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Wednesday 5 February 2014
St. Louis Man Sentenced in Federal Court for Cyber-Attack on Koch Industries SudsidiaryRead the Press Release
James L. Santelle, United States Attorney for the Eastern District of Wisconsin, announced that on February 5, 2014, Christopher Michael Sudlik (age: 22) of St. Louis, Missouri, was sentenced by Chief United States District Judge William C. Griesbach.to 36 months’ probation, 60 hours of community service, and ordered to pay $110,932.71 in restitution.
Sudlik had previously pled guilty for his participation along with members of the on-line hacker group “Anonymous” in a distributed denial of service attack against the Angel Soft bathroom tissue website in February and March of 2011. Angel Soft is a subsidiary of Koch Industries, the intended target of the attack.
Sudlik and others utilized a “low orbit ion cannon” designed to flood the Angel Soft server with traffic with the intention of disrupting the website’s service. The Angel Soft server is located in Green Bay, Wisconsin. Koch Industries suffered several hundred-thousand dollars in loss as a result of the continuous attacks on several of its network servers over a three day span.
In sentencing the defendant, Judge Griesbach noted the “serious nature of the offense” and decried Sudlik’s “arrogance” for believing that his political beliefs were necessarily superior to those with whom he disagreed. The judge admonished the defendant for “crossing the line” from appropriate political speech to an illegal and costly cyber-attack.
The case was investigated by Special Agents from the Federal Bureau of Investigation in St. Louis. It was prosecuted by Assistant United States Attorney Daniel R. Humble of the Eastern District of Wisconsin.South Florida Resident Convicted in Connection with International Fraudulent Lottery SchemeRead the Press Release
A federal jury in Miami today convicted a South Florida resident for her role in an international fraudulent lottery scheme that targeted U.S. citizens, the Justice Department announced. Charmaine Anne King, 51, of Lauderdale Lakes, Fla. was convicted of one count of conspiracy, three counts of mail fraud and two counts of wire fraud. The case is part of the government’s crackdown on international fraudulent lottery schemes.A federal grand jury returned an indictment against King and a co-conspirator on Oct. 31, 2013, charging that King’s co-conspirators contacted individuals in the U.S. and falsely informed them that they had won more than a million dollars in a lottery. The evidence at trial showed that a co-conspirator sent letters to the victims from a purported sweepstakes company in the U.S. and included false and fraudulent cashier’s checks made out to the victims for thousands of dollars. These letters instructed victims to call “claims agents” who were actually co-conspirators, and when the victims called the purported claims agents, the agents informed the victims that they had to pay several thousand dollars in fees in order to collect their purported lottery winnings. The claims agents told the victims to deposit the cashier’s checks in the victims’ bank accounts in order to purportedly cover the money they had to pay. The co-conspirators instructed the victims on how to send and wire this money to King and others.
Evidence presented at trial showed that King kept a percentage of the money she received from victims and sent the rest of the money to a co-conspirator. King continued to participate in this scheme even after the U.S. Postal Inspection Service verbally informed her that she was participating in unlawful activity, and after she later signed a Cease and Desist Order requiring that she stop receiving money from victims of fraud. The Cease and Desist Order that King signed referenced a complaint detailing the activity that the U.S. Postal Inspection Service explained was unlawful.
As the evidence presented at trial showed, the cashier’s checks victims received from the fraudulent lottery had no value. The evidence demonstrated that after the victims sent money to King, the fraudulent cashier’s checks bounced. Victims never received any lottery winnings.
King faces a maximum sentence of 25 years in prison on each count of conviction, a fine and mandatory restitution. King’s sentencing has been scheduled for April 17, 2014.
Also, on Feb. 4, 2014, U.S. District Court Judge K. Michael Moore adopted a report and recommendation accepting the guilty plea of King’s co-defendant, Althea Peart. Peart had entered a change of plea to guilty on Jan. 9, 2014, to one count of conspiracy to commit mail and wire fraud. She is scheduled to be sentenced on March 20, 2014.
Stuart F. Delery, Assistant Attorney General for the Justice Department’s Civil Division, commended the investigative efforts of the U.S. Postal Inspection Service, Homeland Security Investigations and the U.S. Marshals Service. The case is being prosecuted by Assistant Director Jeffrey Steger and Trial Attorney Kathryn Drenning with the Department of Justice’s Civil Division, Consumer Protection Branch.
Consumers should report telemarketing fraud, including lottery fraud originating from Jamaica, to the Federal Trade Commission at 1-877-FTC-HELP (1-877-382-4357) or online at https://www.ftccomplaintassistant.gov .
Saint Albans Man Sentenced to Federal Prison for Distributing Heroin StampsRead the Press Release
CHARLESTON, W.Va. – A Saint Albans heroin dealer was sentenced to twenty one months in federal prison, U.S. Attorney Booth Goodwin announced. Leonard Lewis Hare, 39, of Saint Albans, WV, previously pleaded guilty in November of 2013 to distribution of heroin. On August 13, 2012, Hare sold eight (8) heroin “stamps” of approximately .06 grams each, to an informant while at his residence at the Carriage Hill Apartments in Saint Albans.
The Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney, Joshua Hanks handled the prosecution. The sentence was imposed by United States District Judge John T. Copenhaver, Jr.
Repeat Offender Sentenced for New Child Pornography ViolationRead the Press Release
CORPUS CHRISTI, Texas – Arthur Gregg Hutchins, 67, under supervised release for a previous conviction of possessing child pornography, has been ordered to prison again, announced United States Attorney Kenneth Magidson.
Hutchins was previously convicted in 2005 and released from prison in 2012. He was under supervised release when he pleaded guilty to one count of possession of child pornography on June 24, 2013.
Following a lengthy hearing yesterday, Senior U.S. District Judge Hayden Head considered Hutchins’ demonstrated recidivism and the need to protect the public and ordered him to federal prison for 188 months. The sentence will be served concurrently to a five-year-term of imprisonment ordered for the revocation of his supervised release in the 2005 case. He will also serve a new lifetime term of supervised release following his release during which he will have to comply with numerous conditions designed to restrict his access to children and the internet.
In handing down the sentence, the court noted that Hutchins presents a real and ongoing danger to the children of our community. The court considered the evidence seized in the case - the child pornography as well as written communications between Hutchins and other pedophiles. In those emails, Hutchins claimed to have himself been sexually assaulted, to have personally sexually assaulted children in the past and expressed a desire to sexually assault children in the future. Hutchins claimed that such writings were nothing more than fantasy. However, the Judge rebuffed that denial and stated that society was entitled to take him at his word that he is a person who has and is capable of sexually assaulting children. The court further noted that his almost immediate return to child pornography following his release from prison in June 2012 was a strong indication that he is likely to reoffend.
Hutchins came to the attention of law enforcement from a CyberTip received by the National Center for Missing and Exploited Children (NCMEC) regarding a person who had posted child pornography images online beginning in September 2012. The images were posted to a popular online photo sharing website by a person using an IP address linked to the Corpus Christi area.
The IP address was later traced to the wife of Hutchins. Under supervised release and forbidden to reside near a school, Hutchins did not reside with his wife. The investigation was able to exclude the wife due to her work schedule and conflicting times associated with the online postings of child pornography. An investigation into his online activities and financial transactions, led to his identification of the one responsible for the postings.
At the time of his plea, he admitted to possessing images of child pornography he acquired from the internet.
The investigation was conducted by the FBI and the Corpus Christi Police Department’s Internet Crimes Against Children Task Force (ICAC).
Assistant United States Attorney Lance Duke is prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Repeat Offender Sentenced for New Child Pornography ViolationRead the Press Release
CORPUS CHRISTI, Texas – Arthur Gregg Hutchins, 67, under supervised release for a previous conviction of possessing child pornography, has been ordered to prison again, announced United States Attorney Kenneth Magidson.
Hutchins was previously convicted in 2005 and released from prison in 2012. He was under supervised release when he pleaded guilty to one count of possession of child pornography on June 24, 2013.
Following a lengthy hearing yesterday, Senior U.S. District Judge Hayden Head considered Hutchins’ demonstrated recidivism and the need to protect the public and ordered him to federal prison for 188 months. The sentence will be served concurrently to a five-year-term of imprisonment ordered for the revocation of his supervised release in the 2005 case. He will also serve a new lifetime term of supervised release following his release during which he will have to comply with numerous conditions designed to restrict his access to children and the internet.
