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28 March 2014
Marietta Industrial Enterprises, Inc. Ordered to Pay $55,000 for Violating Clean Air ActRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO -- Marietta Industrial Enterprises, Inc. (MIE) has been ordered to pay a $37,500 fine and make a $12,500 community service payment to the Warren Township Fire Department for failing to report violations of the company’s permit in connection with its mineral processing operation.
Carter Stewart, U.S. Attorney for the Southern District of Ohio, Randall K. Ashe, Special Agent in Charge of the U.S. Environmental Protection Agency (U.S. EPA), Ohio Attorney General Mike DeWine, and Craig W. Butler, Director of the Ohio Environmental Protection Agency (Ohio EPA) announced the sentence imposed today by U.S. District Judge Algenon L. Marbley.
Company president William Scott Elliott was sentenced to serve 48 consecutive hours in jail followed by five months and 28 days of home confinement with electronic monitoring. He was ordered to pay a $5,000 fine. Elliott pleaded guilty to a misdemeanor charge of being an accessory after the fact for failing to notify Ohio Environmental Protection Agency of the violations.
In addition to the fine and community service, the company will perform 416 hours of community service (at least 208 of those hours must be performed by Elliott), serve three years of probation, conduct an environmental audit of their facilities and correct any deficiencies identified in that audit.
According to court documents, one of MIE’s manufacturing processes is crushing medium carbon ferromanganese alloy, referred to as medium carbon, in a mill line. Emissions from the mill lines are captured by equipment known as a baghouse using a large electric fan to ensure that air pollution from the facility is limited. According to court documents, company employees began turning off the fan when processing medium carbon sometime in 2006. In May 2009, Elliott learned that the baghouse fans were being turned off when medium carbon was crushed and put an end to the practice.
MIE’s permit calls for the company to disclose any instances that the baghouse has not operated properly in its quarterly and annual reports to Ohio EPA. Between 2006 and 2009, MIE never reported that the baghouse fans were turned off during the processing of medium carbon. From July 19, 2009 through August 10, 2010, Elliott, on behalf of MIE, submitted reports to Ohio EPA. None of the reports stated that the baghouse fans were turned off during the processing of medium carbon.
“Mr. Elliott and his company endangered Ohioans by allowing hazardous air pollutants to be emitted when they could have and should have been operating existing pollution control equipment,” Attorney General Mike DeWine said. “I will aggressively prosecute anyone who intentionally threatens Ohio families with this kind of irresponsible behavior.”
“This success is a result of the work of dedicated investigative experts at Ohio EPA’s Office of Special Investigations who work with our partners to prosecute these cases,” said Ohio EPA Director Craig W. Butler.
This case was jointly investigated by the Ohio Bureau of Criminal Investigation, Ohio EPA, and the U.S. EPA Criminal Investigation Division, all members of the Central Ohio Environmental Crimes Task Force. Special Assistant U.S. Attorney Brad Beeson and Assistant U.S. Attorney J. Michael Marous prosecuted the case.
Man Pleads Guilty in Juno Beach Endangered Sea Turtle Egg Taking CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and William H. Calvert, Supervisory Law Enforcement Officer, United States Fish & Wildlife Service, West Palm Beach, announce that Kenneth Cornelius Coleman, 52, of Riviera Beach, entered a guilty plea today before U.S. District Judge William Zloch to one count of unlawfully transporting endangered sea turtle eggs in violation of the Lacey Act, 16 U.S.C. §3372. Sea turtle eggs are protected under the Endangered Species Act, 16 U.S.C. §1538. At sentencing, Coleman faces up to five years in federal prison, a $250,000 fine and up to three years of supervised release.
According to the Information and other court documents, on July 3, 2013, Loggerhead Marine Life Center beach/sea turtle surveyors discovered disturbed sea turtle nests in the area of the beach crossover at 840 Ocean Drive in Juno Beach. Nearby, a trail of six sea turtle eggs were found in the sand. Probing marks were visible in the disturbed nests.
Juno Beach Police officers responded. At the beach crossover near 840 Ocean Drive, officers found a wooden stick that appeared to have been used to probe the turtle nests, as well as three canvas bags. A blue bag with the name Celtic Tours was discovered and found to contain 213 sea turtle eggs. DNA analysis of this bag concluded that the DNA profile previously obtained from Kenneth C. Coleman matched the DNA on the bag.
Experts at the Loggerhead Marine Life Center, including biologist and sea turtle expert Kelly Martin, found that one of the nests disturbed on July 3, 2013 was a Green Sea Turtle nest (endangered species), and the other three were Loggerhead Sea Turtle nests (threatened species), both species are protected under Federal Law. The total of 219 sea turtle eggs were reburied in an attempt to allow them to continue to mature and to hatch.
On July 4, 2013, four more sea turtle nests were found to have been disturbed and to be missing turtle eggs: three Loggerhead Sea Turtle nests and one Green Sea Turtle nest. These were in the area of the beach crossover near 70 Celestial Way in Juno Beach, not far from the disturbed nests from the day before. Also near that location, Juno Beach police officers discovered a backpack which contained 97 sea turtle eggs. These eggs were reburied as well. Coleman was later contacted on the beach near where these nests were disturbed. Officers detained him on suspicion of sea turtle egg poaching at which point Coleman spontaneously stated, “I don’t know nothing about no turtle eggs.”
Biologist Kelly Martin examined the eggs and confirmed that the 219 eggs found on July 13, 2013 and the 97 eggs found on July 4, 2013 were in fact sea turtle eggs. Because sea turtle eggs are illegal contraband, it is very difficult to establish a precise market value for the eggs. However, based upon research done by the Fish and Wildlife Service, the retail black market value of the sea turtle eggs in this area is estimated to be approximately $3.00 per egg, and in some cases as much as $5.00 per egg. For the 316 sea turtle eggs found in this case, the total value is estimated to be between $948 and $1,580. This value is therefore more than $350.00.
Coleman was previously charged and pled guilty to violating the Lacey Act by transporting endangered sea turtle eggs in 2010 in Case No. 10-80124-CR-Ryskamp. He was sentenced to 30 months in prison in that case.
U.S. Attorney Ferrer commended the U.S. Fish & Wildlife Service, the Juno Beach Police Department and the Florida Fish & Wildlife Conservation Commission for their work in the case. This case is being prosecuted by Assistant U.S. Attorney Lauren Jorgensen.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Life in Federal Prison for Midland Aryan Circle Member for Distributing Methamphetamine and Retaliating Against A WitnessRead the Press Release
In Midland this afternoon, 26-year-old Aryan Circle member Kevin Dwain Rickman (a.k.a. “Birdie”) of Midland, was sentenced to life in federal prison for distributing methamphetamine and retaliating against a witness announced United States Attorney Robert Pitman and FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.
On September 23, 2013, Rickman pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine and one count of retaliating against a witness or victim. By pleading guilty, Rickman admitted that between June 2005 and June 2013, he and others conspired to distribute ounce quantities of methamphetamine in the Permian Basin area. Rickman also admitted that on May 5, 2013, he knowingly caused bodily injury to an individual for providing information to law enforcement.
“Today’s sentencing of Mr. Rickman, a documented Aryan Circle member, serves as a strong message to the community of Midland and Odessa that the FBI is committed to pursue individuals who have violated the law and hold them accountable for their illegal actions. This sentencing concludes an 18-month investigation by the FBI, Odessa Police Department, Midland County and the Ector County Sheriff’s Department and furthers the partnership between law enforcement agencies in combating violent criminal offenders,” stated FBI SAC Lindquist.
Lawrence Physician, AuthorConvicted on Tax Evasion ChargesRead the Press Release
KANSAS CITY, KAN. –A federal jury today convicted a Lawrence physician and author of tax evasion, U.S. Attorney Barry Grissom said.
Mary C. Vernon, 61, Lawrence, Kan., was convicted on five counts of tax evasion. Vernon, who practiced in Lawrence and Shawnee, specialized in treating obesity. She authored a book with the late Dr. Robert Atkins titled, “Atkins Diabetes Revolution.” She also provided medical services and served as medical director for a number of nursing homes.
During trial, prosecutors presented evidence that she earned approximately $588,686 for services she provided in 2003 and 2004 to Atkins Nutritionals, Inc., a company that sold weight loss programs and products. From 2005 to 2008 she earned an additional $190,000 to promote Dr. Atkins’ nutritional theories.
From 1999 to 2007, the Internal Revenue Service attempted to collect taxes, interest and penalties that Vernon owed and failed to pay from 1991 through 2005. The IRS collected approximately $2 million in taxes, interest and penalties through levies and seizures.
In 2003, Vernon hired an attorney to create a corporation called Rockledge Medical Services. During trial, prosecutors presented evidence that Rockledge Medical Services was a sham corporation that Vernon used to avoid paying taxes.
She evaded paying incomes taxes for 2004, 2005, 2006, 2007 and 2008.
Sentencing will be set for a later date. She faces a maximum penalty of five years in federal prison and a fine up to $250,000 on each count.
Grissom commended the Internal Revenue Service, Matthew J. Kluge, Trial Attorney with the U.S. Department of Justice, Tax Division, and Assistant U.S. Attorney Chris Oakley for their work on the case.
Lakewood Man Indicted for Preparing False Tax ReturnsRead the Press Release
A Lakewood man who worked at a tax-preparation business was charged with conspiring to file false income tax returns, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Kathy Enstrom, Special Agent in Charge of the Cincinnati Field Office of Internal Revenue Service – Criminal Investigations.
Godrich Machuta, 34, was charged in a 39-count indictment with conspiracy to defraud the United States, making false claims, wire fraud and other charges. He is accused of preparing or assisting in the preparation of false tax returns in which false claims of more than $158,000 were made, according to the indictment.
Machuta worked for Cleveland-based Paglory Tax Services in 2010 and 2011. During that time, he and Mwale Kakusa conspired to fraudulently obtain funds from the United States by filing income tax returns with false, fictitious or fraudulent claims, according to the information.
Kakusa has pleaded guilty to preparing more than a dozen tax returns that made false refund claims of approximately $52,468. He awaits sentencing.
This case is being prosecuted by Assistant United States Attorney Justin J. Roberts following an investigation by IRS-CI.
An indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilty beyond a reasonable doubt.
Katy Man Charged with Multiple Crimes Including Possession of Explosive MaterialsRead the Press Release
HOUSTON – Robert James Talbot Jr., 38, has been arrested and charged by criminal complaint alleging attempted interference with commerce by robbery, solicitation to commit a crime of violence and possession of an explosive material, specifically Composition 4 (C4), announced United States Attorney Kenneth Magidson along with Special Agent in Charge Stephen L. Morris of the FBI.
Talbot, formerly of Batavia, N.Y., and now a resident of Katy, was arrested yesterday following an eight-month undercover investigation by the FBI Joint Terrorism Task Force (JTTF). He is expected to make an initial appearance before U.S. Magistrate Judge Frances Stacy today at 10:00 a.m. or 2:00 p.m., at which time the U.S. expects to request his detention pending further criminal proceedings.
According to the complaint, filed late yesterday, Talbot espoused his desire to recruit five to six other like-minded individuals to blow up government buildings, rob banks and kill law enforcement officers. Talbot allegedly created a Facebook page titled “American Insurgent Movement” (AIM). The complaint alleges he described that page as:
“a Pre-Constitutionalist Community that offers those who seek True patriotism and are looking for absolute Freedom by doing the Will of God. Who want to restore America Pre-Constitutionally and look forward to stopping the Regime with action by bloodshed.”
The criminal complaint further alleges Talbot made several postings on the page between Jan. 30, 2014, and Feb. 9, 2014, seeking people interested in “walking away from your life…to stop the regime.”
On March 15, 2014, Talbot allegedly posted again to the page:
“In a few weeks me and my team are goin active for Operation Liberty…I will not be able to post no more. We will be the revolution, things will happen nation wide or in the states. They will call us many names and spin things around on media. Just remember we fight to stop Marxism, liberalism, Central banking Cartels and the New World Order. I will try to find someone to take over this community page, but most of the guys who are admins are part of my unit. I will have a website up in 2 months…The funding is unlimited since the banking cartel will be forced to fund our movements.”
The complaint alleges that on March 20, 2014, Talbot conducted surveillance of multiple financial institutions in the Northwest Houston area, monitoring the movements of people entering and exiting the banks. Talbot also allegedly followed an armored car, watching how personnel exited the vehicle and whether the carrier was picking up or dropping off bags.
On March 22, 2014, Talbot sent $500 as a down payment for the explosive devices he had requested, according to the complaint.
Two days later, Talbot allegedly claimed to have quit his job and was preparing for an upcoming armored car robbery. On March 27, 2014, Talbot and others met at a storage facility in Houston with the intent to conduct an armor car robbery that morning, according to allegations. Talbot allegedly provided detailed maps of the target financial institution as well as escape routes in order to quickly evade law enforcement. The complaint further alleges he placed two explosive devices made of C4 into his black backpack and allegedly stated he would place the explosive device on the vehicle. He further instructed the group how to block the armor car with their vehicle to prevent it from leaving the location and provided a “manifesto” which was read to the group. “We must rebel. There is no other option no. Blood and bullets are the only two things that will change this world, short of divine action.”
While en route to conduct the armored car robbery, Talbot was arrested and taken into custody by the FBI Houston Division Special Weapons and Tactics team.
If convicted, he faces up to a maximum penalty of 20 years imprisonment and a possible $250,000 fine for the attempted robbery as well as another 10 years imprisonment and $100,000 fine for each of the remaining charges.
This case was investigated by the FBI’s JTTF, which includes personnel from the FBI, U.S. Coast Guard Investigative Service, U.S. Department of State, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Secret Service, Houston and Houston Metro Police Departments and the Harris County Sheriff's Office. Assistant United States Attorneys Carolyn Ferko and Jim McAlister are prosecuting.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Justice Department Opens Criminal Investigation into Officer-Involved Shooting in Albuquerque, New MexicoRead the Press Release
The Justice Department has opened a criminal investigation into the March 16, 2014 Albuquerque Police Department officer-involved shooting resulting in the death of James M. Boyd in Albuquerque, N.M. The independent investigation will be conducted by the Department of Justice’s Criminal Section of the Civil Rights Division, the United States Attorney’s Office for the District of New Mexico, and the Federal Bureau of Investigation. Experienced federal prosecutors will determine whether the evidence generated by the investigation reveals a prosecutable violation of any of the limited federal criminal civil rights statutes within the Justice Department’s jurisdiction, and whether federal prosecution is appropriate.
