Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
4 April 2014
Alabama Sheriff’s Investigator Pleads Guilty to Assaulting Handcuffed Man at Macon County JailRead the Press Release
Montgomery, Alabama - J. Keith McCray, a criminal investigator with the Macon County, Ala., Sheriff’s Office, pleaded guilty in federal court today to assaulting a handcuffed man at the county jail, resulting in bodily injury.
McCray, 41, of Tuskegee, Ala., was at his home on July 4, 2013, when the victim, a door-to-door salesman, spoke with McCray about purchasing an alarm system. McCray indicated that he was not interested in purchasing a system. As the victim began to leave McCray’s property, McCray unlawfully seized the victim at gunpoint and took him to the Macon County Jail. During the plea hearing, defendant McCray admitted that at the jail, he struck the victim four times in the face and head while the victim was handcuffed and posed no threat.
McCray pleaded guilty to one felony count of deprivation of rights under color of law. At sentencing, McCray faces a maximum sentence of ten years in prison and a $250,000 fine.
“The defendant attacked an innocent citizen who was simply trying to earn a living on the day of the incident. When he assaulted the defenseless victim, he violated the trust put in him by the community as well as the law,” said Jocelyn Samuels, Acting Assistant Attorney General for Civil Rights. “The Department will continue to hold accountable those who engage in such actions.”
“While we look to law enforcement to maintain the safety and security of our citizens, their position of authority does not give them the right to act outside the bounds of the law,” stated George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama. “We entrust them to protect and serve our communities. While most members of law enforcement serve honorably, McCray breached this trust and must be held accountable. Failure to do so would discredit the noble service of every other officer, and weaken the public’s trust in those who are sworn to protect them.”
This case was investigated by the FBI and the Alabama Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Jerusha T. Adams of the Middle District of Alabama and Trial Attorney Chiraag Bains of the Justice Department’s Civil Rights Division.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617
3 April 2014
West Valley Man Sentenced to 15 Years in Federal Prison after Pleading Guilty to Possession of Child PornographyRead the Press Release
SALT LAKE CITY - U.S. District Judge Dee Benson sentenced Shawn William Turley, age 50, of West Valley City to 15 years in prison Wednesday afternoon in U.S. District Court in Salt Lake City. Turley, who pleaded guilty in January to possession of child pornography, will be on supervised release for life when he finishes his federal sentence.
The federal sentencing guideline range in the case was 121-151 months. As a part of a plea agreement reached in the case, a 15-year sentence was recommended to the Court. Turley faced the significant sentence because of his prior convictions.
As a part of the plea agreement, Turley admitted that Utah Adult Probation and Parole agents conducted a field visit at his residence in July 2013 after a 12-year-old child disclosed that he had been sexually abusing her for a year. The agents located a phone hidden under Turley’s mattress and box springs during the field visit. West Valley City police officers and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations agents joined the investigation. Turley admitted in the plea agreement that his phone contained more than 600 images of prepubescent and pubescent females in sexually suggestive poses.
Turley admitted he obtained the pictures using a peer-to-peer network. As a part of the plea agreement, Turley also admitted to law enforcement officers that he sexually abused the 12-year-old child for approximately one year. He also acknowledged that he was being supervised by Utah Adult Probation and Parole for 1987 convictions for at least one qualifying first-degree felony in Utah’s Fourth District Court in Utah County.
The case was investigated by Utah Adult Probation and Parole, the West Valley City Police Department, and HSI. The case is being prosecuted by the U.S. Attorney’s Office in Salt Lake City.
Weslaco Man Convicted of Marijuana TraffickingRead the Press Release
LAREDO, Texas – Santiago Martinez, 37, of Weslaco, has entered a guilty plea to conspiracy to possess with the intent to distribute in excess of 1,000 kilograms of marijuana, announced United States Attorney Kenneth Magidson.
A Laredo grand jury returned an indictment Dec. 3, 2013, which alleged Martinez acted as a leader and organizer within a drug trafficking organization that purchased and transported marijuana from the United States-Mexico border to regional distributors in Memphis, Tenn., and Tampa, Fla.
According to court documents, the organization used “low boy” trailers and recreational camping trailers with hidden compartments to transport the marijuana, in 300 to 500 kilogram loads, twice per month. Proceeds from the sale and transportation of this marijuana were collected and sent back to South Texas. These proceeds were placed in hidden compartments in tractor trailers or recreational camping trailers or were deposited into numerous bank accounts.
Since 2001, law enforcement has seized more than 5,000 kilograms of marijuana and more than $1.3 million tied to this drug trafficking organization. The largest seizure of marijuana occurred on Jan. 7, 2011, at which time two tractors, hauling “low boy” trailers, arrived approximately one hour apart at the U.S. Border Patrol checkpoint on Highway 1017 east of Hebbronville. Inside hidden compartments in the trailers, agents found more than a 1000 kilograms of marijuana. One tractor was headed to Memphis and the other to Tampa.
The largest cash seizure occurred on Aug. 4, 2012, in Florida when law enforcement officers found seven bundles of money, totaling $831,539 in a lead-lined hidden compartment in a camping trailer.
Martinez admitted he purchased the marijuana and arranged for its transportation and that a number of the vehicles used by this organization were titled in his name. Martinez further admitted he conspired to move more than 10,000 kilograms of marijuana.
Martinez will remain in custody pending his sentencing hearing to be set in the near future. At that time, he faces a mandatory minimum sentence of 10 years and up to life in prison as well as a $10 million fine for the drug conspiracy. The United States is also seeking a money judgment in the amount of $11,555,000 based on the amount of marijuana transported by the organization during the span of the conspiracy.
The case is being investigated by the Drug Enforcement Administration with the assistance of the FBI. Assistant United States Attorney Elizabeth R. Rabe is prosecuting the case.
Vehicle Emmissions Inspector Sentenced to Two Months in Prison for Emissions FraudRead the Press Release
To Date, 14 Defendants Have Been Sentenced For Conducing “Clean Scans”
CHARLOTTE, N.C. – A licensed vehicle emissions inspector was sentenced today to serve two months in prison for his role in providing fraudulent passing emissions scores for more than 200 vehicles, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. In addition to the prison term, U.S. District Judge Max O. Cogburn, Jr. also sentenced Pedro Salmeron, 37, of Charlotte, to two years of supervised release, the first four months of which he must spend under home confinement. Salmeron was also ordered to perform 50 hours of community service and to a pay a $5,000 fine.
U.S. Attorney Tompkins is joined in making today’s announcement by Special Agent in Charge Maureen O’Mara of the U.S. Environmental Protection Agency, Criminal Investigation Division (EPA-CID), Atlanta Area Office; Greg McLeod, Director of the North Carolina State Bureau of Investigation (NC SBI); and Steven M. Watkins, Director of the North Carolina Division of Motor Vehicles License and Theft Bureau (NC DMV L&T).
According to court records and today’s sentencing hearing, Salmeron was employed as a technician for “Carolina Inspections” – also known as “Carolinas Auto Inspection” – located in Charlotte, and was also a vehicle emissions inspector licensed by the state of North Carolina. As a state-licensed emissions inspector, Salmeron was responsible for ensuring the emissions of vehicles he tested met federally mandated emissions requirements. Court records show that from February 2010 through January 2011, Salmeron conducted 201 illegal vehicle emissions inspection and falsely passed vehicles that would have failed emissions inspection. Court records indicate that Salmeron performed these fraudulent tests by entering the information of the vehicle being tested into the state database at Carolinas Auto Inspection, but then connecting the testing equipment to “surrogate” vehicles at the repair shop. The illegal practice of utilizing substitute vehicles for emissions testing is referred to in the industry as “clean scanning.” Salmeron pleaded guilty in August 2012 to one count of conspiracy to violate the Clean Air Act by conducting false vehicle emissions inspections.
The Clean Air Act requires vehicle emission inspections in geographic regions that exceed national ambient air quality standards. According to the EPA, the Charlotte metropolitan area exceeds the 8-hour standard set for Ozone, a potent irritant that can cause lung damage and other types of respiratory problems.
Salmeron was ordered to self-report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
Salmeron is the latest defendant to be sentenced resulting from an investigation of Charlotte-area vehicle emissions inspectors involved in conducing “clean scans.” The multi-agency investigation has netted 14 prosecutions, with defendants serving sentences ranging from 18 months in prison to probation, in addition to home confinement, community service and monetary fines:
1. Jassim Juburi: sentenced to 18 months in prison, three years of supervised release, and a $15,000 fine. (3:12-cr-84). 2. Jose Manuel Cabrera: sentenced to one year and one day in prison, three years of supervised release that includes 100 hours of community service and a $10,000 fine. (3:12-cr-240). 3. Jack Haney: sentenced to six months in prison, one year of supervised release that includes 6 months of home confinement, 50 hours community service, and a $10,000 fine. (3:11-cr-342). 4. Ronald Kinard: sentenced to six months in prison, one year of supervised release that includes 6 months of home detention, and a $10,000 fine. (3:11-cr-340). 5. Mohammed Hafeez Awan: sentenced to six months in prison, three years of supervised release that includes six months of home detention, 50 hours of community service, and a $1,000 fine. (3:12-cr-79). 6. Michel Jule Fernald: sentenced to five months in prison, two years of supervised release that includes five months of home confinement, and a $1,000 fine. (3:12-cr-90). 7. Chucky Cheung: sentenced to five months in prison and three years of supervised release that includes 5 months of home detention. (3:11-cr-160). 8. Tanveer Anwar: sentenced to four months in prison, two years of supervised release that includes four months of home confinement and 50 hours of community service. (3:11-cr-241). 9. Erick Chicas: sentenced to three months in prison, two years of supervised release that includes three months of home confinement, 50 hours of community service, and a $7,500 fine. (3:11-cr-240). 10. Alexander Edwards: sentenced to 60 days in prison, four months of home while serving two years of supervised release, and a $1,000 fine. (3:11-cr-102). 11. Thanh Long Quoc Nguyen: sentenced to two months of home confinement while serving two years of probation, 50 hours of community service, and a $2,000 fine. (3:11-cr-175). 12. Jin Sung Chang: sentenced to two years of probation to include six months of home detention, and a $400 special assessment. (3:11-cr-163). 13. Stephen Dickinson: sentenced to two years of probation and a $1,000 fine. (3:11-cr-101).
U.S. Attorney Tompkins thanked the EPA’s Criminal Investigation Division, NC SBI’s Diversion and Environmental Crimes Unit, and NC DMV License and Theft Bureau, with assistance from the North Carolina Division of Air Quality, Mobile Sources Compliance Branch, for their investigation leading to the 14 prosecutions.
Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte prosecuted the cases.
United States Announces $5.15 Billion Settlement with Anadarko to Pay for Environmental and Toxic Tort LiabilitiesRead the Press Release
Largest Payment for the Clean-Up of Environmental Contamination in History
James Cole, Deputy Attorney General of the United States, Preet Bharara, the United States Attorney for the Southern District of New York (“SDNY”), Robert G. Dreher, the Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resource Division (“ENRD”), and Cynthia Giles, Assistant Administrator of the U.S. Environmental Protection Agency, announced today that the United States has entered into a settlement agreement with the Kerr-McGee Corporation and certain of its affiliates (“New Kerr-McGee”), and their parent Andarko Petroleum Corporation, in a fraudulent conveyance case brought by the United States and co-plaintiff Anadarko Litigation Trust (the “Trust”) in the bankruptcy of Tronox Inc. and its subsidiaries (“Tronox”). The bankruptcy court had previously found, in December 2013, that the historic Kerr-McGee Corporation (“Old Kerr-McGee”) fraudulently conveyed assets to New Kerr-McGee to evade its debts, including its liability for environmental clean-up at contaminated sites around the country. Pursuant to the settlement agreement, the defendants agree to pay $5.15 billion to settle the case, of which approximately $4.4 billion will be paid to fund environmental clean-up and for environmental claims. This is the largest payment ever for the clean-up of environmental contamination.
Deputy Attorney General James Cole said: “Kerr-McGee’s businesses all over this country left significant, lasting environmental damage in their wake. It tried to shed its responsibility for this environmental damage and stick the United States taxpayers with the huge cleanup bill. Through a lot of hard work, we uncovered this fraud and recovered over $5 billion dollars for the American people. This settlement demonstrates the Justice Department’s firm commitment to preventing and combating all forms of fraud and to securing environmental justice.”
Manhattan U.S. Attorney Preet Bharara said: “If you are responsible for 85 years of poisoning the earth, then you are responsible for cleaning it up. That’s why this case was brought. And that’s why the defendants are paying a record $5.15 billion -- to fund that colossal cleanup and to make things right. The company tried to keep its rewards and shed its responsibilities by playing a corporate shell game, putting its profitable oil-and-gas business in a new entity and leaving behind a bankrupt shell holding the environmental liabilities of the defunct, polluting lines of business. The company tried to cleanse its valuable business from its toxic legacy liabilities. Now the defendants will pay to cleanse the land and water.”
Acting Assistant Attorney General Robert G. Dreher said: “Today’s settlement is a just resolution of an historic injustice to the American people and our environment. The money recovered will result in clean-ups of a toxic history the Old Kerr-McGee unsuccessfully tried to walk away from.”
EPA Assistant Administrator Cynthia Giles said: “EPA’s vigorous pursuit of this case will have a big return for communities across the country. Companies that pollute can’t escape their responsibility to pay for the cleanup. EPA will continue to fight for those affected by pollution.”
The Fraudulent Conveyance
According to the complaints of the Government and the Trust and the December 12, 2013, written opinion of U.S. Bankruptcy Judge Allan L. Gropper:
Old Kerr-McGee operated numerous businesses, which included uranium mining, the processing of radioactive thorium, creosote wood treating, and manufacture of perchlorate, a component of rocket fuel. These operations left contamination across the nation, including radioactive uranium waste across the Navajo Nation; radioactive thorium in Chicago and West Chicago, Illinois; creosote waste in the Northeast, the Midwest, and the South; and perchlorate waste in Nevada.
In the years prior to 2005, Old Kerr-McGee concluded that the liabilities associated with this environmental contamination were a drag on its “crown jewel” business, the exploration and production of oil and gas. With the intent of evading these and other liabilities, Old Kerr-McGee created a new corporate entity – defendant New Kerr-McGee – and, through a scheme executed in 2002 and 2005, transferred its valuable oil and gas exploration assets to the new company. The legacy environmental liabilities were left behind in the old company, which was re-named Tronox, and spun off as a separate company in 2006. As a result of these transactions, Tronox was rendered insolvent and unable to address its environmental and other liabilities. In 2009, Tronox went into bankruptcy.