In handing down the sentence, the court noted that Hutchins presents a real and ongoing danger to the children of our community. The court considered the evidence seized in the case - the child pornography as well as written communications between Hutchins and other pedophiles. In those emails, Hutchins claimed to have himself been sexually assaulted, to have personally sexually assaulted children in the past and expressed a desire to sexually assault children in the future. Hutchins claimed that such writings were nothing more than fantasy. However, the Judge rebuffed that denial and stated that society was entitled to take him at his word that he is a person who has and is capable of sexually assaulting children. The court further noted that his almost immediate return to child pornography following his release from prison in June 2012 was a strong indication that he is likely to reoffend.
Hutchins came to the attention of law enforcement from a CyberTip received by the National Center for Missing and Exploited Children (NCMEC) regarding a person who had posted child pornography images online beginning in September 2012. The images were posted to a popular online photo sharing website by a person using an IP address linked to the Corpus Christi area.
The IP address was later traced to the wife of Hutchins. Under supervised release and forbidden to reside near a school, Hutchins did not reside with his wife. The investigation was able to exclude the wife due to her work schedule and conflicting times associated with the online postings of child pornography. An investigation into his online activities and financial transactions, led to his identification of the one responsible for the postings.
At the time of his plea, he admitted to possessing images of child pornography he acquired from the internet.
The investigation was conducted by the FBI and the Corpus Christi Police Department’s Internet Crimes Against Children Task Force (ICAC).
Assistant United States Attorney Lance Duke is prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Probationary Buffalo Police Officer Pleads Guilty <br /> to Drug ChargeRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that James Hamilton, Jr., 29, of Buffalo, N.Y., pleaded guilty to distribution of marijuana before U.S. District Judge William M. Skretny. The charge carries a maximum sentence of five years in prison, a $250,000 fine or both.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that on November 20, 2013, Hamilton, a probationary Buffalo Police Officer, sold a half pound of marijuana to a confidential source working with the Drug Enforcement Administration and the Erie County Sheriff’s Department. At the time of the sale, the defendant possessed his Buffalo Police issued .40 caliber Glock handgun.
Following the sale, the defendant was arrested and a search warrant was executed at his residence at 165 Floss Avenue in Buffalo. During the search, officers seized approximately 80 marijuana plants, three to four pounds of processed marijuana and a shotgun.
As a result, the defendant no longer works for the Buffalo Police Department.
Sentencing is scheduled for June 18, 2014 at 9:00 a.m. before Judge Skretny.
The plea is the culmination of an investigation by the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard, and the Drug Enforcement Administration, under the direction of Jamie J. Hunt, Acting Special Agent in Charge, New York Field Division.Pine Ridge Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, man convicted of Assault by Striking, Beating, and Wounding was sentenced on February 4, 2014, by U.S. Magistrate Judge Veronica L. Duffy.
Alexander Winter, age 27, was sentenced to 1 year in custody, 1 year of supervised release, and ordered to pay a $25 special assessment to the Federal Crime Victims Fund.
Winter was indicted for repeatedly punching a woman in the chest and face during an argument in March of 2013 at Pine Ridge. This assault resulted in contusions, bruises, a bloody nose, a black eye, and a nasal fracture to the victim.
This case was investigated by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Pine Ridge Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, man convicted of Assault by Striking, Beating, and Wounding was sentenced on February 4, 2014, by U.S. Magistrate Judge Veronica L. Duffy.
Alexander Winter, age 27, was sentenced to 1 year in custody, 1 year of supervised release, and ordered to pay a $25 special assessment to the Federal Crime Victims Fund.
Winter was indicted for repeatedly punching a woman in the chest and face during an argument in March of 2013 at Pine Ridge. This assault resulted in contusions, bruises, a bloody nose, a black eye, and a nasal fracture to the victim.
This case was investigated by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Eric Kelderman prosecuted the case.Winter was remanded to the custody of the U.S. Marshals Service.
Naples Man Pleads Guilty to Making False Statements to FbiRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Brandon Todd, 20, of Naples, N.Y., pleaded guilty before U.S. District Judge Frank P. Geraci, Jr., to making false statements to the Federal Bureau of Investigation. The charge carries a maximum penalty of five years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Jennifer M. Noto, who is handling the case, stated that the defendant called the FBI in April and early May 2013 claiming to have information about sex trafficking. Todd also claimed to be involved in sex trafficking and to have connections to a group involved in sex trafficking. Following the defendant’s calls, the FBI began an investigation into Todd’s claims. On July 10, 2013, the defendant made false statements to an FBI Special Agent that he had recruited approximately 49 girls for a sex trafficking ring and that he was a member of a gang. At the time, Todd knew that these statements were false. These false statements – concerning the nature of the defendant’s involvement in a sex trafficking ring and his affiliation with a gang - were material to the FBI’s investigation.
The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent In Charge Brian Boetig.
Sentencing is scheduled for May 15, 2014 at 3:30 p.m. before Judge Geraci.
Money Judgment of $1,376,670 Rendered Against Iowa Couple for Violations of the False Claims ActRead the Press Release
United States Attorney Brendan V. Johnson announced that on January 29, 2014, U.S. District Judge Charles B. Kornmann entered a civil judgment in favor of the United States in the amount of $1,376,670 against Howard “Jack” Aleff and Reena Slominski, a married couple from Knoxville, Iowa. Aleff and Slominski did business as L & J Wool & Fur, a South Dakota corporation. They illegally submitted 132 separate false claims to the U.S. Department of Agriculture (USDA), Farm Services Agency (FSA), in Iowa and South Dakota.
Over a period of six years, the couple presented bogus documents to the FSA, Commodity Credit Corporation, that appeared to be legitimate business transactions to support their requests for wool loan deficiency payments when in fact they owned no sheep. As a result, the United States paid them $303,890 to which they were not entitled.
The False Claims Act (31 U.S.C. § 3729) imposes liability on persons and companies who knowingly submit false claims to the government or causes another to submit a false claim to the government, or knowingly makes a false record or statement to get a false claim or benefit paid by the government. Persons who submit a false claim must pay to the United States a civil penalty of not less than $5,500 and not more than $11,000 for each false claim, plus three times the amount of damages which the government sustained.Previously, Aleff and Slominski pled guilty to the criminal charge of Conspiracy to Defraud the United States, and on September 13, 2012, they were sentenced to five years’ probation, fined $60,000, and ordered to pay restitution of $303,890 to the Commodity Credit Corporation.
The United States Attorney’s Office places a high priority on criminal and civil enforcement in cases involving all types of fraud committed against the government, and works with various law enforcement agencies to identify and investigate these matters. The investigation in this case was conducted by the USDA, Office of Inspector General (OIG). Assistant U.S. Attorneys Thomas Wright and Cheryl Schrempp DuPris prosecuted the criminal and civil cases respectively.
Martin Man Sentenced for Benefits FraudRead the Press Release
United States Attorney Brendan V. Johnson announced that a Martin, South Dakota, man convicted of Benefits Fraud was sentenced on February 3, 2014, by U.S. Magistrate Judge Veronica L. Duffy.
Walter York, age 34, was sentenced to one year of probation, and ordered to pay a $25 special assessment to the Federal Crime Victims Fund and restitution in the amount of $191.82.
York was indicted for making a purchase at Sam’s Club in Rapid City on July 10, 2011, with unlawfully purchased Supplemental Nutrition Assistance Program (SNAP) benefits.
This case was investigated by the Federal Bureau of Investigation and the South Dakota Department of Social Services. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Marshall County Drug Task Force Announces Expansion of Enforcement EffortsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistNew interdiction units will team with Task Force
WHEELING, WEST VIRGINIA – Officials from the Marshall County Drug Task Force announced the addition of a new tool that will be used to stop the flow of drugs throughout the region.
Sheriff Kevin Cecil, Moundsville Police Chief Tom Mitchell, Prosecuting Attorney Jeff Cramer, and U.S. Attorney William J. Ihlenfeld, II, made the announcement on Wednesday and also provided an update on the work of the task force during its first year of operation.
According to Sheriff Cecil, five interdiction teams with two officers per team have been formed to target the transportation and delivery of drugs into and through Marshall County. All major roadways in the county will be targeted in addition to neighborhoods that need extra patrols due to suspected drug activity. The new teams will also work to interdict illegal drugs at hotels and motels, and to conduct parcel and package interdiction. The teams will support the drug task force and will be positioned to act upon intelligence that the unit provides.
Sheriff Cecil has allocated multiple vehicles, a K-9 unit, a license plate reader, and overtime funding in support of the new interdiction initiative.
“I’m excited to add this tool to our arsenal so we can continue to put significant pressure on the drug dealers that attempt to operate in Marshall County,” said Sheriff Cecil. “By having interdiction officers on the road we’ll be able to react much more quickly to illegal drug activity, and seize illegal drugs before they make it to the streets of Moundsville, Glen Dale, Benwood, and other communities within the county.”