Jose Alvarado, Aka Chewee, Sentenced in Federal Court to 20 Years in Federal Prison for Engaging in A Drug Trafficking Conspiracy in Binghamton, New YorkRead the Press Release
The Plea And Sentencing Of Jose Alvarado Resulted From An Investigation Into Drug Trafficking Activities of the Almighty Latin King and Queen Nation (ALKQN) Gang Members And Their Associates in the Binghamton, New York area.
BINGHAMTON, NEW YORK - United States Attorney Richard S. Hartunian announced that Jose Alvarado, aka Chewee, 25 years old from Binghamton, New York, was sentenced today in federal court in Binghamton, New York to 20 years in federal prison and to be followed by 10 years of post-release supervision.
The investigation leading to today’s sentencing of Jose Alvarado was conducted by members of a task force comprised of the U.S. Attorney’s Office, Binghamton, New York; FBI Albany Field Office; Broome County District Attorney’s Office; Binghamton Police Department; New York State Police; Broome County Sheriff’s Office; Johnson City Police Department; Endicott Police Department; and the U.S. Marshal’s Service.
Following an extensive investigation by the task force, Jose Alvarado and several others were indicted by a federal grand jury. On October 3, 2013, Alvarado pled guilty to Count 1 of single-count Indictment 12-CR-445. Count 1 charges from about May of 2011 through September of 2012, in Broome County, in the Northern District of New York and elsewhere, defendants Luis Masso-Diaz, aka Wewe; Jose Alvarado, aka Chewee; Reynaldo Bones, aka Javy; Victor Texidor, aka Machito; Jose Alicea, aka Papo; and others conspired to knowingly and intentionally possess with intent to distribute and to distribute one or more controlled substances, in violation of Title 21, United States Code, Sections 841(a)(1) and 846. That violation involved 280 grams or more of a mixture or substance containing cocaine base, in violation of Title 21, United States Code, Section 841(b)(1)(A); 500 grams or more of a mixture or substance containing a detectable amount of cocaine, in violation of Title 21, United States Code, Section 841(b)(1)(B); 100 grams or more of a mixture or substance containing a detectable amount of heroin, in violation of Title 21, United States Code, Section 841(b)(1)(B); oxycontin, percocet, and morphine, in violation of Title 21, United States Code, Section 841(b)(1)(C); and vicodin, in violation of Title 21, United States Code, Section 841(b)(1)(E).
Reynaldo Bones, aka Javy, 28 years old from Binghamton, New York, was previously also sentenced in federal court to 135 months in federal prison and 5 years of post-release supervision. The remaining defendants are awaiting sentencing and remain in custody with the U.S. Marshal’s Service.
Joint Statement by Attorney General Eric Holder and Director of National Intelligence <br /> James Clapper on the Declassification of Renewal of Collection <br /> Under Section 215 of the Usa Patriot Act (50 U.S.C. Sec. 1861))Read the Press Release
Attorney General Eric Holder and Director of National Intelligence James Clapper released the following joint statement Friday:
“Earlier this year in a speech at the Department of Justice, President Obama announced a transition that would end the Section 215 bulk telephony metadata program as it existed, and that the government would establish a mechanism that preserves the capabilities we need without the government holding this bulk data. As a first step in that transition, the President directed the Attorney General to work with the Foreign Intelligence Surveillance Court (FISC) to ensure that, absent a true emergency, the telephony metadata can only be queried after a judicial finding that there is a reasonable, articulable suspicion that the selection term is associated with an approved international terrorist organization. The President also directed that the query results must be limited to metadata within two hops of the selection term instead of three. These two changes were put into effect on Feb. 5, 2014, when the FISC granted the government’s motion to amend its Jan. 3, 2014, primary order approving the production of telephony metadata collection under Section 215. Following a review for declassification the Jan. 3 primary order, the government’s motion to amend that order, and the order granting the motion were posted to the FISC’s website, as well as the Office of the Director of National Intelligence website and icontherecord.tumblr.com.
“In addition to directing those immediate changes to the program, the President also directed the Intelligence Community and the Attorney General to develop options for a new approach to match the capabilities and fill gaps that the Section 215 program was designed to address without the government holding this metadata. He instructed us to report back to him with options for alternative approaches before the program came up for reauthorization on March 28. Consistent with the President’s direction, we provided him with alternative approaches for consideration.
“After carefully considering the available options, the President announced yesterday that the best path forward is that the government should not collect or hold this data in bulk, and that it should remain at the telephone companies with a legal mechanism in place that would allow the government to obtain data pursuant to individual orders from the FISC approving the use of specific numbers for such queries. The President also noted that legislation would be required to implement this option.
“Given that this legislation is not yet in place, and given the importance of maintaining this capability, the President directed the Department of Justice to seek a 90-day reauthorization of the existing program, which includes the modifications that he directed in January. Consistent with both the President’s direction, and with prior declassification decisions, in light of the significant and continuing public interest in the telephony metadata collection program, DNI Clapper declassified the fact that the United States filed an application with the FISC to reauthorize the existing program as previously modified for 90 days, and that today the FISC issued an order approving the government’s application. The order issued today expires on June 20, 2014. The Administration is undertaking a declassification review of this most recent court order. When the review is complete the ODNI will post the documents to its website and icontherecord.tumblr.com.”Jersey City Man Pleads Guilty to Armed Robbery of Jewelry StoreRead the Press Release
TRENTON, N.J. – A Jersey City man admitted today to committing an armed robbery of a jewelry store in Hudson County, N.J., U.S. Attorney Paul J. Fishman announced.
Mouhamadou Lamine Amar, 20, pleaded guilty before U.S. District Judge Mary L. Cooper in Trenton federal court to an indictment charging him with committing a Hobbs Act robbery and with brandishing a firearm during the robbery.
According to documents filed in this case and statements made in court:
On June 28, 2013, Amar entered a jewelry store in Jersey City and held a gun to a store employee’s head. He grabbed and pushed the employee when the employee tried to flee. He tied up the employee and threatened to shoot the employee if the employee tried to escape. Amar was arrested inside the store while still in possession of the firearm.
The Hobbs Act robbery count to which Amar pleaded guilty carries a maximum potential penalty of 20 years in prison. The count of brandishing a firearm during a violent crime carries a maximum penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutively to any other prison term. Each count also carries a maximum $250,000 fine or twice the gross gain or loss arising out of the offense. Sentencing is scheduled for July 10, 2014.
U.S. Attorney Fishman credited special agents, detectives and investigators assigned to the Joint Terrorism Task Force (JTTF), under the direction of FBI Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s guilty plea. The JTTF comprises law enforcement officers from numerous federal, state and local agencies throughout New Jersey. U.S. Attorney Fishman also thanked the Jersey City Police Department and the Hudson County Prosecutor’s Office for their work on this case.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Jeffrey B. Steinfeld Esq., Newark
Amar, Mouhamadou Lamine Indictment
Jeremy Smith Pleads Not Guilty to Failing to Register as Sex OffenderRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Jeremy Smith, 36, who until recently had lived in Troy, New York, pleaded not guilty today in United States District Court in Burlington to a charge that travelled in interstate commerce without updating his registration under the Sex Offender Registration and Notification Act. U.S. Magistrate Judge John M. Conroy ordered that Smith be detained pending trial, which has not been scheduled.
On February 12, 2014, a federal grand jury in Rutland returned an indictment charging Smith with violating the federal Sex Offender Registration and Notification Act. Smith was arrested by U.S. Marshals in South Carolina on February 21 and has been in custody since then. According to the indictment and court records, Smith was convicted in Bennington, Vermont in 1999 of sexual assault on a minor. That conviction requires him to register as a sex offender with officials of any state where he resides or to which he moves. In early 2011, after being released from prison in Vermont, Smith moved to New York. However, he did not register as a sex offender with New York officials. Under federal law, when a sex offender moves from one state to another, he has three days to update his registration.
The United States Attorney emphasizes that the charge against Smith is merely an accusation and that the defendant is presumed innocent unless and until he is proven guilty.
If convicted, Smith faces up to ten years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
This case was investigated by the U.S. Marshals Service.
Smith is represented by Assistant Federal Defender David McColgin. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Information: Federal Court Initial AppearancesRead the Press Release
The United States Attorney's Office today announced that the following individuals have been arrested, charged, and made initial appearances on criminal complaints in "Operation Pale Mule." If convicted of the most serious charges in the complaints, each defendant faces possible penalties of life imprisonment, five years supervised release and $10,000,000 in fines. The investigation is a cooperative effort between the Federal Bureau of Investigation, Montana Division of Criminal Investigation, and the Eastern Montana High Intensity Drug Task Force. The prosecution is part of Project Safe Bakken, a cooperative effort between federal and state prosecutors and federal, state, local, and tribal law enforcement agencies in Montana and North Dakota.
- Casey Patrick Fleming
- Age: 41
- Hometown: Taft, California
- Charge: Conspiracy to Possess Methamphetamine with Intent to Distribute (21 U.S.C. � 846 & 841)
- Desiree Margarita Jimenez
Age: 30
o Hometown: Taft, California
o Charge: Conspiracy to Possess Methamphetamine with Intent to Distribute (21 U.S.C. � 846 & 841)
- Mario Albert Villegas
o Age: 31
o Hometown: Los Angeles, California
o Charge: Conspiracy to Possess Methamphetamine with Intent to Distribute (21 U.S.C. � 846 & 841)
- David Delcarmen
o Age: 32
o Hometown: Los Angeles, California
o Charge: Conspiracy to Possess Methamphetamine with Intent to Distribute (21 U.S.C. � 846 & 841)
- Gerardo Lopez Martinez
o Age: 35
o Hometown: Los Angeles, California
o Charge: Conspiracy to Possess Methamphetamine with Intent to Distribute (21 U.S.C. � 846 & 841)
- Kathrine Sue Neel a/k/a Catherine Sue Neel
o Age: 49
o Hometown: Taft, California
o Charge: Conspiracy to Possess Methamphetamine with Intent to Distribute (21 U.S.C. � 846 & 841)
- Cody William Simpson
o Age: 25
o Hometown: Taft, California
o Charge: Conspiracy to Possess Methamphetamine with Intent to Distribute (21 U.S.C. � 846 & 841)
- David Lee Barnard, Jr.
o Age: 43
o Hometown: Billings, Montana
o Charge: Conspiracy to Possess Methamphetamine with Intent to Distribute (21 U.S.C. � 846 & 841)
- David Lee Goffena
o Age: 45
o Hometown: Roundup, Montana
o Charge: Conspiracy to Possess Methamphetamine with Intent to Distribute (21 U.S.C. � 846 & 841)
- Kirsta Elaine Goffena
o Age: 38
o Hometown: Roundup, Montana
o Charge: Conspiracy to Possess Methamphetamine with Intent to Distribute (21 U.S.C. � 846 & 841)
- Brandon Scott Robey
o Age: 38
o Hometown: Billings, Montana
o Charge: Conspiracy to Possess Methamphetamine with Intent to Distribute (21 U.S.C. � 846 & 841)
A criminal complaint is merely a written statement of the essential facts constituting the offense(s) charged. It is not proof of guilt and all persons charged are presumed to be innocent of any crime until proof of guilt is established by trial or guilty plea.
The U.S. Attorney's Office is currently transitioning its media program to new media contacts. Resources and this transition may affect the amount of information the office can process and disclose in a timely manner.
Therefore, if any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html.
To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Indictment Charges Two Men with the Arson Death of Branford Woman in 2006Read the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, Chief State’s Attorney Kevin T. Kane, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Branford Police Chief Kevin Halloran today announced that a federal grand jury in New Haven hasreturned an indictment charging JOHN VAILETTE, also known as “John John” and “Snagglepuss,” 42, and STEVEN MARTONE, also known as “Crash,” 45, with committing an arson in Branford in 2006 that caused the death Kathy Hardy.
The indictment was returned on March 26. MARTONE was arrested this morning at his home in North Branford. He appeared before U.S. Magistrate Judge Donna F. Martinez in Hartford and is detained pending a hearing that is scheduled for April 2. VAILETTE is currently incarcerated in federal prison.
As alleged in the indictment, at approximately 8:45 a.m. on the morning of March 7, 2006, the Branford Emergency Communications Center received 911 calls reporting a fire at 27 Little Bay Lane in Branford, a single-family home rented by Kathy Hardy. After members of the Branford Fire Department arrived at the scene and extinguished the fire, firefighters located the body of Kathy Hardy, 39, on the second floor of the residence. Fire Department investigators ultimately determined that the fire was initiated by accelerants located in the first floor living room area and on the staircase leading to the second floor of the dwelling. An autopsy performed on Kathy Hardy concluded that the cause of death was smoke inhalation, and her death was classified as a homicide.
The indictment alleges that approximately two days after the fire, investigators located a truck regularly used by VAILETTE, which had been hidden in New Haven for a period of time in the aftermath of the fire. The truck, which was found at the home of another close associate of VAILETTE’s, contained a silver serving platter and jewelry that belonged to Kathy Hardy. The indictment also alleges that, after the fire, both VAILETTE and MARTONE made incriminating statements to other individuals.
“These two defendants are charged with setting the fire that killed Kathy Hardy, a mother of three, in 2006,” stated U.S. Attorney Daly. “This lengthy, complex and ongoing investigation is being conducted with great care and professionalism by dedicated members of the FBI and Branford Police Department, with the assistance of state and local fire investigators. I want to thank them and our state partners from the Chief State’s Attorney’s Office for their diligence and excellent work in this ongoing investigation. Together, we seek justice for Ms. Hardy, her family and loved ones.”
“The action today is the result of extensive collaboration and cooperation by law enforcement agencies at the municipal, state and federal levels, and all of these agencies are to be commended for their commitment and dedication to resolving this tragic case,” stated Chief State’s Attorney Kane.
“This was a callous and horrific crime,” stated FBI Special Agent in Charge Ferrick. “That the dedicated investigators never relented in their pursuit of justice is a tribute to them and their respective agencies. I’d like to thank the Branford Police and Fire Departments as well as the Connecticut State Police - Fire and Explosion Investigation Unit for their perseverance in securing an indictment and for their steadfast commitment to the rest of the judicial process.”
“The horrific death of Kathy Hardy and subsequent arduous investigation has been at the forefront of Branford Police Department for the past eight years,” stated Branford Police Chief Halloran. “The scope of this investigation would have been impossible without the support of the New Haven office of the FBI, U.S. Attorney’s Office, Connecticut Chief State’s Attorney’s Office, Branford Fire Department, and other local, state and federal agencies involved in the investigation.”