The United States and the bankruptcy estate (now represented by the Trust) brought this lawsuit to hold the defendants accountable and require them to repay the value of the assets fraudulently conveyed from Old Kerr-McGee.
In its decision, the Court found that Old Kerr-McGee transferred assets with the intent to hinder or delay creditors, including particularly environmental creditors, and also transferred those assets for less than their fair value, which left Tronox insolvent, unable to pay its debts when they came due, and undercapitalized. Among other things, the Court concluded that:
- “[T]here can be no dispute that Kerr-McGee acted to free substantially all its assets – certainly its most valuable assets – from 85 years of environmental and tort liabilities.”
- “[O]verhelming” evidence demonstrated that “Defendants devised, carried out and had complete knowledge that [the transfer of Old Kerr-McGee’s oil and gas exploration and production assets was] part of ‘a single integrated scheme’ to create a ‘pure play’ E&P business [referring to the ‘crown jewel’ oil and gas exploration and production business] free and clear of the legacy liabilities.”
- “[T]here is no credibility to the uniform testimony of the inner circle [of Old Kerr-McGee management] that isolation of the oil and gas assets from the chemical business had nothing to do with an effort to cleanse the E&P assets from the legacy liabilities.”
- “The record is replete with evidence that Kerr-McGee misapplied [the] standard [for setting reserves for environmental claims under Generally Accepted Accounting Principles] and thereby understated its liabilities for GAAP purposes.”
- Statements by former Old Kerr-McGee employees that the cost of this environmental pollution would decline after the spin-off were “not rooted in reality.”
- Kerr-McGee had failed to conduct any “contemporaneous analysis of the effect of [its] transactions on the legacy liability creditors,” including the effect it would have on the United States’ environmental claims.
The Settlement
Under today’s settlement agreement, the defendants will pay $5.15 billion to the Trust to settle the fraudulent conveyance case. Pursuant to a 2011 settlement between the United States, certain state, local, and tribal governments, and the bankruptcy estate, approximately 88% of the net proceeds of this litigation will be distributed by the trust to the United States, certain state governments, the Navajo Nation, and environmental trusts created to clean up Tronox’s contaminated sites. The 2011 settlement agreement provides specific percentages of this funding that will be made available to each site.
As a result of these agreements, some of the key recoveries for environmental claims and for clean-up of environmental sites are estimated to be the following:
- $1.1 billion will be paid to a trust charged with cleaning up two dozen other contaminated sites around the country, including the Kerr-McGee Superfund Site in Columbus, Mississippi.
- $1.1 billion will be paid to a trust responsible for cleaning up a former chemical manufacturing site in Nevada that has led to contamination in Lake Mead. Lake Mead feeds into the Colorado River, a major source of drinking water in the Southwest.
- Approximately $985 million will be paid to U.S. EPA to fund the clean-up of abandoned uranium mines on land of the Navajo Nation, where radioactive waste remains from Kerr-McGee mining operations.
- Approximately $224 million will be paid to U.S. EPA for clean-up of thorium contamination at the Welsbach Superfund Site in Gloucester, New Jersey.
- Approximately $217 million will be paid to the federal Superfund in repayment of costs previously incurred by EPA cleaning up the Federal Creosote Superfund Site in Manville, New Jersey.
Additional amounts will be paid to the United States, states, the Navajo Nation, and environmental trusts for other environmental claims and contaminated sites at issue in this case.
The settlement agreement will be lodged with the United States Bankruptcy Court for the Southern District of New York for a period of at least 30 days before it is submitted for the Court’s approval, in order to provide public notice and to afford members of the public the opportunity to comment on the settlement agreement.
Mr. Bharara thanked the Trust, its trustee John C. Hueston, and its counsel, Kirkland & Ellis LLP, for their critical work on this case. Mr. Bharara also thanked the many federal, state, and tribal officials who worked tirelessly on this matter. The litigation of this case was assisted by EPA personnel from around the country; the U.S. Fish & Wildlife Service and Bureau of Land Management of the U.S. Department of the Interior; the National Oceanic and Atmospheric Administration of the U.S. Department of Commerce; the U.S. Nuclear Regulatory Commission; the U.S. Forest Service of the U.S. Department of Agriculture; and the U.S. Department of Defense, as well as numerous state governments and the Navajo Nation.
This case was handled by the Environmental Protection Unit and the Tax and Bankruptcy Unit of the SDNY’s Civil Division. Assistant U.S. Attorneys Robert William Yalen and Joseph Pantoja, along with Alan S. Tenenbaum, Katherine Kane, Frederick S. Phillips, Marcello Mollo, and Erica Pencak of ENRD, are in charge of this case.
United States Announces $5.15 Billion Settlement <br /> of Litigation Against Subsidiaries of Anadarko Petroleum Corp. to Remedy Fraudulent Conveyance <br /> Designed to Evade Environmental LiabilitiesRead the Press Release
WASHINGTON – The United States has entered into a settlement agreement with the Kerr-McGee Corporation and certain of its affiliates (“New Kerr-McGee”), and their parent Anadarko Petroleum Corporation, in a fraudulent conveyance case brought by the United States and co-plaintiff Anadarko Litigation Trust (the “Trust”) in the bankruptcy of Tronox Inc. and its subsidiaries (Tronox), announced Deputy Attorney General James Cole, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resource Division Robert G. Dreher, U.S. Attorney for the Southern District of New York Preet Bharara, and U.S. Environmental Protection Agency Assistant Administrator Cynthia Giles.
The bankruptcy court had previously found, in December 2013, that the historic Kerr-McGee Corporation (“Old Kerr-McGee”) fraudulently conveyed assets to New Kerr-McGee to evade its debts, including its liability for environmental clean-up at contaminated sites around the country. Pursuant to the settlement agreement, the defendants agree to pay $5.15 billion to settle the case, of which approximately $4.4 billion will be paid to fund environmental clean-up and for environmental claims. This is the largest environmental enforcement recovery ever by the Department of Justice.
“Kerr-McGee's businesses all over this country left significant, lasting environmental damage in their wake,” said Deputy Attorney General Cole. “It tried to shed its responsibility for this environmental damage and stick the United States taxpayers with the huge cleanup bill. Through a lot of hard work, we uncovered this fraud and recovered over $5 billion dollars for the American people. This settlement demonstrates the Justice Department’s firm commitment to preventing and combating all forms of fraud and to securing environmental justice.”
“If you are responsible for 85 years of poisoning the earth, then you are responsible for cleaning it up,” said U.S. Attorney Bharara. “That’s why this case was brought. And that’s why the defendants are paying a record $5.15 billion -- to fund that colossal cleanup and to make things right. The company tried to keep its rewards and shed its responsibilities by playing a corporate shell game, putting its profitable oil-and-gas business in a new entity and leaving behind a bankrupt shell holding the environmental liabilities of the defunct, polluting lines of business. The company tried to cleanse its valuable business from its toxic legacy liabilities. Now the defendants will pay to cleanse the land and water.”“Today's settlement is a just resolution of an historic injustice to the American people and our environment,” said Acting Assistant Attorney General Dreher. “The money recovered will result in clean-ups of a toxic history the Old Kerr-McGee unsuccessfully tried to walk away from.”
“EPA’s vigorous pursuit of this case will have a big return for communities across the country,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “Companies that pollute can’t escape their responsibility to pay for the cleanup. EPA will continue to fight for those affected by pollution.”
The Fraudulent Conveyance
According to the complaints of the government and the litigation trust created to pursue Tronox’s fraudulent conveyance claims on behalf its environmental and torts creditors and the Dec. 12, 2013, written opinion of U.S. Bankruptcy Judge Allan L. Gropper:
Old Kerr-McGee operated numerous businesses, which included uranium mining, the processing of radioactive thorium, creosote wood treating, and manufacture of perchlorate, a component of rocket fuel. These operations left contamination across the nation, including radioactive uranium waste across the Navajo Nation; radioactive thorium in Chicago and West Chicago, Illinois; creosote waste in the Northeast, the Midwest, and the South; and perchlorate waste in Nevada.
In the years prior to 2005, Old Kerr-McGee concluded that the liabilities associated with this environmental contamination were a drag on its business, the exploration and production of oil and gas. With the intent of evading these and other liabilities, Old Kerr-McGee created a new corporate entity – defendant New Kerr-McGee – and, through a scheme executed in 2002 and 2005, transferred its valuable oil and gas exploration assets to the new company. The legacy environmental liabilities were left behind in the old company, which was re-named Tronox, and spun off as a separate company in 2006. As a result of these transactions, Tronox was rendered insolvent and unable to pay its environmental and other liabilities. In 2009, Tronox went into bankruptcy.
The United States and the bankruptcy estate (now represented by the Trust) brought this lawsuit to hold the defendants accountable and require them to repay the value of the assets fraudulently conveyed from Old Kerr-McGee.
In its decision, the court found that Old Kerr-McGee transferred assets with the intent to hinder or delay creditors, in particular environmental creditors, and also transferred those assets for less than their fair value, which left Tronox insolvent, unable to pay its debts when they came due, and undercapitalized. Among other things, the court concluded that: “[T]here can be no dispute that Kerr-McGee acted to free substantially all its assets – certainly its most valuable assets – from 85 years of environmental and tort liabilities.”
The Settlement
Under today’s settlement agreement, the defendants will pay $5.15 billion to the trust to settle the fraudulent conveyance case. Pursuant to a 2011 agreement between the United States, certain state, local, and tribal governments, and the bankruptcy estate, approximately 88 percent of the net proceeds of this litigation will be distributed by the trust to the United States, certain state governments, the Navajo Nation, and environmental trusts created to clean up the contaminated sites. The 2011 settlement agreement provides specific percentages of this funding that will be made available to each site.
As a result of these agreements, some of the key recoveries for environmental claims and for clean-up of environmental sites are estimated to be the following:
• $1.1 billion will be paid to a trust charged with cleaning up two dozen contaminated sites around the country, including the Kerr-McGee Superfund Site in Columbus, Miss.
• $1.1 billion will be paid to a trust responsible for cleaning up a former chemical manufacturing site in Nevada that has led to contamination in Lake Mead. Lake Mead feeds into the Colorado River, a major source of drinking water in the Southwest.
• Approximately $985 million will be paid to U.S. EPA to fund the clean-up of approximately 50 abandoned uranium mines in and around the Navajo Nation, where radioactive waste remains from Kerr-McGee mining operations. Additionally, the Navajo Nation will receive more than $43 million to address radioactive waste left at the former Kerr-McGee uranium mill in Shiprock, N.M.
• Approximately $224 million will be paid to U.S. EPA for clean-up of thorium contamination at the Welsbach Superfund Site in Gloucester, N.J.
• Approximately $217 million will be paid to the federal Superfund in repayment of costs previously incurred by EPA’s clean-up of the Federal Creosote Superfund Site in Manville, N.J.
Additional amounts will be paid to the United States, states, Navajo Nation, and environmental trusts for other environmental claims and contaminated sites.
The settlement agreement will be lodged with the U.S. Bankruptcy Court for the Southern District of New York for a period of at least 30 days before it is submitted for the court’s approval, in order to provide public notice and to afford members of the public the opportunity to comment on the settlement agreement.
* * *
The litigation of this case was assisted by EPA personnel from around the country; the U.S. Fish & Wildlife Service and Bureau of Land Management of the U.S. Department of the Interior; the National Oceanic and Atmospheric Administration of the U.S. Department of Commerce; the U.S. Nuclear Regulatory Commission; the U.S. Forest Service of the U.S. Department of Agriculture; the U.S. Department of Defense as well as numerous state governments and the Navajo Nation.
This case was handled by Assistant U.S. Attorneys Robert William Yalen and Joseph Pantoja of the Southern District of New York, and by Alan S. Tenenbaum, Katherine Kane, Frederick S. Phillips, Marcello Mollo, and Erica Pencak of the Justice Department’s Environment and Natural Resource Division.The consent decrees are available at the following link: http://www.justice.gov/enrd/Consent_Decrees.html.
Related Materials:
Fact Sheet
Settlement Proceeds Chart
MapUnilever Pays $4.5 Million for Violating Clean Water Act at Connecticut FacilityRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance, and Commissioner Robert Klee of the Connecticut Department of Energy and Environmental Protection announced that CONOPCO, INC., doing business as UNILEVER HOME & PERSONAL CARE USA, (“Unilever”) was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to three years of probation and a $1 million fine for violating the Clean Water Act at its former manufacturing site in Clinton in 2008. As part of the resolution of this case, Unilever also is contributing $3.5 million to state and local environmental programs, and instituting a new environmental compliance program at its U.S. manufacturing facilities.
“The environmental integrity of Connecticut’s rivers and the Long Island Sound are of essential importance to our state and all of us,” said U.S. Attorney Daly. “As this prosecution so clearly demonstrates, we will pursue all violations of federal laws to protect our waters. We recognize and thank the EPA for their invaluable work in this investigation, and commend Unilever for redressing their violations by contributing $2.5 million to fund research, outreach and education projects related to the effects of rising sea levels, and $1 million to construct a fishway in Clinton and for other environmentally projects in the lower Hammonasset River watershed. The Company’s contributions will directly assist the State of Connecticut in its efforts to protect and preserve our environment.”
“This case started with Unilever’s criminal conduct and is ending with a big return to the communities,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “Unilever is taking responsibility for its illegal actions by funding important environmental research and development. This work is critical to protect communities, and help them prepare for the effects of climate change.”
“This case sends a strong message that everyone must obey our environmental laws and regulations – they are designed to protect natural resources and the public health and will be enforced,” said DEEP Commissioner Robert Klee. “In addition, this resolution provides funding for important local projects as well as supports the launch of the Connecticut Institute for Resiliency and Climate Adaptation at the University of Connecticut’s Avery Point campus, where important work will be done to help our residents and communities address challenges being posed by the changing climate.”
According to court documents and statements made in court, Unilever’s Clinton manufacturing facility produced a variety of health and beauty products for sale in the United States. The wastewater produced by the plant was regulated by a permit that prohibited the company from bypassing any portion of its wastewater treatment system unless the bypass was unanticipated, unavoidable, and necessary to prevent loss of life, personal injury or severe property damage. The permit further required that Unilever notify authorities within two hours of becoming aware of any bypass, and submit a written report within five days setting forth the cause of the problem, the duration of the event including dates and times, and corrective actions taken or planned to prevent future occurrences.