In addition to announcing the interdiction efforts, the task force board members discussed the early successes of the group. In 2013, investigations by the task force resulted in 64 people being arrested or indicted on a total of 277 felony charges in state and federal court. A total of $578,000 in assets have been seized and either have been forfeited or are in the process of being forfeited.
Over 1,000 dosage units of prescription pills were seized by the task force in 2013, including quantities of oxycodone, hydrocodone, oxymorphone, lorazepam, and hydromorphone. Agents also seized heroin, cocaine, marijuana, and synthetic drugs.
Last week the task force wrapped up the successful prosecution of cross-country prescription painkiller distribution ring. The acts in the conspiracy occurred over a period of three years and involved large quantities of pills being shipped from California to Moundsville via the U.S. Postal Service. The pills were then re-distributed in the Moundsville area by members of the conspiracy. Five people were convicted in federal court and each face up to twenty years in prison.
The Marshall County Drug Task Force includes officers and agents from the Sheriff’s Department, the Moundsville Police Department, and the U.S. Drug Enforcement Administration. It also receives support from the Office of National Drug Control Policy because of Marshall County’s designation as a High Intensity Drug Trafficking Area (HIDTA) in 2012. This federal HIDTA funding allows the task force to conduct more extensive investigations and to be more aggressive in its pursuit of mid and upper-level drug trafficking organizations.
“I’m proud to be a part of the task force and I’m very pleased with results it has produced in just twelve months,” said Chief Mitchell. “By putting all of our agencies together onto one unit we’re able to be much more effective in keeping Moundsville and the surrounding region a safer place for everyone.”
“We’ve never had more of a need for a drug task force than right now,” said Sheriff Cecil. “This unit is critical to keeping the pressure on those who try to profit from the sale of pills, powders, and other substances in the county.”
“I’m thrilled that the Marshall County Prosecuting Attorney’s Office is a part of this task force,” said Prosecutor Cramer. “The joint efforts of the member agencies have already proven to provide a great benefit to the citizens of Marshall County in combating the drug problem.”
Regular updates on the work of the Marshall County Task Force will be made by press releases from its member agencies as well as via the official Twitter feed of the United States Attorney’s Office, @NDWVnews.
Mannford Man Pleads Guilty to Theft or Bribery Concerning Programs Receiving Federal FundsRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that ROBERT DEWAYNE GIFFORD, age 62, of Mannford, Oklahoma, pled guilty to an Information in federal court today. The defendant is charged with THEFT OR BRIBERY CONCERNING PROGRAMS RECEIVING FEDERAL FUNDS, in violation of Title 18, United States Code, Section §666(a)(1)(B) and MONEY LAUNDERING, in violation of Title 18, United States Code, Section 1957.
The Information alleges that from on or about January 2010 and continuing through September 2010, ROBERT DEWAYNE GIFFORD and others known and unknown to the government, did accept or agree to accept anything of value of $5,000 or more to persons authorized to act on the behalf of the Choctaw Nation of Oklahoma (CNO) intending to influence and reward an agent, employee and officer of the CNO in connection with a transaction and series of transactions of the CNO.
The Information further alleges that during the period of time from on or about April 9, 2010 to on or about May 5, 2010, in the Eastern District of Oklahoma and elsewhere, the defendant and others known and unknown to the government did engage and attempt to engage in a monetary transaction by, through or to a financial institution, affecting interstate or foreign commerce, in criminally derived property of a value greater than $10,000, such property having been derived from a specified unlawful activity.
The charges are a result of a joint investigation by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigations Division.
The statutory range of punishment on each offense is ten years imprisonment and a fine of up to $250,000.00.
The Honorable Kimberly E. West, Magistrate Judge in the Eastern District of Oklahoma presided over the hearing. The defendant was released on bond pending sentencing.
First Assistant United States Attorney Doug Horn and Assistant United States Attorney Chris Wilson represented the United States.
Manhattan U.S. Attorney Announces Charges Against Owner of Bronx Clinic and 23 Other Individuals Involved in Illegal Distribution of More Than Five Million Oxycodone PillsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Bridget G. Brennan, the Special Narcotics Prosecutor for the City of New York (“SNP”), James J. Hunt, the Acting Special Agent-in-Charge of the New York Field Division of the U.S. Drug Enforcement Administration (“DEA”), and William Bratton, the Police Commissioner of the City of New York (“NYPD”), announced today the unsealing of an Indictment against 24 defendants in connection with a massive drug distribution ring that operated out of a purported medical clinic with multiple locations in the Bronx, New York, known as “Astramed,” and unlawfully distributed more than five million tablets of the prescription painkiller oxycodone over a three-year period. The participants in the distribution ring included doctors, clinic employees, and drug traffickers who oversaw crews of “patients” who they sent into the clinics in order to obtain medically unnecessary prescriptions. The prescriptions were then filled at pharmacies, and the resulting pills resold on the streets of New York and elsewhere.
Twenty-one defendants were arrested yesterday in connection with today’s charges. The defendants will be presented in Manhattan federal court before U.S. Magistrate Judge Gabriel W. Gorenstein later this afternoon. Related charges against one of the clinic doctors were also unsealed today by SNP. The defendant is expected to be arraigned later today in Manhattan Supreme Court before Judge Bruce Allen.
Manhattan U.S. Attorney Preet Bharara said: “The world of prescription drug trafficking is looking more and more like the world of old-school trafficking in narcotics like heroin, cocaine and crack. In this case, the drug spot was a clinic controlled by traffickers, often through intimidation and violence. The traffickers were supplied with prescriptions by corrupt doctors and clinic employees, dispensed to lower-level ‘pretend’ patients so that massive quantities of oxycodone could be distributed wherever the most money could be made, often in communities hundreds of miles away. This is poison by prescription, and the volume and money allegedly involved would make hardened illegal drug traffickers envious – over 31,000 medically unnecessary oxycodone prescriptions for 5.5 million tablets sold with a street value between $170 million and over half a billion dollars. Even legal drugs illegally obtained can be deadly, and more people have been dying from prescription drug abuse than heroin and cocaine combined. Unnecessary painkillers can simply end up being killers. This has to stop and we will do everything we can to stop it.”
Special Narcotics Prosecutor Bridget G. Brennan said: “These clinics have long been a source of community concern and complaints. Dr. Robert Terdiman is charged with selling prescriptions for highly addictive painkillers on a scale we have not seen before – flooding the black market with oxycodone carrying a street value of over $90 million. Not only is he charged with perpetuating a practice that did little to heal and much to harm, both he and The Clinic reaped huge profits. We would like to recognize the extraordinary commitment and dedication of all of the agencies that participated in this investigation.”
DEA Acting Special Agent in Charge James J. Hunt said, “Twenty two arrests, the dismantlement of the largest pill mill in the northeast and the ability for residents living near Southern Boulevard and Westchester Avenue in the Bronx to reclaim their neighborhood from drug dealers are the end results of unified police work by local, state and federal law enforcement in New York. I commend the diligent work of the numerous law enforcement agencies who participated in this investigation.”
NYPD Commissioner William Bratton said: “Instead of abiding by the Hippocratic Oath, these doctors scheduled pseudo physical exams for greed and self-profit. They fueled a criminal operation which distributed highly addictive prescription drugs in the Bronx community and surrounding areas. Thanks to the investigators and prosecutors in this case, Lowe and his crew will no longer traffic illegal drugs.”
According to the allegations contained in the Indictment and other documents unsealed today in Manhattan federal court:
Oxycodone is a highly addictive, prescription narcotic-strength opioid used to treat severe and chronic pain conditions. More than 13 million Americans abuse oxycodone, with the misuse of prescription painkillers such as oxycodone leading to as many as 500,000 annual emergency room visits. Oxycodone prescriptions have enormous cash value to street level drug dealers, who can fill the prescriptions at most pharmacies and resell the resulting pills at vastly inflated rates. Indeed, a single prescription for 180 30-milligram oxycodone pills has an average resale value in New York City of more than $6,000, and up to $18,000 in nearby states.
From approximately January 2011 until January 2014, a drug distribution ring centered at “Astramed,” a purported medical clinic with multiple locations in the Bronx, including a primary location on Southern Boulevard (the “Clinic”), unlawfully diverted and trafficked millions of oxycodone tablets, which netted participants in the distribution scheme hundreds of millions of dollars in proceeds.
