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Friday 28 February 2014
Kelso Man Sentenced to 25 Years in Prison for Production of Child PornographyRead the Press Release
A 38-year-old Kelso, Washington man was sentenced today to 25 years in prison for production of child pornography, possession of child pornography and distribution of child pornography, announced U.S. Attorney Jenny A. Durkan. JONATHAN SCOTT LEE was arrested in October 2012, after he sent images of child pornography to an undercover officer working in New Zealand. LEE thought he was communicating with someone who could provide him additional images of child pornography. Law enforcement was able to trace the photos to LEE and his camera. They seized his computer and other media storage devices at his Kelso home. Analysis revealed thousands of images and videos of child pornography on his computer, an external hard drive, and his smartphone. He pleaded guilty in September 2013 to taking the sexually explicit images of an 11-year-girl. LEE is required to register as a sex offender and will be on supervised release for the rest of his life following his prison term.
At the sentencing hearing U.S. District Judge Ronald B. Leighton said “the production of child pornography is a despicable activity. Exploiting children is the lowest form of cruelty I can imagine.”
“The production of child pornography—coupled with the physical sexual abuse of children—is a heinous crime with devastating, lifelong impacts on its victims,” said U.S. Attorney Jenny A. Durkan. “Distributing the photos of these children being molested further victimizes them and warrants this significant prison sentence.”
According to records filed in the case, investigators were able to identify three young victims involved in LEE’s production of child pornography. Other images that he possessed were those of victims already identified by the National Center for Missing and Exploited Children (NCMEC).
“Not only did the defendant abuse children, he shared his exploitation with predators around the world,” said Brad Bench, special agent in charge of Homeland Security Investigations in Seattle. “HSI places a high priority on combating this despicable crime, not only to identify and rescue child victims, but to stop their re-victimization by individuals who view and distribute Internet child pornography.”
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigation (HSI) and by the Kelso Police Department. The case was prosecuted by Assistant United States Attorney Marci Ellsworth.
Justice Department Releases New Planning Tool to Help Courts Provide Access to Limited English Proficient IndividualsRead the Press Release
Today, the Justice Department released a new tool to help state and local courts assess and improve their language assistance services for limited English proficient (LEP) litigants, victims and witnesses who need access to court services.
With over 25 million LEP persons in the United States, the Language Access Planning and Technical Assistance Tool for Courts (Planning Tool) will be able to assist courthouses and administrative tribunals across the country to self-assess their court systems to determine how effectively they are providing language assistance services and how these services can be improved. The Planning Tool prompts courts to examine their court rules, the quality and competency of interpretation and translation, the level of their engagement with LEP communities and the implementation of language access plans. Courts also are encouraged to modify this tool for the particular needs and features of their court and court system.
The tool was created by the Federal Coordination and Compliance Section (FCS) of the Civil Rights Division. FCS enforces Title VI of the Civil Rights Act of 1964, under which it is illegal for federally assisted programs and activities to discriminate on the basis of national origin, which includes the failure to provide meaningful language access. The Planning Tool gives courts a tailored checklist of recommended steps towards achieving equal access to justice for all.
“Providing meaningful access to court systems and proceedings is not only required by law, it is the right thing to do and it is in the best interests of the judicial system,” said Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels. “When language barriers remain in place, limited English proficient individuals are not provided a meaningful opportunity to participate in important matters, and the results can be catastrophic, which is why this Planning Tool is such a vital instrument for our judicial system.”
The Planning Tool was previously released for public comment and received numerous recommendations from individuals and organizations representing judges, court staff, attorneys, advocates and community groups, which have been incorporated into the final version. For further information, please visit the Federal Coordination and Compliance website . For additional LEP-related resources, please go to the Federal Interagency LEP website .
Jury Finds Lumberton Karate Instructor Guilty of Child Pornography ViolationsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas - A federal jury has convicted a 60-year-old Lumberton, Texas man of child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Ronald Seabridge, Sr., owner of Brass Dragon Karate, was found guilty on Feb. 27, 2014, of receiving, distributing and possessing child pornography following a four-day trial before U.S. District Judge Thad Heartfield.
According to information presented in court, in 2009, federal agents executed a search warrant at Seabridge’s residence/karate studio in Lumberton as the result of an undercover operation which determined Seabridge was using a peer-to-peer file sharing program to receive and distribute child pornography. Seabridge’s computer and hard drives were seized and a forensic examination revealed over 300 images of child pornography.
Seabridge was indicted by a federal grand jury on May 23, 2013.
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.
Seabridge faces a minimum of five years and up to 20 five years in federal prison for receiving and distributing child pornography and up to 10 years in federal prison for the possession charge. A sentencing date has not been set. Seabridge was remanded to the custody of the U.S. Marshal immediately following the verdict.
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The case was investigated by the Federal Bureau of Investigation, the Lumberton Police Department, the Jefferson County Sheriff’s Office, and the Orange County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorneys Randall L. Fluke and Christopher T. Tortorice.Jury Convicts Three KC-area Men for Nearly $1 Million Conspiracy to Steal Trucks and Trailers, CargoRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that three Kansas City, Mo., area men were convicted in federal court today for their roles in a conspiracy to steal nearly $1 million worth of trucks and trailers and their cargo.
Kenneth Ray Borders, 43, of Kansas City, Mo., Jon Dirk Dickerson, 56, of Raytown, Mo., and his son, Kyle Wayne Dickerson, 31, of Holden, Mo., were found guilty of the charges contained in a Dec. 14, 2012, federal indictment. They were taken into federal custody immediately after the verdicts were returned by the jury.
Evidence presented during the trial indicated that all three of the co-defendants participated in a conspiracy that involved the theft of commercial trucks and trailers and their cargo in Missouri, Kansas, Florida, Arkansas, Oklahoma, and Nebraska. They worked together to steal trucks, trailers, and cargo and then dispose of them. Sometimes they used the trucks and trailers themselves to make money by hauling loads for customers and sometimes they sold the stolen trucks and trailers.
The conspiracy involved the thefts of five Freightliner trucks and 17 trailers between 2005 and 2011. The stolen trailers included refrigerated trailers containing such cargo as 39,000 pounds of meat, 565 boxes of beef valued at $149,790, $125,000 worth of frozen ribs, and several refrigerated trailers that each contained tens of thousands of dollars’ worth of frozen chicken, including a load of frozen chicken wings valued at $59,706. Also stolen were utility trailers containing such cargo as Budweiser beer valued at $16,657, Nike shoes valued at $217,353 and 21,018 pounds of Little Sizzler sausages.
Stolen cargo was sold cheaply to anyone who would buy it. Some of the cargo was sold out of the back of the trailer; some of it was sold to a tow truck driver or a convenience store operator to resell. For example, co-defendant Myron Piggie, 52, of Kansas City, Mo., earlier pleaded guilty to possessing stolen property. Piggie admitted that he accepted 12 pallets of stolen Budweiser beer products (valued at approximately $7,566). Piggie agreed to sell the beer at his store, MP Convenience Store in Kansas City, and split the profits with conspirators. However, he learned that the police were aware he had the stolen beer. Because he did not want to be found to be in the possession of the stolen beer, Piggie gave it all away, selling little or none of it.
Borders was involved in stealing the trucks, trailers, and cargo. He sold the cargo to others to resell, sometimes fronting the money by allowing his “customer” to pay him after they sold the product. Borders used some of the stolen trucks and trailers himself to make money by delivering cargo.
Jon Dickerson often had the first right to purchase stolen trucks and trailers. In fact, Borders actually had a “shopping list” from Dickerson listing the trucks and trailers that he wanted, so that Borders could keep an eye out for them and steal them if the opportunity presented itself.
Jon Dickerson and his son, Kyle Dickerson, also were involved in stealing trucks and trailers. They used them in their own trucking business, sometimes just for replacement parts with the remains sold for scrap. Kyle Dickerson had the tools, ability, and willingness to disguise the stolen nature of the trucks and trailers by altering their Vehicle Identification Numbers (VINs) so that they could be used in their trucking business without alerting authorities when they were stopped or inspected.
The Dickersons reduced their costs of doing business by stealing trucks and trailers themselves, or by buying stolen trucks and trailers from Borders, at a fraction of their fair market value. Since they had little financial investment in the stolen trucks and trailers, and knew that they had a readily-available and cheap supply of stolen trucks and trailers, they had little incentive to maintain and repair their fleet. As a result, their fleet wore out and had safety issues, such as problems with brakes and tires. When their fleet wore out, they simply replaced them with more stolen trucks and trailers.
The Dickersons did not bother to maintain and repair their trucks and trailers but continued to operate them in interstate commerce. As a result, DOT/FMCSA and other law enforcement repeatedly cited their company and drivers for failing inspections and violating regulations. The company's compliance reviews led to unsatisfactory safety ratings which led to a total of $450,000 in fines and numerous “out of service orders” directing them to cease operating in interstate commerce. The Dickersons just ignored the orders and the fines.
At a DOT roadside inspection, a Dickerson truck, trailer, or cargo could be delayed, or even impounded, if their poor record or condition prompted too many questions. The Dickersons’ scheme, however, included a way to downplay this risk. The Dickersons operated what is known in the industry as “chameleon carriers.” They simply abandoned their old company – along with its "baggage" of safety violations, “out of service” orders, and unpaid fines – and began operating with a new company under a new name. Thus, after Jon Dickerson’s company Fish and More was subject to more than $150,000 in fines and four orders to cease interstate transportation, he began operating under the name D&T Trucking. After D&T Trucking was subject to nearly $300,000 in fines and 17 orders to cease interstate transportation, the United States obtained a civil injunction and default judgment, and D&T Trucking was permanently enjoined from operating in interstate commerce. At that point, Kyle Dickerson got a DOT number for Night Line Trucking and Repair. Night Line Trucking and Repair received an unsatisfactory safety rating and an order to cease interstate transportation. The Dickersons then started operating under the name Nightline Trucking, LLC.
In addition to Piggie, co-defendants Christopher Dwight Turner, 45, and Michael O’Neal Foster, 55, both of Kansas City, Mo., pleaded guilty to receiving stolen goods. Turner admitted that he received approximately $386,932 worth of stolen meat. Foster admitted that he received a stolen Freightliner Classic XL truck, which he and others drove out of Missouri to both California and Indiana. Foster used it in his business, Kembeh Transportation.
In two separate, but related, cases, Jaccard Fears,46, of Raymore, Mo., and Roy Lynn Parvin, 54, of Kansas City, Mo., have also pleaded guilty to their roles in the conspiracy. Fears was employed by the trucking businesses operated by the co-conspirators. He was paid by Borders and Foster to remove emblems, decals, and other ownership information from stolen trucks and replace them with emblems depicting they were owned by Kembeh Trucking (Foster's Company) and others. Parvin admitted that he purchased multiple loads of stolen property from Borders and Turner, including stolen meat, dog food, and appliances totaling more than $6,000. Parvin was also in possession of beef stolen in Nebraska and sausage stolen in Kansas.
In addition to the conspiracy, Borders was found guilty of four counts of aiding and abetting the possession of stolen goods, one count of aiding and abetting the transportation of stolen goods and one count of aiding and abetting the possession of stolen vehicles.
Jon Dickerson was also found guilty of three counts of aiding and abetting the possession of stolen goods and one count of aiding and abetting the possession of stolen vehicles.
Kyle Dickerson was also found guilty of one count of aiding and abetting the transportation of stolen vehicles, two counts of aiding and abetting the possession of stolen goods and one count of aiding and abetting the possession of stolen vehicles.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated over a three-day period before returning the verdicts, ending a trial that began February 18, 2014.
Under federal statutes, Borders is subject to a sentence of up to 65 years in federal prison without parole, plus a fine up to $1,750,000. Jon and Kyle Dickerson are each subject to a sentence of up to 45 years in federal prison without parole, plus a fine up to $1,250,000. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office. The court will determine forfeiture amounts at a later date.
This case is being prosecuted by Senior Litigation Counsel Gregg R. Coonrod and Assistant U.S. Attorney Cindi S. Woolery. It was investigated by the Department of Agriculture – Office of Inspector General, the FBI, the Kansas City, Mo., Police Department, the National Insurance Crime Bureau, the National White Collar Crime Center, the Mid-States Organized Crime Information Center, Travelers Investigative Services, the Missouri State Highway Patrol, the Florida State Highway Patrol, and the U.S. Department of Transportation, Federal Motor Carrier Safety Administration.Jury Convicts Poplar Man of Rape, Assault and BurglaryRead the Press Release
The United States Attorney's Office Announced that after having been acquitted in 2012 of sexual assault, and then again in 2013-in trials involving other victims-Poplar resident Kevin Devereaux was found guilty of rape, assault and burglary by a federal jury in Great Falls on Thursday, February 27, 2014, after a two day trial.
Devereaux, 51, was charged with raping a woman in Poplar in 2009, then assaulting and burglarizing her house in 2013.
Witnesses testified that in May 2009, the victim was sleeping on her sofa when Devereaux suddenly appeared, standing over her. He grabbed her arm, dragged her down the hallway, and raped her in a bedroom. He laughed then fled the house. Fearing retaliation from Devereaux, she recanted her story a few weeks later and the case was closed.
Over the course of the next few years, Devereaux returned on numerous occasions and made repeated attempts to break into the victim's house. The victim called the police several times to report his attempts to break in through a window, door or garage.
In October 2013, Devereaux successfully broke into the victim's house and attacked her while she was sleeping in a bedroom with her 7-year-old granddaughter. With the child in the room, Devereaux strangled the victim, repeatedly punched her in the face, and threated to kill her.
The U.S. Attorney's Office consolidated the 2009 and 2013 offenses in a single indictment for trial. Devereaux faces maximum thirty years in prison for the rape, twenty years for the burglary and ten years for the assault.
The investigation was a joint effort between the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice. Assistant United States Attorney Laura B. Weiss prosecuted the case.
Jury Convicts Mexican Resident Alien of Bringing Cocaine and Methamphetamine into U.S.Read the Press Release
BROWNSVILLE, Texas - Valentin Muniz-Saavedra, 44, residing in Brownsville, has been convicted of conspiracies to possess and import and possession with intent to distribute and import cocaine and methamphetamine, announced United States Attorney Kenneth Magidson. The jury deliberated for more than a day and convicted Muniz-Saavedra tonight of possession with intent to distribute 18 kilograms (39.6 pounds) of cocaine, possession with intent to distribute 5.5 kilograms (12.1 pounds) of methamphetamine as well as conspiracy to import cocaine and methamphetamine into the United States.