On December 5, 2008, at approximately 3:00 p.m., a third party contract employee noticed that a hose was being used to bypass the industrial process wastewater treatment system by allowing the contents of a 4,500 gallon vacuum filter filtrate tank to discharge directly to a storm drain pipe that led to Hayden Creek. Upon making this discovery, the contract employee alerted the junior wastewater treatment operator for the Clinton facility and showed him the hose and ongoing wastewater bypass. These two individuals then shut off the hose at approximately 3:10 p.m.
At 3:30 p.m., the contract employee notified his non-Unilever supervisor about his observations, and was urged to notify the Safety, Health and Environmental (SHE) manager of the Clinton facility. The SHE manager received a call from the contract employee between 3:30 and 3:45 p.m. After asking the contract employee to send her an email describing his observations, the SHE manager went to the waste treatment area between 3:45 and 4:00 p.m. and observed foamy water and signs of recent discharge at the inlet of the storm drain pipe. The SHE manager notified the plant manager, took pictures, and observed the downstream oil/water separator. Despite the requirement that the Connecticut Department of Energy and Environmental Protection (DEEP) be notified within two hours of the detection of such a bypass, Unilever chose not notify the DEEP within this two-hour window.
On December 6, 2008, the SHE manager referred the matter to counsel for Unilever for further investigation and notification of DEEP. The next day, in response to the SHE manager’s request, the contract employee sent the SHE manager an email detailing his observations of the bypass and stating “[t]his is not the first time I’ve seen this done at your facility, I’ve seen this on two previous occasions. At that time, however, I was still trying to learn the system as quickly as possible and didn’t understand the significance of what I was viewing.” In the email, the contract employee opined that the senior operator had performed the intentional bypass and had “done this on several occasions, and perhaps more often than we care to know.”
On December 8, 2008, three days after being notified of the illegal discharge, the Unilever plant manager interviewed the two wastewater treatment operators and the contract employee who had initially discovered the bypass. All three individuals denied any responsibility for the bypass and indicated that they did not know who was responsible, although the contract employee again stated that he believed that the senior operator was responsible. From these interviews, the plant manager did not determine who was responsible for the bypass or confirm whether any prior bypasses had occurred. Later that day, the plant manager sent an email to his superior within the organization indicating that “we had somebody by pass [sic] the waste treatment process and put water into the storm water system . . .working with legal on how to handle the DEP [sic], if at all.”
On December 8, a DEEP compliance inspector was on-site at the Clinton facility for an unrelated reason. Unilever again failed to notify the on-site DEEP representative of the bypass that had occurred. On approximately December 10, Unilever notified the DEEP for the first time of the discharge that occurred five days earlier on December 5. This written notification occurred within the required five-day time period for the mandatory written report. Unilever also disclosed the discharge to the U.S. Environmental Protection Agency (EPA) in a written submission dated December 16, 2008.
Unilever conducted its own internal investigation of the December 2008 incident. In subsequent conversations and written communications with federal and state authorities throughout 2009 and 2010, Unilever claimed it was unable to conclusively determine who was responsible for the bypass, and mischaracterized the incident as an isolated, “one-off” incident that may have been the work of unknown “vandals.”
An extensive EPA investigation revealed the truth about what had happened. The junior operator admitted to the EPA that he intentionally bypassed the system on December 5. EPA further concluded that for an extended period of time, perhaps as long as two years prior to December 2008, the wastewater treatment operators routinely bypassed the system on a weekly basis, discharging approximately 1,500 gallons of partially treated wastewater at a time to the storm drain that led to Hayden Creek. EPA’s investigation established that these bypasses were concealed from and unknown to Unilever management, including the SHE manager and the plant manager. Unilever’s management was aware, however, both that the operators were not properly overseeing the wastewater treatment system and that the system was not properly functioning:
- The strength, flow, and variability of the facility’s wastewater made it difficult to treat. System upsets and capacity limitations often necessitated that wastewater be trucked off-site for treatment at a cost of approximately $1500 per truckload. The treatment system operators had authority to call for trucking if needed for wastewater treatment.
- Portions of the treatment system were old and in need of repair and maintenance. Equipment replacements and system improvements recommended by outside consultants were not fully implemented, although some corrective measures were completed.
- The treatment system required constant operator attention and adjustment. Nevertheless, during 2008, the senior operator was often absent. The junior operator did not possess the required license or training to qualify him to operate the system independently for extended periods of time without supervision, yet he was allowed by Unilever to do so.
- Although the waste treatment operators were licensed by the State of Connecticut and subject to applicable permit requirements, they required oversight to properly operate the plant. That oversight was inconsistent and the operators were allowed to act autonomously.
In December 2012, Unilever ceased manufacturing operations at the Clinton facility.
On December 5, 2013, Unilever pleaded guilty to two counts of knowingly violating, or causing to be violated, the Clean Water Act.
Today, Unilever made a $3.5 million payment to the Connecticut Statewide Supplemental Environmental Project Account (SEP) administered by DEEP. Of that money, $2.5 million will be directed to the Connecticut Institute for Resiliency and Climate Adaptation at the University of Connecticut’s Avery Point campus, which will conduct research, outreach and education projects related to the effects of rising sea levels. In addition, $500,000 will be used to design and construct a fishway at the Chapman Mill Pond in Clinton, and $500,000 will be used to fund various water quality or ecosystem restoration projects in the lower Hammonasset River watershed.
Unilever also has agreed to periodic environmental compliance inspections by an outside auditor at all of its manufacturing locations in the U.S, and to certify, within one year of sentencing, that all of its employees at these facilities who perform or manage work subject to environmental compliance requirements have received basic environmental compliance training. In addition, all Unilever employees who are responsible for advising these facilities with respect to mandatory notifications to be made to state and federal environmental agencies must complete additional training to ensure they understand the legal notification requirements under applicable environmental laws.
This matter was investigated by the U.S. Environmental Protection Agency and the Connecticut Department of Energy and Environmental Protection. The case was prosecuted by Assistant U.S. Attorney Ray Miller and Special Assistant U.S. Attorney Peter Kenyon.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]U.S. V. Joseph Mazella Highlighted on CNBC's American GreedRead the Press Release
http://video.cnbc.com/gallery/?video=3000262923
U.S. Department of Justice to Mark National Crime Victims’ Rights WeekRead the Press Release
The rights of crime victims will be commemorated during the week of April 6-12 by the U.S. Department of Justice and in communities throughout the country.
According to the Department’s Office for Victims of Crime (OVC), in 1984, Congress passed the bipartisan Victims of Crime Act (VOCA) which created a national fund to compensate victims for financial and other losses suffered as a result of crimes committed against them. In addition, VOCA money provides money to states in order to fund victim services.
The fund is not financed by taxpayers but through fines and penalties paid by offenders. The fund supports services such as rape crisis treatment, domestic violence programs and victim compensation for expenses, including counseling and lost wages. Every state now has victims’ rights laws and compensation programs and over 10,000 victim service agencies now help people throughout the country.
Middle District U.S. Attorney Peter Smith noted that, central Pennsylvania has one of the most active federal victim rights programs in the nation. It has provided direct services to 7552 victims of fraud schemes, child exploitation and violent crimes prosecuted by the U.S. Attorney’s Office in the past four years. In addition, 196,310 persons received notices of the status of cases in which they were victims. The Victim/Witness programs contact person in the United States Attorney’s Office is the Specialist Laurie Reiley. The Office’s Victim’s Rights and Asset Recovery Unit is headed by Assistant United States Attorney James Clancy.
More information about National Crime Victims’ Rights Week can be obtained from the OVC website www.ovc.gov. Information concerning the Middle District of Pennsylvania’s U.S. Attorney’s Office’s Victim Rights program is available at the office’s website and by contacting the Victim/Witness Specialist at 717-221-4482.
* * * *U.S. Attorney Goodwin to Speak at Statewide Child Abuse Conference in MorgantownRead the Press Release
***MEDIA ADVISORY***
CHARLESTON, W.Va. – United States Attorney Booth Goodwin will deliver remarks during the West Virginia Child Advocacy Network’s first statewide conference at the Lakeview Resort in Morgantown, W,Va. on Friday, April 4, 2014 at 9:00 a.m. The conference, attended by approximately 160 professionals, will promote best practices, updates and trends in the child abuse field.
Goodwin will discuss various topics, including an update on a pilot project aimed at preventing and mitigating the impact of trauma on children exposed to violence – “Handle With Care” – and other key issues that are critical to a collaborative response by law enforcement, schools and mental health professionals to crimes against children.The West Virginia Child Advocacy Network (WVCAN) 2014 Conference, held April 3 – 4, 2014, is a partnership among WV CAN, West Virginia Children’s Justice Task Force, Sisters of Joseph Health & Wellness Foundation, Claude Worthington Benedum Foundation and the United States Attorney’s Office for the Southern District of West Virginia.
For additional information, visit West Virginia Child Advocacy Network.WHO: U.S. Attorney Booth Goodwin
WHAT: West Virginia Child Advocacy Network 2014 Conference
WHEN: Friday, April 4, 2014
TIME: 9:00 a.m.
WHERE: Lakeview Resort, MorgantownTwo Utah Men Sentenced to Prison for Two Years for Filing False Tax Returns that Understated IncomeRead the Press Release
SALT LAKE CITY - Two residents of Utah were sentenced to two-year prison sentences in U.S. District Court in Salt Lake City this week after pleading guilty to filing false tax returns that understated their income.
U.S. District Court Judge Clark Waddoups sentenced Larry Oral Bosh, age 46, of Nephi, to two years in federal prison and one year of supervised release after he concludes the prison sentence. Bosh must pay restitution of $563,672 to the IRS. The sentenced was imposed Tuesday afternoon.
In a plea agreement reached with federal prosecutors, Bosh admitted that from June 2007 through October 2008, he earned a substantial income from Evolution Developments, LLC and Clover Creek, LLC. He admitted he willfully failed to accurately report this income to the IRS. According to the indictment in the case, Bosh reported $5,502 in income during 2008, under-reporting his income by $1,732,502.
In the plea agreement, Bosh admitted that around April 20, 2010, he prepared, signed and filed a false individual tax return for tax year 2008. He admitted that as a result of those actions, he owed the IRS $563,672.
In a separate case, U.S. District Judge David Nuffer sentenced David Shawn Benson, age 40, of Ivins, Utah, to two years in prison and one year of supervised release for filing a false tax return. Benson was sentenced Tuesday.
According to the indictment charging Benson, he reported $37,982 in income during 2008, under-reporting his income by $1,902,109.
As a part of a plea agreement with federal prosecutors, Benson admitted that from June 2007 through October 2008, he earned substantial income from SHB Enterprises, LLC and Evolution Developments, LLC. He admitted he willfully failed to report this income to the IRS. On April 12, 2010, he prepared, signed, and filed a false individual tax return with the IRS knowing that it understated the taxable income he earned during tax year 2008. Judge Nuffer ordered Benson to pay $610,467 in restitution to the IRS.
The cases were investigated by special agents of IRS Criminal Investigation and prosecuted by the U.S. Attorney’s Office in Utah.
Trenton Man Sentenced to Eight Years in Prison for Possession of Three Guns, Including Loaded Semi-Automatic RifleRead the Press Release
TRENTON, N.J. – A Trenton, N.J., man with a previous conviction for drug distribution was sentenced today to 96 months in prison for possessing three firearms, including a loaded semi-automatic rifle and a loaded revolver, U.S. Attorney Paul J. Fishman announced.
Isaiah Harris, 26, previously pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging him with one count of being a convicted felon in possession of firearms and ammunition. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
At approximately 6:00 a.m. on Nov. 15, 2012, law enforcement officers entered a residence on Stuyvesant Avenue in Trenton to execute an unrelated warrant for Harris’ arrest and encountered Harris in a bedroom on the second floor. They recovered a loaded Taurus .38-caliber revolver from the bed Harris had been occupying and later discovered in the bedroom a loaded Norinco SKS, 7.62 semi-automatic rifle and a partially disassembled second Norinco SKS, 7.62 semi-automatic rifle. Harris admitted at his plea hearing that he possessed these weapons.
In addition to the prison term, Judge Shipp sentenced Harris to three years of supervised release, ordered him to forfeit the firearms and ammunition and fined him $1,000.
U.S. Attorney Fishman credited special agents and task force officers of the ATF’s Trenton Field Office, under the direction of Acting Special Agent in Charge George Belsky in Newark, N.J., and law enforcement officers from the Trenton Police Department, under the direction of Police Director Ralph Rivera Jr.; the Mercer County Sheriff’s Office, under the direction of Sheriff John Kemler; and the Mercer County Prosecutor’s Office, under the direction of Prosecutor Joseph L. Bocchini Jr., for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney John E. Clabby of the U.S. Attorney’s Office Criminal Division in Trenton.14-118
Defense counsel: Assistant Federal Public Defender Lisa Van Hoeck Esq., Trenton
Tracy Woman Pleads Guilty to Embezzling from Health Plan of San Joaquin and Agilent TechnologiesRead the Press Release
SACRAMENTO, Calif. — Shanika Brewer, 35, of Tracy, pleaded guilty today to embezzling from a healthcare program and mail fraud relating to a separate embezzlement, United States Attorney Benjamin B. Wagner announced.
According to court documents, from 2008 until 2011, Brewer worked in the accounts payable department of a Walnut Creek company at first called Varian, Inc., which later was acquired by Agilent Technologies, Inc. During her employment, Brewer entered false information into the company’s accounting system that caused other departments to issue checks to vendors who provided personal goods and services to Brewer. Brewer intercepted the checks and took them home to Tracy and mailed them out to pay her student loans, mortgage payments, and home improvements. She also used company funds to pay for her children’s school tuition and to deposit into her personal bank account. Brewer caused the issuance of hundreds of checks for her own benefit totaling over $800,000.
In December 2012, Brewer was hired by Health Plan of San Joaquin, which provides and administers medical benefits and services for employees of San Joaquin County. As the Assistant Controller, Brewer reorganized the accounts payable department. She began manufacturing false invoices for legitimate vendors as well as fictitious companies. Brewer signed the invoices, forging the names of other Health Plan or San Joaquin County employees. After submitting the invoices, she obtained checks that she took home to use for her own benefit. Brewer caused approximately $100,000 in losses and expenses to the Health Plan.
“This case came to our office due to the great work of the IMPACT Unit of the San Joaquin County District Attorney’s Investigative Bureau. When the IMPACT Unit’s investigation of the Health Plan of San Joaquin embezzlement led to evidence that Brewer had embezzled from her prior employer outside of San Joaquin County, the Unit began working with the FBI,” said U.S. Attorney Wagner. “This type of state and federal teamwork is a prime example of how cooperation results in fast, efficient, and appropriate resolution of cases affecting employers throughout California.”