Astramed was owned and operated by KEVIN LOWE, a medical doctor, who reaped millions of dollars by charging cash for the thousands of medically unnecessary prescriptions written by the clinic doctors (the “Doctors”). The Doctors were corrupt, Board-certified, state- licensed doctors who, in exchange for cash, were willing to write medically unnecessary prescriptions for large quantities of oxycodone. The Clinic typically charged $300 in the form of a money order for “doctor visits” that usually lasted just a minute or two, involved no actual physical examination, and consistently resulted in the issuance of a prescription for large doses of oxycodone, typically 180 30-milligram tablets, or a daily dosage of six 30-milligram tablets. Indeed, the Doctors, who worked directly for LOWE, were paid only for each prescription they wrote – rather than for each patient they saw – and they were paid nothing if they did not write a prescription.
Various employees of the Astramed clinics controlled access to the Doctors and created false documents in exchange for cash payments. To avoid detection by law enforcement, the Doctors sometimes asked the “patients” for medical documentation, such as MRIs, purporting to document injuries, or urine samples purporting to show that the “patient” was taking oxycodone. Fake MRIs and urine samples were sold by members of the conspiracy to Astramed’s “patients,” typically inside the Clinic or immediately outside its premises.
The Clinic itself bears little resemblance to a standard medical office. For example, on a daily basis during the time set forth in the Indictment, crowds of up to one hundred people gathered outside the Clinic, clamoring to see one of the doctors at the clinic and thereby get a prescription for oxycodone. The majority of these individuals had no medical need for oxycodone, or any legitimate medical record documenting an ailment for which oxycodone would be prescribed. Instead, most of these individuals were members of “crews” – that is, they were recruited and paid by high-level drug traffickers, oxycodone distributors (the “Crew Chiefs”), to pose as “patients” in order to receive medically unnecessary prescriptions from the Doctors. The Crew Chiefs then arranged for and oversaw the filling of the resulting prescription at various pharmacies and took possession of the oxycodone pills to be resold on the street. Crew Chiefs also paid the Clinic’s employees hundreds of dollars in cash at a time to get their Crew Members into the Clinic to see one of the Doctors. The Crew Chiefs maintained their joint control over the operations of the Clinic, in part, as a result of intimidation and the threat of violence.
In total, between approximately January 2011 and January 2014, Astramed Doctors issued approximately 31,500 medically unnecessary prescriptions for oxycodone, comprising nearly 5.5 million oxycodone tablets with a street value of up to $550 million. LOWE alone collected nearly $12 million in fees for “doctor visits” during this time period. Based on the street market value of the pills distributed, the participants in the distribution ring together made hundreds of millions of dollars as a result of the clinic fees charged and the proceeds obtained from the resale of the illegally obtained oxycodone.
All of the defendants are charged with one count of conspiracy to distribute and possess with intent to distribute oxycodone, which carries a maximum sentence of 20 years in prison.
A chart containing each defendant’s age and residence information is attached. The case is assigned to U.S. District Judge Lorna G. Schofield.
Mr. Bharara thanked the DEA and the NYPD for their work in the 15-month investigation, which he noted is ongoing. Mr. Bharara also thanked, the Office of the Special Narcotics Prosecutor for the City of New York, the Town of Orangetown Police Department, the Westchester County Police Department, the United States Department of Health and Human Services, the United States Marshals Service, the New York State Health Department’s Bureau of Narcotic Enforcement, the Office of the Medicaid Inspector General, New York City's Human Resource Administration, the New York State Attorney General’s Office Medicaid Fraud Control Unit, Beacon New York Police Department, the Internal Revenue Service-Criminal Investigation and the El Dorado Task Force for their assistance.
The case is being prosecuted by the Office’s Narcotics Unit. Assistant U.S. Attorneys Edward B. Diskant and Tatiana R. Martins are in charge of the prosecution. Assistant U.S. Attorney Micah Smith of the Office’s Asset Forfeiture Unit is responsible for the forfeiture of assets.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Kevin Lowe et al. Indictment
U.S. v. Kevin Lowe et al. Detention Memo
U.S. v. Kevin Lowe et al Defendant Ages and ResidencesManhattan U.S. Attorney Announces Arrests of Five Defendants for Conspiring to Defraud Consumers Through the Sale of Counterfeit Luxury GoodsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Philip R. Bartlett, the Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), today announced the unsealing of an Indictment in Manhattan federal court charging JOSEPH MOSSERI, ALBERT MOSSERI, ODED HAKIM, a/k/a “Eddie Hakim,” ELLIOT SHASHO, and ANDREW LI, for their alleged participation in a scheme that victimized hundreds of consumers and numerous credit card processers through the marketing and sale of counterfeit luxury handbags over the Internet. JOSEPH MOSSERI, HAKIM, SHASHO, and LI were arrested today. ALBERT MOSSERI also surrendered today to USPIS. JOSEPH MOSSERI will be presented in Manhattan federal court this afternoon before United States Magistrate Judge Gabriel W. Gorenstein, and the remaining defendants will be presented tomorrow.
U.S. Attorney Preet Bharara said: “I would like to thank our partners, the U.S. Postal Inspection Service, Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Customs and Border Protection, and the New York State Department of Taxation and Finance, for their outstanding investigative efforts and assistance in bringing this alleged counterfeiting scheme to light.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “When criminals counterfeit goods they harm the economy and legitimate businesses that pay their fair share in taxes and employ American citizens. It’s the same as identity theft, but only from a brand. Postal Inspectors have little tolerance for this type of theft and will aggressively investigate and bring to justice anyone who defrauds American consumers.”
According to the allegations in the Indictment unsealed today in Manhattan federal court:
The defendants and others controlled a series of websites that advertised and sold luxury fashion and other name-brand items – primarily handbags – at prices of up to $3,000. The websites advertised that the goods offered for sale were authentic and that they were offered at a discount because of manufacturing defects that were, according to one of the websites, “infrequently noticeable to the consumer.” In fact, however, the defendants either never shipped goods to consumers who ordered them or shipped goods that were verifiably counterfeit.
In order to prevent the proceeds of their scheme from being eroded by credit card chargebacks initiated by deceived customers, the defendants also defrauded the credit card processors for the websites by misrepresenting the reasons for disputed charges and obstructing efforts by credit card processors to recover disputed funds. The losses attributable to such efforts exceeded, in some cases, hundreds of thousands of dollars.
JOSEPH MOSSERI, ALBERT MOSSERI, HAKIM, and SHASHO directed the scheme and managed its finances. LI supplied the counterfeit luxury goods that were sold on the websites.
JOSEPH MOSSERI, 43; ALBERT MOSSERI, 34; HAKIM, 46; SHASHO, 41; and LI, 34, all of Brooklyn, New York, are each charged with one count of conspiracy to commit wire fraud, one count of substantive wire fraud, and one count of trademark counterfeiting. Each of the fraud counts carries a maximum sentence of 20 years in prison. The trademark counterfeiting count carries a maximum sentence of 10 years in prison. U.S. District Judge Alvin K. Hellerstein has been assigned to the case.
Mr. Bharara praised the outstanding investigative work of the Postal Inspection Service. He also thanked U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Customs and Border Protection, and the New York State Department of Taxation and Finance for their assistance.
The prosecution is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Scott A. Hartman is in charge of the prosecution.
The charges contained in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Joseph Mosseri, et al. Indictment
Kansas Man Sentenced to over 2 Years' Imprisonment for Stealing over $190,000 Worth of Scientific CalculatorsRead the Press Release
A man who, along with his brother, stole scientific calculators from Wal-Mart stores in multiple states and shipped the calculators to New York City, was sentenced on February 4, 2014, in federal court in Cedar Rapids to thirty months in federal prison.
Jacob Nelson, 31, from Wichita, Kansas, received the prison term after a November 19, 2013, guilty plea to one count of conspiracy to transport stolen goods in interstate commerce.
At the November 19, 2013 plea hearing, Nelson admitted to agreeing with others to transport over $5,000 in stolen scientific calculators. Nelson further admitted that on August 13, 2013, he and a co-conspirator drove from Wisconsin into Iowa in possession of over 200 stolen scientific calculators valued at more than $26,000. Nelson also admitted that on August 13, 2013, he and a co-conspirator stole fourteen scientific calculators valued at $1,295 from the Wal-Mart in Maquoketa, Iowa. Nelson and his co-conspirator were arrested driving away from the Wal-Mart. Police officers then searched Nelson’s car and found hundreds of stolen calculators and two loaded handguns.
Nelson was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Nelson was sentenced to thirty months’ imprisonment. A special assessment of $100 was imposed, and he was ordered to make $163,974.96 in restitution to Wal-Mart. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Nelson’s brother, Caleb Nelson, 29, also from Wichita, Kansas, previously pled guilty on January 21, 2014 for his role in the conspiracy to transport stolen calculators. Caleb Nelson’s sentencing before United States District Court Chief Judge Reade will be set after a presentence report is prepared.
