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Wednesday 12 March 2014
Wilmington Man Sentenced for Firearm CaseRead the Press Release
ELIZABETH CITY – United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Terrence W. Boyle sentenced IRVING BENNERMAN , 47, of Wilmington to 210 months imprisonment, followed by 5 years of supervised release.
BENNERMAN was named in an Indictment filed on August 20, 2013 charging him with Possession of a Firearm by a Felon. On November 14, 2013, BENNERMAN pled guilty to that charge.
According to the investigation, on May 21, 2013 law enforcement officers received information that BENNERMAN was attempting to sell an assault rifle out of the trunk of a car in the Jervay Housing Community in Wilmington. Law enforcement responded to the area and found BENNERMAN with two other individuals near a car. After consent was given to search the car by the driver, law enforcement found a Bushmaster, model XM15-E2S, .223-5.56mm semi-automatic rifle, 10 large capacity magazines capable of holding 30 rounds each and over 400 rounds of ammunition in the trunk of the car. The others with BENNERMAN told law enforcement they had driven BENNERMAN to Jacksonville where BENNERMAN had gone into a house and came out with the firearm. The three drove back to Wilmington and BENNERMAN was attempting to sell the firearm to people on the street. The firearm was stolen from a residence in Jacksonville. The owner of the firearm identified BENNERMAN as a friend of his who had knowledge of the firearm. BENNERMAN was sentenced as an Armed Career Criminal having three previous convictions for crimes of violence.
Investigation of this case was conducted by the Wilmington Police Department, the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Special Assistant United States Attorney Charity Wilson served as prosecutor for the government. Ms. Wilson is a prosecutor with the New Hanover County District Attorney's Office. District Attorney Ben David has assigned her to the United States Attorney's Office to prosecute federal Project Safe Neighborhood cases and other violent crime cases.
Westchester Registered Sex Offender SentencedTo 19 and ½ Years in Prison for Attempting to EnticeA Minor to Engage in Sexual ActivityRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that ROBERT OKAMURA, 46, was sentenced to 19 years and 7 months’ imprisonment by United States District Judge Edgardo Ramos for his attempted enticement of a minor to engage in sexual activity. Judge RAMOS also imposed a 10-year term of supervised release to follow the imprisonment.
According to documents filed in this case and statements made in related court proceedings:
On November 27, 2011, OKAMURA, a registered sex offender on supervised release from an offense involving the repeated sexual abuse of a child, responded to an online advertisement placed by law enforcement and designed to appeal to pedophiles. At the time he was living in a shelter in Valhalla, Westchester County. Following a series of chats with an undercover agent posing as a pedophile, the undercover agent “introduced” OKAMURA to “Allison,” who purported to be a 15-year old girl but was, in fact, the same undercover agent. Following a series of explicit chats in which OKAMURA described the sexual acts he wanted to perform on the girl, OKAMURA made a plan to meet the girl at a hotel so that he could engage in sexual activities with her. On December 14, 2011, OKAMURA went to the hotel to meet the girl and was arrested.
OKAMURA pleaded guilty on July 18, 2013. At his guilty plea proceeding, OKAMURA admitted that he communicated via the internet with a person he believed was a 15-year-old girl and persuaded her to meet him for the purpose of engaging in sexual activity.
In imposing the sentence, Judge RAMOS underscored the seriousness of the offense. Judge RAMOS stated, “This shocking and flagrant course of conduct speaks to either a basic lack of respect for authority or an uncontrollable compulsion or both.”
Mr. Bharara praised the efforts and assistance of the Westchester County District Attorney’s Office and U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”).
This case is being handled by the White Plains Division. Assistant United States Attorney Marcia S. Cohen is in charge of the prosecution.
West Chester Man Charged with Threatening Federal Law EnforcementRead the Press Release
Justin Michael Credico, 32, of West Chester, PA, was charged by indictment, filed yesterday, with two counts of threatening Federal law enforcement officers and two counts of threatening the immediate family members of Federal law enforcement officers, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of 32 years imprisonment.
The case was investigated by agents of the Federal Bureau of Investigation and is being prosecuted by Special Assistant United States Attorney Karen Fox.
Click here to view the indictment
An Indictment or Information 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, 215-861-8525United States Settles False Claims Act Allegations Against ImporterRead the Press Release
SAN FRANCISCO – Bizlink Technology, Inc. (BTI), an importer of computer cable assemblies located in Fremont, California, has paid $1.2 million to settle allegations that it violated the civil False Claims Act by underpaying customs duties owed on goods imported from China, announced United States Attorney Melinda Haag and Brian J. Humphrey, U.S. Customs and Border Protection Director of Field Operations, San Francisco.
The United States alleges that, from 2006 through 2008, BTI underpaid customs duties on goods that BTI imported into the United States from Bizlink International Electronics Co., Ltd., a factory in Shenzhen, China. BTI allegedly obtained two sets of invoices for each shipment from the Chinese factory: one true invoice that BTI paid, and a second invoice falsely stating a lower cost. The false invoices were allegedly used to calculate the customs duties that BTI paid on the imported goods, resulting in substantial underpayments.
“This office remains committed to fighting fraud against the federal Treasury in whatever form it appears. When a company fails to pay the customs duties it owes, it takes from the federal government, and unfairly burdens honest individuals and companies who pay their fair share.” U.S. Attorney Haag said.
“Customs and Border Protection enforces U.S trade laws that protect our nation’s economy and the safety of our citizens. Customs Duty helps control the flow of legitimate foreign manufactured goods entering the country. Attempting to circumnavigate those requirements by fraud carries serious repercussions,” said Brian J. Humphrey, CBP’s Director of Field Operations in San Francisco.
The settlement resolves a whistleblower lawsuit filed in the United States District Court for the Northern District of California. A manager who formerly worked at BTI filed the case pursuant to the qui tam provisions of the False Claims Act. Under those provisions, private citizens, known as “relators,” may file lawsuits on behalf of the United States and receive a portion of the proceeds of a settlement or judgment. The relator will receive $252,000 as his share of the government’s recovery from BTI.
Assistant U.S. Attorney Sara Winslow handled the matter on behalf of the U.S. Attorney’s Office for the Northern District of California, with assistance from Financial Fraud Investigator Michael Zehr and Legal Assistant Kathy Terry. The matter was investigated by the DHS Offices of Inspector General and Homeland Security Investigations.
(Bizlink unsealing order )
U.S. Attorneys Booth Goodwin and Bill Ihlenfeld Recognize High School Juniors as Ambassadors for JusticeRead the Press Release
Third annual ceremony lauds students for exceptional character, commitment to social justice
CHARLESTON, W.Va. – United States Attorneys Booth Goodwin, Southern District of West Virginia, and Bill Ihlenfeld, Northern District of West Virginia, today recognized 88 high school juniors from throughout West Virginia as U.S. Attorney’s Ambassadors for Justice. The afternoon ceremony to honor the recipients took place at the Culture Center in Charleston. The U.S. Attorney’s Ambassador for Justice program is an initiative co-sponsored by the U.S. Attorney’s Office for the Southern and Northern Districts of West Virginia. It honors high school juniors who have shown outstanding leadership skills and a commitment to social justice.Today’s ceremony marked the third time that U.S. Attorney Goodwin has recognized leaders from high schools in the Southern District of West Virginia. This year, U.S. Attorney Ihlenfeld joined to recognize students from the Northern District of West Virginia as well.
“I am very pleased to honor these remarkable high school juniors from throughout the state of West Virginia as Ambassadors for Justice,” U.S. Attorney Goodwin said. “These 88 students have each demonstrated a powerful ethical compass and have shown tremendous leadership.” Goodwin continued, “ Their ideas and perspectives are invaluable in helping to identify and resolve common and important issues. These are students who are willing to step forward and do something if one of their peers makes a self-destructive decision or bullies someone else.”
Goodwin said that he and U.S. Attorney Ihlenfeld share concerns about problems facing young people in West Virginia. “This isn’t just an award or a title. This is an ongoing mission for us, for our offices, our communities and for each of these Ambassadors for Justice. Together, we can exert positive influence in our schools and communities,” said Goodwin.
The U.S. Attorney’s Ambassadors for Justice program was created by U.S. Attorney Goodwin two years ago in response to rising school bullying and social media threats involving young people. The program was also spurred by a February 2012 school shooting at Chardon High School in Chardon, Ohio, in which a student opened fire on his classmates, killing three and wounding two others. Other episodes involving planned violent attacks by young people that were prevented due to the swift actions of students and school Prevention Resource Officers here in the Southern District of West Virginia have also encouraged U.S. Attorney Goodwin’s initiative.
Nominations to be U.S. Attorney’s Ambassadors for Justice are made by school principals and administrative leaders. Goodwin said that outstanding character, devotion to citizenship, and a commitment to serving others are fundamentals for nomination. This year, 87 high schools in 46 counties in West Virginia nominated 88 outstanding students to be Ambassadors for Justice.
The 2013 U.S. Attorney’s Ambassadors for Justice are as follows (by county/student name/high school):
Please note: Individual photos of each student are available at: www.justice.gov/usao/wvs/AforJ.htmlBarbour County
Karlie Smallwood, Philip Barbour High School ComplexBerkeley County
Jacob Orlando, Martinsburg High School
Tyler Brewster, Musselman High SchoolBoone County
Cortney Belcher, Van Jr./Sr. High School
Lindsay Collins, Sherman High School
Michael Miller, Scott High SchoolBraxton County
Logan Frame, Braxton County High SchoolBrooke County
Paraag Gupta, Brooke High SchoolCabell County
Chantz Gould, Cabell Midland High School
Robert Senior, Huntington High SchoolCalhoun County
Erica Jones, Calhoun Middle/High SchoolClay County
Cayla Black, Clay County High SchoolDoddridge County
Wyatt Ford, Doddridge County High SchoolFayette County
Tyler Brandstetter, Meadow Bridge High School
Kaitlyn Akers, Valley High School
Aaliyah Sears, Oak Hill High School
Cody Zackoski, Midland Trail High SchoolGrant County
Brandon Streets, Union Educational ComplexGreenbrier County
Jordan Tincher, Greenbrier West High School
Allegra Browne, Greenbrier East High SchoolHampshire County
John Seldon, Hampshire High SchoolHancock County
Brennan Smith, Oak Glen High SchoolHardy County
Bekah Mongold, East Hardy High SchoolHarrison County
Bryan Van Norman, Liberty High School
Joseph Ellis, Notre Dame High School
Megan Talbott, South Harrison High SchoolJackson County
James Curry, Ravenswood High School
Matthew Groves, Ripley High SchoolKanawha County
Maura James, St. Albans High School
Ian Perry, Riverside High School
Hanna Fuller, Nitro High School
Aric Taylor, Sissonville High School
Logan Shomo, South Charleston High School
Joshua McClung, Herbert Hoover High School
James Lares, George Washington High School
Sarah Clifford, Capital High SchoolLincoln County
Mark Neace, Jr., Lincoln County High SchoolLogan County
Jonathan Collins, Man High School
James Frye, Logan Senior High SchoolMarion County
Colton Moor, East Fairmont High School
Morgan Pethtel, North Marion High SchoolMarshall County
Matthew Vucelik, Bishop Donahue High School
Jacqueline Gellner, John Marshall High SchoolMason County
Mary Workman, Point Pleasant Jr./Sr. High School
Ja’nae Cundiff, Wahama High School
Charles Mayes, Hannan Jr./Sr. High SchoolMcDowell County
Cody Adair, River View High SchoolMercer County
Hayley Parnell, Montcalm High School
Cody Goins, Bluefield High School
Lindsey Masters, PikeView High School
Caleb Robinette, Princeton Senior High SchoolMineral County
Micah Beachy, Frankfort High SchoolMingo County
Chase Justice, Mingo Central High School
Hayden Sturgell, Tug Valley High SchoolMonongalia County
Dominic Muttillo, Morgantown High School
John Kolar, University High SchoolMonroe County
Dillon Bradley, James Monroe High SchoolNicholas County
Rebecca Passarella, Nicholas County High School
Shanley Amick, Richwood High SchoolOhio County
Colin Kelly, Linsly School
Maria Miller, Wheeling Central Catholic High School
Megan Chacalos, Wheeling Park High SchoolPendleton County
Autumn Smith, Pendleton County Middle/High SchoolPutnam County
Brandon Stone, Winfield High School
John Hathaway, Winfield High School
Daria Seccurro, Hurricane High School
Christian Buckley, Poca High SchoolRaleigh County
Emily Fedders, Woodrow Wilson High School
Julie Castle, Liberty High School
Josef Heller, Shady Spring High School
Sean Worix, Independence High SchoolRandolph County
Linsey McCollam, Elkins High School
Luciano Casillas, Pickens Elementary/High School
Hannah Currence, Tygarts Valley Middle/High SchoolRitchie County
Nicholas Tate, Ritchie County High SchoolRoane County
Aaron Roberts, Roane County High SchoolTaylor County
Athena McMillen, Grafton High SchoolTucker County
Morgan Moss, Tucker County High SchoolUpshur County
Mikinna Poling, Buckhannon Upshur High SchoolWayne County
John Newman, Tolsia High School
Taylor Ward, Spring Valley High SchoolWetzel County
Soren Shade, Magnolia High School
Craig Allen, Paden City High School
Victoria Smallwood, Valley High SchoolWirt County
Elizabeth Adams, Wirt County High SchoolWood County
Jessie Pratt, Parkersburg South High School
Jordan Lallemont, Parkersburg High SchoolWyoming County
Aerial Deskins, Westside High SchoolTwo Individuals Arrested for Firearm ViolationsRead the Press Release
SAN JUAN, Puerto Rico – Today, U.S. Magistrate Judges Bruce McGiverin and Silvia Carreño-Coll authorized two separate criminal complaints charging Efrain Rivera-Ramos and Jancarlos Velàzquez-Vàzquez for firearms violations, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
Today, US Magistrate Judge Silvia Carreño-Coll authorized a criminal complaint against Efrain Rivera-Ramos for violations of Title 18 U.S.C. Section 922(o) (possession of a machine gun) and Section 922(g)(1) (aiding and abetting a felon). The affidavit submitted with the complaint alleges that on or about March 14, 2013, the Puerto Rico Police Department (PRPD) along with the Caguas Special Arrest Units and members of the United States Marshals Service Puerto Rico Violent Offender Task Force executed an outstanding arrest warrant for violations of Puerto Rico weapons law against Efrain Rivera-Ramos in Juncos, PR. The Officers had received information of Rivera-Ramos’ whereabouts from the Bonds Company that had posted his bail for the pending local weapons case. Once the Officers gained entrance to the apartment at Colinas de Magnolias Public Housing Project, Rivera-Ramos was found hiding under a bed of one of the rooms. Inside the room where the defendant was arrested, a fully automatic Glock pistol, caliber .40, was seized.