If convicted of the charge of committing an arson resulting in death, VAILETTE and MARTONE face up to a lifetime term of imprisonment, or death, should the government pursue the death penalty in this matter.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation, the Branford Police Department and the Office of the Chief State’s Attorney, with the assistance of the Connecticut State Police, Fire and Explosion Investigation Unit and the New Haven State’s Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney John H. Durham and Special Assistant U.S. Attorneys Michael A. Gailor and Kevin M. Shay.
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(203) 821-3722 [email protected]Illegal Alien Carrying Numerous Assault-Style Rifles in His Vehicle’s Trunk Is Sentenced to 40 Months in Federal PrisonRead the Press Release
DALLAS — Jesus Gonzales, 25, who pleaded guilty in May 2013 to a one-count indictment charging possession of a firearm by a prohibited person, was sentenced this morning by U.S. District Judge Barbara M. G. Lynn to 40 months in federal prison, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, on October 25, 2012, officers with the Dallas Police Department responded to a suspicious car call in the 2500 block of Wentworth Drive in Dallas. After locating the car and observing it commit traffic violations, officers pulled it over; Jesus Gonzales was the driver.
Gonzales gave officers consent to search the vehicle, and officers found 15 assault-style rifles individually wrapped in plastic in the car’s trunk. Gonzales did not have a driver’s license and admitted being in the U.S. illegally.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Dallas Police Department investigated. Assistant U.S. Attorney Taly Haffar prosecuted.
Husband and Wife Arrested for Operating Clinic to Defraud MedicareRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Miami residents Gladys Fuertes (40) and her husband Mario Fuertes (38) with conspiracy, healthcare fraud, aggravated identity theft, and obstructing a healthcare investigation. The Fuerteses were arrested on Wednesday morning in Miami. If convicted, each faces a maximum penalty of ten years in federal prison on each of the conspiracy and healthcare fraud counts and five years on each of the obstruction counts, as well as mandatory sentences of two years in prison for each of the aggravated identity theft counts. The indictment also notifies the couple that the United States is seeking a money judgment in the amount of $266,423.20, which is traceable to the proceeds of the alleged criminal conduct.
According to the indictment, Gladys and Mario Fuertes established and operated a sham clinic in Coral Gables, Florida, for the purpose of committing healthcare fraud. The clinic was called Gables Medical and Therapy Center. The Fuerteses allegedly employed unlicensed medical professionals and misused the Medicare billing numbers of other medical professionals, without their knowledge, in order to claim that they rendered medical treatment to Gables patients. Gladys and Mario Fuertes also paid a co-conspirator to recruit Medicare beneficiaries for Gables, and to drive patients to the clinic for basic and sham medical services.
Once recruited, Gladys and Mario Fuertes urged the Gables patients to enroll in Universal’s Medicare Part C and Part D plans. They believed Universal paid a relatively high percentage of its claims. Gladys and Mario Fuertes fraudulently billed Universal and caused Universal’s Medicare Part C plan to be billed for Gables patients’ supposed treatments. The treatments included expensive HIV-related treatments that patients never actually received. Gladys and Mario Fuertes also billed Universal and caused Universal to be billed for services that required a physician’s presence when no licensed physician was present or rendered the service.
The defendants and their co-conspirators paid the Medicare beneficiaries, who were recruited to come to Gables for their Medicare identification numbers, to allow Gables to bill Universal for services that were never rendered. In addition, Gladys and Mario Fuertes facilitated the provision of fraudulent prescriptions for controlled substances, including Oxycodone, to Gables patients. In some cases, the signatures on the prescriptions were forged. The patients who received these Oxycodone prescriptions were assisted in filling them by a co-conspirator. The co-conspirator also purchased the pills from some of the patients and sold them on the street.
Once they learned of the federal healthcare fraud investigation into their actions, Gladys and Mario Fuertes instructed Gables patients to lie to law enforcement agents and otherwise obstruct a federal investigation into health care fraud at Gables. The Fuerteses also provided altered Medicare billing documentation to federal agents investigating their activities.
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 is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force. It will be prosecuted by Assistant United States Attorneys Mandy Riedel and Kelley Howard-Allen.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
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Houston Man Convicted of Hoax Bomb ThreatRead the Press Release
HOUSTON - Cody Matthew Tackett, 23, has entered a plea of guilty to a criminal information charging him with making a hoax bomb threat, announced United States Attorney Kenneth Magidson.
Tackett has admitted he willfully sent a false threatening communication through an instrument of interstate commerce to the University of St. Thomas - Houston, concerning an attempt to unlawfully damage real property by means of an explosive. Specifically, on November 20, 2013, he sent an email to school officials stating that there was a bomb on the campus.
U.S. District Judge Ewing Werlein Jr., who accepted the plea, has permitted Tackett to remain on bond pending sentencing, scheduled for June 20, 2014. At that time, he faces up to 10 years in federal prison and a possible $250,000 fine.
FBI investigated the case which is being prosecuted by Assistant United States Attorney Craig Feazel.Hogsett Announces Sentencing of Anderson Man on Federal Firearms ChargesRead the Press Release
Counselor had illegal arsenal of four dozen guns, more than ten thousand rounds of ammunition
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today that Dr. Bruce E. Jones, Ph.D., age 66, of Anderson, has been sentenced to 100 months (over eight years) by U.S. District Judge Tanya Walton Pratt for illegally possessing firearms and ammunition. The defendant is a previously licensed family and addiction counselor in Madison County.
“Thanks to the tireless efforts of prosecutors and our law enforcement partners, we have brought to justice a person whose total disregard for the rule of law was a danger to this community,” Hogsett said. “This case represents exactly what our Violent Crime Initiative is all about – collaborating across jurisdictions to make Central Indiana a safer place to live and work.”
FBI Special Agent in Charge Robert A. Jones said, “Felons are prohibited from possessing firearms and the FBI will vigorously pursue individuals that violate the law."
An investigation of Jones was launched by the Federal Bureau of Investigation in 2010, and search warrants were executed in May of that year. Investigators found evidence of federal firearms violations at three different properties owned by Jones. This included two locations in Madison County, as well as a cabin in rural Montana. The FBI was assisted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, as well as local law enforcement agencies.
All told, those search warrants revealed an illegal arsenal of four dozen firearms and 14,000 rounds of ammunition. Jones was not entitled to possess these weapons due to his 1984 conviction for dealing in a controlled substance. The defendant served three years in prison for that crime, but later became a practicing counselor with a doctorate degree.
This sentencing comes as part of the U.S. Attorney’s Violent Crime Initiative (VCI). Launched in March 2011, 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.
According to Assistant U.S. Attorney Bradley Shepard who prosecuted the case for the government, Jones also must forfeit 47 firearms, pay a $12,000 fine and will serve three years of supervised release after his sentence. Jones is also scheduled to go to trial in June on federal health care fraud charges.
Hillsdale Police Lieutenant & Officer Indicted on Federal Drug ChargesRead the Press Release
St. Louis, MO – LIEUTENANT PARRISH SWANSON and OFFICER RAYMOND STEPHENS are charged with conspiracy to distribute and attempted distribution of heroin.
According to the indictment, during March 2014, Swanson and Stephens agreed to assist an associate, a suspected drug dealer, rob or what is more commonly referred to as "rip off," a drug courier of an amount of heroin within the City of Hillsdale. The associate agreed to pay Swanson and Stephens cash for their assistance in this "rip off." On March 20, 2014, Stephens, while on duty as a Hillsdale police officer, approached the drug courier and robbed him of approximately four ounces of suspected heroin. He later met with the associate and gave him the heroin in exchange for $900 cash. Stephens then gave Swanson $200 of the $900 per their previous agreement.
Swanson, St. Louis, and Stevens, St. Charles, were each indicted by a federal grand jury Thursday on one felony count each of conspiracy to distribute heroin and attempt to distribute heroin. They were arrested by FBI agents this morning.
If convicted, each count of the indictment carries a maximum penalty of 20 years in prison and/or fines up to $1 million. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation and the St. Louis County Police Department. Assistant United States Attorneys Hal Goldsmith and John Bodenhausen are handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Georgia Man Indicted for Stealing Deceased Persons' Identities to gain $2.3 Million in State Tax RefundsRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Georgia man has been indicted by a federal grand jury for a scheme using the identity information of deceased persons to obtain more than $2.3 million in tax refunds from several states.
Sirhon Rivers, also known as “Ron,” 40, of Georgia, was charged in a 32-count indictment returned under seal by a federal grand jury in Jefferson City, Mo., on March 19, 2014. That indictment was unsealed and made public following the arrest and initial court appearance of Rivers in Atlanta, Ga., on Tuesday, March 25, 2014. He remains in federal custody pending a detention hearing in Atlanta.
The federal indictment alleges that Rivers unlawfully obtained $547,000 from the Missouri Department of Revenue by filing fraudulent tax returns. Rivers allegedly used the same scheme in others states to unlawfully acquire a total of $2,365,000 in fraudulent state tax refunds. The indictment alleges that Rivers participated in this conspiracy to commit wire fraud and aggravated identity theft from January 2008 to August 2012.
According to the indictment, Rivers obtained personal identification information – including names, Social Security numbers, and dates of birth – from deceased persons. He allegedly submitted state tax returns using that information, adding false and fraudulent information such as employment and wages earned. State tax returns were submitted electronically, the indictment says, with the refunds electronically transferred to bank accounts that Rivers opened at several financial institutions.
In addition to the wire fraud and identity theft conspiracy, Rivers is charged with 25 counts of wire fraud, five counts of aggravated identity theft and one count of conspiracy to commit money laundering. The indictment also contains a forfeiture allegation, which would require Rivers to forfeit to the government any property derived from the proceeds of the alleged offenses.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the FBI and the Missouri Department of Revenue Criminal Tax Investigations Bureau and the Missouri Department of Revenue Compliance and Investigation Bureau.Former President and Chief Executive Officer of Software Company Sentenced in Manhattan Federal Court to 63 Months in Prison for $6.3 Million Offering Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that SCOT ZARKIEWICZ, the co-founder and former President, Chief Executive Officer, Treasurer, and principal owner of SingleClick Systems Corp. (“SingleClick”), a Delaware-incorporated, New Jersey-based software company, was sentenced today in Manhattan federal court to 63 months in prison for perpetrating a scheme to defraud SingleClick investors. From mid-2009 through June 2013, ZARKIEWICZ solicited several investors to purchase millions of dollars of privately-held SingleClick stock based on fraudulent misrepresentations about the company’s operations and financial performance. As a result of his fraudulent scheme, ZARKIEWICZ collected, and maintained in SingleClick, approximately $6.3 million from 35 victims. ZARKIEWICZ pled guilty in November 2013 before U.S. District Judge Denise L. Cote., who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “With today’s sentence, Scot Zarkiewicz is being held to account for misleading investors and betraying their trust with his multimillion-dollar fraud scheme.”
According to the Information to which ZARKIEWICZ pled guilty, statements made in open court, and other court documents:
SingleClick is a privately-held software company that was engaged in the business of providing individuals and businesses with network software products that facilitate content access and network and systems management from any internet-connected device. From mid-2009 through June 2013, ZARKIEWICZ solicited investor contributions to, and caused investors to maintain their investments in, SingleClick based on fraudulent misrepresentations.
Specifically, during the relevant period, ZARKIEWICZ told SingleClick investors, in both oral and written communications, that SingleClick had several large corporate clients, millions of dollars in annual revenue, and millions of dollars in cash in bank and brokerage accounts, when, in truth and in fact, and as ZARKIEWICZ well knew, SingleClick conducted minimal business operations, collected significantly less than a million dollars in annual revenue, and did not have more than approximately $513,000 in cash on hand. ZARKIEWICZ made these misrepresentations to induce potential investors to purchase SingleClick shares, and to induce existing investors to purchase additional shares and/or refrain from requesting redemptions of their investments. ZARKIEWICZ made these misrepresentations by, among other means, distributing fabricated bank, brokerage, financial, and tax statements to investors.
In May and June 2013, investors learned that SingleClick had very little cash available and confronted ZARKIEWICZ. ZARKIEWICZ admitted to investors that he lied about SingleClick’s business performance, fabricated records, and misled investors about the number of investors in, and operation of, SingleClick. Notwithstanding representations made in preceding years by ZARKIEWICZ that SingleClick had millions of dollars in revenue – including representations that SingleClick had generated $48 million in revenue in 2012 – since mid-2009, SingleClick has actually been generating thousands of dollars in revenue, not millions, and SingleClick’s total aggregate bank account balances have not exceeded approximately $513,000. In August 2013, after admitting his fraudulent conduct, ZARKIEWICZ resigned as CEO of SingleClick.
ZARKIEWICZ, 41, of Toms River, New Jersey, was also sentenced to three years of supervised release, ordered to forfeit $5.5 million as well as any remaining proceeds in SingleClick bank accounts, and pay over $6.3 million in restitution.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation.
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. 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.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney David I. Miller is in charge of the prosecution. Assistant U.S. Attorney Paul Monteleoni is in charge of the asset forfeiture related to the prosecution.
Former Mutual Benefits Corporation Head Convicted for His Role in $1 Billion MBC SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (“FBI”), announce that defendant Joel Steinger, a/k/a “Joel Steiner,” (“Steinger”) pled guilty before U.S. District Judge Robert N. Scola, Jr. to conspiracy to commit mail and wire fraud, in violation of 18 U.S.C. §1349, as a result of his scheme to defraud investors in Mutual Benefits Corporation (“MBC”), which marketed viatical and life settlements.
Steinger is the final defendant to be convicted out of 13 charged as a result of the MBC scheme, which defrauded approximately 30,000 victims. As the de facto head of MBC, Steinger, along with conspirators Steven Steiner, a/k/a Steven Steinger, Michael McNerney, and Anthony M. Livoti, Jr., Esq., along with others, raised more than $1.25 billion from investors before being shut down by federal regulators in May 2004. By the time charges were filed in December, 2009, investor losses were estimated to amount to more than $800 million. Steinger is scheduled to be sentenced by U.S. District Judge Robert N. Scola, Jr. on June 6, 2014.