The cases are being prosecuted by Assistant United States Attorney Anthony Morfitt and were investigated by the Federal Bureau of Investigation, the Iowa Division of Criminal Investigation, and the Maquoketa Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/. Jacob Nelson’s case file number is 13-CR-1021. Caleb Nelson’s case file number is 14-CR-1001.
International Narcotics Trafficker Pleads Guilty in Manhattan Federal Court to the Manufacture, Shipment, and Importation of Tons of Cocaine into the United States and Other CountriesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and James J. Hunt, Acting Special Agent-in-Charge of the New York Field Division of the U.S. Drug Enforcement Administration, announced that YESID RIOS SUAREZ pled guilty yesterday in Manhattan federal court in connection with his role in overseeing the manufacture of tens of thousands of kilograms of cocaine in clandestine laboratories in Colombia, and the distribution and importation of tons of cocaine to the United States and other countries. RIOS SUAREZ, a citizen of Colombia, who was originally charged in September 2011, pled guilty yesterday before U.S. District Judge Katherine B. Forrest.
Manhattan U.S. Attorney Preet Bharara said: “Yesid Rios Suarez has admitted his role in the manufacture, distribution, and importation into the U.S. of tons of Colombian cocaine. As a man who stands convicted by guilty plea of spending two decades in the cocaine business, he now faces the prospect of a lengthy prison term.”
DEA Acting Special Agent-in-Charge James J. Hunt said: “This is a significant international drug trafficker responsible for facilitating addiction and heartache for individuals and communities across the country. Thanks to our vast network of law enforcement and sources throughout the world, DEA and our partners successfully infiltrated his prolific drug enterprise and Mr. Suarez will now face the consequences for his criminal life.”
According to the Indictment and statements made at related court proceedings:
Between in or about 1992 until his arrest in Venezuela in or about 2011, RIOS SUAREZ, along with his co-conspirators, oversaw the manufacture of tens of thousands of kilograms of cocaine in clandestine laboratories that they operated in the Arauca department of Colombia and other areas of Colombia near the Venezuelan border. During that time, RIOS SUAREZ and his co-conspirators also oversaw the distribution of tens of thousands of kilograms of cocaine from Colombia and Venezuela to the United States and other countries through various intermediate shipping points. Specifically, once the cocaine had been manufactured in laboratories in Colombia, RIOS SUAREZ worked with others to launch planes carrying multi-hundred-kilogram loads of cocaine from clandestine landing strips operated by RIOS SUAREZ and his co-conspirators in Colombia and Venezuela. All told, prior to his arrest in 2011, RIOS SUAREZ worked for nearly two decades overseeing critical steps in the manufacture, distribution, and importation into the United States and other countries of tons of cocaine.
RIOS SUAREZ, 46, of Colombia, pled guilty to one count of participating in a conspiracy to import cocaine into the United States, and to manufacture and distribute cocaine knowing and intending that it would be imported into the United States. RIOS SUAREZ faces a mandatory minimum sentence of ten years in prison and a maximum sentence of life in prison. RIOS SUAREZ is scheduled to be sentenced by Judge Forrest on June 6, 2014, at 10:00 a.m.
Mr. Bharara praised the outstanding efforts of the DEA’s New York Organized Crime Drug Enforcement Strike Force and the Bogota Country Office; the Government of the Republic of Colombia; and the U.S. Department of Justice’s Office of International Affairs.
The DEA’s New York Organized Crime Drug Enforcement Strike Force comprises agents and officers of the U. S. Drug Enforcement Administration, the New York City Police Department, Immigration and Customs Enforcement – Homeland Security Investigations (HSI), the New York State Police, the U. S. Internal Revenue Service Criminal Investigation Division, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Secret Service, the U.S. Marshal Service, New York National Guard, Office of Foreign Assets Control and the New York Department of Taxation and Finance. The Strike Force is partially funded by the New York/New Jersey High Intensity Drug Trafficking Area (HIDTA), which is a federally funded crime fighting initiative.
The prosecution of this case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Adam Fee and Sean S. Buckley are in charge of the prosecution.
U.S. v. Didier Gerson Rios Galindo and Yesid Rios Suarez Indictment
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office today announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Missoula on January 27, 2014 and entering pleas of Not Guilty were:
- STEVE HUMISTON, a 56-year-old resident of Tacoma, Washington appeared on charges of child exploitation enterprise and conspiracy to advertise child pornography. If convicted of the most serious offense charged in the indictment, HUMISTON faces life in prison, $250,000 in fines and lifetime supervised release. The investigation was a cooperative effort between the Federal Bureau of Investigation, Homeland Security Investigation, Montana Division of Criminal Investigations, Internet Crimes Against Children Task Force, Polson Police Department and Helena Police Department. PACER Case Reference: 13-30
- ROBERT LEE KRISE, a 65-year-old resident of Gaithersburg, Maryland appeared on charges of child exploitation enterprise and conspiracy to advertise child pornography. If convicted of the most serious offense charged in the indictment, KRISE faces life in prison, $250,000 in fines and lifetime supervised release. The investigation was a cooperative effort between the Federal Bureau of Investigation, Homeland Security Investigation, Montana Division of Criminal Investigations, Internet Crimes Against Children Task Force, Polson Police Department and Helena Police Department. PACER Case Reference: 13-30
- IAN JOSEPH NOSEK, a 42-year-old resident of Charlottesville, Washington appeared on charges of child exploitation enterprise and conspiracy to advertise child pornography. If convicted of the most serious offense charged in the indictment, NOSEK faces life in prison, $250,000 in fines and lifetime supervised release. The investigation was a cooperative effort between the Federal Bureau of Investigation, Homeland Security Investigation, Montana Division of Criminal Investigations, Internet Crimes Against Children Task Force, Polson Police Department and Helena Police Department. PACER Case Reference: 13-30
- JEFFREY WOOLLEY, a 53-year-old resident of Nicholasville, Kentucky appeared on charges of child exploitation enterprise and conspiracy to advertise child pornography. If convicted of the most serious offense charged in the indictment, WOOLLEY faces life in prison, $250,000 in fines and lifetime supervised release. The investigation was a cooperative effort between the Federal Bureau of Investigation, Homeland Security Investigation, Montana Division of Criminal Investigations, Internet Crimes Against Children Task Force, Polson Police Department and Helena Police Department. PACER Case Reference: 13-30
Appearing before U.S. Magistrate Judge Strong in Great Falls on January 30, 2014 and entering pleas of Not Guilty were:
- CHARLES CROSBY, a 43-year-old resident of Trenton, New Jersey appeared on charges of child exploitation enterprise and conspiracy to advertise child pornography. If convicted of the most serious offense charged in the indictment, CROSBY faces life in prison, $250,000 in fines and lifetime supervised release. The investigation was a cooperative effort between the Federal Bureau of Investigation, Homeland Security Investigation, Montana Division of Criminal Investigations, Internet Crimes Against Children Task Force, Polson Police Department and Helena Police Department. PACER Case Reference: 13-30
Appearing before U.S. Magistrate Judge Lynch in Missoula on February 4, 2014 and entering pleas of Not Guilty were:
- LLOYD NICKLE, 47-year-old resident of Minot, North Dakota appeared on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious offense charged in the indictment, NICKLE faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 13-23
Appearing before U.S. Magistrate Judge Strong in Great Falls on February 4, 2014 and entering pleas of Not Guilty were:
- JEFFREY JOE ROY IRONPIPE, a 21-year-old resident of Cut Bank, appeared on charges of sexual abuse of a minor. If convicted of the charge in the indictment, IRONPIPE faces 15 years in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-01
Appearing before U.S. Magistrate Judge Lynch in Missoula on February 5, 2014 and entering pleas of Not Guilty were:
- RONALD THOMAS WILLIAMS, a 36-year-old resident of Belgrade, appeared on charges of possession with intent to distribute dextroamphetamine/amphetamine and carrying a firearm during and in relation to a drug trafficking crime.. If convicted of the most serious charge in the indictment, WILLIAMS faces 20 years in prison, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco and Firearms. PACER Case Reference: 14-02
The indictment is merely a formal charging document. It is not proof of guilt and all persons indicted are presumed to be innocent of any crime until proof of guilt is established by trial or guilty plea.
The U.S. Attorney's Office is currently transitioning its media program to new media contacts. Resources and this transition may affect the amount of information the office can process and disclose in a timely manner. Therefore, if any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html.
To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Husband, Wife and Business Associate Charged with Health Care FraudRead the Press Release
HOUSTON – William Owuama, 55, Marla Owuama, 46, and Florida Holiday Island, 64, all of Houston, have been charged in an eight-count indictment alleging conspiracy to commit health care fraud, health care fraud and conspiracy to violate the federal anti-kickback statute, announced United States Attorney Kenneth Magidson.