Although the underlying facts from the March 14, 2013 incident described above served as the basis for a criminal state prosecution, the same did not result in either a conviction or acquittal, as the charges were dismissed for procedural reasons.
In a separate incident, on March 11, 2014, Rivera-Ramos was arrested by PRPD officers following a shooting between PRPD and some individuals on March 10, 2014, where PRPD agent Joaquin Correa-Ortega was murdered. According to the affidavit, on the night of March 10, 2014, Rivera-Ramos was with Jancarlos Velàzquez-Vàzquez and Rafael Rodríguez-Carrasquillo (deceased). They were at the “Plaza de Caballos” in Humacao, PR in order to conduct a weapons transaction.
The affidavit further alleges that each of the defendants possessed a “corta” (hand gun) and they also possessed two “palos” meaning long weapons that were in the center of the vehicle available for whoever needed them.
Following the shooting of PRPD agent Joaquin Correa-Ortega, defendants Rivera-Ramos, Velàzquez-Vàzquez and Rodríguez-Carrasquillo ran into the woods. According to the affidavit, Rivera-Ramos and Velàzquez-Vàzquez knew that Rodríguez-Carrasquillo was serving a ten year probation sentence for committing a murder in Juncos, PR.
At the site of the shooting officers recovered the following weapons: one empty 9 mm Glock handgun; one .40 caliber Glock handgun, Model 22, loaded with 20 rounds of ammunition; one .223 caliber, M-16 rifle, which had two magazines attached to it, one of the magazines was loaded with 30 rounds of ammunition and the other magazine was loaded with 14 rounds of ammunition; and one AK-47 rifle, that had two magazines attached to it. One of the magazines had 30 rounds of ammunition and the other had 40 rounds of ammunition.
The second complaint is against Jancarlos Velàzquez-Vàzquez, who was arrested on March 11, 2014, after another incident where he, together with others, interfered with federal law enforcement personnel while in performance of their official duties. He had in his possession one .40 caliber Glock handgun. He is charged with violations of Title 18 U.S.C. Section 111 (assaulting, resisting, or impeding a federal officer), Section 924(c) (possession of a firearm in furtherance of a crime of violence), and Section 2 (aiding and abetting).
If convicted, the defendants could face from 10 years up to life in prison. A criminal complaint contains only charges and is not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
Trumbull Man Admits Role in Mortgage Fraud SchemeRead the Press Release
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The United States Attorney for the District of Connecticut announced that MOHAMMED N. ISLAM, also known as “Tanveer,” 38, of Trumbull, waived his right to indictment and pleaded guilty today before U.S. Magistrate Judge Leslie G. Foschio in Bridgeport to conspiring to defraud financial institutions through an extensive mortgage fraud scheme that involved dozens of properties in Fairfield County.
According to court documents and statements made in court, between 2006 and 2013, ISLAM participated in a mortgage fraud conspiracy that involved the purchase of numerous single and multi-family properties, primarily in Bridgeport and Stamford. During the scheme, materially false information was provided to mortgage lenders by ISLAM and his co-conspirators. The fraudulent information included false verifications of mortgage applicants’ income, false verifications of down payments for real estate transactions and false HUD-1 Forms.
In pleading guilty, ISLAM admitted that he recruited and directed the actions of several “straw buyers,” or individuals who fraudulently applied for and obtained mortgage loans but did not have an actual financial investment or stake in the mortgage loan transactions. In fact, ISLAM was the intended owner of the property, managed the property and collected all of the rents from the property.
Through this scheme, lenders suffered losses of more than $7 million. Many of the properties involved in this mortgage fraud scheme ended up in foreclosure, or in short sale transactions.
ISLAM pleaded guilty to one count of conspiracy to commit wire fraud and bank fraud. He is scheduled to be sentenced by Chief U.S. District Judge Janet C. Hall on June 4, 2014, and faces a maximum term of imprisonment of 30 years.
This ongoing investigation is being conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Ann M. Nevins and Special Assistant U.S. Attorney John McReynolds.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Trotwood Man Sentenced for Gun, Drug CrimesRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON, OHIO – Lamont Scott, 40, of Trotwood, Ohio was sentenced in U.S. District Court to eight years in prison after police found Scott, a convicted felon, in possession of eight firearms and drugs in two Dayton-area homes.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Michael Boxler, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, Columbus Field Division (ATF), and Montgomery County Sheriff Phil Plummer announced the sentence imposed yesterday by U.S. District Court Judge Walter H. Rice.
According to court documents, task force officers with the Montgomery County Sheriff’s Office RANGE Task Force executed a search warrant at a residence in Trotwood on May 15, 2013. They found seven firearms (one of which was stolen), ten grams of heroin and approximately $61,000 in cash. That same day, police searched a second residence, this one within 1,000 feet of a school, and found another firearm, 272 grams of cocaine and 15 grams of heroin. Scott was arrested and has been in custody since his arrest.
Scott has prior felony convictions in Montgomery County Common Pleas Court of having a weapon under disability and intimidation of a crime victim. Both are felonies. Federal law prohibits convicted felons from owning or possessing firearms.
“Through his recidivism and non-compliance with lesser sanctions, Defendant has exhibited a lack of respect for the law and the need to be deterred from future crimes,” Assistant U.S. Attorney Andrew Hunt told the court prior to sentencing. “Furthermore, the Defendant’s continued involvement in drug and firearm offenses demonstrate a threat to the community’s safety, and require a significant term of incarceration to provide a just punishment.”
Scott pleaded guilty on November 19, 2013 to one count of possession of a firearm by a convicted felon and one count of possession with intent to distribute cocaine.
Stewart acknowledged the cooperative investigation by ATF agents and the RANGE task force, along with Assistant United States Attorneys Andrew Hunt and Alex Sistla, who prosecuted the case.
Three Plead Guilty to Meth Trafficking ChargesRead the Press Release
POCATELLO – Three co-defendants pleaded guilty this week to federal methamphetamine trafficking charges, U.S. Attorney Wendy J. Olson announced.
Jose Guadalupe Juarez, 33, of Rupert, Idaho, and Anthony Juarez, 30, of Nampa, Idaho, pleaded guilty on Monday in United States District Court to distribution of methamphetamine; Alexander Villasenor, 34, of Heyburn, Idaho, pleaded guilty yesterday to conspiracy to distribute methamphetamine. The defendants were indicted by a federal grand jury in Pocatello, Idaho, on August 28, 2013.
According to their plea agreements, Jose Guadalupe Juarez and Anthony Juarez admitted that on July 24, 2013, they assisted in the delivery of methamphetamine to an undercover officer in Burley, Idaho. Alexander Villasenor admitted that from December 2012 to May 2013, he received methamphetamine from several other individuals in Rupert and subsequently distributed it.
The defendants each face up to 20 years in prison, a maximum fine of $1 million, and at least three years of supervised release.
Jose Juarez and Anthony Juarez are scheduled to be sentenced on May 21, 2014, and Villasenor on June 17, by Chief U.S. District Judge B. Lynn Winmill.
Three co-defendants, Juan Ramon Yuen-Rodriguez, 29, and Jose Fabian Felix-Burgos, 41, both of Rupert, and Jesus Burgos, 62, of Lennox, California, are set for trial on May 19, 2014, on related drug charges.
The case was the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Drug Enforcement Administration, in conjunction with, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Canyon County Narcotics Unit, Meridian Police Department, Ada County Sheriff’s Office, Idaho State Police, and the Mini-Cassia Drug Task Force. Other federal agencies participating in the OCDETF program include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Three Men Federally Indicted for Armed Robbery of Milwaukee grocery StoreRead the Press Release
United States Attorney James L. Santelle announced today that three men were indicted for the January 28, 2014 armed robbery of Mother’s Foods (formerly Magic Foods) located at 2879 N. 16th Street in Milwaukee, Wisconsin. Joshua Mueller (age: 23) of Milwaukee, Sedrick Brown (age: 26) of Milwaukee and Steven Bugni (age: 23) formerly from Milwaukee, were charged with one count of interference with commerce by robbery pursuant to the Hobbs Act and one count of discharging a firearm in furtherance of a crime of violence.
The indictment alleges that on January 28, 2014, the defendants, armed with firearms, stole U.S. currency from Mother’s Foods. During the robbery, a store employee was shot, causing serious bodily injury. If convicted, each man faces up to 20 years in prison on the armed robbery count and a minimum mandatory sentence of 10 years and up to life in prison on the charge of discharge of a firearm during a robbery.
The Hobbs Act, passed by Congress in 1946, provides federal jurisdiction for cases involving violent, habitual criminals who commit armed robbery of businesses involved in interstate commerce. Federal prosecution of these offenders is sometimes beneficial since the penalties may be tougher than under state law. To that end, the U.S. Attorney’s Office and its County Attorney partners are working together to ensure that violent offenders are effectively prosecuted, making our communities safer for all.
This matter is being investigated by the Federal Bureau of Investigation and the Milwaukee Police Department. It is being prosecuted by Assistant United States Attorney Margaret B. Honrath.
The public is cautioned that an indictment is merely a charge and the defendants are presumed innocent until and unless proven guilty.
Tax Preparer Sentenced to over Six Years in Prison for Filing Hundreds of False Tax ReturnsRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced that today, U.S. District Judge Shelly D. Dick sentenced ASHLEY D. RICKS-STAMPLEY, of Baton Rouge, Louisiana, to 81 months imprisonment for wire fraud and aggravated identity theft. RICKS-STAMPLEY was also sentenced to serve three years of supervised release following her release from imprisonment and ordered to pay restitution in the amounts of $699,734.89 to the Internal Revenue Service (IRS), and $11,138 to the Louisiana Department of Revenue.
During her guilty plea hearing last year, RICKS-STAMPLEY admitted that she schemed to defraud the IRS by submitting hundreds of false tax returns in the names of other individuals for the purpose of receiving thousands of dollars in tax refunds. RICKS-STAMPLEY accomplished the scheme by fraudulently obtaining the names and personal identifying information, including social security numbers, of individuals without their knowledge or consent. Using the information, RICKS-STAMPLEY submitted false income tax returns to the IRS and the Louisiana Department of Revenue electronically via an internet tax program. The applications falsely represented that the individuals had worked for various companies during 2010 and 2011 and were eligible for income tax refunds. In fact, these individuals had not worked for or earned wages from the companies reflected in the fraudulent tax returns, nor had the victims authorized RICKS-STAMPLEY to submit any such returns on their behalf.
From in or about September 2011 through in or about July 2012, RICKS-STAMPLEY filed approximately 563 false federal returns claiming refunds totaling approximately $733,685. Additionally, RICKS-STAMPLEY filed over 56 false Louisiana State tax returns claiming refunds totaling approximately $14,625. In total, RICKS-STAMPLEY filed over 600 false federal and state tax returns falsely claiming refunds totaling approximately $748,310. As a result of her scheme, RICKS-STAMPLEY actually received more than $700,000.