According to the evidence presented in a related trial and summarized during Steinger’s guilty plea, from approximately 1994 to May 2004, MBC purchased life insurance policies from persons suffering from AIDS, the chronically ill, and elderly persons. Having purchased the life insurance policies, MBC sold fractionalized interests in insurance policy death benefits, known as “viatical settlements,” to approximately 30,000 investors. MBC solicited the investments through an international network of sales agents. In promotional materials, MBC told investors that its viatical settlements offered a fixed rate of return with low risk, and that investors’ principal and returns were paid by the insurance companies. Under Steinger’s direction, MBC misrepresented various important facts relating to its viatical settlements, including, for example, the estimated life expectancies of the insured persons, the supposedly independent role of doctors determining those life expectancies, MBC’s fraudulent methods used to acquire life insurance policies, the risks associated with certain policies, the payment of premiums, and the source of funds used to pay investors.
Steinger, already a convicted felon at the time of the MBC fraud, hid behind a figurehead company president to conceal a criminal and disciplinary history that otherwise would have prevented the company from obtaining a license to conduct business in Florida and elsewhere.
Evidence supporting his guilty plea also established that new investor money was used to pay premiums on life insurance policies purchased by earlier investors and to pay investors who requested their money back. In essence, the evidence demonstrated that Steinger and his co-conspirators were operating a Ponzi-like scheme, using new investor money to pay for earlier investor obligations, and that money from new investors was continuously required to prevent the MBC Ponzi-scheme from collapsing, which, ultimately, it did.
Co-defendant Steiner was also a founding principal of MBC, was actively involved in MBC’s marketing and promotional activities, and encouraged investors to buy MBC’s investments. On September 3, 2013, Steiner pled guilty to charges in the same case. Steiner was also found guilty by a federal jury in a related case, United States v. Steven Steiner, No. 11-20578-CR-Williams in connection with money laundering and obstruction of justice related to the use and concealment of more than $15 million dollars in proceeds derived from the MBC fraud. Steiner was sentenced to a total of 15 years in prison.
Co-defendant McNerney, an attorney licensed by the State of Florida, assisted MBC with the marketing of its fraudulent investment by meeting with investors in his Fort Lauderdale law offices and encouraging them to purchase MBC investments. McNerney pled guilty in this case and was sentenced to five years in prison for his criminal conduct.
Co-defendant Livoti, Jr. was convicted for his role in the MBC fraud on December 4, 2013 after a jury trial. Livoti’s sentencing is set for April 1, 2014 before U.S. District Judge Robert N. Scola, Jr.
United States Attorney Wifredo A. Ferrer stated, “I am pleased to announce the guilty plea of Joel Steinger, who led one of the largest investment schemes in South Florida’s history. For a decade, Steinger and his co-defendants victimized approximately 30,000 people and stole nearly one billion dollars. I commend the prosecutors and agents who have worked so hard on this important matter.”
“Joel Steinger used Mutual Benefits Corp to bilk hundreds of millions of dollars from trusting investors,” said FBI Special Agent in Charge George L. Piro. “Now, with Joel Steinger's guilty plea, the FBI is pleased that all 13 defendants charged in the MBC scheme have all been convicted.”
Steinger is the thirteenth defendant convicted as a result of the MBC fraud.
Mr. Ferrer commended the investigative efforts of the FBI and the Miami Regional Office of the Securities and Exchange Commission, which previously brought a civil action against MBC and its principals. The MBC case is being prosecuted by Assistant U.S. Attorney Karen Rochlin.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Miami-Dade Department of Public Works Employee Is Sentenced to 30 Months in Prison for Accepting Bribes from ContractorRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that George Brown, 50, of Hollywood, was sentenced to 30 months in prison, one year of supervised release, and ordered to forfeit $13,000. Brown previously pled guilty in January 2014 to a one-count information charging him with accepting bribes in connection with programs receiving federal funds, in violation of Title 18, United States Code, Sections 666. The defendant was given until May 13, 2014 to surrender to the United States Bureau of Prisons.
According to documents filed in Court, Brown was the Roadway Lighting Coordinator for the Department of Public Works (Public Works) in Miami-Dade County. In this capacity, Brown was responsible for, among other things, overseeing the installation and/or maintenance of more than 24,000 street lights in the county’s roadway system. In 2011, a lighting contractor offered to provide Brown with “rewards” in exchange for Public Works’ purchase of the contractor’s lighting products. Brown agreed and subsequently accepted more than $13,000 in bribes from the contractor in 2011 and 2012. The bribes included appliances, computer equipment, and other merchandise, all paid for by the contractor. Among the merchandise that Brown received from the contractor was a 2.5 ton air conditioning unit, a Samsung stainless steel refrigerator, and a KitchenAid built-in single electric convection oven. The merchandise was either shipped directly to Brown’s home address or picked up by Brown at the contractor’s business in Miami.
During the investigation, the contractor began to cooperate with law enforcement and recorded the conversations with Brown. In one recorded conversation, Brown assured the contractor that no one else knew about their arrangement. In another recorded conversation, the two discussed delivery to Brown of certain merchandise costing approximately $2,600 in exchange for Brown’s assistance on a Public Works’ project on 27th Avenue in Miami.
Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Denton County Insurance Agent Sentenced to 292 Months in Federal Prison and Ordered to Pay More Than $4 Million Restitution on Fraud ConvictionRead the Press Release
Defendant Used Elderly as Straw Buyers in Fraud Scheme
DALLAS - A former Denton County insurance agent, who was convicted at trial last summer on several felony offenses stemming from a scheme to defraud various life insurance companies, was sentenced today in federal court in Dallas.
U.S. District Judge Reed C. O’Connor sentenced Vincent Bazemore, 40, formerly of Aubrey, Texas, to serve a total of 292 months in federal prison and ordered him to pay $4,014,627 in restitution. A jury deliberated just one hour before convicting him in July 2013 on all counts of an indictment charging four counts of mail fraud. Today’s announcement was made by U.S. Attorney Sarah R. Saldana of the Northern District of Texas.
Between October 2007 and April 2009, Bazemore, an insurance agent, engaged in a scheme to obtain substantial commissions by inducing life insurance companies to issue policies on applications of individuals who appeared to be wealthy and seeking insurance for estate planning purposes, when in fact, the applicants were of modest financial means, and the policies were intended to be transferred to investors.
Bazemore solicited elderly individuals to apply for policies by representing that the life insurance was an investment with no financial cost or exposure and would result in a sizable monetary benefit to the individuals heirs. Bazemore prepared the applications and related documents, on behalf of the applicants that contained forged signatures and falsified financial information to induce the life insurance companies into issuing the policies.
Bazemore also submitted the false and fraudulent applications and related documents to financial institutions to obtain premium financing on the policies. In fact, the applicants were of modest financial means and the policies were obtained for the purpose of being transferred to investors. Bazemore had agreements with insurance companies and managing agents that provided he would receive, for each policy issued on an application he submitted, a commission of 95 to 105 percent of the first year’s premium paid on the policy.
Today's announcement is related to efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) that 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 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The FBI investigated the case. Assistant U.S. Attorney Christopher Stokes prosecuted.
Federal Court Sentences Wapello Man on Child Pornography ChargesRead the Press Release
DAVENPORT, IA - On March 28, 2014, Shannon Wade Watson, age 39, formerly of Wapello, Iowa, was sentenced by United States District Court Judge John A. Jarvey to 120 months imprisonment for possession of child pornography, announced United States Attorney Nicholas A. Klinefeldt. Watson was ordered to serve fifteen years of supervised release following the period of imprisonment, and to pay $100 towards the Crime Victims Fund. Watson will also be required to register as a sex offender.
In July of 2011, a Scott County Deputy and member of the Internet Crimes Against Children (ICAC) task force participated in an online investigation of the possession of child pornography. The deputy identified images of child pornography on a computer later identified as belonging to Shannon Wade Watson. On September 26, 2011, a search warrant was conducted at Watson’s Wapello residence, resulting in the seizure of the identified computer and related equipment. A forensic examination of a computer hard drive and two thumb drives identified over 300 images of child pornography. Watson pleaded guilty to possession of child pornography in November of 2013.
This case was investigated by the Scott County Sheriff’s Office, the Internet Crimes Against Children task force and the United States Secret Service Cyber-Crimes Unit. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Federal Court Sentences Former Davenport Man on Child Pornography ChargesRead the Press Release
DAVENPORT, IA - On March 28, 2014, Matthew Scott Hiles, age 29, formerly of Davenport, Iowa, was sentenced by United States District Court Judge John A. Jarvey to 70 months imprisonment for possession of child pornography, announced United States Attorney Nicholas A. Klinefeldt. Hiles was ordered to serve five years of supervised release following imprisonment, and to pay $100 towards the Crime Victims Fund. Hiles will also be required to register as a sex offender.
In April 2013, a Davenport, Iowa, police detective, and member of the Internet Crimes Against Children (ICAC) task force, conducted an online investigation and identified images of child pornography on a computer later identified to Hiles at his Davenport residence. As part of an April 26, 2013, search warrant this identified computer and computer equipment were seized from Hiles’s bedroom and determined by forensic examination to contain multiple child pornography images and videos. Hiles pleaded guilty to possession of child pornography in November of 2013.
This case was investigated by the Davenport, Iowa, Police Department, the Internet Crimes Against Children task force and the United States Secret Service Cyber-Crimes Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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FBI Ten Most Wanted Fugitive Juan Elias Garcia Now in CustodyRead the Press Release
Garcia Capture Release
Edgewater, Maryland Man Pleads Guilty to Defrauding SBA Disadvantaged Small Business Program and IRSRead the Press Release
Fraudulently Obtained Over $52 Million in Government Contracts, Concealed Income by Transferring Millions from Corporate Accounts to Casinos and to Pay Other Personal Expenses, and Filed False Tax Returns
Greenbelt, Maryland - Vernon J. Smith III, age 61, of Edgewater, Maryland, pleaded guilty today to conspiring to defraud the United States in connection with schemes to fraudulently seek federal contracts under a Small Business Administration program to assist socially and economically disadvantaged small businesses; and to defraud the IRS.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration Inspector General Peggy E. Gustafson; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and General Services Administration Inspector General Brian D. Miller.
“Today’s guilty plea sends a strong message to those who lie to obtain preferences for federal contract awards,” said Inspector General Peggy E. Gustafson of the Small Business Administration. “With our interagency partners, SBA OIG will continue to pursue those who defraud the government by lying to gain access to federal set-aside contracts. We would like to thank the U.S. Attorney's Office for its leadership and professionalism throughout this investigation.”
“Corruption of the nature uncovered throughout the course of this investigation destroys confidence in the Government's ability to act as a fair and effective steward of taxpayer dollars. This plea today, demonstrates the commitment of the Defense Criminal Investigative Service and its law enforcement partners to prosecute fraud to the fullest extent of the law,” said Robert E. Craig, Special Agent in Charge, Mid Atlantic Field Office, Defense Criminal Investigative Service.
“Conspiring to defraud the government in a decade long scheme and filing false tax returns is unlawful,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “Bringing individuals to justice, such as Vernon Smith, who intentionally engage in this type of activity in order to defraud the IRS, ranks high on the list of IRS- CI's enforcement priorities.”
“This complicated scheme boils down to lying and cheating to obtain government contracts,” said GSA Inspector General Brian D. Miller. “I appreciate the hard work of our special agents, law enforcement partners, and U.S. Attorney's Office.”
According to his plea agreement, Vernon Smith was an owner and officer of Capitol Contractors, which provided roofing and construction services, primarily to U.S. government agencies. On March 3, 1993, Capitol Contractors was certified to participate in the SBA’s Section 8(a) program, which provides assistance to socially and economically disadvantaged small businesses. The majority owner of Capitol Contractors was a Native American. A small business can only participate in the Section 8(a) program for nine years before it “graduates” from the program and is no longer eligible to obtain government contracts reserved for Section 8(a) program participants. Shortly before Capitol Contractors graduated from the program in March 2002, the majority owner sold his interest in the company to Vernon Smith, who became the company’s sole owner and managed the day-to-day operations of the company. Vernon Smith did not qualify as a socially and economically disadvantaged individual under the Section 8(a) Program.In August 1999, Vernon Smith arranged for Anthony Wright, an African-American who was a former roofer and project manager at Capitol Contractors, to form a new company to participate in the Section 8(a) program upon Capitol Contractors’ graduation from the program. On August 11, 1999, Wright incorporated Platinum One Contracting in Maryland. Wright was the president and 60% owner, and Smith’s son was vice president and owned the remaining 40% of the corporation. In reality, Vernon Smith exercised complete and undisclosed control over Platinum’s operations, including the day-to-day management and long term decision making for the company.
Vernon Smith admits that from August 1999 to June 2013, he conspired to defraud the SBA in several ways. For example, Smith directed Wright to submit an application to the SBA for certification in the Section 8(a) program which did not reveal that Vernon Smith: exercised control over the company; had previously supervised Wright; owned more than 10% of Capitol Contractors; and was related to an owner of Platinum. From May 2004 through April 2010, Vernon Smith also caused Platinum to submit annual updates to the SBA Section 8(a) program that contained false information, including that the company was controlled by a socially and economically disadvantaged individual, and that no non-disadvantaged member of Platinum’s management received compensation that exceeded that received by Wright. In fact, Vernon Smith controlled the company and Platinum’s payments to Vernon Smith and other corporate officers far exceeded payments received by Wright for 2004 through 2009. Based on the fraudulent application and annual updates, Platinum One received more than $52 million in contracts from the federal government under the Section 8(a) program, to which it was not entitled. The total loss to the government resulting from Vernon Smith’s illegal conduct, regarding the illicit profit he received by defrauding the SBA, and depriving a legitimate Section 8(a) contractor of such profit, is $6,194,828
In addition, Vernon Smith and a co-conspirator transferred millions of dollars from Platinum to bank accounts in their own names, to Capitol Contractors, to casinos on their own behalf; and to pay for personal expenses charged to Platinum One’s credit cards. These expenses included: extensive dental work, veterinary visits for pets, lavish vacations, and limousine transportation to casinos in Atlantic City, New Jersey, among others.
Vernon Smith admits that he signed false corporate and personal tax returns for 2005 and 2006. Smith knew that the cost of goods sold and payments to contractors reported on the corporate returns were false because almost all of that money was paid to, and for the benefit of, Smith at casinos. He also knew that the income reported on his personal income taxes omitted hundreds of thousands of dollars that Capitol Contractors had paid to, and for his benefit. As a result, Smith owed additional personal income tax to the IRS totaling $264,105, and Capitol Contractors owed an additional $574,911 to the IRS for tax years 2005 and 2006. The total tax loss resulting from the conspiracy to defraud the IRS is $839,016.
Vernon Smith faces a maximum sentence of five years in prison for the conspiracy. U.S. District Judge Paul W. Grimm has scheduled his sentencing for July 2, 2014, at 9:30 a.m.
