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17 April 2014
Oregon Man Sentenced for Illegal Possession of FirearmsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena on March 24, 2014 before U.S. District Judge Sam Haddon, CHRISTOPHER ROBERT LAWRENCE was sentenced to 180 months imprisonment and 5 years supervised release.
The sentence is in connection with Lawrence's December 2013 guilty plea to being a felon in possession of firearms. In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated that On October 16, 2009, Christopher Robert Lawrence, a convicted felon who absconded from Oregon state supervision, possessed three firearms in Bozeman, Montana. Lawrence is believed to be an Armed Career Criminal due to prior, Oregon convictions for burglary and robbery.
On October 16, 2009, a hotel employee turned over a Derringer handgun to the Bozeman Police Chief and Deputy Chief, who were having lunch at the Grantree Hotel restaurant. The employee explained that the handgun was recovered from the business center after a male and female staying at the hotel left the business center in Bozeman, Montana. The employee provided the room number to officers. The officers went to the room. After knocking and announcing themselves, the officers heard voices and shuffling. One officer observed a man (Lawrence) exit the room through the window, run to a nearby vehicle, and drive quickly away.
Upon further investigation and search warrant execution, officers recovered two more handguns from the hotel room. The Ruger 9mm pistol was located in a night stand near with window that Lawrence walked out of. Officers also located a few partial boxes of 9mm ammunition. At the time, the female claimed ownership and possession of all three handguns.
The female later provided a statement in August of 2012 detailing her involvement with Lawrence and his possession of the three firearms and 9mm ammunition in this case. Lawrence lived with her during the summer of 2009. She knew he was a convicted felon who could not have firearm. Both of them were using heroin. Lawrence was obsessed with her two firearms - the Smith and Wesson and the .38 caliber revolver. She purchased the Ruger 9mm for Lawrence. He took her to the convenience store, told her to fill out the form, and buy the gun. She did as she was told although they already had two guns. The female dropped the derringer in the hotel. The derringer was in her pocket because Lawrence wanted the firearm near him. When Lawrence saw the police, he stepped back into the hotel room, placed the firearm in the night stand, and stepped out of the window again. She originally placed all three of the firearms in the room safe. Lawrence did have the combination to the safe and had access to all of the firearms.
Lawrence also provided a statement in November 2012. Lawrence admitted his relationship with the female during the summer of 2009. He acknowledged that he was messed up on heroin during that time - he used heroin during the time of the road trip with her, and he used every day until he was caught by the police and sent to prison.
Lawrence further stated that when the police came into his Bozeman hotel room that he walked out the window and ran. He went to a nearby Lowe's store, called the female, and asked her to pick him up. He admitted to touching the ammunition, but would not answer the question if he purchased any of the ammunition. Lawrence denied touching or possessing any of the firearms.
New York-Based Marijuana Trafficker Convicted in Manhattan Federal Court of Racketeering and Narcotics Conspiracy ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that OSCAR RODRIGUEZ, 36, was convicted yesterday in Manhattan federal court of racketeering conspiracy and marijuana trafficking charges. As a result of his conviction, RODRIGUEZ faces a mandatory minimum sentence of twenty years in prison and a maximum sentence of life in prison.
Manhattan U.S. Attorney Preet Bharara said: “A jury has convicted Oscar Rodriguez of the crimes he committed as a key member of a murderous, narcotics-trafficking organization. The neighborhoods in Washington Heights that Rodriguez and his organization terrorized for over a decade are safer as a result of his conviction, and the conviction of over 50 other Rodriguez Enterprise members and associates in related cases brought by our Office. These prosecutions exemplify the positive difference that federal and local law enforcement, working together, can make in the everyday lives of the citizens in our communities.”
RODRIGUEZ’s charges arose out of a multi-year investigation titled “Operation Green Venom,” a coordinated multi-agency investigation that was led by ICE HSI and first announced in October 2010. With his conviction, a total of more than 50 defendants have been convicted in United States v. Manuel Geovanny Rodriguez-Perez, et al., 10 Cr. 905 (LTS), and related cases. Those defendants include former Rock-a-fella music founder Kareem Burke, a/k/a “Biggs,” who received a sentence of five years in prison, and High Times Magazine editor Matthew Woodstock Stang, a/k/a “Magazine Guy.”
According to the Indictment and the evidence at trial, OSCAR RODRIGUEZ was a member of the “Rodriguez Enterprise,” a massive racketeering organization whose members sold large quantities of marijuana, engaged in murders and other violent acts, transported and laundered millions of dollars, obstructed justice and committed perjury, and engaged in firearms offenses. The leader of the Rodriguez Enterprise was Manuel Geovanny Rodriguez-Perez, OSCR RODRIGUEZ’s cousin. OSCAR RODRIGUEZ worked closely with Rodriguez-Perez for over a decade, trafficking truckloads of marijuana, managing a lucrative block in Washington Heights, Manhattan, perpetrating violent assaults – including the near-fatal assault of his own employee – and participating in a plot to uncover and remove the body of another employee murdered by members of the Rodriguez Enterprise. OSCAR RODRIGUEZ participated in these acts on behalf of the Rodriguez Enterprise from at least 1996 through his arrest on October 14, 2010.
RODRIGUEZ, 36, was convicted of one count of narcotics conspiracy, which carries a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison, and one count of racketeering conspiracy, which carries a maximum sentence of life in prison. The maximum potential sentences in this case are prescribed by Congress and are provided for informational purposes only, as any sentencing of the defendant will be determined by the Court.
Mr. Bharara praised the outstanding investigative work of ICE HSI and the NYPD. He also thanked the U.S. Drug Enforcement Administration; the U.S. Marshals Service; the Bergen County, New Jersey, Prosecutor’s Office; the Englewood, New Jersey, Police Department; the U.S. Department of Housing and Urban Development; the City of New York Department of Investigation; and the New York County District Attorney’s Office for their assistance. Mr. Bharara added that the investigation is continuing.
The prosecution of the cases arising from “Operation Green Venom” is being overseen by the Office’s Violent Crimes Unit. Assistant U.S. Attorneys Amie N. Ely and Andrew C. Adams are in charge of the prosecution. Assistant U.S. Attorney Adams is also responsible for forfeiture proceedings in connection with this case.
U.S. v. Oscar Rodriguez Indictment
New Jersey Man Sentenced for Brutal Attack in National ParkRead the Press Release
PHILADELPHIA - Baldwin Centeno, 26, of Camden, New Jersey, was sentenced today to 57 months in prison for randomly beating a man, near Philadelphia’s Independence Hall, who was merely asking for assistance. On June 15, 2012, Centeno and his uncle, Santos Centeno, 47, were standing on 4th Street at National Independence Park when the victim approached them. The victim’s car was missing and he was asking for help when Centeno and his nephew began beating him for no reason. The victim suffered traumatic brain injuries, facial fractures, and other serious injuries for which he required hospitalization. A jury convicted Centeno of assault resulting in serious bodily injury and assault by striking, beating, or wounding. Santos Centeno, who was convicted of an additional incident, will be sentenced May 5, 2014.
In addition to the prison term, U.S. District Court Judge Juan R. Sanchez ordered three years of supervised release, $6,000 restitution, an $8,000 fine, and a $200 special assessment.
The case was investigated by the Philadelphia Police Department and the National Park Service, United States Department of the Interior. It is being prosecuted by Assistant United States Attorney Denise S. Wolf.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Navy Petty Officer Based in Japan Charged <br /> in International Bribery ScandalRead the Press Release
A fourth U.S. Navy official has been charged in a complaint unsealed today with accepting cash, luxury travel and consumer electronics from a foreign defense contractor in exchange for classified and internal U.S. Navy information.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney Laura E. Duffy of the Southern District of California, Director Andrew Traver of the Naval Criminal Investigative Service (NCIS) and Deputy Inspector General for Investigations James B. Burch of the U.S. Department of Defense Office of the Inspector General made the announcement.
Petty Officer First Class Dan Layug, 27, who enlisted in the Navy in September 2006, was arrested on April 16, 2014, in San Diego by special agents with NCIS and Defense Criminal Investigative Service. Layug made his initial appearance today in federal court before U.S. Magistrate Judge Karen S. Crawford in the Southern District of California.
According to the complaint, Layug received bribes in return for sending sensitive U.S. Navy information to employees of Glenn Defense Marine Asia (GDMA), a defense contractor. GDMA CEO Leonard Glenn Francis, 49, of Malaysia, had previously been charged with conspiring to bribe U.S. Navy officials, and GDMA executive Alex Wisidagama, 40, of Singapore, pleaded guilty on March 18, 2014, to defrauding the U.S. Navy. Two other senior Navy officials – Commander Michael Vannak Khem Misiewicz, 46, and Commander Jose Luis Sanchez, 41 – have been charged separately with bribery conspiracies involving Francis and have pleaded not guilty. On Dec. 17, 2013, Naval Criminal Investigative Service (NCIS) Supervisory Special Agent John Bertrand Beliveau II, 44, pleaded guilty to bribery charges for regularly tipping off Francis to the status of the government’s investigation into GDMA.
According to the complaint, Layug worked secretly on behalf of GDMA by providing classified ship schedules and other sensitive U.S. Navy information in exchange for cash, travel expenses, and consumer electronics. Court records allege that Layug used his position as a logistics specialist at a U.S. Navy facility in Yokosuka, Japan, to gain access to U.S. Navy ship schedules – some of which were classified – and other internal information, and provided this information to GDMA’s vice president of global operations. In exchange, court records allege, GDMA provided Layug with regular payments, some of which were delivered in envelopes of cash. The complaint alleges that on May 21, 2012, the vice president of global operations instructed a GDMA accountant that “at the end of each month, we will be providing an allowance to Mr. Dan Layug. Total of US $1000. You may pay him the equivalent in Yen. He will come by the office at the end of each month to see you.”
Court records allege that, in addition to his monthly “allowance,” Layug sought consumer electronics from GDMA. In an email on March 9, 2012, Layug asked the vice president of global operations “what are the chances of getting the new Ipad 3 [sic]? Please let me know.” In another email exchange on May 28, 2013, Layug asked the vice president of global operations for a “bucket list” of items including a high end camera, an iPhone5 cellular phone, a Samsung S4 cellular phone, and an iPad Mini. Shortly after sending his “bucket list” to the vice president of global operations, Layug stated in an email that “the camera is awesome bro! Thanks a lot! Been a while since I had a new gadget!”
In addition to consumer electronics, GDMA allegedly provided Layug and his friends with rooms at luxury hotels throughout Asia.
According to court documents, Layug allegedly undertook steps to conceal his bribery relationship with GDMA by, among other things, describing classified ship schedules using the code word “golf schedules” and opening a bank account in the name of his infant daughter into which he deposited portions of his “allowance.”
The ongoing investigation is being conducted by NCIS, the Defense Criminal Investigative Service and the Defense Contract Audit Agency.
The case is being prosecuted by Assistant U.S. Attorneys Mark Pletcher and Robert Huie of the Southern District of California, Director of Procurement Fraud Catherine Votaw and Attorney Brian Young of the Criminal Division’s Fraud Section, and Trial Attorney Wade Weems, on detail to the Fraud Section from the Special Inspector General for Afghan Reconstruction.
The charges contained in the criminal complaint are merely allegations, and the defendant is presumed to be not guilty unless and until proven guilty.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline , or call (800) 424-9098.Muskogee Man Sentenced to 121 Months for Brandishing A Firearm, Robbery in Indian CountryRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that JAMAL LEE PIERCY, age 25, of Muskogee, Oklahoma, was sentenced to 37 months imprisonment for Robbery in Indian Country, in violation of Title 18, United States Code, Sections 1151, 1152 and 2111 and 84 months imprisonment to be served consecutively for Brandishing a Firearm During and in Relation to and in Furtherance of a Crime of Violence, in violation of Title 18, United States Code, Section 924(c)(1)(A)(ii). The terms of imprisonment will be followed by 3 years on supervised release.
Charges arose from an investigation by the Muscogee Creek Nation Lighthorse Police, the Muskogee Police Department and the Federal Bureau of Investigation. PIERCY was indicted in August, 2013 and pled guilty in September, 2013.
The Indictment alleged that on or about June 18, 2013, within the Eastern District of Oklahoma, within Indian country, on land held in Trust by the United States of America on behalf of the Muscogee (Creek) Nation, the defendant, a non-Indian, by force, violence and intimidation, took United States Currency from the presence of S.H., an Indian and did knowingly brandish and use a firearm, that is, a small caliber handgun, during and in relation to and in furtherance of a crime of violence.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal prison at which he will serve his nonparolable sentence.
Assistant United States Attorney Dean Burris represented the United States.
Multi-Convicted Felons Sentenced in Case Involving the Burglary of Firearms from A Rincon, Georgia ResidenceRead the Press Release
SAVANNAH, GA - James Seyfried, 55, from Palm Coast; Florida, Finlandia Pineda, 56, from Palm Coast, Florida; and Elaine Taylor, 61, from Alma, Georgia were sentenced yesterday to lengthy prison terms by Senior U. S. District Court Judge B. Avant Edenfield in a case that involved the burglary of a Rincon, Georgia residence of numerous firearms and other items. Each defendant earlier pled guilty to possessing firearms as a convicted felon. Seyfried was sentenced to serve 120 months in prison, Pineda was sentenced to serve 115 months in prison, and Taylor was sentenced to serve 70 months in prison. All three will serve 3 years of supervised release upon their release from prison.
United States Attorney Edward J. Tarver stated, “The combination of repeat offenders with multiple felony convictions and home burglaries makes for a volatile situation, particularly when firearms are the target. Thanks to the quick work of our law enforcement partners, a number of stolen firearms did not end up in our communities to be used in the commission of additional crimes. Dangerous felons who have failed attempts at rehabilitation, continue to commit crimes and possess firearms should do hard time for a long time in a federal prison.
J. Britt Johnson, Special Agent in Charge, FBI Atlanta, stated, “The FBI-led Southeast Georgia Violent Crime Task Force is pleased with the role it played in removing three dangerous repeat offenders from our streets while recovering numerous firearms, including several fully automatic machine guns. With the establishment of this task force, area law enforcement are better prepared to address those more violent individuals in a more comprehensive and effective manner as seen here.”
According to evidence presented during the guilty plea and sentencing hearings, Taylor, a multi-convicted felon, received information that a Rincon, Georgia resident had a number of safes in his home containing cash, firearms, and other items. Taylor recruited Seyfried and Pineda, also multi-convicted felons, in a conspiracy to burglarize the Rincon home. On April 15, 2013, the defendants stole the safes from the Rincon home and transported them to Florida. Once in Florida, the defendants were able to open the safes, which contained 16 firearms, including fully automatic rifles (machine guns) and semi-automatic firearms, as well as silencers, smoke grenades, and thousands of dollars in cash.
Taylor’s criminal history includes over 100 felony convictions, including convictions for tax fraud, counterfeiting, and an aggravated assault. Seyfried, who was on federal supervised release at the time of the burglary, has felony convictions that include cocaine trafficking and possessing a firearm as a convicted felon. Pineda’s criminal history includes a murder-for-hire conviction, where she attempted to hire a hit man to murder Seyfried, her husband at the time.
