated a willingness to pay to the City of Trenton for the lot as a bribe and kickback payment to Giorgianni and Tony Mack. The mayor authorized and directed a Trenton official responsible for disposition of City-owned land to offer the East State Street Lot to CW-2 for $100,000, significantly less than the amount originally proposed by CW-2.
The defendants went to great lengths to conceal their corrupt activity and keep Tony Mack “safe” from law enforcement. For example, Giorgianni and Ralphiel Mack acted as intermediaries, or “buffers,” who accepted cash payments for Tony Mack=s benefit. Tony Mack also used another City of Trenton employee involved in the scheme, Charles Hall III, 49, of Trenton, to contact other Trenton officials to facilitate the Parking Garage Project and to inform the mayor when Giorgianni had received corrupt cash payments. Hall pleaded guilty before Judge Shipp in February 2013 to an information charging him with one count of conspiracy to obstruct commerce by extortion under color of official right and one count of conspiring to distribute narcotics with others, including Giorgianni.
To conceal the corrupt arrangement, the defendants avoided discussing matters related to the scheme over the telephone. When those matters were discussed, they used code words and aliases. One such code word was “Uncle Remus,” which both Giorgianni and Hall regularly used to communicate to Tony Mack that a corrupt payment had been received. For example, on Oct. 29, 2011, Giorgianni telephoned Hall and informed him that Giorgianni had to “see” Tony Mack and that “I got Uncle Remus for him,” meaning a corrupt cash payment that Giorgianni had received from CW-1 two days earlier. Giorgianni directed Hall to bring Tony Mack to a meeting location controlled by Giorgianni (Giorgianni=s Clubhouse), stating “we gotta talk” because “I got something that might be good for him” and that “they=ve already come with Uncle Remus,” meaning a corrupt cash payment. On June 13, 2012, Giorgianni telephoned Tony Mack and informed him that “Uncle Remus,” meaning a corrupt cash payment, “was there.” Tony Mack replied, “I=ll call you, J. Okay?”@ In text messages to Tony Mack related to the scheme, Giorgianni would refer to himself as “Mr. Baker.”
The defendants also concealed their activities by holding meetings concerning the corrupt activity away from Trenton City Hall, including at Giorgianni=s residence, a restaurant maintained by Giorgianni known as JoJo=s Steakhouse, Giorgianni=s Clubhouse and Atlantic City restaurants. At one Atlantic City meeting among Tony Mack, Giorgianni, Hall and CW-2, Tony Mack instructed Giorgianni to ensure that no photographs were taken in order to conceal the corrupt arrangement.
In addition to the prison terms, Judge Shipp sentenced Tony Mack to three years of supervised release, 100 hours of community service and fined him $3,000. He sentenced Ralphiel Mack to three years of supervised release and fined him $1,500.
U.S. Attorney Fishman credited special agents of the FBI=s Trenton Resident Agency, Newark Field Office, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to today’s sentencings.
The government is represented by Assistant U.S. Attorneys Eric W. Moran and Matthew J. Skahill of the U.S. Attorney=s Office Special Prosecutions Division in Trenton and Camden, respectively.
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Defense counsel: Tony Mack: Mark G. Davis Esq., Hamilton, N.J.
Ralphiel Mack: Robert Haney, Princeton Junction, N.J.Topeka Man Pleads Guilty to Arranging Fraudulent MarriagesRead the Press Release
TOPEKA, KAN. - A Topeka man has pleaded guilty to arranging fraudulent marriages for foreign nationals who wanted to become United States citizens, U.S. Attorney Barry Grissom said today.
Quong Bow Low, 75, Topeka, Kan., pleaded guilty in U.S. District Court in Topeka to one count of conspiracy to commit marriage fraud. In his plea, he admitted that from 1992 to 2013 he facilitated fraudulent marriages between U.S. citizens and foreign nationals. Investigators identified approximately 40 arranged marriages in which he was involved. Foreign nationals used the marriages to obtain, or attempt to obtain, status as lawful permanent residents.
Low’s services included locating a U.S. citizen to participate in the fraudulent marriage, providing documentation in support of the marriage, and instructing the foreign national and the citizen on the immigration interviews they would face with U.S. Citizenship and Immigration Services, USCIS.
Low provided one client with a price list including $6,000 to $7,000 to begin the process and find a U.S. citizen who would participate in the fraudulent marriage, $500 per month between the marriage and the interview to keep the U.S. citizen involved, $6,000 to $8,000 for coaching and services related to the permanent residency interview and a final lump sum of several thousand dollars when the client received permanent residence status.
Low admitted providing supporting documentation for the legitimacy of the marriages, including a lease of an apartment in the basement of his home and congratulation cards addressed to the participants in the fraudulent marriage. Investigators found records indicating Low was a witness for at least 12 marriages, served as a financial sponsor for at least four marriages, provided a lease for his basement apartment for at least four marriages, let the couples list his residence as their own on at least 13 marriages.
Sentencing is scheduled for Aug. 1, 2014. He faces a maximum penalty of five years in federal prison and a fine up to $250,000. Grissom commended the Department of Homeland Security and Assistant U.S. Attorney Christine Kenney for their work on the case.
“Marriage fraud is a serious crime that exploits our nation’s immigration system and poses a vulnerability to our security,” said Special Agent in Charge Gary Hartwig, of Homeland Security Investigations in Chicago. “HSI will continue to identify and arrest individuals whose actions violate U.S. immigration laws.”Taunton Man Sentenced to 17 Years for Child Pornography OffensesRead the Press Release
BOSTON – A Taunton man was sentenced today for producing and transporting child pornography.
David McLellan, 31, of Taunton, was sentenced by U.S. District Judge Rya Zobel to 17 years in prison and 15 years of supervised release. In February 2014, McLellan pleaded guilty to sexual exploitation of children and transportation of child pornography.
After an undercover agent downloaded child pornography on a peer-to-peer file sharing network from McLellan, federal agents obtained a search warrant for McLellan’s residence and seized multiple items of computer media. Computer forensic examination revealed McLellan possessed six million images of child pornography and child erotica of prepubescent children and infants.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Eve A. Piemonte Stacey of Ortiz's Major Crimes Unit.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Stockton Man Sentenced to over 7 Years in Prison for Federal Firearm ChargeRead the Press Release
SACRAMENTO, Calif. — Barry Rhodes, 28, of Stockton, was sentenced today by United States District Judge Morrison C. England Jr. to over 7 years and three months in prison for being a felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced.
According to court documents, on March 9, 2013, in the city of Stockton, an officer pulled over Rhodes’s 1999 Buick Regal for an expired vehicle registration. Rhodes was unable to provide his driver’s license. The officer discovered that Rhodes had a suspended license, two outstanding arrest warrants, and was on active searchable probation. A search of the vehicle uncovered a 9 mm Sig Sauer semi-automatic handgun and a 15-round magazine with 12 live rounds of ammunition inside. Rhodes has five felony convictions since 2004.
This case is the product of an investigation by the Stockton Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Olusere Olowoyeye prosecuted the case.
“Today’s sentencing demonstrates our continued effort to apprehend violent offenders and to keep our citizens and our streets safe,” said Bureau of Alcohol, Tobacco, Firearms and Explosives, Special Agent in Charge, Joseph M. Riehl. “Our expertise in firearms investigations is a valuable asset we bring to the program as we continue our fight against violent crime with our partners.”
This case is the product of “Operation Gideon IV,” an ATF initiative targeting violent criminals and criminal organizations operating in Stockton. Experienced undercover ATF special agents from throughout the U.S. were deployed with local ATF agents and Stockton police officers to conduct covert investigations into violent criminals in Stockton and surrounding areas. As a result of this partnership, 52 defendants were charged federally, and 19 others were charged in state prosecutions. The operation also resulted in the collective seizure of 84 firearms, 36 pounds of methamphetamine, and 21 pounds of marijuana.
Stockton Couple Plead Guilty to Charges Stemming from Large-Scale U.S. Mail Theft and Bank Fraud InvestigationRead the Press Release
SACRAMENTO, Calif. — Stockton residents Rudy A. Trujillo, 35, and Regina L. Perea, 34, pleaded guilty today to three counts each of aggravated identification theft related to the fraudulent use of identification documents of others, United States Attorney Benjamin B. Wagner announced.