Anthony Wright, age 42, of Bowie, Maryland, pleaded guilty on June 18, 2013, to his role in the scheme and is scheduled to be sentenced on June 23, 2014.
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 SBA Office of Inspector General; Defense Criminal Investigative Service; IRS Criminal Investigation; and the GSA Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Gregory R. Bockin and Trial Attorney Kenneth C. Vert of the U.S. Department of Justice Tax Division, who are prosecuting the case.
District Man Sentenced to 11 ½ Years in Prison for Robbery and Burglary at Northeast Washington Gas StationMasked Defendant, and Two Others, Forced Their Way into Attendants’ Booth, Assaulted Attendant, and Stole over $700Read the Press Release
WASHINGTON – Arel Jennings, 30, of Washington, D.C., was sentenced today to a total of 11 ½ years in prison on charges of robbery, burglary, wearing a hood or mask, and possession of cocaine, U.S. Attorney Ronald C. Machen Jr. announced.
Jennings and co-defendants Kevin Barnes and James Wright were found guilty by a jury in the Superior Court of the District of Columbia, following a trial in October of 2013. Jennings was sentenced by the Honorable Franklin L. Burgess, Jr. Upon completion of his prison term, Jennings will be placed on five years of supervised release.
At prior proceedings, Barnes, 27, and Wright, 24, were sentenced to prison terms of 54 and 42 months, respectively, for their roles in the case. Both are also from Washington, D.C.
According to the government’s evidence, on Jan. 24, 2013, during the 11 p.m. shift change at a gas station in the 1300 block of Florida Avenue NE, Jennings, Barnes, and Wright, all wearing masks, forced their way into the attendants’ booth. The two attendants working the night shift were both recent immigrants to the United States.
One of the three assailants assaulted one of the attendants, and the three stole over $700 from the booth and fled. Members of the Metropolitan Police Department’s Robbery Intervention Program were patrolling in the area, and apprehended all three defendants within a few blocks of the station. As he was being arrested, Jennings threw $185 onto the ground. A subsequent search revealed that Jennings had four plastic baggies of cocaine.
Jennings was subject to enhanced sentencing penalties, due to his multiple prior felony convictions in the District of Columbia.
In announcing the sentence, U.S. Attorney Machen recognized the outstanding efforts of the detectives and officers from the Metropolitan Police Department, and particularly of the Robbery Intervention Unit, whose quick actions following the robbery were critical to the case. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Chrisellen Kolb and Jean Sexton; Paralegal Specialist Todd McClelland; and Litigation Technology Specialist Leif Hickling, who provided assistance. Finally, he commended the work of Assistant U.S. Attorneys John Truong, who investigated and indicted the case, and James Ewing, who prosecuted the case at trial.
14-073Defendant who Fled During Trial for Drug Trafficking Sentenced to Seven Years in PrisonRead the Press Release
One of two King County residents who was convicted, in absentia, of Conspiracy to Distribute Ecstasy in 2009, was sentenced today in U.S. District Court in Seattle to seven years in prison, announced U.S. Attorney Jenny A. Durkan. HARDEEP SINGH, 23, formerly of Kent, Washington, failed to appear after the first day of trial. His co-defendant. Kaushal Kainth, 25, formerly of Renton, Washington, also failed to appear following the lunch break on the last day of trial. SINGH was arrested a year ago in Canada. At the time he was indicted, SINGH had legal status in the United States. He likely will be deported to his native India following his prison term. Kainth remains wanted by law enforcement. At sentencing today U.S. District Judge Richard A. Jones noted that the conspiracy was a “large scale operation involving large amounts of drugs that would have an impact on the lives of many in the community.”
According to testimony at trial and records filed in the case, Kainth and SINGH conspired to distribute large amounts of ecstasy. Over eight days in early May 2009, the men agreed to pay a third man to deliver large amounts of ecstasy and another drug, BZP, to co-conspirators at the Southcenter Mall in Tukwila, Washington and in San Jose, California. Kainth and SINGH did not know the man they offered to pay for the delivery was working with law enforcement. The man recorded both defendants on audio and video. In all Kainth and SINGH gave the person working with law enforcement some 285,000 pills worth more than $2.8 million. The pills were all seized by law enforcement.
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). The case was prosecuted by Assistant United States Attorney Brian Werner.
Defendant Pleads Guilty to Federal Offense of Sex Trafficking of A ChildRead the Press Release
Defendant Faces Imprisonment term of 10 years to Life
BINGHAMTON, NEW YORK - United States Attorney Richard S. Hartunian announced that Lynette Tilden, from Utica, New York, pleaded guilty today in federal court to an offense charging her with Sex Trafficking Of A Child.
In pleading guilty, Lynette Tilden admitted that in and about February of 2012, in the Broome, Oneida, and Onondaga counties in the Northern District of New York and elsewhere, defendant Tilden and others, aiding and abetting each other, while in and affecting interstate commerce, did knowingly recruit, entice, harbor, transport, provide, obtain, and maintain by any means a person with the initials M.L., who had not attained the age of 18 years, knowing, or in reckless disregard of the fact that M.L. would be caused to engage in one or more commercial sex acts, and did benefit, financially and by receiving things of value, from participation in the venture which has engaged in the act described above, in violation of Title 18, United States Code, §§ 1591(a) & (b) and 2.
Tilden further admitted that she and others, while aiding and abetting each other, knowingly recruited, enticed, harbored, transported, provided, obtained, and maintained a minor with the initials M.L., who was 16 years of age at the time, in order to prostitute M.L. to adult men in exchange for money and controlled substances. Tilden and the others photographed and caused M.L. to be photographed in sexually seductive poses wearing only lingerie and posted said photographs of M.L. on Backpage.com, an internet classified advertising website, offering M.L. for sex in exchange for money. Additionally, Tilden and the others utilized cellular telephones to send mass cellular texts offering M.L. for sex to customers in exchange for money. Furthermore, Tilden and the others transported and caused M.L. to be transported to various locations including hotels where M.L. was instructed and caused to engage in commercial sex acts, in that, M.L. engaged in sexual acts including intercourse and oral sex with customers in exchange for money and controlled substances. Tilden and the others benefitted, both financially and by receiving things of value, by prostituting M.L. to customers, in that, Tilden and the others shared the money and controlled substances acquired from customers with whom M.L. was caused to engage in sex acts.
The federal charge stems from an investigation conducted by the FBI-Albany Division, New York State Police, Oneida County District Attorney’s Office, Utica Police Department, and the Oneida County Child Advocacy Center. The investigation concerned a prostitution ring involved in selling a minor to engage in sexual conduct in exchange for money and drugs. The prostitution ring utilized the website Backpage.com to advertise the prostitution. The ring also utilized a texting network to advertise their prostitution business. The Oneida County District Attorney has charged several other defendants with state crimes in connection to this overall joint investigation. The investigation is continuing.
Tilden continues to be held in the custody of the U.S. Marshal’s Service pending sentencing. Tilden is scheduled to be sentenced on July 29, 2014. At sentencing, she faces a statutory mandatory minimum term of 10 years prison and a maximum of life. The maximum possible fine is $250,000.
Dallas Man Sentenced to Serve A Total of 300 Months in Federal Prison for Role in Conspiracies to Distribute Cocaine and MethamphetamineRead the Press Release
Defendant Also Convicted on Obstruction and Perjury Charges
DALLAS — A Dallas man who was arrested last summer as part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation and later convicted at trial, was sentenced this afternoon by U.S. District Judge Reed C. O’Connor to serve a total of 300 months (25 years) in federal prison, announced U.S. Attorney Sarah R. Saldana.
Reynaldo Macedo-Flores, 35, was convicted on all five counts of the indictment, including one count of conspiracy to possess with intent to distribute cocaine; one count of conspiracy to possess with intent to distribute methamphetamine, one count of obstruction of justice and two counts of perjury. The obstruction and perjury convictions stem from Macedo-Flores’s false testimony at the trial of his mother, Austreberta Macedo-Flores, in September 2013, also before Judge O’Connor. (Austreberta Macedo-Flores was convicted of conspiring to distribute methamphetamine; her sentencing hearing is set for April 10, 2014.)
The government presented evidence at trial that Reynaldo Macedo-Flores repeatedly sold narcotics to an undercover officer, bragged about taking the risk of distributing narcotics on a wiretap, and plotted to present false testimony – and then did so – at his mother’s trial.
The eight remaining defendants in the case have been convicted; four have been sentenced.
The case involved undercover purchases, wiretaps and search warrants, and was investigated by the FBI in conjunction with the Dallas Police Department. In total, over 15 kilograms of cocaine, four and one-half pounds of methamphetamine (ICE), five firearms, four luxury vehicles and $351,010 in cash – much of it, as trial testimony showed, packaged for shipment to Mexico – was seized in the operation.
Assistant U.S. Attorneys Jason Schall and John Kull prosecuted the case.
Clinic Manager Sentenced for Receiving Misbranded BotoxRead the Press Release
St. Louis, MO – THOMAS GREG MARTIN was sentenced to six months of home confinement, 120 hours of community service and three years of probation for receiving misbranded Botox® from a foreign, unlicensed drug wholesaler, some of which had counterfeit exterior packaging. Additionally, as part of his earlier plea, he agreed to the forfeiture of $32,000.
According to court documents, Martin operated Aestheticare LLC, a medical clinic which provided assorted cosmetic procedures to patients in St. Louis County, Missouri. In March 2010, Martin received a facsimile transmission from an unlicensed drug wholesaler that offered low prices for assorted prescription drugs, including “Botox (Turkish)” for $344.99 a vial. During this same time frame, the FDA-approved version of Botox® was sold through licensed drug wholesales at higher prices in the United States, typically $525 a vial. From March 2010 through September 2012, Martin made over fifty separate purchases of these drugs from the unlicensed drug wholesaler. Ultimately, Martin and others provided the illegal drugs to the clinic’s patients without informing them of the source of the drugs. The U.S. Food and Drug Administration has recently issued a public safety alert regarding misbranded Botox®, found on the agency’s website at: http://www.fda.gov/drugs/drugsafety/ucm349503.htm
"Foreign-made prescription drugs that do not meet FDA standards for safety and effectiveness place all consumers at risk," said Patrick J. Holland, Special Agent in Charge of FDA’s Office of Criminal Investigations, Kansas City Field Office, "FDA's Office of Criminal Investigations will continue to protect the public's health by guarding against these illegal drugs."
Martin, of St. Louis, pled guilty last December to one felony charge of receiving misbranded drugs. He appeared today for sentencing before United States District Judge Rodney Sippel.
This case was investigated by the U.S. Food and Drug Administration, Office of Criminal Investigations.
Cambridge Man Indicted on Child Pornography ChargesRead the Press Release
BOSTON – A Cambridge man was indicted yesterday on child pornography charges.
James E. Schultz, 61, was charged with possession of child pornography and two counts of distribution of child pornography. The indictment alleges that in March 2014, Schultz possessed child pornography and that on various dates in 2013, he distributed visual depictions of minors engaged in sexually explicit conduct.
If convicted, Schultz faces a mandatory minimum term of five years in prison on the charge of distribution of child pornography, a maximum of 20 years in prison on the charge of possession of child pornography, a mandatory minimum of five years and a maximum of a lifetime of supervised released, and a $250,000 fine on each count.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. Assistance was also provided by the Woburn Police Department. The case is being prosecuted by Eve A. Piemonte Stacey of Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys= Offices and the Criminal Division=s CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Buffalo Man Pleads Guilty to Gun ChargeRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that John Rickard, 48, of Buffalo, N.Y., pleaded guilty to possession of a firearm in furtherance of drug trafficking, before U.S. Magistrate Judge Leslie G. Foschio. The charge carries a mandatory minimum penalty of five years in prison, a maximum of life, and a $250,000 fine.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that on November 9, 2009, Buffalo Police officers executed a search warrant at the defendant’s residence, located at 254 Laird Avenue in Buffalo. During the search, officers located approximately 96 grams of cocaine, packaging material, approximately $58,307 in United States currency and three firearms. A Buffalo Police canine gave a positive alert for the presence of narcotics on the currency.
The plea is the culmination of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon, New York Field Division and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
A sentencing date has not been scheduled.Bridgeton, N.J. Jersey Tax Preparer Admits Personal Income Tax EvasionRead the Press Release
CAMDEN, N.J. - A Bridgeton, N.J., tax preparer today admitted he knowingly failed to report more than $300,000 diverted from his tax preparation service for his personal use, U.S. Attorney Paul J. Fishman announced.
William Jones, 67, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with one count of income tax evasion.
According to documents filed in this case and statements made in court: Jones admitted that he operated Your Financial Services and PLM Tax Services, both Bridgeton businesses that provided tax return preparation and payroll services for their clients. Your Financial Services provided refund anticipation loans backed by Refund Advantage, a company that processed income tax returns and provided refund anticipation loans for smaller tax offices.
From 2007 through 2010, Jones offered Your Financial Services’ clients refund anticipation loans processed by Refund Advantage for which Jones received fees and additional yearly incentives. Since Your Financial Services was a Schedule C business, Jones was required to report the income generated by Your Financial Services on his U.S. individual income tax return.
However, for the years 2007, 2008, 2009, and 2010, Jones only reported to the IRS Form W-2 wages, property tax information, and interest and dividend income, omitting all of the diverted payments from Refund Advantage made to Your Financial Services. He admitted that he deposited the business receipts into his personal bank account and used the money for personal expenditures.
From 2007 through 2010, Jones admitted that he diverted a total of $310,248 in gross receipts of Your Financial Services into his personal bank account. He would have owed the government $90,266 in taxes had he reported the additional gross receipts on his income tax returns.
The charge to which William Jones pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for July 1, 2014.
U.S. Attorney Fishman credited special agents of IRS-Criminal investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney's Office Criminal Division in Camden.14-108
Defense counsel: Christopher O’Malley Esq., Camden
Jones, William Information
Bridgeport Man Pleads Guilty to Role in Fraudulent Federal Tax Refund SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that CARLOS MATEO, 45, of Bridgeport, waived his right to indictment and pleaded guilty yesterday before U.S. Magistrate Judge Donna F. Martinez in Hartford to one count of theft of government property stemming from his role in a fraudulent federal tax refund scheme.