The investigation of this case was conducted by the FBI Safe Streets Violent Crime Task Force of Southeast Georgia, which was assisted by the Effingham County Sheriff’s Office and the Bacon County Sheriff’s Office. Assistant United States Attorneys E. Greg Gilluly, Jr. and T. Shane Mayes prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Mexican Man Sentenced for Trafficking Marijuana Out of Starr CountyRead the Press Release
McALLEN, Texas – Silvestre Barrera-Villegas, a member of drug trafficking conspiracy originating out Starr County, has been ordered to federal prison for nearly 10 years, announced United States Attorney Kenneth Magidson. Barrera-Villegas, 52, of Camargo, Tamaulipas, Mexico, pleaded guilty Jan. 29, 2014, to his role in smuggling more than 8,000 kilograms of marijuana in 2013.
Today, U.S. District Judge Micaela Alvarez sentenced Barrera-Villegas to a total term of 130 months in federal prison. Not a U.S. citizen, he is expected to face deportation proceedings following his release from prison.
Barrera-Villegas admitted to assisting Sostenes Ferreira-Garcia, 50, of Rio Grande City; and Jorge Luis Martinez-Moreno, 28, and Homero Daniel Gutierrez-Aguilar, 24, both of Camargo, in smuggling marijuana from Mexico near La Casita for further distribution within the U.S.Ferreira-Garcia, who coordinated the smuggling and further distribution was previously sentenced to 240 months in federal prison, while Martinez-Moreno and Gutierrez-Aguilar, who assisted with the loading and unloading of the marijuana were sentenced, respectively, to 140 and 112 months in prison.
At the sentencing of Barrera-Villegas today, the court took into consideration information that Barrrera-Villegas, along with Ruben Patino-Garcia, took over Ferreira-Garcia’s duties after the organization in Mexico became dissatisfied with the work of Ferreira-Garcia.
Patino-Garcia, aka Orejon, 19, and Rosbel Morin-Barrera, aka Zacate, 54, both of Mexico, are fugitives in the case. The public can report tips to Immigration and Customs Enforcement - Homeland Security Investigations (ICE-HSI) by calling (866)-DHS-2-ICE (866-347-2423). On the receiving end, a team of special agents, intelligence research specialists and law enforcement specialists man the phones. They are all highly trained in a number of laws related to worksite enforcement, document and benefit fraud, intellectual property rights, money laundering, drug smuggling, child pornography and human trafficking. Callers can expect minimal wait times to speak to a tip line specialist. Average phone calls take less than five minutes to complete. The ICE-HSI Tip Line is open 24 hours a day, seven days a week.
This prosecution was a part of Organized Crime Drug Enforcement Task Force investigation dubbed “Operation Casanova,” conducted by HSI, Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation and the Starr County High Intensity Drug Trafficking Area Task Force. Assistant United States Attorney Juan F. Alanis is prosecuting the case.
Metairie, Louisiana Man, Torrey Ledell Davis, Charged with Sex Trafficking of A Minor by into the New Orleans AreaRead the Press Release
TORREY LEDELL DAVIS, age 42, most recently from Metairie, Louisiana was charged today in a three-count Indictment for offenses related to his involvement in the sex trafficking of a minor from the Jackson, Mississippi-area into the New Orleans area for the purposes of that minor engaging in prostitution, announced United States Attorney Kenneth Allen Polite, Jr..
According to the Indictment, in November 2012 DAVIS was contacted by an individual living in the Jackson, Mississippi area. That individual inquired whether DAVIS would be willing to train the victim, who had just turned 16-years-old, to work as a prostitute. DAVIS agreed, and and on November 26, 2012, DAVIS drove to the Scottish Inn in Jackson, Mississippi, picked up the victim, and drove her back to DAVIS’S residence in Metairie. Once at the residence, DAVIS gave the victim drugs to numb her senses, took sexually suggestive photographs of the victim, and saved the photographs to his laptop computer. DAVIS also arranged for the victim to be paired with a female who had worked as a prostitute for DAVIS; that individual used DAVIS’S laptop computer and the pictures DAVIS had taken of the victim to create a prostitution advertisement on an online classified advertisement website. At DAVIS’S instruction, the female drove the victim to the French Quarter of New Orleans to work as a prostitute. While in the French Quarter that evening, law enforcement officials arrested the minor for prostitution after an undercover officer arranged for the victim to perform a sexual act on the officer in exchange for $500.
If convicted, DAVIS faces a mandatory minimum term of imprisonment of ten (15) years and a maximum of life, followed by up to a life term of supervised release, and a $250,000 fine. DAVIS can also be required to register as sex offenders.
United States Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The investigation was initiated by the New Orleans Police Department and is being investigated by the Federal Bureau of Investigation and the Louisiana State Police Special Victims Unit. The prosecution of this case is being handled by Assistant United States Attorney Jordan Ginsberg.
Matilda Butts Sentenced for Misappropriation of Postal FundsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula on March 26, 2014, before U.S. District Judge Donald Molloy, MATILDA BUTTS was sentenced to 2 years' probation with 3 months house arrest and $13,731.97 in restitution.
Butts was sentenced in connection with her December 2013 guilty plea to misappropriation of postal funds. In an Offer of Proof filed by Assistant U.S. Attorney Timothy J. Racicot, Butts began working for the Eureka Post Office as a mail clerk in December, 2008. During her career, she served as an Officer in Charge and Postmaster at several other offices as well. Pertinent to this case, Butts served as Postmaster for the Eureka Post Office from November 10, 2007, through July 23, 2010.
On September 10, 2010, the United States Postal Service Office of Inspector General ("USPS OIG") received notice of several financial irregularities regarding bulk-mail transactions that were never processed at the Eureka Post Office. Further investigation revealed that Butts failed to document certain permit mailing operations, ignored process controls, failed to enter bulk-mailing transactions into the required computer programs, and improperly stored money order and check payments in her desk.
Specifically, the USPS OIG discovered a Daily Financial Report from May 15, 2009, indicating that Butts failed to properly credit a money order, bulk-mailing payment in the amount of $534.58, which had been received from a local business that regularly paid for bulk mail using non-postal money orders. Butts used the money to buy $534.58 in stamp stock and postal supplies for herself.
When dealing with other money orders provided by the local business referenced in the preceding paragraph, Butts would either record them as being payments for stamps, which she would then take for herself, or record them as Eureka Post Office deposits, in which case she would steal the equivalent amount in cash from the Post Office. On other occasions, Butts would record personal checks or Postal Service money orders as deposits, again, stealing the equivalent amount in cash.
On November 15, 2012, agents from the USPS OIG conducted a non-custodial interview of Butts at her residence in Fortine, Montana. During the interview, Butts admitted to embezzling Postal Service funds and explained how and why she did it. She also informed the agents that she used some of the money to pay higher wages to a "casual" Postal Service employee ("casual" means a temporary postal employee who works at will, has no union rights, has no set position or usual duties, and receives no benefits other than pay). Butts also executed a handwritten, sworn statement in which she discussed how much money she had embezzled from the Eureka Post Office. Butts stole approximately $13,731.97 in cash, stamps, postal products, and services between January 30, 2009 and July 19, 2010. The final analysis showed that Butts failed to properly record at least 28 bulk mailing transactions.
Mastermind of Violent Robbery Crew Convicted of Robbery Murder and Weapons ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce today that Terrance Brown, 41, of Miami, was convicted of Hobbs Act robbery, two counts of attempted Hobbs Act robbery, and three counts of possession of a firearm in furtherance of a crime of violence.
According to the indictment and evidence presented at trial, Brown was the mastermind of a seven-man robbery crew that conspired in 2010 to rob armored Brinks trucks. In July 2010, the crew planned to rob a Brinks truck at a Bank of America in Lighthouse Point. However, that robbery did not occur because the Brinks truck did not arrive at the bank at the time that the crew planned to rob it. In September 2010, the crew attempted to rob another Brinks truck at a Bank of America in Miramar. That robbery also did not occur because a police vehicle drove through the bank parking lot just prior to the planned robbery causing members of the crew to run from the scene. Finally, in October 2010, the crew returned to the same Bank of America in Miramar to once again rob the Brinks guard as he was delivering currency to the bank. During that robbery, the gunman fatally shot the guard in the head while Brown and his accomplices acted as lookouts. The gunman was arrested at the scene, and one year later, pleaded guilty and was sentenced to life in prison. Thereafter, in July of 2013, a jury convicted Brown and three other co-defendants of several charges, including conspiracy to commit Hobbs Act robbery. However, the jury was unable to reach a unanimous verdict on several other charges, which resulted in a retrial for the charges for which defendant Brown was just convicted.
U.S. Attorney Wifredo A. Ferrer stated, “We are gratified that the jury reached a unanimous verdict finding Terrance Brown guilty of robbery murder and related weapons charges. Brown was the mastermind of a violent robbery crew that resulted in the senseless murder of a Brinks guard. Today our community can sleep sounder knowing that Brown is off our streets and that justice has been served.”
“Terrance Brown is a violent and greedy criminal who was bent on hitting armored truck couriers during their deliveries,” said George L. Piro, Special Agent in Charge, FBI Miami. “In July 2010, Brown and his robbery crew fatally shot a Brinks guard during the course of his duties. For this brutal and cowardly act, Brown is now being held accountable.”
Sentencing for Brown is scheduled for July 1, 2014 before U.S. District Judge Robin S. Rosenbaum in Ft. Lauderdale. Brown faces a maximum sentence of life in prison.
Mr. Ferrer commended the FBI’s Violent Crime Task Force, the Broward County Sheriff’s Office, the Miramar Police Department, the Lighthouse Point Police Department and the Coconut Creek Police Department for their excellent work on this matter. This case was prosecuted by Assistant U.S. Attorneys Mark Dispoto, Marc Anton, and Michael Gilfarb.
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.
Maryland Man Sentenced for Conspiracy to Provide Material Support to TerroristsRead the Press Release
PHILADELPHIA - Mohammad Hassan Khalid, 20, a Pakistani citizen and U.S. lawful permanent resident who resided in Maryland, was sentenced today to five years in prison for conspiracy to provide material support to terrorists. Khalid participated in a scheme to support, recruit and coordinate members of a conspiracy in their plan to wage violent jihad in and around Europe. He pleaded guilty on May 4, 2012.
Khalid conspired with Jamie Paulin-Ramirez and Colleen LaRose, a/k/a “Jihad Jane”, who were charged separately, in a conspiracy to provide material support to terrorists. LaRose also pleaded guilty to conspiracy to kill in a foreign country, making false statements and attempted identity theft and was sentenced to 10 years in prison; Paulin-Ramirez pleaded guilty to conspiracy to provide material support to terrorists and was sentenced to eight years in prison.
In addition to the prison term, U.S. District Court Judge Petrese B. Tucker ordered three years of supervised release, with limited access to computers, and a $100 special assessment. The sentencing result was announced by United States Attorney Zane David Memeger, FBI Special Agent-in-Charge Edward Hanko, and Assistant Attorney General for National Security John Carlin.
Khalid's co-defendant, Ali Charaf Damache, a/k/a “Theblackflag," an Algerian man who resided in Ireland, is in custody in Ireland, pending extradition to the United States.
From about 2008 through July 2011, Khalid and Damache conspired with LaRose, Paulin-Ramirez, and others, to provide material support and resources to terrorists, including logistical support, recruitment services, financial support, identification documents and personnel. Khalid, Damache and others devised and coordinated a violent jihad organization consisting of men and women from Europe and the United States divided into a planning team, a research team, an action team, a recruitment team and a finance team; some of whom would travel to South Asia for explosives training and return to Europe to wage violent jihad.
As part of the conspiracy, Khalid, Damache, LaRose, and others recruited men online to wage violent jihad in South Asia and Europe. In addition, Khalid, Damache, LaRose, and others allegedly recruited women who had passports and the ability to travel to and around Europe in support of violent jihad. LaRose, Paulin-Ramirez, and others traveled to and around Europe to participate in and support violent jihad. In addition, Khalid, LaRose, and others also solicited funds online for terrorists.
For example, in July 2009, Khalid posted or caused to be posted an online solicitation for funds to support terrorism on behalf of LaRose and later sent electronic communications to multiple online forums requesting the deletion of all posts by LaRose after she was questioned by the FBI. In August 2009, Khalid sent a questionnaire to LaRose in which he asked another potential female recruit about her beliefs and intentions with regard to violent jihad. In addition, Khalid received and concealed the location of a U.S. passport that LaRose had stolen from another individual.
The Khalid case was investigated by the FBI Field Division in Baltimore, in conjunction with the FBI's Joint Terrorism Task Force in Philadelphia, and the FBI Field Divisions in New York and Washington, D.C. Authorities in Ireland also provided assistance in this matter.
The case is being prosecuted by Assistant U.S. Attorney Jennifer Arbittier Williams and Trial Attorney Matthew F. Blue, from the Counterterrorism Section of the Justice Department's National Security Division. The Office of International Affairs in the Justice Department's Criminal Division also provided assistance.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Manhattan U.S. Attorney Announces Settlement Relating to Iranian-Owned Manhattan Office Tower That Will Provide Recovery to Terrorism VictimsRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, announced today that the United States entered into a settlement agreement with the holders of terrorism-related judgments against the Government of Iran (the “Judgment Creditors”) concerning properties (the “Defendant Properties”) found to have been forfeited by the entities that served as fronts for the Government of Iran, in violation of federal law. The Defendant Properties include a 36-story office building located at 650 Fifth Avenue (the “Building”), several other properties in California, Virginia, Texas, Maryland, and Queens, New York, and the contents of several bank accounts formerly in the name of entities that served as fronts for the Government of Iran. Under the settlement, which was approved by U.S. District Judge Katherine B. Forrest today, the real estate Defendant Properties will be sold by the United States Marshals Service, with the net sale proceeds, along with the contents of the bank accounts, distributed to the signatory Judgment Creditors according to an agreed-upon distribution. Of the 20 judgment creditors who were parties to the litigation, this settlement resolves the case as to all but one of them. The settling Judgment Creditors include the families and estates of victims of the 1983 terrorist bombings of U.S. Marine Barracks in Beirut, the 1996 terrorist bombing of the Khobar Towers in Saudi Arabia, and terrorist attacks in Israel and elsewhere.
This settlement follows Judge Forrest’s September 11, 2013, order, in which she found that the Building is forfeitable to the United States, and Judge Forrest’s order of March 28, 2014, in which she found that the remaining Defendant Properties are forfeitable to the United States and that the Judgment Creditors should also prevail in their claims against the entities that served as fronts for Iran.
Manhattan U.S. Attorney Bharara said: “From the very beginning of this case, this Office sought to dismantle Iran’s slice of Manhattan – an office tower on Fifth Avenue – both to end Iran's illegal sanctions-violation and money-laundering schemes and to provide a means of compensating victims of Iranian-sponsored terrorism. With this settlement, we have taken an important step toward completing what will be the largest ever terrorism-related forfeiture and providing a substantial recovery for victims of terrorism.”