This case is the product of an investigation by the Stockton office of the United States Postal Inspection Service and the San Joaquin County Sheriff's Office with assistance from the Stockton and San Jose police departments, the Placer County Sheriff's Office, and the Delta Regional Auto Theft Task Force. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated: "We are working closely with the U.S. Attorney's Office and our partners in law enforcement to arrest and prosecute all those responsible for stealing U.S. Mail and using the contents of stolen U.S. Mail in furtherance of fraud and identity theft crimes."
According to court documents, Trujillo and Perea possessed hundreds of pieces of stolen U.S. mail, along with hundreds of stolen checks, credit cards and identification documents at their Stockton residence. During the January 21, 2014, search of their residence, law enforcement recovered the stolen mail and found evidence indicating that the defendants were altering checks, and manufacturing credit cards. During the search, Trujillo and Perea successfully fled from law enforcement, and a high-speed chase ensued through Stockton residential streets. On March 7, 2014, Trujillo and Perea were arrested in San Jose. Upon arrest, the defendants were driving a stolen vehicle with stolen license plates and were again in possession of a large quantity of stolen U.S. mail, checks, credit cards, and identification documents. Perea had assumed the identity of at least two additional female victims while she and Trujillo were on the run from law enforcement.
Trujillo and Perea are scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on August 7, 2014. They face a mandatory minimum sentence of 24 months for each of the three aggravated identity theft convictions. 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.
South Holland Man Sentenced to Nearly 17 Years in Prison for Illegally Trafficking Hundreds of Guns from Indiana to ChicagoRead the Press Release
CHICAGO ― A south suburban man was sentenced to nearly 17 years in federal prison for buying hundreds of high-powered firearms at guns shows in Indiana and illegally transporting them to Chicago where he sold them without a federal firearms dealer license. The defendant, DAVID LEWISBEY, was sentenced late yesterday in U.S. District Court.
After a two-week trial last September, Lewisbey, 24, of South Holland, was convicted of dealing firearms without a federal license, two counts of illegally transporting firearms across state lines, and two counts interstate travel to sell guns without a license.
“This case is a perfect example of where the guns come from . . . and into the hands of gangbangers who then shoot them and kill and wound people,” U.S. District Judge Ronald Guzman said before imposing a 200-month sentence.
“During one of the deadliest years in Chicago’s history, the defendant was pumping numerous unregistered and untraceable firearms into the most violent neighborhoods in Chicago. The defendant ran his business on the side streets and back alleys of Chicago’s neighborhoods. No background checks, no receipts, no written record,” Assistant U.S. Attorneys Bethany Biesenthal and Christopher Parente argued in a sentencing memo.
Evidence at the trial showed that between January 2008 and September 2012, Lewisbey, who had no criminal record that disqualified him from buying firearms, routinely traveled to various gun shows in Indiana and purchased duffle bags full of guns that he brought back to Chicago. A government witness testified that he personally observed Lewisbey buy more than 100 firearms, as well as dozens of high-capacity magazines, at Indiana gun shows.
During just one 48-hour period, on April 22-23, 2012, Lewisbey bought 43 guns in Indiana and brought them to Chicago, where he delivered them to co-defendant LEVAINE TANKSLEY, who with two other co-defendants, sold them to an individual who was cooperating with ATF agents. All of those guns were recovered by law enforcement.
Last month, Judge Guzman sentenced Tanksley, 29, of Chicago, to more than 11 years in prison, and CHARLES LEMLE, 28, of Chicago to 10 years in prison. MICHAEL HALL, 29, of Chicago, who cooperated with the government and testified against Lewsibey is awaiting sentencing. Tanksley, Lemle, and Hall each pleaded guilty to illegally possessing firearms as previously convicted felons.
Lewisbey’s sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Carl Vasilko, Special Agent-in-Charge of the Chicago Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Chicago Office of the Federal Bureau of Investigation, the Chicago Police Department, and the Illinois State Police assisted in the investigation, which was conducted with the Chicago High Intensity Drug Trafficking Task Force (HIDTA).
Smuggler Pleads Guilty to Causing Deadly Tragedy at SeaRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Rear Admiral John H. Korn, Commander, 7th Coast Guard District (USCG), announce today the guilty plea of Naaman Davis, 53, of the Bahamas, to one count of encouraging and inducing aliens to enter the United States resulting in death, in violation of Title 8, United States Code, Section 1324(a)(1)(A)(iv), and one count of aiding and assisting an aggravated felon to enter the United States, in violation of Title 8, United States Code, Section 1327.
According to the stipulated statement of facts filed with the Court, the defendant drove a migrant smuggling vessel from Bimini, Bahamas to South Florida on the evening of October 15, 2013. Prior to leaving the Bahamas, the defendant consumed some quantity of rum. The vessel stalled several times throughout the voyage, and the defendant smoked crack-cocaine one of the times that the vessel stalled. Seven nautical miles off of Miami, the vessel began taking on water and lost stability. The defendant and another individual identified as George Lewis jumped overboard shortly before the vessel capsized. Five of the thirteen migrants onboard became trapped underneath the capsized vessel, four of whom ultimately died.
Lewis and three other individuals onboard the vessel that night also pled guilty to their conduct relating to this case. Specifically, George Lewis, 38, of the Bahamas, Matthew Williams, 31, Everton Jones, a/k/a “Everton Bryce,” 41, and Kenard Hagigal, 36, each of Jamaica, pled guilty to illegal reentry into the United States by an aggravated felon, in violation of Title 8, United States Code, Section 1326(a) and (b)(2). They each await sentencing by United States District Judge Kathleen Williams. A fifth individual, Sean Gaynor, 37, of Jamaica, pled guilty to illegal reentry into the United States, in violation of Title 8, United States Code, Section 1326(a), and was sentenced to time served.
At sentencing, Davis faces a statutory maximum sentence of life imprisonment. Lewis, Williams, Jones and Hagigal face a statutory maximum sentence of twenty years imprisonment.
Mr. Ferrer commended the investigative efforts of ICE-HSI and the USCG. This case is being prosecuted by Special Assistant U.S. Attorney Kelly Blackburn.
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.
Six Miami-Area Residents Plead Guilty to Mortgage Fraud Scheme Involving Four Condominium DevelopmentsRead the Press Release
Six Miami-area residents, including three former loan officers, pleaded guilty in the Southern District of Florida this week to participating in a fraudulent scheme designed to enrich real estate developers by selling condominium units to straw buyers.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, Special Agent in Charge Phyllis Robinson of the Department of Housing and Urban Development’s Office of the Inspector General (HUD-OIG) in Miami and Acting Inspector General Michael P. Stephens of the Federal Housing Finance Agency (FHFA) made the announcement.
Today, Leidy Masvidal, 42, of Miami, pleaded guilty before U.S. District Court Judge Marcia G. Cooke to conspiring to commit bank fraud. Sentencing is scheduled for Sept. 24, 2014. Alfredo Jesus Chacon, 48, of Orange Park, Florida, and Francisco Martos, 63, and Dorian Wong Magarino, 49, both of Miami, also pleaded guilty today to conspiring to commit wire fraud and mail fraud before U.S. District Court Judge Ursula Ungaro. Sentencing is scheduled for Aug. 1, 2014.
On May 14, 2014, Tania Masvidal, 49, and Douglas Ponce, 40, both of Miami, each pleaded guilty before Judge Cooke to conspiring to commit bank fraud. Sentencing is scheduled for July 30, 2014.