The sealed indictment, returned Jan. 22, 2014, was unsealed this afternoon as all three defendants made their initial appearance before U.S. Magistrate Judge Frances Stacy at 2:00 p.m. At the hearing, Judge Stacy permitted Marla Owuama and Island be released upon posting bond. Upon surrendering his passport, William Owuama is also expected to be released upon posting bond.The indictment alleges William Owuama was the owner of Wilmar Healthcare Systems, his wife Marla was a registered nurse and Island transported patients to and from the clinic. According to allegations, they not only paid patients for visiting the clinic in violation of the anti-kickback statute, but billed Medicare and Medicaid for vestibular testing that was never performed. The indictment also alleges the clinic billed Medicare and Medicaid under the provider number of a local doctor while that doctor was incarcerated on unrelated charges. From January 2006 through October 2009, Medicare and Medicaid paid Wilmar more than $4 million based on the alleged fraudulent claims.
If convicted, all three defendants face up to five years in federal prison and a $250,000 fine for conspiring to commit healthcare fraud and violating the anti-kickback statute. The Owuamas also face up to 10 years in prison and a $250,000 fine for the substantive healthcare fraud charges.
The investigation leading to the charges in this case was conducted by the U.S. Department of Health and Human Services – Office of Inspector General and the Texas Attorney General’s Office Medicaid Fraud Control Unit. Special Assistant United States Attorney (SAUSA) Adrienne Frazior and AUSAs Andrew Leuchtmann and John Pearson are prosecuting the case.
A defendant is presumed innocent unless and until convicted through due process of law.Husband, Wife and Business Associate Charged with Health Care FraudRead the Press Release
HOUSTON – William Owuama, 55, Marla Owuama, 46, and Florida Holiday Island, 64, all of Houston, have been charged in an eight-count indictment alleging conspiracy to commit health care fraud, health care fraud and conspiracy to violate the federal anti-kickback statute, announced United States Attorney Kenneth Magidson.
The sealed indictment, returned Jan. 22, 2014, was unsealed this afternoon as all three defendants made their initial appearance before U.S. Magistrate Judge Frances Stacy at 2:00 p.m. At the hearing, Judge Stacy permitted Marla Owuama and Island be released upon posting bond. Upon surrendering his passport, William Owuama is also expected to be released upon posting bond.The indictment alleges William Owuama was the owner of Wilmar Healthcare Systems, his wife Marla was a registered nurse and Island transported patients to and from the clinic. According to allegations, they not only paid patients for visiting the clinic in violation of the anti-kickback statute, but billed Medicare and Medicaid for vestibular testing that was never performed. The indictment also alleges the clinic billed Medicare and Medicaid under the provider number of a local doctor while that doctor was incarcerated on unrelated charges. From January 2006 through October 2009, Medicare and Medicaid paid Wilmar more than $4 million based on the alleged fraudulent claims.
If convicted, all three defendants face up to five years in federal prison and a $250,000 fine for conspiring to commit healthcare fraud and violating the anti-kickback statute. The Owuamas also face up to 10 years in prison and a $250,000 fine for the substantive healthcare fraud charges.
The investigation leading to the charges in this case was conducted by the U.S. Department of Health and Human Services – Office of Inspector General and the Texas Attorney General’s Office Medicaid Fraud Control Unit. Special Assistant United States Attorney (SAUSA) Adrienne Frazior and AUSAs Andrew Leuchtmann and John Pearson are prosecuting the case.
A defendant is presumed innocent unless and until convicted through due process of law.Fourth Prison Sentence Handed Down in Gun Store Burglary CaseRead the Press Release
LAS VEGAS, Nevada – The last of four men convicted of burglarizing and stealing 21 firearms from a Henderson, Nev. gun store in August 2011, was sentenced today to 2½ years in prison and three years of supervised release, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
The case was investigated by ATF, with the assistance of the Las Vegas Metropolitan Police Department Gang Crimes Bureau, the Henderson Police Department, and the North Las Vegas Police Department. The case was screened through the Southern Nevada Project Safe Neighborhoods Task Force, a team of federal and local law enforcement officers and prosecutors who meet on a regular basis to discuss arrests involving guns and explosives. Project Safe Neighborhoods, also known as PSN, is a Department of Justice initiative and a nationwide commitment to reduce gun and gang crime in America. The prosecution was handled by Assistant United States Attorney Phillip N. Smith, Jr.
Demario F. Edwards, 24, of North Las Vegas, who pleaded guilty in October 2013 to possession of a stolen firearm and theft from a federal firearms licensee, was sentenced by U.S. District Judge Kent J. Dawson. Three co-defendants charged in the case, Victor Williams, 21, Daryl Galtney, 25, and Frank Freeman, 27, also pleaded guilty and were sentenced last year to 37 months, 63 months, and 100 months in prison, respectively.
“Many of these stolen firearms end up in the hands of criminals, who later commit crimes of violence,” said U.S. Attorney Bogden. “It is important to send a message to persons who steal firearms in burglaries and robberies that there are strong federal laws prohibiting this type of conduct and we will use them to keep the community safe.”
According to the court records, on Aug. 13, 2011, at approximately 3:30 a.m., one of the defendants drove a stolen Crown Victoria through the front entrance of a gun store in Henderson. Video surveillance shows a vehicle crashing through the window of the store and the defendants then entering the store. Once inside, the defendants broke a glass display case and began stealing multiple firearms. The defendants exited the store with 21 stolen handguns, and drove away in a separate vehicle, leaving the Crown Victoria inside the store. Beginning in September 2011, investigators started recovering firearms that were stolen in the burglary, some of which were recovered in the Las Vegas area during searches of various residences and following a robbery and a homicide. One of the guns, a .45 caliber handgun, was found in Edwards’ apartment in September 2011 when Nevada Probation and Parole Officers were conducting a compliance check. As a result, Edwards pleaded guilty in a separate federal case to felon in possession of a firearm and was sentenced to two years in prison which will run concurrent to today’s sentence.Founders of Bankrupt Real Estate Investment Firm Indicted in Wide-Ranging Scheme That Led to over $110 Million in LossesRead the Press Release
SANTA ANA, California – The owners of a now-defunct Southern California real estate investment firm were arrested today for allegedly perpetrating a Ponzi scheme that ended with the bankruptcy of their company and caused private investors and banks collectively to lose well over $110 million when the scheme collapsed.
Michael Stewart, 66, of Phoenix, and John Packard, 63, of Long Beach, California, were arrested this morning without incident by special agents with the FBI. The two men were named last month in a 16-count indictment returned by a federal grand jury. The two men each face 11 counts of mail fraud, three counts of bank fraud, and two counts of bankruptcy fraud.
Stewart and Packard owned and were the chief executives of Pacific Property Assets (PPA), which had offices in Long Beach and Irvine. The two men created PPA in 1999 to purchase, renovate, operate, and resell or refinance apartment complexes in Southern California and Arizona. Typically, PPA financed property acquisitions through mortgages, and it raised money from private investors to pay for renovations to the properties. After several years, PPA would usually refinance (or sometimes sell) each property.
Although PPA’s apartment rental operations were not profitable, it was able to raise cash through refinancing. As real estate values were generally increasing until approximately 2007, the properties were refinanced at ever-higher values, which enabled PPA to use the extra refinancing proceeds to not only pay off the original mortgages, but also to make payments on other loans, make payments to investors, to pay other business expenses, and to pay Stewart and Packard. In its 10 years of operations, PPA acquired more than 100 real estate properties and raised tens of millions of dollars from hundreds of investors. Stewart and Packard paid themselves annual salaries of $400,000 to $750,000, and each received millions of dollars in additional payments.
According to the indictment, by the end of 2007, when the real estate market began to decline and credit became scarce, PPA’s business model was no longer feasible. As the value of PPA’s properties was falling, PPA could no longer raise money by refinancing its properties with increasingly large mortgages. Furthermore, PPA faced large debt payments to its mortgage lenders and private investors, while it was continuing to lose money in its business operations.
To keep PPA afloat, from late 2007 through April 2009, Stewart and Packard allegedly continued to raise tens of millions of dollars from new investors. The defendants are accused of using these new funds to pay earlier investors, mortgage lenders, other company expenses, and Stewart and Packard themselves.
The indictment alleges that during the course of this continued fundraising effort, Stewart and Packard misrepresented PPA’s financial condition, claiming that its business model was still working, and that PPA was still financially stable and able to raise money through refinancing. Stewart and Packard allegedly concealed from investors the fact that the business had effectively become a Ponzi scheme, using new investors’ funds to pay back earlier investors. Moreover, following PPA’s final investor offering in 2009, virtually none of the investors’ funds were used to invest in new property purchases, as had been promised to investors; instead, the money was used to pay earlier investors and banks, to pay Stewart and Packard, and to pay PPA’s bankruptcy attorney.