According to court documents and statements made in court, between November 2011 and February 2012, MATEO obtained fraudulent U.S. Treasury tax refund checks, ranging in amounts of approximately $4,000 to $8,150, which were addressed to different individuals with mailing addresses in Connecticut, New York, New Jersey and Florida. All of the Social Security Numbers used for the tax returns involved in the scheme belong to Puerto Rican citizens. MATEO provided the checks to Jeovany Rios, who cashed the checks at GE Credit Union branches in Bridgeport, Milford and Danbury with the assistance of Angel Castellano, a teller at the credit union. Rios then returned some of the cash to MATEO after taking a portion for himself and Castellano.
In total, MATEO provided Rios with 21 fraudulent tax refund checks totaling $137,860.70.
MATEO is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on June 20, 2014, at which time he faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.
Rios, 39, and Castellano, 26, both of Bridgeport, previously pleaded guilty and await sentencing.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Sarala V. Nagala.
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(203) 821-3722 [email protected]Bank Fraud Co-Conspirator Sentenced to Prison for Using Firearm to try to Collect DebtsRead the Press Release
A member of a bank fraud scheme who threatened people with a firearm to try to collect debts was sentenced today to six years in prison, announced U.S. Attorney Jenny A. Durkan. SON PHAM, 45, pleaded guilty in November 2013 to two counts of Attempted Collection of Extensions of Credit by Extortionate Means, one count of Bank Fraud, and one count of Carrying a Firearm During and in Relation to a Crime of Violence. SON PHAM admits he used threats of violence to collect debts and that he had arranged for one of his co-conspirators to be armed with a firearm while the threats were made. At sentencing U.S. District Judge Robert S. Lasnik ordered PHAM to pay $115,690 in restitution for the bank fraud scheme.
According to records filed in the case, PHAM conspired with ring leader Chi Ahn Nguyen in a scheme to defraud banks by running up credit card and cash advance debts that they never intended to repay. The men used the identities of others—many of whom participated in the schemeto access credit cards that he and others involved in the scheme used to purchase jewelry and other consumer goods or for cash advances at casinos. The men then took a share of the proceeds derived from those transactions. PHAM also loaned money to people in his community and then used threats of violence to try to collect the debts. In October 2012, PHAM arranged for one of his cohorts to be armed with a semi-automatic pistol when they confronted an associate of someone owing PHAM $10,000. The men claimed the victim was responsible for the other man’s debt; they surrounded him at the Macau Casino in Tukwila and demanded the money while brandishing the gun. In a second instance, also in October 2012, PHAM tried to collect a $2,000 debt by threatening to send people to the victim’s home to “cut him.”
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI). The case is being prosecuted by Assistant United States Attorney Matthew Hampton.
Attorney General Holder Announces H. Marshall Jarrett to Retire from Executive Office for U.S. Attorneys; Monty Wilkinson Named as SuccessorRead the Press Release
WASHINGTON – Attorney General Eric Holder today announced the retirement of H. Marshall Jarrett, Director for the Executive Office for U.S. Attorneys (EOUSA) as well as the appointment of Monty Wilkinson as the new Director for EOUSA.
Prior to his appointment as Director for EOUSA in 2009, Jarrett served as Counsel for the Office of Professional Responsibility, as an Associate Deputy Attorney General, and as Deputy Chief of the Public Integrity Section of the Department of Justice. In addition, he served as Chief of the Criminal Division in the U.S. Attorney’s Office for the District of Columbia and as Criminal Chief and First Assistant U.S. Attorney in the U.S. Attorney’s Office for the Southern District of West Virginia.“For 39 years, Marshall has distinguished himself in the Department as an exceptional public servant and a principled leader. To me, personally, he has been a trusted mentor and a good friend,” said Attorney General Holder. “In the face of daunting staff and resource constraints, Marshall’s calm and steady leadership was exactly what EOUSA and the U.S. Attorney community needed over these past several years. His extraordinary contributions have left an indelible mark on the Department and the country will be forever grateful for his service.”
Wilkinson, whose appointment as Director for EOUSA will become effective on March 31, has held many significant executive-level positions in the Department. He most recently served as the Principal Deputy Director and Chief of Staff for EOUSA. Before arriving at EOUSA, he served as Counselor and Deputy Chief of Staff to the Attorney General and as an Associate Deputy Attorney General.
“Monty is a tremendous asset to the Department, and I am grateful he has agreed to take on this enormous responsibility,” said Attorney General Holder. “I look forward to continuing to work closely with him and the U.S. Attorneys as we continue our critical mission to provide justice for the American people.”
Antitrust Division Announces New Streamlined Procedure for Parties <br /> Seeking to Modify or Terminate Old Settlements and <br /> Litigated JudgmentsRead the Press Release
The Department of Justice’s Antitrust Division today announced a new streamlined procedure that will lower the costs and expedite the review process for parties seeking to modify or terminate old antitrust settlements and litigated judgments.
The new voluntary procedure, which is effective immediately, updates a 1999 protocol. The expedited process can be used by parties seeking to modify or terminate perpetual decrees–settlements and litigated judgments–entered prior to 1980.In 1979, the department determined that entering into perpetual decrees was not in the public interest. Since that time, decrees have included “sunset” provisions that will automatically terminate them after a term of years, not to exceed 10 years. Most decrees entered into before 1980 do not contain this provision.
“The new streamlined procedure will expedite the review process for legacy decrees and will benefit both the defendants and the department by eliminating costly and time intensive investigations,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The Antitrust Division will continue to look for ways to incorporate procedural efficiencies whenever possible as it is an important part of effective antitrust enforcement.”
Pre-1980 perpetual decrees cannot be terminated or modified except by court order. Since 1980, there have been significant changes in markets and technology and substantial changes in antitrust law. Going forward, the department will advise courts that pre-1980 “legacy” decrees, except in limited circumstances, are presumptively no longer in the public interest. Those limited circumstances may include when there is a long-standing reliance by industry participants on the decree.The updated procedure differs from the present procedure in two important ways. First, the party seeking termination or modification will no longer be subject to the extensive discovery that was required by the 1999 protocol. This should result in a substantial reduction in the cost of seeking decree termination. Second, when responding to a request to terminate or modify qualifying legacy decrees, the department will no longer conduct an in-depth investigation into the relevant markets due to the significant changes that have taken place. The updated procedure can be found in the Division Manual on the Antitrust Division’s website.
Under the protocol, the requesting party will publish, at its own expense, notice of its intent to seek termination or modification and invite interested parties to provide the Antitrust Division with relevant information. The division will work with the requesting party to determine what form of cost-effective notice is appropriate. Because the process is expedited, the division believes that a pre-filing public comment period best serves the public interest by allowing interested parties to come forward early in the process so that their concerns may be considered and addressed prior to the filing of a motion to modify or terminate. The division will take into account issues that are brought to its attention and address them as appropriate. Other parts of the 1999 protocol will remain in effect.
Another Defendant Sentenced in Identity Theft Tax Refund Fraud Scheme Involving Thousands of Patients’ Personal Identity InformationRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that defendant Marquis Onigirin Moye, 24, of Pompano Beach, was sentenced for his participation in a stolen identity tax refund scheme. Moye was sentenced to 54 months in prison, to be followed by three years of supervised release. Moye previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
Co-defendants Tiffany Shenae Cooper, 33, of Deerfield Beach, and Angela Dione Rosier, 41, of Coral Springs, were sentenced on February 28, 2014. Cooper was sentenced to 57 months in prison, to be followed by three years of supervised release. Rosier was sentenced to 49 months in prison, to be followed by three years of supervised release. The court also ordered both defendants to pay $129,390.06 in restitution to the IRS and the medical services provider whose database had been breached. Cooper previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Rosier previously pled guilty to one count of conspiracy to commit access device fraud, in violation of Title 18, United States Code, Section 1029(b)(2).
Co-defendant Michael Ali Bryant, Sr., 41, of Lauderdale Lakes, previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Bryant’s sentencing is scheduled for April 11, 2014. At sentencing, the defendant faces a maximum of ten years in prison for the possession of unauthorized access devices charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charge.
Michael Bryant's wife and co-defendant Latina Rashawn Bryant, 43, of Lauderdale Lakes, previously pled guilty to one count of using an unauthorized access device, in violation of Title 18, United States Code, Section 1029(a)(2), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Sentencing is scheduled for April 10, 2014.
According to court documents, a confidential source (CS) initially approached Michael Bryant and inquired about purchasing narcotics. Bryant told the CS that he did not have any narcotics but that he did have personal identity information (PII) that he was willing to sell to the CS. The CS made a controlled purchase of ten pages (each page containing approximately 20 to 25 names) of PII. Bryant instructed the CS on how to commit tax fraud using the PII, and provided the CS with specific instructions on what information to enter into the web pages of the internet-based tax services to obtain a tax refund. An examination of the PII revealed that it was from a medical services provider.
Rosier was an employee of the medical services provider. Cooper spoke to Rosier to obtain user names and passwords for current employees of the medical services provider. Cooper admitted to illegally logging on to the medical services provider’s computer network and downloading PII for the purpose of committing various types of fraud. She was assisted in her activities by Rosier and co-defendant Moye.
Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Acting Assistant Attorney General for National Security John P. Carlin Delivers Remarks at the American University Business Law Review 2014 SymposiumRead the Press Release
Thank you for that kind introduction – and for inviting me here today. It’s a pleasure to be back at AU, and a privilege to join so many experts, essential partners, and good friends in advancing one of the most important conversations currently facing government and private sector leaders across the country.
At the Justice Department’s National Security Division, there is little we do that is more important than working on how the government can partner with private companies to protect our nation and its people better – from terrorism, from cyber attacks, and from a range of other malicious activities.
This past December, I attended a ceremony marking the twenty-fifth anniversary of the bombing of Pan Am Flight 103 over Lockerbie, Scotland, which claimed the lives of 259 people on the plane and 11 on the ground. 189 were Americans. It was the deadliest act of terror against the United States prior to September 11th.
The families and friends of those who were lost came together that winter day at Arlington National Cemetery to recall the event that changed their lives forever. They spoke movingly of loved ones who had been on board that plane, many of whom were American college students flying home for the holidays.
On December 21, 1988, instead of reuniting with their companions and loved ones, they heard news reports of a catastrophic explosion and wreckage strewn over miles of the Scottish countryside. Shortly thereafter, they learned, as did the rest of the world, that terrorists were to blame.
There was a call for justice – to find the perpetrators and hold them responsible. And there was also a call for new security measures designed to stop another attack from happening.
At the ceremony last winter, former Secretary of Labor Ann McLaughlin Korologos spoke of her experience leading the seven-member Presidential Commission on Aviation Security and Terrorism that was formed a few months after the attack to investigate what went wrong. Eighteen months after Lockerbie, that Commission issued a report calling for national attention to our aviation security system, and identifying a host of specific proposals intended to harden our nation’s airline security and keep all Americans safe – both at airports and in the skies.
Many of these measures did not become reality. Interest faded, attention waned – and so did political and social will. Twelve years later, the horror of 9/11 changed that. It reinvigorated the focus on aviation security – and the 9/11 Commission called for many of the same security measures called for in the wake of Lockerbie. This time, almost all of them were implemented.
Today, national leaders in both government and private industry must apply the lessons we learned from unspeakable tragedies like these, and from decades of effective counterterrorism policy, to business action in cyberspace. It is imperative that we take action promptly, without waiting for a galvanizing tragedy. We can work together to change norms now -- not in the wake of an immensely damaging terrorist cyber attack. In doing so, we will have a much better chance of preventing such an attack from ever taking place.
I grew up in New York City, a place where you can experience the anonymity now enjoyed by so many on the Internet. And when I was a kid, the NYPD sent an officer to our school who told us how to conduct ourselves on the streets of New York.
Our version of Officer Friendly told us to look both ways when we crossed the street. Of course, he told us not to make eye contact with people on the street -- which was pretty standard advice back then.
As a kid, that seemed to make total sense. Decades later, New York City is now one of the safest major cities on the planet. And when we look back at that advice, it seems crazy that there was a consensus of blaming the victim for making eye contact. These days, on the internet, we tell our kids to beware of chatting with individuals they don’t know, to avoid certain websites or apps.
When a person’s credit card gets stolen, or their credentials for accessing a social media site or their bank are hacked, we tell them, “You should have known better than to go to that website,” or, “You shouldn’t have used the same 18-character password more than once.” Together, hopefully, we can look back in a few short years and think that that those warnings and the victim-blaming is also strange and that we’ve come a long way with regards to cyber security.
One of the things that’s changed in New York over the years is its social norms – like making eye contact. We need to shape social norms in the cyber area, too. Just as it was in a chaotic urban environment, it’s tricky to cultivate trust in cyberspace. There were streets in New York where the bad guys and the good guys passed each other shoulder to shoulder. The same thing is true in cyberspace. Legitimate businesses and innocent customers use the same Internet that hackers and terrorists use.
As my former boss at the FBI, Bob Mueller, explained, bad actors – specifically terrorists – are using cyberspace for at least three discrete aspects of terrorist activity: (1) to propagandize and recruit; (2) to plot and plan attacks in the physical world; and (3) to launch attacks in the virtual world itself. It’s hard to cultivate trust online amidst such company and to restore a sense of security.
But like change in New York, change in cyberspace will be a community effort. When our Officer Friendly came to visit, he told us about Safe Havens – businesses that opened themselves up just a little bit, to be better members of the community, and to provide a place for people to go if they felt threatened. Back then, there were little yellow Safe Haven signs on the doors of stores in New York, and he told us, “If you’re feeling uncomfortable or scared, or are being targeted, don’t be afraid to go into one of these stores and seek help. Your safety should be your first priority.”Just as those Safe Havens existed as trusted businesses when I was kid, the government and the corporate community can come together to create safe havens in cyberspace.
We need to work together to prevent terrorists from using networks – using the very websites and apps we use every day – to plot attacks in the physical world. And we need to shore up our security so that devastating attacks cannot be launched in the virtual world. These tasks are not easy, and they are ones we need to undertake with care, to strike a proper balance between security and liberty.
Some businesses, especially those in the communications sectors, may be hesitant to build new partnerships with government – or are drawing back from their current partnerships – because of the national discussion that has taken place over the last year.
The President has committed to providing greater transparency about the government’s lawful use of data collection authorities. However, as the President has noted, the nature of some unauthorized disclosures have shed more heat than light. And that heat has come onto companies as well, often unfairly. We take their concerns seriously, and we are dedicated to increasing transparency as well as protecting civil liberties. That is why many layers of checks and balances are built into the systems – without question some of the best protections provided by any country in the world. Our authorities are rigorously overseen by Congress, and often scrutinized by the courts and independent government watchdogs. And they are aimed at ensuring the safety of the nation and our allies.Of course, the private sector should not be punished for complying with the law. We are concerned about this issue, and we are dedicated to working with companies to address misconceptions, correct misinformation, and help to rebuild the public’s confidence that our partnerships are conducted under the law. We are working with industry to help them be more transparent about what kinds of information they are required to share with the government, and how very few of their customers are ever impacted by government actions.