The charges arose from an inspection and seizure at the Gateway International Bridge Port of Entry in Brownsville where Muniz-Saavedra entered the United States as the driver of a mini-van. During inspection of this vehicle, agents discovered 18 kilograms of cocaine and 5.5 kilograms of methamphetamine hidden within the side quarter panels, firewall and roof. A total of 32 bundles were removed by inspectors.Muniz-Saavedra claimed to have no knowledge of the drugs but admitted to having picked up the van on the Mexican side of the bridge and was planning to drop it off to another individual immediately upon entering the U.S. Muniz-Saavedra also admitted to agents and inspectors that he lied about when he obtained the van, saying he had “borrowed it earlier in the day.”
Evidence at the four-day trial showed that upon further investigation by Homeland Security Investigations (HSI), it was determined Muniz-Saavedra had met earlier in the day at several different locations in Brownsville with other individuals associated with the mini-van. A Drug Enforcement Administration (DEA) agent testified the cocaine and methamphetamine was worth more than $500,000.
U.S. District Judge Hilda Tagle, who presided over trial, has set sentencing for June 2, 2014, at which time he faces a mandatory minimum of 10 years and up to life in federal prison as well as a $10 million fine for each of the counts of which he was convicted. He has been remanded to the custody pending that hearing.
This case was investigated by HSI with the assistance of DEA. Assistant United States Attorney Oscar Ponce is prosecuting.Jury Convicts Austin Lawyer in Relation to “Butch” Ballow Case and Stock Sale SchemeRead the Press Release
HOUSTON – Patrick Lanier, 65, of Austin, has been convicted on 16 counts to include one count of harboring and concealing Harris “Butch” Ballow from arrest, announced United States Attorney Kenneth Magidson. Lanier was convicted of conspiracy to commit wire fraud arising from a stock sale scheme, 13 counts of wire fraud, one count of harboring and concealing Ballow from arrest and one count of assisting a federal offender. The jury returned its verdicts last night following a 13-day trial.
Lanier is an Austin attorney who represented Ballow during proceedings before the Securities and Exchange Commission (SEC) in 2004 and also during the criminal case that led to Ballow becoming a fugitive. While a fugitive, Ballow controlled a corporation used to bilk hundreds of investors, many of whom lived in Canada, out of millions of dollars. Lanier served as a lawyer for that corporation.
Evidence demonstrated that Lanier assisted Ballow in selling shares of stock in public companies acquired and controlled by Ballow while he was a fugitive from justice. Assisted by Lanier, Ballow and co-conspirators sold stock to unsuspecting investors by hiding Ballow’s true identity, disseminating false and misleading information to increase and maintain the value of stock, failing to fulfill promises to remove restrictions which prevented investors from selling the stock and selling land and ownership interests in a real estate development that never materialized.
Ballow was a fugitive from justice in the United States for more than five years. He was indicted in federal court in Houston in 2003 for fraud and money laundering which centered on misrepresentations made in connection with the purchase and sale of stock. Ballow pleaded guilty before U.S. District Judge David Hittner to money laundering in November 2003 and faced a maximum of 10 years imprisonment. At the time, Ballow, who had been in custody without bond for approximately a year, agreed to cooperate with an SEC investigation and was released on a $100,000 bond pending his sentencing. On Dec. 16, 2004, the day of sentencing, Ballow failed to appear and a warrant was soon issued for his arrest. Ballow was arrested by Mexican authorities on July 13, 2010, in Nuevo Vallarta, Mexico, and extradited by Mexico to the United States on April 8, 2011. He was later sentenced to 10 years for money laundering and ordered to pay $10 million in restitution.
According to evidence presented in Lanier’s trial, Ballow lived under the names John Gel, Tom Brown and Marty Twinley during his time as a fugitive and also acquired a British passport in the name of Melvyn John Gelsthorpe. Ballow used these names to take control of publicly-traded corporations, including E-SOL International Corp., Medra Corp., Deep Earth Resources Inc. and Aztec Technology Partners Inc. (now known as Ultimate Lifestyles Corporation) and sold the stock to investors without revealing his true identity, his use of multiple names, his past convictions for fraud and money laundering and his status as fugitive from justice in the United States. After Ballow fled, Lanier traveled to Mexico to meet him and provided legal work for Ballow under his various false names to consummate Ballow’s fraudulent transactions to bilk investors.
Several others have also pleaded guilty in relation to the scheme and are pending sentencing.
Lanier faces up to 20 years in federal prison on the conspiracy charge as well as the substantive wire fraud charges. For the harboring and false statement charges, he also faces up to five years in prison, while the assisting a federal offender conviction carries a possible 2 ½ years in prison. All counts of conviction also carry a possible $250,00 fine. Sentencing is set for August 2014.
Previously released on bond, Lanier was taken into custody upon the return of the verdicts yesterday. A detention hearing is set for 2:00 p.m. today before Judge Lee Rosenthal.
The case was jointly investigated by the United States Marshals Service and the FBI with substantial assistance of Internal Revenue Service - Criminal Investigation and the U.S. Postal Inspection Service. Valuable assistance was also provided by the Royal Canadian Mounted Police. Assistant U.S. Attorneys John R. Lewis and Belinda Beek prosecuted the case.
Jamaican Drug Dealer Sentenced to 14 Years in PrisonRead the Press Release
Also Laundered More Than $300,000 in Drug Proceeds
Baltimore, Maryland - U.S. District Judge George L. Russell III sentenced Jerome Adolfo Castle, a/k/a Dontwon Burris, age 35, a Jamaican citizen residing in Pikesville, Maryland, to 14 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with the intent to distribute cocaine and marijuana; conspiracy to launder money; and illegally re-entering the United States after having previously been deported. Judge Russell also ordered that Castle forfeit $57,997 in cash, his interest in seven Baltimore properties, jewelry valued at more than $411,000, 98 pairs of men’s shoes, two laptop computers and an I-Pad, seven firearms and ammunition, as well as six vehicles, including a 2009 Jaguar XF Premium.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Chief James W. Johnson of the Baltimore County Police Department; Colonel Michael Kundrat, Chief of the Maryland Transportation Authority Police; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI)..
According to Castle’s plea agreement, from March 2013 through April 22, 2013, Jerome Castle conspired with Josef Byrd, Harold Byrd and others to distribute cocaine and marijuana. As a result of extensive surveillance and other investigative actions, law enforcement obtained federal search warrants for the residences of Harold and Josef Byrd; a commercial building at 5819 Moravia Road, Baltimore, MD; and for Castle’s residence on Archimedes Court in Pikesville.
On April 22, 2013, investigators arrested Josef Byrd and Harold Byrd as they took delivery of a shipment of approximately 500 pounds of marijuana at the commercial premises at 5819 Moravia Road. Jerome Castle was conducting counter-surveillance during the marijuana delivery and fled from police in a Ford pick-up truck. Castle took the police on a high-speed chase at speeds exceeding 100 miles per hour, and was arrested only after he crashed his vehicle into other vehicles parked in a used car lot in Harford County.
In search warrants executed later that day, law enforcement recovered over five kilograms of cocaine from each of the Byrd brothers’ homes, with a street value of approximately $150,000. Law enforcement also recovered three handguns, one AK-47 (semi-automatic), and four sets of body armor from Harold Byrd’s residence. Seventy-three black plastic containers used to conceal large quantities of marijuana during shipment from Arizona to Maryland were also recovered from Harold’s home. At Castle’s home, investigators recovered almost $58,000 in cash; jewelry appraised at over $411,000; a money counter; a scale used to measure quantities of drugs; over 200 grams of marijuana; and seven handguns. The substances recovered during these searches were field-tested and the results were positive for the presence of cocaine and marijuana.
In addition to his drug activities, Jerome Castle conspired to conduct monetary transactions of more than $10,000 using the proceeds from the sale of cocaine and marijuana. These monetary transactions were primarily bank account deposits made by Castle under the name of Dontwon Burris. Between 2010 and April of 2013, Castle deposited approximately $300,000 in cash to bank accounts in the name of Dontwon Burris.
Brothers Harold Alexander Byrd, age 26, of Phoenix, Maryland, and Joseph Ibreham Byrd, age 34, of Owings Mills, Maryland, previously pleaded guilty to their roles in the conspiracy and were each sentenced to 10 years in prison.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore County Police Department, the Maryland Transportation Authority Police, IRS-Criminal Investigation and HSI-Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys James G. Warwick and Kenneth S. Clark, who prosecuted the case.
Iowa Company Pleads Gulty to Releasing Contaminated Water into Duenweg Sewer; Must Pay Fine and Issue Public ApologyRead the Press Release
February 28, 2014SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Des Moines, Iowa, company pleaded guilty in federal court today to releasing thousands of gallons of gasoline-contaminated water into the city sewer system of Duenweg, Mo.
Seneca Companies, Inc., pleaded guilty before U.S. Magistrate Judge David P. Rush to the negligent introduction of a pollutant or hazardous substance into a publicly owned sewer system without any permit.
Seneca is a petroleum and hazardous materials handling company headquartered in Des Moines. Seneca agreed to repair a gasoline line at Casey’s General Store, 8084 E., 7th Street, in Duenweg in December 2010. This gasoline line failure had allowed gasoline to accumulate into a containment sump on Casey’s property. Seneca employees were responsible for safely repairing Casey’s gasoline line failure and safely disposing of any hazardous material in conformity with state and federal regulations.
On Dec. 16, 2010 Seneca employees pumped gasoline-contaminated water out of Casey=s containment sump and into the sewer system, negligently releasing a hazardous substance or pollutant (water tainted with gasoline), which was an illegal discharge.
Approximately 30 to 40 minutes later Casey’s employees detected a strong odor of gasoline and immediately notified the Duenweg Fire Department and the Seneca crew. Casey’s employees and Seneca’s crew immediately began pouring buckets of water into the sinks and floor drains to combat the fumes.
Employees of the Rosebrough General Store, located downstream from Casey’s, also detected strong gasoline odors inside their store and immediately vacated the store and notified the Duenweg Fire Department. The Duenweg Fire Department responded and immediately requested assistance from Joplin, Mo., fire and hazmat personnel, who also responded.
Joplin Fire Department personnel conducted atmospheric testing from various down flow sewer manholes from Casey’s and confirmed gasoline vapors above the lower explosive limit in the sewer under the Duenweg elementary school, causing the 150 students to be immediately evacuated from the school. The Duenweg and Joplin fire departments pumped large quantities of water into the sewer system to lower or dilute the gasoline vapors.
While it is impossible to know the exact amount of gasoline and water that were discharged into the public sewer, a Missouri Department of Natural Resources estimate is that between 7,500 and 10,000 gallons were released into the city system.
Today’s plea agreement notes that Seneca had been involved in this type of repair work at Casey’s in the past. In December 2009, Seneca applied to the city of Joplin for a permit to release treated water at the Casey’s location in Duenweg. Seneca’s application stated that, “due to the nature of gasoline sales at the site, the groundwater will be treated onsite with a portable air stripper system before discharging to the City’s sanitary sewer system.” Seneca received the permit to perform the work and completed it properly, using precisely the procedures they should have used on Dec. 16, 2010.
Under the terms of today’s plea agreement, Seneca must pay a fine of at least $75,000, up to $200,000, as well as restitution during a term of five years of probation. Seneca must conduct annual training for all employees engaged in the repair of underground gasoline storage tanks on the proper and lawful disposal and removal of pollutants or hazardous materials from underground gasoline storage tanks. The company must also publish a public apology consisting of an advertisement in the Joplin Globe for seven consecutive days. Public dissemination of Seneca’s negligence, says the plea agreement, will provide a deterrent effect for other potential violators of the Clean Water Act.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by the U.S. Environmental Protection Agency – Criminal Investigation Division, the Duenweg, Mo., Fire Department, the Joplin, Mo., Fire Department and the Missouri Department of Natural Resources.Indianapolis Man Sentenced for Role in Multi-State Cocaine Distribution ConspiracyRead the Press Release
NORFOLK, Va. – John Nathan Fitzgerald, 36, of Indianapolis, Indiana, was sentenced today to 360 months in prison, followed by 120 months of supervised release, for his role in a cocaine distribution conspiracy.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; and Royce E. Curtin, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by United States District Judge Arenda L. Wright Allen.Fitzgerald pleaded guilty on August 8, 2013. According to court documents, since approximately 2006, Fitzgerald was a member of a large-scale cocaine distribution conspiracy with a far-reaching distribution network that spanned from Virginia to New York, Pennsylvania, Indiana, Arizona, and other locations. The group concealed the cocaine for distribution and the proceeds from the sale of the drugs by secreting both inside the lining of coolers and inert, hollowed-out fire extinguishers to avoid detection during transportation. Fitzgerald ran the Indianapolis, Indiana hub of the organization, where he maintained a stash house for the group to store, re-package, and deliver the cocaine, as well as recruited others to assist in the distribution of cocaine. He was held responsible today for his role in the distribution of over 130 kilograms of cocaine.
To date, other defendants that have been convicted and sentenced include:- Luis Alberto Navarro – Sentenced December 13, 2013 to 360 months;
- Omar A. Martinez - Sentenced June 4, 2013 to 292 months;
- Adrian Demar Blunt - Sentenced February 12, 2013 to 240 months; and
- Mario A. Ruiz - Sentenced September 30, 2013 to 60 months.
This case was investigated by the Drug Enforcement Administration and the Federal Bureau of Investigation and is part of an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, “Fire and Ice.” Assistant United States Attorneys V. Kathleen Dougherty and Kevin M. Comstock 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.Holly Springs Residents Sentenced on Wire Fraud ChargesRead the Press Release
OXFORD, Miss. - Felicia C. Adams, United States Attorney for the Northern District of Mississippi, Daniel P. McMullen, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi, Phillip M. Durham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Keith Brown, Special Agent in Charge of the Drug Enforcement Administration, New Orleans Field Division, announced that:
Denisha Nicole Pore aka Denisha House, 30, of Holly Springs, Mississippi, and Samantha Marie Evans, 30, also of Holly Springs, were sentenced on February 26 and 27, respectively, by United States District Judge Glen Davidson, following their plea of guilty in April 2013 to one count of wire fraud each. Evans also plead guild to one count of using a communication facility (telephone) to facilitate the distribution of cocaine. The wire fraud charges stem from a scheme to steal money from various bank accounts through a series of fraudulent transactions.
Judge Davidson ordered Pore to serve 125 months in prison, followed by 5 years supervised release. She was also ordered to pay restitution in the amount of $104,384.76. Pore was taken into custody immediately following imposition of her sentence.
Judge Davidson ordered Evans to serve 21 months in prison on each count, to run concurrently, followed by 3 years supervised release on the wire fraud charge and 1 year supervised release on the drug charge, also to run concurrently. She was also ordered to pay restitution in the amount of $29,999.97. Evans is scheduled to report to prison on April 7.