The indictment also charges that PPA provided false financial information to at least one of its bank lenders – Vineyard Bank – in order to obtain loans and to maintain its line of credit with that bank. In particular, PPA allegedly substantially overstated its income (including its rental revenue) and assets (including its cash position), concealing the fact that its operations were unprofitable and it had limited liquidity.
PPA and a group of related companies filed for bankruptcy in June 2009. When the bankruptcy was filed, PPA owed 647 private investors more than $91 million, and it owed banks approximately $100 million. In the bankruptcy proceeding, the private investors received nothing, while banks lost an estimated $24 million.
The indictment further charges that Stewart and Packard committed fraud in connection with the bankruptcy process. After PPA had retained bankruptcy attorneys and shortly before it filed for bankruptcy, Stewart and Packard allegedly transferred $165,000 from PPA to Packard’s personal bank account, ensuring that those funds were not available to PPA’s creditors through the bankruptcy process. The indictment also charges that after PPA entered bankruptcy, Stewart and Packard arranged for $131,000 in funds due to PPA to be transferred to outside accounts and then to Stewart, Packard, and their personal attorneys, thus circumventing the bankruptcy process.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
Stewart is expected to make his initial court appearance later today in federal court in Phoenix. Packard is expected to be arraigned on the indictment this afternoon in United States District Court in Santa Ana.
If they are convicted of all 16 counts in the indictment, both Stewart and Packard each would face a statutory maximum sentence of 320 years in federal prison and millions of dollars in fines.
This investigation was conducted by the Federal Bureau of Investigation, which received assistance from the United States Trustee’s Office.
In May 2012, the Securities & Exchange Commission filed a complaint against Stewart and Packard, charging them with securities fraud and other violations of securities fraud (see: http://www.sec.gov/litigation/litreleases/2012/lr22365.htm). The SEC’s complaint alleged that, shortly after PPA entered bankruptcy, Stewart and Packard formed a new company, Apartments America, which was intended to replicate PPA’s business model. The complaint also alleged that Stewart and Packard made misleading statements to prospective investors about their track record and that of Apartments America, in an attempt to raise money for the new company. The SEC case has been partially settled, with Stewart and Packard agreeing to an injunction against committing further fraud and selling unregistered securities. The SEC is continuing to seek civil penalties.
Release No. 14-012
Former Tennessee Police Officer Sentenced for Assaulting an ArresteeRead the Press Release
Christopher Eugene Reynolds, 39, a former police officer of the Selmer, Tenn., Police Department (SPD), was sentenced today by U.S. District Judge J. Daniel Breen to serve one year and one day in prison following his conviction for violating the civil rights of an arrestee, the Justice Department announced. Reynolds pleaded guilty Nov. 6, 2013. Judge Breen also sentenced Reynolds to a period of two years supervised release and a $100 special assessment.
“The majority of law enforcement officers do not abuse their authority, however, the defendant has admitted that he wrongfully assaulted an arrestee,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Justice Department will continue to vigorously prosecute officers who use their official position to violate the civil rights of those in their custody.”
Reynolds admitted that on April 28, 2011, while using his authority as a SPD officer, he slammed a handcuffed arrestee to the floor of the McNairy Regional Hospital and struck him once in the face. According to information presented in court, Reynolds acknowledged that this assault was unreasonable, did not serve a legitimate law enforcement purpose and was not made by accident, mistake or inadvertence.
Reynolds was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by FBI Special Agent Christopher Miller with the assistance of the Tennessee Bureau of Investigation. The case was prosecuted by Trial Attorney Ryan J. Murguía for the Civil Rights Division and Special Litigation Counsel Gerard V. Hogan, with the assistance of Assistant U.S. Attorney Victor L. Ivy for the Western District of Tennessee.
Former El Paso County Sheriff Deputy Is Sentenced to 30 Months in Federal Prison as Part of Ponzi SchemeRead the Press Release
DENVER – David N. Hawkins, age 46, of Colorado Springs, Colorado, was sentenced yesterday by U.S. District Court Judge Robert E. Blackburn to serve 30 months in federal prison for wire fraud and money laundering, the United States Attorney’s Office, IRS – Criminal Investigation, and the Federal Bureau of Investigation announced. Following his prison sentence, Hawkins was ordered to spend 3 years on supervised release. Judge Blackburn also ordered Hawkins to pay $204,348.91 in restitution to the three remaining victims who have not been paid yet. He was also ordered to forfeit $17,000 which the government has agreed to apply towards victim restitution. Hawkins, who appeared at the sentencing hearing free on bond, was ordered to report to a U.S. Bureau of Prisons facility by noon on a designated date.
Hawkins was originally charged by Information on January 2, 2013. He waived his right to be charged by Indictment. He pled guilty on March 15, 2013 to one count of wire fraud and one count of money laundering. He was sentenced on February 4, 2014.
According to the stipulated facts contained in the plea agreement, as well as the information, Hawkins was employed as a deputy sheriff for the El Paso County, Colorado Sheriff's Office. In 2006 Hawkins attended training courses on how to trade profitably in foreign currencies and the exchanges of foreign currencies (hereinafter, the "FOREX" or "foreign currency exchange" markets). He also attempted to self-educate himself concerning trading in the FOREX markets.
From in or about November 2009, when Hawkins obtained his first FOREX trading client, and continuing through early December 2011, he obtained in excess of $1.2 million from his colleagues at the El Paso County Sheriff’s Office, other law enforcement officers in El Paso County, and their respective friends and relatives for the purpose of trading these funds in the FOREX markets on their behalf. He had approximately 73 investors, most investors using personal savings or retirement funds accumulated over the years as their source of the investment funds. Estimated losses to investors collectively total approximately $204,349.
Hawkins made several false representations to investors, including investors would be guaranteed a return of 10% per month (or 120% per annum). These representations were false and at no time were the investments ever profitable.
Over time Hawkins removed investor funds from FOREX trading accounts into bank accounts he controlled. He would then use these funds either for his own personal expenses, for personal investments unrelated to FOREX investments, or to fund payments to those of his investors who requested to withdraw their principal investments. According to government financial analysis, over the course of the scheme, in addition to making Ponzi scheme payments to investors, Hawkins diverted approximately $175,587 for his own uses and purposes. At one point Hawkins applied investor funds toward the purchase of two personal automobiles and in mid-2011, using in excess of at least $70,000 in investor funds to purchase franchises and to set up operations for two semi-professional indoor arena football teams, one located in Danville, Illinois, and the other in Mesquite, Texas. The teams never became operational, and Hawkins was unable to recoup these funds.
“In this case, a law enforcement officer defrauded his colleagues and the public,” said U.S. Attorney John Walsh. “The sentence imposed today justly reflects the severity of that misconduct and breach of trust.”
“The FBI is committed to investigating complex white-collar crimes, especially when someone misuses a position of trust to exploit innocent investors,” said FBI Denver Special Agent in Charge Thomas Ravenelle. “Hawkins abused his position, preyed on unknowing victims, and will now face the consequences of his actions.”
“All too often we hear of hard working Americans who lose their life savings to investment schemes; before you invest, protect yourself and seek out independent financial advice especially when a high rate of return is promised,” said Stephen Boyd, Special Agent in Charge for IRS Criminal Investigation, Denver Field Office.
This case was investigated by the Internal Revenue Service – Criminal Investigation (IRS-CI) and Federal Bureau of Investigation (FBI).
The case was prosecuted by Assistant U.S. Attorney Kenneth Harmon.
Former Commodities Trader Sentenced to 6½ Years in Prison for $5.3 Million Loss to Victims in $10 Million Fraud SchemeRead the Press Release
CHICAGO ― A former Chicago commodities trader was sentenced to 6½ years in federal prison for fraudulently obtaining more than $10 million and misappropriating a substantial portion of the money for his personal commodities futures trading, to make Ponzitype payments to investors, and to benefit himself and his family, resulting in a loss of $5.3 million. The defendant, BRADLEY SCHILLER, used some of the funds to pay for personal and family expenses, including a Range Rover, jewelry, condominium fees, housing rental fees for his mother-in-law, and country club fees.
Schiller, 37, of Chicago, was ordered today to pay $5.33 million in restitution by U.S. District Judge Elaine Bucklo, completing his sentencing that began last month. Schiller was ordered to begin serving his 78-month sentence in mid-April. He pleaded guilty to wire fraud last October.