According to the settlement papers, the amended civil forfeiture Complaint, and the opinions issued by Judge Forrest in this case:
The Alavi Foundation has been providing numerous services to the Iranian Government, including managing the Building for the Iranian Government, running a charitable organization for the Iranian Government, and transferring funds from 650 Fifth Avenue Company to Bank Melli Iran (“Bank Melli”), a bank wholly owned and controlled by the Government of Iran. Likewise, Assa Corporation and Assa Company Limited (“Assa Co. Ltd.”) have been providing numerous services to Bank Melli in contravention of the International Emergency Economic Powers Act (“IEEPA”) and the Iranian Transactions Regulations, including transferring rental income generated from 650 Fifth Avenue Company to Bank Melli, following Bank Melli’s instructions with regard to Assa Corporation’s affairs, reporting back to Bank Melli on Assa Corporation’s financial situation and business dealings, and managing the affairs of Assa Corporation for the benefit of Bank Melli.
The Building was constructed in the 1970s by the Pahlavi Foundation, a non-profit organization operated by the Shah of Iran to pursue Iran’s charitable interests in the United States, and was financed by a substantial loan from Bank Melli.
After the 1979 Iranian revolution, the Islamic Republic of Iran established the Bonyad Mostazafan, also known as the Bonyad Mostazafan va Janbazan (“Bonyad Mostazafan”), to centralize, take possession of, and manage property expropriated by the revolutionary government. The Bonyad Mostazafan is controlled by the Government of Iran, and reports directly to the Ayatollah. The Bonyad Mostazafan sought to take control of the Shah’s property, including the assets of the Pahlavi Foundation. Between approximately October 1978 and approximately October 1979, all five previous directors of the Pahlavi Foundation resigned, and four new directors took their places. On February 25, 1980, an amended Certificate of Incorporation for the Pahlavi Foundation was filed renaming the Foundation “The Mostazafan Foundation of New York.” The Mostazafan Foundation of New York later renamed itself the Alavi Foundation.
The Government of Iran’s Involvement in the Management of the Building
In 1989, the Alavi Foundation and Bank Melli formed a partnership, 650 Fifth Avenue Company, in order to avoid paying federal taxes on rental income from the Building. Bank Melli’s ownership interest in 650 Fifth Avenue Company, however, was disguised through the creation of two shell companies. The Alavi Foundation transferred 35 percent of 650 Fifth Avenue Company to Assa Corporation, an entity wholly owned by Assa Co. Ltd. Assa Co. Ltd. is a Jersey, Channel Islands, United Kingdom, entity owned by Iranian citizens who represent the interests of Bank Melli. In conjunction with the transfer of the 35 percent interest in 650 Fifth Avenue Company to Assa Corp., Bank Melli cancelled its loan on the Building. Today, the Alavi Foundation owns 60 percent of 650 Fifth Avenue Company, and Bank Melli owns 40 percent of 650 Fifth Avenue Company, through Assa Corp. and Assa Co. Ltd.
The decision to convert Bank Melli’s mortgage on the Building into a partnership interest in 650 Fifth Avenue Company was discussed and approved by high-level Iranian Government officials. Among others, the head of the Bonyad Mostazafan (also the Deputy Prime Minister of Iran), the Office of the Prime Minister of Iran, the director of the Central Bank of Iran, and the general director of Bank Melli, as well as other Bonyad Mostazafan and Bank Melli officials, discussed and approved the partnership between the Alavi Foundation and Bank Melli. After the Alavi Foundation and Assa Corporation entered into the 650 Fifth Avenue Company partnership agreement, a Bonyad Mostazafan official forwarded the agreement to a Bank Melli official, noting that “the partnership is based on prior agreements between the Ministry of Finance, Bank Melli, and the Bonyad Mostazafan, with the only change being the building will be valued at two million dollars less than as previously agreed . . . .”
The Iranian Government’s control of the Alavi Foundation has continued. In 1989, Kamal Kharrazi was named as the new Iranian Ambassador to the United Nations. As a result of tension between the new Ambassador and the Alavi Foundation president, the Ambassador eventually demanded the president’s resignation. In July 1991, the president resigned his position, and he was replaced that August by an individual who served as president until the summer of 2007. In 1992, the Alavi Foundation’s new president met in New York and in Tehran with Bank Melli officials concerning $1.7 million in real estate taxes owed by 650 Fifth Avenue Company and $2.2 million in unpaid distributions owed by the partnership to Assa Corp. The Tehran meeting was attended by a Bank Melli board member, the head of Bank Melli’s Overseas Network Supervisory Department, the head of Bank Melli’s New York branch, and the head of Bank Melli’s Foreign Affairs. The head of the board of directors and managing director of Bank Melli forwarded the minutes of the Tehran meeting to the head of the Bonyad Mostazafan along with a cover letter stating that “it is hoped that your firm instructions and the extra attention of the brothers from that esteemed Foundation, who are responsible for the Alavi Foundation of New York, will resolve the partnership’s mutual problems quickly. . . .”
Iranian Ambassadors to the U.N. continued to direct the affairs of the Alavi Foundation and to attend meetings of the Alavi Foundation board. In the late 1990s, two Bank Melli employees sought Ambassador Kharrazi’s permission for Assa Corp. to sell its interest in 650 Fifth Avenue Company. The Ambassador informed Bank Melli that the Building would be sold when the real estate market improved. Ambassador Seyed Mohammad Hadi Nejad Hosseinian, Kharrazi’s successor, originated the Alavi Foundation’s project funding formula. In 2004, Hosseinian’s successor told the Alavi Foundation to settle a lawsuit with a company controlled by a former Alavi Foundation president for $4 million.
In October 2007, Alavi Foundation board members met with the Ambassador and another former Iranian Government official to address issues relating to the Building’s management and Alavi’s charitable services. At that meeting, the Ambassador stated that it was necessary to increase the Building’s profit, that the Ambassador was worried about Assa Corporation’s 40 percent share, that the Foundation should only allocate to Shiites, and that the Ambassador would determine the composition of the board. The Ambassador ordered a study about the possibility of increasing the Foundation’s revenue and profit, stating that a business plan and comparative analysis had to be done. The Ambassador instructed: “I have to definitely see the proposed allocations before a final decision is reached. I have to be kept informed and I have to be able to state my opinion in order for you to make a decision.” The Ambassador told the board members that “[i]f there is an issue that needs to be conveyed to Tehran, let me know, I will convey it.”
The Forfeiture Complaints, the Summary Judgment Decisions, and the Settlement
On December 17, 2008, this Office filed a civil Complaint seeking forfeiture of the 40 percent interest held by Assa Corporation in 650 Fifth Avenue Company. In an Amended Complaint filed in 2009, the United States sought to forfeit all right, title, and interest in 650 Fifth Avenue Company, including the Alavi Foundation’s 60 percent interest in the company. The United States also sought to forfeit the contents of bank accounts held by 650 Fifth Avenue Company, the Alavi Foundation, and Assa Corporation, as well as other real properties owned by the Alavi Foundation in Virginia, California, Maryland, Texas, and Queens. The Judgment Creditors filed claims against the Defendant Properties pursuant to the Terrorism Risk Reinsurance Act (“TRIA”), under which they asserted valid terrorism-related judgments against the Government of Iran.
On September 11, 2013, days before the commencement of what would have been the largest forfeiture trial in history, Judge Forrest granted summary judgment in favor of the United States’ claims for forfeiture of the Building as the result of violations of the Iranian Transactions Regulations promulgated under the IEEPA, and the federal money laundering statutes. The Court found that the Alavi Foundation and Assa Corp. committed the IEEPA violations and money laundering offenses. Subsequently, on March 28, 2014, the Court granted summary judgment in favor of the United States’ claims for forfeiture of the remaining Defendant Properties, and in favor of the Judgment Creditors’ claims under TRIA. As part of this decision, Judge Forrest ruled that the Alavi Foundation and Assa Corporation effectively “are” Iran for purposes of the Foreign Sovereign Immunities Act and TRIA, and thus subject to the jurisdiction of the court. The combined effect of these decisions was to ensure that the Building would no longer be in the control of the Alavi Foundation and Assa Corporation.
Under the terms of the settlement entered today, the Building and other forfeited assets will be sold by the United States Marshals Service. The Government will recover its litigation expenses and any sales costs from the sales proceeds, and the remaining net proceeds of the sales will be distributed to the Judgment Creditors that are party to the settlement according to an agreed-upon distribution. The full amount of the claim made by the lone judgment creditor that filed a claim but did not join the settlement will be retained by the settling Judgment Creditors pending the resolution of the non-settling creditor’s claims.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation Division, the Joint Terrorism Task Force, and the Police Department of the City of New York. He also thanked the Counterterrorism Section of the Department of Justice National Security Division, the Office of Foreign Assets Control and the Manhattan District Attorney’s Office for their initiation and assistance in this case.
Assistant United States Attorneys Sharon Cohen Levin, Michael D. Lockard, Martin S. Bell, and Carolina A. Fornos are in charge of the civil forfeiture action.
In re 650 Fifth Avenue and Related Properties (Alavi-Assa) Settlement Stipulation
In re 650 Fifth Avenue and Related Properties (Alavi - Assa) Stipulation ExhibitsManhattan U.S. Attorney Announces Extradition of Former Member of Polish Armed Forces Charged with Narcotics ConspiraciesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Michele M. Leonhart, the Administrator of the United States Drug Enforcement Administration (“DEA”), today announced that SLAWOMIR SOBORSKI was extradited from Estonia where he had been arrested for conspiracy to import cocaine into the United States and conspiracy to distribute cocaine on board an aircraft. SOBORSKI, a Polish citizen, will make his first appearance today in Manhattan federal court before U.S. Magistrate Judge Henry B. Pitman. SOBORSKI’s co-defendants, Joseph Manuel Hunter, Timothy Vamvakias, and Dennis Gogel, were previously arrested in Thailand (Hunter) and Liberia (Vamvakias and Gogel) and brought to the United States in September 2013. Co-defendant Michael Filter was previously arrested in Estonia in September 2013 and is pending extradition to the United States.
Manhattan U.S. Attorney Preet Bharara said: “With the arrival of Slawomir Soborski in the United States, one more of the alleged international band of narcotics traffickers and mercenary hitmen, allegedly eager and prepared to kill for cash, will be forced to face these bone-chilling charges in a U.S. court.”
DEA Administrator Michele M. Leonhart said: “It is especially despicable when someone like Soborski, who was trained by his nation to protect his countrymen from harm, uses that very training as a mercenary for hire by criminals whose alleged drug trafficking activities harm individuals, families and communities, both in the United States and around the world. Soborski’s alleged drug trafficking crimes deserve to face the close scrutiny of trial and judgment in the United States’ criminal justice system. The DEA takes pride in having helped thwart his deadly business, secure his arrest and expedite his prosecution.”
According to the Superseding Indictment:
All five defendants have previously served in the armed forces of their respective nations. SOBORSKI served in the Polish armed forces until 2011, and was trained as a sniper. Hunter served as a sniper instructor and a senior drill sergeant, training other soldiers in marksmanship and tactics. Since leaving the U.S. Army in 2004, Hunter has acted as a “contract killer” and successfully arranged for the murder of a number of people.
During meetings in Asia, Africa, and the Caribbean, beginning in January 2013 and continuing through late September 2013, Hunter communicated with three confidential sources (the “CSs”) working with the DEA, who purported to be Colombian narcotics traffickers. Hunter agreed to serve as the head of security for the CSs’ purported narcotics trafficking organization, and assembled a “security team” consisting of Vamvakias, Gogel, Filter, and SOBORSKI. Hunter also told the CSs that he had previously been involved in contract killings – referred to as “bonus jobs” – and that some team members wanted to do as much “bonus work” as possible.
Hunter and his co-defendants, including SOBORSKI, thereafter agreed, in meetings and communications with the CSs, to provide security and surveillance services to the narcotics trafficking organization. Communications between the defendants and the CSs occurred by telephone, over e-mail, and in a series of surreptitiously audio-recorded and videotaped meetings over an approximately nine-month period.
Hunter and his four co-defendants provided a variety of services to the CSs’ purported narcotics organization. In late March 2013, in Thailand, at Hunter’s direction, SOBORSKI, Gogel, and Filter surveilled a vessel on behalf of the CSs’ purported narcotics trafficking organization. In April 2013, in Mauritius, at the direction of the CSs, SOBORSKI, Gogel, and Filter provided security for a meeting at which the participants discussed the distribution of illegal narcotics to the United States and in late June 2013, in the Bahamas, SOBORSKI, Vamvakias, Gogel, and Filter conducted surveillance of a purported U.S.-registered aircraft at the direction of the third CS (“CS-3”), who posed as a member of the CSs’ narcotics trafficking organization. CS-3 informed the defendants that the aircraft was to be loaded with 300 kilograms of cocaine to be shipped to New York.
With respect to the murder-for-hire scheme, in mid-May 2013, at a meeting with the CSs in Thailand, Hunter, SOBORSKI, Vamvakias, and Gogel were told that a “bonus job” – that is, a contract killing – was in the offing, due to a leak within the CSs’ narcotics trafficking organization. In late May 2013, in e-mail communications, Hunter confirmed that his team would be willing to murder both a U.S. law enforcement agent and a source (a boat captain) who was providing information to U.S. law enforcement authorities. Hunter confirmed by e-mail that his team would kill both the DEA agent and the informant who was providing information to law enforcement about the CSs’ narcotics trafficking organization. At a meeting in late June 2013, in the Bahamas, CS-3 explained to Vamvakias and Gogel that “the job is to kill a U.S. DEA agent and a source with the DEA,” who would be located in Liberia. Vamvakias and Gogel discussed the weapons that could be used and masks to be worn for the murders, and Vamvakias stated that it would be better to “hit the agent first” and then “the snitch.” In early July 2013, Hunter sent via e-mail a list of the items needed for the murders, including “[t]wo Submachine Guns with silencers . . .[t]wo .22 pistols with Silencers.”
In late September 2013, Gogel and Vamvakias arrived in Liberia to commit the planned murders-for-hire, where they were ultimately arrested. On the same day, SOBORSKI was arrested in Estonia, with Filter, in coordination with Estonian authorities, and remained in the custody of Estonian authorities until his extradition today to the United States.
SOBORSKI, 42, is charged with one count of conspiracy to import cocaine into the United States, and one count of conspiracy to distribute cocaine on board an aircraft. Each count carries a maximum penalty of life 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 would be determined by the judge. The case is assigned to U.S. District Judge Laura Taylor Swain. Trial has been set for October 6, 2014.
The charges, arrests, and transfers of the defendants were the result of the close cooperative efforts of the United States Attorney’s Office for the Southern District of New York; DEA’s Special Operations Division; DEA’s Bangkok, Ghana, Pretoria, Bucharest, Manila, Nassau and Copenhagen Offices; the Royal Thai Police Narcotics Suppression Bureau and Crime Suppression Division; Royal Thai Immigration; the Royal Thai Attorney General's Office; Republic of Liberia’s National Security Agency; the Republic of Liberia’s Attorney General's Office; the Estonian Police and Border Guard Board; the Estonian National Criminal Police, Investigative Bureau; the Estonian State Prosecutor’s Office; the Royal Bahamas Police Force and Drug Enforcement Unit; the Romanian National Police; Interpol; and the U.S. Department of Justice Office of International Affairs.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Michael Lockard, Aimee Hector, and Anna Skotko are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Joseph Hunter, et al S7 Indictment
Lucas Jordan Conerly Sentenced to Ten Years in Prison for Using Internet to Entice A Child for Illegal Sexual PurposesRead the Press Release
GREENEVILLE, Tenn. – On Apr. 17, 2014, Lucas Jordan Conerly, 31, of Blountville, Tenn., was sentenced by the Honorable J. Ronnie Greer, U.S. District Judge, to serve 10 years in prison. Conerly pleaded guilty in December 2013 to a federal indictment charging him with using a means of interstate commerce to entice a child for illegal sexual activity. Upon his release from prison, Conerly will be subject to a life term of supervised release with special conditions.