“Brewer abused her position as a trusted employee to craft an elaborate scheme to embezzle over $800,000 over the course of five years. The money was used to support a lifestyle for her and her family that was well beyond her legitimate earnings,” said Special Agent in Charge Monica M. Miller of the Sacramento Field office of the Federal Bureau of Investigation. “Identifying and investigating financial fraud such as this protects the health of our economy and, in the case of fraud against the health care industry, ensures that our citizens continue receive the best possible health care that they have come to expect.”
San Joaquin County District Attorney James P. Willett advised the County’s employers and businesses “to enforce strong checks and balances over their finances and financial records,” noting that it was only due to the “vigilance of First Premier Bank of South Dakota, which alerted the County that County funds were paying Brewer’s personal credit card bill, that this embezzlement from the San Joaquin Health Plan was detected and stopped in six months. In most cases, once the method of embezzlement is established the embezzlement goes on for years.”
This case was the product of an investigation by the San Joaquin County District Attorney Investigations Bureau, IMPACT Unit and the Federal Bureau of Investigation. Assistant United States Attorney Jean M. Hobler is prosecuting the case.
Brewer is scheduled to be sentenced by Chief United States District Judge Morrison C. England Jr. on June 26, 2014. Brewer faces a maximum statutory penalty of 10 years in prison and a $250,000 fine or up to two times the embezzled funds. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was done in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the Task Force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
Three Women Indicted for Tax FraudRead the Press Release
A 29-count federal indictment was filed charging three women for their roles in a tax fraud conspiracy in which they fraudulently claimed and received more than $436,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Kathy Enstrom, IRS-Criminal Investigation Special Agent in Charge.
Indicted are Erica Harris, 32, and Shaunte Harris, 29, both of Toledo, and Latoya Gilmer, 29, of Detroit. The charges relate to conspiracy to defraud the government with respect to claims and false, fictitious, or fraudulent claims from 2009 through April 2010.
Harris, Gilmer and Harris approached individuals with little or no income and offered them a portion of the fraudulent tax refunds in exchange for their personal information and that of their children. Then the defendants filed false returns electronically, reporting false wages, false Social Security benefits and false 1099 withholding amounts typically exceeding $10,000, according to the indictment.
Collectively, they filed more than 40 false tax returns and received fraudulent returns totaling approximately $436,036, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Internal Revenue Service in Toledo. The case is being handled by Assistant United States Attorney Alissa M. Sterling
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Tahlequah Man Sentenced to 120 Months for Possession of Stolen FirearmRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that JUSTIN JAMES WALKER, age 28, of Tahlequah, Oklahoma, was sentenced to 120 months imprisonment, followed by 3 years of supervised release Possession of Stolen Firearm, in violation of Title 18, United States Code, Section 922(j).
Charges arose from an investigation by the Tahlequah Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The defendant was indicted in January, 2013 and pled guilty in October, 2013.
The Indictment alleged that on or about August 25, 2012, within the Eastern District of Oklahoma, the defendant did receive, conceal, store, barter, sell or dispose of a stolen firearm, to wit: Mossberg, Mode1500ATP, 12 Gauge Shotgun, bearing serial number Jl50578, which had been shipped or transported in interstate or foreign commerce, either before or after it was stolen, knowing or having reasonable cause to believe said firearm had been stolen.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal prison at which he will serve his nonparolable sentence.
Assistant United States Attorney Kyle Waters represented the United States.
Sugar Land Resident Ordered Detained on Child Pornography ChargesRead the Press Release
HOUSTON – Glenn Casey Portwood, 52, of Sugar Land, has been ordered held in custody pending trial on child pornography charges, announced United States Attorney Kenneth Magidson.
Portwood was charged in a sealed indictment, returned March 20, 2014, for two counts of receipt of child pornography, one count of attempted distribution of child pornography and one count of possession of child pornography. He was taken into custody Tuesday, April 2, 2014. Today, he appeared before U.S. Magistrate Judge Frances Stacy, who found probably cause he committed the crimes charged against him. Judge Stacy further noted him to be a danger to the community and a flight risk and ordered he remain in federal custody pending further criminal proceedings. He is currently set for trial May 19, 2014.
Portwood came to the attention of law enforcement on Sept. 12, 2012, when an officer was investigating peer-to-peer file sharing programs on the Internet. According to allegations, he determined that a computer was sharing child pornography and traced that computer to the Internet account of Portwood.
On Sept. 26, 2012, officers executed a search warrant at Portwood’s house. At that time, officers found a Honda parked in the driveway which was registered to Portwood and inside its trunk was a black backpack, according to allegations. Officers allegedly discovered several CDs, an external hard drive and two laptop computers inside the bag. According to the charges, one of the CDs was labeled “VCKY 2004” and officers found a folder named “Vicky” with movie files containing child pornography. Four of the CDs allegedly contained child pornography, while a fifth CD depicted adult pornography involving women who were sleeping or drugged, according to the charges. The “Vicky” series is a widely traded child pornography series on the Internet.
At the detention hearing today, the government contended that upon forensic examination, images of child pornography were found on both of the laptops, to include approximately 325 images and 70 videos of child pornography along with approximately 2000 images of child erotica. In addition, the external hard drive was found to contain approximately 50,000 child pornography images and 1300 child pornography videos, according to the allegations. Officers allegedly found images and videos depicting babies and toddlers.
If convicted, Portwood faces a minimum of five and up to 20 years imprisonment for the receipt and distribution charges in addition to a maximum of 10 years on the possession charge. All charges, upon conviction, also carry a possible $250,000 fine. Upon completion of any prison term imposed, Portwood also faces a maximum of life on supervised release during which the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
The charges against Portwood are the result of an investigation conducted by the Sugar Land Police Department as part of the Houston Metro Internet Crimes Against Children Task Force and the FBI.
This case, prosecuted by Assistant U.S. Attorney Robert Stabe, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Stockton Woman Pleads Guilty to Credit Card ID Theft SchemeRead the Press Release
SACRAMENTO, Calif. —Frances Marie Charles, 35, resident of Stockton, pleaded guilty today to mail fraud and aggravated identity theft in connection with a fraudulent scheme to obtain replacement American Express credit cards, United States Attorney Benjamin B. Wagner announced.
According to court documents, from about June 2012 through December 2013, Charles participated in a scheme to fraudulently obtain over 215 replacement American Express credit cards in the names of at least 172 people, and to use the credit cards to obtain cash, goods, and services at the expense of American Express, banks, and merchants. Charles placed calls to American Express and used personal identifying information and financial information of victims to cause the replacement cards to be sent to Stockton, California, after which the cards would be used to make fraudulent charges and purchases. The total amount of attempted charges with the credit cards was well in excess of $400,000.
This case was the product of an investigation by the United States Secret Service. Assistant United States Attorney Christopher S. Hales is prosecuting the case.
Charles is in custody awaiting sentencing. She is scheduled to be sentenced by Judge Troy L. Nunley on June 19, 2014. Charles faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for mail fraud, and not less than 2 years imprisonment for aggravated identity theft, to run consecutively to the sentence for mail fraud. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
St. Johns County Man Pleads Guilty to Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Christopher Scott O’Brien, II (age 23, St. Johns) yesterday pleaded guilty to receiving child pornography over the Internet. O’Brien faces a mandatory minimum penalty of 5 years, up to 20 years in federal prison, and a potential life term of supervision. A sentencing date has not yet been set.
According to court documents, an agent with the Florida Department of Law Enforcement in Jacksonville began an undercover investigation to identify individuals in that area who had access to and/or were trading images and videos depicting child pornography over the Internet. The agent determined that a host computer in the area was hosting images of child pornography using a particular peer-to-peer file sharing program. The agent made successful connections to the host computer and successfully downloaded several video files depicting child pornography directly from the host computer. Further investigation revealed that the subscriber information traced back to O’Brien’s residence in St. Johns, Florida.
On February 26, 2013, FBI agents and other officers executed a search warrant at O’Brien’s residence and seized, among other things, several computers and other items of electronic media. O’Brien was at the residence and told the agents that he uses the same file sharing program as the one detected by the undercover agent. He stated that he only downloads videos and believed that he had four or five videos of child pornography on his computer, which he repeatedly watched and saved. He added that the children depicted in his collection of child pornography ranged from 8 to 15 years of age.
A subsequent analysis of O’Brien’s computer revealed that it contained approximately 838 videos, at least 50 of which depicted minors engaged in sexually explicit conduct.
This case was investigated by the Florida Department of Law Enforcement, the Federal Bureau of Investigation, and the St. Johns County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
St. Albans Meth Dealer Pleads GuiltyRead the Press Release
CHARLESTON, W.Va. – A St. Albans, W.Va. man pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin. Alva Osborne, 46, pleaded guilty in federal court in Charleston to distributing methamphetamine. As part of the plea, Osborne admitted that on four separate occasions from November of 2012 through December of 2013, he sold quantities of methamphetamine to a confidential informant working with the Metropolitan Drug Enforcement Network Team. Osborne also admitted that he distributed large quantities of methamphetamine to other individuals who were not cooperating with law enforcement. Osborne faces up to 20 years in federal prison when he is sentenced on July 21, 2014.
The investigation was conducted by the Metropolitan Drug Enforcement Network Team and the Charleston Police Department. Assistant United States Attorney Haley Bunn is in charge of the prosecution.
Six Arrested in Multiple Drug/Firearms IndictmentsRead the Press Release
LAREDO, Texas – Three separate indictments have been partially unsealed following the arrest of six Laredo residents on a variety of charges including methamphetamine and/or cocaine trafficking and felon in possession of a firearm, announced United States Attorney Kenneth Magidson.
A grand jury returned three sealed indictments on Feb. 18, 2014. The first alleges that a drug trafficking organization had been transporting 50 grams or more of methamphetamine since January 2013. The organization allegedly coordinated the transportation, delivery and distribution of multi-ounce quantities of methamphetamine and heroin to San Antonio. Transporters for the organization allegedly concealed the drug by taping it to their bodies or hiding it within a vehicle. Personal use amounts of the drugs were distributed in the greater-Laredo area, according to the charges. Santos Arturo Ortiz, 27, Kenneth John Swisher, 56, Armando Bautista Jr., 28, and Alan Salinas, 27, all of Laredo, were arrested today for their alleged roles in that conspiracy.
Also taken into custody today was Agustin Zuniga, 37, of Laredo. He is charged in the second partially unsealed indictment with conspiracy and possession with the intent to distribute cocaine.
The third indictment unsealed today alleges Jose Casarez, 33, of Laredo, was a felon in possession of a firearm.
Four of the six arrested today are expected to make their initial appearances before U.S. Magistrate Judge Diana Song Quiroga, at which time the government expects to request their detention pending further criminal proceedings. Ortiz and Bautista were taken into custody in San Antonio and Dallas, respectively. They will make initial appearances there and are expected to be transported to Laredo in the near future.
For the methamphetamine conspiracy, Ortiz, Swisher, Bautista and Salinas face a mandatory minimum sentence of 10 years and up to life in in prison and a possible $10 million fine. Zuniga faces up to 20 years in federal prison and a possible $1 million fine, if convicted of the charge he faces, while Cesarez will face up to 10 years in prison and a $250,000 fine, upon conviction.
The cases are the result of an investigation led by the Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Elizabeth Rabe is prosecuting.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Sentencing for March 20 - April 2, 2014Read the Press Release
Francisco Hernandez-Marquez, 29, of Rock Springs, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 2, 2014, for conspiracy to possess with intent to distribute, and to distribute between 500 grams and 1.5 kilograms of a mixture or substance containing a detectable amount of methamphetamine and for distribution of methamphetamine and aiding and abetting. Hernandez-Marquez was arrested in Rock Springs. He received 57 months imprisonment, to be followed by five years of supervised release and was ordered to pay a $300.00 fine and a $200.00 special assessment. Hernandez-Marquez is subject to deportation upon release from custody. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Rosendo Campos, 19, of Rock Springs, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 1, 2014, for conspiracy to possess with intent to distribute, and to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine and for conspiracy to launder money. Campos was arrested in Rock Springs, Wyoming. He received 120 months imprisonment, to be followed by seven years of supervised release, and was ordered to pay a $200.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Manuel de Jesus Hernandez-Marquez, 20, of Rock Springs, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 1, 2014, for conspiracy to possess with intent to distribute, and to distribute at least 200 grams or more of a mixture or substance containing a detectable amount of methamphetamine and for distribution of methamphetamine and aiding and abetting. Hernandez-Marquez was arrested in Rock Springs. He received 57 months imprisonment, to be followed by three years of supervised release and was ordered to pay a $200.00 special assessment. Hernandez-Marquez is subject to deportation upon release from custody. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Anthony Nield, 40, of Auburn, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on April 1, 2014, for conspiracy to possess with intent to distribute, and to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Nield was arrested in Kemmerer, Wyoming. He received 57 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.Brendan Dane Schweigart, 28, of Andover, New York, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 31, 2014, for interstate travel with intent to engage in illegal sexual acts with a minor. Schweigart was arrested in Hulett, Wyoming. He received 42 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $300.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Deborah Dawn Hill, 49, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on March 28, 2014, for fraud using an access device of another. Hill appeared pursuant to a summons. She received 37 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $718,350.53. This case was investigated by the U.S. Secret Service, the Federal Bureau of Investigation and the Internal Revenue Service.
Gabriel Martinez-Illesca, 47, of Rock Springs, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on March 20, 2014, on one count of conspiracy to possess with intent to distribute, and to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine; one count of distribution of methamphetamine; and one count of use of a telephone facility to facilitate a felony drug offense. Martinez-Illesca was arrested in Rock Springs. He received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $300.00 special assessment. Martinez-Illesca is subject to deportation upon release from custody. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Ramah Navajo Man Pleads Guilty to Aggravated Sexual Abuse of Navajo TeenagerRead the Press Release
ALBUQUERQUE – Sabastiano Coho, 24, a member of the Ramah Chapter of the Navajo Nation, pleaded guilty yesterday afternoon to an aggravated sexual assault charge under a plea agreement with the U.S. Attorney’s Office.
Coho was arrested on Feb. 18, 2011, on a criminal complaint charging him with aggravated sexual abuse and subsequently indicted on March 9, 2011. According to court filings, Coho sexually assaulted the victim, a 19-year-old Navajo woman, on Jan. 25, 2011, in a location within the Navajo Indian Reservation in Cibola County, N.M. Proceedings in the case were delayed as a result of competency evaluations.