According to the defendants’ plea agreements and other court documents, the defendants participated in a scheme to pay straw buyers to submit false loan applications to lending institutions to purchase condominiums owned by co-conspirators. Leidy Masvidal and Tania Masvidal used a mortgage brokerage they owned, EZY Mortgage Inc., to arrange financing for the purchases. Because the straw buyers were not credit-worthy, the Masvidals secured loans in their names by submitting to lending institutions loan applications and other fraudulent documents containing false statements about the buyers’ income, employment and assets, and falsely stating that the buyers intended to reside in the properties. Additionally, the Masvidals enabled their co-conspirators to secretly fund the buyers’ obligations to pay money at closing (known as “cash to close” obligations) by establishing shell corporations, which the co-conspirators used to funnel cash from conspirators to the escrow account used at closing, as well as paying the straw buyers. The co-conspirators compensated the Masvidals for their role in the scheme by sending kickback payments taken from the loan proceeds to the Masvidals’ shell corporations for every straw buyer identified.
According to admissions in court records, Martos was a former loan officer at a mortgage company known as State Lending who helped secure financing for straw buyers in exchange for kickbacks by procuring false employment documents and by including false information in buyers’ loan applications. Chacon and Ponce recruited straw buyers to purchase properties owned by co-conspirators in exchange for kickbacks paid from the sales proceeds. Chacon also allowed a company that he controlled to be used as a false employer for the straw buyers. Magarino accepted payments to act as one of Chacon’s straw buyers and recruited other straw buyers into the scheme. For the properties in which Margarino acted as the straw buyer, he represented to the lender that he personally met his cash-to-close obligations when in fact he knowingly paid these costs with funds supplied by conspirators.
Many of the straw buyers defaulted on their loans after the conspirators stopped making their mortgage payments on their behalf, causing millions of dollars in losses to lenders.
On March 31, 2014, Luis Mendez, Stavroula Mendez, Luis Michael Mendez, Lazaro Mendez, Marie Mendez, Wilkie Perez and Enrique Angulo were indicted in the Southern District of Florida for their alleged participation in this scheme. They have pleaded not guilty and trial is currently set for Sept. 8, 2014. The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The case is being investigated by HUD-OIG and FHFA-OIG. The case is being prosecuted by Trial Attorneys Gary A. Winters and Brian Young of the Criminal Division’s Fraud Section.Singapore Shipping Company and Crew Member Responsible for Oily Waste Discharge Are SentencedRead the Press Release
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Singapore-based ODFJELL ASIA II PTE LTD. and a senior crew member of one of its ships were sentenced yesterday in federal court in Hartford, Conn., for violating the Act to Prevent Pollution from Ships (APPS), announced United States Attorney Deirdre M. Daly, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division Robert G. Dreher, and Rear Admiral Daniel B. Abel, Commander of the First Coast Guard District in Boston. ODFJELL was sentenced to a term of probation and ordered to pay a $1.2 criminal penalty, and the crew member, Ramil Leuterio, was sentenced to three months of imprisonment. ODFJELL and Leuterio pleaded guilty on March 3, 2014.
According to court documents and statements made in court, ODFJELL ASIA II PTE LTD. (ODFJELL) operated the M/T Bow Lind, a 577-foot, 26,327 gross ton petroleum/chemical tanker ship. On November 6, 2012, the U.S. Coast Guard boarded the vessel in New Haven to conduct an inspection. The inspection and subsequent criminal investigation revealed that three times between October 2011 and October 2012, while in international waters, the vessel discharged machinery space bilge water directly into the sea. At the direction of senior engineer Leuterio, crew members bypassed pollution prevention equipment that was in place to ensure that any discharged bilge water contain less than 15 parts per million of oil. The illegal discharges were then concealed by misleading entries and omissions in the vessel’s oil record book.
According to several engine room crew members, Leuterio directed them to use a complex system to transfer the bilge water from the bilge holding tank to the sewage tank. From the sewage tank, the bilge water was dumped directly into the sea without passing through pollution prevention equipment. Once the bilge holding tank was emptied, Leuterio directed the lower ranking crew members to put clean fresh water and salt water into the tank. As the pollution prevention equipment automatically records the time it is being operated, Leuterio then processed the clean water through the prevention equipment, thereby creating an electronic record to account for the bilge water that had bypassed the equipment and been discharged directly overboard.
U.S. District Judge Vanessa L. Bryant sentenced ODFJELL to a three-year term of probation and ordered the company to pay a criminal penalty totaling $1.2 million, including $300,000 that will be directed to The National Fish and Wildlife Foundation to fund projects aimed at the preservation and restoration of the marine environment of Long Island Sound.
As a condition of probation, ODFJELL will implement an environmental management plan which will ensure that any ship operated by ODFJELL calling on a port of the United States complies with all maritime environmental requirements established under applicable international, flag state, and port state laws. The plan ensures that ODFJELL’s employees and the crew of any vessel operated by ODFJELL that calls on a United States port are properly trained in preventing maritime pollution. An independent monitor will report to the court regarding ODFJELL’s compliance with these obligations during the period of probation.
Leuterio, 42, a citizen of the Philippines, will be deported after he serves his three-month prison term.
The government has requested that Judge Bryant award a portion of the criminal fine imposed to two M/T Bow Lind crew members who notified the Coast Guard of the criminal conduct on board the vessel, and whose information led directly to the convictions obtained in this matter. Judge Bryant will rule on the government’s motion after further court proceedings.
This case was investigated by the U.S. Coast Guard Sector Long Island Sound, Coast Guard Investigative Service, and Coast Guard office of Investigations and Analysis (CG-INV). The case is being prosecuted by Assistant U.S. Attorney Paul H. McConnell from the U.S. Attorney’s Office for the District of Connecticut and Trial Attorney Stephen Da Ponte in the Environmental Crimes Section of the Environment and Natural Resources Division of the Department of Justice.
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(203) 821-3722 [email protected]Sentencing for May 8 - 15, 2014Read the Press Release
Jose Gabriel Martinez-Sanchez, 23, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on May 15, 2014, for illegal re-entry of a previously deported alien into the United States. Martinez-Sanchez was arrested in Jackson, Wyoming. He received time served, plus 10 days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Janet Lea Lilly, 50, of Gillette, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on May 8, 2014, for conspiracy to possess with intent to distribute, and to distribute methamphetamine. Lilly was arrested in Gillette, Wyoming. She received 87 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Robert William Bower, 28, of Evanston, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on May 8, 2014, for conspiracy to possess with intent to distribute, and to distribute, at least 500 grams to 1.5 kilograms of a mixture or substance containing a detectable amount of methamphetamine. Bower was arrested in Evanston, Wyoming. He received 78 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $200.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Security Guard Sentenced to 15 Years in Prison for Coercing and Enticing Minors into ProstitutionRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that Naba Raheem Lewis (34, Tampa) was sentenced to 15 years in federal prison for coercing and enticing a minor to engage in sexual activity. Lewis pleaded guilty to this offense on January 24, 2014.
According to the plea agreement, on June 12, 2013, the Tampa Police Department received a 911 call in reference to a room at the Americas Best Value Inn & Suites. While conducting the investigation, officers made contact with two 16-year-old females and a baby. Further investigation determined that Lewis had met one of the minors on an Internet website, in June 2013. Lewis had browsed the site and found the minor’s Internet profile, then utilized the information to send her a private message. Lewis informed the minor that he was reviewing her photographs online and noticed that she had a child. He told her that he knew how she could make money to help care for her child.
Lewis subsequently obtained sexually explicit photos of the minor victim and her friend. Lewis then posted an Internet advertisement listing his telephone number so that he could schedule dates for the minor victims to meet men and have sex with them in exchange for money. To facilitate the crimes, Lewis rented two hotel rooms at the Americas Best Value Inn & Suites. One room was used for Lewis and the minors to sleep, while the other room was designated for prostitution. Lewis took all of the money that the minors earned from prostitution and stashed it in one of the hotel rooms.
During the investigation, law enforcement determined that Lewis attempted to recruit numerous females into prostitution using his social media accounts. At least one of the unidentified females was determined to be 15 years old.
This case was investigated by the Tampa Police Department and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Stacie B. Harris.
It is another case 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 (CEOS), 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.projectsafechildhood.gov.