When the family of a 13-year-old child reported to local law enforcement that Conerly had solicited meetings with their child, the Knoxville Police Department Internet Crimes Against Children Unit (ICAC) and Federal Bureau of Investigation joined forces to assume the victim’s online identity and communicate with him. Conerly arranged to meet the victim at a business in Johnson City and promised the victim gifts if he met with him. In January 2013, Conerly was arrested when he appeared at the scheduled location for the purpose of engaging in illegal sexual activity. He maintained an online relationship with the victim for nearly four months and later admitted he selected the victim from the child’s social media photograph.
William C. Killian, U.S. Attorney for the Eastern District of Tennessee, praised the cooperative efforts of the investigative agencies in this case. “Through outstanding investigative work, the Federal Bureau of Investigation, Knoxville Police Department ICAC and the Johnson City Police Department disrupted Conerly’s plan to prey on a child. Those who commit these acts deserve to spend many years in prison and be supervised for the rest of their lives to ensure other children are not harmed,” stated Killian.
The indictment and subsequent conviction of Conerly was the result of an investigation conducted by the Federal Bureau of Investigation, Knoxville Police Department ICAC, and Johnson City Police Department. Assistant U.S. Attorney Helen Smith represented the United States.
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.
Local VA Nurse Indicted on Healthcare Fraud ChargesRead the Press Release
St. Louis, MO – RICHARD GOLDMAN, of Chesterfield, Missouri, was indicted on charges of health care fraud and aggravated identity theft. According to the indictment, Goldman devised and executed a fraud scheme by both dispensing pain medicine without a doctor’s prescription for his own use or by diverting pain medicine prescribed for patients over the last three years. Goldman worked as a nurse at the John Cochran Medical Center in St. Louis, which is a facility of the United States Department of Veterans Affairs.
Goldman was indicted by a federal grand jury late Wednesday on one felony count of health care fraud and two felony counts of aggravated identity theft for using patients’ names and information without authority in furtherance of the fraud.
The health care fraud charge carries a maximum term of imprisonment of twenty years and a fine of $250,000 or both. The aggravated identity theft charges are punishable by two years, which must be imposed consecutively to any term of imprisonment imposed for the health care fraud. Also, restitution to the veterans’ health care plan is mandatory. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the VA Police and the U.S. Department of Veterans Affairs-Office of the Inspector General. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Lima Man Sentenced to 22 Years in Prison for Coercion of MinorsRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Addison R. Richardson, 24, of Lima, Ohio was sentenced in U.S. District Court to serve 264 months in prison for enticing minors to engage in illegal sexual activity.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Franklin County Sheriff Zach Scott and members of the Franklin County Internet Crimes Against Children Task Force (ICAC), and Lima Police Chief Kevin Martin announced the sentence handed down today by U.S. District Judge Edmund A. Sargus Jr.
Richardson pleaded guilty on January 30, 2014 to one count of coercion and enticement of a minor to engage in illegal sexual activity, and to one count of attempted coercion and enticement of a minor to engage in illegal sexual activity. During the plea hearing, Richardson admitted to using the internet and a cellular phone to engage in sexual conversations with a 14-year-old boy who resided in northern Ohio, and that he travelled to a residence in northern Ohio where he engaged in sexual activity with the boy. During the conversations with the boy, Richardson asked the boy to send nude photographs of himself and the boy complied.
Richardson also admitted that he had communicated via e-mail and text message with an undercover officer posing as the father of 14 and 9-year-old boys and that during those communications, he had indicated his desire to engage in various illegal sexual acts with the minor children, and that he had travelled to Columbus, Ohio for the purpose of engaging in those sex acts with the children. ICAC officers arrested Richardson when he arrived in Columbus for the meeting on February 11, 2013.
“The government believes that the sentence in this case will deter other potential defendants by sending a clear message: Individuals who engage in this criminal conduct in the Southern District of Ohio will face the severe and lengthy prison sentences mandated by Congress and anticipated by the sentencing guidelines,” Assistant U.S. Attorney Heather Hill told the court.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
U.S. Attorney Stewart commended the investigation by ICAC task force officers, FBI Special Agents with the Lima resident agency, and Lima Police officers, as well as Assistant U.S. Attorneys Heather Hill with the Southern District of Ohio and Alissa Sterling in the Northern District of Ohio, who prosecuted the case.
# # #Lafayette, New Iberia Men Plead Guilty to Roles in Vehicle Insurance Fraud SchemeRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced that Wardell Lockett, 27, of Lafayette; Aleric Johnson, 50, of New Iberia, La.; and Buddy Estelle, 53, also of New Iberia, pleaded guilty before U.S. District Judge Richard T. Haik to participating in staged vehicle accidents in order to defraud insurance companies. Lockett pleaded Wednesday. Johnson and Estelle pleaded today.
According to evidence presented at the guilty pleas, Lockett, Johnson, and Estelle each admitted to different roles in at least one staged vehicle accident from 2003 until March 10, 2010. The co-conspirators drove cars, served as passengers or independent witnesses, or participated in some other way. Lockett admitted to being an independent witness and Johnson admitted to being a passenger. Estelle admitted to providing his car to be used in the staged accidents. As a result, the defendants made false claims and statements to law enforcement and insurance companies in order to fraudulently secure insurance payments.
They face up to five years in prison, three years of supervised release, a $250,000 fine, and restitution for conspiracy to commit insurance fraud. Sentencing dates were not set.
Three other defendants have pleaded guilty to roles in the scheme. Warren Lockett pleaded guilty to conspiracy to commit insurance fraud on October 29, 2013 and was sentenced on April 2, 2014 to time served and three years of supervised release. He was also ordered to pay restitution of $5,546. Oliver Lockett pleaded guilty on July 24, 2013 to the conspiracy charge as well, and Nicky Jones also pleaded guilty on February 4, 2014 to the same charge.
The Louisiana State Police Insurance Fraud and Auto Theft Unit conducted the investigation. Assistant U.S. Attorney James T. McManus is prosecuting the case.
Lafayette Man Sentenced for Filing False Income Tax ReturnsRead the Press Release
Hammond, Indiana - United States Attorney David Capp announced that Steven Borchert was sentenced to 51 months of imprisonment and 1 year of supervised release after being found guilty of filing nine false income tax returns for the years 2001 – 2009.
Borchert , age 53, of rural Warren County, Indiana, operated a carpet cleaning business in West Lafayette.Borchert’s business generated over $1.8 million in gross revenue during the years in question which should have been reported on his tax returns.Borchert, however, maintained that only income received directly from the federal government was taxable and that his private income did not constitute reportable income.Borchert filed bogus tax returns and reported “zero income.”Borchert’s arguments were categorically rejected by the district court and the jury.
Borchert’s assertions were based, in part, on the website LostHorizons, and a book called “Cracking the Code” written by Peter Hendrickson. Both the website and book encouraged people to file “zero income” tax returns because the Internal Revenue Code only applied to a very small group of people.Some of the theories included that wages and business activity are not income under the Code.The website and book fail to mention that Hendrickson has been twice convicted for federal tax offenses. Hendrickson’s most recent conviction was for filing “zero income” tax returns, the same conduct for which Borchert was convicted. For more information, please go to http://www.justice.gov/opa/pr/2013/June/13-tax-657.html ; US v. Hendrickson, 664 F. Supp. 2d 793 (E.D. MI 2009), and 2103 WL 1759170 (E.D. MI 2013).
United States Attorney Capp stated, “The Borchert conviction should serve as fair warning to any other persons who subscribe to this “zero income” argument.The United States Attorney’s Office, in conjunction with the Internal Revenue Service, will continue to vigorously investigate and prosecute those who file these bogus tax returns.”
This case was the result of an investigation by the Internal Revenue Service and was prosecuted by Assistant United States Attorney Gary Bell.
Kountze Man Pleads Guilty in Fraud CaseRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 53-year-old Kountze, Texas man has pleaded guilty in connection with his role in theft of government property, announced U.S. Attorney John M. Bales today.
Tony Lynn Thornton, Sr. pleaded guilty to an Information charging him with theft of government property of a value of less than $1000 today before U.S. Magistrate Judge Keith Giblin.
According to information presented in court, in August 2007, Thornton was the executive director and also served as a member of the board of directors of the Hardin County Disaster Recovery Alliance (HCDRA), a non-profit organization chartered by the State of Texas. HCDRA’s main function and purpose was to operate exclusively for charitable, educational, and faith-based purposes, including but not limited to improvement of the condition of victims of Hurricane Rita, giving priority to the elderly, the disabled, the poor and the underprivileged. Thornton controlled and operated the HCDRA residential repair and renovation program. As part of his duties, Thornton selected contractors that were used to repair hurricane damaged homes in Hardin, Jefferson, and Orange Counties. Thornton was to secure the payment for the contractors after each repair job was finished, and inspect and verity that the work was completed. Thornton maintained control over the HCDRA checking account, often writing and signing checks to pay HCDRA vendors and contractors. On or about May 5, 2007, Thornton’s wife incurred a charge on her personal Citi Bank Advantage Credit card in the amount of $627.83. On May 15, 2007, Thornton wrote a check made out to “City Master Carpenters” on the HCDRA checking account. He then signed the check on behalf of HCDRA. The check was then sent, along with a copy of Thornton’s wife’s credit card statement to Citi Bank where the HCDRA check was processed and her account credited in the amount of the check. Thornton knew that the charge was not made for the benefit of HCDRA, and he intended to convert the funds for his own use or that of another to pay off the outstanding credit card debt, without the authority of the HCDRA.
Thornton faces up to one year in federal prison, a fine not to exceed $100,000.00 and restitution. A date for sentencing has not yet been set.
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The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case is being prosecuted by Assistant U.S. Attorney Joseph Batte.Kewa Pueblo Man Sentenced to Twelve Years in Federal Prison for Second Degree Murder ConvictionRead the Press Release
ALBUQUERQUE – Dennis J. Lovato, 29, a member and resident of Kewa Pueblo, was sentenced to 12 years in federal prison followed by five years of supervised release for his second degree murder conviction. Lovato also was ordered to pay $1600.00 in restitution.
Lovato was arrested on April 20, 2011, on a criminal complaint charging him with beating another Kewa Pueblo man to death outside the victim’s residence on April 15, 2011. He subsequently was indicted and charged with second degree murder. Lovato has been in federal custody since his arrest.
On Oct. 24, 2013, Lovato entered a guilty plea to the indictment and admitted killing the victim on April 15, 2011, by beating him to death with his hands and feet. Lovato admitted that he acted with malice aforethought as he beat the victim to death. According to court filings, a preliminary autopsy report indicated that the victim died as a result of multiple blunt force trauma.
This case was investigated by the Santa Fe office of the FBI and the Southern Pueblos Agency of the BIA’s Office of Justice Programs and was prosecuted by Assistant U.S. Attorneys Mark T. Baker and Holland S. Kastrin.Justice Department Settles Immigration-Related Discrimination Claim Against Potter ConcreteRead the Press Release
The Justice Department reached an agreement today with Potter Concrete, a company based in Dallas, resolving claims that the company engaged in a pattern or practice of document abuse in violation of the Immigration and Nationality Act (INA).
The department’s investigation, which was initiated based on a referral from U.S. Citizenship and Immigration Services (USCIS), concluded that Potter Concrete subjected non-U.S. citizen new hires to unlawful demands for specific documentation issued by the U.S. Department of Homeland Security in order to verify their employment eligibility, while U.S. citizens were permitted to present their choice of documentation. The investigation also revealed that Potter Concrete selectively utilized E-Verify to confirm the employment eligibility of individuals they knew or believed to be non-U.S. citizens or foreign born. The INA’s anti-discrimination provision prohibits employers from placing additional documentary burdens on work-authorized employees during the hiring and employment eligibility verification process based on their citizenship status or national origin.
Under the settlement agreement, Potter Concrete will pay $115,000 in civil penalties to the United States; undergo training on the anti-discrimination provision of the INA; revise its employment eligibility verification policies; and be subject to monitoring of its employment eligibility verification practices for one year.
“Employers cannot create discriminatory hurdles for work-authorized non-U.S. citizens or naturalized citizens in the employment eligibility verification process, which includes the E-Verify program,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Department of Justice is committed to protecting U.S. citizens and all work-authorized immigrants from document abuse.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship status and national origin discrimination in hiring, firing or recruitment or referral for a fee, document abuse and retaliation or intimidation . This matter was handled by OSC Trial Attorney Ronald Lee and OSC Equal Opportunity Specialist Alexandra A. Vince. For more information about protections against employment discrimination under immigration laws or how to sign up for a free webinar, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired), call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired or visit the OSC website at www.justice.gov/crt/about/osc .