In entering his guilty plea, Coho admitted to engaging in a sexual act, by using force, with the victim on Jan. 25, 2011.
Coho has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. Under the terms of the plea agreement, Coho will be sentenced to 50 months in federal prison followed by a term of supervised release to be determined by the court. Coho also will be required to register as a sex offender.
This case was investigated by the Gallup office of the FBI and the Navajo-Ramah Tribal Police Department and is being prosecuted by Special Assistant U.S. Attorney David Adams. It was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Port Arthur Man Indicted on Federal Income Tax Evasion ChargesRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 44 year-old Port Arthur, Texas man has been indicted for income tax evasion, announced U.S. Attorney John M. Bales today.
Theodore Paul Victor, Jr., was indicted on April 2, 2014, and charged with four counts of failing to report taxable income during the calendar years 2007 through 2010. Victor is accused of failing to report taxable income in excess of $361,000, leaving him with a tax liability of over $69,000.
If convicted, each count carries a maximum statutory penalty of five years in federal prison and a $250,000 fine. In addition, restitution could be ordered.The case is being investigated by the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorney John B. Ross and Special Assistant U.S. Attorney Catherine Cockrell.
It is important to note that an indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
####Owners of Popular Ocean City, N.J., Pizza Restaurants Arrested, Face Indictment Charging Tax and Structuring CrimesRead the Press Release
CAMDEN, N.J. - The owners of popular Ocean City, N.J., restaurant chain Manco & Manco Pizza were arrested this morning at their Somers Point, N.J., home by IRS-Criminal Investigation special agents on an indictment charging the couple with multiple counts of tax evasion and other offenses, U.S. Attorney Paul J. Fishman announced.
Charles Bangle, 54, and his wife Mary Bangle, 53, face a 30-count indictment charging the couple with one count of conspiracy to evade income taxes, five counts of income tax evasion for 2007 through 2011, and one count of making false statements to the IRS. Charles Bangle is also charged with 23 counts of structuring financial transactions to avoid reporting requirements.
The Bangles are scheduled to appear on the charges this afternoon before U.S. Magistrate Judge Ann Marie Donioin Camden federal court.
According to the indictment unsealed today: Manco & Manco Pizza – formerly Mack & Manco – is an iconic restaurant located in the heart of the Ocean City’s Boardwalk and maintains three stores on the Boardwalk and one store in Somers Point. Charles and Mary Bangle were employees of Mack & Manco Pizza until they purchased a controlling interest in 2011. Charles Bangle handled the day-to-day operations of the business and Mary Bangle was responsible for handling cash and payroll.
Between 2007 and 2011, Charles and Mary Bangle skimmed large sums of cash from the business. Charles Bangle deposited significant amounts of that cash into their personal bank account at TD Bank in amounts less than $10,000, the amount which triggers a Currency Transaction Report from financial institutions to the U.S. Department of Treasury.
The Bangles then used the money to pay for personal expenditures. They concealed approximately $981,000 in income from the IRS, which they had a legal obligation to report on their personal income tax returns. Had they accurately reported all their income to the IRS, the Bangles would have owed an additional $336,273.
The Bangles claimed the deposits into their personal checking account were from cash salary earned at the pizza business.
Each of the 30 counts of the indictment carries a maximum potential penalty of five years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation.
The government is represented by Assistant U.S. Attorneys Jason M. Richardson and Matthew T. Smith of the U.S. Attorney's Office Criminal Division in Camden, as well as Assistant U.S. Attorney Peter W. Gaeta of the office’s Asset Forfeiture Unit.14-117
Defense counsel:
Charles Bangle: Vincent Sarubbi Esq., Haddonfield, N.J.
Mary Bangle: TBDBangle, Charles and Mary Indictment
Opiate Abuse Prevention Video "equal Opportunity Destroyer" Receives Prestigious Telly AwardRead the Press Release
U. S. Attorney Booth Goodwin and Huntington Police Chief W. H. “Skip” Holbrook are pleased to announce that the opiate abuse prevention film, "Equal Opportunity Destroyer" or "E.O.D." has received a prestigious bronze Telly award. With nearly 12,000 entries from all 50 states and numerous countries, this is truly an honor.
The "EOD" video includes interviews with recovering addicts, treatment professionals and others with the aim of laying out the real-life risks and consequences of opiate prescription drug and heroin use. The educational video was developed through a partnership between the U. S. Attorney’s Office for the Southern District of West Virginia and the Huntington Police Department. It was funded by a grant from the West Virginia Division of Justice and Community Services and produced by Trifecta Productions, LLC,U.S. Attorney Booth Goodwin praised the work of Trifecta Productions. "The folks at Trifecta did a remarkable job of capturing the power of the real life stories in a film that hits hard on the message that opiate abuse and its tragic consequences can happen to anyone. It is our hope that some of the young people who view the video will make better decisions regarding opiates and other drugs."
The video can be viewed on the website of the U.S. Attorney's Office, SDWV, at http://www.youtube.com/user/USAOSDWV, the EOD website at www.eodwv.com or the WV Safe Schools website at www.wvsafeschools.com.
If you would like to arrange for U.S. Attorney Booth Goodwin to speak to your school or community group and present the film, please call 304-345-2200.(Click this link for a photograph of Joe Murphy, Trifecta Productions, LLC (left) and Chief W. H. “Skip” Holbrook (right) with the Telly Award.)
Omaha Woman Convicted of Being a Felon in Possession of AmmunitionRead the Press Release
United States Attorney Deborah R. Gilg announced that following a three day jury trial, Lori Jenkins, age 47 of Omaha, was found guilty by a federal jury of two counts of being a felon in possession of ammunition. Each count is punishable by up to ten years in prison and a fine of up to $250,000, followed by a term of supervised release of up to three years. The Honorable Laurie Smith Camp, Chief Judge of the United States District Court, presided over the trial. Ms. Jenkins remains in custody pending sentencing, which is scheduled for June 30, 2014 before Chief Judge Smith Camp.
This case was investigated by the Douglas County Sheriff’s Office and the Omaha Police Department.
Non-Indian Man from Santa Fe Pleads Guilty to Embezzling Money Belonging to San Ildefonso PuebloRead the Press Release
ALBUQUERQUE – Ramiro R. Flores, 60, of Santa Fe, N.M., pleaded guilty today to embezzling $42,856 from San Ildefonso Pueblo under a plea agreement with the U.S. Attorney’s Office.
Flores, who is a non-Indian, was indicted on Oct. 30, 2013, and charged with six counts of embezzlement from an Indian tribal organization. According to the indictment, Flores embezzled $42,856 from San Ildefonso Pueblo between June 2011 and Feb. 2012. At the time, Flores was employed as the program director for the Pueblo’s Parks and Wildlife Program.
Today Flores pleaded guilty to a misdemeanor information charging him with six counts of embezzlement, and admitted embezzling money from San Ildefonso Pueblo.
Under the terms of his plea agreement, Flores will be required to pay restitution to the Pueblo in an amount to be determined by the court. Flores also will be sentenced to a term of probation to be determined by the court.
The case was investigated by the Santa Fe office of the FBI and is being prosecuted by Assistant U.S. Attorney Jon K. Stanford.
New London Heroin Dealer Sentenced to More Than Six Years in Federal PrisonRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that EDDIE RODRIGUEZ, also known as “Joel,” 30, of New London, was sentenced yesterday by U.S. District Judge Janet Bond Arterton in New Haven to 77 months of imprisonment, followed by four years of supervised release, for distributing heroin.
In early 2012, Homeland Security Investigations (“HSI”), the U.S. Secret Service and the New London Police Department initiated an investigation to combat the large-scale trafficking of heroin and cocaine from the Dominican Republic and Puerto Rico into and around southeastern Connecticut. The investigation revealed that Luis Ariel Capellan Maldonado, also known as “Ariel,” and his associates were receiving heroin from sources in the Dominican Republic and distributing it throughout New London County. RODRIGUEZ purchased heroin from Maldonado’s associate and sold the drug to his own customers.
RODRIGUEZ has been detained since his arrest on April 3, 2013. On January 2, 2014, he pleaded guilty to one count of conspiracy to possess with the intent to distribute 100 grams or more of heroin.
RODRIGUEZ has several prior felony convictions.
More than 100 individuals have been charged with federal and state offenses as a result of this investigation. Maldonado has pleaded guilty and awaits sentencing.
This matter is being investigated by Homeland Security Investigations; U.S. Secret Service; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection, Office of Air and Marine; Connecticut State Police; New London Police Department, Norwich Police Department, Waterford Police Department, Groton Town Police Department, East Lyme Police Department and Putnam Police Department. The United States Marshals Service; ICE Enforcement and Removal Operations; Drug Enforcement Administration; HSI Assistant Attaché, Santo Domingo, Dominican Republic; HSI Arecibo, Puerto Rico Resident Office; Internal Revenue Service – Criminal Investigation; Connecticut Department of Correction, Parole and Community Services; and the Groton City, Willimantic, New Haven and Bristol Police Departments have provided valuable assistance to the investigation.
The federal case is being prosecuted by Assistant United States Attorneys Alina P. Reynolds, Sarah P. Karwan and Henry K. Kopel. The state cases are being prosecuted by the State’s Attorney for the New London Judicial District and Senior Assistant State’s Attorneys Paul Narducci and Stephen Carney.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]New Jersey Woman Charged with Bilking Non-ProfitRead the Press Release
Rochelle Biesenthal, 64, of Brigantine, New Jersey, was charged today by information with one count of wire fraud and three counts of tax evasion in connection with an alleged scheme to defraud the Jewish Heritage Programs (“JHP”), a non-profit corporation based in Philadelphia, announced United States Attorney Zane David Memeger.
According to the information, Biesenthal carried out the scheme between 2002 and April 2009, while employed as a bookkeeper at JHP. She allegedly prepared and issued checks, made payable to her, drawn on JHP’s bank accounts. It is further alleged that Biesenthal fraudulently authorized electronic debits from JHP’s bank accounts to pay for her personal credit cards and her family’s personal credit cards. As part of the scheme, it is alleged that she defrauded JHP of a total of over $400,000. In addition, according to the information, she never reported her unauthorized income in her tax returns in tax years 2007 through 2009 and concealed the true sources of her income.
If convicted the defendant faces a maximum possible sentence of 35 years in prison, a three-year period of supervised release, a fine of up to $1 million, and a $400 special assessment.The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigations. It is being prosecuted by Assistant United States Attorney Sozi Pedro Tulante.
Click here to view the indictment
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Navajo Man Sentenced to Sixty-Three Months in Federal Prison for Assaulting a Kewa Pueblo Woman and Abusing two Children on Nambe PuebloRead the Press Release
ALBUQUERQUE – Everett D. Williams, 26, an enrolled member of the Navajo Nation who resides in Nambe Pueblo, N.M., was sentenced today to 63 months in federal prison followed by three years of supervised release for his conviction on assault and child abuse charges.
Williams was arrested in March 2013, based on a criminal complaint charging him with assaulting his intimate partner with a hammer and causing her to sustain serious bodily injury. In April 2013, Williams was indicted and charged with one count of assault resulting in serious bodily injury, one count assault with a deadly weapon, and two counts of child abuse. According to court filings, Williams assaulted the victim, a Kewa Pueblo woman, and endangered the health of two toddlers on Feb. 23, 2013, in a residence located on Nambe Pueblo.
On July 3, 2013, Williams entered a guilty plea to all four counts of the indictment and admitted to striking the victim in the head with a hammer and causing her serious bodily injury. Court filings indicate that the victim required surgery to treat a gaping wound on her forehead. While swinging the hammer at the victim, Williams missed the victim and instead struck a three-year-old child in the back. While attempting to hit the victim with his fist, Williams struck a two-year-old child above the eye.
This case was investigated by the Northern Pueblos Agency of the BIA’s Office of Justice Services and was prosecuted by Special Assistant U.S. Attorney David M. Adams. The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project which is sponsored by the Justice Department’s Office on Violence Against Women, and seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Milwaukee Man Sentenced to Life in Prison for Transporting Minors Across State Lines for ProstitutionRead the Press Release
A man who transported two minor girls from Milwaukee, Wisconsin to Iowa for purposes of having them engage in prostitution was sentenced today to life in prison without the possibility of parole.
Robert Jackson, age 32, from Milwaukee, Wisconsin, received the prison term after a November 5, 2013, guilty plea to one count of transporting minors across state lines with the intent to engage in criminal sexual activity.
At the guilty plea hearing, Jackson admitted that on July 16, 2013, he transported two females from Milwaukee, Wisconsin, to Cedar Rapids, Iowa, for the purpose of having them engage in prostitution. The girls were each under 18 years of age at the time.
At the sentencing hearing, the government proved one girl was 15 years old, and the other 17 years old, at the time of the offense. The evidence showed that Jackson threatened to kill the 15 year-old child and her family if she ever attempted to leave him. On one occasion when both girls left him for a time, Jackson beat the 15 year-old with a belt and raped her, and beat the 17-year-old in her face with his fists. Jackson had both girls engage in prostitution in Milwaukee and Iowa, and kept the money they earned. The evidence further showed that he coerced by threats and force both girls to travel to Iowa for purposes of prostitution. The evidence disclosed that Jackson later bragged to other inmates about using force and sexual abuse of the girls to keep them in line and control them as his prostitutes.
Jackson was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Jackson was sentenced to life in prison. A special assessment of $100 was imposed. There is no parole in the federal system.
“This defendant preyed on vulnerable young girls and exploited them for prostitution,” said United States Attorney Kevin W. Techau. “The underground nature of human trafficking makes it hard to fight and it can be especially dangerous for young people and disadvantaged kids in both big cities and rural areas. The U.S. Attorney’s Office for the Northern District of Iowa is committed to working with our law enforcement partners to investigate human trafficking, as well as working with our local non-governmental, community-based and faith-based organizations to identify, rescue and assist victims of trafficking.”
Jackson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the Johnson County Sheriff’s Office, the Iowa Division of Intelligence, and the Marion Police Department, with the assistance of the Milwaukee Human Trafficking Task Force.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-cr-0063.
Maryland Man Charged with Insider Trading ConspiracyRead the Press Release
Defendant Netted over $650,000 in Illegal Profits from College Friend’s Insider “Tips”
CHARLOTTE, N.C. – A Maryland man who received insider “tips” of confidential trading information from his college friend, John Femenia, has been charged with insider trading conspiracy, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation, Charlotte Division joins U.S. Attorney Tompkins in making today’s announcement.