Yesterday’s announcement by the President of a way forward on the handling of telephony metadata indicates just how committed the Government is to ensuring that the public’s concerns are addressed, without the Government sacrificing certain operational needs. As you might have heard, the President announced a proposal that will, with the passage of appropriate legislation, allow the government to end bulk collection of telephony metadata records under Section 215, while ensuring that the government has access to the information it needs to meet its national security requirements.
Getting our legal policies right is one thing. But make no mistake: It will lead to tragedy if the ultimate result of these disclosures is to cause businesses to shy away from working with the government to prevent terrorism. The undeniable truth is that our collaboration, and the protections we have put in place together, make us safer from those who would attempt to do us harm – from terrorists to hostile nation-states seeking to capitalize on our vulnerabilities.
One example that comes to mind is the case of Khalid Aldawsari, a college student from Saudi Arabia who took chemistry classes at Texas Tech in Lubbock, Texas. When he began placing large and unusual orders for chemicals online, the chemical company reported the order to the FBI, as did the shipping company. Ultimately, he was convicted in federal court and sentenced to life in prison for trying to use those chemicals to make a bomb, potentially to attack a former President. And heading off that threat all began with two companies taking the right step of alerting the FBI to suspicious activity.
Whenever the public faces a threat, whether from terrorists, computer hackers, or pick-pockets on the Metro, people expect the government to protect them. But the government can’t do it alone. And that is particularly true in the context of cyber threats, given just how much of our nation’s most essential information is found online and, in particular, in the hands of private companies.
You know the threats we face. You’ve seen them firsthand. Although we often think of the government and our brave men and women serving abroad as a primary focus of terrorist attacks, we must keep in mind that the 9/11 attacks targeted this nation as a whole, and its impact was felt by all of us.
Since then, terrorism is now increasingly diverse and decentralized, from al Qaeda affiliates overseas to homegrown terrorists – such as the Boston Marathon bombers – who may live in the communities they intend to strike. But the cyber threat is growing rapidly, and down the road, may rival or even surpass the threat we face today.
Malicious cyber actors are an increasing risk to our security and prosperity. Last year, BP’s CEO stated that his company sees approximately 50,000 attempted cyber intrusions each day. And he is not alone.
As you know, hackers – in many cases working for foreign states or organized criminal syndicates – break into private businesses’ servers and steal the key intellectual property that gives us a competitive edge in the global marketplace. And malicious cyber actors sometimes target companies’ infrastructure. In 2012, Saudi Arabia’s state oil company, Aramco, suffered an attack that destroyed 30,000 of its computers – nearly 75% of its workstations, a devastating loss for any company.
Many of these same hackers exploit vulnerabilities in software, turning home computers or servers into launch pads for malicious denial-of-service attacks against banks, companies, and government agencies – shutting them down and disrupting their ability to do business. It does not take much imagination to see how these same tools could be used by terrorists, resulting in what has been referred to as a potential “cyber 9/11.”
When these attacks happen, people ask the same two basic questions many asked after the Lockerbie bombing: “What more could have been done to protect me?” And, “are they going to get these guys?” To answer these questions, we need the private sector and the government to work together.
Intrusions by nation-states have gone on longer than acknowledged. Why are so many companies waiting to come to the government for help? This situation is not unlike the way that organized crime was able to intimidate small businesses into paying for so-called “insurance” . For each mom and pop store, individually, it made more sense to pay the insurance rather than face retaliation for speaking up or going to the cops. And as a result, the criminal organizations made big profits. They only took a small amount from each business, but the money added up over the dozens or hundreds of businesses they intimidated. It wasn’t until the cost of doing business with the mafia got too high – or someone was brave enough to stand up to the mob – that law enforcement was able to break up these organized crime rings.
The calculus that many businesses make today is similar to the decisions that the mom and pop stores had to make several decades ago: Does the cost of paying out – that is, failing to tell the authorities about cyber attacks – outweigh the costs of potential retaliation? When faced with the prospect of taking on a nation-state with all of its powers – not to mention the fear of not being able to do business in that’s nation’s marketplace – many companies have made the calculation of remaining silent.
But the cost of that silence is increasing. As valuable assets, proprietary information, and research and development investments are repeatedly compromised by increasingly relentless attacks, businesses can no longer afford to stay silent victims. The calculus has changed. Companies are taking action.Over the last year, we have seen a tipping point. As more and more companies come forward, more and more will feel emboldened. Eventually, these nation-state hackers – just like the mafia – will lose the ability to intimidate victims.
Public-private partnerships are particularly important because of the key role that businesses play in our society. Unlike some countries, where government maintains control over the telecommunications and energy industries, nearly all critical infrastructure in the United States is owned and managed by private companies. The fiber-optic cables that our communications transit; the servers that direct our Internet traffic; the software that allows us to communicate; and the energy we use to power our daily lives – all of these things, and so many more, are created and operated by private companies.We thrive as a nation because of private innovation, and the creativity that comes with the freedom to innovate. This has been true throughout our history. But these unique strengths also create opportunities for attacks. When attacked, companies are often in the best position to protect themselves and their customers from cyber aggressors. But they may not always be in the best position to know the precise threats they face, which is where we can help.
Take, for example, the Department’s work on cyber threats. On a daily basis, the FBI is working with companies that have been the victims of hacks – many of whom may not even know they have been victimized, or how to protect themselves. The Washington Post reported earlier this week that federal agents notified more than 2,000 U.S. companies last year that their computer systems were hacked – and, as the article explained, even that considerable figure represents only a fraction of the actual number of cyber intrusions into the private sector.
There are many efforts underway across the government to work with private corporations on strengthening public-private cyber cooperation. The Department of Homeland Security, the Department of Energy, and other departments and agencies routinely work closely with companies to protect critical infrastructure.
In driving this work forward, the FBI has long relied on its InfraGard program, which brings together individuals in law enforcement, government, the private sector, and academia to talk about how to protect our critical infrastructure. InfraGard has more than 85 chapters across the country, with more than 47,000 members.
These are all positive and important efforts, but we have to do more.
As we speak, the Department of Justice is working hard to be a more accessible partner to companies. Over the past two years, the National Security Division established a national program to focus on cyber threats to the national security – those posed by terrorist and nation state actors – and we are continuing to grow. We are still a very new Division, but we are evolving quickly to meet new and emerging threats.
The story of NSD’s creation is an interesting one. Although not formally created until 2006, NSD’s story begins, like so many others, with calls for reforms that were first spotted years ago. We trace our origin all the way back to 1978, with the passage of the Foreign Intelligence Surveillance Act. FISA was, in part, a response to public and congressional dissatisfaction with a series of intentional abuses of wiretaps and surveillance for political purposes. The Church Committee’s report set out those problems and made a case for reform. The report emphasized that the Attorney General, as the nation’s chief legal officer, plays an essential role in maintaining the lawfulness of actions by our country’s intelligence agencies. NSD was created, and is proud, to execute that mission decades later on his behalf.
So as we tackle the cyber threat, we build upon our roots. We were created so that prosecutors and law enforcement officials could work smoothly and effectively with intelligence attorneys and the Intelligence Community, to ensure that we most effectively defend our nation’s security while at the same time protecting our vital civil liberties. And I would be remiss in describing the vital work of our Division if I neglected to acknowledge this week’s conviction of Sulaiman Abu Ghayth in New York. Abu Ghayth, described as a senior spokesman for Osama bin Laden and al Qaeda, was convicted by a federal jury on all counts, including conspiring to kill Americans and other terrorism charges.
So, even as we defend our national security through successful counterterrorism prosecutions in federal court, we also defend our security while protecting our civil liberties in cyberspace. In 2012, we established the National Security Cyber Specialists’ Network, with members from across all of our areas of expertise, federal prosecutors from each and every U.S. Attorney’s Office, and partners from the Department’s Computer Crime and Intellectual Property Section, who have had longstanding and continuing success against organized cyber criminals, hacktivists, criminal fraudsters and other bad actors.
Since then, we have hosted extensive training for these network members and for every member of the National Security Division, to ensure we have the skills we need to tackle the threat. Federal prosecutors across the country are reaching out to companies in their districts to let them know about the network and how we can help.
Here in our nation’s capital, we work closely with the FBI’s National Cyber Investigative Joint Task Force to assess cyber issues in real time as they arise. We’ve launched a 24/7 cyber response capacity. We are now a one-stop shop and resource for national security cyber matters across the country.
There are criminal cases to be brought against these actors, but that is just one tool. We are committed to using every tool at our disposal, law enforcement and others, to disrupt adversaries’ activities and prevent damage to U.S. national interests – just as we do in other arenas of counterterrorism, counterespionage, and export control.
We are drawing from our expertise in those areas, and building new capabilities to ensure that we can use all available tools to meet a range of constantly-evolving threats.
Employing this comprehensive, “all-tools” approach means we need to be prepared not only to prosecute cyber intrusions, economic espionage, and export control violations, but also to work with our partners to enforce other civil and regulatory laws.
We cannot do this alone. This “all-tools” approach requires trusted collaboration, including with operational and legal experts in the private sector.
It’s often said, there are only two types of companies: those that have been hacked and those that will be. Now, that’s no longer the case. Today, there is only one category: those that have been hacked, and that will be hacked again.
Going forward, we want to work even more closely with our private sector partners to be ready for whatever may happen in the near future. Of course, private companies will remain our first line of defense, and their legal teams must be prepared to face difficult questions and complex matters, including how to respond to cyber breaches; how to interpret and comply with the cyber Executive Order and the cybersecurity framework recently released by the Administration; and, how to stay on top of the evolving “standard of care” for cyber security.
All of us – including lawyers and operators in the public and private sectors – will need to cooperate closely to address these and associated threats. We all must act on the premise that success requires reporting from, and close relationships with, victims and potential victims who seek indicators of malicious activity.
My colleagues and I have already met with a number of private entities and received a positive response, and we will continue these meetings to keep the dialogue going.
And as we look toward the future, we must continue establishing channels that regularly communicate cyber threat information between the public and private sectors. Information must move in both directions. It is an approach that works in other contexts, and it will succeed here as well.
We have come a long way in our collective approach to counterterrorism. Together, we have improved airline safety, hardened critical infrastructure, developed new technology that can help first responders, and designed a wide range of protective measures. These measures, of course, don’t eliminate the threat of to our national security, which remains very real and very dangerous. But we are safer than we used to be, and better prepared to cope with any potential attack.
We need to achieve this same success in the cyber realm. So the critical question is: What will it take?
We’ve certainly had plenty of attacks that caused real pain, exposed real weaknesses, and suggested real problems for the future. Yet, despite all of these warnings, we don’t seem to have fully turned the corner in addressing this threat. And the reasons for that are understandable.
Confronting cyber threats incurs real economic cost. We appreciate that. But doing nothing will cost us all more in the long run, and may, for some businesses, prove devastating.
The writing is on the wall – our adversaries are getting bolder, more aggressive, and more skilled. They flex their muscle to show us what they can do, but it is only the tip of the iceberg. Without a concerted, collective effort to make the changes needed to protect ourselves in cyberspace, it is only a matter of time before we are really hit – hard. Far better to form partnerships and make the required investments before a large-scale attack takes place.
Indeed, perhaps even more than in the terrorism context, the private sector is critical to our success in the cyber context because of just how much vital information is now held “in corporate trust,” so to speak.
While government holds and protects some of what cyber terrorists want to access, the private sector has much, much more. So, whether it’s about ensuring that our electric grid is safe from attacks – whether physical or cyber – or making sure you can access your bank account information on your smartphone without getting hacked, we urgently need to form the type of public-private partnerships to keep those vital resources safe. These are the type of partnerships we’ve created for counterterrorism. We must build on those partnerships to combat cyber threats – not pull away from each other.
This is the challenge now before us – and this is the cause that everyone in this room, and many beyond it, must come together to confront. Each of us has a unique role to play, and distinct responsibilities to fulfill.
Leaders in government can articulate precisely what we have to offer the private sector. Leaders in the private sector can demonstrate what these partnerships have to offer to their customers. And leaders in academia can survey the legal authorities we have – and take stock of what legal authorities we don’t have but need – to facilitate cooperative, productive cyber partnerships. We can build these partnerships while respecting civil liberties and do it in a transparent and productive way.
We are committed to meeting regularly with critical partners to get your feedback on how we are doing; to solicit suggestions on how we can do better; and to gain the benefit of your views on how the overall landscape is looking. Please reach out to us so that we can talk more about what NSD does, and how we can work together to keep you safer and our nation safer.
I want to close today by calling upon everyone here to continue the important open dialogue we’re holding here at AU today. I urge you to serve as connectors – as bridges – to make private-public partnerships a reality.
We had warnings before 9/11. But we didn’t act – at least not enough. The state of security of the Internet today is a rumbling storm in the distance. We need to be smart and work together, now, before a cyber 9/11 – before there’s an attack or intrusion or exfiltration so big – and so devastating – we are forever changed. Thank you for participating in this important conversation, and thank you for having me here today.
27 March 2014
Youngstown Woman Indicted for Insurance-Fraud ArsonRead the Press Release
A three-count indictment was filed charging a Youngstown woman with setting fire to a rental property in order to collect insurance money, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Latasha Curtis, 33, of Youngstown, Ohio, faces with one count of conspiracy, one count of use of fire during the commission of a felony, and one count of maliciously damaging and destroying, and attempting to damage and destroy, by means of fire, real property used in interstate commerce and in activity affecting interstate commerce
The indictment charges that Curtis, along with others made known to the Grand Jury but not indicted, conspired to commit arson of a rental property located at 75 Hilton Avenue in Youngstown, and to commit wire fraud in submitting false claims against State Farm Insurance Corporation for the proceeds of an insurance policy on the property.
The property was burned in a fire occurring on October 19, 2013, which was intentionally set by Curtis and others, according to the indictment.
State Farm paid $67,916.10 after the insurance claim on the property was submitted, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of the federal sentencing guidelines and factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses and the characteristics of the violations.
This case was investigated by the Youngstown Resident Agency of the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorney James V. Moroney.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Youngstown Man Charged with Failing to Register as Sex OffenderRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a federal grand jury sitting in Cleveland, Ohio, returned a one-count indictment charging Roland Fink, age 40, of Youngstown, Ohio, with failure to register as a sex offender.