United States Attorney Walt Green stated: “This sentence should send a clear message that the Louisiana Department of Revenue, IRS Criminal Investigation, and the U.S. Attorney’s Office will investigate and prosecute tax fraud and identity theft to the fullest extent of the law. During our annual tax filing season, this sentence should serve as a deterrent to others contemplating such criminal acts.”
“IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority,” stated Gabriel L. Grchan, Special Agent-in-Charge of IRS – Criminal Investigation, New Orleans Field Office. “We are pleased with today’s sentencing of Ashley Ricks-Stampley, and thank the United States Attorney’s Office for their partnership in our continued efforts to put an end to identity theft and the victimization of our nation’s taxpayers.”
“Tax fraud is a nationwide problem that requires solutions at the federal, state, and local levels,” said Louisiana Secretary of Revenue Tim Barfield. “We appreciate the opportunity to work with the IRS and the Justice Department to identify, investigate, and prosecute the perpetrators of fraud.”
This investigation was conducted by IRS - Criminal Investigations Division and Louisiana Department of Revenue - Criminal Investigations Division. The matter is being prosecuted by Assistant United States Attorney Reginald E. Jones.
Swiss Banker Pleads Guilty to Conspiring with U.S. Tax Evaders, Other Swiss Bankers and Bank ManagementRead the Press Release
Andreas Bachmann, 56, of Switzerland, pleaded guilty today to conspiring to defraud the Internal Revenue Service (IRS) in connection with his work as a banking and investment adviser for U.S. customers.
Deputy Attorney General James Cole, Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally, Acting U.S. Attorney Dana J. Boente for the Eastern District of Virginia and IRS-Criminal Investigation Chief Richard Weber made the announcement after the plea was accepted by U.S. District Judge Gerald Bruce Lee.
“Today’s plea is just the latest step in our wide-ranging investigations into Swiss banking activities and demonstrates the Department of Justice's commitment to global enforcement against those that facilitate offshore tax evasion,” said Deputy Attorney General Cole. “We fully expect additional developments over the course of the coming months.”
Bachmann was charged in a one-count superseding indictment on July 21, 2011, and faces a maximum penalty of five years in prison when he is sentenced on Aug. 8, 2014.
In a statement of facts filed with the plea agreement, Bachmann admitted that between 1994 and 2006, while working as a relationship manager in Switzerland for a subsidiary of an international bank, he engaged in a wide-ranging conspiracy to aid and assist U.S. customers in evading their income taxes by concealing assets and income in secret Swiss bank accounts.
As part of that conspiracy, Bachmann traveled to the United States twice each year to provide banking services and investment advice to his U.S. customers. As a matter of practice, prior to traveling to the United States, Bachmann notified his executive management, including the head of the subsidiary’s private bank in Zurich and the chief executive officer of the subsidiary, of the planned trip and its objectives.
Although Bachmann had been informed of limitations under U.S. law on his ability to provide investment advice to U.S. account holders regarding U.S. securities, the highest ranking executive at the subsidiary was aware that Bachmann was violating U.S. law. According to the statement of facts, Bachmann was effectively told by the chief executive officer for the subsidiary, “Mr. Bachmann, you know what we expect of you, don’t get caught.”
According to the statement of facts, Bachmann also engaged in cash transactions while traveling in the United States. In the course of arranging meetings with U.S. customers, some clients would request that Bachmann either provide them with cash as withdrawals from their undeclared accounts or take cash from them as a deposit to their undeclared accounts. As part of that process, Bachmann agreed to receive cash from U.S. customers and used that cash to pay withdrawals to other U.S. clients. In one instance, Bachmann received $50,000 in cash from one U.S. customer in New York City and intended to deliver the money to another U.S. client in Southern Florida. Airport officials in New York discovered the cash but let Bachmann keep the money after questioning him. The client in Florida refused to take the money after the client learned about the questioning by New York airport officials, and Bachmann returned to Switzerland with the $50,000 in cash in his checked baggage. Bachmann advised the executive management of the subsidiary about the incident with the cash.
Bachmann also understood that a number of his U.S. customers concealed their ownership and control of foreign financial accounts by holding those accounts in the names of nominee tax haven entities, or structures, which were frequently created in the form of foreign partnerships, trusts, corporations or foundations.
Bachmann dealt with Josef Dӧrig, a co-defendant, regarding the formation and/or maintenance of structures for U.S. customers, among others. In approximately 1997, the international bank instructed Dӧrig to form his own company specializing in the formation and management of nominee tax haven entities because it was “too risky” to have Dörig perform that work from inside the international bank. The international bank then directed the subsidiary and others to use Dӧrig and his Swiss trust company, Dӧrig Partner AG, as the preferred choice for the formation and management of structures.
This case is being investigated by IRS-Criminal Investigation. Assistant U.S. Attorney Mark D. Lytle and Tax Division Trial Attorneys Mark F. Daly, Nanette L. Davis and Jason Poole are prosecuting the case.
A copy of this press release may be found on this website for the United States Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia here and here.
Related Materials:
United States v. Andreas M. Bachmann, etc.
Plea Agreement
Statement of FactsSwiss Banker Pleads Guilty to Conspiring with U.S. Tax Evaders, Other Swiss Bankers and Bank ManagementRead the Press Release
Defendant Helped U.S. Customers Conceal Assets in Secret Swiss Bank Accounts and Tax Havens
WASHINGTON – Andreas Bachmann, 56, of Switzerland, pleaded guilty today to conspiring to defraud the Internal Revenue Service (IRS) in connection with his work as a banking and investment adviser for U.S. customers.
Deputy Attorney General James Cole, Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally, Acting U.S. Attorney Dana J. Boente for the Eastern District of Virginia and IRS-Criminal Investigation Chief Richard Weber made the announcement after the plea was accepted by U.S. District Judge Gerald Bruce Lee.
“Today’s plea is just the latest step in our wide-ranging investigations into Swiss banking activities and demonstrates the Department of Justice's commitment to global enforcement against those that facilitate offshore tax evasion,” said Deputy Attorney General Cole. “We fully expect additional developments over the course of the coming months.”
Bachmann was charged in a one-count superseding indictment on July 21, 2011, and faces a maximum penalty of five years in prison when he is sentenced on Aug. 8, 2014.
In a statement of facts filed with the plea agreement, Bachmann admitted that between 1994 and 2006, while working as a relationship manager in Switzerland for a subsidiary of an international bank, he engaged in a wide-ranging conspiracy to aid and assist U.S. customers in evading their income taxes by concealing assets and income in secret Swiss bank accounts.
As part of that conspiracy, Bachmann traveled to the United States twice each year to provide banking services and investment advice to his U.S. customers. As a matter of practice, prior to traveling to the United States, Bachmann notified his executive management, including the head of the subsidiary’s private bank in Zurich and the chief executive officer of the subsidiary, of the planned trip and its objectives.
Although Bachmann had been informed of limitations under U.S. law on his ability to provide investment advice to U.S. account holders regarding U.S. securities, the highest ranking executive at the subsidiary was aware that Bachmann was violating U.S. law. According to the statement of facts, Bachmann was effectively told by the chief executive officer for the subsidiary, “Mr. Bachmann, you know what we expect of you, don’t get caught.”
According to the statement of facts, Bachmann also engaged in cash transactions while traveling in the United States. In the course of arranging meetings with U.S. customers, some clients would request that Bachmann either provide them with cash as withdrawals from their undeclared accounts or take cash from them as a deposit to their undeclared accounts. As part of that process, Bachmann agreed to receive cash from U.S. customers and used that cash to pay withdrawals to other U.S. clients. In one instance, Bachmann received $50,000 in cash from one U.S. customer in New York City and intended to deliver the money to another U.S. client in Southern Florida. Airport officials in New York discovered the cash but let Bachmann keep the money after questioning him. The client in Florida refused to take the money after the client learned about the questioning by New York airport officials, and Bachmann returned to Switzerland with the $50,000 in cash in his checked baggage. Bachmann advised the executive management of the subsidiary about the incident with the cash.
Bachmann also understood that a number of his U.S. customers concealed their ownership and control of foreign financial accounts by holding those accounts in the names of nominee tax haven entities, or structures, which were frequently created in the form of foreign partnerships, trusts, corporations or foundations.
Bachmann dealt with Josef Dorig, a co-defendant, regarding the formation and/or maintenance of structures for U.S. customers, among others. In approximately 1997, the international bank instructed Dӧrig to form his own company specializing in the formation and management of nominee tax haven entities because it was “too risky” to have Dörig perform that work from inside the international bank. The international bank then directed the subsidiary and others to use Dorig and his Swiss trust company, Dorig Partner AG, as the preferred choice for the formation and management of structures.
This case is being investigated by IRS-Criminal Investigation. Assistant U.S. Attorney Mark D. Lytle and Tax Division Trial Attorneys Mark F. Daly, Nanette L. Davis and Jason Poole are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia here and here.Swansea Man Sentenced for Stealing Funds from Railroad Retirement BoardRead the Press Release
Follow @SDILNewsThe United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Mark A. Lewis, 31, of Swansea, was sentenced in the federal district court in East St. Louis on the charge of Theft of Unemployment Benefits from the United States Railroad Retirement Board and on the related violation of his conditions of supervised release. The district court sentenced Lewis to a total of six months in prison, to be followed by three years of supervised release. The court also ordered Lewis to pay $1,995.37 in restitution to the U.S. Railroad Retirement Board and to pay a $100 special assessment.
From January 2013 through May 2013, Lewis fraudulently obtained monies belonging to the U.S. Railroad Retirement Board, an agency of the United States, by concealing his employment status in order to receive unemployment benefits.
The case was investigated by agents of the U.S. Railroad Retirement Board, Office of Investigations. The case is being prosecuted by Assistant U.S. Attorney Liam Coonan.
If you suspect or know of an individual or company that is committing fraud against any U.S. Railroad Retirement Board program, you may report this to the U.S. Railroad Retirement Board’s Office of Inspector General by calling 800.772.4258 or by e-mailing a complaint or information to: [email protected].
St. Francis Man Sentenced for Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota, man convicted of Assaulting a Federal Officer was sentenced on March 11, 2014, by U.S. District Judge Roberto A. Lange.
Cyrus Black Spotted Horse, age 32, was sentenced to 18 months in custody, 2 years supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Black Spotted Horse was indicted for Assaulting a Federal Officer by a federal grand jury on November 14, 2013. He pled guilty on December 11, 2013.
On September 25, 2013, an officer responded to a call about a fight, and when the officer arrived he made contact with Black Spotted Horse. During conversation with Black Spotted Horse, the officer learned that he had two warrants for his arrest. The officer attempted to arrest Black Spotted Horse, during which time he tried to pull away from the officer, resisting having handcuffs placed on him. Black Spotted Horse then resisted being placed in the squad car and made physical contact with the officer by pushing on the officer’s torso with his feet. Black Spotted Horse also attempted to kick the officer, which the officer was able to avoid.
This case was investigated by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher prosecuted the case.
Black Spotted Horse was immediately turned over to the custody of the U.S. Marshals Service.
Spring Lake Man Sentenced for Federal Firearms ViolationsRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that in federal court yesterday, Senior United States District Judge Malcolm J. Howard sentenced AL TYRONE HILL, 37, of Spring Lake, North Carolina, to 108 months imprisonment followed by 5 years of supervised release. HILL also was ordered to pay a $5,000 fine and a $100.00 special assessment.
On July 10, 2013, HILL pled guilty to one count of felon in possession of a firearm and ammunition, in violation of Title 18, United States Code, Section 922(g)(1) and 924.
According to the investigation, on May 20, 2012, Cumberland County Sheriff’s Deputies responded to several emergency calls regarding the threatened use of a firearm by HILL. HILL fled the house prior to the Deputies arrival and could not be found. Later, the Cumberland County Sheriff’s Office received another emergency call and Deputies again dispatched to the victim’s home. HILL was located in the home and a subsequent search of his person revealed two shotgun shells in his pants pocket. Deputies also located a sawed-off shotgun in the bedroom. HILL previously had been convicted of multiple felony offenses.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Cumberland County Sheriff’s Office. Assistant United States Attorney, S. Katherine Burnette prosecuted the case.
Sioux Falls Man Sentenced for Possession of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota, man convicted of Possession of a Controlled Substance was sentenced on March 11, 2014, by U.S. District Judge Roberto A. Lange.
David Andrews, age 32, was sentenced to time served (222 days), 1 year of supervised release, a $1,000 fine, and a $25 special assessment to the Federal Crime Victims Fund.
Andrews was indicted by a federal grand jury on July 18, 2012. He pled guilty to an Information on February 21, 2013.