The charges against Walter Donald Wagner, 33, of Rockville, Md. stem from “Operation Insider Out,” an FBI investigation into insider trading activities in the Charlotte area. The investigation, which began in early 2012, has resulted in the prosecution of nine other conspirators involved in the illegal trading ring, five of which have already been sentenced, and all of whom have pleaded guilty. John Femenia, who orchestrated the conspiracy, and three other conspirators are awaiting sentencing. According to filed court documents, Femenia was an investment banker with Wells Fargo, who lived in Charlotte and later in New York. Court documents indicate that from March 2010 through December 2012, Femenia stole material nonpublic information from Wells Fargo and its clients about potential and upcoming mergers and acquisitions. Femenia and Wagner were college friends, and around April 2012 Femenia recruited Wagner to participate in the insider trading conspiracy. Court records show that Femenia tipped off Wagner and other conspirators about upcoming mergers, who then traded on that information. Court records reflect that when one of the mergers went through and news of the merger became public, the company’s stock price increased by 64% and the conspirators collectively realized over $7.5 million in profits. Wagner specifically made over $650,000 in profit from the fraudulent insider tips he received from Femenia.
A criminal bill of information filed today in U.S. District Court charges Wagner with one count of insider trading conspiracy. Wagner has agreed to plead guilty to the charge and will appear in U.S. District Court to formally accept the plea when the hearing is scheduled. At sentencing, Wagner faces a maximum prison term of five years and a $250,000 fine for the conspiracy to commit insider trading offense.
In December 2012, a separate criminal indictment charged John W. Femenia, Sawn C. Hegedus, Danielle C. Laurenti, Matthew J. Musante, Aaron W. Wens, Roger A. Williams, Kenneth M. Raby, Frank M. Burgess, Jr. and James A. Hayes for their involvement in the insider trading conspiracy. Femenia, Hegedus, Laurenti and Musante have pleaded guilty and are awaiting sentencing. The remaining five defendants have been already sentenced:
• Roger A. Williams, was sentenced in January 2014 to 24 months in prison and one year of supervised release. • Kenneth M. Raby, was sentenced in January 2014 to 18 months in prison and one year of supervised release. • Frank M. Burgess, Jr., was sentenced in January 2014 to six months in prison, six months of home detention, and one year of supervised release. • Aaron M. Wens,was sentenced in February 2014 to six months in prison, six months of home detention, and one year of supervised release. • James A. Hayes, Jr., was sentenced in January 2014 to one year of probation with a condition of eight months home detention.
In a related action today, the United States Securities & Exchange Commission filed civil charges against Wagner in federal court in Charlotte. U.S. Attorney Tompkins thanked the U.S. Securities & Exchange Commission, Division of Enforcement for its assistance in this investigation.
Operation Insider Out in the Western District of North Carolina is being handled by the Charlotte Division of the FBI. The prosecution for the government was handled by Assistant United States Attorney Kurt W. Meyers.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. 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 more than 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, visit www.stopfraud.gov.
Major Drug Trafficker Found Guilty in Manhattan Federal Court of Two Murder-For-Hire Conspiracies, Attempted Murder, Narcotics and Firearms OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ROGER KEY, a/k/a “Luchie,” a violent and large-scale drug trafficker who operated in Manhattan and the Bronx, New York, was found guilty yesterday in Manhattan federal court of two murder-for-hire conspiracies, attempted murder, and narcotics and firearms offenses. KEY was convicted following a three-week jury trial before U.S. District Judge Sidney H. Stein.
Manhattan U.S. Attorney Preet Bharara said: “With this verdict, the jury has done a great service to the citizens of New York City, convicting Roger Key of numerous violent offenses, including murder-for-hire, and orchestrating a sprawling drug trafficking network. I want to again thank New York County District Attorney, Cyrus Vance and his office, who began the investigation into this alleged narcotics crew and shared the fruits of their investigation with our Office, enabling us to build this case and bring this defendant to justice.”
According to court documents and the evidence presented at trial:
From 2009 through September 2012, KEY was one of the most significant narcotics distributors operating in New York City. KEY supplied powder cocaine and crack cocaine to various drug organizations operating in Manhattan and the Bronx. KEY also used, carried, and possessed firearms during the narcotics conspiracy.
In September 2010, KEY conspired to commit the murder-for-hire of Terry Harrison, who was shot and killed on September 10, 2010, at 681 Courtlandt Avenue in the Bronx. KEY paid another co-conspirator for committing the murder of Harrison, who was the leader of a rival drug-trafficking crew with whom KEY and his co-conspirators were engaged in a violent conflict over drug-trafficking territory in the Bronx.
From October 2011 through December 2011, KEY conspired to commit the murder-for-hire, and aided and abetted the attempted murder-for-hire of Matthew Allen on November 16, 2011, which resulted in the non-fatal shooting of another victim, at 302 Brooklyn Avenue, Brooklyn, New York.
KEY was convicted of narcotics conspiracy, conspiracy to commit the murder-for-hire of Matthew Allen, the attempted murder-for-hire of Matthew Allen, conspiracy to commit the murder-for-hire of Terry Harrison, and firearms possession and use in connection with both the narcotics conspiracy and the Matthew Allen murder plot. KEY was acquitted of the murder-for-hire of Terry Harrison, murder in connection with a drug crime, and a firearms possession charge in connection with that murder.
KEY faces two mandatory sentences of life in prison without the possibility of parole, plus a mandatory consecutive term of 30 years in prison, and he will be sentenced by Judge Stein on August 19, 2014. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
KEY is the last of 18 defendants originally charged in this case to be convicted in proceedings before Judge Stein. KEY is also the last of a total of four individuals who have been convicted of offenses relating to the conspiracy to commit the murder-for-hire and the attempted murder-for-hire of Matthew Allen.
Mr. Bharara praised the outstanding work of the Federal Bureau of the Investigation, Westchester County Violent Crimes Task Force, and the New York City Police Department, including the 40th Precinct Detective Squad and the Manhattan North Narcotics Major Case Unit, who conducted the investigation of the case. Mr. Bharara also thanked the New York County District Attorney’s Office, who provided critical assistance in the investigation and prosecution of the case.
This case is being overseen by the Office’s Violent Crimes Unit. Assistant United States Attorneys Santosh Aravind, Abigail S. Kurland, and Adam Fee are in charge of the prosecution.
Lingerie Business Owner Pleads Guilty to BriberyRead the Press Release
ATLANTA – Jae Jun Bae has pleaded guilty to offering bribes to Doraville employees to obtain a zoning change for his business.
“Bae attempted to buy his way around certain zoning restrictions by offering bribes to Doraville employees,” said United States Attorney Sally Quillian Yates. “But, we all play by the same rules. As expected, those employees reported Bae’s conduct and, as a result, Bae has been brought to justice.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “While this case serves to remind us of those individuals so willing to violate the law at any level, it should also reaffirm a faith in our public servants who saw this for what it was and reported it to the proper authorities. The FBI will continue to dedicate significant investigative resources as we work with our various law enforcement partners in combating public corruption.”
“Doraville is thankful to be able to work in partnership with the FBI. Public corruption erodes the confidence and trust that our citizens have in our government officials and employees,” said Doraville Police Chief John King. “Doraville Police works tirelessly with the citizens and our partnering law-enforcement agencies to make sure that our city is free of corruption and filled with trust.”
According to United States Attorney Yates, the charges, and other information presented in court: Bae is the owner of Moon Lingerie, a lingerie business located in Doraville, Ga. In April 2012, Bae bought a commercial building located on Buford Highway in Doraville, Ga. At the time of the purchase, the property was zoned for retail use and could not be used as a wholesale location as Bae wanted. In August 2012, Bae met with an employee of the City of Doraville and attempted to give the employee an envelope of cash, in an effort to have the Buford Highway property re-zoned. The employee did not take the envelope and reported Bae’s attempt to local law enforcement authorities.
In October 2013, Bae asked to meet with a member of Doraville’s Community Development Department. Based on the allegations from August 2012, the staff member (“Staff Member”) reported Bae’s request for a meeting to law enforcement authorities and agreed to cooperate with them. Thereafter, the FBI and the Doraville Police Department conducted a series of undercover operations involving Bae. In particular, on October 17, 2013, Bae met with the Staff Member and an undercover officer (“UC”), who was posing member of Doraville’s Community Development Department. During the meeting, Bae agreed to pay approximately $100,000 to have the Buford Highway property re-zoned to permit wholesale uses. On October 18, 2013, Bae met with the UC and re-negotiated the price to obtain a wholesale re-zoning from $100,000 down to $70,000. On October 29, 2013, Bae made a $5,000 payment to the Staff Member as a deposit to get the Buford Highway property re-zoned. On the next day, Bae gave the UC a $3,000 payment, which the UC said would secure a vote in favor of Bae’s re-zoning application. On November 14, 2013, the FBI arrested Bae.
On December 3, 2013, Bae, 35, of Duluth, Ga., was indicted by a federal grand jury on charges of wire fraud and bribery. Today, Bae pleaded guilty to one count of honest services wire fraud. In determining Bae’s sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
The sentencing hearing is scheduled for June 30, 2014, at 10:00, before United States District Judge Thomas W. Thrash, Jr.
This case is being investigated by the Federal Bureau of Investigation and the Doraville Police Department.
Assistant United States Attorney Jeffrey W. Davis and Special Assistant United States Attorney Erin Sanders are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Lee's Summit Sex Offender Sentenced for Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Lee’s Summit, Mo., man who is a registered sex offender was sentenced in federal court today for possessing child pornography.
Thomas A. Shields, 45, of Lee’s Summit, was sentenced by U.S. District Judge Dean Whipple to 10 years in federal prison without parole.
On Sept. 16, 2013, Shields pleaded guilty to one count of possessing child pornography and one count of accessing the Internet with the intent to view child pornography.
According to court documents, Shields was contacted at his residence on March 4, 2011, by law enforcement officials as part of a sex offender compliance sweep. Shields is required to register as a sex offender due to his 1995 felony conviction for sodomy with a victim under the age of 14, for which he was sentenced to eight years in state prison. Officers noticed that he possessed a computer he had not properly registered as required by the state’s Sex Offender Registry and he was arrested.
Shields’s computer was seized, according to court documents, and an examiner located numerous images of child pornography on the computer, including prepubescent children, sadistic conduct, and bondage. The examiner also found evidence of child pornography movies that had been downloaded, viewed, then deleted. The forensic examiner located thousands of images that had been deleted from the computer.
This case was prosecuted by Assistant U.S. Attorney Teresa Moore. It was investigated by the Lee’s Summit, Mo., Police Department and the Jackson County, Mo., Sheriff’s Department.
Project Safe Childhood
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."Lee County Man Sentenced to More Than Eight Years in Prison for Five North Alabama RobberiesRead the Press Release
BIRMINGHAM -- A federal judge today sentenced a Lee County man to eight years and four months in prison for a 2013 string of bank robberies in North Alabama, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.JIMMY DAWSON CUNNINGHAM JR., 39, of Salem, Ala., pleaded guilty in January to five bank robberies between Jan. 3, 2013, and Jan. 14, 2013. The banks robbed over those 12 days were: National Bank of Commerce, Shades Creek Parkway, Birmingham; PNC Bank, Euclid Avenue, Mountain Brook; First Community Bank, Marktplatz Center, Cullman; Regions Bank, Culver Road, Mountain Brook; and Union State Bank, Pelham Parkway, Pelham.
U.S. District Judge Inge P. Johnson sentenced Cunningham to prison and ordered him to pay $14,780 in restitution to the four banks that lost money in his robberies. Cunningham took money in all five robberies, but the money he robbed from First Community Bank in Cullman was recovered following the crime.
The FBI, in conjunction with the Jefferson County Sheriff's Office and the Mountain Brook, Cullman and Pelham police departments, investigated the case, which Assistant U.S. Attorney Joseph P. Montminy prosecuted.
Joint Federal-State Investigation charges 12 Milwaukee Residents with Dog FightingRead the Press Release
James L. Santelle, United States Attorney for the Eastern District of Wisconsin and John T. Chisolm, Milwaukee County District Attorney announced today that 10 defendants were charged federally and 2 defendants were charged locally for engaging in animal fighting ventures. The five federal indictments identified a total of 23 dogs possessed by the defendants for the purpose of participating in and training for dog fighting. The defendants are charged with violations of either Title 7, United States Code, Section 2156(b) (buying, selling, delivering, possessing, training or transporting animals for participation in an animal fighting venture); or with violations of Title 18, United States Code, Section 371 (conspiracy to commit the aforementioned crime). All of the defendants are residents of Milwaukee, WI. The defendants’ federal charges are as follows:
No of Counts Defendant/Age Charges Penalties2
Tiana Arnold
18 U.S.C. §371
7 U.S.C. §2156(b)For each count- 5 years, $250,000 fine, 3 years supervised release.
Demetrius Boyce, 45
7 U.S.C. §2156(b)
For each count- 5 years, $250,000 fine, 3 years supervised release.
2
Alicia Brown, 40
18 U.S.C. §371
7 U.S.C. §2156(b)For each count- 5 years, $250,000 fine, 3 years supervised release.
2
Tyrone Lewis, 30
18 U.S.C. §371
7 U.S.C. §2156(b)For each count- 5 years, $250,000 fine, 3 years supervised release.
2
Cheryl Richards, 56
18 U.S.C. §371
7 U.S.C. §2156(b)For each count- 5 years, $250,000 fine, 3 years supervised release.
2
Gary Richards, 56
18 U.S.C. §371
7 U.S.C. §2156(b)For each count- 5 years, $250,000 fine, 3 years supervised release.
4
Terry Robinson, 35
18 U.S.C. §371
7 U.S.C. §2156(b); 18 U.S.C. §1952(a)(3)-interstate travel or transportation in aid of unlawful activityFor each count- 5 years, $250,000 fine, 3 years supervised release.
1
Emmitt Smith, 37
7 U.S.C. §2156(b)
5 years, $250,000 fine, 3 years supervised release.
2
William Walker, 31
18 U.S.C. §371
7 U.S.C. §2156(b)For each count- 5 years, $250,000 fine, 3 years supervised release.
2
Darry Wortham, 29
18 U.S.C. §371
7 U.S.C. §2156(b)For each count- 5 years, $250,000 fine, 3 years supervised release.
Two defendants are charged with violations of Wisconsin statutes, namely: Travis L. Hazlett (age 31) and Thomas Zollicoffer (age 24). Hazlett is charged in a four-count criminal complaint, including charges of Instigating Fights Between Animals and Mistreatment of Animals. Both Charges are Class I felonies with a maximum penalty each of 3 years and 6 months imprisonment, and a $10,000 fine. Zollicoffer is charged in a four-count criminal complaint with violations of the same statutes.