A third defendant, Melinda Evans, is set to be sentenced at a later date.
“The sentences received from the courts send a clear message of deterrence to those individuals who would contemplate performing any criminal mischief in the Northern Judicial District of Mississippi,” said ATF New Orleans Field Division Special Agent in Charge Phil Durham. “The efforts of our agents and law enforcement partners in concert with the Holly Springs community deserve great credit for the results derived from this investigation.”
Daniel McMullen, Special Agent in Charge of the FBI in Mississippi, stated: “The significant sentence of Denisha Pore reflects the hard work and determined efforts of the FBI Special Agents and federal prosecutors who worked on this case, and the substantial investigative assistance provided by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives as well as the Drug Enforcement Administration. These sentences further reflect the intolerance of the criminal justice system for those who engage in criminal schemes to enrich themselves at the expense of others.”
Felicia C. Adams, United States Attorney for the Northern District of Mississippi said: “The sentences imposed reinforce the message that federal courts view the actions of the defendants as serious crimes that warrant significant punishment. The United States Attorney’s Office is committed to holding those who seek to profit from these fraudulent schemes accountable for their illegal activities.”
This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Drug Enforcement Adminstration and was prosecuted by Assistant United States Attorney Robert Mims.
Holland Man Charged in Connection with Fraudulent Receipt of Veterans' Benefits and Workers CompensationRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Richard Klaffka, 56, of Holland, N.Y., was charged by criminal complaint in connection with the defendant’s receipt of benefits from the Veterans’ Administration and Workers’ Compensation under false pretenses. Klaffka is charged with making false statements, mail fraud, wire fraud, and fraud. The charges carry a maximum penalty of 20 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney John E. Rogowski, who is handling the case, stated that according to the complaint, beginning in 2008, Klaffka told the Veterans Administration that, due to an injury connected with his military service in 1978, he was confined to a wheelchair and unable to engage in everyday activities like walking, driving and dressing himself. The defendant was already receiving benefits for the service related injury and was appealing for a significant increase in those benefits. Although his initial application for the increase was denied, after a successful appeal, the increase was granted and made retroactive resulting in a significant lump sum payment.
The complaint further alleges that in order to get Workers’ Compensation benefits from his employment with the United States Postal Service, the defendant falsely claimed that his mobility was limited due to a work injury, that he was only able to walk with the assistance of a cane and could not lift more than five pounds.
The complaint then outlines instances where investigators observed and recorded the defendant engaging in strenuous activities. In one instance in 2013, Klaffka was observed driving to the Veterans’ Administration Hospital and lifting a wheelchair from his vehicle. The defendant then placed himself in the wheelchair and his wife pushed him into the hospital. After his appointment, Klaffka’s wife pushed the defendant back to the vehicle where he got out of the wheelchair without assistance, lifted the chair back into the vehicle, and drove away.
The defendant was also observed playing horseshoes for hours at a time and then riding a bicycle. In another instance, the defendant went on a cruise and was observed engaging in a wide variety of activities not consistent with being confined to a wheelchair or otherwise limited in physical capacity. According to complaint, Klaffka is receiving over $9,000 per month in tax free benefits from both government entities as a result of his false claims.
“This Office is committed to ensuring that public money intended for those who are truly in need is not stolen by one who lies about his true physical condition,” said U.S. Hochul. “Instead of applying the well-known quote ‘[t]here is no substitute for hard work,’ to honest labor, the defendant stands accused of working to perpetuate a lengthy fraud against taxpayer funds.”The charges were the result of an investigation on the part of Special Agents of the United States Veterans Administration, Office of Inspector General, Criminal Investigations Division, under the direction of Jeffrey Hughes, the Veterans Administration Police Department, under the direction of Acting Chief Steven Coville, the United States Department of Labor, Office of Inspector General, under the direction of Acting Special Agent in Charge Cheryl Garcia, and the United States Postal Service, Office of Inspector General, under the direction of Monica Weyler, Special Agent in Charge, Eastern Area Field Office.
The defendant is scheduled to appear in before U.S. Magistrate Judge H. Kenneth Schroeder, Jr., on March 20, 2014, at 10:00 a.m.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Greenup County, Kentucky, Teen Sentenced to 24 Months for Threatening to Kill A Federal Judge and A Federal ProsecutorRead the Press Release
LONDON, Ky. – A Greenup County, Kentucky, teenager was sentenced to 24 months in prison, after he pleaded guilty this week, in U.S. District Court, to threatening to kill a federal judge and a federal prosecutor, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Michael A. Collins, age 19, was sentenced by U.S. District Judge Gregory Van Tatenhove following a change of plea hearing held yesterday in London, Kentucky, during which Collins pleaded guilty to two of three charges in a federal indictment. As part of the plea agreement, the United States agreed to dismiss count three at sentencing.
Specifically, Collins admitted that on December 10, 2012, while a student at the Appalachian Challenge Academy, located in Harlan, Kentucky, he told a residential counselor that upon graduation he would purchase a gun and kill everyone involved in the prosecution and imprisonment of his father, John Collins. The defendant’s father is currently serving an eleven year prison sentence after pleading guilty to possession of child pornography.
Further, Collins admitted to planning the attacks including the number of weapons and amount of ammunition he would need. A mental evaluation of Collins at the Appalachian Regional Healthcare facility found that the defendant represented a significant risk or harm to others.
The defendant’s father, John Collins was prosecuted by the United States Attorney’s Office for the Eastern District of Kentucky in 2011. Yesterday, Collins admitted in court that he threatened to kill Assistant United States Attorney Jason Denny and U.S. District Judge David Bunning in retaliation of their performance while in their official capacity.
This case was prosecuted by Assistant United States Attorney A. Spencer McKiness and was investigated by the United States Marshals Service.
Former Postman Pleads Guilty to Bribery and Stealing MailRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that John Peter Vreeland (40, Land O’Lakes) today pleaded guilty to bribery by a public official and theft of mail by a postal employee. He faces a maximum penalty of twenty years in federal prison, and a $500,000.00 fine. A sentencing date has not yet been set.
Vreeland was charged in an Information on February 11, 2014.
According to the plea agreement, Vreeland was a United States Postal employee and mail carrier who was assigned to the Ybor City Post Office in Tampa, Florida. As a mail carrier, he was a public official who had a duty to receive and deliver the United States mail. From at least as early as May 2011 through December 2011, Vreeland redirected and stole approximately 60 to 70 United States Treasury income tax refund checks from the United States mail, which came into his possession in his capacity as a mail carrier, and were intended to be conveyed by mail.
A co-conspirator, in Tampa, submitted or caused to be submitted to the Internal Revenue Service (IRS), numerous fraudulent income tax returns seeking refund payments. As a result of the scheme, the IRS issued numerous income tax refund checks to various individuals and addresses in Tampa. Some of those addresses were on Vreeland’s postal route. The co-conspirator approached Vreeland and requested that Vreeland remove those tax refund checks from the intended mailing addresses, on Vreeland’s postal route, and to redirect the checks to the co-conspirator, in exchange for money. Vreeland agreed to do so, and the co-conspirator subsequently cashed the checks.
On January 25, 2012, agents interviewed Vreeland and he admitted to being involved in the income tax fraud scheme, and stated that he was first approached by the co-conspirator about the scheme in April 2011. Vreeland advised that he was paid $50.00 per check by the co-conspirator, who advised law enforcement that he received approximately 60 to 70 checks from Vreeland. Further investigation revealed numerous cash deposits into Vreeland’s bank account from May 2011 through December 2011.
This case was investigated by United States Postal Service, Office of the Inspector General. It is being prosecuted by Assistant United States Attorney Amanda C. Kaiser.
Former Needham Investment Adviser Indicted on Fraud ChargesRead the Press Release
BOSTON - A former Merrill Lynch and Smith Barney investment adviser was indicted yesterday in connection with a nearly two-decade scheme to drain clients’ accounts.
Jane E. O'Brien, 61, of Needham, was charged in an eight-count indictment with mail fraud, wire fraud and investment adviser fraud. The indictment charges that between 1995 and 2013, O’Brien defrauded several clients for whom she provided investment advisory services. As part of the scheme, O’Brien misappropriated funds entrusted to her through a variety of means, including persuading clients to withdraw money from their bank and brokerage accounts and give the money to her personally to invest on their behalf. After gaining control of her clients’ money, however, O’Brien made no such investments. Instead, she used the misappropriated client funds for a variety of improper purposes, including paying personal expenses, and paying purported investment returns or repaying personal loans to other clients. Finally, in order both to perpetuate her fraud and conceal it from her clients, O’Brien made false statements and misrepresentations to clients, including making lulling payments to clients and otherwise providing them with false assurances of their financial security.
With respect to one client, the indictment charges that O’Brien caused the client first to empty her Smith Barney brokerage account and give the proceeds to O’Brien, and then to borrow an additional $1 million on her home and give much of that money to O’Brien to invest. With respect to a second client, the indictment charges that O’Brien caused the client to empty her Merrill Lynch brokerage account and give the proceeds to O’Brien to invest in a Hollywood movie called "Crooked Arrows." With respect to a third client, the indictment alleges that O’Brien caused the client to withdraw $190,000 from her bank account and give the proceeds to O’Brien to invest. The indictment alleges that O’Brien made none of the investments she promised.
In December 2012, O’Brien was convicted in a separate matter of securities fraud after pleading guilty to a scheme to defraud yet another client of $240,000 by selling her a security that did not, in fact, exist. In May 2013, U.S. District Judge Nathaniel M. Gorton sentenced O’Brien to 33 months in prison. She is currently serving that sentence.
If convicted of the pending charges, O'Brien faces up to 20 years in prison on each count of mail and wire fraud, a fine of $250,000 or twice the gross gain or loss. If convicted of investment advisor fraud, she faces up to 5 years in prison and a $10,000 fine.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Stephen E. Frank of Ortiz’s Economic Crimes Unit.
The details contained in the Indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former NASA Contractor Sentenced to 60 Months for Illegally Obtaining More Than $4.4 Million Intended for Disadvantaged Small BusinessesRead the Press Release
ALEXANDRIA, Va. – Michael Brian Dunkel, 60, of Merritt Island, Fl., was sentenced today to 60 months in prison, followed by 2 years of supervised release, for fraudulently obtaining more than $4.4 million in government contract payments that should have gone to disadvantaged small businesses. Dunkel also was ordered to pay a $12,500 fine and $2,960,697.37 in forfeiture.
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.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; and Inspector General Paul K. Martin of the National Aeronautics and Space Administration (NASA) made the announcement after sentencing by United States District Judge Gerald Bruce Lee.
Dunkel pleaded guilty on May 23, 2013, to one count of major government fraud. According to court documents, Dunkel learned in 2005 that Keith Hedman, an executive at an Arlington-based security service consulting company referred to as Company A in court records, illegally controlled Company B, another Arlington-based security service consulting company. Company B was a participant in the Small Business Administration (SBA) “Section 8(a)” program, which enables certain small businesses to receive contracts set aside for minority-owned and disadvantaged small businesses. Although Hedman controlled Company B, Company B had obtained its 8(a) status based on the disadvantaged status of Dawn Hamilton, its titular owner.
Dunkel admitted that he agreed to pay Hedman and Company B a 10-15 percent pass-through fee in exchange for Company B allowing Dunkel to fraudulently use its 8(a) status to obtain NASA and other U.S. government contracts. Although Company B was required to perform at least 50 percent of the work on the contracts and had represented it would do so, no Company B employees actually performed any work. Instead, Dunkel and others did 100 percent of the work as independent contractors, but they concealed that fact from the government agencies. In addition, Dunkel submitted fraudulent proposals and invoices to hide their scheme, used a third-party company’s Federal Employer Identification Number to prevent reporting of his contractor income to the IRS, and did not pay any income taxes on the income he received from Company B.
Seven defendants, including Hedman and Hamilton, have previously been sentenced in connection with the government contracting fraud scheme and a related bribery scheme.
This case was investigated by the NASA Office of the Inspector General (OIG), the SBA OIG, the Defense Criminal Investigative Service, the General Services Administration OIG and the Department of Homeland Security OIG. Assistant U.S. Attorneys Chad Golder and Ryan Faulconer, a former Trial Attorney for the Criminal Division’s Fraud Section, prosecuted the case on behalf of the United States.Former Franklin Homebuilder Pleads Guilty to Theft from Employee Benefit PlanRead the Press Release
Custom Homebuilder Used Employee 401(k) Contributions for Personal Use
Nicholas Psillas, 58, of Houston, Texas, formerly of Franklin, Tenn., pleaded guilty today in U.S. District Court to theft from an employee benefit plan, announced David Rivera United States Attorney for the Middle District of Tennessee.
Psillas was indicted in April 2012 and faces up to five years’ in prison, a fine of $250,000, and a term of 3 years of supervised release. He will be sentenced on June 13, 2014.
According to the plea agreement, Psillas was the president and owner of Corinthian Custom Homes (“CCH”), located in Franklin, Tenn. In January 2005 Psillas established a 401(k) plan for CCH employees, of which he was the trustee. Eligible employee participants contributed funds to the plan, which were deducted from their bi-weekly compensation. CCH was responsible for making mandatory “safe harbor” contributions, required by the plan. CCH was also required to remit employee contributions and safe harbor contributions to a financial institution, which was responsible for managing the funds through employee-directed investments.
From approximately March 2006 through October 2007, instead of remitting the contributions as required, Psillas converted to his own use approximately $62,529 in employee contributions and $22,366 in safe harbor contributions. Psillas allowed funds to be withheld from participating employees’ paychecks and then to be deposited into and comingled with the company’s general operating account, which he used for his personal use and the use of CCH.
Psillas’s failure to make the required remittance for the employee and safe harbor contributions resulted in lost earnings of over $12,000.
This case was investigated by the U.S. Department of Labor. Assistant United States Attorney Kathryn Ward Booth represents the government.
Former Drug Task Force Director Admits Stealing Federal DollarsRead the Press Release
COVINGTON, KY - The former executive director of a federally funded northern Kentucky drug task force has admitted he stole money that belonged to the task force.
Timothy George Fegan, 52, pleaded guilty to one count of theft of government money. Fegan, who worked for the Buffalo Trace/Gateway Narcotics Task Force at the time, wrongfully took thousands of dollars from the organization, over an extended period. Fegan acknowledged that he took cash proceeds that Task Force agents had seized during drug investigations and took money that the Task Force kept on hand to perform undercover drug buys.
Between November 2011 and November 2012, the Task Force received approximately $150,000 in federal funding. Fegan admitted that he stole thousands of dollars in Task Force funds during this period. At sentencing, the Court will determine the total amount of money that Fegan stole from the Task Force, during the period from December 31, 2009 to November 2012.