The conviction stems from an incident wherein a South Dakota Highway Patrol Trooper came upon a vehicle with its hood up, located along the side of Highway 44. There was smoke coming from under the hood and the vehicle's hazard lights were on. The trooper stopped to provide assistance. There were three men with the vehicle, and Andrews was sitting in the back seat. During the trooper's contact with the three men, a pack of Newport cigarettes stuffed with a plastic bag containing 12.8 grams of methamphetamine was found near the air intake near the front left fender of the vehicle. Additionally, trace amounts of marijuana were located inside the head band of a baseball cap located in the back seat. A glass pipe was also found stuffed in between the rear seat cushions. A urine sample was obtained from Andrews who tested positive for methamphetamine, amphetamine, and marijuana.
The investigation was conducted by the South Dakota Highway Patrol and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller prosecuted the case.
Sharon, Pa., Tobacco Businesses, Owner Charged with Fraud, Filing False ReportsRead the Press Release
PITTSBURGH – Two tobacco wholesale businesses located in Sharon, Pa., and their owner and manager have been indicted by a federal grand jury in Pittsburgh on charges of mail fraud and filing false reports of cash transactions, United States Attorney David J. Hickton announced today.
The 32-count Superseding Indictment named Tareq Alasadi, 38, of Youngstown, Ohio, Raid Zaghari, 41, of Brooklyn, New York, and USA Trading Corporations I and V, both located at on West Budd Street, in Sharon as the defendants. The Superseding Indictment describes Zaghari as the owner of those corporations and Alasadi as the on-site manager.
According to the Superseding Indictment, Alasadi and USA Trading Corporation I, pursuant to federal regulations pertaining to the obligations of businesses to report receipts of cash in excess of $10,000, submitted 28 reports to the United States Government between July and September of 2011. The Superseding Indictment also alleges that those reports related to USA Trading's receipt of approximately $579,000 in cash between July and September of 2011. The Superseding Indictment charges that the reports filed by Alasadi and USA Trading Corporation contained false information regarding the sources of that cash.
The Superseding Indictment charges that Zaghari and his Pennsylvania based corporations defrauded the State of North Carolina and the State of New York by falsely representing the amounts of tobacco products that those two corporations distributed in North Carolina and New York. According to the Superseding Indictment, the false representations were made in tax forms which Zaghari submitted, or caused to be submitted, to the State of New York and the State of North Carolina. Alasadi is also charged in the scheme to defraud the State of North Carolina.
Alasadi faces a maximum sentence of five years imprisonment and a fine of $250,000 for each of the 28 counts that charge him with filing false reports, and a maximum sentence of 20 years imprisonment and a fine of $250,000 for each of the two counts in which he is charged with defrauding the State of North Carolina.
Zaghari faces a maximum of 20 years imprisonment and a fine of $250,000 for each of the four counts in which he is charged with defrauding the State of North Carolina and the State of New York.
The corporations face penalties ranging from fines and/or forfeitures to divestiture of assets
Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shaun E. Sweeney is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Saxton, Pa., Woman Helped Gun Store Burglar Avoid CaptureRead the Press Release
JOHNSTOWN, Pa. - A Bedford County resident pleaded guilty in federal court to a charge of accessory after the fact, United States Attorney David J. Hickton announced today.
Kelley L. Foster, 23, of Saxton, Pa., pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on Jan. 28, 2013, Foster assisted Garrett G. Sherlock in his attempt to avoid apprehension by law enforcement authorities for the theft of firearms from Saxton Outdoor Supply, Inc.
Judge Gibson scheduled sentencing for July 17, 2014, at 10 a.m. The law provides for a total sentence of five years in prison, a fine of $125,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Foster on bond.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pennsylvania State Police-Bedford Barracks conducted the investigation that led to the prosecution of Foster.
According to Mr. Hickton, Foster is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Sarasota Felon Sentenced to More Than 9 Years for Possessing FirearmRead the Press Release
Tampa, Florida – U.S. District Judge James S. Moody today sentenced Michael T. Rivers (32, Sarasota) to 9 years and 7 months in federal prison for being a felon in possession of a firearm. Rivers pleaded guilty to the offense on October 23, 2013.
According to court documents, after executing a search warrant at Rivers’s residence, law enforcement officers found two loaded firearms, ammunition, and drug paraphernalia inside the residence. Laboratory analysis revealed that one of the firearms found in the search had a fingerprint on it, belonging to Rivers. At the time of the offense, Rivers had been previously convicted of multiple felonies, including home invasion robbery and battery on a corrections officer. Therefore, he was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms, and Explosives and Sarasota Police Department. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Julie Leon, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to reduce violent crime and improve the quality of life in communities where law enforcement efforts are focused.
San Antonio Woman Pleads Guilty to Sex Trafficking of ChildrenRead the Press Release
In San Antonio this morning, 20-year-old Amber Doak pleaded guilty to her role in prostituting a 15-year-old female in August of last year announced United States Attorney Robert Pitman and Acting FBI Special Agent in Charge Aaron C. Rouse, San Antonio Division.
Appearing before United States Chief District Judge Fred Biery this morning, Doak pleaded guilty to one count of sex trafficking of children. By pleading guilty, Doak admitted to knowingly enticing and encouraging a minor into engaging in sexual acts for money. She also admitted to using a mobile phone provided by 38–year-old co-defendant Marcus Deshawn Wright to take pictures of the victim so that Wright and another co-defendant, 21-year-old Malcom Deandre Copeland of San Antonio, could use them to promote the minor on an Internet website which advertised prostitution services under the pretext of "escorts." Furthermore, Doak admitted that she fielded inquiries from individuals responding to the prostitution advertisement on Backpage.com and also traveled with Wright and Copeland as they transported the victim to multiple locations to engage in commercial sex.
Doak, who remains in federal custody, faces between ten years and life in federal prison when she is sentenced by Judge Biery on September 12, 2014.
Copeland and Wright, who are also in federal custody, are set for jury selection and trial on April 7, 2014, before Judge Biery on the sex trafficking of children charge.
This case was investigated by the Federal Bureau of Investigation (FBI) together with the San Antonio Police Department. Assistant United States Attorney Bettina Richardson is prosecuting this case on behalf of the Government.
San Antonio Man Pleads Guilty to Shooting Intimate Partner on Fort Sam HoustonRead the Press Release
A San Antonio man faces up to 20 years in federal prison after admitting to shooting his intimate partner multiple times on Fort Sam Houston Army Post in June 2013 announced United States Attorney Robert Pitman, Acting FBI Special Agent in Charge Aaron C. Rouse, San Antonio Division, and United States Marshal Robert Almonte.
Appearing before United States Chief District Judge Fred Biery this morning, 52-year-old Alvin Leon Roundtree pleaded guilty to one count of assaulting an officer or employee of the United States with a deadly weapon. By pleading guilty, Roundtree admitted that on the afternoon of June 10, 2013, he entered Fort Sam Houston and proceeded to the Medical Training Facility where his intimate partner was an instructor. After a verbal altercation regarding her decision to leave the defendant, Roundtree pulled out a .45 caliber handgun and began firing at his victim.
According to court records, the victim suffered a total of seven gunshot wounds. The victim was immediately taken into surgery. She survived the incident. Authorities subsequently apprehended Roundtree while still on Fort Sam Houston and recovered the firearm.
Roundtree, who remains in federal custody, is scheduled to be sentenced by Judge Biery on September 12, 2014.
Roundtree’s nephew and co-defendant, 29-year-old Leonard Roundtree, Jr. of Richardson, TX, is awaiting his April 21, 2014, trial date on charges that he conspired with Alvin Roundtree to hire someone to kill Alvin’s intimate partner to prevent her testimony and in retaliation for providing information to law enforcement. According to court records, Leonard Roundtree allegedly agreed to deliver a pre-payment of $1,000 to the individual solicited to commit the murder plus $9,000 more after the murder was carried out.
This case was investigated by the Federal Bureau of Investigation (FBI) together with the U.S. Army Criminal Investigation Division, United States Marshals Service and the San Antonio Police Department. Assistant United States Attorney Bettina Richardson is prosecuting this case on behalf of the Government.
Retired Turnpike Commission Employee Facing Federal Child Pornography ChargesRead the Press Release
PITTSBURGH - A resident of Jeannette, Pa., has been indicted by a federal grand jury in Pittsburgh on charges of conspiracy to produce material depicting the sexual exploitation of a minor and production, distribution and receipt of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The eight-count indictment, returned on March 5 and unsealed today, named John S. Longo, 57, as the sole defendant.
According to the indictment, Longo, a retired employee of the Pennsylvania Turnpike Commission, during the period June 5, 2009 through Nov. 12, 2010, conspired with another person to produce material depicting the sexual exploitation of a minor. He is also charged with producing images of child pornography on January 30, 2010, distributing images of child pornography on June 5, 2009, and receiving images of child pornography on Jan. 31, 2010, Feb. 16, 2010, March 28, 2010, May 26, 2010, and Nov. 12, 2010.
The law provides for a maximum total sentence of 140 years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Psychologist Found Guilty in Manhattan Federal Court of Mail and Health Care Fraud Charges in Connection with Multi-Year, No-Fault Automobile Insurance Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JAY SEITZ, a psychologist licensed to practice in the State of New York, was found guilty yesterday in Manhattan federal court of one count of conspiracy to commit mail fraud and health care fraud, one count of mail fraud, and one count of health care fraud in connection with his participation in a multi-year, no-fault automobile insurance fraud scheme. SEITZ was convicted after a six-day jury trial presided over by U.S. District Judge Sidney H. Stein.
Manhattan U.S. Attorney Preet Bharara said: “Jay Seitz was found by a unanimous jury not only to have betrayed the ethical obligations of his profession but to have committed fraud. His scheme reaped millions of dollars in unjust compensation. Now he may pay for that with the loss of his liberty.”
According to the Indictment filed in Manhattan federal court, other court documents, and statements made during related court proceedings:
Between 2006 and 2008, SEITZ purported to provide psychological services to patients at medical clinics located in the Bronx and Brooklyn, New York. SEITZ signed treatment notes that described the diagnoses he purportedly made and the services he purportedly provided to patients treated at these clinics. These treatment notes were used to generate claims that were submitted to no-fault insurance companies for reimbursement. These claims reflected that the psychological services for which reimbursement was sought were provided by SEITZ. In fact, SEITZ did not diagnose or treat the patients on whose behalf claims were submitted to no-fault insurance providers. Although the patients at the clinics with which SEITZ was associated sometimes received psychological screening and treatment, this treatment was provided by individuals who were not licensed psychologists or licensed social workers. In addition, the treatment duration reflected on the claims forms often exceeded the actual duration of services provided. No-fault insurance providers reimbursed over $3 million of claims submitted on behalf of two professional corporations associated with SEITZ, for patients purportedly treated by SEITZ.
SEITZ, 62, of New York, New York, faces a maximum sentence of 20 years in prison for each of the three counts on which he was convicted, and is scheduled to be sentenced by Judge Stein on June 18, 2014. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation.
The case is being handled by the Office=s Organized Crime Unit. Assistant U.S. Attorneys Brian Blais and Kristy Greenberg are in charge of the prosecution.
U.S. v. Margaret Kinder and Jay Seitz Indictment
Prior Sex Offender Sentenced to Ten Years in Prison for Federal Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – James Olsson, 60, of Albuquerque, N.M., was sentenced today to ten years in federal prison followed by a lifetime of supervised release for his child pornography conviction. Olsson will be required to register as a sex offender after he completes his prison sentence.
Olsson was indicted on June 12, 2013, and charged with two counts of possession of visual depictions of minors engaged in sexually explicit conduct. According to court filings, on April 11, 2013, that day, a state probation officer learned that Olsson possessed child pornography during a routine field visit with Olsson at his residence. At the time, Olsson was on probation for failure to register as a sex offender as required by his 2009 state court conviction for possession of child pornography. Olsson was arrested on state charges that day and was in state custody until he was transferred to federal custody on June 26, 2013.
On Dec. 2, 2013, Olsson pled guilty to the indictment and admitted obtaining child pornography images and videos from the Internet. Olsson further admitted that he had been collecting child pornography for approximately six months prior to his arrest in April 2013. Olsson was subject to an enhanced sentence of not less than ten years in prison because of his prior child pornography conviction.
This case was investigated by the Albuquerque office of the FBI, the Bernalillo County Sheriff’s Office and the New Mexico Corrections Department’s Division of Probation and Parole, and was prosecuted by Assistant U.S. Attorney Marisa A. Lizarraga.
The case was filed as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Pittsburgh Man Charged with Possessing Crack and Powder CocaineRead the Press Release
PITTSBURGH - A Pittsburgh man has been indicted by a federal grand jury in Pittsburgh on charges of violating various federal narcotics laws, United States Attorney David J. Hickton announced today.
The two-count indictment, returned on March 11, named Kenyatta Robinson, 33.
According to the indictment, on Nov. 1, 2013, Robinson possessed with intent to distribute 280 grams or more of crack cocaine and less than 500 grams of powder cocaine.