School Proctor Sentenced to Prison in Student Financial Aid Fraud SchemeRead the Press Release
Three Defendants Convicted for Changing Test Scores to Qualify Students for Federal Grants
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Jacqualyn Sue Caldwell, age 55, of Baltimore, today to a year and a day in prison, followed by three years of supervised release, for conspiring to defraud a student financial aid program.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Steven Anderson, Special Agent in Charge of the U.S. Department of Education, Office of Inspector General Mid-Atlantic Regional Office.“Students without high school diplomas who applied for financial aid to attend trade schools were required to pass the Ability to Benefit test and demonstrate their aptitude to complete the educational program and work in the field,” said U.S. Attorney Rod J. Rosenstein. “By cheating, the defendants defeated the purpose of the tests and defrauded the government.”
Caldwell was a test administrator for a company that offered cognitive tests to schools and businesses. During her employment, Caldwell worked almost exclusively as a test proctor for student admissions at the All-State Career School, a for-profit trade school located on Broening Highway in Baltimore.
Students who applied for federal financial aid at All-State were required to have a high school diploma, possess a GED, or pass a designated Ability to Benefit (ATB) test. Caldwell was certified to administer the ATB test onsite at All-State’s campus. Her duties did not include scoring the tests; rather, she was to collect the students’ answer sheets, seal them in an envelope and mail them to her company’s headquarters in Illinois, where they were scored and the results sent back to All-State. The ATB test used a Scan Tron answer sheet that required students to use pencils to fill in circles next to the correct answers. Student applicants who initially failed the ATB test could take it again.
According to Caldwell’s plea agreement, soon after starting her job as a test proctor at All-State in 2008, an All-State admissions representative asked Caldwell for an applicant’s answer sheet so that the representative could change some of the applicant’s answers to allow the applicant to pass the test. Caldwell agreed. Caldwell allowed the representative access to the answer sheet by not sealing the envelope containing the applicants’ answer sheets and leaving the envelope on the receptionist’s desk. After the admissions representative corrected the applicant’s wrong answers, the representative put the answer sheet back into the envelope, sealed it and left it to be mailed. Thereafter, this process was repeated by the representative for other applicants. Caldwell also agreed to employ the same process for a second representative.
Subsequently, a second representative suggested, and Caldwell agreed, that Caldwell erase and change just enough incorrect answers to provide a passing grade for student applicants taking the test for a second time. The representative provided Caldwell with a completed Scan Tron answer sheet and told Caldwell which student applicants were taking the test for a second time, so that Caldwell could correct their answer sheets.
Although the first two representatives agreed not to tell anyone that Caldwell was changing test scores for their student applicants, a third admissions representative asked Caldwell to change scores on answer sheets, which Caldwell agreed to do. Thereafter, Caldwell was continuously approached in the hallways by the three admissions representatives about “helping” a student pass the ATB test on the second try, and Caldwell agreed to do it every time.
According to Moore’s plea agreement, Moore learned through another admissions representative that Caldwell could ensure that students who failed the ATB the first time would pass it the second time. Between January and December 2011, Caldwell agreed to Moore’s requests to help prospective students pass the test the second time.
During her tenure at All-State from 2008 to December 2011, Caldwell changed the answer sheets for approximately 170 students. Approximately 102 of them went on to enroll at All-State and became eligible to receive federal financial aid in the form of Pell Grants and student loans. Approximately 72 of those students received financial aid totaling approximately $572,255.
All-State admissions representatives Jesse Raymond Moore, Sr., age 30, of Crofton, Maryland and Barry Sugarman, age 63, of Owings Mills, each pleaded guilty to the conspiracy. Moore and Sugarman were paid a salary by All-State and were eligible for performance-based raises and commissions for each student that graduated. Moore and Sugarman admitted that they asked Caldwell to manipulate the test results to give applicants taking the test a second time a passing score, which she did. Sugarman also told prospective students to understate their income from previous years when they applied for federal aid in order to qualify for the maximum amount of Pell grants and student loans. Moore was sentenced to four years probation and ordered to pay a $2,000 fine. Sugarman was sentenced to two years probation and ordered to pay a $5,000 fine.
United States Attorney Rod J. Rosenstein praised the FBI and Department of Education, Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Martin Clarke, who is prosecuting the cases.
San Antonio Man Sentenced to Federal Prison for Distributing Child PornographyRead the Press Release
In San Antonio, 32-year-old Jorge Pena, Jr., was sentenced to 150 months in federal prison followed by 25 years of supervised release for distributing child pornography announced United States Attorney Robert Pitman and Homeland Security Investigations (HSI) Special Agent in Charge Janice Ayala.
Court records reflect that HSI agents who were conducting an investigation into on-line exploitation of minors executed a search warrant at the defendant’s residence in February 2012 and seized several computers and related equipment. A subsequent forensics examination of the seized items revealed the presence of hundreds of videos and images depicting sexual exploitation of pre-pubescent children.
On March 12, 2014, Pena pleaded guilty to one count of distribution of child pornography. By pleading guilty, Pena admitted to viewing child pornography since approximately 2005 and knowingly distributing at least 19 files which contained child pornography to other individuals via the Internet.
“By conducting these types of investigations, HSI is taking child predators off the Internet, off the streets, and putting them behind bars,” said Special Agent in Charge, Janice Ayala, HSI San Antonio. “Targeting these crimes against children is a high priority for HSI. We will continue to dedicate law enforcement resources to identify and bring to justice child predators that traumatize and victimize children.”
This case was investigated by special agents with HSI and prosecuted by Assistant United States Attorney Tracy Thompson.
Rindge Man Pleads Guilty to Tax EvasionRead the Press Release
In Connection With Fraudulent Investment OperationCONCORD, NEW HAMPSHIRE – Aaron E. Olson, 39, of Rindge, New Hampshire, pleaded guilty in United States District Court for the District of New Hampshire to four counts of tax evasion, announced United States Attorney John P. Kacavas.
Beginning in 2007 through 2010, Olson was the sole proprietor of an investment business that did business as AEO Associates (AEO). In December of 2010, he formed KMO Associates LLC (KMO), an investment business that was registered in Massachusetts. Olson ran both operations from an office in Jaffrey, New Hampshire. Olson used AEO and later KMO to obtain approximately $27.8 million from individuals and organizations ostensibly to invest on their behalf. Olson was not licensed as an investment broker in New Hampshire or in any other jurisdiction and he did not register AEO and KMO with the State of New Hampshire as investment businesses.
Olson used approximately $2.6 million of the investors’ money for his personal benefit and used some of the investors’ money to make fraudulent “earnings” payments to other investors. To conceal this conduct, Olson sent investors fictitious earnings statements that falsely showed significant earnings in their accounts.
Olson also filed false and fraudulent joint individual tax returns with the IRS in which he attempted to evade or defeat taxes he owed based on his income from the fraudulent investment operation. Among other things, Olson failed to report the gross receipts and expenses associated with the operation of AEO and KMO and he failed to issue Forms 1099 with the Internal Revenue Service summarizing investors’ annual gains and losses. In total, Olson fraudulently understated the income taxes he owed for the four years by more than $664,000.
Olson is facing a maximum sentence of five years in prison and a maximum fine of $250,000 on each charge. Additionally, Olson may be ordered to pay restitution to the defrauded investors in lieu of paying the taxes he owes to the United States. He is scheduled to be sentenced in September 2014.This case is being investigated by the office of Criminal Investigations for the Internal Revenue Service in conjunction with the New Hampshire Bureau of Securities Regulation and is being prosecuted by Assistant United States Attorney Mark S. Zuckerman.
Richmond Man Sentenced for Theft of Copper from VARead the Press Release
Contact: James M. Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Derek
Less, 26, of Richmond, Maine, was sentenced today in U.S. District Court in Bangor to time served, up to six months of community confinement and three years of supervised release for stealing copper from facilities operated by the U.S. Department of Veterans Affairs (VA) in
Togus, Maine. He was also ordered to pay $2,590.30 in restitution. The defendant has been detained since his arrest on November 19, 2013.According to court records, in July and August 2012, the defendant stole over 400 pounds of copper wire and pipe fittings from the VA and sold them to Clark’s Cars & Parts, Inc. to support his drug addiction.