The Buffalo Trace/Gateway Narcotics Task Force was organized by several county and city governments and was responsible for the investigation of drug crimes in various northern and eastern Kentucky counties. The Task Force was funded by federal and state grants and contributions from the county and city governments that formed the Task Force. The Task Force’s operations are based in Maysville, KY., and Fegan worked for the Task Force during this period, including serving as Interim Executive Director from December 31, 2009 through March 2010 and Executive Director from April 2010 until November 2012. The Task Force ceased its operations in early 2013.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Perrye Turner, Special Agent in Charge, FBI, jointly announced the guilty plea.
The investigation was conducted by the FBI and the Kentucky State Police. Assistant U.S. Attorney Andrew T. Boone is prosecuting this case for the U.S. Attorney’s Office on behalf of the federal government.
Sentencing is scheduled for June 19, 2014. The theft of government money offense carries a maximum of 10 years in prison and a maximum fine of $250,000. The sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the applicable federal statutes.
Former Chairman of Woodland Park, N.J., Democratic Committee Sentenced to Two Years in Prison for Bribing IRS OfficialRead the Press Release
CAMDEN, N.J. — The former chairman of the Woodland Park, N.J., Democratic Committee was sentenced today to 24 months in prison for bribing two individuals he thought were IRS officials to eliminate his tax debt, U.S. Attorney Paul J. Fishman announced.
Michael Kazmark, 61, of Woodland Park, previously pleaded guilty before Chief U.S. District Judge Jerome B. Simandle to an information charging him with one count of bribing a federal public official in exchange for official action. Judge Simandle imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Kazmark failed to pay federal income taxes from 1997 through 2005. In 2010, Kazmark owed the IRS $98,046 in unpaid federal income taxes, interest and penalties. On April 18, 2010, Kazmark made an application to the IRS for an offer in compromise, requesting that he pay $48,800 to the IRS in order to settle his entire federal tax debt.
On Oct. 5, 2010, Kazmark paid a $1,000 bribe to an undercover FBI agent and IRS employee, posing as IRS officials, in exchange for their official assistance in transferring his offer in compromise file to one of the officials for acceptance. On Nov. 23, 2010, Kazmark made a $17,500 bribe payment to the individuals, believing it was in exchange for their official assistance in placing his federal tax liability in noncollectible status for two years and agreeing to accept Kazmark’s offer in compromise for the amount of the check that he had already paid to the IRS – $9,760 – if he did not incur any additional federal tax liability for two years.
In addition to the prison term, Judge Simandle sentenced Kazmark to two years of supervised release. As a condition of that release, Kazmark is required to pay his full tax liability to the IRS.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and special agents of the U.S. Treasury Inspector General for Tax Administration, under the direction of Special Agent in Charge Robert Geary, for the investigation leading to today’s sentence.The government is represented by Assistant U.S. Attorney Vikas Khanna of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
14-069
Defense counsel: Miles Feinstein Esq., Clifton, N.J.
Former Central Falls Mayor Pleads Guilty to Soliciting and Accepting A Bribe; Court Vacates Conviction for Accepting GratuitiesRead the Press Release
PROVIDENCE, R.I. – Former Central Falls Mayor Charles D. Moreau pleaded guilty in federal court today to soliciting and accepting a bribe from longtime friend, businessman and political supporter Michael G. Bouthillette. Moreau admitted to the court that he participated in a corruption scheme in which the former mayor accepted goods and services from Mr. Bouthillette in exchange for directing and providing board-up work on more than 160 properties in Central Falls between 2007 and 2009.
Moreau’s November 2012 conviction and sentence for accepting gratuities from Mr. Bouthillette in this matter was vacated by the court today on a defense motion citing a recent First Circuit Court of Appeals ruling in an unrelated case which found that the statute that Moreau pleaded guilty to violating is not applicable to gratuities.
After pleading guilty to soliciting and accepting a bribe, Moreau was sentenced by U.S. District Court Judge John J. McConnell, Jr., to time served on the previous conviction of nearly 12 months in federal prison, to be followed by three years supervised release; 300 hours of community service to the City of Central Falls; and a fine of $25,000. Moreau had previously been sentenced to 24 months in prison. Moreau remains a convicted felon.
United States Attorney Peter F. Neronha, Rhode Island Attorney General Peter F. Kilmartin and Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police announced Moreau’s guilty plea to a charge of accepting a bribe and sentence.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Moreau admitted to the court that beginning in September 2007 he ordered that all vacated homes in Central Falls be boarded up by Michael Bouthillette, a longtime friend and political supporter. Moreau admitted that he circumvented the State requirement that such work go out for competitive bidding by declaring that each vacant home presented as an “emergency” necessitating an immediate board-up.
An investigation conducted by the United States Attorney’s Office, the Rhode Island Attorney General’s Office and the Rhode Island State Police found that from approximately September 2007 to July 2009, Bouthillette boarded up at least 167 homes. Bouthillette submitted an invoice to the City of Central Falls for each board-up, at which time a lien was placed on the subject property for the amount of the invoice. As foreclosed properties were sold and the liens discharged, Central Falls would pay Bouthillette. The scheme allowed Bouthillette to make unreasonable profits amounting to hundreds of thousands of dollars.
At the time of his guilty plea in November 2012, Bouthillette admitted to the court that as a reward to the former mayor for providing him with the board-up work, on three occasions he gave Moreau things of value. Bouthillette admitted that in March 2009, he assisted Moreau in obtaining a furnace for Moreau’s Central Falls residence for which Bouthillette admitted that he contributed at least a portion of the purchase price; Bouthillette admitted that, from March to November of 2009, he provided numerous renovations and repairs to a Lincoln residence owned by Moreau which Moreau never paid for; and Bouthillette admitted to the court that in April 2010, he provided flood remediation work at Moreau’s Lincoln home which Moreau never paid for. Moreau admitted to the court that he accepted each of these gratuities from Bouthillette.Bouthillette, whose conviction and sentence are unaffected by today’s court actions, was sentenced to 3 years of probation, including 2,000 hours of community service to the residents of Central Falls – the equivalent of one year of fulltime employment without pay - and a fine of $5,000. The court also ordered Bouthillette to provide the Rhode Island Foundation with a payment of $160,000 to establish an endowment of charitable funds for the residents of Central Falls for public safety, housing and education programs. In addition, Bouthillette is prohibited from collecting more than $275,000 in liens placed on properties for board-up work he performed for which he yet to be paid. The court ordered that any remaining funds to be collected by Bouthillette are to be provided to the City of Central Falls.
The cases were prosecuted jointly by the government and the state in federal court by Assistant U.S. Attorney Terrence P. Donnelly and Rhode Island Assistant Attorney General J. Patrick Youngs.
Contact: 401-709-5357
[email protected]Former Blackfeet PoKa Project Officials Plead Guilty to Massive Grant Fraud Francis Kay OnstadRead the Press Release
Delyle Shanny Augare
Dorothy May Still Smoking
The United States Attorney's Office announced that former officials of the Blackfeet Tribe's Po'Ka Project, a multi-million dollar federally funded effort to address the needs of troubled youth on the reservation, have entered guilty pleas in federal court in Great Falls. FRANCIS KAY ONSTAD, 61, of Valier, the former Director of the Po'Ka Program, DELYLE SHANNY AUGARE, 58, of Browning, the former Assistant Director of the Po'Ka Program, and DOROTHY MAY STILL SMOKING, 64, of Browning, entered pleas of guilty to conspiracy, embezzlement and fraud before U.S. District Judge Brian Morris on February 28, 2014. Onstad and Augare also entered pleas to charges of income tax evasion. Onstad and Augare face a possible 5 years in prison and a $250,000, for conspiracy to defraud the United States, and income tax evasion. They also face 10 years in prison and $250,000 fine for conspiracy to violate the False Claims Act and theft from an Indian tribal government receiving federal funding. Sentences on the four convictions could be ordered to run consecutively. Still Smoking pled guilty to a single count of conspiracy to violate the False Claims Act. Assistant U.S. Attorney Carl Rostad told the Court that, as part of his agreement with the defendants, his office would be seeking $1,000,000 in restitution from each defendant.
Codefendant Charlotte New Breast entered a guilty plea and was sentenced in 2013. Codefendant Katheryn Elizabeth Sherman has reached a plea agreement with the United States and is scheduled to enter her plea before Judge Morris on Monday, March 3.
In an Offer of Proof, the prosecutor told the Court that the Blackfeet Po'Ka Project was developed to help troubled Native American youth. Po'Ka was funded by a federal grant from 2005 through 2011 by the Substance Abuse and Mental Health Services Administration (SAMHSA) of the Department of Health and Human Services. Beginning in 2005 with a $1,000,000 federal disbursement, the grant ultimately became a $9.3 million program over a six year period (2005-2011).
THE IN-KIND CONTRIBUTION REQUIREMENTAND THE FALSE CLAIMS CONSPIRACY
It was the stated intent and proposal from the Tribe that the Po'Ka Project would ultimately become self-sufficient; a completely tribal program - entirely supported by the Tribe - by the end of the grant period. The grant required that the Tribe provide a certain amount of funding. "A requirement contained in certain legislation, regulations, or administrative policies that a recipient must maintain a specified level of financial effort in the health area for which Federal funds will be provided in order to receive Federal grant funds." Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances (SED), CMHS Child Mental Health Service Initiative Number: 93.104. To achieve the goal of final self-sufficiency, the Tribe was required to provide in-kind matching contributions to continue to secure federal payments with the idea that as federal participation declined, tribal participation would rise to fill the funding void left by the absence of federal funds. It was the intent of the parties and SAMHSA that the Po'Ka Project would survive on its own once federal funding was no longer forthcoming.
An in-kind contribution is a non-cash contribution provided by non-federal third parties in support of the project funded by the grant, and its objectives. Third party in-kind contributions may be in the form of real property, equipment, supplies and other expendable property, and the value of goods and services directly benefitting and specifically identifiable to the project or program.
As noted, a key component of the grant award was the funding arc; the ratio of federal money to in-kind contributions. Only if Po'Ka met the in-kind contribution targets could they receive the maximum amount of federal money from the grant. Consistent with the sustainability objective of the grant, the Tribe's in-kind contribution requirement was the highest in the later years of the grant. The Blackfeet Tribe was required to provide $7.0 million of in-kind contributions from FYs 2009 through 2011. That created an environment where the appearance of substantial in-kind contributions became paramount if the maximum flow of federal money from the grant was going to continue.
However, the in-kind commitment could never be honestly met, so the conspirators began making up facts and documents to try and satisfy SAMHSA and the auditors that the in-kind contributions represented on their reports to SAMHSA were legitimate. They did so by inflating the figures related to in-kind contributions, assigning values to non-existent and illegitimate "contributions," and manufacturing fraudulent invoices and records to support fictional or inflated contributions. The misrepresentations as to in-kind amounts were made in monthly reports to SAMHSA and the documents were generated to placate auditors conducting a required annual audit of the Tribe's operations. These annual audits are required of tribe's accepting federal grant funds to insure that the grant funds are being used for their intended purpose and that the requirements of the contract agreement are being met. If auditors make negative findings, those findings can result in action by the federal agency to rescind the contract, demand repayment, or make an offset, where the government deducts money from future payments.
Several witnesses, whose names were used as in-kind contributors, denied preparing or signing the invoice and denied contributing time or goods to the Po'Ka Project, at least in the amount claimed.
Based on email evidence and the statements of cooperating witnesses, Onstad, Augare, and Still Smoking, along with others, conspired to make the false representations as to the in-kind contributions made to the Po'Ka Project, and then actively managed the creation of false documentation to cover the representations so that the auditors would not question the contributions and the federal money would continue flowing unabated. The false representations were in effect false claims that resulted in the expenditure of federal grant money that would not have been expended had the principals honestly represented the woefully inadequate level of non-federal support.
Auditors with the Office of Inspector General (OIG), U.S. Department of Health and Human Services, have determined that $4.6 million in claims for grant payments paid to the Tribe on the basis of Po'Ka' s in-kind contribution are unsupported, inflated, or completely falsified.
THE EMBEZZLEMENT SCHEME WITH THE NATIONAL EVALUATOR
Onstad and Augare embezzled from the program in a myriad of relatively minor ways - travel fraud, misuse of Po'Ka credit cards, exorbitant claims of overtime, etc. - but the most significant embezzlement came in the agreement they appeared to reach with the grant's national evaluator. Certain federal grants require the participation of a national evaluator; an outside observer whose job is to monitor the progress of the project. Onstad and Augare reached an agreement with the national evaluator whereby they would approve significant payments to the evaluator who would in turn kick back a sizable portion of what was provided to him. Between August 2008 and August 2011, Onstad and Augare approved over $475,000 in Po'Ka grant monies for the national evaluator, then doing business under an alias business name. In turn, between August 2008, and September 2011, the national evaluator transferred $231,550 to the Child Family Advocacy Center (commonly referred to as the Child Family Advocacy Fund or CFAF) bank accounts at the Wells Fargo Bank in Cut Bank, Montana.
Between September 2008 and September 2011, Onstad and Augare withdrew $225,482 from the CFAF accounts. Much of that money went into their personal accounts at Stockman Bank and from those accounts much was spent on gambling and travel.
TAX EVASION WITH REGARD TO 2008 TAX LIABILITY
In 2009, Onstad and Augare both filed federal income tax returns for the calendar year 2008 in which they claimed a certain amount of taxable income based on their salaries from the Po'Ka Program. However, they had also taken significant sums from the CFAF accounts, all of which constituted unreported income. By concealing that income from the Internal Revenue Service, Onstad and Augare paid approximately half of what was owed to the IRS.
The case was pursued by the Federal Bureau of Investigation and the Department of Health and Human Services' Office of Inspector General. The FBI and the IG also received substantial assistance from the Internal Revenue Service's Criminal Investigation Division.
U.S. Attorney Mike Cotter lauded the work of the FBI and the Inspector General's Office in the Po'Ka case as well as the myriad other cases investigated and prosecuted since the Guardians Project was made public in 2013.
Rarely does government produce such an effective anti-corruption team as has been created by the agents of the Guardians Project. Abandoning the traditional model of "You work your case and I'll work mine", these agencies have committed themselves to mutual cooperation. Working closely together-providing each other with time, resources, and expertise-has made these investigators the champions of Indian Country communities eager to rid themselves of corruption and the abuses of trust and power."
Fifth Defendant Sentenced in Interstate Stolen Medical Supply SchemeRead the Press Release
BOSTON – A former employee of an Atlanta-based hospital was sentenced yesterday for conspiring to sell stolen medical supplies valued at more than $1.7 million.