The law provides for a maximum total sentence of not less than 10 years to up to life in prison, a fine of $10,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Amy L. Johnston is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pittsburgh Bureau of Police, and the Western Pennsylvania Fugitive Task Force conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pediatrician Sentenced for Child Pornography ChargesRead the Press Release
BOSTON – A former Boston Children’s Hospital pediatric endocrinologist was sentenced today in U.S. District Court in Boston for purchasing child pornography.
Richard Keller, M.D., 57, of Andover, was sentenced by U.S. District Judge F. Dennis Saylor IV to 78 months in prison and five years of supervised release. Upon release, Keller must register as a level 3 sex offender. In November 2013, Keller pleaded guilty to two counts of receipt of child pornography and possession of child pornography. At the time of his arrest in 2012, Dr. Keller was a pediatric endocrinologist at Boston Children=s Hospital and a pediatrics instructor at Harvard Medical School. Before stepping down in 2011, Keller was the Medical Director at Phillips Academy for 19 years.
“Any crime that preys upon children, the most vulnerable and precious population, is reprehensible,” said United States Attorney Carmen M. Ortiz, “but when the predator is in a position of trust, as Mr. Keller was as a pediatrician, it is particularly disturbing. The U.S. Attorney’s Office will continue to work alongside our law enforcement partners to unveil the cloak of anonymity that these defendants seem to think the Internet provides them.”
“The demand that creates the market for child pornography can only be satisfied by sexually abusing more children,” stated Inspector in Charge Shelly Binkowski. “For this reason, the Postal Inspection Service will continue to aggressively identify, target and arrest those who dare prey on our children.”
Keller possessed visual depictions of minors engaged in sexually explicit conduct, including males between the ages of approximately seven to 16 years old. In October 2012, the U.S. Postal Inspection Service and foreign law enforcement began an investigation into a Toronto company that sold child pornography, specifically movies of nude young minor boys. Foreign law enforcement seized the company’s customer database, which revealed Keller as a customer. Specifically, between July 2009 and January 2011, Keller purchased and ordered videos and images from this company on 19 different occasions. These orders included over 50 separate titles totaling over $2,695 in purchases.
Federal agents obtained a search warrant for Keller’s residence and seized multiple items of computer media. In addition, more than 500 high-gloss print-outs of child pornography and approximately 60 to 100 DVDs of child pornography were seized from Keller’s bedroom, which depicted naked boys from approximately 10 to 14 years old engaged in lewd and lascivious displays of their genitalia.
In addition, Keller possessed a DVD containing child pornography, including images and videos that depicted naked boys from approximately age seven to 16 engaged in sexual activity, including oral and anal sex, as well as sadomasochistic conduct. As part of his plea agreement, Keller admitted that he has had a long-standing sexual interest in adolescents since the early 1970s. Keller further admitted to viewing child pornography on the Internet and that he had previously tried to stop, but failed to do so.
US Attorney Ortiz, Inspector Binkowski, and Andover Police Chief Patrick Keefe made the announcement today. The case was prosecuted by Assistant U.S. Attorney Stacy Dawson Belf 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 Criminal Division=s CEOS, 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/.
Orleans Man, Anthony R. Thomas, Pleads Guilty to 2007 and 2009 Arsons, Insurance Fraud and False StatementsRead the Press Release
ANTHONY R. THOMAS, age 48, a resident of New Orleans, Louisiana, pled guilty today to a nine-count superseding bill of information charging him with multiple criminal counts for his involvement in a 2007 scheme to burn his rental property for fire insurance, a 2009 scheme to burn another rental property for his accomplice to collect fire insurance and his attempt at covering up his involvement in the 2009 fire, announced United States Attorney Kenneth Allen Polite, Jr.
Specifically, THOMAS pled guilty to: one count of conspiracy to commit arson; two counts of arson; one count of conspiracy to commit mail and wire fraud; three counts of wire fraud; one count of using arson to commit conspiracy, mail, and wire fraud; and one count of making false statements.
According to court documents, THOMAS and others attempted in 2007 to defraud his homeowner’s fire insurance company and their rental fire insurance companies by engaging in sham leases and filing inflated claims for property allegedly burned in the fire. THOMAS and others were involved in a similar scheme in 2009 where a renter filed inflated claims for property allegedly burned in the arson fire. THOMAS, who was burned in the 2009 fire, concocted a false story to federal agents to explaining his burns.
U.S. District Court Judge Susie Morgan scheduled THOMAS’s sentencing for June 18, 2014. He faces a minimum term of imprisonment of seventeen (17) years and a maximum term of imprisonment of fifty (50) years.
This case was investigated jointly by Special Agents of the Department of Justice, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and arson investigators of the New Orleans Fire Department. This case is being prosecuted by Assistant U.S. Attorney Tony Sanders.
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Oklahoma City Man Sentenced to 140 Months for Marijuana and Methamphetamine DistributionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that ANTHONY DEXTER WASHINGTON, II, a.k.a. Tony Washington, age 28, of Oklahoma City, Oklahoma, was sentenced to 140 months imprisonment, followed by 3 years of supervised release for Possession of Controlled Substances with Intent to Distribute, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B)(viii) and 841(b)(1)(C) and Title 18, United States Code, Section 2.
Charges arose from an investigation by the McAlester Police Department, the Pittsburg County Sheriff’s Department and the Drug Enforcement Administration - Drug Task Force. The defendant was indicted in January, 2013 and was found guilty in September, 2013 by a federal jury along with co-defendant, MAURICE ELON EDWARDS, age 29, of Spencer, Oklahoma.
The evidence presented at trial proved that on or about January 14, 2012, in McAlester, Oklahoma, the defendants, did aid and abet one another to unlawfully, knowingly and intentionally possess with the intent to distribute five (5) grams or more of actual Methamphetamine, a Schedule II controlled substance, a Schedule II controlled Substance and a mixture or substance containing a detectable amount of Marijuana, a Schedule I controlled substance.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody of the United States Marshal Service pending transportation to the designated federal prison at which he will serve his nonparolable sentence.
Assistant United States Attorney Kyle Waters represented the United States.
Odessa Businessman Pleads Guilty to Underpaying Taxes OwedRead the Press Release
Jose Luis Suarez, owner of Air One Mobile Welding Supply Company in Odessa, TX, faces up to 20 years in federal prison and full restitution after admitting to underpaying taxes owed to the federal government and the State of Texas announced United States Attorney Robert Pitman, Homeland Security Investigations Special Agent in Charge Dennis Ulrich and IRS-Criminal Investigation Special Agent in Charge Steve McCollough.
Appearing yesterday in Midland before United States Magistrate Judge David Counts, Suarez pleaded guilty to six counts of wire fraud and two counts of filing fraudulent federal Income Tax Returns.
By pleading guilty, Suarez admitted that he knowingly filed Income Tax Returns for 2011 and 2012 in which he did not include all of Air One’s gross receipts. According to court records, Suarez still owes more than $151,000 in federal taxes for 2011 and more than $77,000 in federal taxes for 2012 according to an Internal Revenue Service assessment.
Suarez, as company owner, was also ultimately responsible for all quarterly sales tax filings with the Texas Comptroller of Public Accounts. According to court records, beginning on or about the first quarter of 2011, and continuing through at least the first quarter of 2013, Suarez intentionally devised a scheme to defraud the State of Texas of sales taxes collected by Air One in the course of its business, and properly owed to the State. As part of this scheme, Defendant Suarez filed, or caused to be filed with the Texas Comptroller of Public Accounts a series of six Sales and Use Tax Returns that materially and fraudulently underreported the amount of taxable sales achieved by Air One. The aggregate underpayment of sales taxes to the State of Texas by Air One is estimated by the Texas Comptroller of Public Accounts to be $264,314.03.
Suarez remains on bond pending sentencing. No sentencing date has been scheduled.
This case was investigated by HSI and IRS-Criminal Investigation together with the Texas Comptroller of Public Accounts. Assistant United States Attorney John Klassen is prosecuting this case on behalf of the Government.
Newport News Man Sentenced for Receiving Child PornographyRead the Press Release
NEWPORT NEWS, Va. – Gregory L. Tropea, 52, of Newport News, Va., was sentenced yesterday to 336 months and a lifetime of supervised release for his convictions on three counts of receipt of child pornography and one count of making a false statement to an agent of the United States.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, FBI Special Agent in Charge Royce E. Curtin, and Richard Myers, Chief of Newport New Police, made the announcement after sentencing by United States District Judge Robert Doumar.
Tropea pleaded guilty on November 7, 2013. According to court documents, on May 8, 2013, police responded to the Host Inn where Tropea was living, after a friend of his had not heard from him in several days. Upon arriving at the hotel, the manager informed them that a surveillance tape showed Tropea leaving the hotel on May 5, 2013, on his bicycle but not returning. Police entered the room to investigate the missing persons report and found numerous phone numbers inside the room. Officers called several people to try and locate Tropea, including his probation officer whose business card was located in the hotel room. While in the room officers found a laptop computer as well as a coffee can full of thumb drives. After speaking to the probation officer police learned that Tropea was on federal supervised release, for fraud and possession of child pornography, and barred from having a computer. The search was stopped when they discovered he was in violation of his supervision. FBI agents obtained a search warrant and numerous items were seized including the computer and thumb drives. Tropea was later located at an area jail. A forensic exam of the computer and thumb drives was conducted and over 40,000 images of child pornography were found.
This case was investigated by FBI and Newport News Police. Assistant United States Attorney Lisa R. McKeel prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Newark Man Pleads Guilty to 14 Armed Robberies of New Jersey StoresRead the Press Release
NEWARK, N.J. – A Newark man admitted today to committing 14 armed robberies of commercial establishments throughout Union, Essex, Hudson and Bergen counties, U.S. Attorney Paul J. Fishman announced.
Jamar Darby, aka “Rhino,” 27, pleaded guilty before U.S. District Judge William H. Walls to two counts of an indictment charging him with conspiracy to commit Hobbs Act robberies and with brandishing a firearm during one of those robberies.
According to documents filed in this case and statements made in court:
Darby conspired with others to rob commercial establishments as follows:
Pao Da Terra
Newark
Dec. 29, 2012
Newark
Jan. 20, 2013
Newark Community Pharmacy
Newark
Jan. 24, 2013
Linden Stationary
Linden
Feb. 1, 2013
Delta Gas Station
Newark
Feb. 1, 2013
Shoppers Express
Belleville
Feb. 2, 2013
Krauszers
Kearny
Feb. 10, 2013
Krauszers
Bloomfield
Feb. 13, 2013
Pat’s Deli
Newark
Feb. 19, 2013
Smashburger
Paramus
March 16, 2013
Krauszers
Bloomfield
March 29, 2013
South Wood Discount Liquor
Linden
April 17, 2013
Newark Community Pharmacy
Newark
May 1, 2013
Subway Restaurant
Verona
May 20, 2013
Darby and his conspirators robbed each of these establishments at gunpoint, stealing cash, cigarettes and other items. In 13 of the 14 robberies, Darby and his conspirators used zip ties or duct tape to restrain their victims. During the Pat’s Deli robbery on Feb. 19, 2013, Darby and a conspirator restrained several victims with duct tape after threatening one victim with a .45 caliber semi-automatic handgun.
The Hobbs Act conspiracy to which Darby pleaded guilty carries a maximum penalty of 20 years in prison. The charge of brandishing a firearm during a violent crime carries a maximum penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutively to any other prison term. Each count also carries a maximum $250,000 fine or twice the gross gain or loss arising out of the offense. Sentencing is scheduled for June 17, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s guilty plea. He also thanked the Belleville, Bloomfield, Kearny, Linden, Maplewood, Newark, Paramus, Verona and West Orange Police Departments, along with the N.J. State Police and the Essex County Prosecutor’s Office for their work on this case.
The government is represented by Assistant U.S. Attorneys Jamari Buxton and Rahul Agarwal of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Anthony C. Mack Esq., Newark
Darby Indictment
New Jersey Man, Stanley Zdon, Iii, Pleads Guilty to Conspiracy to Produce Child PornographyRead the Press Release
STANLEY ZDON, III, age 28, a resident of Tuckerton, New Jersey, pled guilty today to conspiracy to produce child pornography, announced United States Attorney Kenneth Allen Polite, Jr.
According to court documents, in November 2013, ZDON was arrested by special agents with the United States Department of Homeland Security, Homeland Security Investigations (“HSI”) after they determined that ZDON was responsible for creating and posting videos depicting the sexual exploitation of children on the Internet. ZDON has been in custody since his arrest.
Sentencing is scheduled for June 18, 2014, before U.S. District Judge Susie Morgan. Conspiracy to produce child pornography carries a mandatory minimum sentence of not less than fifteen (15) years and a maximum penalty of thirty (30) years imprisonment, supervised release of not less than five years up to life, and ZDON will have to register as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by 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 to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by Homeland Security Investigations. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba.