The investigation was conducted by the VA’s Criminal Investigation Division, Office of
Inspector General.Portland Man Pleads Guilty to Crack Cocaine ConspiracyRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Biniam
Tsegai, 26, of Portland, pled guilty today in United States District Court before Judge Nancy
Torresen to conspiring to distribute cocaine base, also known as crack cocaine.According to court records, in 2011 and 2012, the defendant was part a drug trafficking conspiracy that acquired cocaine in Boston and distributed crack cocaine in the greater Portland area. He prepared crack cocaine for sale and distribution after it had been brought to Maine and he took orders for and delivered user-level quantities of crack cocaine to customers.
He faces up to 40 years in prison and a $5,000,000 fine. He will be sentenced after completion of a pre-sentence investigation report by the United States Probation Office.The investigation was conducted by the Federal Bureau of Investigation (FBI), the
Portland Police Department, the Maine Drug Enforcement Agency, the Maine State Police and the Southern Maine Gang Task Force, which is a task force comprised of agents and officers from FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Homeland
Security, U.S. Drug Enforcement Administration and the Portland and Biddeford Police
Departments.Philadelphia Man Charged with Attempting to Disable Mass TransitRead the Press Release
Nicolas Colon, 23, of Philadelphia, Pennsylvania, was charged today by indictment with one count of disabling and attempting to disable a mass transportation vehicle and one count of conveying false information concerning an attempt to disable a mass transportation vehicle, announced United States Attorney Zane David Memeger.
According to the indictment, on or about March 16, 2014, Colon placed objects and debris on the subway train tracks of the Broad Street Line of the Southeastern Pennsylvania Transportation Authority (“SEPTA”). On or about March 18, 2014, Colon allegedly provided a false name, false date of birth, and false Social Security number to law enforcement officers investigating the Broad Street Line incident.
If convicted of both counts, Colon faces a maximum possible sentence of 40 years in prison, a $500,000 fine, three years of supervised release and a $200 special assessment.
The case was investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force in Philadelphia, including the SEPTA Transit Police Department. The case is being prosecuted by Assistant United States Attorney Vineet Gauri.Click here to view the indictment
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Peabody Investment Advisor Pleads Guilty to Defrauding ClientsRead the Press Release
BOSTON – A Peabody investment advisor pleaded guilty today to defrauding several Boston-area residents out of their retirement savings.
John Michael Babiarz, 40, of Peabody, pleaded guilty before U.S. District Judge F. Dennis Saylor, IV to wire fraud and aggravated identity theft. In December 2013, Babiarz was arrested and charged. He is scheduled to be sentenced on August 1, 2014.
Following his termination in September 2011from Bishop, Rosen & Co., a retail brokerage firm headquartered in New York, Babiarz falsely told some of his former clients that he had taken a job at Fidelity Investments, the Boston-based asset management firm. Babiarz told other clients that he was working as an independent financial advisor. Babiarz told his clients that he could continue to manage their money if they opened online brokerage accounts at Fidelity. Babiarz assisted the individuals in opening such accounts online, and in so doing, set up the user names and passwords for those accounts. Unbeknownst to his clients, Babiarz then caused their funds – or money he borrowed in their names on margin – to be diverted to accounts that he controlled at several other banks and brokerage firms. Babiarz used the money to buy a new home and a car, and to pay other personal expenses.
Babiarz was previously charged in an administrative complaint brought by the Massachusetts Securities Division with engaging in unregistered and fraudulent activities in violation of the Massachusetts Uniform Securities Act and applicable regulations.
Babiarz faces a maximum sentence of 20 years in prison, three years of supervised release and a $250,000 fine, or twice the gross gain or loss from the offense on the wire fraud charge and a mandatory consecutive term of two years in prison, one year of supervised release, and a fine of $250,000 on the charge of aggravated identity theft.
United States Attorney Carmen M. Ortiz and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The case is being prosecuted by Assistant United States Attorney Stephen E. Frank of Ortiz’s Economic Crimes Unit.
Passaic County, N.J., Man Admits Distributing Images of Child Sexual Abuse over the InternetRead the Press Release
NEWARK, N.J. – A Wayne, N.J., man admitted today to sharing images of child sexual abuse from his home computer, U.S. Attorney Paul J. Fishman announced.
Manuel Fernandez, 33, pleaded guilty today before U.S. District Judge Jose L. Linares in Newark federal court to one count of an indictment charging him with distributing images of child pornography over the Internet. Fernandez has been in custody since his arrest in January 2012.
According to documents filed in the case and statements made during Fernandez’s guilty plea proceeding:
Fernandez admitted that between March 2011 and January 2012, he was a member of an online peer-to-peer file sharing network. Fernandez also admitted he made images and videos of child pornography available for other members to download from his “shared” folder. On March 24, 2011, an undercover law enforcement agent successfully downloaded multiple images and videos of child sexual abuse from Fernandez’s computer.
On Jan. 25, 2012, federal law enforcement agents executed a search warrant at Fernandez’s residence. The agents recovered a 1-terabyte hard drive and a 250-gigabyte computer tower, both of which contained numerous images and videos of minor children being sexually abused.
As part of his guilty plea, Fernandez agreed to forfeit the computers and computer accessories he used to commit the offense. He will also be required to register as a sex offender.
The distribution of child pornography count to which Fernandez pleaded guilty carries a mandatory minimum penalty of five years in prison and a maximum statutory penalty of 20 years in prison and a $250,000 fine. Sentencing is currently scheduled for Aug. 19, 2014.
U.S. Attorney Fishman credited special agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Newark Field Office, under the direction of Special Agent in Charge Andrew M. McLees, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Rahul Agarwal of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Chris Adams Esq. Holmdel, N.J.
Fernandez, Manuel Indictment
Owner of Smoke Shops in Bakersfield, Fresno and Visalia Pleads Guilty to Fraud Relating to the Sale of Synthetic DrugsRead the Press Release
FRESNO, Calif. — Victor Anthony Nottoli, 51, of Hillsborough, Calif., pleaded guilty today to one count of conspiracy to defraud the United States and one count of causing at least 24 tons of misbranded smokable synthetic cannabinoids (SSC) to be introduced into interstate commerce. Four defendants arrested last week for manufacturing and distributing SSC were indicted today. The guilty plea and the indictments were announced by United States Attorney Benjamin B. Wagner; Jeffrey J. Fitzpatrick, Special Agent in Charge of the San Francisco Field Division of the U.S. Drug Enforcement Administration; Jose Martinez, Special Agent in Charge of the Oakland Field Office, Internal Revenue Service, Criminal Investigation; and Clark E. Settles, Special Agent in Charge of the San Francisco Field Office of the U.S. Immigration and Customs Enforcement’s, Homeland Security Investigations.
Nottoli pleaded guilty to one count of conspiracy to defraud the United States by interfering with the lawful governmental regulatory and enforcement functions of the FDA and DEA. According to court documents, between April 1, 2011, and June 26, 2013, Nottoli generated more than $20 million by distributing the SSC products commonly known as K2 or spice in retail outlets throughout the U.S. and from his six smoke shops doing business under the name “The Stuffed Pipe,” and located at 5135 W. Shaw Ave., Fresno; 2377 E. Shaw Ave., Fresno; 7273 N. Blackstone Ave., Fresno; 516 E. Olive Ave., Fresno; 1318 S. Mooney Ave., Visalia; and 3719 Wilson Rd., Bakersfield. In 2012, Nottoli bought a Florida company that manufactured and distributed SSC products and brought the production and distribution operations to a warehouse in Millbrae, Calif. Then in January 18, 2013, Nottoli leased a warehouse in Stockton and began manufacturing and distributing SSC products from that location.
According to court documents, Nottoli and his co-conspirators manufactured and distributed SSC products containing hallucinogenic chemical compounds AM‑2201 and XLR11. They referred to the SSC products as herbal incense, spice, botanicals, and potpourri and marketed them under names such as “Bizarro,” “Posh,” “Sonic Zero,” “Headhunter,” “Neutronium,” and “Orgazmo.” The products were labeled, “Not for Human Consumption.”