Felicia Duggan, 41, of Georgia, was sentenced by U.S. District Judge Mark L. Wolf to 36 months of probation, with six of those months to be served in home confinement, $1,714,350 in restitution to the hospital, and $33,887 in restitution to the IRS. In August 2013, Duggan pleaded guilty to conspiracy to commit interstate transportation of stolen property and two counts of subscribing false tax returns. Over a two-year period, Duggan stole numerous medical supplies and devices from an Atlanta-based hospital where she was formerly employed. Beginning in March 2008, Duggan conspired with others, including a Boston-based medical supply thief, Corey Gatlin, to sell those stolen medical supplies on the black market.
Duggan was the fifth and final defendant to be sentenced in an investigation into the lucrative black market for stolen medical supplies and devices.
Gatlin, 37, of Georgia, was sentenced in March 2012 by U.S. District Judge William G. Young to 51 months in prison, 12 months supervised release, $3,226,715 in restitution to the three victim hospitals. Gatlin pleaded guilty to a three-count Information charging him with conspiracy and two counts of subscribing false tax returns. In 2004, Gatlin began stealing medical supplies from a hospital in Boston and selling them on the black market. In 2005, he moved to Atlanta and continued to steal, and recruit other employees to steal for him, medical supplies from two victim hospitals in Atlanta. Over the course of six years, Gatlin sold a total of more than $3.2 million in medical supplies that he and others had stolen from the three Boston and Atlanta-based hospitals.David Kelly, 54, of Florida, was sentenced in January 2014 by Judge Wolf to 12 months and 1 day in prison, 36 months of supervised release, $191,285 in restitution to the Boston-based victim hospital, and a $4,000 fine. Kelly pleaded guilty to a one-count Information charging him with sale or receipt of stolen goods. Kelly purchased stolen medical supplies from several individuals, including another defendant, Eric Jones, over a period of five years, worth a total of at least $191,285.
Eric Jones, 42, of Quincy, was sentenced in April 2011 by Judge Young to 12 months and 1 day in prison, 36 months of supervised release, and $1,130,669 in restitution to the Boston-based victim hospital. Jones pleaded guilty to a one-count Information charging him with interstate transportation of stolen property. Jones, a former Boston hospital worker who later became an operator for the Massachusetts Bay Transportation Authority (MBTA), stole, over a period of four years, numerous medical supplies from a supply room at the his former employer. Jones often stole the supplies from the hospital while on a break from his job at the MBTA and while wearing his MBTA uniform. Jones stole over $1.13 million worth of medical supplies from the hospital, which he sold to various individuals, including Kelly.
Tristen Slavin, 33, of Norwood, was sentenced in February 2011 by U.S. District Judge Richard G. Stearns to three years of probation and $238,029 in restitution to a victim hospital based in a suburb of Boston. Slavin pleaded guilty to a one-count Information charging her with interstate transportation of stolen property. Over a period of approximately three years, Slavin stole medical supplies worth at least $238,029 from her then hospital employer, and sold them on the black market.
United States Attorney Carmen M. Ortiz; Mark Dragonetti, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations, New York Field Office; Shelly Binkowski, Acting Inspector in Charge of the U.S. Postal Inspection Service; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement. The cases were prosecuted by Assistant U.S. Attorneys Amanda P.M. Strachan and Jim Arnold of Ortiz’s Health Care Fraud Unit.
Feds Bust Tijuana-based Identity Theft RingRead the Press Release
SAN DIEGO – Two men are charged in indictments unsealed this week with hacking into the computer servers of a major U.S. mortgage broker to steal personal information and use it to siphon funds from the brokerage accounts of thousands of victims.
Jason Ray Bailey and Victor Alejandro Fernandez were charged in a two-count indictment with conspiracy to commit wire fraud and computer hacking. Bailey was arraigned today before U.S. Magistrate Judge Jan Adler; Fernandez was arraigned on Wednesday.
According to charging documents, both men are part of a Tijuana-based conspiracy that hacked the computer servers of a U.S mortgage broker and obtained mortgage applications containing customers’ personal identification information such as names, dates of birth, social security numbers, addresses, assets, tax information and driver’s licenses.
Approximately 4,200 customers had their information stolen between December 2012 and June 2013 and the conspiracy dates back to July 2011, the charging documents say.
Members of the conspiracy used victims’ stolen information to impersonate the mortgage customers, open credit lines in their names, and steal their assets, according to the charging documents. For example, members of the conspiracy identified multiple victims’ brokerage accounts and fraudulently took control of the accounts by first calling the brokerage companies and providing the victims’ personal identification information, and then changing the victims’ passwords and contact information. Once the defendants gained control of the accounts, members of the conspiracy allegedly wired funds from the victims’ brokerage accounts to coconspirators’ U.S. bank accounts in the San Diego and Calexico areas. Several of these wires were over $20,000 and $30,000 each.
Bailey’s detention hearing was scheduled for March 4, 2014 at 3 p.m. and Fernandez’s detention hearing was scheduled for March 6, 2014 at 2:45 p.m. Both defendants are scheduled for a motion hearing and trial setting conference before U.S. District Judge Gonzalo P. Curial on April 11, 2014 at 10:30 a.m.
DEFENDANT Case No. 14CR0277-GPCJason Ray Bailey
Age: 38 Chula Vista, CA Victor Alejandro Fernandez Age: 38 Mammoth Lakes, CA CHARGESCount 1: Conspiracy to Commit Wire Fraud – Title 18, U.S.C., Section 1349
Maximum Penalties: Up to 30 years in prison and $1,000,000 fine.Count 2: Computer Hacking – Title 18, U.S.C., Sections 1030 (a) (4) and (c) (3) (A)
INVESTIGATING AGENCY
Maximum Penalties: Up to five years in prison and $250,000 fineFederal Bureau of Investigation
*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Federal Grand Jury in South Bend Returns IndictmentsRead the Press Release
South Bend, IN—The United States Attorney's Office announced that a Grand Jury sitting in South Bend, Indiana, returned the following Indictments on February 13, 2014:
Frederick Dotson, 39, of Mishawaka, Indiana, was charged in a three count Indictment with one count of distribution of a controlled substance, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of felon in possession of firearms.These charges were filed as the result of an investigation by the Drug Enforcement Administration.This case has been assigned to and will be prosecuted by Assistant United States Attorney Frank E. Schaffer.
Luis Trevino, 34, of South Bend, Indiana, and Javier Trevino, 32, of South Bend, Indiana, were charged in a three count Indictment with one count of possession with intent to distribute a controlled substance, one count of felon in possession of firearm(s), and one count of possession with intent to distribute Marijuana.These charges were filed as the result of an investigation by the Drug Enforcement Administration.This case has been assigned to and will be prosecuted by Assistant United States Attorney Frank E. Schaffer.
Eshar Burks, 26, of South Bend, Indiana, was charged in a two count Indictment with one count of possession with intent to distribute a controlled substance and one count of possession of a firearm in furtherance of a drug trafficking crime.These charges were filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.This case has been assigned to and will be prosecuted by Assistant United States Attorney Frank E. Schaffer.
Timothy B. Heckaman, 51, of Bremen, Indiana, was charged in a one-count Indictment with theft of government money; the unlawful receipt of federal unemployment insurance benefits.Charges were filed as a result of an investigation by the Indiana Department of Workforce Development and the United States Department of Labor – Office of the Inspector General.This case has been assigned to and will be prosecuted by Assistant United States Attorney Barbara Z. Brook.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
Father and Son Sentenced for Bank FraudRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Brad Heard, Sr., aged 57, of Camilla, Georgia, and Brad Heard, Jr., aged 35, of Leesburg, Georgia, were sentenced by U.S. District Court Judge W. Louis Sands on Thursday, February 27, 2014, for bank fraud. Brad Heard, Sr. was sentenced to serve 30 months in federal prison. Brad Heard, Jr. received a sentence of 33 months in prison. They were ordered to pay restitution in the amount of $5 million.Mr. Heard, Sr. and Mr. Heard, Jr. entered guilty pleas to the charges on September 26, 2013. As part of their plea agreements, Mr. Heard, Sr. and Mr. Heard, Jr. admitted that they paid bribes and kickbacks to a banker and his wife, located in Bainbridge, Georgia, to influence and reward the banker for making loans to them. The total amount of loans made by the banker to them was $13,000,000.00.
“The defendants in this case used kickbacks and bribes from loan proceeds from a bank, whose primary purpose is to help farmers, to induce the lending officer to make improper loans. They tried to game the system, and will now find themselves in federal prison for their crimes, ” said U.S. Attorney Michael Moore.
The case was investigated by the Federal Bureau of Investigation, Thomasville and the United States Secret Service, Albany. The case was prosecuted by Assistant United States Attorneys Jim Crane and Leah McEwen.Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney's Office at (478) 621-2603.
Fake War Hero Pleads Guilty to Stealing Government Funds and Making False StatementsRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Walter Clarence Eatman (68, St. Cloud) yesterday pleaded guilty to theft of government funds and making false statements. Eatman faces a maximum penalty of 15 years in federal prison. The sentencing hearing is scheduled for May 16, 2014, at 9:30 a.m., before Senior U.S. District Judge Richard A. Lazarra.
According to court documents, between July 2008 and July 2013, Eatman, a veteran of the United States Marine Corps, applied for and received United States Department of Veterans Affairs compensation benefits based upon fraudulent information that he submitted to the VA. Specifically, on July 8, 2008, Eatman filed an application for compensation benefits based upon post-traumatic stress disorder (PTSD), hearing loss, and tinnitus. He also falsely claimed that he was a Vietnam combat veteran, that he served in Vietnam from August 15, 1965 to August 15, 1967, and that he was awarded a Purple Heart. Eatman subsequently altered his military discharge paperwork to falsely reflect service in Vietnam, receipt of a Purple Heart and a Bronze Star, and submitted the fraudulent paperwork to the VA. In fact, Eatman never served in Vietnam or received a Purple Heart or a Bronze Star. Based upon his false claims and representations, Eatman received approximately $106,040.00 in government money and benefits, including mental health care and medication, to which he was not entitled.
In September 2010, Eatman attempted to obtain an increase in his VA benefits for PTSD by falsely claiming that he was haunted by his combat experiences in Vietnam. Eatman lied about being wounded in combat, and again claimed to have received a Purple Heart. Eatman tricked a VA psychologist into believing that he was a decorated combat veteran suffering from PTSD. Eatman received a letter from the VA psychologist documenting his alleged condition. He then mailed the letter to the VA Regional Office in St. Petersburg, along with a “statement in support of claim” on which Eatman wrote, “Attached please find new additional information supporting medical evidence for my current claim for increased compensation for PTSD and my claim for individual unemployability.”
This case was investigated by United States Department of Veterans Affairs, Office of Inspector General. It is being prosecuted by Assistant United States Attorney Amanda C. Kaiser.
Fairfield Man Sentenced to 4 Years in Prison for Possessing Stolen FirearmsRead the Press Release
Follow @SDILNewsChance W. Young, 29, of Fairfield, Illinois, was sentenced today in United States District Court in Benton to a term of 48 months’ imprisonment for possessing 4 stolen firearms, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. Young was charged with the offense in an indictment returned by a Federal Grand Jury on September 4, 2013, and pled guilty to the charge on November 15th.
Evidence introduced in support of the guilty plea and sentence showed that Young broke into a rural Wayne County residence in late July 2013 and stole a number of items including 3 shotguns and 1 rifle. Two of the guns, which Young subsequently sold, were recovered by law enforcement agents. The other two remain missing.
In addition to the 48 month term of imprisonment, Young was ordered to pay fines and special assessments totaling $350 and was placed on a 2 year term of supervised release to follow his incarceration.
Young has been held without bond since his arrest on the federal charges and was again remanded to the custody of the United States Marshal to await designation to a Federal Bureau of Prisons facility.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and the Wayne County Sheriff’s Department, with the assistance of the Bureau of Alcohol, Tobacco, and Firearms.
The case was prosecuted by Assistant United States Attorney James M. Cutchin.
Ex-Marine Receives 210-Year Federal Prison Sentence for Drugging and Raping Girls in CambodiaRead the Press Release
LOS ANGELES – A retired Marine Corps captain who was convicted of drugging and sexually abusing girls in Cambodia was sentenced today to 210 years in federal prison.
Michael Joseph Pepe, 60, of Oxnard, was convicted by a jury in May 2008 of seven felony counts for traveling to Cambodia to engage in illicit sexual conduct with minors.
Pepe was sentenced by United States District Judge Dale S. Fischer, who also ordered the defendant to pay $247,000 in restitution to his victims.
At today’s sentencing hearing, Judge Fischer said what is essentially a life sentence is appropriate for a defendant who has shown no remorse for his crime. “Monstrous does not begin to capture the horror of the crime or the impact on the victims,” Judge Fischer said.
During the trial, prosecutors presented testimony from six of the seven girls Pepe sexually abused. The girls, who were between the ages of 9 and 13 at the time of the abuse, testified that Pepe drugged, bound, beat and raped them. Several victims testified that Pepe required them to give him sexual massages and perform oral sex on him on a daily basis.
“Predators cannot hide in foreign nations to conceal their deviant sexual desires,” said United States Attorney André Birotte Jr. “Our efforts to coordinate with law enforcement around the world have resulted in the identification and prosecution of Americans who are exploiting the children in other countries. This lengthy sentence should serve as a stern warning to other pedophiles.”
In addition to the victims’ testimony, prosecutors presented corroborating evidence seized by the Cambodian National Police from Pepe’s Phnom Penh residence, including rope and cloth strips used to restrain the victims, Rohypnol and other sedatives, and homemade child pornography. The investigation was led by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
“This sentence should serve as a sobering warning to every sexual predator who thinks they can hide from the law by violating the innocence of children overseas,” said Claude Arnold, special agent in charge of HSI Los Angeles. “This defendant abused and exploited young people in a distant land who had no means to escape and no way to fight back. It’s entirely fitting that Mr. Pepe will spend the rest of his life behind bars, since his victims will likely bear the emotional scars of his abuse for the remainder of theirs.”
The prostitute who acted as Pepe’s broker testified on videotape about bringing young victims to his residence. Pepe paid the broker and the victims’ families for unlimited access to the girls.
“This sentence clearly demonstrates to the Cambodian people that the United States will not tolerate this type of abuse,” said William E. Todd, the United States Ambassador to Cambodia. “This sentence not only signals to the Cambodian victims our commitment to justice, but it will also act as a powerful deterrent for those individuals who are contemplating traveling to Cambodia to engage in illegal sexual activity with minors.”
HSI received substantial assistance in the investigation from the Department of State’s Diplomatic Security Service and the Cambodian National Police.