(Download Factual Basis )
Nampa Man Sentenced to 80 Months in Prison in Meth Trafficking CaseRead the Press Release
BOISE – Daniel Eric Vaughan, 52, of Nampa, Idaho, was sentenced today to 80 months in prison for his role in a conspiracy to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Vaughan to serve five years of supervised release following his release from prison. Vaughan pleaded guilty to the charge on November 18, 2013.
According to information presented in court, Vaughan and other co-defendants agreed to distribute methamphetamine. Vaughan admitted that he was aware of the ongoing distribution of methamphetamine from his residence and that he helped to distribute the methamphetamine. Vaughan has two prior convictions for felony drug offenses from 2003.
Vaughan and ten other individuals were indicted on July 9, 2013, in a case including charges of conspiracy to distribute methamphetamine, distribution of methamphetamine, distribution of cocaine, and unlawful possession of firearms. All eleven defendants have pleaded guilty, including defendant Jeramie Mahler, who pleaded guilty last week to conspiracy to distribute methamphetamine and discharging a firearm in furtherance of a drug trafficking crime. Vaughan is the fourth defendant to be sentenced; co-defendants Wendy Harrison and Bobbi Eileen Woolsey were both sentenced previously to 84 months in prison and Nearia Pinnell was sentenced to 33 months in prison.
The case was investigated by the Treasure Valley Metro Violent Crimes Task Force, with assistance from the Nampa Police Department. The Treasure Valley Metro Violent Crimes Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Muskogee Man Sentenced to 120 Months for Possession of Stolen FirearmRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that WILLIE LEE WARTSON, age 42, of Muskogee, Oklahoma, was sentenced to 120 months imprisonment, followed by 3 years of supervised release for Possession of Stolen Firearm, in violation of Title 18, United States Code, Section 922(j).
Charges arose from an investigation by the Muskogee Police Department the Bureau of Alcohol, Tobacco and Firearms and Explosives and the Drug Enforcement Administration. The defendant pled guilty in September, 2013.
The Information alleged that on or about February 13, 2013, within the Eastern District of Oklahoma, the defendant did knowingly possess in and affecting commerce, the following stolen firearm which had been shipped and transported in interstate commerce, to-wit: one Titan, model Tiger, .38 Special caliber revolver, serial number 0095230, knowing and having reasonable cause to believe the firearm was stolen.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal prison at which he will serve his nonparolable sentence.
Assistant United States Attorney Shannon Henson represented the United States.
Muskogee Man Sentenced to 105 Months for Marijuana and Methamphetamine DistributionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that HUR LEE BROWN, age 39, of Muskogee, Oklahoma, was sentenced to 105 months imprisonment for Possession of Controlled Substances with Intent to Distribute, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C).
Charges arose from an investigation by the Muskogee Police Department and the Drug Enforcement Administration. The defendant was indicted in June, 2013 and pled guilty in July, 2013.
The Indictment alleged that on or about February 26, 2013, within the Eastern District of Oklahoma, HUR LEE BROWN, defendant herein, did unlawfully, knowingly and intentionally possess with the intent to distribute a mixture or substance containing a detectable amount of Methamphetamine, a Schedule II controlled substance, and a mixture of substance containing a detectable amount of Marijuana, a Schedule I controlled substance.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal prison at which he will serve his nonparolable sentence.
Assistant United States Attorney Kyle Waters represented the United States.
Mattawan Man Convicted of Multiple Counts of Attempted Sexual Exploitation of A Child and Other Related ChargesRead the Press Release
GRAND RAPIDS, MICHIGAN – James Alfred Beckman, Jr., 39, of Mattawan, Michigan was convicted by a jury of ten counts of attempting to sexually exploit a child by trying to make his own child pornography, one count of attempting to coerce and entice a child to commit a sex act, two counts of distributing child pornography, and two counts of receiving child pornography, U.S. Attorney Patrick A. Miles, Jr. announced today. The jury returned the guilty verdicts, and one acquittal on the eleventh charge of attempted sexual exploitation, after hearing testimony and reviewing evidence presented during a two-week trial. Beckman faces up to life imprisonment for these offenses; he will be required to serve a term of supervised release after his prison term has been completed; and he will also be required to register as a sexual offender. The date of Beckman’s sentencing has not been set.
The evidence presented at trial showed that Beckman sexually abused and exploited two young children during 2012. He streamed and attempted to stream live video of this abuse and exploitation to others. In exchange, he received child pornography and other things he deemed of value. Beckman’s conduct came to light when one of his victims disclosed the abuse to another adult. The Michigan State Police and the Federal Bureau of Investigation then launched an investigation. The investigation revealed a network of individuals trafficking in child pornography. Two of Beckman’s accomplices testified against him.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney's Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
The Federal Bureau of Investigation (FBI) and the Michigan State Police (MSP) investigated the case. Assistant U.S. Attorneys Sean M. Lewis and Timothy P. Verhey prosecuted the case.
END
Maryland Man Pleads Guilty to Federal Drug Charge, Admits Role in A Network That Distributed Cocaine and Heroin-Arrest Followed DEA Investigation-Read the Press Release
WASHINGTON – Herman Curtis Malone, 45, of Upper Marlboro, Md., pled guilty today to a federal drug offense for his role in a network that distributed substantial quantities of cocaine and heroin in the Washington, D.C. area.
The guilty plea, in the U.S. District Court for the District of Columbia, was announced by U.S. Attorney Ronald C. Machen Jr. and Karl C. Colder,Special Agent in Charge of the Washington Division Office of the Drug Enforcement Administration (DEA).
Malone pled guilty to a charge of conspiracy to distribute and possess with intent to distribute cocaine and heroin. The charge carries a mandatory minimum of five years in prison, and under the terms of the plea deal, the defendant may be sentenced to as many as ten years in prison. Given current federal sentencing guidelines, Malone faces an expected guideline range of 108 months to 120 months in prison as well as potential financial penalties. As part of the plea agreement, Malone must pay a forfeiture money judgment of $150,000.
The Honorable Ellen S. Huvelle scheduled sentencing for May 28, 2014.
Malone, who helped run youth basketball programs, had been convicted of a narcotics offense during the 1990s in Prince George’s County, Md. He was arrested on the current offenses on Aug. 9, 2013, following a DEA Group-43 Cross-Border-Task-Force investigation.
Two others have recently pled guilty to charges in the case. Clarence Redd, 34, of Washington, D.C., pled guilty to a charge of distribution of heroin that took place in August of 2012. Derico Williams, 36, of Seat Pleasant, Md., pled guilty to a charge of conspiracy to distribute and possess with intent to distribute cocaine. Both men are awaiting sentencing. A fourth defendant is awaiting trial.
According to the government’s evidence, Malone himself conspired with others from August 2012 to August 2013 to distribute cocaine and heroin in the Washington, D.C. area. Malone acknowledged that as part of the conspiracy he was responsible for at least five kilograms of cocaine and at least 100 grams of heroin.
On Aug. 9, 2013, the DEA found a loaded .40-caliber handgun in the upstairs bedroom of Malone’s home in Upper Marlboro. Downstairs in the basement, agents found approximately one kilogram of cocaine and approximately 84 grams of heroin; a bag of .40-caliber ammunition; and cocaine residue in a sink and trash can. Malone, as someone who had been previously convicted in 1991 of a felony offense for Possession with Intent to Distribute Cocaine in Prince George’s County, Maryland, was not lawfully able to possess a firearm.
“More than 20 years after he was first convicted of dealing cocaine, Curtis Malone returned to a life of drug trafficking,” said U.S. Attorney Machen. “He was perceived as a role model for our young people, but in truth he peddled heroin and cocaine and illegally possessed a firearm. Malone now faces a lengthy prison sentence that will send a clear message to the young men he sought to influence: joining the world of guns and drugs is a sure-fire way to ruin your future.”
In announcing the plea, U.S. Attorney Machen and Special Agent in Charge Colder commended the work of those who investigated the case for the DEA. They also expressed appreciation to the Metropolitan Police Department (MPD) the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Prince George’s County Police Department, the Maryland State Police, and the Maryland Park Police. Assistance was provided by the Organized Crime Drug Enforcement Task Force (OCDETF).
U.S. Attorney Machen and Special Agent in Charge Colder also acknowledged the work of those who handled the case at the U.S. Attorney’s Office, including Paralegal Specialists Rommel Pachoca, Starla Stolk, Candace Battle, Teesha Tobias, Regan Gibson, Kim Hall and Mary Downing; former Paralegal Specialist Jeremy Stoller; Legal Assistants Jessica Moffatt, Tammy Scott, Latoya Wade, and Diane Brashears, and former Legal Assistant Niya Attucks. They recognized the work of Assistant U.S. Attorneys Allessandra Stewart, Zia Faruqui, and Arvind K. Lal, of the Asset Forfeiture and Money Laundering Section. Finally, they commended the efforts of Assistant U.S. Attorneys Stephen J. Gripkey, Darlene M. Soltys, and Nihar R. Mohanty, as well as former Assistant U.S. Attorney Michelle Zamarin, of the Violent Crime and Narcotics Trafficking Section, who investigated and prosecuted the case.
14-062Manhattan U.S. Attorney and EPA Announce Agreement with Eastman Kodak Company for Clean up of Rochester, New York, Business Park and the Genesee RiverRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Judith A. Enck, Regional Administrator of the U.S. Environmental Protection Agency, announced today that the United States has entered into settlement agreements with EASTMAN KODAK COMPANY (“KODAK”) that resolve environmental claims and liabilities asserted by the United States against Kodak. After Kodak filed for Chapter 11 bankruptcy protection on January 19, 2012, the United States filed a proof of claim asserting Kodak’s responsibility for significant environmental claims and clean-up obligations. The first settlement resolves environmental liabilities at the Eastman Business Park in Rochester, New York, which is a hazardous waste site regulated under the Resource Conservation and Recovery Act (“RCRA”). The second settlement resolves liabilities under the Comprehensive Environmental Response, Compensation and Liability Act (also known as the Superfund law) at the Mercury Refining Superfund site in Colonie and Guilderland, New York, and the Fair Lawn Well Field Superfund site in Fair Lawn, New Jersey.
U.S. Attorney Preet Bharara said: “Today’s settlements will lead to the clean-up of more than a century of pollution by Kodak at the Eastman Business Park and Rochester’s Genesee River, while clearing the way for economic development at the Eastman Business Park. Kodak will also pay for contamination it caused at Superfund sites in New York and New Jersey. These resolutions demonstrate the commitment of the United States to prevent even bankrupt companies from escaping responsibility for environmental contamination.”
EPA Regional Administrator Judith A. Enck said: “The proposed legal agreements will provide funding to clean up the toxic legacy that Kodak has left in Rochester. They are designed to protect public health and the environment, including cleaning up the Genesee River, while supporting the creation of scores of much needed new jobs in Rochester. I encourage the public to comment on the agreement.”
Three agreements were filed in bankruptcy court today. Two of them – a settlement agreement between the United States and Kodak and a related funding agreement between the United States and the New York State Department of Environmental Conservation (“DEC”) – relate to environmental clean-up at the Eastman Business Park and the Genesee River. Pursuant to these agreements, Kodak commits to fund a trust with $49 million for clean-up at the Eastman Business Park site and the Genesee River; DEC agrees to fund any additional costs of clean-up between $49 million and $99 million; and Kodak and DEC each agree to pay half of any costs above $99 million. As described in the settlement agreement, EPA and DEC have also entered a publicly available agreement that sets forth a plan for the investigation of contamination in the Genesee River and the selection and implementation of a clean-up remedy. These arrangements build upon and strengthen an agreement that Kodak and DEC originally proposed to the bankruptcy court in June 2013. The Eastman Business Park settlement agreement also provides that Kodak will pay the United States more than $4 million, and an additional amount pursuant to the terms of Kodak’s plan of reorganization, to satisfy environmental liabilities for damages to natural resources in the Genesee River.
Since 1891, the Eastman Business Park has been Kodak’s primary photographic product manufacturing facility. In the course of Kodak’s operations, releases of hazardous waste occurred at the business park and into the nearby Genesee River. Kodak is responsible under federal environmental law for the management of this hazardous waste and clean-up of historic contamination at the site, and it is also responsible for damages for injury to natural resources in the Genesee River. Today’s agreements relating to the Eastman Business Park ensure that Kodak’s legacy of contamination will be addressed. In addition, these agreements will promote economic development at the Eastman Business Park by providing opportunities for new businesses to move to the park without bearing the burden of Kodak’s historic contamination.
The third agreement that the United States filed today is a settlement agreement between the United States and Kodak relating to Kodak’s environmental liabilities at the Fair Lawn Well Field Superfund Site and the Mercury Refining Superfund Site. Under this agreement, Kodak will provide the United States with $2,000,000 for the Fair Lawn site and approximately $750,000 for the Mercury Refining site, plus additional amounts for each site pursuant to the terms of Kodak’s plan of reorganization.