Today, law enforcement officials arrested nine of the charged defendants. One individual, William Walker is still at large. Law enforcement executed six federal search warrants, whereupon they recovered 22 live dogs, 1 dead dog, 3 firearms, and other instrumentalities associated with dog fighting.
The defendants were charged after a long-term investigation conducted by the Milwaukee Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, in conjunction with the Milwaukee County District Attorney’s Office, the United States Attorney’s Office, the American Society for the Prevention of Cruelty to Animals (ASPCA), and the Milwaukee Area Domestic Animal Control Commission (MADACC). The Drug Enforcement Administration, Milwaukee High Intensity Drug Trafficking Area, the Milwaukee County Sheriff’s Department, Greenfield Police Department, Wisconsin State Patrol, West Allis Police Department, Wisconsin Division of Criminal Investigation, United States Marshals Service, and Homeland Security Investigations also assisted in the investigation.
The cases are being prosecuted by Assistant U.S. Attorney Bridget J. Domaszek and Assistant District Attorney Kurt Benkley.
An indictment is merely the formal method of charging an individual and does not constitute inference of his or her guilt. An individual is presumed innocent until such time, if ever, that the government establishes his or her guilt beyond a reasonable doubt.
Illinois Man Sentenced to 40 Years for Distribution of Child Pornography in Xbox StingRead the Press Release
Orlando, Florida– United States Attorney A. Lee Bentley, III announces that Scott Anthony Estes (19, New Berlin, Illinois) was sentenced to 40 years in federal prison for distributing child pornography. He was also ordered to serve a life term of supervision, following his incarceration. Estes pleaded guilty in November 2013.
According to the plea agreement, Estes began contact with a 10-year-old boy on Xbox Live. Estes attempted to convince the child to engage in a sexual relationship. The child told his father about the conversation, and the father contacted law enforcement. Acting in an undercover capacity, agents initiated an investigation and continued communication with Estes. Believing that he was still talking to the child, Estes sent videos depicting child pornography and images of his genitalia.
Estes was arrested by law enforcement on March 22, 2013. During an interview, he stated that he had met the child while playing a video game played on Xbox. Estes also admitted to sending a picture of his genitalia to the child, as well as child pornography videos. He stated that he had asked the child to send naked pictures of himself. Estes also said that he had been in communication with a 13-year-old boy in Texas, and that he had met that child while playing Xbox as well.
Following Estes’ arrest, a search warrant was conducted on his e-mail address. An examination of his e-mail account showed that he distributed child pornography to numerous persons between July 2012 and March of 2013. Among the images and videos of child pornography distributed, several included pornographic videos that Estes had produced himself, while sexually abusing at least two children. A forensic review of Estes’ cellular telephone showed that he possessed more than 1,200 images of child pornography, including images depicting infants being sexually abused. A majority of the images of child pornography depict children between the ages of three and eight.
This case was investigated by Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Christopher LaForgia.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Hogsett Announces Sentencing of Vermillion County ManRead the Press Release
U.S. Attorney says prosecution of illegally-armed felon is part of Violent Crime Initiative
CLINTON, IN - Joseph H. Hogsett, the United States Attorney, announced today the federal sentencing of a Vermillion County man on federal firearms charges. Danny K. Hight, age 47, of Cayuga, was sentenced by U.S. District Judge William Lawrence to 70 months (5 years, 10 months) for illegally possessing a firearm as a convicted felon.
“Three years ago, this Office pledged to federally prosecute more illegally-armed felons than ever before,” Hogsett said. “Our success in that effort has been due to cases similar to what has been alleged here - collaborative investigations targeting career criminals who view our local jails as their personal revolving door.”
The indictment alleges on October 11, 2012, law enforcement found Hight to be in possession of a Mossberg 12 gauge shotgun. Hight is a convicted felon, and therefore is not legally entitled to possess a firearm. His extensive criminal history includes convictions in Vermillion County for operating a vehicle while intoxicated, residential entry and criminal recklessness. He also has prior convictions in Marion County and Hancock County on charges of forgery and burglary.
This prosecution comes as part of the U.S. Attorney’s Violent Crime Initiative (VCI), and is the result of a collaborative investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, as well as Vermillion County law enforcement.
Announced in March of 2011, the Violent Crime Initiative represents a district-wide strategy to work with local law enforcement and county prosecutors to combat drug traffickers and criminals that use and carry firearms in their illegal activities. The VCI has produced a dramatic increase in the number of gun-related charges brought federally. In the year preceding the initiative, there were just 14 defendants charged with federal gun crimes by the U.S. Attorney’s Office. In the nearly three years since, more than 225 defendants have been charged.
“Through our Violent Crime Initiative, and in working with our law enforcement partners here in Vermillion County, we’re sending a united message that illegally-armed felons will face the full force of federal law,” Hogsett added.
According to Assistant U.S. Attorney Matthew J. Rinka, who is prosecuting the case for the government, Hight also must serve three years of supervised release after his prison term.
Hogsett Announces Federal Bank Fraud Charges Against Rockville ManRead the Press Release
Local automobile dealer defrauds bank of nearly $200,000.00
ROCKVILLE, IND- Joseph H. Hogsett, United States Attorney announced today that federal charges have been filed against a Rockville man for one count of bank fraud. Kevin B Jacks, 61, Rockville, has been formally charged by information and has signed an agreement to plead guilty in federal court.
“Each one of us has to be accountable for our actions both in our private and professional lives,” said Hogsett. “If you steal from financial institutions, you steal from all Hoosiers and my office will hold you responsible.”
According to the information, Jacks was the president and owner of Jacks and Jacks Motor Company (JJMC) in Rockville. He bought and sold vehicles for the dealership which were financed by First Financial Bank, N.A. (First Financial). Jacks had a security agreement with First Financial on the inventory whether presently owned or later acquired. Jacks had a wholesale financing plan, commonly referred to as a “floor plan” whereby Jacks was to make timely payment to First Financial upon the sale of automobiles covered in the agreement. First Financial would regularly send an auditor to JJMC to inspect the inventory and determine which automobiles covered by the floor plan were still for sale and which had been sold.
The information alleges that on various occasions between May 2009 and May 2011, Jacks would sell automobiles covered under the plan but failed to make the required payment. To conceal the fact that these automobiles were sold, Jacks would have the owner return the vehicle to JJMC business lot so that he could fraudulently represent to First Financial and their auditors that the automobiles had not yet been sold. The government further alleges that Jacks made false statement about the location of certain automobiles which had been sold out of trust but were not present at the JJMC lot at the time of audits.
According to Assistant U.S. Attorney James Warden who is prosecuting the case for the government, Jacks faces a maximum of 10 years in prison and a $250,000 fine. No future court date has been set.
An information is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Hogsett Announces Crawfordsville Man Charged with Theft of Government FundsRead the Press Release
Allegations of theft of unemployment insurance benefits and tax refunds
INDIANAPOLIS - Joseph H. Hogsett, the United States Attorney, announced today that Pedro Sanchez, 34, Crawfordsville, has been charged by Information with theft of government funds related to fraudulent receipt of unemployment benefits and the filing of fraudulent tax returns.
“Theft of unemployment benefits takes money from some of the neediest Hoosier families. In addition, schemes such as those alleged against Mr. Sanchez increase the cost of government to honest, hard-working Hoosier taxpayers,” said Hogsett.
Pedro Sanchez owned Video Y Discoteca El Charron (“ElCharro”) a business in Crawfordsville that operated as a Mexican grocery store and diner with a money services business enabling customers to wire money and cash checks.
The Information alleges that Sanchez, through his Mexican grocery store business, which also contained a money service business, cashed numerous IRS refund checks that were issued based on fraudulent tax returns. On some occasions, Sanchez cashed the refund check himself. On one occasion, it is alleged that a tax return dated July 12, 2010 was prepared in the name of A. Chavez and submitted to the IRS for a refund. A. Chavez did not work for the employer listed on the W-2 and the refund check in the amount of $4,556 was endorsed by Sanchez. On other occasions, the tax refund checks were cashed by other people but went through the Mexican grocery store business account of Sanchez. Approximately $1,472,673 is alleged to have been received by Sanchez and others in fraudulent tax returns between approximately January 2009 and February 2011.
The tax refund scheme suspected in this investigation includes obtaining refunds for individuals using tax identification numbers listing wages that cannot be verified by employers. This scheme includes listing identical employers, similar and identical taxpayer home addresses, similar and identical wage and withholding information and claiming dependents which resulted in additional child tax credit. Many of the returns listed the filing status of “Head of Household” which is the most advantageous filing status of an unmarried person.
The Information also alleges that, beginning in March of 2010, Sanchez stole $29,000 of federal unemployment benefits. In May of 2010, an individual went to the Lafayette Indiana Department of Workforce Development office (“IDWD”) to obtain a printout of her past wages to assist her in applying for public aid. In the process of assisting her, the IDWD determined that she was receiving unemployment benefits. The individual had previously received the benefits, but at that time was not receiving them. IDWD determined that a benefits debit card was being sent to an address in Crawfordsville associated with a family member of Sanchez. While looking further into this matter, IDWD determined that multiple debit cards were being sent to the same address.
The Information further alleges that Sanchez used these debit cards and others to conduct ATM transactions without permission or authority of IDWD or the individuals in whose names the debit cards had been issued. Sanchez used the funds for his own personal use.
A person is eligible for unemployment insurance benefits if they are unemployed through no fault of their own. Upon becoming involuntarily unemployed, a worker could make a claim for benefits either by appearing in person at the IDWD office, or by submitting an application via the internet to the IDWD. This electronic application includes the person’s name, social security number, the last employer’s name, address, dates worked and reason for becoming unemployed. Once the application is approved, an account is set up and the worker would receive a debit card containing a dollar amount equal to the amount of unemployment insurance benefits due. In order to receive continuing benefits, each week thereafter, the worker is required to either appear in person or submit, via the internet to the IDWD, claim vouchers requesting additional payment of benefits. The claim voucher requires a worker to certify whether he or she had worked and received any earnings during the weekly period.
An Information or Indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Henrico Couple Sentenced to 15 Years for Production of Child PornographyRead the Press Release
RICHMOND, Va. – Fidel Rodriguez, 54, and Yida Perez, 44, of Henrico County, Virginia, were sentenced today to 15 years' imprisonment in U.S. District Court on four counts of production of child pornography. The defendants were convicted of the charges in a bench trial in November.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after the defendants were sentenced by Senior United States District Judge Robert E. Payne.
According to court documents and evidence presented at court, Rodriguez and Perez, who are husband and wife, sexually abused a minor relative for over six years and produced child pornographic images using the victim as a subject. The images were produced using a digital camera. Forensic analysts recovered dozens of the child pornographic images and videos saved on various forms of computer media throughout the defendants' residence, along with additional child pornographic images downloaded from the Internet. Undercover agents initially detected an individual distributing child pornography from the defendants' residence in 2013 and ultimately arrested Rodriguez and Perez on production of child pornography charges after a grand jury indictment in September.
Following their term of imprisonment, Rodriguez and Perez, who are Cuban citizens and were granted residency in the United States over six years ago, will be required to register as sex offenders in any U.S. jurisdiction in which they live, work, or attend school.
This case was investigated by the Federal Bureau of Investigation, the Henrico County Police Department and the Richmond Police Department as part of the FBI's Innocent Images Task Force. Special Assistant United States Attorney Gene Fishel of the Virginia Attorney General’s Office prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Guam Drug Traffickers Indicted in Joint Federal and Local InvestigationRead the Press Release
Hagatna, GU - ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that a federal grand jury returned a multi-count indictment charging three (3) individuals with conspiracy to distribute more than 50 grams of methamphetamine, two counts of attempted possession of methamphetamine with intent to distribute, and giving notice of a search warrant: JAYVIN WYLL UEDA REMOKET, 30, FREDERICK A. OBAK, 47, and AMOS SHIOICHI UEDA, 46, were arrested today by law enforcement agents. A conviction for conspiracy to distribute more than 50 grams of methamphetamine carries a mandatory minimum sentence of ten (10) years imprisonment and a maximum of life imprisonment.
Initial appearances for defendants were held on April 3, 2014, at 4:00 p.m.
This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, (OCDETF) a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
This OCDETF investigation involved federal agents and local law enforcement officers of the Drug Enforcement Administration (DEA), Federal Bureau of Investigations (FBI), U.S. Postal Inspection Service (USPIS), and Guam Customs and Quarantine Agency (GCQA); with assistance from the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), Guam Police Department (GPD), Guam Probation Division and Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney Rosetta San Nicolas.
The public is reminded that an indictment contains only allegations and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.Glenpool Woman Pleads Guilty to Forgery and Tax FraudRead the Press Release
TULSA, Okla. – A Glenpool woman pleaded guilty on Wednesday to forgery and tax charges, announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
Christi Bender-Anthony, 37, of Glenpool, entered pleas of guilty before U.S. District Court Judge John E. Dowdell to one count of making, uttering and possessing a forged security and one count of subscribing a false tax return.
According to court documents, from 2010 to 2012, while employed as an office manager at Process Products & Service Co., Bender-Anthony forged over 100 company checks for her own benefit, resulting in a loss of over $300,000. In addition, Bender-Anthony admitted to the court that she filed false federal tax returns for the years 2010, 2011, and 2012 by knowingly failing to report the income she obtained by means of the checks she forged. Bender-Anthony admitted that she owed over $100,000 in taxes as a result.
Bender-Anthony faces maximum terms of imprisonment of ten years on the forgery charge and three years on the tax charge, in addition to possible fines. The sentencing date has been scheduled for July 2, 2014.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Kevin C. Leitch prosecuted this case on behalf of the United States of America.
Geronimo Man to Serve 210 Months in Prison for Unlawful Possession of A FirearmRead the Press Release
Oklahoma City, Oklahoma – FLORENTINO VILLANUEVA, JR., 38, of Geronimo, Oklahoma, has been sentenced by United States District Judge Joe Heaton to serve 210 months in federal prison for being a convicted felon in possession of a firearm and ammunition, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to court records, a wide-ranging investigation revealed that Villanueva was linked to methamphetamine trafficking in the Comanche County area. During the execution of a search warrant at Villanueva’s house at 926 SW 35th Street in Lawton, Oklahoma, a Springfield Model XD .40 caliber pistol was discovered along with ammunition. Further investigation revealed that Villanueva had previous felony convictions in Comanche County for distribution of marijuana, first-degree robbery, and assault and battery on a police officer. Under federal firearms laws, Villanueva was prohibited from being in possession of any firearm or ammunition because of his prior felony convictions.