Applicants or employees who believe they were subjected to different documentary requirements based on their citizenship status, immigration status or national origin or discrimination based on their citizenship status, immigration status or national origin in hiring, firing or recruitment or referral should contact the worker hotline above for assistance.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office today announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Strong in Great Falls on April 4, 2014 and entering pleas of Not Guilty were:
- MELINDA MONDRAGON-PATALEON, a 41-year-old resident of Las Vegas, Nevada, appeared on charges of conspiracy to possess with intent to distribute methamphetamine and use of a communication facility to commit a drug felony. If convicted of the most serious charge contained in the indictment, MONDRAGON-PATALEON faces 20 years imprisonment, $1,000,000 in fines and 3 years supervised release. The case was investigated by the United States Postal Service. PACER Case Reference: 13-71
Appearing before U.S. Magistrate Ostby in Billings on April 8, 2014 and entering pleas of Not Guilty were:
- KEVIN R. CRISWELL, a 31-year-old resident of Libby, appeared on charges of conspiracy to acquire a controlled substance by forgery, fraud, deception or subterfuge. If convicted of the most serious charge in the indictment, CRISWELL faces 4 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Drug Enforcement Administration. PACER Case Reference: 14-36
- BRANDON JAYJOSEPH WHITE, a 24-year-old resident of Billings, appeared on charges of conspiracy to possess a controlled substance with intent to distribute and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, WHITE faces life imprisonment, $10,000,000 in fines and 5 years supervised release. The prosecution is part of Project Safe Bakken, a cooperative effort between federal and state prosecutors and federal, state, local, and tribal law enforcement agencies in Montana and North Dakota. The investigation was conducted by the Drug Enforcement Administration, Federal Bureau of Investigation, Bureau of Alcohol, Tobacco and Firearms and the Montana Division of Criminal Investigation. PACER Case Reference: 13-91
Appearing before U.S. Magistrate Strong in Great Falls on April 8, 2014 and entering pleas of Not Guilty were:
- DALE YURKOVIC, a 61-year-old resident from Las Vegas, Nevada, appeared on charges of wire fraud and money laundering. If convicted of the most serious charge contained in the indictment, YURKOVIC faces 20 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service. PACER Case Reference: 14-13
Appearing before U.S. Magistrate Strong in Great Falls on April 9, 2014 and entering pleas of Not Guilty were:
- SCOBEY BAKER, a 37 year-old-resident of Wolf Point, appeared on charges of aggravated sexual abuse and kidnaping. If convicted of the most serious charge in the indictment, BAKER faces life imprisonment, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation and Fort Peck Tribes Department of Law and Justice. PACER Case Reference: 14-27
- DAVID V. CHASER, a 39-year-old resident of Wolf Point, appeared on charges of possession with intent to distribute methamphetamine. If convicted of the most serious charge in the indictment, CHASER faces 20 years imprisonment, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-28
Appearing before U.S. Magistrate Lynch in Missoula on April 10, 2014 and entering pleas of Not Guilty were:
- DAVID ERIC JACOBS, a 34-year-old resident of Missoula, appeared on charges of felon in possession and counterfeiting/forgery. If convicted of the most serious charge contained in the indictment, JACOBS faces 20 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the United States Secret Service and the Bureau of Alcohol, Tobacco and Firearms. PACER Case Reference: 13-17
Appearing before U.S. Magistrate Ostby in Billings on April 11, 2014 and entering pleas of Not Guilty were:
- EUGENIA ANN ROWLAND, a 41-year-old resident of Rapid City, South Dakota, appeared on charges of second degree murder. If convicted of the charge in the indictment, ROWLAND faces life imprisonment, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs. PACER Case Reference: 14-27
Appearing before U.S. Magistrate Strong in Great Falls on April 14, 2014 and entering pleas of Not Guilty were:
- MARK JOHN WEATHERWAX, a 44-year-old resident of Browning, appeared on charges of aggravated sexual abuse, attempted aggravated sexual abuse and assault. If convicted of the most serious charges in the indictment, WEATHERWAX faces life imprisonment $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-03
Appearing before U.S. Magistrate Ostby in Billings on April 16, 2014 and entering pleas of Not Guilty were:
- DAVID ALLEN DARSOW, a 47-year-old resident of Billings, appeared on charges of unlawful possession of a machine gun. If convicted of the charge in the indictment, DARSOW faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco and Firearms. PACER Case Reference: 14-30
The indictment is merely a formal charging document. It is not proof of guilt and all persons indicted are presumed to be innocent of any crime until proof of guilt is established by trial or guilty plea.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html.
To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Keri
Information on Death Penalty Eligibility for Homicide Charged in 27 Defendant Indictment CaseRead the Press Release
On April 16 & 17, 2014, some local media inaccurately reported on one of the penalties associated with a grand jury indictment. This corrects that media misstatement.
On April 1, 2014, a federal grand jury returned a 25-count indictment against 27 defendants on drug trafficking and money laundering offenses. Count Five of the indictment alleges that co-defendants Kevin R. Arms, John Bailey and Phillip Moffet used a firearm in furtherance of a drug trafficking offense. That count also alleges that their use of the firearm caused the death of another person. This alleged offense is death penalty eligible. Information about how the U.S. Department of Justice reviews death penalty eligible cases prior to making a determination on whether the death penalty will actually be sought by federal prosecutors, is availalble at the following links:
http://www.justice.gov/usao/eousa/foia_reading_room/usam/title9/10mcrm.htm
http://www.justice.gov/criminal/about/ccs.html
To see the original press release: http://www.justice.gov/usao/wie/news/2014/pr20140416_Twenty-Seven_Indicted.html
Assitant Chief of Police Kurt Liebold, MPD; James Santelle, USA, and Jim Bohn, DEA
Indictments Returned in Hammond Federal CourtRead the Press Release
Hammond, Indiana- The United States Attorney’s Office announced that the following Indictments were returned on April 17, 2014:
Jeremiah Ellis, 28, and Ashley Patterson, 24, both of East Chicago, Indiana were charged with the bank robberies of the First Merchants Bank in East Chicago and use of a firearm during and in relation to a crime of violence.These charges were filed as the result of an investigation by the Federal Bureau of Investigation and the Chicago Police Department.This case has been assigned to and will be prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
DeCarlos Frazier, 30, of Chicago, Illinois, was charged with possession of a firearm by a convicted felon.This charge was filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task Force.This case has been assigned to and will be prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Akeem Dillon, 28, of Chicago, Illinois, was charged with possession of a firearm by a convicted felon.This charge was filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Chicago Police Department.This case has been assigned to and will be prosecuted by Assistant United States Attorney Thomas McGrath.
William D. Cantrell, 59, of Valparaiso, Indiana, was charged with internet stalking.This charge was filed as the result of an investigation by the Federal Bureau of Investigation.This case has been assigned to and will be prosecuted by Assistant United States Attorney Susan Collins.
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.
Hotel Magnate Sant Singh Chatwal Pleads Guilty to Scheme to Evade Federal Election Campaign Contribution Limits, and to Witness TamperingRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, New York, Sant Singh Chatwal pleaded guilty to conspiring to violate the Federal Election Campaign Act (the “Election Act”) by making more than $180,000 in federal campaign donations to three candidates1 through straw donors who were reimbursed, and to witness tampering. When sentenced, Chatwal faces up to 25 years in prison. As part of his plea agreement with the government, Chatwal agreed to forfeit $1 million to the United States.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; David A. O’Neil, Acting Assistant Attorney General of the Criminal Division of the U.S. Department of Justice; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; and Richard Weber, Chief, Internal Revenue Service-Criminal Investigation.
“The Election Act’s spending limits are in place to limit financial influence in federal elections and to ensure transparency as to the identity of donors. Chatwal sought to buy access to power through unlimited and illegal campaign contributions, funneling money from the shadows through straw donors. Chatwal’s scheme sought to subvert the very purpose of the Election Act,” stated United States Attorney Lynch. “Chatwal then rolled the dice to stymie the government’s investigation, thinking he could corruptly convince witnesses to his federal election crimes to stay silent. That gamble did not pay off. Today’s conviction sends a clear message that this office is committed to vigorously investigating and prosecuting individuals who are responsible for committing crimes in connection with federal campaign donations and witness tampering.”
“Chatwal admitted that he used straw donors to secretly funnel money to political campaigns so that he could gain access to the politicians, and he coerced another person to hide his crime,” said Acting Assistant Attorney General O’Neil. “Chatwal went to great lengths to undermine both election laws and our system of justice. Today’s guilty plea shows our vigilance and determination to prosecute those who damage the integrity of elections by masking the true sources of campaign contributions.”
FBI Assistant Director-in-Charge Venizelos stated, “Attempting to buy elections through illegal campaign contributions is unacceptable. It is also illegal. Americans rightfully expect that elections will be free and fair. The FBI will continue investigating every case of abuse, wherever we find it.”
“Mr. Chatwal admitted his actions were designed to circumvent the Election Act,” said Chief Weber, IRS Criminal Investigation. “IRS-CI’s ability to adapt our financial investigative skills to cases where they are needed uniquely equips our agents to defend and uphold America’s trust in the fairness of the electoral process.”
The Election Act limits the amount and source of money that can be contributed to a federal candidate or to an individual candidate’s political campaign committee and multi-candidate political campaign committees, commonly referred to as “political action committees” (“PACs”). For example, in 2008, the Election Act limited primary and general election campaign contributions in a calendar year to $2,300 per campaign, for a total of $4,600, from any one individual to any one candidate. In 2010, the Election Act limited primary and general election campaign contributions in a calendar year to $2,400 per campaign, for a total of $4,800, from any one individual to any one candidate. The Election Act also prohibits making a campaign contribution in the name of another person, including giving funds to a “straw donor,” or a conduit, for the purpose of having the straw donor pass the funds to a federal candidate as the straw donor’s own contribution.
According to court filings and facts presented during the plea proceeding, Chatwal operated several businesses, including restaurants, hotels, and a hotel management company. From 2007 to 2011, Chatwal used his employees, business associates, and contractors who performed work on his hotels (the “Chatwal Associates”), to solicit campaign contributions on Chatwal’s behalf in support of various candidates for federal office and PACs, collect these contributions, and pay reimbursements for these contributions, in violation of the Election Act.
Chatwal and the Chatwal Associates induced straw donors to make these campaign contributions, promising them that they would be reimbursed. Chatwal orchestrated a scheme to make approximately $188,000 in campaign contributions to three candidates for federal office via straw donors, and he often arranged for the straw donors to be reimbursed through the Chatwal Associates, ultimately paying for the reimbursed contributions with funds belonging to Chatwal or one of Chatwal’s companies.
The evidence against Chatwal includes an October 2010 recorded conversation between Chatwal and a business associate who became an informant, in which Chatwal underscored his view as to the importance of political campaign contributions, stating that without campaign contributions, “nobody will even talk to you. . . . That’s the only way to buy them, get into the system. . . . What, what else is there? That’s the only thing.”
Chatwal also sought to obstruct the grand jury investigation into his Election Act scheme by tampering with a witness, a person whose business performed construction work for Chatwal and Chatwal’s companies, and who had recruited straw donors at Chatwal’s direction. In a June 2012 recorded conversation, Chatwal told that individual that if FBI and IRS agents approached him or his family, they should not speak with the agents and should instead refer them to a lawyer Chatwal would provide. During this conversation, the individual said that he would not tell agents that Chatwal gave him money to reimburse straw donors. Chatwal replied, “Never, never.”
A few days later, in a July 2012 recorded conversation, Chatwal directed the same individual to lie to agents about the Election Act scheme. Chatwal said he would pay for the individual’s legal fees in connection with the investigation, and offered to conceal the money within a payment for work the individual’s company had performed for Chatwal. During the conversation, they discussed that investigators were seeking copies of campaign checks in the individual’s possession, and they then discussed that it was helpful that some of the straw donors had been reimbursed with cash. Chatwal added, “cash has no proof.”
The guilty plea proceeding took place before United States District Judge I. Leo Glasser.
The government’s case is being prosecuted by Assistant United States Attorneys Martin Coffey, Carolyn Pokorny, Robert Capers and Brian Morris, and Trial Attorney Marquest Meeks of Public Integrity Section of the Department of Justice.
The Defendant:
SANT SINGH CHATWAL
Age: 70
Residence: New York, NY
_____________________________________________________________________________
1 There is no allegation that the candidates participated in, or were aware of, Chatwal’s scheme.
Hotel Magnate Pleads Guilty to Federal Election Campaign Spending Limits Evasion Scheme and Witness TamperingRead the Press Release
Sant Singh Chatwal, 70, of New York – a businessman operating several restaurants, hotels and a hotel management company – pleaded guilty in the Eastern District of New York to conspiring to violate the Federal Election Campaign Act (the “Election Act”) by making more than $180,000 in federal campaign donations to three candidates through straw donors who were reimbursed and to witness tampering. There is no allegation that the candidates participated in, or were aware of, Chatwal’s scheme.
Acting Assistant Attorney General David A. O’Neil of the Criminal Division of the U.S. Department of Justice, U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Assistant Director in Charge George Venizelos of the FBI’s New York Field Office and Chief Richard Weber of the Internal Revenue Service–Criminal Investigation made the announcement.
The guilty plea proceeding took place before United States District Judge I. Leo Glasser of the Eastern District of New York. As part of his plea agreement with the government, Chatwal agreed to forfeit $1 million to the United States.
“Chatwal admitted that he used straw donors to secretly funnel money to political campaigns so that he could gain access to the politicians, and he coerced another person to hide his crime,” said Acting Assistant Attorney General O’Neil. “Chatwal went to great lengths to undermine both election laws and our system of justice. Today’s guilty plea shows our vigilance and determination to prosecute those who damage the integrity of elections by masking the true sources of campaign contributions.”
“The Election Act’s spending limits are in place to limit financial influence in federal elections and to ensure transparency as to the identity of donors,” said U.S. Attorney Lynch. “Chatwal’s scheme sought to subvert the very purpose of the Election Act. Chatwal then rolled the dice to stymie the government’s investigation, thinking he could corruptly convince witnesses to his federal election crimes to stay silent. That gamble did not pay off. Today’s conviction sends a clear message that this office is committed to vigorously investigating and prosecuting individuals who are responsible for committing crimes in connection with federal campaign donations and witness tampering.”
“Attempting to buy elections through illegal campaign contributions is unacceptable. It is also illegal,” said FBI Assistant Director in Charge Venizelos. “Americans rightfully expect that elections will be free and fair. The FBI will continue investigating every case of abuse, wherever we find it.”
“Mr. Chatwal admitted his actions were designed to circumvent the Election Act,” said IRS-CI Chief Weber. “IRS-CI's ability to adapt our financial investigative skills to cases where they are needed uniquely equips our agents to defend and uphold America's trust in the fairness of the electoral process.”
The Election Act limits the amount and source of money that can be contributed to a federal candidate or to an individual candidate’s political campaign committee and multi-candidate political campaign committees, commonly referred to as “political action committees” (PACs). For example, in 2008, the Election Act limited primary and general election campaign contributions in a calendar year to $2,300 per campaign, for a total of $4,600, from any one individual to any one candidate. In 2010, the Election Act limited primary and general election campaign contributions in a calendar year to $2,400 per campaign, for a total of $4,800, from any one individual to any one candidate. The Election Act also prohibits making a campaign contribution in the name of another person, including giving funds to a “straw donor,” or a conduit, for the purpose of having the straw donor pass the funds to a federal candidate as the straw donor’s own contribution.
According to court filings and facts presented during the plea proceeding, Chatwal operated several businesses, including restaurants, hotels, and a hotel management company. From 2007 to 2011, Chatwal used his employees, business associates, and contractors who performed work on his hotels (the “Chatwal Associates”) to solicit campaign contributions on Chatwal’s behalf in support of various candidates for federal office and PACs, collect these contributions, and pay reimbursements for these contributions.
Further according to court filings, Chatwal and the Chatwal Associates induced straw donors to make these campaign contributions, promising them that they would be reimbursed. Chatwal orchestrated a scheme to make approximately $188,000 in campaign contributions to three candidates for federal office via straw donors, and he often arranged for the straw donors to be reimbursed through the Chatwal Associates, ultimately paying for the reimbursed contributions with funds belonging to Chatwal or one of Chatwal’s companies.
The evidence against Chatwal includes an October 2010 recorded conversation between Chatwal and a business associate who became an informant, in which Chatwal underscored his view as to the importance of political campaign contributions, stating that without campaign contributions, “nobody will even talk to you…That’s the only way to buy them, get into the system… What, what else is there? That’s the only thing.”
Also according to court filings, Chatwal sought to obstruct the grand jury investigation into his Election Act scheme by tampering with a witness, a person whose business performed construction work for Chatwal and Chatwal’s companies and who had recruited straw donors at Chatwal’s direction. In a June 2012 recorded conversation, Chatwal told the individual that if FBI and IRS agents approached him or his family, they should not speak with the agents and should instead refer them to a lawyer Chatwal would provide. During this conversation, the individual said that he would not tell agents that Chatwal gave him money to reimburse straw donors. Chatwal replied, “Never, never.”