As charged in count two, Nottoli pleaded guilty to causing misbranded SSC products or drugs to be introduced into interstate commerce. According to court documents, between August 1, 2012, and June 26, 2013, twenty-four tons of misbranded drugs intended for human consumption were packaged and sold without the labeling required by law and necessary to protect the user such as: the place of business of the manufacturer, packer, or distributor; an accurate statement of the contents; adequate directions for use; warnings against use by children or where its use may be dangerous to health; warning against unsafe dosage; or methods or duration of administration or application.
In pleading guilty, Nottoli specifically agreed to the forfeiture of more than $6.6 million of drug proceeds: $6,488,000 in cash and $191,000 in other assets, including a truck and an Airstream Trailer.
Also today, a federal grand jury indicted Douglas Jason Way, 41, of Evanston, Ill.; Timothy Ortiz, 43, of Waukegan, Ill.; Timothy New, 31, of Pensacola, Fla.; and Natalie Middleton, 28, of Clovis, Calif., for their roles in Nottoli’s synthetic drug enterprise. The indictment charges Way, Ortiz, and New with conspiring to manufacture and distribute synthetic cannabinoids and with manufacturing, distributing, and attempting to possess with intent to distribute SSC products. Middleton, along with Way, Ortiz, and New, are also charged with causing the introduction of misbranded drugs into interstate commerce. Middleton individually was charged with engaging in a monetary transaction in property derived from drug trafficking to buy a time share in Lake Tahoe, Nevada.
“The use of synthetic or designer drugs has increased dramatically among teenagers and young adults. Although synthetic cannabinoids are marketed as ‘legal’ alternatives to marijuana, they are not only illegal but can be extremely harmful,” U.S. Attorney Wagner said. “We are committed to working with our law enforcement partners to shut down the manufacturers and distributors who reap tremendous profits without regard for the law or public safety.”
If convicted of the drug charges, Way, Ortiz, New, and Middleton face a maximum statutory penalty of 20 years in prison and a $1 million fine or twice the gain. The maximum statutory penalty for money laundering is 10 years in prison and a $250,000 fine. The FDA mislabeling charge carries a maximum penalty of three years in prison and a $10,000 fine or twice the gross gain. Any sentence imposed would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Way, Ortiz, and Middleton are scheduled for arraignment on May 21, 2014, in Fresno. New was ordered detained by a U.S. Magistrate Judge in Dallas, and is awaiting transportation to federal court in Fresno.
Today’s guilty plea and indictment follows on the heels of last week’s nationwide synthetic drug takedown in connection with Project Synergy Phase II. Project Synergy is a law enforcement initiative coordinated by the DEA that brings together federal, state, local, and international law enforcement resources to target the dangerous global synthetic designer drug industry.
President Obama signed the Synthetic Drug Abuse Prevention Act into law in 2012, making 26 types of synthetic cannabinoids, including AM-2201, Schedule I drugs under the Controlled Substance Act. Last May, DEA placed XLR11 in Schedule I after the Centers for Disease Control and Prevention found that acute kidney injury is associated with XLR11.
This case is the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the DEA, IRS-CI, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with assistance from the Office of Criminal Investigations of the Food and Drug Administration (FDA) and the Fresno County Sheriff’s Office. Assistant United States Attorney Karen A. Escobar is prosecuting the case and Assistant United States Attorney Heather Mardel Jones is handling the forfeiture of assets.
Owner of Local Advertising Company Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO – CARY JORDAN was sentenced to 18 months on fraud charges involving his diversion of over $500,000 of client funds for his personal use. Additionally, he was ordered to pay restitution of $519,975.
According to court documents, Cary Jordan owned and operated the Jordan Group, which was in the business of assisting companies in placing advertisements with various print, radio, television and outdoor media companies throughout the United States and Canada. Jordan Group clients contracted them to act on their behalf in finding media outlets for their advertising campaigns. Once the Jordan Group located media outlets in the appropriate geographical location for the advertising campaigns, they negotiated with the media outlets on behalf of its clients and invoiced a pre-bill to the client based on the price and estimated number of advertising spots negotiated with the media outlets. In turn, clients paid the Jordan Group based on the pre-bill. After the ads ran, the media outlets invoiced the Jordan Group based on the price and actual number of advertising spots that ran. The Jordan Group then made payment to the media outlet from the funds it received from its client due to the pre-bill.
Between January and October 2008, the Jordan Group ceased paying the media outlets for their advertising spots. Instead, Cary Jordan diverted funds for his personal use and invested in other non-related investment opportunities.
Jordan, formerly of Webster Groves, MO, currently residing in Florida, pled guilty in February to two felony counts of mail fraud. He appeared today for sentencing before United States District Judge John A. Ross.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Dianna Collins handled the case for the U.S. Attorney’s Office.
Owner of Car Dealership Sentenced to More Than 17 Years for Laundering over $3 MillionRead the Press Release
Tampa, FL – U.S. District Judge Virginia M. Hernandez Covington yesterday sentenced Samih Abdel Rahman (51, Tampa) to 17 years and 6 months in federal prison for his involvement in a conspiracy to launder approximately $3,335,898 of proceeds from stolen identity refund fraud and drug trafficking.
Rahman pleaded guilty on January 24, 2014.
According to court documents and other evidence, Rahman was the owner and operator of Sam & Sons Auto Sales, Inc., a used car dealership located in Tampa. For a period of years, beginning no later than 2008, until March 2013, Rahman, who was assisted by others, sold vehicles to customers who paid with proceeds from stolen identity income-tax refund fraud and narcotics trafficking. Knowing that the payments were derived from ill-gotten gains, Rahman laundered the money in a manner that concealed its illicit sources. An estimate of the total amount of money laundered by Rahman is $3,335,898.
Among other ways, Rahman laundered these monies by putting the title of vehicles sold at Sam & Sons in the names of "straw purchasers" – that is, someone other than the actual buyer and intended user of that vehicle. Rahman also disguised the criminal identities of the true buyers of the cars by creating and processing false paperwork for the sales, including fake bills of sales and payment receipts. When receiving cash payments of more than $10,000 of illicit proceeds, Rahman would further launder the money by structuring cash deposits. He structured the deposits in a way that avoided triggering reporting requirements by the bank. He also failed to report those transactions appropriately, as was required under federal law for a car dealership receiving that amount of cash during the sale of a vehicle.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Matthew Jackson.
Omaha Man Sentenced for Filing False Tax ReturnRead the Press Release
United States Attorney Deborah R. Gilg announced that John Main, age 62 of Omaha, Nebraska, was sentenced for making a false declaration on his 2006 tax return. The Honorable Richard G. Kopf sentenced Main to five years probation, 100 hours of community service, and six months of home confinement with an electronic monitoring device.
As the sole proprietor of Main Concrete and Construction, Main is required to file a Form Schedule C as part of his Form 1040. On his 2006 and 2007 tax returns, he underreported his gross receipts by $860,491.00. When he filed his returns, he signed a declaration under the penalty of perjury that the information contained therein was true when in fact he knew the gross receipt figures were wrong. Judge Kopf found that the amount of tax loss to the United States was $240,937 and ordered Main to pay restitution to the IRS in that amount.
“We should not forget that the ultimate victims in tax fraud cases are the American people – those honest taxpayers who diligently file tax returns and pay what they owe each year,” said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation.
This case was investigated by IRS Criminal Investigation.
New York Physician Admits Taking Bribes in Test-Referrals Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – A physician with a practice in New York admitted today to accepting over $100,000 in exchange for test referrals as part of a massive bribery scheme operated by Biodiagnostic Laboratory Services LLC (BLS) of Parsippany, N.J., its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
Michele Martinho, 39, of New York, pleaded guilty today before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging her with one count of accepting bribes.
According to documents filed in this and other cases and statements made in court:
Martinho admitted that from September 2010 through April 2013, she accepted bribes of $5,000 per month in cash in return for referring patient blood specimens to BLS, for which BLS received more than $350,000. Martinho accepted approximately $155,000 in bribes.
BLS salesman Kevin Kerekes paid the cash bribes to Martinho. Kerekes pleaded guilty to his involvement in the scheme on June 10, 2013.
The bribery count to which Martinho pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for July 8, 2014. As part of her guilty plea, Martinho agreed to forfeit $155,000, representing the bribes she received from BLS.