Pepe was prosecuted under the provisions of the PROTECT Act, which took effect in 2003. The act substantially strengthened federal laws against predatory crimes involving children outside the United States by adding new crimes and increasing sentences.
Release No. 14-027
Doctor Admits Taking Bribes in Test-Referrals Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – A pediatrician with a practice in Staten Island and Brooklyn, N.Y., admitted today he accepted bribes in exchange for test referrals as part of a long-running scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, N.J., its president and numerous associates, New Jersey U.S. Attorney Paul J. Fishman announced.
Demetrios Gabriel, 46, of Brooklyn pleaded guilty today before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with one count of accepting bribes.
Including Gabriel, 24 people – 13 of them physicians– have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies.According to documents filed in this and related cases and statements made in court:
Gabriel admitted he accepted bribes in return for referring patient blood specimens to BLS and was paid more than $4,500 per month. Gabriel received a flat fee of $3,000 per month in cash, plus additional cash based on the number of patient blood samples his pediatric practice referred to BLS each month. In addition, Gabriel received $1,500 per month through credit card payments to a restaurant he owns.The bribery count to which Gabriel pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for July 18, 2014. As part of his guilty plea, Gabriel agreed to forfeit $200,000, representing the bribes he received from BLS.
The investigation has recovered more than $7 million to date through forfeiture.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Thomas O’Donnell; IRS– Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s guilty pleas.
The government is represented by Senior Litigation Counsel Andrew Leven, Assistant U.S. Attorney Joseph Minish, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $520 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
14-070Defense counsel: Joseph Corozzo Esq., New York
Gabriel Information
District Woman Sentenced to Five Years in Prison for 2011 Attack at Northwest Washington Bus Stop-Defendant Chased After Woman, Brandishing A Butcher Knife-Read the Press Release
WASHINGTON – Malika Fateen, 31, of Washington, D.C., has been sentenced to a five-year prison term for an unprovoked attack in which she went after a woman with a butcher knife at a bus stop, U.S. Attorney Ronald C. Machen Jr. announced today.
Fateen was found guilty by a jury in the Superior Court of the District of Columbia in November 2013 of charges of assault with a deadly weapon and carrying a dangerous weapon. She was sentenced on Feb. 27, 2014, by the Honorable William M. Jackson. Upon completion of her prison term, Fateen is to be placed on three years of supervised release.
According to the government’s evidence, on Oct. 17, 2011, at about 7 p.m., Fateen sat down beside the victim, a stranger, on a bench at a bus stop at 14th and Underwood Streets NW. Fateen was dressed in a purple medieval costume, including a cap. The victim had earlier placed a large cardboard box down on the same bench. Fateen verbally threatened the victim and then brandished the large butcher knife, stabbing the box. She then stood up and chased the victim as she ran into the street, with the knife raised above her head and pointed at the woman. The victim flagged down a passing taxicab, and rode to a nearby neighborhood, where she called police.
The case marked Fateen’s third conviction for violent offenses.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case for the Metro Transit Police and the Metropolitan Police Department. He also acknowledged the efforts of those who handled the case for the U.S. Attorney’s Office, including Litigation Technology Specialist Leif Hickling, Paralegal Specialist Todd McClelland, and Assistant U.S. Attorney David M. Rubenstein, who provided assistance at trial. Finally, he expressed appreciation for the work of Assistant U.S. Attorney Scott E. Ray, who prosecuted the case.
14-054District Woman Pleads Guilty to Manslaughter in Death of Infant at Northeast Washington ConventAdmits Killing Child Shortly After Giving BirthRead the Press Release
WASHINGTON – Sosefina Amoa, 26, formerly of Samoa, pled guilty today to a charge of voluntary manslaughter in the death of her infant son, who was born within a week after she moved into a convent in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Amoa pled guilty to the charge in the Superior Court of the District of Columbia. The Honorable Robert E. Morin scheduled sentencing for May 23, 2014.
According to a proffer of facts presented at the plea hearing, Amoa arrived in the United States from Samoa on Oct. 5, 2013. She then entered a program to become a member of the Little Sisters of the Poor, an international congregation of Roman Catholic women who provide worldwide service to the elderly poor. She was considered a “Postulant,” a person who wanted to be admitted into a religious order. Amoa moved into the Little Sisters of the Poor’s convent in Northeast Washington, where she was to reside for five months while she received religious classes, learned doctrine, experienced prayer and community life, and cared for residents.
On Thursday, Oct. 10, 2013, Amoa asked to be excused from her duties and went to her room. The baby was born in Amoa’s room that morning. Amoa cleaned the room in what authorities determined was an attempt to hide the birth of the child.
The following morning, Oct. 11, 2013, Amoa contacted one of the Sisters and took her to her room, where she showed her the baby. The Sister knew that the infant was dead.
Amoa gave conflicting accounts to the Sisters and police about what happened. Ultimately, on Oct. 16, 2013, she told detectives with the Metropolitan Police Department (MPD) that, after she gave birth to the child, the baby fell to the floor. She said that she got on the floor next to the baby, not knowing what to do, and that she was afraid that someone would hear crying and learn of her pregnancy. According to Amoa, she then placed a wool garment over the baby’s nose and mouth and applied pressure with her hand for two to three minutes.
The District of Columbia Office of the Medical Examiner determined that the cause of death was asphyxia. The infant was a fully developed, full-term baby, born alive. There was evidence in the lungs that the baby had cried and had been alive before being asphyxiated. Additionally, there was bruising and scratches to the infant’s nostrils.
In announcing the plea, U.S. Attorney Machen commended the work of the detectives, officers, and others who investigated the case from the Metropolitan Police Department. He also expressed appreciation to the District of Columbia Office of the Medical Examiner and the District of Columbia Department of Forensic Sciences for assistance in the investigation. Finally, he acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Kelly Blakeney, Victim/Witness Advocates Marcia Rinker and Lorraine Chase, and Assistant U.S. Attorney Cynthia G. Wright, who is prosecuting the case.
14-053District Man Sentenced to 50 Years in Prison for Two Carjackings and Other Crimes-Defendant Attacked A Total of Six Victims; Two Were Pistol-Whipped-Read the Press Release
WASHINGTON - Tavon Johnson, 24, of Washington D.C., was sentenced today to a prison term of 50 years on armed carjacking and armed robbery charges involving multiple incidents spread over two separate days, U.S. Attorney Ronald C. Machen Jr. announced.
Johnson was found guilty by a jury in November 2013, following a trial in the Superior Court for the District of Columbia, of two counts of armed carjacking, one count of assault with intent to rob while armed, four counts of armed robbery, one count of aggravated assault while armed and related additional offenses. He was sentenced by the Honorable Robert I. Richter.
According to the government’s evidence, the series of crimes began at about 6:30 p.m. on Feb 26, 2013, when Johnson targeted a young woman parking her car in the 100 block of W Street NW. Wearing a mask, Johnson approached the woman, brandished a firearm, and demanded her car.
Johnson then used the victim’s car as he continued to commit other crimes that night. With the help of an accomplice, and while still masked, Johnson attempted to steal property from a man at about 9 p.m. in the 1700 block of 29th Street SE. In the course of that crime, the victim was pistol-whipped by Johnson and his accomplice before breaking free. Johnson and his accomplice then robbed two people at about 10 p.m. in the 4900 block of Jay Street NE.
Johnson continued his crime spree at about 3 p.m. on March 2, 2013 when he and an accomplice, again wearing masks, targeted two young men packing up a pick-up truck in the 5100 block of Hunt Street NE. When the owner of the truck resisted giving his keys to Johnson and his accomplice, they pistol-whipped the victim, causing him to fall unconscious to the ground. Before leaving the scene in the victim’s truck, Johnson and his accomplice took the victim’s cell phone, while he lay unconscious on the ground. They also took property from the other victim who just witnessed his friend fall to the ground.
Members of the Metropolitan Police Department (MPD) spotted Johnson driving the stolen truck at about 8 that night. Johnson was arrested after he led the police on a high-speed car chase through multiple neighborhoods throughout the city.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Kalisha Johnson-Clark, Litigation Technology Specialist Leif Hickling, and Victim/Witness Advocate Jennifer Clark. Finally, he commended the work of Assistant U.S. Attorneys Crystal Flournoy and Clayton O’Connor, who investigated and tried the case.
14-052Copley Man Charged with Defrauding Investors Out of $1.8 MillionRead the Press Release
A 14-count criminal information was filed charging a Copley man with operating a fraudulent investment scheme which caused investors to lose approximately $1.8 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Anthony Davian, 34, was charged with one count of securities fraud, two counts of mail fraud, four counts of wire fraud, and seven counts of money laundering.
“This defendant took advantage of his clients’ trust to steal from them and live the high life,” Dettelbach said. “We will continue to aggressively pursue cases in which investors are cheated out of their savings.”
The information charges that between July 2008 and July 2013, Davian used his hedge fund, Davian Capital Advisers, LLC, to promote and sell securities to at least 20 investors across several states, resulting in $1.8 million in overall investor loss.
Davian purported to sell securities in the form of shares in the various funds he created and controlled, including Davian Capital, Rubber City Gravity, Rubber City Pure Alpha, Cleveland Precious Metals Fund, and others. Instead, he used the investors’ monies to redeem earlier investors, enrich himself and pay off personal expenses, such as the purchase of an Audi Q7 Prestige, according to the information.
The investigation revealed that Davian cajoled investors’ into giving him hundreds of thousands of dollars by claiming to manage hundreds of millions of dollars to make himself appear more sophisticated than he really was and by falsifying client account statements, according to the information.
This case is being prosecuted by Assistant U.S. Attorneys Christos N. Georgalis, Matthew Cronin and James Morford following an investigation by agents of the United States Secret Service, the Internal Revenue Service and the United States Postal Service.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to the case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cherryville's Former Finance Director Sentenced to Two Years for Embezzling More Than $435,000 from the CityRead the Press Release
CHARLOTTE, N.C. – Cherryville’s former Finance Director, Bonny Verley Alexander, was sentenced today in U.S. District Court for embezzling over $435,000 from the city, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Alexander, 59, pleaded guilty to five counts of program embezzlement for misappropriating city funds over a six year period. U.S. District Judge Robert J. Conrad, Jr. sentenced Alexander to 24 months in prison, followed by two years of supervised release. He also ordered Alexander to pay restitution in the amount of $435,294.17.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Greg McLeod, Director of the North Carolina State Bureau of Investigation (NC SBI) join U.S. Attorney Tompkins in making today’s announcement.
According to the filed documents and facts presented at today’s sentencing hearing, from about August 2005 through her retirement in December 2011, Alexander embezzled at least $435,294 of Cherryville’s funds and used the money to pay for personal expenses. As Cherryville’s Finance Director, Alexander oversaw multiple departments and had access to city funds. Among other things, Alexander was in charge of processing payroll payments to city employees, directing payments for city expenses and issuing checks on behalf of the city. Alexander also had access to Cherryville’s electronic accounting systems and was authorized to make adjustments as needed, court records indicate.
Court documents show that Alexander made weekly payroll payments to herself which were more than 300% of her actual salary, totaling approximately $309,594. Alexander also issued city checks to pay for personal expenses, including shopping and travel expenses, charged on her personal credit card. According to filed documents, after issuing the city checks payable to American Express, Alexander forged on the checks the signature of another Cherryville employee who was the authorized signatory on the account. To conceal the fraud, once the forged checks had cleared and were returned by the bank, Alexander removed them from the city’s records. Alexander issued and forged 26 checks totaling approximately $97,000, to pay off personal charges on her American Express card.
Alexander was ordered to self-report to the Federal Bureau of Prisons to begin serving her sentence upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation into Alexander was handled by the FBI and SBI. The prosecution is handled by Michael Savage, of the U.S. Attorney’s Office in Charlotte.
Charges Allege Philadelphia Woman Was Illegally Receiving Dead Mother's BenefitsRead the Press Release
Nancy Gonzalez, 74, of Philadelphia, PA, was charged today by information with one count of theft of Government funds, and one count of social security fraud, announced United States Attorney Zane D. Memeger. The information alleges that between December 29, 1994 and September 2012, Gonzalez received and converted to her own use survivor's insurance benefits intended for her mother. The benefits checks that Gonzalez’s mother received were directly deposited into an account jointly held by the defendant and the intended benefits recipient. After her mother died, Gonzalez did not report the death, resulting in fraudulent payments of approximately $155,400.33.
If convicted the defendant faces a maximum possible sentence of 15 years in prison, a $500,000 fine, and three years supervised release.
The case was investigated by the Social Security Administration’s Office of the Inspector General and is being prosecuted by Special Assistant United States Attorney Thomas Moshang III.
Click here to view the indictment
An 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, 215-861-8525Car Dealer Pleads Guilty to FraudRead the Press Release
HOUSTON – George Baumanis, 59, of Houston, has pleaded guilty to conspiracy to transport stolen property in interstate commerce, announced United States Attorney Kenneth Magidson.
Baumanis operated a car dealership called Primus Northwest located at 10600 West Road in Houston. He would browse Internet sites seeking for cars being sold by owners and travel around the country to purchase them.
Owners were persuaded to sell by promising to pay the balance of the note or lease on the cars. In the presence of the owners, checks for payment of the loan or lease in full were mailed and the cars would then be transported to Primus Northwest in Houston where the dealership would attempt to sell them. However, the checks were executed by Primus Northwest but without sufficient funds in the account. The lien holders were never repaid.
In one instance, a victim from Michigan leased a 2010 Volvo S80 from U.S. Bank and later sold the vehicle to Primus Northwest based on the promise to pay off that lease. U.S. Bank received two fraudulent checks from Primus Northwest totaling $22,187.35. No payoff was ever received by U.S. Bank and Baumanis later fraudulently sold the vehicle in Texas.
Dennis Kane was allegedly a partner of Baumanis in this scheme. The case against him is pending and he is presumed innocent unless and until found guilty through due process of law.
U.S. District Judge Ewing Werlein Jr., who accepted the guilty plea, has set sentencing for May 23, 2014, at 10:00 a.m. At that time, he faces up to five years in federal prison and a possible $250,000 fine. He was permitted to remain on bond pending that hearing. d to remain free on bail pending sentencing.
The case was investigated by the U.S. Postal Inspection Service and the Houston Police Department. Assistant United States Attorney Jay Hileman is prosecuting.
California Couple Sentenced to Federal Prison for Credit Card Fraud and Identity Theft CrimesRead the Press Release
ATLANTA - Elton Lee Flenaugh and Deje D. Silas have been sentenced to federal prison for credit card fraud and identity theft crimes.
“Identity theft and credit card fraud exacts both a financial and emotional toll on its victims, harming credit histories, bank accounts, and emotional well-being,” said United States Attorney Sally Quillian Yates. “Undoing the damage can be agonizing for individual victims. Financial institutions spend untold resources investigating, detecting, and deterring such schemes. These defendants callously ignored the consequences of their scheme, and will now serve justly deserved terms in federal prison.”