A few days later, in a July 2012 recorded conversation, Chatwal directed the same individual to lie to agents about the Election Act scheme. Chatwal said he would pay for the individual’s legal fees in connection with the investigation and offered to conceal the money within a payment for work the individual’s company had performed for Chatwal. During the conversation, they discussed that investigators were seeking copies of campaign checks in the individual’s possession, and they then discussed that it was helpful that some of the straw donors had been reimbursed with cash. Chatwal added, “Cash has no proof.”
The case was investigated by the FBI’s New York Field Office and the IRS-CI. The case is being prosecuted by Trial Attorney Marquest Meeks of Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Martin Coffey, Carolyn Pokorny, Robert Capers and Brian Morris of the Eastern District of New York.Health Care Providers to Pay $1 Million for False Claims, Improper ReferralsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA -- Two Ohio Valley health care providers will pay a million dollar penalty after violating Federal law by submitting false claims to Medicare.
United States Attorney William J. Ihlenfeld, II, announced that Devender Batra, M.D., and Belmont Cardiology, Inc. will pay $1 million to the United States after causing East Ohio Regional Hospital and Ohio Valley Medical Center to submit fraudulent claims to Medicare from January 2009 to August of 2010, in violation of the Federal False Claims Act. The settlement ends an investigation into improper compensation arrangements between Dr. Batra, East Ohio Regional Hospital and Ohio Valley Medical Center. The arrangements with Dr. Batra and Belmont Cardiology led the hospitals to submit false claims for prohibited referrals for various health services in violation of Federal law.
AThese types of prohibited referrals are a significant problem and lead to increased health care costs for everyone,” said U.S. Attorney Ihlenfeld. “Medicare expects that a physician’s referral of a patient to a hospital will be free from improper influences, and when it’s not we will act to hold the wrongdoers accountable.”
The investigation arose after the U.S. Attorney’s Office resolved claims against East Ohio Regional Hospital and Ohio Valley Medical Center for entering into improper compensation arrangements with Dr. Batra and others.
AReferrals of patients that are motivated, to any degree, by prohibited compensation arrangements may lead to costly and unnecessary medical care. For this reason we encourage anyone who has knowledge of such arrangements between a medical facility and a physician to report it,@ said Ihlenfeld.
“Sound medical decision making cannot be influenced by financial gain”, said Nick DiGiulio, Special Agent in Charge for the Inspector General’s Office of the U.S. Department of Health and Human Services in Philadelphia. “We are pleased that these allegations are resolved and will continue to work with the Department of Justice to root out illegal, wasteful business arrangements.”
The False Claims Act is a federal law that allows the government to sue health care providers who submit false or fraudulent claims to federal health care programs, such as Medicare, or cause others to do so. False claims submitted by medical providers cost federal health care programs billions of dollars each year.
Dr. Batra is a physician who practices cardiology in Belmont County, Ohio and the surrounding area. Dr. Batra is the President of Belmont Cardiology Inc., a medical corporation.This matter was handled by Assistant United States Attorney Alan G. McGonigal, in coordination with the United States Department of Health and Human Services, Office of Inspector General.
Harrisonburg Man Sentenced for Providing Fatal HeroinRead the Press Release
HARRISONBURG, VIRGINIA – A Harrisonburg man, who was found guilty by a jury in May 2013, was sentenced today in the United States District Court for the Western District of Virginia in Harrisonburg on heroin distribution charges.
Jean Paul Alvarado, 31, of Harrisonburg, Va., was indicted in July 2012 one a single charge of distributing heroin and that serious bodily injury and death resulted from the use of such substance. Following a jury trial earlier this year, Alvarado was found guilty of that charge. Today in District Court, he was sentenced to 240 months in federal prison.
“The abuse of heroin is a public health crisis, most emphatically illustrated by the staggering increase in overdose deaths in our district,” United States Attorney Timothy J. Heaphy said today. “We are focusing our investigative resources to meet this threat, as evidenced by cases like this one. We are also working with schools, non-profit organizations and other community groups on prevention, education and treatment solutions. A comprehensive approach is essential if we are going to successfully repel this large and growing threat.”
During trial, the United States introduced evidence that one of Alvarado’s heroin customers overdosed and died after using heroin Alvarado had sold to him on March 29, 2011. After Alvarado was arrested, he told police that he had sold heroin to the customer who died. The jury found Alvarado guilty of distributing heroin that resulted in death.
In its ongoing battle against heroin abuse, the United States Attorney’s Office, along with the Virginia State Police and the Northwest Virginia Regional Drug and Gang Task Force, is cosponsoring a heroin summit on Friday, April 18, 2014 at Shenandoah University. This summit will bring together community leaders, law enforcement, school officials, treatment service providers, and others, to work toward comprehensive solutions to the escalating heroin problem in the region.
The investigation of the case was conducted by the Drug Enforcement Administration, the RUSH Drug Task Force and the Harrisonburg Police Department. Assistant United States Attorney Grayson Hoffman prosecuted the case for the United States.
Harrisonburg Man Pleads Guilty to Fraud ChargesRead the Press Release
HARRISONBURG, VIRGINIA – A Harrisonburg man, who admitted today to bilking nearly 20 investors out of more than $1 million dollars through a fraudulent investment scheme, pled guilty yesterday in the United States District Court for the Western District of Virginia in Harrisonburg to related fraud charges.
Paul Souder, 60, of Harrisonburg, Va., waived his right to be indicted and pled guilty this morning to one count of mail fraud and one count of wire fraud.
“Mr. Souder abused the trust of his clients when he stole their hard-earned assets,” United States Attorney Timothy J. Heaphy said today. “Instead of investing their money, he paid his own bills and bought new vehicles. He has now been held accountable for his despicable acts of greed. We hope that today’s conviction helps Souder’s victims heal and receive restitution.”
According to a statement of facts entered into evidence at yesterday’s hearing, between June 2007 and October 2013, Souder obtained money from at least 18 investors through the issuance of promissory notes. The defendant represented to his clients that he would invite the borrowed money online using his personal trading strategy. He promised to pay a return to these investors ranging up to 10 percent per quarter.
Souder admitted yesterday that he pooled most of the investors’ money into an account under his exclusive control and opened an online trading account operated out of his home. The defendant generated and sent quarterly statements via U.S. mail and emails to investors, informing them of the alleged status of their accounts, however, he never reported any losses to any of his investors. In all, Souder stole approximately $1.2 million from investors.
The defendant admitted yesterday in Federal Court that at no time did he generate any actual financial returns or profits for investors through online trading. The entire promissory note program was fraudulent and Souder only used approximately half of the funds he obtained from investors to trade online and incurred losses as a result of his online trading. Souder converted the remainder of the investor funds for his personal use, using the money to pay his mortgage and buy new vehicles. In addition, Souder used funds obtained from new investors to pay profit distributions to earlier investors.
In the fall of 2012, the Virginia State Corporation Commission (SCC) approached Souder and informed him that his actions violated the Virginia Securities Act and that he should cease his online trading activity immediately. However, Souder continued to trade and failed to return investors funds, as previously agreed.
The investigation of the case was conducted by the United States Postal Inspection Service and State Corporation Commission. Assistant United States Attorney C. Patrick Hogeboom III and Gauhar R. Naseem, Associate General Counsel-Financial Services, Office of General Counsel for the Virginia State Corporation Commission, will prosecute the case for the United States.
Harrisburg Man Charged with Manufacturing Counterfeit U.S. CurrencyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Abdel Jaber Obaid, age 31, of Harrisburg, was indicted yesterday and charged with Manufacturing Counterfeit Obligations of the United States.
According to U.S. Attorney Peter Smith, in at least as early as April 2012, Obaid began manufacturing counterfeit $50 and $20 bills, which were then passed at businesses throughout Dauphin County. If convicted, Obaid faces 20 years imprisonment and a fine of up to $250,000.
This case is being investigated by the United States Secret Service and the Harrisburg Bureau of Police and the Lower Paxton and Swatara Police Departments and is being prosecuted by Assistant United States Attorney Daryl F. Bloom.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Greenville Man Sentenced for Child Pornography OffenseRead the Press Release
Follow @SDILNewsA Greenville man was sentenced on April 17, 2014, on one count of Attempt to Access with Intent to View Visual Depictions of Minors Engaged in Sexually Explicit Conduct, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Terry L. Adcock, 65, Greenville, Illinois, was sentenced to a term of 30 months in federal prison, to be followed by a 10 year term of supervised release, fined $3,000, and ordered to pay a $100 special assessment. Adcock also forfeited the two computers that were used in the attempt to access the illegal images. In addition, upon his release from prison, Adcock must register as a sex offender as a condition of his supervised release. Adcock had been detained since he entered his guilty plea on January 16, 2014.
Before imposing sentence, Chief Judge David R. Herndon noted that Adcock was charged with a serious offense because child pornography “is not a victimless crime.” He stated that the children contained in these images and/or videos of child pornography suffer from knowing that people are looking at their images and/or videos over and over again. He also noted that, in past victim impact statements submitted on behalf of some children depicted in child pornography currently found on the internet, some noted that, when an individual catches their eye, they have to wonder if this person is looking at him or her because that individual has seen he or she depicted in one of these images and/or videos depicting their abuse that is on the internet. He suggested that individuals who look at child pornography need to think about this. Specifically, he suggested that, maybe when someone has an inclination to look at child pornography, that individual stop and realize that they are not looking at “nothing” or “inanimate objects,” but at “people.” He stated that, maybe when an individual thinks of that child as being aware that that individual is looking at that child and how that makes that child feel, then just maybe the inclination to look at child pornography will pass.
The charges resulted from an FBI nationwide investigation that revealed IP addresses that accessed a web forum known to contain links to images and/or videos of visual depictions of minors engaged in sexually explicit conduct. The web forum listed a detailed description of the image and/or video file that a user could link to, with some of the descriptions of the images clearly indicating that the images and/or video vile involved a prepubescent minor. This investigation revealed that, between October and November, 2011, an IP address assigned to Defendant Terry Adcock tried to access the web forum on five separate occasions.
On December 18, 2012, FBI Special Federal Officers spoke with Adcock at his residence about the results of the investigation. Adcock admitted that he had been searching for and viewing images of child pornography on the internet since he bought his first computer approximately twenty years prior, and that he was interested in prepubescent girls between the ages of 10 and 12. He said that, by googling a search term commonly associated with child pornography, he would gain access to thousands of websites that contained child pornography, sometimes paying for access to certain websites. Adcock gave consent to the officers to search and seize, among other things, a Gateway desktop computer and a Dell Inspiron laptop computer. Adcock stated that he used these two computers to access and view child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case was investigated by the Federal Bureau of Investigation=s Springfield Child Exploitation Task Force (SCETF). The case was assigned to Assistant United States Attorney Angela Scott.
Georgia Real Estate Investor Pleads Guilty to Bid Rigging and Fraud at Public Foreclosure AuctionsRead the Press Release
A Georgia real estate investor pleaded guilty today for his role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Georgia, the Department of Justice announced.
Felony charges were filed on March 25, 2014, in the U.S. District Court for the Northern District of Georgia in Atlanta, against Mohamed Hanif Omar. According to court documents, from at least as early as Sept. 1, 2009, until at least March 7, 2012, Omar conspired with others not to bid against one another, and instead to designate a winning bidder to obtain selected properties at public real estate foreclosure auctions in Gwinnett County, Ga. Omar was also charged with conspiring to commit mail fraud by fraudulently acquiring title to selected Gwinnett County properties sold at public auctions. Additionally, he was charged with making and receiving payoffs and diverting money to co-conspirators that would have gone to mortgage holders and others by holding second, private auctions open only to members of the conspiracy. The department said that the selected properties were then awarded to the conspirators who submitted the highest bids in the second, private auctions.
“Today’s guilty plea is the fourth in the Antitrust Division’s ongoing investigation into anticompetitive conduct at public real estate foreclosure auctions in Georgia,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The division remains committed to working with its law enforcement partners to investigate and prosecute local cartels that harm distressed homeowners and lenders.”The department said that the primary purpose of the conspiracies was to suppress and restrain competition and to conceal payoffs in order to obtain selected real estate offered at Gwinnett County public foreclosure auctions at non-competitive prices. When real estate properties are sold at the auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner. According to court documents, the conspirators paid and received money that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties, and, in some cases, the defaulting homeowner.
“Today’s plea should further serve as an example for those who would consider exploiting the processes in place regarding public foreclosures,” said J. Britt Johnson, Special Agent in Charge of the FBI Atlanta Field Office. “The intent of the Sherman Act was to provide a level and competitive field within commerce and the FBI intends to enforce these types of violations.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for a Sherman Act charge may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine. A count of conspiracy to commit mail fraud carries a maximum penalty of 20 years in prison and a fine of $250,000 for individuals. The fine may be increased to twice the gross gain the conspirators derived from the crime or twice the gross loss caused to the victims of the crime.
The investigation is being conducted by the Antitrust Division’s new Washington Criminal II Section and the FBI’s Atlanta Division, with the assistance of the Atlanta Field Office of the Housing and Urban Development Office of Inspector General and the U.S. Attorney’s Office for the Northern District of Georgia. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions in Georgia should contact the Antitrust Division at 404-331-7113, call the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, or visit www.justice.gov/atr/contact/newcase.htm.
Today’s charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
Former New Mexico Detective Pleads Guilty to Sexually Assaulting Police Department InternRead the Press Release
Michael Garcia, a former detective with the Las Cruces Police Department (LCPD) in Las Cruces, N.M., who focused on child abuse and sex crimes investigations, pleaded guilty today in federal court to a one count information charging Garcia with violating the civil rights of an LCPD student intern when he sexually abused her while on duty.
According to court documents, as a detective, Garcia worked with students who participated in Las Cruces High School’s Excel program, through which students interned at the LCPD. On or about May 4, 2011, Garcia took the victim on a ride-along in his department-issued vehicle to visit a crime scene. Afterward, instead of driving the victim directly back to the police department so that she could retrieve her belongings and go home, Garcia drove her to a secluded location where he sexually assaulted her.
As part of the plea agreement, Garcia acknowledged that he knew that his actions were against the law and that the victim did not consent to his behavior.
“The defendant exploited his position as a sex crimes detective in a most deplorable way,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Civil Rights Division will continue to vigorously prosecute law enforcement officers who use their authority to engage in sexual abuse. We commend the victim for having the courage to come forward, and we are thankful for law enforcement officers in this case, as well as the vast majority of others, who support and help victims of crime.”
In addition to a prison sentence, the terms of the plea agreement require Garcia to forfeit his law enforcement certification and comply with federal and state sex offender registration requirements. A sentencing hearing has not yet been set.
This case is being investigated by the Las Cruces Resident Agency of Albuquerque Division of the FBI and the LCPD and is being prosecuted by Assistant U.S. Attorneys Mark T. Baker and Holland S. Kastrin for the District of New Mexico and Trial Attorney Fara Gold of the Justice Department’s Civil Rights Division.
Former Long-Time Treasurer of Fullerton Teamsters Pleads Guilty to Embezzlement from Union and Filing False Tax ReturnRead the Press Release
SANTA ANA, California – The former treasurer of the Fullerton-based International Brotherhood of Teamsters, Graphic Communications Conference, District Council Number 2, has pleaded guilty to embezzlement from the union and filing a false tax return.
Fred W. Correll, 79, of Fullerton, who was the secretary-treasurer of the union since 1970, pleaded guilty to the two felony counts on Tuesday afternoon.