Including Martinho, 27 people – including 16 physicians – have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. The investigation has recovered more than $7 million to date through forfeiture.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Thomas O’Donnell; IRS– Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s guilty plea.The government is represented by Assistant U.S. Attorney Joseph Minish, Senior Litigation Counsel Andrew Leven, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $535 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
14-173Defense counsel: Arthur Aidala Esq., New York
Martinho, Michele Information
New York Attorney Indicted for Defrauding Two International Companies Out of Hundreds of Thousands of DollarsRead the Press Release
NEWARK, N.J. – A New York attorney was indicted today for his role in an alleged scheme to defraud two international companies out of hundreds of thousands of dollars by fraudulently billing them for services that were never provided, U.S. Attorney Paul J. Fishman announced.
Marijan Cvjeticanin, 50, of St. James, N.Y., was indicted today by a federal grand jury in Newark on six counts of mail fraud. The government is seeking the forfeiture of all funds fraudulently obtained by Cvjeticanin as a result of the scheme. Cvjeticanin was previously arrested and charged in May 2013 by complaint with one count of mail fraud.
According to the indictment and other documents filed in this case:
From approximately September 1996 to September 2012, Cvjeticanin was employed by a New York law firm specializing in immigration law, first as a paralegal and then as an attorney. Among other clients, the firm represented two international companies – with offices in New Jersey – in connection with various immigration law matters. Cvjeticanin was the case manager handling day-to-day tasks such as filing applications for permanent residency for certain foreign workers of those companies employed in the United States on a temporary basis.
The application process required the companies to place job ads, in the geographic location where the relevant position was located, to demonstrate that there were no minimally qualified U.S. citizens available to fill that position. To do that, Cvjeticanin caused the firm to retain a supposed advertising agency, Flowerson Holdings Inc., a/k/a Flowerson Advertising, which allegedly handled all of the advertisement obligations of the companies in connection with permanent residency applications. Neither the firm nor the companies knew that Cvjeticanin owned and controlled Flowerson.
From 2010 through September 2012, the companies paid Flowerson approximately $579,000 for advertisements, but Flowerson did not place the majority of those ads. Instead, Cvjeticanin stole the money and used it for his personal benefit.
If convicted, Cvjeticanin faces a maximum potential penalty of 20 years in prison and a $250,000 fine on each of the six counts.U.S. Attorney Fishman credited special agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees, Newark Field Office, and the U.S. Department of State Diplomatic Security Service, New York Field Office, under the direction of Special Agent in Charge David J. Schnorbus, with the investigation.
The government is represented by Assistant U.S. Attorney Francisco J. Navarro of the U.S. Attorney’s Office General Crimes Unit in Newark and Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office Criminal Division in Trenton.The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Defense counsel: Lorraine Gauli-Rufo Esq., Verona, N.J.Marijan, Cjeticanin Indictment
Navy Senior Chief Sentenced for Conspiracy to Submit False Claims to the United States and Identity TheftRead the Press Release
Gulfport, Miss. – Carl E. Moore, 42, of Gulfport, Mississippi, was sentenced today by U.S. District Judge Sul Ozerden to a total of 43 months in federal prison followed by three years of supervised release for conspiracy to submit false claims to the United States and aggravated identity theft, announced U.S. Attorney Gregory K. Davis and Naval Criminal Investigative Service (NCIS) Supervisory Special Agent in Charge Tara Jasinski. Moore was also ordered to pay a $2,000 fine and restitution in the amount of $61,267.61 to the Government.
On February 24, 2014, Moore pled guilty to conspiring with others to submit false claims to the United States Department of Defense by falsifying various travel documents while serving in the Navy at the Naval Mobile Construction Battalion 74 in Gulfport, Mississippi. He also pled guilty to aggravated identity theft for using, without lawful authority, the identification of another person during and in relation to another federal felony charged in the indictment.
This case was investigated by the NCIS and prosecuted by Assistant U.S. Attorney Ruth Morgan.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Naples Man Sentenced for Making False Statements to FBIRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Brandon Todd, 20, of Naples, N.Y., who was convicted of making false statements to the Federal Bureau of Investigation, was sentenced to 12 months in prison and three years supervised release by U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Jennifer M. Noto, who is handled the case, stated that the defendant called the FBI in April and early May 2013 claiming to have information about sex trafficking. Todd also claimed to be involved in sex trafficking and to have connections to a group involved in sex trafficking. Following the defendant’s calls, the FBI began an investigation into Todd’s claims. On July 10, 2013, the defendant made false statements to an FBI Special Agent that he had recruited approximately 49 girls for a sex trafficking ring and that he was a member of a gang. At the time, Todd knew that these statements were false. These false statements – concerning the nature of the defendant’s involvement in a sex trafficking ring and his affiliation with a gang - were material to the FBI’s investigation.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation.Murrysville Woman Gets 8 Years in Prison for Years-Long Oxycodone Distribution SchemeRead the Press Release
PITTSBURGH - A Murrysville woman has been sentenced in federal court to 96 months imprisonment, to be followed by five years of supervised release, on her conviction of conspiracy to distribute oxycodone and health care fraud, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill, Jr. imposed the sentence yesterday on Paula Jackson, 40.
According to information presented to the court, Jackson conspired with others to engage in a multi-year long oxycodone pill distribution conspiracy, during which Jackson obtained more than 17,000 pills. Jackson both sold the pills she obtained and consumed them. As part of the conspiracy, Jackson stole the DEA numbers of various area doctors and also used stolen health care insurance information to pay for the pills that she fraudulently obtained.
Prior to imposing sentence, Judge Cohill noted the seriousness of the offenses as well as the damage done to the doctors who had their identities stolen by Jackson.
Assistant United States Attorney Eric S. Rosen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Jackson.
Mississippi Man Pleads Guilty to Abusive Sexual Contact of A Minor Under the Age of TwelveRead the Press Release
Jackson, Miss. - Brandon Farmer, 20, a member of the Mississippi Band of Choctaw Indians, pled guilty today, before Senior U.S. District Judge Tom S. Lee, to abusive sexual contact of a minor under the age of twelve, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen. The offense occurred on the tribal lands of the Mississippi Band of Choctaw Indians.
Farmer will be sentenced on July 31, 2014, and faces a maximum sentence of life in prison and a $250,000.00 fine.
This case was investigated by the Federal Bureau of Investigation and the Choctaw Police Department. It is being prosecuted by Assistant U.S. Attorney Patrick Lemon..If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Member of Organization That Operated Online Marketplace for Stolen Personal Information Sentenced to 20 Years in PrisonRead the Press Release
A Phoenix man convicted after a jury trial last December of conspiracy and racketeering offenses for his involvement in a sophisticated cybercrime organization was sentenced today to serve 20 years in prison.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada and Special Agent in Charge Claude Arnold of Homeland Security Investigations (HSI) in Los Angeles made the announcement.
David Ray Camez, 22, also known as “Bad Man” and “doctorsex,” was sentenced by U.S. District Judge Andrew P. Gordon. Camez was convicted on Dec. 6, 2013, of one count of participating in a racketeer influenced corrupt organization and one count of conspiracy to participate in a racketeer influenced corrupt organization. In addition to his prison term, he was also sentenced to serve three years of supervised release and ordered to pay $20 million in restitution.
“Camez was a member of a vast criminal organization that facilitated rampant cyber fraud throughout the world,” said Acting Assistant Attorney General O’Neil. “This organization is the new face of organized crime – a highly structured cyber network operated like a business to commit fraud on a global scale. Members, like Camez, paid to tap into the network and gain control of highly sensitive information, like compromised credit card numbers and stolen identities. Thanks to sophisticated law enforcement efforts, Camez will now pay for his crimes with decades in prison.”
“As shown in this case, cybercrime has grown into an industry and is rapidly overtaking traditional crime such as bank robbery,” said U.S. Attorney Bogden. “Cybercrime was once viewed as the crime wave of the future but in reality, that threat is here now. We will continue working with our international law enforcement partners on cases such as this to track and prosecute this new wave of thieves.”