The indictment charges that from on or about January 20 to February 27, 2014, Fink failed to register as a sex offender as required under the Sex Offender Registration and Notification Act, after having traveled in interstate commerce.
If convicted, the defendant’s sentence will be determined by the Court after review of 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 violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the United States Marshals Service. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment in only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
West Mifflin Woman Sentenced to Prison for Conspiring to Launder Heroin Trafficking ProceedsRead the Press Release
PITTSBURGH – Lori Page, a resident of West Mifflin, Pa., was sentenced to 24 months in prison for conspiring to launder heroin trafficking proceeds, United States Attorney David J. Hickton announced today.
Page, 30, was sentenced by United States District Judge Nora Barry Fischer. Judge Fischer also imposed a three-year term of supervised release to follow the prison sentence.
In 2012, Page laundered thousands of dollars of heroin trafficking proceeds through her bank account and through payments to rental car companies and knowingly facilitated interstate heroin trafficking in doing so. She did it in return for money, expensive shoes, clothing, and related accessories. In addition, testimony during the sentencing hearing established that, during 2010 and 2011, Page served as a matchmaker between an out-of-state heroin source of supply and Pittsburgh heroin dealers. She was compensated for doing so.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration in Pittsburgh and New York, the Pennsylvania State Police, the Pittsburgh Bureau of Police, the Allegheny County Police Department, the Pennsylvania Attorney General's Office, the Wilkins Township Police Department, the East Pittsburgh Police Department, the New York Police Department, the Blair County District Attorney's Office, and the Allegheny County District Attorney's Office conducted the investigation leading to the conviction and sentence in this case.
Two Men Plead Guilty to Fraud Conspiracy in Connection with Renovation of McCormack Federal BuildingRead the Press Release
BOSTON - Two men pleaded guilty yesterday to conspiring to defraud the government in connection with the renovation of the John W. McCormack Post Office and Courthouse in Boston.
Wael Isreb, 55, of Wrentham and Aluisio Dasilva, 67, of Hudson, Mass., pleaded guilty before United States District Court Judge George A. O’Toole, Jr., to conspiracy to commit mail fraud and false statements. Isreb and Dasilva are scheduled to be sentenced on July 17 and 15, respectively.
Isreb operated Taunton Forms, a now-defunct concrete construction company based in Lakeville, Mass. DaSilva was employed by Taunton Forms as a cement mason. In 2006, the Government Services Administration (GSA) retained Suffolk Construction Company as the general contractor to renovate the McCormack Building. Suffolk Construction, in turn, retained Taunton Forms as a subcontractor to perform certain concrete work on that project. Suffolk Construction ultimately paid Taunton Forms in excess of $1 million for its work.
Federal law requires that contractors on federal projects over $2,000 pay workers a prevailing wage, and that they submit weekly reports certifying the wages they paid their employees. Beginning in December 2007, however, Isreb, DaSilva and others conspired to pay Taunton Forms workers less than the prevailing wage while certifying to Suffolk Construction, the GSA, and the United States Department of Labor (DOL) that Taunton Forms was, in fact, paying the prevailing wage.
As part of the conspiracy, the defendants agreed to report, falsely, to the Massachusetts Department of Unemployment Assistance (DUA) that DaSilva and other workers had been laid off. That permitted the workers to offset their lower wages with unemployment benefits while they worked on the McCormack Building project and other projects. The conspiracy also permitted Taunton Forms to avoid making fringe benefit payments to certain labor union benefit plans that it was required to pay pursuant to its applicable collective bargaining agreements. Taunton Forms also failed to withhold applicable payroll taxes.
The maximum sentence under the statute is five years in prison, three years of supervised release and a fine of $250,00 or twice the gross gain or loss. Pursuant to their plea agreements, Isreb and DaSilva are also required to pay restitution to the government and the labor unions that were defrauded as a result of the conspiracy.
United States Attorney Carmen M. Ortiz; Cheryl Garcia, Acting Special Agent in Charge of the U.S. Department of Labor, Office of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations, New York Regional Office; Luis A. Hernandez, Special Agent in Charge of the U.S. General Services Administration, Office of Inspector General, Office of Investigations; Susan A. Hensley, Regional Director of the Employee Benefits Security Administration, U.S. Department of Labor, Boston Regional Office; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The case is being prosecuted by Assistant United States Attorney Stephen E. Frank of Ortiz’s Economic Crimes Unit.
Two Men Indicted for Their Role in Manufacturing PCP That Led to ExplosionRead the Press Release
ATLANTA - Adrian Banks has been arraigned on federal charges relating to the manufacture of PCP which led to a dangerous house fire when the clandestine laboratory exploded. Coleman Warnock, a second defendant named in the indictment, is being sought by law enforcement.
“An entire neighborhood was put at risk by the explosion of this PCP lab,” said United States Attorney Sally Quillian Yates. “This type of drug also puts our entire community at risk. Thankfully, this lab is out of business and our citizens in that neighborhood are safe.”
Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division commented on the case, “These volatile chemicals are venomous to the consumer and leave behind a trail of devastation and destruction by those who manufacture it, as was the case in this investigation. Because of the collective efforts of local, state and federal law enforcement, these defendants will have to face the consequences of their unlawful acts.”
“Not only were these men putting dangerous drugs on the street, they were also endangering completely innocent people by operating a PCP lab in a neighborhood,” said Georgia Bureau of Investigation Director Vernon Keenan. “We will continue to work with our local and federal partners to insure people who endanger the lives of others are held accountable.”
According to United States Attorney Yates, the charges and other information presented in court: On July 6, 2013, Fulton County Fire/Rescue responded to a citizen’s call about a house fire in a Fairburn, Ga., neighborhood. The house was destroyed after burning for almost two days. Further investigation revealed the presence of numerous barrels and canisters of chemicals suggesting the presence of a large, clandestine, PCP lab in the residence. No one other than the individuals involved in the manufacture of PCP was harmed in the fire.
On January 14, 2014, a federal grand jury returned an indictment against the defendants, Coleman Warnock, 41, of Powder Springs, Ga. and Adrian Banks, 39, of Atlanta, Ga., charging them with one count of conspiracy to manufacture PCP, four counts related to the manufacture of at least one kilogram of PCP, and one count of creating a substantial risk of harm to human life while attempting to manufacture PCP.
On January 16, 2014 Adrian Banks was arrested and has been detained. Coleman Warnock remains a fugitive. If anyone has any information on Warnock’s whereabouts please contact the DEA at (404) 893-7000.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.The Drug Enforcement Administration is leading the investigation of the case. The Georgia Bureau of Investigation, Fulton County Fire/Rescue, Fulton County Police, Fulton County Fire Department Hazmat Team, SWS Environmental Services, the Georgia State Fire Marshal’s Office, the Atlanta Fire Department, and the Atlanta Fire Department Clandestine Laboratory Enforcement Team have also been involved in the clean-up of the residence and investigation of the case.
Assistant United States Attorney Vivek Kothari is prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
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/.
Two Charged with Robbing Soft Pretzel CompanyRead the Press Release
Donte Camp, 41, of Philadelphia, and Calvin Maurice Clark, 43, of Bensalem were charged today by indictment with robbing the Center City Soft Pretzel Company, in Philadelphia, on October 29, 2013, announced United States Attorney Zane David Memeger. The indictment charges each defendant with one count of robbery which interferes with interstate commerce, one count of using and carrying a firearm during a crime of violence, and one count of being a convicted felon in possession of a firearm.
If convicted, each defendant faces a mandatory minimum of seven years in prison with a maximum possible sentence of life imprisonment, a $750,000 fine, five years of supervised release, and a $300 special assessment.
The case was investigated by Federal Bureau of Investigation, the Philadelphia Police Department, and the Philadelphia County District Attorney=s Office and is being prosecuted by Assistant United States Attorney Jeffery W. Whitt.
Click here to view the indictment
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Title of the News Release Goes HereRead the Press Release
Orlando, Florida - U.S. District Judge John Antoon, II sentenced Lavitress Williams (33, Orlando) to 5 years, and three months in federal prison for her role in a counterfeit traveler’s check scheme. She was also sentenced to 5 years of supervised release and ordered to pay $44,728.33 in restitution to Target. Williams pleaded guilty on January 4, 2012.
According to court documents and evidence presented at the trial of a co-defendant, Williams was involved in a conspiracy and scheme by which counterfeit traveler’s checks were passed at Target stores located throughout the Southeastern United States. Other conspirators manufactured the counterfeit traveler’s checks, which Williams and other conspirators used to purchase merchandise at various Target stores. Williams and her conspirators would take the fraudulently obtained merchandise to different Target stores, where the merchandise would be returned for cash refunds. They would then divide the cash amongst themselves. From September 2011 to December 2011, Williams and her conspirators passed over 100 counterfeit checks, at over forty Target stores, located in six states. The scheme resulted in a loss to Target of $44,728.33.
Williams is one of six individuals who has been prosecuted for their role in this conspiracy and scheme. The following are the sentences of the other five individuals:
Name Charges Sentence Lottie Davis Conspiracy, two counts of bank fraud, and four counts of making, passing, or possessing counterfeit securities20 months in federal prison and 3 years of supervised release
Bank fraud 18 months in federal prison and 3 years of supervised release Darrel Dopson Conspiracy and bank fraud Time served and 3 years of supervised release Brandy Hooks Conspiracy 3 years probation Larry Wilson Conspiracy 3 years probationThis case was investigated by the United States Secret Service. It was prosecuted by Assistant United States Attorney Roger B. Handberg.
Three Youngstown-area Men Face Federal Firearms ChargesRead the Press Release
Three men from the Mahoning Valley were each indicted on one count of being felons illegally in possession of firearms and ammunition, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The cases are not related.
Darryl L. Lee, 25, of Youngstown, Ohio, was in possession of a Kel-Tec, model PF-9, 9mm pistol, and ammunition, on or about January 30, 2014, despite Lee having been previously convicted of aggravated assault, in the Mercer County, Pennsylvania, Court of Common Pleas, according to the indictment.
Alex C. Green, age 28, of Campbell, Ohio, was in possession of a Raven Arms, model P-25, .25 caliber pistol, a DPMS, model A-15, .223 caliber rifle, and ammunition, on or about February 18, 2014, despite Green having been previously convicted of being a felon in possession of a firearm in the U.S. District Court for the Northern District of Ohio, and of felonious assault, in the Court of Common Pleas, Mahoning County, Ohio, according to the indictment.
Whittington R. Davis, age 27, of Youngstown, Ohio, was in possession of a Bryco Arms, model 48, .380 caliber pistol, and ammunition, on or about February 1, 2014, despite Davis having been previously convicted of possession of cocaine, in the Mahoning County, Ohio, Court of Common Pleas, according to the indictment.
The Lee case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Youngstown Police Department and the Adult Parole Authority. The Green case was investigated by ATF and the Campbell Police Department. The Davis case was investigated by ATF and the Warren Police Department.
The cases are being prosecuted by Assistant United States Attorney David M. Toepfer.
If convicted, the defendant’s sentence will be determined by the court after review of 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 violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Third Person Charged for Discharging Waste Related to Oil and Gas Drilling into the Mahoning RiverRead the Press Release
A third person has been criminally charged for discharging brine and wastewater related to oil and gas well drilling into the Mahoning River, law enforcement officials announced.
Mark A. Goff, 46, of Newton Falls, Ohio, was charged with one count of making an unpermitted discharge in violation of the Clean Water Act.
The conduct took place between October 1, 2012 and November 12, 2012, according to the information.
The filing of the criminal information was announced by Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, Ohio Attorney General Mike DeWine, James Zehringer, Director of the Ohio Department of Natural Resources, Craig W. Butler, Director of the Ohio Environmental Protection Agency, and Randall K. Ashe, Special Agent in Charge of the U.S. Environmental Protection Agency.
According to the information and related court documents:
Hardrock Excavating LLC is owned by Lupo and located at 2761 Salt Springs Road, in Youngstown, Ohio. The company provides services to the oil and gas industry in Ohio and Pennsylvania, including the storage of brine and oil-based drilling mud. There were approximately 58 mobile storage tanks at the facility and each holds approximately 20,000 gallons.
Lupo, who owns Hardrock, directed employee Goff to empty some of the waste liquid stored at the facility into a nearby wastewater drain on or about October 1, 2012, according to the information.
Lupo directed Goff to conduct this activity only after no one else was at the facility and only after dark, according to the information.
Goff, at the direction of Lupo, emptied some of the lighter phase of the waste liquid being stored at the facility into the nearby stormwater drain using a hose on numerous occasions over the next two months, according to the information.
The last time Goff emptied some of the lighter phase of the waste liquid being stored at the facility into the drain was on or about November 12, 2012. In total, Goff emptied tanks at the direction of Lupo on approximately nine different nights, according to the information.
“Those who make it their business to harvest from under Ohio its great natural resources, have a responsibility to the men, women and children who drink its water, live on its land and breathe its air. And they have a duty to follow the law,” Dettelbach said. “This defendant broke the law and must be held accountable.”
“Mark Goff is another individual who carried out orders to release contaminated brine into Ohio’s waterways. It is crucial to the safety of our communities that everyone involved in this heinous crime be held accountable for their actions,” DeWine said.
“This incident is one of a small percentage of egregious environmental violations we see at Ohio EPA that must be prosecuted criminally,” Ohio EPA Director Craig Butler said. “This general disregard for the law will not be tolerated in Ohio and we will work with our partners at the local, state and federal agencies to make sure the responsible parties are held accountable. We especially appreciate the Federal Department of Justice quickly assisting Ohio in this case and applying its more stringent laws regarding Clean Water Act violations. ”
“Knowingly discharging toxic waste byproducts from drilling operations that ultimately flow into rivers has serious consequences for natural resources and local communities,” said Randall Ashe, Special Agent in Charge of EPA’s criminal enforcement program in Ohio. “Actions like these threaten to turn America’s waterways into chemical dumping grounds. Today’s charge should help protect the Ohio River watershed by deterring other would-be violators.”
This case is being prosecuted by Special Assistant U.S. Attorney Brad Beeson following an investigation by the Ohio EPA, Ohio Department of Natural Resources, U.S. EPA, the Ohio Bureau of Criminal Investigation, the Youngstown Department of Public Works and the Youngstown Fire Department.
The statutory maximum for violating the Clean Water Act for individuals is three years in prison, one year of supervised release and a fine of $50,000 per day of violation or $250,000, whichever is larger.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record (if any), the defendant’s role in the offenses and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.