When he pleaded guilty, Correll admitted that during 2009 he embezzled $10,000 from the union for his personal use. Correll also admitted that he filed a false tax return for himself in 2009 when he failed to report that income on the 2009 tax return that he filed with the Internal Revenue Service.
Correll resigned from the union three years ago.
Correll is scheduled to be sentenced on August 4 by United States District Judge James V. Selna. At sentencing, Correll faces a statutory maximum penalty of eight years in federal prison and a fine of up to $500,000.
Correll’s son-in-law, Ryan W. Sherard, the former President of the union, is scheduled to plead guilty to filing a false Labor form on Wednesday, April 23. Sherard, 43, of Fullerton, has agreed to plead guilty to making a false statement in a financial report of a labor union, a misdemeanor offense that carries up to one year in prison. In his plea agreement, Sherard admits he failed to report money – approximately $9,600 – that he received from the union.
This case was investigated by the Department of Labor – Office of the Inspector General and IRS – Criminal Investigation.Release No. 14-046
Former Las Cruces Detective Pleads Guilty to Sexually Assaulting Police Department InternRead the Press Release
ALBUQUERQUE – Michael Garcia, a former detective with the Las Cruces Police Department (LCPD) in Las Cruces, N.M., who focused on child abuse and sex crimes investigations, pleaded guilty today in federal court to a one count information charging Garcia with violating the civil rights of an LCPD student intern when he sexually abused her while on duty.
According to court documents, as a detective, Garcia worked with students who participated in Las Cruces High School’s Excel program, through which students interned at the LCPD. On or about May 4, 2011, Garcia took the victim on a ride-along in his department-issued vehicle to visit a crime scene. Afterward, instead of driving the victim directly back to the police department so that she could retrieve her belongings and go home, Garcia drove her to a secluded location where he sexually assaulted her.
As part of the plea agreement, Garcia acknowledged that he knew that his actions were against the law and that the victim did not consent to his behavior.“The defendant exploited his position as a sex crimes detective in a most deplorable way,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Civil Rights Division will continue to vigorously prosecute law enforcement officers who use their authority to engage in sexual abuse. We commend the victim for having the courage to come forward, and we are thankful for law enforcement officers in this case, as well as the vast majority of others, who support and help victims of crime.”
In addition to a nine-year prison sentence, the terms of the plea agreement require Garcia to forfeit his law enforcement certification and comply with federal and state sex offender registration requirements. A sentencing hearing has not yet been set.
This case was investigated by the Las Cruces Resident Agency of Albuquerque Division of the FBI and the LCPD and is being prosecuted by Assistant U.S. Attorneys Mark T. Baker and Holland S. Kastrin for the District of New Mexico and Trial Attorney Fara Gold of the Justice Department’s Civil Rights Division.
Former Hidalgo County Sheriff’s Commander Enters Guilty PleaRead the Press Release
McALLEN, Texas – Jose A. Padilla, 54, of Weslaco, has entered a plea of guilty for one count of receipt of a bribe, announced United States Attorney Kenneth Magidson. Padilla was a former deputy commander at the Hidalgo County Sheriff’s Office and served under the leadership of former sheriff Guadalupe “Lupe” Trevino.
Padilla has admitted that during 2011 and 2012, he received cash from alleged drug trafficker Tomas “El Gallo” Gonzalez. In exchange for the cash payments, Padilla performed various tasks for Gonzalez and provided information to Gonzalez related to ongoing law enforcement activities.
U.S. District Judge Randy Crane accepted Padilla’s plea today and has set sentencing for July 17, 2104. At that time, he faces a maximum of 10 years in federal prison and a potential maximum fine of $250,000, or twice the amount he received.
He was permitted to remain on bond pending that hearing.
The investigation leading to the charges was conducted by Homeland Security Investigations, Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation and Texas Department of Public Safety, Rangers Division. Assistant United States Attorneys James Sturgis and Anibal Alaniz prosecuted the case.
Former Employee Pleads Guilty to Federal Charge in $44,000 Theft from Non-Profit-Defendant Used Employer’s Credit Card for Personal Expenses-Read the Press Release
WASHINGTON - Thomas Webb, 33, of Hyattsville, Md., pled guilty today toa federal charge stemming from the theft of more than $44,000 from a non-profit organization where he worked as an administrative assistant, U.S. Attorney Ronald C. Machen Jr. announced.
Webb pled guilty in the U.S. District Court for the District of Columbia to one count of interstate transportation of stolen property. The Honorable James E. Boasberg scheduled sentencing for June 26, 2014. Under federal sentencing guidelines, Webb faces a likely range of six to 12 months of incarceration, as well as a fine of up to $20,000. Under the plea agreement, Webb must pay restitution to the non-profit. He also is subject to a forfeiture money judgment.
According to the government’s evidence, the not-for-profit organization, identified in court documents as “Company A,” provides financial assistance to underinsured patients being treated for chronic or life-threatening illnesses who are unable to afford the full cost of care. Webb began working as an administrative assistant there in or around January 2013.
Webb was responsible for processing financial transactions, including reimbursing employees for work-related expenses. In connection with these duties, the non-profit granted Webb access to its bank account and its general ledger information systems. Almost immediately after hiring him, the non-profit issued Webb a company credit card.
Beginning in February 2013, Webb began using his company-issued credit card for personal expenses, in spite of his employer’s explicit policies against such use. Between February and July of 2013, Webb generated a total amount of $44,457 in personal expenses on the credit card, including personal expenses related to travel, transportation, hotel lodgings, retail purchases, meals, food, and entertainment. Webb paid the monthly balances of his company-issued credit card directly from the non-profit’s bank account. He never made any attempt to reimburse the non-profit for any of the personal expenditures.
In announcing the plea, U.S. Attorney Machen commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Donna Galindo, Corinne Kleinman, and Angela Lawrence; Criminal Investigator Juan Juarez, who investigated the case; Assistant U.S. Attorney Zia Faruqui, who assisted with forfeiture issues, and Assistant U.S. Attorney Richard DiZinno, who investigated and prosecuted the matter.
14-087Former Denver Woman Appears on Charges Related to Aggravated Identity TheftRead the Press Release
DENVER - Libia Hernandez-Garcia, age 60, of Miami, Florida, formerly of Denver, Colorado, appeared yesterday on charges related to aggravated identity theft and tax fraud, visa fraud and social security fraud, federal authorities announced. Hernandez-Garcia was originally indicted by a federal grand jury in Denver on May 21, 2013, which remained sealed until her arrest in Miami, Florida on February 26, 2014. A superseding indictment was filed on February 25, 2014. She made her initial appearance yesterday, April 16, 2014, before U.S. Magistrate Judge Kristen L. Mix, where she was advised of her rights and the charges pending against her. Her indicted co-conspirator, Diana Aleph Aguilar Hernandez, made her initial appearance on March 13, 2014, on one count of visa fraud.
According to the charging documents, from 2009 through 2011, Hernandez-Garcia made five false claims against the Internal Revenue Service which she knew to be false by preparing and filing federal income tax returns for several individuals where the claims for income tax refunds were fraudulent. Furthermore, for her personal 2009 through 2011 federal income tax returns, she submitted false claims for federal income tax returns totaling over $16,000.
From 2009 through 2012, Hernandez-Garcia misused the Social Security Number (SSN) of several individuals by causing the filing of individual income tax returns which falsely included the name and SSN, as a dependent, for the person identified as the filer of the tax return. By misusing the SSN in such a manner, Hernandez-Garcia further allegedly committed aggravated identity theft.
From 2008 through 2011, Hernandez-Garcia assisted in the preparation and filing with the IRS the U.S. Individual Income Tax Return of her husband for tax years 2007 through 2010 which were materially false and fraudulent. Particularly, dependents were claimed on her husband’s tax returns when in fact the dependents were not a person who could lawfully be claimed as a dependent of his.
Furthermore, on two separate occasions, one in 2008 and the second in 2011, Hernandez-Garcia made false statements under penalty of perjury in Petitions for a Nonimmigrant Worker packages. Such statements included: the beneficiary of the H-1B visa petition, Diana Aleph Aguilar Hernandez, would be employed by a local hotel operating under a national brand name as Operations Manager; Libia Hernandez was an authorized official to make such a petition on behalf of that hotel; that Libia Hernandez was authorized by that hotel to act on behalf of the company in labor certification matters; and the rate of pay for the beneficiary would be $51,000 and $35,425 a year, respectively.
Hernandez-Garcia was charged with; two counts of visa fraud, which carries a penalty of not more than 10 years in federal prison, and a fine of up to $250,000 per count; five counts of false claims, which carries a penalty of not more than 5 years in federal prison, and a fine of up to $250,000, per count; thirteen counts of misuse of a SSN, which carries a penalty of not more than 5 years in federal prison, and a fine of up to $250,000, per count; six counts of aggravated identity theft claims, which carries a penalty a mandatory 2 years in federal prison, and a fine of up to $250,000, per count; four counts of aiding in a false tax return, which carries a penalty of not more than 3 years in federal prison, and a fine of up to $100,000, per count.
This case was investigated by the Internal Revenue Service – Criminal Investigation, Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), Bureau of Diplomatic Security Service (DSS), and Office of the Inspector General – Social Security Administration (SSA OIG).
This case is being prosecuted by Assistant U.S. Attorney Robert Brown.
The charges contained in the indictment are allegations, and the defendant is presumed innocent until proven guilty.
Former County Commissioner Convicted of Attempting to Entice MinorRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Freeman Eugene Jockisch, 69, of Theodore, was convicted this morning of attempting to entice a 15-year old girl on the Internet. Jockisch, formerly a Mobile County Commissioner, was convicted following a one-day trial.
The evidence at trial showed that Jockisch responded to two Internet personal ads in July and November, 2013 from what he believed to be a 15-year old girl. Jockisch was arrested when he showed up to meet the girl in Saraland. The investigation was part of an undercover operation.
United States District Judge Callie V.S. Granade set Jockisch’s sentencing for July 15th at 1:00 p.m. Jockisch faces a mandatory sentence of ten years up to life in prison and a fine of up to $250,000. Following his release, Jockisch is subject to supervision by the United States Probation Office for the rest of his life.
The case was investigated by the Saraland Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Maria Murphy and Assistant United States Attorney Sean Costello handled the prosecution on behalf of the United States.
Former Certified Nursing Assistant and Co-Conspirators Sentenced to Prison for Identity Theft Tax SchemeRead the Press Release
Kimberly Banks, Donalene Mosely and Arneshia Austin were sentenced today in Albany, Ga., to serve 192 months, 37 months and 21 months in prison, respectively, for crimes relating to filing fraudulent income tax returns using stolen identities, announced Assistant Attorney General Kathryn Keneally of the Justice Department’s Tax Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia. After a weeklong jury trial, Banks was convicted on Jan. 14, 2014, of conspiring to file false federal income tax returns in the names of stolen identities, wire fraud, aggravated identity theft and theft of government money. Mosely and Austin each pleaded guilty to conspiracy prior to trial. In addition to their terms of imprisonment, the court ordered Banks, Mosely and Austin to pay $275,134 in restitution and to serve three years supervised release.
According to court documents and evidence introduced at trial, Banks, who is a former certified nursing assistant, obtained the names and Social Security numbers of nursing home patients from her employer and conspired with Mosely, Austin and others to use the stolen identifying information to steal money from the government in the form of tax refunds. Several victims testified that they did not consent to the use of their names and Social Security numbers on these tax returns and testified that they did not receive any money from refunds generated by the false tax returns filed with the Internal Revenue Service (IRS).
The tax returns at issue were filed from internet protocol addresses assigned to Banks, and the fraudulent tax refunds were deposited onto prepaid debit cards that were mailed to addresses belonging to Banks, Mosely, Austin and others. The evidence also revealed that Banks and others used the stolen proceeds to make payments on their car loans and on their mortgages, to throw a red-carpet party and to buy products online. During the course of the conspiracy, Banks and her co-conspirators prepared 187 fraudulent tax returns that claimed over $600,000 in false refunds.
The case was investigated by special agents of the IRS-Criminal Investigation with the assistance of the Crisp County Sheriff’s Office. Trial Attorneys Kimberly Shartar and Alexander Effendi of the Tax Division prosecuted the case.
More information about the Tax Division and its enforcement efforts can be found at the division website.
Former CEO of Simi Valley Company Guilty of Bilking Navy by Selling $2.6 Million in Knock-Off Batteries Used on Aircraft Carriers and SubsRead the Press Release
LOS ANGELES – A federal jury has convicted the former CEO of the Simi Valley-based battery distributor Powerline Inc. of defrauding the government by selling more than $2.6 million in cheap, knock-off batteries to the U.S. Department of Defense.
Didier De Nier, 63, who lived in Simi Valley until he fled the United States nearly two years ago, was found guilty yesterday of five counts of wire fraud and one count of conspiracy to defraud the United States.
From 2004 to 2011, Powerline, which also did business as Birdman Distribution Corp, sold more than 80,000 batteries and battery assemblies that the Navy used for emergency back-up power aboard nuclear aircraft carriers, minesweepers and ballistic submarines. The batteries were installed on numerous Naval vessels.
According to the evidence presented during a six-day trial, De Nier and his employees disguised the bogus nature of the batteries by affixing counterfeit labels that falsely identified the batteries as originating from approved manufacturers. Powerline employees also used chemicals to remove “Made in China” markings from the knock-off batteries.
De Nier’s ex-wife Lisa De Nier, who had served for decades as Powerline’s vice president of sales, previously pleaded guilty in this case to conspiracy to defraud the government.
De Nier is scheduled to be sentenced by United States District Judge Dolly M. Gee on August 18. At sentencing, De Nier faces a statutory maximum sentence of 110 years in federal prison.
Lisa De Nier faces up to 10 in prison. She is expected to be sentenced by Judge Gee later this year.
Shortly after federal agents searched Powerline’s offices in July 2012, De Nier fled the Los Angeles area to live aboard his yacht near the Caribbean island of St. Martin, a French territory. In October 2013, federal agents arrested De Nier, a dual French-U.S. citizen, after he had sailed on his yacht to the U.S. Virgin Islands.The investigation in this case was conducted by the Defense Criminal Investigative Service and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The Defense Logistics Agency and the Defense Contract Audit Agency provided significant support to this investigation.
Release No. 14-045
Felon in Possession of 81 Firearms and Methamphetamine Pleads GuiltyRead the Press Release
CHARLESTON, W.Va. – A Belle man who possessed 81 firearms at his Simmons Creek Road residence pleaded guilty today to a federal firearm indictment, announced U.S. Attorney Booth Goodwin. Dorsey Woolwine, Jr., 63, pleaded guilty in federal court in Charleston to being a felon in possession of firearms.
In March of 2012, police searched Woolwine’s home and property and seized 29 firearms including a sawed-off rifle. A year later, another search warrant was executed at Woolwine’s residence. This time, methamphetamine, scales, cash, and 52 additional firearms, including at least two stolen weapons, were discovered and seized. Woolwine had been previously convicted in Kanawha County for unlawful wounding, which precluded him from possessing any firearm. Woolwine faces up to 10 years in federal prison when he is sentenced on August 5, 2014.