“This case validates the impact of identity theft on innocent victims and our communities. The United States Secret Service will continue to collaborate with its law enforcement partners and prosecutors to ensure those nefarious individuals that commit these crimes are put behind bars,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
According to United States Attorney Yates, the charges and other information presented in court: Flenaugh and Silas had a romantic relationship dating back several years. On February 9, 2013, Flenaugh and Silas were scheduled to fly from Atlanta to Los Angeles. During the pre-flight security screening process in Atlanta, alert TSA security officers noticed a suspicious package in Flenaugh’s carry-on bag and, upon further inspection, found nearly 100 fraudulent credit cards secreted inside a double-sealed manila envelope, which had been hidden inside an empty, foil-lined Lay’s potato chip bag. Thirty-three of the cards were embossed in Silas’ name, 28 were embossed in three different aliases used by Flenaugh, and 21 were blank and had not yet been embossed. Subsequent searches by the Atlanta Police Department revealed fraudulent driver’s licenses inside the protective case attached to Silas’ cell phone and underneath the removable insole of one of Flenaugh’s shoes in the carry-on bag.
Additional investigation revealed fraudulent credit cards, licenses, and stolen credit card account and identity information of hundreds of people. These were found in personal items seized from and during searches of Google e-mail accounts controlled by Flenaugh and Silas, an Apple iPad seized from them at the airport, and a 2007 BMW M6 automobile registered to one of Flenaugh’s aliases.
The investigation showed that the scheme began at least by early 2012 and continued until Flenaugh and Silas’ arrests in February 2013. The scheme involved obtaining credit and debit card account information of hundreds of people, which were then used to manufacture fraudulent credit cards. The cards were made to appear as if they had been issued by major financial institutions such as Chase Bank, U.S. Bank, and Capital One. The defendants also obtained personal identifying information—including Social Security numbers, dates of birth, and credit information—of dozens of people, which were used to create fraudulent driver’s licenses to use with the fraudulent credit cards. The fraudulent credit cards were then embossed with the names used on the fraudulent driver’s licenses. The issuing banks and the names embossed on the fraudulent credit cards were merely a front to make them appear legitimate. The magnetic stripes on those cards were encoded with the actual debit and credit card account information of account holders at dozens of financial institutions throughout the country, but primarily at credit unions located in California, Florida, Georgia, Oregon, and Washington.In at least three instances identified to date, Flenaugh and Silas opened fraudulent credit card accounts in one of the stolen identities and made thousands of dollars in unauthorized charges.
Elton Lee Flenaugh, a/k/a Josh Ford, a/k/a Ali Waheed, 34, of Richmond, Calif., was sentenced today to nine years, three months in federal prison, to be followed by four years of supervised release. Flenaugh was convicted on these charges on December 4, 2013, after he pleaded guilty. At sentencing, the court held Flenaugh responsible for using the credit and debit card account information and identity information of over 100 different victims to make counterfeit credit cards and driver’s licenses, and for losses between $200,000 and $400,000.In a separate case, Deje D. Silas, 22, of San Francisco, Calif., was sentenced on August 28, 2013 to three years, 5 months in federal prison, to be followed by three years of supervised release. Silas was convicted on these charges on May 21, 2013, after she pleaded guilty.
This case was investigated by the United States Secret Service. Valuable assistance was provided by the Hartsfield-Jackson Atlanta International Airport division of the Atlanta Police Department, the Office of the Chief Counsel of the Transportation Security Administration, the city of Atlanta Department of Aviation, the Miami-Dade State’s Attorney’s Office, the San Francisco Field Office of the Federal Bureau of Investigation, the Investigations Division of the California Department of Motor Vehicles, and the Oakland Police Department.
Assistant United States Attorney David M. Chaiken prosecuted the case.
Anyone who believes they may be the victim of identity theft is strongly encouraged to request and review their credit reports from the three nationwide consumer credit reporting companies; Equifax, Experion, and Trans Union, to be sure everything on the reports are authorized, and that they request a fraud alert from the companies. It is also suggested that they immediately close any accounts that have been compromised or opened fraudulently. Those who do online banking or manage other accounts online, check these accounts regularly and be sure passwords are strong. To report identity theft, contact the Federal Trade Commission at: http://www.consumer.ftc.gov/articles/0277-create-identity-theft-report or the FTC Identity Theft Hotline at 1-877-438-4338 or TTY 1-866-653-4261.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Broward County Resident Pleads Guilty in Treasury Check Cashing and Stolen Identity SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, U.S. Secret Service, Miami Field Office, announce that Regina James, 38, of Fort Lauderdale, pled guilty for her participation in a check cashing and stolen identity scheme. Sentencing is scheduled for May 16, 2014 at 4:00 p.m. before U.S. District Judge Marra.
Specifically, James pled guilty to one count of theft of public money, in violation of 18 U.S.C. § 641, and one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A(a)(1). At sentencing, James faces a maximum term of ten years in prison for the theft of public money charge, and a mandatory term of two years in prison for the aggravated identity theft charge, to run consecutively to any other sentence.
According to court documents, Wilson and Kate Lau owned a check cashing store called American Quick Cash (AQC). The Laus were cashing fraudulent tax refund checks arising out of fraudulent tax refund filings containing stolen identities. James was one of the seven “middle men” who brought the fraudulently obtained U.S. Treasury checks to AQC. James also brought fake Florida driver’s licenses in the names of the individuals on the checks that she cashed at AQC. James was charged 15% to cash the fraudulent checks, but Lau subsequently increased the fee to 50%. James received the stolen checks from another person and gave 40% of the amount of the check to that individual, and kept 10% for herself.
From January 2010 through June 2011, the total amount of U.S. Treasury checks cashed by James at AQC is approximately $650,617. The number of victims involved is greater than 50, but fewer than 250.
Mr. Ferrer commended the investigative efforts of IRS-CI and the U.S. Secret Service. The case is being prosecuted by Assistant U.S. Attorney Alicia E. Shick.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Bank Robber SentencedRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Recco Roger Collins, aged 45, of Albany, Georgia, was sentenced on Thursday, February 27, 2014, to serve nearly eighteen years (210 months) in Federal prison for armed bank robbery by the Honorable W. Louis Sands, United States District Court Judge, in Albany, Georgia. Co-defendants Tony Key and Anthony Facon were sentenced earlier for their part in the robbery. The Court also ordered Mr. Collins to pay restitution to repay the money stolen and repay costs associated with vehicle repair for vehicles stolen or damaged while apprehending the trio and medical costs of persons affected by their crimes.
Mr. Collins entered a plea of guilty to the charge on November 4, 2013. As a part of his plea agreement, Mr. Collins admitted that on February 28, 2013, he drove a get-away vehicle during the robbery of PeoplesSouth Bank located on Tennille Avenue in Donalsonville, Georgia.Mr. Collins also admitted to robbing the Trust Bank located at 607 W. 4th Street in Adel Georgia of approximately $9,279 and preparing to rob the Citizen’s Bank in Ray City, Georgia on February 7, 2013.
U.S. Attorney Michael Moore said, “Mr. Collins provided the get-away ride for two violent criminals and, while doing so, he put human lives and property in jeopardy. He has well-earned his lengthy stay in federal prison.”
Ricky Maxwell, Acting Special Agent-In-Charge, FBI Atlanta Field Office, stated: “While we are thankful that these dangerous individuals are no longer a threat to the public, we cannot underestimate the impact of what their violence did to the bank tellers, customers and community. They may not have physically harmed anyone, but the psychological harm that these victims have undergone because of these subjects is immeasurable. We will continue to pursue these violent offenders in cooperation and collaboration with our law enforcement partners to protect the citizens of our community”.
The case was investigated by the Federal Bureau of Investigation, Georgia Bureau of Investigation, Donalsonville Police Department, Miller County Sheriff’s Office and Seminole County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Leah E. McEwen.
Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney's Office at (478) 621-2603.
Baltimore Heroin Trafficker Exiled to 11 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Christopher Thornton, age 26, of Baltimore, today to 11 years in prison, followed by four years of supervised release, for conspiracy to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to his plea agreement, from July to December 2012, Thornton distributed heroin in Baltimore City; regularly collected cash drug proceeds from other members of the conspiracy; and communicated with the leaders of the conspiracy about the conspiracy’s operations. Federal agents used wire intercepts of cellular telephones of Thornton’s associates to record Thornton discussing his drug activities with other members of the conspiracy.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore Police Department and Baltimore City State’s Attorney's Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Michael C. Hanlon and Special Assistant United States Attorney H. Brandis Marsh, Jr., a cross-designated Baltimore City Assistant State’s Attorney assigned to Exile cases, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Arthur Schlecht Convicted in Precious Metals Investment SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Ronald J. Verrochio, Postal Inspector in Charge, United States Postal Inspection Service (USPIS), and Drew J. Breakspear, Commissioner, Florida Office of Financial Regulation, announce yesterday’s conviction of Arthur John Schlecht, 54, of Boone, North Carolina, and formerly of Miami-Dade County, for conspiracy to commit mail and wire fraud, and for wire fraud. Schlecht was convicted by a jury in Miami following a five-week trial.
The indictment charged Schlecht and others with conspiracy to commit fraud through their operation of three corporations, Global Bullion Trading Group, Inc., WJS Funding, Inc., d/b/a Capital Asset Management, and Certified, Inc., d/b/a Certified Clearing. These businesses claimed to be investment brokerage firms offering investors the opportunity to invest in gold, silver, platinum and palladium bullion, which would be stored for the investors in depository vaults. The indictment charged that the companies did not actually purchase physical metal in the name of their investors. The indictment also charged that Schlecht tried to hide his control of Global Bullion Trading Group, Inc., and Capital Asset Management, and that Schlecht used millions of dollars of company funds for his own benefit, including direct payments to family members, and for cars, maid services, home décor, landscaping, remodeling, interior furnishings, and jewelry.
Evidence at trial showed that hundreds of victims lost in excess of $25 million. Co-defendants Frederick B. Gomer, Carlos Rodriguez, Ricardo Padron and Robert Roca, who also worked at the businesses, pled guilty prior to trial.
Schlecht faces a statutory maximum sentence of up to 40 years in prison, plus fines and restitution. Schlecht will be sentenced in May by U.S. Judge Richard W. Goldberg.
Mr. Ferrer commended the investigative efforts of the FBI, USPIS, and the Florida Office of Financial Regulation. This case is being prosecuted by Senior Litigation Counsel Caroline Heck Miller and Assistant U.S. Attorney Michael R. Sherwin.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Thursday 27 February 2014
Zuni Pueblo Man Pleads Guilty to Brandishing a Firearm During a Crime of ViolenceRead the Press Release
ALBUQUERQUE – Shannon D. Concho, 35, a member of Zuni Pueblo, pleaded guilty this morning to brandishing a firearm during a crime of violence, announced Acting U.S. Attorney Steven C. Yarbrough and Chief Timothy Trimble of the Zuni Pueblo Tribal Police Department.
Concho was arrested in Oct. 2012, on an indictment charging him with three counts of assault with a dangerous weapon (a shotgun), being a felon in possession of a firearm, and brandishing a firearm during a crime of violence. According to the indictment, Concho committed all five offenses on Oct. 2, 2011, within Zuni Pueblo. At the time, Concho was prohibited from possessing firearms or ammunition because he previously had been convicted of two felonies, involuntary manslaughter and aggravated assault.
Today, Concho pleaded guilty to Count 5 of the indictment charging him with brandishing a firearm during a crime of violence. In his plea agreement, Concho admitted that on Oct. 2, 2011, he brandished a 12 gauge shotgun during and in furtherance of a crime of violence. Concho admitted assaulting two men by pointing the shotgun at one man’s head and pushing the muzzle of the shotgun into the second man.
Concho has been in federal custody since his arrest on Oct. 24, 2012, and remains detained pending his sentencing hearing, which has yet to be scheduled. Under the terms of his plea agreement, Concho will be sentenced to seven years in federal prison followed by a term of supervised release to be determined by the court.
This case was investigated by the Zuni Pueblo Tribal Police Department and is being prosecuted by Assistant U.S. Attorney Jacob A. Wishard.
Wounded Knee Men Charged with Theft of A Cow and CalfRead the Press Release
United States Attorney Brendan V. Johnson announced that two Wounded Knee, South Dakota, men have been indicted by a federal grand jury for Larceny.
Richard Daniel Ecoffey, a/k/a George Ecoffey, age 50, and Eugene Hunts Horses, Jr., age 43, were indicted on February 19, 2014. They appeared before U.S. Magistrate Judge Veronica L. Duffy on February 25, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Ecoffey and Hunts Horses stealing a cow and calf from another man on February 9, 2013, near Manderson.
The charges are merely accusations and Ecoffey and Hunts Horses are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Ecoffey and Hunts Horses were released on bond pending trial. A trial date has been set for May 6, 2014.
Willard Man Indicted for $1.9 Million Conspiracy to Distribute K2 at Bilbo's Earth StoreRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Willard, Mo., man has been indicted by a federal grand jury for his role in a $1.9 million conspiracy to distribute synthetic drugs through his business in Battlefield, Mo.
John Waddell, 49, of Willard, was charged in a six-count indictment returned by a federal grand jury in Springfield, Mo., on Tuesday, Feb. 25, 2014. Waddell and his wife owned and operated Bilbo’s Earth Store at 4032 W. Lark, Suite #F in Battlefield under their company Johrri Enterprises, LLC.
The federal indictment alleges that Waddell participated in a conspiracy to distribute a controlled substance analogue in Greene County, Mo., from April 1, 2011, to Sept. 25, 2013. Waddell is also charged with maintaining a place in Battlefield, Mo., for the purpose of distributing a controlled substance analogue and with possessing several firearms in furtherance of the drug-trafficking conspiracy. Waddell was allegedly in possession of a Springfield Armory .40-caliber pistol, a Bersa 9mm pistol and a Springfield Armory 9mm pistol.
The indictment also charges Waddell with one count of money laundering and two counts of structuring a currency transaction to evade reporting requirements.
The indictment also contains forfeiture allegations, which would require Waddell to forfeit to the government any property obtained from the proceeds of the alleged violations or any property used to commit the alleged violations, including $1,928,204 (which represents the amount involved in the conspiracy); Waddell’s residential property in Willard; Waddell’s commercial property in Springfield; 83 electric, acoustic and bass guitars; a five-piece drum set; dozens of speakers and amplifiers; several guitar cases; three pistols; $32,271 seized from Waddell’s residence; a certificate of deposit in the amount of $100,000; $216,535 in the bank accounts of Johrri Enterprises, LLC, dba Bilbo's Earth Store, and $1,323 in Waddell’s bank account.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Ami Harshad Miller and Assistant U.S. Attorney Cindy Hyde. It was investigated by the Drug Enforcement Administration, COMET (the Combined Ozarks Multi-Jurisdictional Enforcement Team), the Food and Drug Administration, IRS-Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missouri State Highway Patrol, and the Greene County, Mo., Sheriff’s Department.