The settlement agreements will be filed with the Bankruptcy Court for a period of at least 30 days before their entry to provide public notice and to afford members of the public the opportunity to comment on the settlement agreements. Written comments must be submitted within 30 days of the publication of notice of the settlement agreements in the Federal Register and be emailed to [email protected] or mailed to Assistant Attorney General, U.S. DOJ – ENRD, P.O. Box 7611, Washington, D.C. 20044-7611.
Mr. Bharara praised the efforts of EPA and the Environment and Natural Resources Division of the U.S. Department of Justice in this case.
Assistant United States Attorneys Robert William Yalen and Christine S. Poscablo are in charge of the case, which has been handled by the Office’s Environmental Protection Unit and Tax and Bankruptcy Unit.
Lengthy Prison Sentences Handed Down for Two Individuals Involved in Conspiracy to Kidnap A MinorRead the Press Release
Spokane – Today, Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Ernesto Martinez, age 20, was sentenced to 25 years imprisonment and Yaritza Contreras, age 20, was sentenced to 9 years imprisonment for their involvement in a conspiracy to kidnap a minor.
According to information disclosed during the court proceedings, during the early morning hours of May 10, 2013, Ernesto Martinez and Esmeralda Contreras entered a residence and abducted a fourteen year old boy. Martinez subsequently made several ransom calls to the victim's father. The victim's father quickly reported the crime to the Yakima County Sheriff's Office. The Yakima County Sheriff's Office and the Federal Bureau of Investigation immediately began working together with the goal of reuniting the victim with his parents. At approximately 2:00 p.m., due to the outstanding efforts of law enforcement Esmeralda Contreras and Yaritza Contreras were apprehended. The victim was found bound with duct tape and rope. The victim was unharmed and quickly reunited with his parents.
Senior United States District Judge Robert H. Whaley sentenced Ernesto Martinez to 25 years imprisonment, to be followed by 5 years of court supervision upon release from Federal prison. Yartiza Contreras was sentenced to 9 years imprisonment, to be followed by 5 years of court supervision upon release from Federal prison. Esmeralda Contreras, a third individual involved in the abduction, currently has a sentencing hearing scheduled for May 7, 2014.
Michael C. Ormsby, U.S. Attorney for the Eastern District of Washington, said, "The abduction of a child is an extremely serious offense and offenders will be subjected to long terms of incarceration. The United States Attorney's Office, the Federal Bureau of Investigation, and the Yakama County Sheriff's Office, have a zero tolerance policy regarding such egregious acts of violence and are committed to prosecuting individuals who engage in such horrific offenses."
The investigation was conducted by the Federal Bureau of Investigation, the Yakima County Sheriff's Office, the Wapato Police Department, and the Yakima Police Department. The case was prosecuted by Assistant United States Attorney Alison L. Gregoire and Thomas J. Hanlon, Assistance United States Attorneys for the Eastern District of Washington.
13-CR-2075-RHW
Kingsport Woman Pleads Guilty to Filing False and Fraudulent Federal Income Tax ReturnsRead the Press Release
GREENEVILLE, Tenn. – On Mar. 10, 2014, Melissa Ann Nowlin, 28, of Kingsport, Tenn., pleaded guilty in U.S. District Court to one count of conspiracy to defraud the government with respect to claims and four counts of theft of public money.
According to supporting documentation for the plea agreement, Nowlin conspired with Devin Ray Horne, 24, of Kingsport, Tenn., to fraudulently obtain funds by filing false federal tax returns using personal identifying information which Horne stole from other individuals in the Eastern District of Tennessee.
Nowlin previously pleaded guilty in August 2013 to other charges involving her participation with Horne and numerous others in a conspiracy to distribute oxycodone pills. Sentencing for Nowlin on both the oxycodone conspiracy and the fraudulent income tax return case is set for Jun. 30, 2014, before the Honorable J. Ronnie Greer, U.S. District Court Judge.
The investigation leading to the charges and guilty plea was conducted by the IRS Criminal Investigations Division, Bureau of Alcohol, Tobacco and Firearms, Sullivan County Sheriff’s Office, Kingsport Police Department and Bristol Tennessee Police Department, all of which provided invaluable assistance during the course of the investigation. Assistant U.S. Attorney Wayne Taylor represented the United States.
Justice Department Seeks Temporary Restraining Order to Stop Ohio Department of Youth Services from Excessively Secluding Boys with Mental Health NeedsRead the Press Release
Today, the Justice Department sought a federal court order temporarily restraining the Ohio Department of Youth Services (DYS) from unlawfully secluding boys with mental health needs in its juvenile correctional facilities. The requested order would require DYS to abide by safeguards in its use of seclusion until a final ruling on the claims that DYS’ seclusion practices violate the constitutional rights of boys in DYS custody. In conjunction with its request for a temporary restraining order, the department sought to expand its existing complaint regarding the Scioto Juvenile Correctional Facility, to include claims of unlawful seclusion at all of the DYS facilities.
The department’s request for a restraining order detailed the state’s excessive use of seclusion, including the following information:
· In the second half of 2013, the state imposed a total of almost 60,000 hours of seclusion on 229 boys with mental health needs;
· One boy spent 1,964 hours in seclusion over six months; the state gave another boy 21 straight days of seclusion;
· Ten boys at one facility spent over 10 percent of their time in custody in seclusion;
· While secluded, several boys were on suicide watch, had suicidal thoughts or hurt themselves.
“The Ohio Department of Youth Services must stop violating the rights of youth in its custody through unlawful seclusion,” said Acting Assistant Attorney General Jocelyn Samuels for the Justice Department’s Civil Rights Division. “The way in which Ohio uses seclusion to punish youth with mental health needs, victimizes one of the most vulnerable groups in our society.”
“Ohio’s juvenile correctional facilities must comply with the Eighth and 14th Amendments,” said U.S. Attorney Carter Stewart for the Southern District of Ohio. “We will remain vigilant in protecting the constitutional rights of all our citizens, particularly young people and those with mental illness.”
“The facts in this case reveal a serious disregard for the rights of young people with mental health needs in Ohio’s custody,” said U.S. Attorney Steven M. Dettelbach for the Northern District of Ohio. “The Ohio Department of Youth Services has a responsibility to ensure the health and safety of these young people, including providing appropriate mental health treatment, so that they can overcome challenging behaviors and return to the community to become successful adults.”
Following an investigation under the Violent Crime Control and Law Enforcement Act of 1994 and the Civil Rights of Institutionalized Persons Act (CRIPA), the Justice Department issued findings in May 2007 detailing significant constitutional deficiencies regarding use of physical force, grievance investigation and processing and use of seclusion. In June 2008, the department entered into a consent decree with the state to correct these deficiencies at the Scioto Juvenile Correctional Facility. However, the recent discovery that DYS continued to unlawfully seclude boys with mental health needs at Scioto Juvenile Correctional Facility and had moved boys to other DYS facilities also using unlawful seclusion prompted the department today to seek a temporary restraining order and an order allowing it to add the remaining DYS facilities to its complaint.
This case is being litigated by attorneys from the Special Litigation Section of the Civil Rights Division, the U.S. Attorney’s Office for the Southern District of Ohio and the U.S. Attorney’s Office for the Northern District of Ohio. Copies of both motions and additional information about the Civil Rights Division will be available on its website.
Jury Convicts Texas Man of Attempting to Entice A Minor to Have SexRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that a federal jury found Elton Ray Jones, 67, of Zavalla, Texas, guilty Tuesday of attempting to entice a minor to engage in criminal sexual activity. United States District Judge Elizabeth Foote presided over the trial.
Following the two-day trial, the jury found Jones guilty after deliberating for one hour. Based on witness testimony and documents admitted into evidence, it was shown that from September 11, 2012 to October 17, 2012, Jones made contact and conducted online chats with a law enforcement officer posing as a 14-year-old girl. Jones engaged in explicit conversations with the girl and planned a sexual encounter. Law enforcement officers arrested Jones on October 17, 2012 in Lafayette where Jones had planned to meet the girl.
Jones faces 10 years to life in prison, five years to life of supervised release, and a $250,000 fine for one count of attempting to entice a minor to engage in criminal sexual activity. He must also register as a sex offender.
This case is part of Project Safe Childhood, a U.S. Department of Justice launched nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be submitted anonymously.The Louisiana State Police and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Myers P. Namie and John Luke Walker are prosecuting the case.
Jury Convicts All Seven Defendants in <br /> $97 Million Medicare Fraud SchemeRead the Press Release
A federal jury in Houston today convicted two owners of a former Houston mental health care company, Spectrum Care P.A. (Spectrum), several of its employees and the owners of certain Houston group care homes for their participation in a $97 million Medicare fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Stephen L. Morris of the FBI’s Houston Field Office and Special Agent in Charge Mike Fields of the Dallas Regional Office of HHS’s Office of Inspector General (HHS-OIG), the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU), Special Agent in Charge Joseph J. Del Favero of the Chicago Field Office of the Railroad Retirement Board, Office of Inspector General (RRB-OIG) and Special Agent in Charge Scott Rezendes of Field Operations of the Office of Personnel Management’s Office of Inspector General (OPM-OIG) made the announcement following a jury trial before U.S. District Judge Vanessa Gilmore in the Southern District of Texas.
Physicians Mansour Sanjar, 81, and Cyrus Sajadi, 66, the owners of Spectrum, were each convicted of conspiracy to commit health care fraud and conspiracy to pay kickbacks as well as related counts of health care fraud and paying illegal kickbacks. Adam Main, 33, a physician’s assistant, was convicted of conspiracy to commit health care fraud and related counts of health care fraud. Shokoufeh Hakimi, 66, administrator of Spectrum, was convicted of conspiracy to commit health care fraud, conspiracy to pay kickbacks and a related count of paying an illegal kickback. Chandra Nunn, 35, a group home owner, was also convicted of conspiracy to commit health care fraud, conspiracy to pay and receive kickbacks and related counts of receiving illegal kickbacks. Sharonda Holmes, 40, a patient recruiter, was convicted of conspiracy to pay and receive kickbacks and a related count of receiving an illegal kickback. Shawn Manney, 51, a group home owner, was convicted of conspiracy to pay and receive illegal kickbacks.
According to evidence presented at trial, Sanjar and Sajadi orchestrated and executed a scheme to defraud Medicare beginning in 2006 and continuing until their arrest in December 2011. Sanjar and Sajadi owned Spectrum, which purportedly provided partial hospitalization program (PHP) services. A PHP is a form of intensive outpatient treatment for severe mental illness. The Medicare beneficiaries for whom Spectrum billed Medicare for PHP services did not qualify for or need PHP services. Sanjar, Sajadi, Main and Moore signed admission documents and progress notes certifying that patients qualified for PHP services, when in fact, the patients did not qualify for or need PHP services. Sanjar and Sajadi also billed Medicare for PHP services when the beneficiaries were actually watching movies, coloring and playing games–activities that are not covered by Medicare.
Evidence presented at trial showed that Sanjar, Sajadi and Hakimi paid kickbacks to Nunn, Holmes, Manney and other group care home operators and patient recruiters in exchange for delivering ineligible Medicare beneficiaries to Spectrum. In some cases, the patients received a portion of those kickbacks. According to evidence presented at trial, Spectrum billed Medicare for approximately $97 million in services that were not medically necessary and, in some cases, werenot provided.
Sanjar, Sajadi and Nunn are scheduled to be sentenced on Sept. 8, 2014. Main, Hakimi, Holmes and Manney are scheduled to be sentenced on Sept. 15, 2014.
The case was investigated by the FBI, HHS-OIG, Texas MFCU, RRB-OIG and OPM-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas. The case is being prosecuted by Assistant Chief Laura M.K. Cordova and Trial Attorneys Jonathan T. Baum and William S.W. Chang of the Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov .Johnson County Tax Preparer Pleads Guilty to Filing False Tax Return, Wire FraudRead the Press Release
KANSAS CITY, KAN. - A tax preparer in Johnson County pleaded guilty today to federal tax fraud charges that cost a Kansas company more than $744,000, U.S. Attorney Barry Grissom said.
John M. Moore, 52, Lenexa, pleaded guilty to one count of filing a false tax return and one count of wire fraud. In his plea, he admitted a company he owns, Accent Payroll Services (APS), was hired to provide payroll processing services for Tytan International L.L.C. of Lenexa, Kan. From 2008 to 2010, APS was responsible for paying the wages of Tytan’s employees, withholding employment taxes, filing Tytan’s employment tax returns on Internal Revenue Service form 941 and paying withheld employment taxes to the IRS.
Moore transferred more than $2 million in employment tax withholdings from Tytan’s bank account to his company’s bank account. However, he only paid the IRS approximately $1.3 million. To keep Tytan from receiving notices from the IRS that taxes were not paid, Moore gave the IRS an address for Tytan at a post office box he controlled.Sentencing is set for May 29. He faces a maximum penalty of 3 years in federal prison and a fine up to $100,000 on the charge of filing a false tax return and a maximum penalty of 20 years and a fine up to $250,000 on the wire fraud count.