Metropolitan Drug Enforcement Network Team (MDENT) and the West Virginia State Police conducted the investigation. Assistant United States Attorney Joshua Hanks is in charge of the prosecution.
El Departamento de Justicia Llega a un Acuerdo Sobre una Queja de Discriminación Relacionada a Inmigración Contra Potter ConcreteRead the Press Release
WASHINGTON – El Departamento de Justicia llegó a un acuerdo hoy con Potter Concrete, una empresa con sede en Dallas, el cual resuelve los reclamos de que la empresa cometió un patrón o práctica de abuso de documentos en violación de la Ley de Inmigración y Nacionalidad (INA por sus siglas en inglés).
La investigación del departamento, la cual se inició basado en una remisión del Servicio de Cuidadanía e Inmigracaion de los Estados Unidos (USCIS por sus siglas en inglés), concluyó que Potter Concrete sometió a los nuevos empleados que no eran ciudadanos estadounidenses a exigencias ilegales de documentos específicos emitidos por el Departamento de Seguridad Nacional, mientras que a los ciudadanos estadounidenses se les permitía presentar los documentos de su elección. La investigación también reveló que Potter Concrete usaba el sistema E-verify selectivamente para confirmar que las personas que Potter Concrete sabían o creían que no eran ciudadanos estadounidenses o que habían nacido en el extranjero, cumplían con los requisitos de empleo. La provision anti-discriminación de la INA prohíbe que los empleadores impongan cargas documentales adicionales a los empleados con autorización de trabajo durante el proceso de contratación y verificación de elegibilidad de empleo basado en su estatus de inmigración u origen nacional.
Conforme al acuerdo de resolución, Potter Concrete pagará $115,000 en sanciones civiles a los Estados Unidos, participará en adiestramiento sobre la provision anti-discriminación de la INA, revisará las políticas de verificación de elegibilidad de empleo, y estará sujeta a supervisión de sus prácticas de verificación de elegibilidad de empleo por un año.
"Los empleadores no pueden crear obstáculos discriminatorios para aquellas personas con autorización de trabajo que no tienen ciudadanía estadounidense o que son ciudadanos naturalizados, durante el proceso de verificación de elegibilidad de empleo, lo cual incluye el programa E-verify", expresó la Asistente Interina del Procurador General de la División de Derechos Civiles, Jocelyn Samuels. "El Departamento de Justicia se compromete a proteger a los ciudadanos estadounidenses y a todos los inmigrantes con autorización de trabajo del abuso de documentos".
La Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a Inmigración (OSC por sus siglas en inglés) es responsable de exigir el cumplimiento de la provision anti-discriminación de la INA. La ley prohíbe, entre otras cosas, la discriminación basada en el estatus de inmigración u origen nacional en la contratación, despido o reclutamiento o recomendación a cambio de un pago; abuso de documentos; y represalias o intimidación. Este asunto fue manejado por Abogado de la OSC, Ronald Lee, y por Especialista de Igualdad en el Empleo de la OSC, Alexandra A. Vince. Para más información sobre las protecciones contra la discriminación en el empleo conforme a las leyes de inmigración o para como registrarse para un seminario de internet gratis, llame a la línea directa del empleado de la OSC al 1-800-255-7688 (1-800-237-2515, TTY para las personas con dificultades auditivos), llame a la línea directa de empleadores de la OSC al 1-800-255-8155 (1-800-237-2515, TTY para las personas con dificultades auditivos), o visite el sitio web en www.justice.gov/crt/about/osc.
Los solicitantes o trabajadores que creen que han sido sometidos a requisitos documentales distintos basados en su cuidadanía, estatus de inmigración u origen nacional, o a discriminación basada en su cuidadanía, estatus de inmigración u origen nacional en la contratación, despido, o reclutamiento o recomendación, deben comunicarse con la línea directa del empleado indicada arriba para recibir ayuda.
Easton Man Charged with Possession of Child PornographyRead the Press Release
Matthew Cenac, 23, of Easton, PA, was charged today by Information with the possession of child pornography, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of ten years in prison.
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Sherri A. Stephan.
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.
Click here to view the indictment
An Indictment/Information/Criminal Complaint 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, 215-861-8525Eagle Pass Woman Sentenced to Federal Prison for Faking Her Own Kidnapping for Ransom MoneyRead the Press Release
In Del Rio this afternoon, 25-year-old Julia Esmeralda Garza of Eagle Pass, TX, was sentenced to 11 months in federal prison followed by three years of supervised release for her role in a fraudulent kidnapping scheme announced United States Attorney Robert Pitman and Federal Bureau of Investigation Acting Special Agent in Charge Aaron C. Rouse, San Antonio Division.
According to court records, on May 8, 2013, Garza used her cellphone to make phone calls and send text messages to a friend in attempt to obtain approximately $700 in ransom money. During the scheme, Garza fraudulently claimed that she had been kidnapped, threatened and was being held against her will in Mexico. The friend notified local police of the potential kidnapping. On November 20, 2013, Garza pleaded guilty to one count of wire fraud.
“This case demonstrates the FBI’s commitment to investigate and seek prosecution of individuals, who participate in fraudulent schemes, which compromise public safety by diverting valuable law enforcement resources away from true victims,” stated FBI ASAC Rouse.
This matter was investigated by the Federal Bureau of Investigation together with Eagle Pass Police Department. Assistant United States Attorney Lewis Thomas prosecuted this case on behalf of the Government.
Detroit Man Pleads Guilty to Clean Air Act CrimesRead the Press Release
A 48-year-old Detroit man pleaded guilty today to criminal violations of the Clean Air Act, U.S. Attorney Barbara L. McQuade announced today.
Joining McQuade in the announcement was Randall Ashe, the Special Agent-in-Charge of the U.S. Environmental Protection Agency’s criminal enforcement program in Michigan.
Terry Williams pleaded guilty before U.S. District Judge Robert H. Cleland. Williams admitted to violating the Clean Air Actin connection with dismantling and scrapping the former AMC headquarters on Plymouth Road in Detroit. In 2012, Williams hired crews to remove salvageable metal from the facility. They disturbed asbestos-containing materials and released ozone-depleting substances. Williams’ crews dismantled at least 50 air conditioning units, including many large rooftop units, releasing R-22 refrigerant into the environment.
Williams also arranged for other fixtures on the property to be scrapped, ordering crews to cut and remove pipes he knew to be insulated with regulated asbestos-containing insulation. These insulated pipes were removed without following the work practice requirements under federal asbestos regulations, including failing to properly wet the asbestos containing materials to prevent asbestos fibers from becoming airborne and failing to secure the materials for proper disposal.“Exposure to asbestos can lead to serious diseases, and the defendant’s unsafe asbestos removal practices put the health of his workers and the public at risk,” said Ashe. “This defendant also chose to ignore the hazards of releasing ozone depleting substances, potentially causing harm to both human health and the environment. Today’s guilty plea demonstrates that those who knowingly engage in such conduct will be prosecuted to the fullest extent of the law."
“Prosecutions like this one are important to protect the people of Detroit from contaminants in the air,” McQuade said. “Environmental enforcement is a high priority for our office so that we can preserve Michigan’s best assets – its clean air and water.”
The crimes to which the defendant pleaded guilty are punishable by a maximum sentence of up to 5 years imprisonment, a $250,000 fine, or both.
The case was prosecuted by the U.S. Attorney’s Office in the Eastern District of Michigan by Assistant U.S. Attorney Jennifer Gorland and Special Assistant United States Attorney David Mucha. The case was investigated by agents of the Environmental Protection Agency’s Criminal Investigation Division.
Derek Rhinehart Sentenced to Prison for Drug ChargesRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings on March 27, 2014 before U.S. District Judge Susan Watters, DEREK DEFOREST RHINEHART was sentenced to 60 months imprisonment and 5 years supervised release for possession of methamphetamine with intent to distribute.
The prosecution was part of Project Safe Bakken, a cooperative effort between federal and state prosecutors and federal, state, local, and tribal law enforcement agencies in Montana and North Dakota.
In an Offer of Proof filed by Assistant U.S. Attorney Joseph Thaggard, the government stated that between October 2012 and late March 2013, Tomas Alvarado and Eliseo Martinez conspired to distribute and did, in fact, distribute, large quantities of methamphetamine in Billings, Montana and other areas in Eastern Montana, including the Bakken oil fields. The distribution of methamphetamine pursuant to that conspiracy ended on or March 11-12, 2013,
Alvarado and Martinez were arrested on federal drug trafficking charges, although the conspiracy continued for a period of time.
Alvarado and Martinez used a number of subordinates to distribute the methamphetamine. The Defendant was one such subordinate.
Alvarado has stated he fronted multiple pounds of methamphetamine to the Defendant for distribution.
On August 26, 2013, the Defendant was arrested in connection with this indictment. Following his arrest, the Defendant was provided a Miranda warning and agreed to speak to members of an FBI Task Force regarding the crimes charged in the indictment.
The Defendant admitted that met Alvarado near the end of 2012 and was recruited to sell methamphetamine for Alvarado.
The Defendant stated that, over the period of time that preceded Alvarado's arrest in March 2013, he received approximately 16 ounces of methamphetamine from Alvarado. The Defendant stated the methamphetamine was "fronted" (provided on credit) to him and that he distributed methamphetamine in Billings and Colstrip, Montana from the amounts of the drug provided to him by Alvarado.
The term pure methamphetamine refers to the purity contained in the transacted amount which is usually "cut" with inert ingredients that make the actual product less pure but more profitable as drugs are generally sold based on quantity not quality.
Dearborn Heights Doctor Convicted of Health Care FraudRead the Press Release
A Dearborn Heights doctor was convicted today in federal court on charges of illegal drug distribution, health care fraud and money laundering, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by James Allen, Acting Special Agent in Charge, Drug Enforcement Administration, Detroit Division, and Lamont Pugh, III, Special Agent in Charge, Department of Health and Human Services Office of Inspector General ("HHS-OIG").
U.S. District Judge Arthur J. Tarnow found Dr. Basil Qandil, 36, guilty on all 34 counts in the indictment.
The evidence presented during the two-week trial showed that between 2011 and 2013, Qandil prescribed more than 3.7 million dosage units of controlled substances outside the course of legitimate medical practice. The prescriptions were issued after either a cursory examination or no examination at all. He wrote unlawful prescriptions for narcotic drugs including Oxycodone and Vicodin, which were resold on the street market or used by addicted patients.
The evidence also showed that Qandil committed health care fraud by submitting all new patients to medical tests, including a medically unnecessary pulmonary function test, which were then billed to Medicare or other health insurance programs. Qandil transferred more than $1.5 million in proceeds from his crimes to an overseas bank account in Amman, Jordan.
United States Attorney Barbara L. McQuade stated, “Diversion of prescription drugs causes significant harm. The number of fatal overdoses from prescription drugs in the United States last year was more than six times the number of fatal overdoses from all other illegal drugs combined.”
The case was prosecuted by Assistant U.S. Attorneys Regina R. McCullough and Wayne F. Pratt.Davenport Man Sentenced on Federal Felon in Possession ChargeRead the Press Release
DAVENPORT, IA- On April 17, 2014, Isrrael Anthony Santiago, Jr., age 25, of Davenport, Iowa, was sentenced by United States District Court Chief Judge James E. Gritzner to 46 months imprisonment, after pleading guilty to felon in possession of a firearm, announced United States Attorney Nicholas A. Klinefeldt. Santiago was also ordered to serve three years of supervised release and pay $100 towards the Crime Victims Fund. In determining Santiago’s sentence, the district court noted that on March 1, 2012, Santiago displayed a handgun to a victim at a Davenport residence, and later fled from responding police officers armed with the same handgun.
This case was being prosecuted by the United States Attorney’s Office for the Southern District of Iowa. This case was investigated by the Bureau of Alcohol, Tobacco and Firearms and the Davenport Police Department.
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Dallas Woman Sentenced to Five Years in Federal Prison on Wire Fraud Conspiracy ConvictionRead the Press Release
Ran Ponzi Scheme Involving Medical Insurance Investments
DALLAS — Gloria Ann Solomon, 71, of Dallas, was sentenced today by U.S. District Judge Jane J. Boyle to five years in federal prison, following her guilty plea in July 2013 to a felony information charging one count of wire fraud; restitution will be determined at a later date. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
In a related case, Duncan MacDonald, 50, also of Dallas, was sentenced earlier this month to five years in federal prison. He also pleaded guilty to an Information charging the same offense.
According to documents filed, from at least 2006 and continuing into at least September 2012, MacDonald was President and Director of Global Corporate Alliance, Inc. (GCA). MacDonald operated GCA out of offices in Addison and Euless, Texas. He hired co-conspirator Solomon in January 2007 as GCA’s Chief Administrative Officer.
GCA managed the North American Consumer Alliance (NACA), a not-for-profit member association that created and packaged insured benefit association healthcare programs and policies administered to corporations, organizations and other entities. GCA sold the healthcare policies throughout the U.S. and maintained a conservative management fee. It collected fees called “overages” that were in excess of the conservative management fee.
In 2008, MacDonald created GCA’s “Overage Program” to sell interests in the overages through “Overage Purchase Agreements.” An investor’s potential return was directly related to the number of people who enrolled in a healthcare plan by purchasing a healthcare policy from CGA. GCA would pay the investor for each new healthcare plan enrollee. MacDonald installed Solomon as the program’s manager and she worked with MacDonald in conducting GCA’s activities regarding the Overage Program.
MacDonald initially planned to have only a single person invest in the Overage Program, but when one couldn’t be found, GCA fractionalized the program to make it available for multiple investors to provide smaller amounts of funds. GCA contracted with a sales agent to solicit individuals to invest, and the sales agent used information regarding the Overage Program that was provided by MacDonald and Solomon. That information included the number of current and projected healthcare plan enrollees that would drive investors’ potential returns.
MacDonald admits that he significantly inflated the current and projected enrollment figures by the thousands in an attempt to sell the Overage Program to investors. He and Solomon knew that the figures were false and that the sales agent would relay the figures to investors he was soliciting.
MacDonald also personally acquired investors for the Overage Program. In fact, MacDonald and Solomon provided false information to persuade one particular investor to invest $2 million in the Overage Program. They then used this money to make payments to existing program investors.
When GCA had difficulty making timely payments to Overage Program investors, MacDonald authorized Solomon to respond to investor complaints and inquiries with excuses for the delayed payments. Solomon sent these emails from accounts that were created for fictitious GCA employees.
The Overage Program did not generate any income or revenue. Less than 50 people actually bought any healthcare policies during the lifetime of the program. MacDonald and Solomon admit that any payments made to existing investors came from money that GCA received from new investors in the program.
In a parallel action, the U.S. Securities and Exchange Commission (SEC) charged both defendants with securities fraud and conducting an unregistered securities offering while acting as unregistered broker-dealers. That complaint alleges that GCA had raised nearly $10 million from investors and returned about $2 million to investors in the form of Ponzi payments. On August 8, 2013, the district court entered Agreed Partial Judgments against both defendants, enjoining them from future violations of federal securities laws. The SEC continues to seek disgorgement plus prejudgment interest and civil penalties against both defendants.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, which was established in 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
The FBI conducted the investigation. The SEC’s Fort Worth Regional Office also provided valuable assistance. Assistant U.S. Attorney Chris Stokes led the prosecution.