Wheeling Man Convicted on Drug and Gun ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WV – A Wheeling man who was selling cocaine and heroin from a local hotel has been convicted on drug and gun charges and now faces a minimum of five years in federal prison.
United States Attorney William J. Ihlenfeld, II, announced that DALE A. DAVIS, also
known as “Big Loc”, age 36, of Wheeling, entered a plea of guilty to “Possession with Intent to Distribute Crack Cocaine” and “Possession of a Firearm in Furtherance of a Drug Trafficking Offense.” In August of 2013 the Ohio Valley Drug Task Force utilized an informant to make controlled purchases of cocaine and heroin from DAVIS at the Knights Inn (formerly the Wheeling Inn) on Main Street in Wheeling. After the controlled purchases were made the Task Force obtained a search warrant for the hotel room and DAVIS was found to have a 9mm pistol, cocaine, heroin, and approximately $2,400 in cash.DAVIS is in custody pending sentencing and faces at least 5 years in prison and up to 20 years. The case was prosecuted by Ihlenfeld and was heard by Judge Frederick P. Stamp, Jr.
In another matter before Judge Stamp, DANIEL BANKS, age 37, of Wheeling, was sentenced to 46 months in prison and six years of supervised release for “Distribution of Crack Cocaine within 1,000 Feet of a Protected Location” as well as violations of supervised release. BANKS was also ordered to forfeit $2,565 in U.S. currency which constituted proceeds from the illegal drug activity. BANKS was remanded to the custody of the United States Marshal pending designation to a Federal institution.This case was prosecuted by Assistant U.S. Attorney David J. Perri and investigated by the Ohio Valley Drug Task Force.
REBECCA L. LAMP, age 50, of New Cumberland, West Virginia, entered a plea of guilty before Judge Stamp to “Acquiring or Obtaining a Controlled Substance by Misrepresentation, Fraud, Forgery, Deception or Subterfuge.” LAMP, who is free on bond pending sentencing, faces up to 4 years in prison. This case was prosecuted by Assistant U.S. Attorney Stephen L. Vogrin and was investigated by the West Virginia State Police-Bureau of Criminal Investigations.
STEDMUND CREECH, age 23, of Grafton, Ohio, entered a plea of guilty to “Felon in Possession of a Firearm” before U.S. Magistrate Judge James E. Seibert. CREECH, who is in custody pending sentencing, faces up to 10 years in prison. This case was prosecuted by Assistant U.S. Attorney Randolph J. Bernard and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Virginia Man Charged in Identity Theft RingRead the Press Release
Michael Bullock, 29, of Highland Springs, Virginia was charged today by Indictment with one count of bank fraud and one count of aggravated identity theft, announced United States Attorney Zane David Memeger.
The indictment alleges that Bullock entered TD Bank branches and used false driver’s licenses and posed as the true account holders of TD Bank accounts in order with withdraw money from and cash fraudulent checks against the accounts.
Bullock faces a maximum sentence of 32 years’ in prison, including a two year mandatory term, a five year period of supervised release, a $1,250,000 fine, and a $200 special assessment.
The case was investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guiltyUNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525United States Attorney Files Suit to Forfeit Ancient Italian Sarcophagus LidRead the Press Release
A civil complaint was filed today in federal court in the Eastern District of New York seeking forfeiture of an ancient Roman marble sarcophagus lid featuring a high-relief sculpture of a sleeping woman. According to Italian authorities, the piece matches photographs found in the files of convicted antiquities dealer Gianfranco Becchina. As alleged in the complaint, the antiquity is the property of Italy and is therefore forfeitable as stolen property that was unlawfully introduced into the United States.
The filing of the complaint was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and James T. Hayes, Jr., Special Agent in Charge, U.S. Department of Homeland Security, Homeland Security Investigations (“HSI”), New York.
Becchina, an Italian citizen, operated an antiquities gallery in Basel, Switzerland. In February 2011, he was convicted in an Italian court of illicitly dealing in antiquities. During the investigation that led to his conviction, Swiss and Italian authorities searched Becchina’s Swiss gallery and warehouse and seized Italian archeological artifacts, commercial documents and photographs of thousands of artifacts that Becchina had sold. Among the documents in Becchina’s archive were photographs, commercial records and customs paperwork pertaining to the marble sarcophagus lid. According to these records, Becchina purchased the marble sarcophagus lid in Italy and shipped it to his gallery in Switzerland in 1981. Thirty years later, the marble sarcophagus lid, now restored, reappeared at a public exhibition in New York. On February 20, 2014, HSI agents located the antiquity in a storage facility in Long Island City, New York.
“Whether looted cultural property enters our ports today or decades ago, it is our responsibility to see that it is returned to its rightful owners, in this case, the Italian people,” stated United States Attorney Lynch. “We will continue to use all legal tools available to us to seize, forfeit and repatriate stolen cultural property.” Ms. Lynch thanked the Italian Ministry of Cultural Heritage and the Italian Carabinieri Protection of Cultural Heritage Command for their assistance.
“The forfeiture of this sarcophagus lid brings us one step closer to returning this stolen treasure to its rightful owner, the Italian people,” said James T. Hayes Jr. special agent in charge of HSI in New York. “HSI is committed to intercepting and recovering stolen cultural artifacts and repatriating them to their rightful owners.”
The government’s case is being handled by Assistant United States Attorney Karin Orenstein.
E.D.N.Y. Docket No. 14-CV-1318
Sleeping.Beauty.Exhibits A-B
U.K. Computer Hacker Charged in Manhattan Federal Court with Hacking into Federal Reserve Computer SystemRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an indictment charging LAURI LOVE, a citizen of the United Kingdom, with computer hacking and aggravated identity theft. The charges stem from LOVE’s efforts in late 2012 and early 2013 to secretly infiltrate computer servers belonging to the Federal Reserve Bank (the “Federal Reserve”), remove non-public information from those servers, and publicly disclose that information by posting it on certain websites.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Lauri Love is a sophisticated hacker who broke into Federal Reserve computers, stole sensitive personal information, and made it widely available, leaving people vulnerable to malicious use of that information. We place a high priority on the investigation and prosecution of hackers who intrude into our infrastructure and threaten the personal security of our citizens.”
Assistant Director-in-Charge George Venizelos said: “As alleged in the indictment, Love was part of a sophisticated network of criminals involved in computer intrusions. Fortunately, Love underestimated the level of sophistication and dedication maintained by the FBI Cyber Division to vigorously investigate and identify Love’s criminal hacking and identity theft. Cyber crime knows no boundaries and justice will not stop at international borders. The FBI is committed to working with private and public entities to stop computer intrusions and prevent hackers from harming victim companies and individuals. We thank the Federal Reserve Bank of New York for its assistance in this investigation.”
According to the allegations in the Indictment unsealed today in Manhattan federal court:
LOVE is a sophisticated computer hacker who resides in the United Kingdom. From October 2012 through February 2013, LOVE worked with other computer hackers around the world to secretly gain access to the Federal Reserve’s computer servers in order to steal and then publicly disseminate confidential information found on those servers, including personal identification information of people using the Federal Reserve network.
LOVE and the other computer hackers communicated with each other by logging onto a restricted online “chat room” (the “Chat Room”) and sending messages to each other. As reflected in the Chat Room messages, in the months prior to the hack of the Federal Reserve servers, LOVE and the other hackers in the Chat Room were searching the Internet for computer servers that were running a particular software program (the “Program”). LOVE and the other hackers were aware that the Program contained a vulnerability that they could use to gain unauthorized access to those servers.
In October 2012, LOVE determined that certain of the servers that were running the Program belonged to the Federal Reserve. Thereafter, LOVE used a particular hacking method called a sequel injection to exploit the vulnerability in the Program and gain unauthorized access to certain Federal Reserve servers, including servers associated with the Federal Reserve Bank of New York. LOVE used his unauthorized access to locate and steal certain confidential information residing on the Federal Reserve servers, including the names, e-mail addresses, and phone numbers of users of the Federal Reserve computer system. LOVE then disseminated that information publicly by posting the information to a website that previously had been hacked and that he controlled.
LOVE, of Suffolk, England, has been charged with one count of computer hacking, which carries a maximum term of 10 years in prison, and one count of aggravated identity theft, which carries an additional sentence of two years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding investigative efforts of the FBI. He also thanked the Federal Reserve Bank of New York for its assistance in this investigation.
The case is being handled by the Office’s Complex Frauds Unit.
The charges in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Lauri Love Indictment
Two Plead Guilty to Wire and Mail Fraud in A Debt Elimination SchemeRead the Press Release
Montgomery, Alabama - Bradford Lamar Daley, of Phenix City, Alabama, and Terril Yarham, of Missouri, pled guilty before United States Magistrate Judge Charles S. Coody, for engaging in a conspiracy to commit wire fraud, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama. Daley also pled guilty to money laundering and tax fraud.
According to court documents, between 2005 and 2011, Daley and Yarham solicited individuals who were heavily burdened by debt to pay them between $2500 and $5000 for debt elimination services. In exchange for the payment, Yarham promised to assume and eliminate the victims’ unsecured debt, including credit card debt, signature loans, business loans, student loans and personal loans. These debts were not eliminated as promised. During the course of this conspiracy, records show that Daley and Yarham profited over $5 million dollars. As part of the plea agreement, Daley agreed to forfeit to the United States over $5 million dollars, a beach house in Florida, almost 40 acres of land in Georgia, vehicles, and two UPS stores located in Georgia.
“Since our founding in 1772, postal inspectors have sought to ensure the U.S. Mail is not used for illegal gain,” said Robert Wemyss, United States Postal Inspector in Charge, Houston Division. “When criminals use the mail to commit fraud, postal inspectors will not hesitate to ensure they are brought to justice.”
"Daley exploited unsuspecting individuals by perpetrating a scheme that was based entirely on lies," stated IRS Criminal Investigation, Special Agent in Charge, Veronica F. Hyman-Pillot. "In addition, Mr. Daley concealed the income and failed to pay taxes on the income. IRS Criminal Investigation is committed to addressing financial fraud at every level and is proud to have worked with our law enforcement partners in this case."
“I want to thank the U.S. Postal Inspection Service and the IRS for their tireless work on this case,” stated George L. Beck, U.S. Attorney. “This district is lucky to have such capable agencies protecting the victims of financial crimes. What these defendants did was deplorable and their pleading guilty is justice served.”
A sentencing date has not been set, but Daley and Yarham face a maximum sentence of 20 years in prison, five years supervised release and a fine of $250,000.
The case was investigated by the Inspectors at the United States Postal Inspection Service and the Special Agents of the IRS - Criminal Investigation. U.S. Attorney George L. Beck, Jr. and Assistant U.S. Attorney Donald Valeska are prosecuting the case.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Two More Correctional Officers Plead Guilty in Baltimore Jail Racketeering ConspiracyRead the Press Release
Smuggled Drugs into Baltimore Correctional Facility and One of the Officers Had Sex With BGF Inmates; 11 Correctional Officers Have Pleaded Guilty to Date
Baltimore, Maryland – Correctional officer Ebonee Braswell, age 27, of Baltimore, pleaded guilty today to participating in a racketeering conspiracy arising from the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC). Another correctional officer, Danielle Forrest, age 27 pleaded guilty on February 25th to the conspiracy.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Secretary Gregg Hershberger of the Maryland Department of Public Safety and Correctional Services; Baltimore Police Commissioner Anthony W. Batts; and Baltimore City State’s Attorney Gregg L. Bernstein.This case was developed as a result of the efforts of the Maryland Prison Task Force, formed in 2011 with the Maryland Department of Public Safety and Correctional Services, local, state and federal law enforcement agencies, and prosecutors. The Task Force has met regularly for over three years, generating recommendations to reform prison procedures and producing leads that have been pursued by state, local and federal criminal investigators. The investigation is continuing.
According to court documents, BGF has been the dominant gang at the BCDC, and in several connected facilities, including the Baltimore Central Booking Intake Center (BCBIC), the Women’s Detention Center, which houses many men, and in the Jail Industries Building.
Braswell, a correctional officer at BCDC, admitted that in 2012 and 2013, she helped smuggle contraband, including drugs such as Percocet, into BCDC for further distribution by BGF members. Forrest, a correctional officer at BCDC, admitted that she worked with a BGF leader in 2012 to smuggle contraband, including marijuana, Percocet and tobacco into BCDC. She was familiar with the drug activities of other correctional officers, including Braswell. At the direction of BGF, Forrest met outside suppliers to obtain the contraband, and managed payments for drugs using her Green Dot account. Forrest had sexual relations inside BCDC with two BGF inmates.
The defendants face a maximum sentence of 20 years in prison for the racketeering conspiracy. U.S. District Judge Ellen L. Hollander scheduled sentencing for Braswell on June 27, 2014, and for Forrest on June 16, 2014.
Eleven correctional officers have pleaded guilty to their roles in the conspiracy. Two of these correctional officers, Taryn Kirkland, age 23, and Adrena Rice, age 26, both of Baltimore, were sentenced in January 2014, each to 42 months in prison and officer Jasmine Thornton, a/k/a J.T., age 27, of Glen Burnie, Maryland, was sentenced to 32 months in prison on February 5, 2014.
BGF leader Tavon White, age 37, BGF commander Steven Loney, age 25, Kenneth Parham, age 24, a BGF member, and Jermaine McFadden, age 25, an associate of BGF, also pleaded guilty to the racketeering enterprise. Parham was sentenced on February 24, 2014 to151 months in prison and Loney was sentenced on January 14, 2014 to nine years in prison. Tavon White and Jermaine McFadden are awaiting sentencing.
U.S. Attorney Rosenstein recognized the efforts of the other members of the Maryland Prison Task Force, including: Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Chief Mark A. Magaw of the Prince George’s County Police Department; United States Marshal Johnny Hughes; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Tom Carr, Director of the Washington-Baltimore High Intensity Drug Trafficking Area; and Dave Engel, Executive Director of the Maryland Coordination and Analysis Center.
United States Attorney Rod J. Rosenstein praised the FBI, Maryland Department of Public Safety and Correctional Services, Baltimore Police Department, and Maryland Prison Task Force, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Ayn B. Ducao, who are prosecuting this Organized Crime Drug Enforcement Task Force case.