“As this sentence demonstrates, cyber-criminals who purposely harm innocent Americans and compromise the world’s economic stability will be aggressively pursued, investigated and prosecuted – and ultimately receive the justice they deserve,” said HSI Special Agent in Charge Arnold. “This case is a stellar example of how interagency law enforcement cooperation and teamwork can successfully bring down an entire organized criminal conspiracy.”
Camez was one of 39 charged in an indictment returned in January 2012. Seven others have pleaded guilty, two are scheduled for trial in June, and the rest are fugitives. Sixteen other defendants were also charged in the scheme in three separate indictments, and 14 have pleaded guilty to date.
The target of the investigation was an organization that called itself “Carder.su.” Investigation of the Carder.su organization began in March 2007, after the United States Secret Service, operating in conjunction with Homeland Security Investigations (HSI) and other federal, state and local law enforcement agencies who participate in the Southwestern Identity Theft and Fraud Task Force (SWIFT), began investigating a pattern of credit and debit card fraud. A special agent initiated an undercover investigation called Open Market and assumed the identity as a member of the organization when it was in its infancy.
The investigation determined that members of the Carder.su organization, known as “carders,” were involved in large scale trafficking of compromised credit card account data and counterfeit identifications and credit cards, as well as money laundering, narcotics trafficking and various types of computer crime. The organization operated an Internet web portal called a forum, where members could purchase the illicitly obtained data and share knowledge of various fraud schemes. A second forum was also created to vet incoming new members. The forums were generally hosted within the former Soviet Union and the upper echelon of the organization resides within the former Soviet Union. In July 2011, the organization had an estimated 5,500 members.
Members of the organization had different roles, including moderators who directed other members in carrying out activities; reviewers who examined and tested products, services and contraband; vendors who advertised and sold products, services and contraband; and members. Members were required to successfully complete a number of security features designed to protect the organization from infiltration by law enforcement or members of rival criminal organizations. Camez became a member of the organization under the name “Bad Man” on June 22, 2008. Camez also used the name “doctorsex.” During 2009 and 2010, the undercover special agent had multiple contacts with Camez in which Camez purchased counterfeit Nevada and Arizona driver’s licenses. Investigators also intercepted and seized a package shipped to Camez from Pakistan which contained counterfeit credit and gift cards. During a search of Camez’ home in Phoenix in May 2010, agents recovered counterfeit credit cards, equipment used to manufacture counterfeit credit cards, counterfeit U.S. currency and counterfeit identification documents. A search of Camez’ computer revealed software used to encode counterfeit credit cards and stolen identity information.
In addition to the U.S. Secret Service, HSI and members of the SWIFT Task Force in Las Vegas, NASA’s Jet Propulsion Laboratory’s Computer Crimes Division also provided assistance in the investigation. The case was prosecuted by Trial Attorney Jonathan Ophardt of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Kimberly M. Frayn and Andrew W. Duncan of the District of Nevada.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov .# # #
Marubeni Corporation Sentenced<br /> for Foreign Bribery ViolationsRead the Press Release
Marubeni Corporation, a Japanese trading company involved in the handling of products and provision of services in a broad range of sectors around the world, including power generation, was sentenced today for its participation in a scheme to pay bribes to high-ranking government officials in Indonesia to secure a lucrative power project.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, Acting U.S. Attorney Michael J. Gustafson of the District of Connecticut and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement.
Marubeni was sentenced by U.S. District Judge Janet B. Arterton in the District of Connecticut. Marubeni pleaded guilty on March 19, 2014, to one count of conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) and seven counts of violating the FCPA. The company signed a plea agreement in which it admitted its criminal conduct, agreed to maintain and implement an enhanced global anti-corruption compliance program and to cooperate with the department’s ongoing investigation, and agreed to pay an $88 million fine, which the court accepted in imposing the sentence. The plea agreement cites Marubeni’s refusal to cooperate with the department’s investigation when given the opportunity to do so, its lack of an effective compliance and ethics program at the time of the offense, and its failure to timely remediate as several of the factors considered by the department in determining the resolution.
According to the court filings, Marubeni and its employees, together with others, paid bribes to officials in Indonesia – including a high-ranking member of the Indonesian Parliament and high-ranking members of Perusahaan Listrik Negara (PLN), the state-owned and state-controlled electricity company in Indonesia – in exchange for assistance in securing a $118 million contract, known as the Tarahan project, for the company and its consortium partner to provide power-related services for the citizens of Indonesia. To conceal the bribes, Marubeni and its consortium partner retained two consultants purportedly to provide legitimate consulting services on behalf of the power company and its subsidiaries in connection with the Tarahan project. The primary purpose for hiring the consultants, however, was to use the consultants to pay bribes to Indonesian officials.
Also according to court filings, the first consultant retained by Marubeni and its co-conspirators received hundreds of thousands of dollars in his U.S. bank account to be used to bribe the member of Parliament. The consultant then allegedly transferred the bribe money to a bank account in Indonesia for the benefit of the official. E-mails between the co-conspirators discuss in detail the use of the first consultant to funnel bribes to the member of Parliament and the influence that the member of Parliament could exert over the Tarahan project.
As admitted in court documents, in the fall of 2003, Marubeni and its co-conspirators determined that the first consultant was not effectively bribing key officials at PLN. As a result, Marubeni and its consortium partner decided to reduce the first consultant’s commission from three percent of the total contract value to one percent, and pay the remaining two percent to a second consultant who could more effectively bribe officials at PLN. In an e-mail between two employees of Marubeni’s consortium partner, they discussed a meeting between Marubeni, an executive from the consortium partner, and the first consultant, stating that the consultant “committed to convince [the member of Parliament] that ‘one’ [percent] is enough.” Marubeni and its co-conspirators were successful in securing the Tarahan project and subsequently made payments to the consultants for the purpose of bribing the Indonesian officials.
Frederic Pierucci, a current executive at Marubeni’s consortium partner, pleaded guilty on July 29, 2013, to one count of conspiring to violate the FCPA and one count of violating the FCPA. David Rothschild, a former vice president of regional sales at the consortium partner, pleaded guilty on Nov. 2, 2012 to one count of conspiracy to violate the FCPA. Lawrence Hoskins, a former senior vice president for the Asia region for the consortium partner, and William Pomponi, a former vice president of regional sales at the consortium partner, were charged in a second superseding indictment on July 30, 2013.
This case is being investigated by FBI agents who are part of the Washington Field Office’s dedicated FCPA squad, with assistance from the Meriden, Connecticut, Resident Agency of the FBI. Significant assistance was provided by the Criminal Division’s Office of International Affairs. In addition, the department greatly appreciates the significant cooperation provided by its law enforcement counterparts in Indonesia at the Komisi Pemberantasan Korupsi (Corruption Eradication Commission), the Office of the Attorney General in Switzerland and the Serious Fraud Office in the United Kingdom.
The case is being prosecuted by Assistant Chief Daniel S. Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David E. Novick of the District of Connecticut.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa .Manchester Woman Sentenced to 15 YearsRead the Press Release
On Child Exploitation Charge
CONCORD, NEW HAMPSHIRE – Erin Upham, 21, of Manchester, was sentenced in United States District Court for the District of New Hampshire to 15 years in federal prison after pleading guilty to the sexual exploitation of a child, announced United States Attorney John P. Kacavas.
The investigation began in 2013 when the Manchester Police received information from the United States Air Force, Office of Special Investigations that the defendant, a resident of Manchester, was communicating with a member of the armed services who was currently stationed at Kadena Air Base in Okinawa, Japan. Specifically, the Air Force Special Agents informed the Manchester Police that they had information that the defendant’s communication was of a sexual nature and involved a minor child.
Federal search warrants were obtained for various electronic items belonging to Morrison and Upham. A forensic examination revealed digital images of a minor child engaged in sexually explicit conduct.
The charge was the result of an investigation by the United States Air Force, Office of Special Investigations, the Federal Bureau of Investigation, the Manchester and Derry Police Departments and the New Hampshire Internet Crimes Against Children Task Force and is being prosecuted under Project Safe Childhood, a nationwide initiative by the U.S. 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 (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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was prosecuted by Assistant United States Attorney Helen White Fitzgibbon.