Grissom commended the Internal Revenue Service, the FBI and Assistant U.S. Attorney Chris Oakley for their work on the case.Johnson County Man Sentenced to 84 Months for Armed Drug TraffickingRead the Press Release
PIKEVILLE, KY - A Johnson County man, who previously admitted to trafficking prescription drugs, was sentenced on Tuesday to 84 months in prison.
U.S. District Judge Amul Thapar sentenced 43 year-old John Kline for armed drug trafficking. Under federal law, Kline will have to serve at least 85 percent of his prison sentence.
Kline admitted during his guilty plea, in December 2013, that he had sold Oxycodone pills to several undercover officers with the Kentucky State Police. Kline was also in possession of a loaded semiautomatic pistol at the time of one of the drug transactions. According to the plea agreement, authorities searched Kline’s residence and found hundreds of Oxycodone pills and 17 firearms.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Stuart Lowrey, Special Agent in Charge, ATF; Rodney Brewer, Kentucky State Police Commissioner; and Dwayne Price, Johnson County Sheriff, jointly announced the sentence.
The investigation was conducted by ATF, the Kentucky State Police and the Johnson County Sheriff’s Office. Assistant U.S. Attorney Hydee Hawkins prosecuted this case for the U.S. Attorney’s Office on behalf of the federal government.
Jicarilla Apache Man Pleads Guilty to Involuntary Manslaughter Charges Arising out of DWI Collision Resulting in two DeathsRead the Press Release
ALBUQUERQUE – Isaiah Dean Trujillo, 24, a member of the Jicarilla Apache Nation who resides in Dulce, N.M., pleaded guilty this morning to a felony information charging him with two counts of involuntary manslaughter. The guilty plea was announced by Acting U.S. Attorney Steven C. Yarbrough and Chief Kendell Vicenti of the Jicarilla Apache Tribal Police Department.
Trujillo was arrested on May 6, 2013, on a criminal complaint alleging involuntary manslaughter charges arising out of a single motor vehicle collision occurring on April 24, 2013, in Dulce within the Jicarilla Apache Nation. Two women, both members of the Jicarilla Apache Nation, died as a result of injuries sustained during the collision. Trujillo, the driver of the vehicle, was intoxicated at the time of the collision.
In his plea agreement, Trujillo admitted that on April 24, 2013, he drove a vehicle in excess of 70 miles per hour on a road with a 35 mile per hour speed limit after consuming a large amount of alcohol. Trujillo further admitted that he lost control of the vehicle and the vehicle flipped over. Two of the four passengers in the vehicle were killed and the other two suffered serious injuries. Trujillo further admitted that his blood alcohol concentration was .29 following the collision.
Trujillo’s sentencing hearing has yet to be scheduled. Under the terms of his plea agreement, Trujillo will be sentenced to eight years in federal prison followed by a term of supervised release to be determined by the court.
This case was investigated by the Jicarilla Apache Tribal Police Department and is being prosecuted by Assistant U.S. Attorney Jennifer M. Rozzoni.
Jefferies Llc Agrees to Pay $25 Million Related to Fraudulent Rmbs Trading ActivityRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that New York-based investment bank and broker-dealer Jefferies LLC (Jefferies) and the U.S. Attorney’s Office have entered into a non-prosecution agreement relating to Jefferies’ trading in residential mortgage-backed securities (RMBS), including with funds created and funded through the Troubled Asset Relief Program by the federal government. As part of this agreement, Jefferies will pay a monetary penalty of $25 million.
“Employees in Jefferies’ fixed income division repeatedly misled their own customers, said U.S. Attorney Daly. “The sole purpose of this deception was to increase profit to Jefferies and its employees. Not only did management tolerate these illegal practices, but the culture within the division encouraged the fraudulent conduct. By entering into this agreement, Jefferies recognized the seriousness of the problem and committed to change. While our investigation of individuals continues, we agreed to this corporate resolution in order to reflect the company’s cooperation and to avoid further damage to its many blameless employees and shareholders. Broker-dealers are on notice that lying to customers to increase profits is a crime, and are strongly encouraged to root out and report such misconduct to avoid significant consequences. We thank SIGTARP, Connecticut FBI and the Boston Regional Office of the SEC for their excellent work on this important case.”
“The government absolutely expects that businesses dealing with federal TARP programs, funded by taxpayers and designed to address the financial crisis, will ensure that they and their employees conduct themselves using strict adherence to the laws of this country and the highest standards of ethics, integrity, and cooperation,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “When Jefferies learned of a suspected fraud scheme by one of its senior traders, Jesse Litvak, to cheat and overcharge TARP-funded entities and that Jefferies supervisors were aware of the lies but turned a blind eye, Jefferies chose to do the right thing. Jefferies cooperated with the government, conducted an internal investigation, acknowledged the harm done, agreed to pay for that harm, and took responsibility to make necessary changes to its staffing as well as to its compliance policies, procedures, and internal controls.”
“Perhaps most troublesome in this fraud scheme was that Jefferies management in the fixed income division learned of the fraud and did nothing to stop it, let alone report it,” said FBI Special Agent in Charge Ferrick. “Such egregious conduct supports the $25 million dollar penalty and underscores the need to investigate and prosecute all responsible parties. The U.S. Attorney’s Office, SIGTARP and the FBI make a formidable team in the pursuit of justice and will continue to thoroughly investigate this matter.”
In response to the 2008 financial collapse, the U.S. Department of Treasury introduced the Legacy Securities Public-Private Investment Program (PPIP), and used more than $22 billion of bailout money from the Troubled Asset Relief Program (TARP) to restart the trading markets for many troubled securities, including certain kinds of RMBS. The program created nine PPIP funds, and more than 100 firms applied to manage the funds. TARP infused between $1.4 billion and $3.7 billion of bailout money into each of the PPIP funds that was to be invested alongside private capital.
Jefferies’ Mortgage and Asset-Backed Securities Trading group traded RMBS on the secondary market by buying and selling RMBS to customers, including Legacy Securities Public-Private Investment Funds. In approximately 2009, certain Jefferies’ employees in that group fraudulently increased the profitability of certain RMBS trades for Jefferies in various ways, including by misrepresenting the RMBS seller’s asking price to the buyer and by misrepresenting the buyer’s asking price to the seller. Jefferies’ employees also concealed that RMBS were being sold from Jefferies’ inventory in order to charge buyers an extra commission to which Jefferies was not entitled.
At times, members of Jefferies’ management in the fixed income division became aware that Jefferies employees were making misrepresentations to customers and did nothing to stop it.
Under the terms of the non-prosecution agreement, which was entered into on January 29, 2014, Jefferies agreed to pay a total penalty of $25 million. The penalty includes up to $11 million in restitution to victims and up to a $4,200,402 penalty to the U.S. Securities and Exchange Commission (SEC). Jefferies also agreed to address deficiencies in the compliance and ethics practices and policies of its Mortgage and Asset-Backed Securities Trading group. These measures include Jefferies’ agreement to retain an Independent Compliance Consultant to conduct a review of Jefferies’ policies and procedures for detecting and preventing fraud in connection with the purchase or sale of RMBS.
The agreement announced today addresses only the corporate criminal liability of Jefferies LLC, not potential criminal charges for any individual. The criminal investigation of individuals associated with Jefferies’ RMBS trading activities remains active and ongoing. Jefferies has cooperated with the federal criminal investigation, and already implemented certain compliance improvements.
On March 7, 2014, a federal jury in New Haven found Jesse C. Litvak, a registered broker-dealer and former managing director at Jefferies, guilty of multiple offenses involving a scheme to defraud customers trading in RMBS.
This matter is being investigated by the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) and the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorneys Jonathan Francis and Eric Glover.
This matter was investigated in coordination with the RMBS Working Group, a joint federal and state initiative created to investigate those responsible for misconduct contributing to the 2008 financial crisis. RMBS were pools of mortgages deposited into trusts and then sold as securities to investors who were to receive a stream of income from the mortgages packaged in the RMBS. The RMBS Working Group, which is chaired by Attorney General Eric Holder, brings together more than 200 attorneys, investigators, analysts and staff from dozens of state and federal agencies including the Department of Justice, ten U.S. Attorneys’ Offices, the FBI, the Securities and Exchange Commission, the Department of Housing and Urban Development (HUD), HUD’s Office of Inspector General, the Federal Housing Finance Agency’s Office of Inspector General, SIGTARP, the Federal Reserve Board’s Office of Inspector General, the Recovery Accountability and Transparency Board, the Financial Crimes Enforcement Network, and more than ten state Attorneys General offices around the country.
For more information about the RMBS Working Group and the Financial Fraud Enforcement Task Force, please visit: www.stopfraud.gov.
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[email protected]Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office today announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Lynch in Missoula on March 4, 2014 and entering pleas of Not Guilty were:
- ISA CHERYL BAILEY, a 28-year-old resident of North Carolina, appeared on charges of counterfeiting obligations of the United States and uttering counterfeit obligations. If convicted of the most serious charge contained in the indictment, BAILEY faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the U.S. Secret Service and the Missoula Police Department. PACER Case Reference: 14-10
- EVEN M. GROVO, a 55-year-old resident of Massachusetts, appeared on charges of child exploitation enterprise and conspiracy to advertise child pornography. If convicted of the most serious charge contained in the indictment, GROVO faces life imprisonment, $250,000 in files and lifetime supervised release. The investigation was a cooperative effort of the Federal Bureau of Investigation, Homeland Security Investigations, Polson Police Department, Helena Police Department, Internet Crimes Against Children Task Force, and Montana Division of Criminal Investigation. PACER Case Reference: 13-30
- DNEY LIDE ROGERS a 29-year-old resident of North Carolina, appeared on charges of counterfeiting obligations of the United States and uttering counterfeit obligations. If convicted of the most serious charge contained in the indictment, ROGERS faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the U.S. Secret Service and the Missoula Police Department. PACER Case Reference: 14-10
- VID DONALD SHEARER, a 67-year-old resident of Townsend, appeared on charges of felon in possession of firearms and ammunition. If convicted of the charge contained in the indictment, SHEARER faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. PACER Case Reference: 13-19
Appearing before U.S. Magistrate Judge Ostby in Billings on March 6, 2014 and entering pleas of Not Guilty were:
- YES GUTIERREZ, a 44-year-old resident of Phoenix, Arizona, appeared on charges of conspiracy to possess with intent to distribute methamphetamine and conspiracy to commit money laundering. If convicted of the most serious charge contained in the indictment, GUTIERREZ faces life imprisonment, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Drug Enforcement Administration and Homeland Security Investigations. PACER Case Reference: 14-08
- MONA LOPEZ, a 44-year-old resident of Modesto, California appeared on charges of conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute meth, and possession with intent to distribute heroin. If convicted of the most serious offenses contained in the indictment, LOPEZ faces life imprisonment, $10,000,000 in fines and 5 years supervised release. PACER Case Reference: 13-92
Appearing before U.S. Magistrate Judge Strong in Great Falls on March 11, 2014 and entering please of Not Guilty were:
- LLIAM T. AHENAKEW, a 23-year-old resident of Box Elder appeared on charges of sexual abuse. In convicted of the charge contained in the indictment, AHENAKEW faces life imprisonment, $250,000 in fines and lifetime supervised release. PACER Case Reference: 14-14
The indictment is merely a formal charging document. It is not proof of guilt and all persons indicted are presumed to be innocent of any crime until proof of guilt is established by trial or guilty plea.
The U.S. Attorney's Office is currently transitioning its media program to new media contacts. Resources and this transition may affect the amount of information the office can process and disclose in a timely manner. Therefore, if any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html.
To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Indictment: Proceeds of Bank FraudDeposited in Former Legislator's Political AccountRead the Press Release
TOPEKA, KAN. - A federal grand jury indictment returned here today charges a former Kansas legislator with bank fraud and alleges some of the money went into his political account, U.S. Attorney Barry Grissom said today.
Trent K. LeDoux, 40, Holton, Kan., is charged with three counts of bank fraud and two counts of money laundering. The alleged crimes took place in 2011 and 2012 while LeDoux was a member of the Kansas House of Representatives.
The indictment alleges LeDoux received three loans -- $106,600, $175,500 and $183,000 – from Farmers and Merchants Bank of Colby, Kan. He told the bank he was going to use all the funds to purchase cattle that would serve as collateral on the loans. In fact, he did not intend to use all the funds to buy cattle, but to pay off existing debts and to make contributions to his political account.
In two money laundering counts, the indictment alleges LeDoux transferred $15,000 on Dec. 31, 2011, and $12,000 on Aug. 1, 2012, to his campaign account.
The indictment seeks a monetary judgment of $465,100.
If convicted, he faces a maximum penalty of 30 years in federal prison and a fine up to $1 million on each count of bank fraud, and a maximum penalty of 10 years and a fine up to $250,000 on each count of money laundering. The FBI investigated. Assistant U.S. Attorney Richard Hathaway is prosecuting.