On September 3, 2013, Villanueva was indicted by a federal grand jury for being in unlawful possession of a firearm following his felony conviction. He pled guilty on November 22, 2013. At his sentencing hearing earlier this week, Judge Heaton found that due to Villanueva’s prior criminal history he was an Armed Career Criminal which resulted in an enhanced penalty increasing the minimum punishment to 15 years in prison.
In addition to sentencing Villanueva to serve 210 months, he was ordered to serve five additional years of supervised release after he is released from prison.
This sentence is the result of an investigation conducted by the Bureau of Alcohol Tobacco Firearms and Explosives, the Lawton Police Department, and the Oklahoma Bureau of Narcotics and Dangerous Drugs. The case was prosecuted by Special Assistant U.S. Attorney Mark R. Stoneman.
Reference is made to public filings for further information.
Gary Eugene Teague Sentenced to Serve 200 Months in Prison for Conspiring to Distribute OxycodoneRead the Press Release
GREENEVILLE, Tenn. – Gary Eugene Teague, 45, of Newport, Tenn., was sentenced on Apr. 1, 2014, by the Honorable Leon Jordan, U.S. District Court Judge, to serve 200 months in federal prison for conspiring to distribute oxycodone. Upon his release from prison, Teague will be subject to supervised release under the supervision of the U.S. Probation Office for six years. There is no parole in the federal system.
Teague and nine others were named in an eight-count indictment in December 2012, charging them with drug trafficking of oxycodone. The charges initiated from a lengthy investigation of individuals who traveled to numerous pain clinics throughout Tennessee to obtain oxycodone to distribute in eastern Tennessee. The total conspiracy involved over 1 million milligrams of oxycodone, which is the equivalent of over 30,000 dose units of 30 milligram oxycodone tablets.
All 10 individuals charged in the indictment have now been convicted and Teague was the next to last to be sentenced. A sentencing hearing for Billy Webb is scheduled for June 24, 2014.
U.S. Attorney Bill Killian commended the law enforcement agencies involved in this investigation and stated, “We appreciate the collaborative efforts of the law enforcement agencies involved in this investigation. We will continue to work closely with law enforcement to investigate these types of offenses and aggressively prosecute those who traffic prescription drugs and the ‘pill mills’ that supply drug trafficking organizations,” stated Killian.
This investigation was the result of a joint investigation by the Cocke County Sheriff’s Office and Tennessee Bureau of Investigation. Assistant U.S. Attorney Suzanne Kerney-Quillen represented the United States.
Former Senior Managing Director of Investment Bank Pleads Guilty in Manhattan Federal Court to Insider Trading and False Statements ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that FRANK PERKINS HIXON, JR., a former Senior Managing Director of Evercore Group, LLC, a subsidiary of Evercore Partners Inc. (“Evercore”), pled guilty yesterday in Manhattan federal court to insider trading and false statement offenses. Specifically, HIXON admitted to using inside information to trade and cause others to trade in the securities of Evercore, Westway Group Inc. (“Westway”), and Titanium Metals Corporation (“Titanium”). HIXON also admitted making false statements to agents of the Federal Bureau of Investigation (“FBI”) during the course of the investigation into his insider trading. The defendant was arrested on these charges in February 2014, and pled guilty yesterday afternoon to a six-count Information before U.S. District Court Judge Ronnie Abrams.
Manhattan U.S. Attorney Preet Bharara said: “With his guilty plea, Frank Perkins Hixon becomes the 80th defendant we have charged since August 2009 who has been convicted of insider trading offenses. This Office will continue to investigate and prosecute the widespread insider trading that has been shown to infect our markets, especially when those individuals try to evade detection by lying about their conduct.”
According to the allegations contained in the Information filed today in Manhattan federal court, the underlying criminal Complaint filed on February 20, 2014, and statements made during court proceedings:
Between April 2010 and January 2014, HIXON was a Senior Managing Director with the Mining and Metals Group of Evercore. HIXON used material non-public information that he acquired as part of his employment with Evercore to trade and cause trades in brokerage accounts belonging to the mother of his young child (“Individual A”), who lived in Austin, Texas, and to HIXON’s close relative (“Individual B”), who lived in Johns Creek, Georgia.
In 2011, HIXON led an Evercore team in advising Westway about a non-public offer from another company (“Company A”) to purchase some of its business components and, more generally, in connection with potential transactions concerning Westway’s other business components. Company A’s offer was made in early September 2011, and a Special Committee was formed around that time to consider the offer and other strategic alternatives. Those developments were not announced publicly until December 15, 2011. Meanwhile, between October 21 and December 15, 2011, HIXON purchased, and caused to be purchased, 229,000 shares of Westway for Individual A’s brokerage account by logging into Individual A’s account from various locations, including Evercore’s Manhattan office. As the negotiations for the contemplated Westway transactions became protracted, HIXON sold and caused to be sold about 140,000 of the Westway shares that had accumulated in Individual A’s account, for a profit of approximately $260,000. Later, in 2012, HIXON made additional purchases of Westway shares for Individual A’s account, in advance of a tender offer for Westway’s outstanding equity securities that was announced on December 20, 2012. Profits reaped from sales of those shares amounted to approximately $104,000.
In October 2012, HIXON was invited, along with other Evercore personnel, to meet with a Special Committee of Titanium’s board of directors to discuss a potential engagement in connection with an unspecified $3 billion transaction. At the October 23, 2012, pitch meeting, which HIXON attended by teleconference from London, England, HIXON and the rest of the Evercore team learned that the transaction being considered was an acquisition of Titanium by Precision Castparts Corp. (“PCP”), a manufacturer of complex metal components and products. HIXON also learned the approximate offer price, and that the transaction was likely to close before year’s end.
Within approximately one hour of the meeting with the Special Committee, HIXON began buying 20,000 Titanium shares for Individual A’s account from a mobile device traced back to London, England. Eight days later, after HIXON had returned from England, 20,000 more shares of Titanium were purchased for Individual A’s account, mostly through logins from Evercore’s Manhattan office. That same day, HIXON caused Individual B to buy 15,000 shares of Titanium. After market close on November 9, 2012, Titanium announced PCP’s tender offer for its shares. The next trading day, November 12, 2012, all 40,000 of Individual A’s shares of Titanium were sold for a profit of approximately $180,000. Later that month, Individual B’s Titanium shares were sold for a profit of approximately $70,000.
On January 14, 2013, HIXON attended an Evercore partnership meeting at which he learned that Evercore would be announcing record financial results for the fourth quarter of 2012. During the two days preceding the bank’s announcement on January 30, 2013, HIXON, logging into Individual A’s account from Evercore’s Manhattan offices and from his home in Manhattan, bought 27,000 shares of Evercore for the account. At the same time, HIXON caused Individual B to purchase 10,000 shares of Evercore for Individual B’s account. After Evercore’s earnings release, Individual A and Individual B sold all of their Evercore shares, and reaped a combined profit of approximately $96,000.
In February 2013, Evercore asked HIXON to respond to a request from the Financial Industry Regulatory Authority (“FINRA”) and to identify any known names from a list of people and entities that had traded in Titanium stock prior to PCP’s tender offer. Although Individual A and B were both on the FINRA list, HIXON responded by email: “No known relationships.”
When Evercore confronted HIXON about his failure to identify Individual A – who, as noted above, is the mother of his young child – HIXON claimed not to know Individual A by her legal name, which was what appeared on the FINRA list, and to know her only by a different name she uses. Documents produced by Evercore, including text messages and emails between HIXON and Individual A, make clear that HIXON had, in fact, long been aware of Individual A’s legal name. And bank records show that he wrote numerous large checks to Individual A, in her legal name, from 2009 to 2010. On January 28, 2014, HIXON met with two FBI agents and told them, among other things, that he did not have access to and had never traded in Individual A’s brokerage account.
When Evercore confronted HIXON about his failure to identify Individual B, his close relative, HIXON responded that the associated location given for Individual B on the FINRA list – Duluth, Georgia – was inaccurate, because Individual B lives in Johns Creek, Georgia. Johns Creek shares a zip code with portions of Duluth, and was only incorporated as its own city in December 2006. The city reflected on the brokerage account statements for Individual B’s account is Duluth.
HIXON, 55, of New York, New York, pled guilty to three counts of securities fraud, two counts of securities fraud in connection with a tender offer, and one count of making a false statement. Each of the securities fraud charges carries a maximum term of 20 years in prison, and the false statement charge carries a maximum term of five years in prison. HIXON is scheduled to be sentenced by Judge Abrams on August 1, 2014, at 11:00 a.m. As part of his guilty plea, HIXON also agreed to forfeit $710,000 to the United States. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the investigative work of the FBI and thanked the Securities and Exchange Commission, which has filed civil charges in a separate action. Mr. Bharara also thanked Evercore for its cooperation in this matter.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. For more information on the task force, please visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Sarah E. McCallum is in charge of the prosecution.
Former Bank Employee Sentenced to Prison in Fraud SchemeRead the Press Release
Used her Position in the Bank to Apply for Mortgages in the Names of Family Members and Used the Loan Proceeds for Her Personal Benefit
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Jill Dail, age 59, of Cambridge, Maryland, today to 16 months in prison, followed by five years of supervised release, for bank fraud in connection with a scheme in which she and her brother, Jeffrey Scott Dail, fraudulently obtained mortgage loans in the names of family members, using the proceeds for their own benefit. Judge Motz sentenced Jeffrey Dail, age 49, also of Cambridge, today to a year and a day in prison, followed by three years of supervised release, for his role in the scheme. Judge Motz ordered ordered Jeffrey Dail to pay restitution of $248,000. The amount of restitution for Jill Dail will be determined at a later date.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to her plea agreement, Jill Dail was a loan settlement processor in the mortgage department at a Salisbury, Maryland, bank until she was terminated in June 2007, as part of a reduction in the bank’s workforce. Shortly thereafter, Dail was privately hired by the manager of the bank’s mortgage department to continue to do the same loan processing work she had performed as an employee of the bank. The bank manager paid Dail out of his own funds and gave her full access to the bank premises, computer system and loan files. Dail continued to represent herself as a bank employee in her dealings with title companies and other businesses.
Jill Dail admits that beginning before January 2006 through at least August 2009, she and her brother, Jeffrey Dail, applied for mortgage loans in the names of family members and used the proceeds of the loans for their personal benefit. The Dails forged the signature of family members and bank officials on the loan applications, causing the bank to approve the applications and authorize the distribution of the loan proceeds at settlement. In each instance, the family members whose identities were used on the loan applications, and whose properties were used as collateral for the loans, had no knowledge of the applications or the loans.
Based on the assurances of Jill Dail, with whom the title company had a well-established business relationship, title company employees notarized the signatures of the family members on the settlement documents and disbursed the loan funds at settlement, as directed by Jill Dail, to herself, to Jeffrey Dail, or to their creditors. The balance of loan funds still unpaid is approximately $687,923.67.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage Fraud/index.html.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Kathleen O. Gavin, who prosecuted the case.
Former Apartment Complex Manager Indicted for Embezzlement of Public Housing FundsRead the Press Release
Orlando, FL – United States Attorney A. Lee Bentley, III announces the return by a grand jury of an indictment charging Liliam Patricia Urbina (46, Sanford) with theft and embezzlement concerning programs receiving federal funds. If convicted, she faces a maximum penalty of 10 years in federal prison. The indictment also notifies Urbina that the United States intends to forfeit $80,168.16, which is alleged to be the funds she obtained through the offense.
According to the indictment, Urbina was employed as the manager of an apartment complex (“Tuscany at Aloma”) owned and operated by the Winter Park Housing Authority, which receives federal funding and provides affordable housing. As the manager, she collected rent from tenants of the apartment complex. The indictment alleges that beginning on or about October 2011 through on or about March 2013, Urbina used the rent payments provided to her by tenants, for her own purposes. Among other things, she deposited the money orders that she received from tenants into bank accounts which she controlled, cashed the money orders, and used them to pay her own rent and purchase a vehicle.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the U.S. Department of Housing and Urban Development, Office of Inspector General. It will be prosecuted by Assistant United States Attorney Daniel C. Irick.
Folk Nation Gang Member Pleads Guilty to 2008 Murder of Anthony ThomasRead the Press Release
Earlier today, Geraldo Elainor, a member of the violent Brooklyn street gang the “Six Tre Outlaw Gangsta Disciples Folk Nation,” also known as the “Folk Nation,” pleaded guilty to racketeering, including the 2008 murder of Anthony Thomas as a predicate racketeering act, and discharge of a firearm in connection with the racketeering offense. Today’s plea took place before United States District Judge Nicholas G. Garaufis. If the Court accepts the defendant’s guilty plea, the defendant will be sentenced to 25 years in prison.
The plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York.
“In this senseless murder, the defendant brazenly took the life of Anthony Thomas, who unwittingly made the fatal mistake of exercising in a playground controlled by Folk Nation members,” stated United States Attorney Lynch. “Acting on the gang’s mandate to kill those they believed to be rival gang members, the defendant chased the victim out of the Ebbets Field playground without provocation or justification and killed him. We hope the victim’s family can take some measure of solace in knowing that the individual responsible for their son’s murder has been brought to justice.” Ms. Lynch thanked the FBI and the New York City Police Department for their joint investigation leading up to this case.
Throughout most of its existence, the Six Tre Folk Nation was the dominant gang in the Ebbets Field Houses in the Flatbush area of Brooklyn and took threatening and violent actions to deter residents of those projects from associating with rival gangs. On August 9, 2008, Anthony Thomas was exercising in a neighborhood playground when the defendant Geraldo Elainor, believing Thomas was a rival gang member, approached and began firing at him. Elainor chased Thomas as he ran away and continued shooting at him, hitting him once in the chest. Thomas eventually reached the parking lot of a nearby McDonalds, where he collapsed and died of his wound.
Elainor is one of nine defendants charged by the United States Attorney’s Office for the Eastern District of New York for crimes they committed as members of the Folk Nation. His co-defendant, Devon Rodney, was sentenced last month to 20 years’ imprisonment for his role in directing the gang’s violent activities.
The government’s case was prosecuted by Assistant United States Attorneys Berit Berger, Zainab Ahmad and Kristin Mace.
The Defendant:
Geraldo Elainor
Brooklyn, New York
Age: 24