According to court documents, Schiller represented himself as a successful commodities futures trader and raised more than $10 million between 2007 and 2012 from various victims, including The PrivateBank and Trust Company. Schiller lied to sources and prospective providers of funds about the profitability of his futures trading, the use of money he raised, the risks involved in providing him with money, his financial condition, and the status of the funds. He concealed the fraud scheme by making Ponzi-type payments to victims and by creating and distributing fraudulent documents, including phony commodities brokerage and bank account statements, false financial statements, and false tax forms. During the scheme, Schiller had trading losses of more than $1.5 million and needed to continually raise new funds to repay earlier providers of funds.
In obtaining a $2 million line of credit from The PrivateBank, Schiller falsely represented that he had a net worth of about $2.6 million and an overall balance in his commodities accounts in 2009 of approximately $5.5 million. Schiller knew, however, that he had a negative net worth at the time and his overall balance in his commodities accounts was nearly zero.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Commodity Futures Trading Commission provided assistance.
The government was represented by Assistant U.S. Attorney Edward Kohler.
Former Claims Representative for the Social Security Administration Indicted for Stealing Personal Identifying Information and Money from AgencyRead the Press Release
BIRMINGHAM -- A federal grand jury has indicted a former Social Security Administration claims representative for using his position to steal identifying information and benefits from Social Security beneficiaries, announced U.S. Attorney Joyce White Vance and Social Security Administration, Office of Inspector General, Special Agent in Charge Guy Fallen.
A 10-count indictment filed in U.S. District Court charges ALEX JAMANE FLOWERS, 33, of Fairfield, with wire fraud, theft of government property and aggravated identity theft in a scheme to obtain money and property fraudulently from the SSA.
Flowers was a claims representative in the SSA Birmingham District Office between May 2013 and July 2013 when the crimes occurred. The duties of a claims representative include, but are not limited to, obtaining, clarifying and verifying information which will be used to analyze claims and make decisions regarding entitlement to benefits. His job responsibilities required that he have access to SSA databases, including the National Computer Center, which houses records for Social Security beneficiaries.
According to the indictment, Flowers used his access to accounts and identifying information of beneficiaries, including Social Security numbers, to cause SSA to issue payments to claimants and beneficiaries, and directed each payment into accounts that he controlled.
The indictment charges Flowers with seven counts of wire fraud for each interstate communication he made to cause a payment to be issued. He faces one count of theft of government property for embezzling money from the SSA, and two counts of aggravated identity theft for unlawfully using someone else's Social Security number in relation to the wire fraud and government property theft.
The maximum penalty for wire fraud is 20 years in prison and a $250,000 fine. The maximum penalty for theft of government property is 10 years in prison and a $250,000 fine. Aggravated identity theft carries a minimum two-year prison term and a $250,000 fine.
SSA-OIG investigated the case, which the United States Attorney’s Office for the Northern District of Alabama is prosecuting.
The public is reminded that an indictment contains only charges. A defendant is presumed innocent and it will be the government's responsibility to prove guilt beyond a reasonable doubt at trial.Former Chief Technology Officer Pleads Guilty to Embezzling More Than $150,000 from Non-ProfitUsed Money for Laptop, Jewelry, Cable Bills, and Other Personal ExpensesRead the Press Release
WASHINGTON – Paul F. Kaufman, 55, of Stafford, Va., pled guilty today to a federal charge stemming from his embezzlement of more than $150,000 from his former employer, a non-profit based in Washington, D.C., U.S. Attorney Ronald C. Machen Jr. announced.
Kaufman pled guilty in the U.S. District Court for the District of Columbia to a charge of theft concerning a program receiving federal funds. He is to be sentenced May 8, 2014 by the Honorable Ketanji Brown Jackson. Under federal sentencing guidelines, Kaufman faces a potential prison term of up to 30 months in prison and financial penalties. As part of his plea agreement, Kaufman has agreed to pay restitution and a forfeiture money judgment.
According to the government’s evidence, Kaufman oversaw and managed the technology department for a non-profit identified in court documents as “Non-Profit A,” an organization that received federal money. Kaufman was authorized to solicit and approve work from outside vendors and he had the authority to direct the accounting department to pay them. He also had the authority to make business-related charges on certain corporate credit cards.
Without the knowledge of “Non-Profit A,” Kaufman formed two companies. He then submitted invoices from these companies to the non-profit and authorized payments. All told, Kaufman generated $110,925 from this scheme between January 2004 and March 2012.
In addition, the government’s evidence showed, Kaufman embezzled at least $46,590 from the non-profit by using its corporate credit cards and accounting department to pay a variety of personal expenses. Among other things, the unauthorized personal charges included expenses for Kaufman’s home cable and Internet service, food, coffee, gas, parking, music downloads, and a personal laptop computer. At one point, in April 2012, a non-profit employee discovered that Kaufman had used a corporate credit card to charge about $288 at a jewelry store. When asked about the charge, Kaufman produced an altered receipt and falsely claimed that the invoice was for repairs to an employee’s iPhone.
Kaufman was terminated by the non-profit on May 4, 2012. Two days later, he sent an e-mail to the non-profit’s president and chief executive officer, apologizing for his actions and asking that he be allowed to reimburse the organization for the money that he embezzled.
The amount of restitution and forfeiture will be set by the Court. Kaufman contends that the total loss should be offset by the fair market value of work that he purportedly performed, and that the total he owes should be between $70,001 and $157,516.
In announcing the plea, U.S. Attorney Machen commended the work of the Metropolitan Police Department (MPD), which investigated 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. Attorney Catherine K. Connelly, who is assisting with forfeiture issues. Finally, he commended Assistant U.S. Attorney Ephraim (Fry) Wernick, who is prosecuting the case.
14-033Former Chief Technology Officer Pleads GuiltyRead the Press Release
To Embezzling More Than $150,000 From Non-Profit
Used Money For Laptop, Jewelry, Cable Bills, and Other Personal ExpensesWASHINGTON – Paul F. Kaufman, 55, of Stafford, Va., pled guilty today to a federal charge stemming from his embezzlement of more than $150,000 from his former employer, a non-profit based in Washington, D.C., U.S. Attorney Ronald C. Machen Jr. announced.
Kaufman pled guilty in the U.S. District Court for the District of Columbia to a charge of theft concerning a program receiving federal funds. He is to be sentenced May 8, 2014 by the Honorable Ketanji Brown Jackson. Under federal sentencing guidelines, Kaufman faces a potential prison term of up to 30 months in prison and financial penalties. As part of his plea agreement, Kaufman has agreed to pay restitution and a forfeiture money judgment.
According to the government’s evidence, Kaufman oversaw and managed the technology department for a non-profit identified in court documents as “Non-Profit A,” an organization that received federal money. Kaufman was authorized to solicit and approve work from outside vendors and he had the authority to direct the accounting department to pay them. He also had the authority to make business-related charges on certain corporate credit cards.
Without the knowledge of “Non-Profit A,” Kaufman formed two companies. He then submitted invoices from these companies to the non-profit and authorized payments. All told, Kaufman generated $110,925 from this scheme between January 2004 and March 2012.
In addition, the government’s evidence showed, Kaufman embezzled at least $46,590 from the non-profit by using its corporate credit cards and accounting department to pay a variety of personal expenses. Among other things, the unauthorized personal charges included expenses for Kaufman’s home cable and Internet service, food, coffee, gas, parking, music downloads, and a personal laptop computer. At one point, in April 2012, a non-profit employee discovered that Kaufman had used a corporate credit card to charge about $288 at a jewelry store. When asked about the charge, Kaufman produced an altered receipt and falsely claimed that the invoice was for repairs to an employee’s iPhone.
Kaufman was terminated by the non-profit on May 4, 2012. Two days later, he sent an e-mail to the non-profit’s president and chief executive officer, apologizing for his actions and asking that he be allowed to reimburse the organization for the money that he embezzled.
The amount of restitution and forfeiture will be set by the Court. Kaufman contends that the total loss should be offset by the fair market value of work that he purportedly performed, and that the total he owes should be between $70,001 and $157,516.
In announcing the plea, U.S. Attorney Machen commended the work of the Metropolitan Police Department (MPD), which investigated 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. Attorney Catherine K. Connelly, who is assisting with forfeiture issues. Finally, he commended Assistant U.S. Attorney Ephraim (Fry) Wernick, who is prosecuting the case.
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Former Alabama KKK Leader Pleads Guilty to Cross Burning and Obstruction of JusticeRead the Press Release
Montgomery, Alabama - Steven Joshua Dinkle, 28, former Exalted Cyclops of the Ozark, Ala., chapter of the International Keystone Knights of the Ku Klux Klan (KKK), pleaded guilty in federal court yesterday to hate crime and obstruction of justice charges for his role in a 2009 cross burning, the Justice Department and the U.S. Attorney’s Office for the Middle District of Alabama announced.
According to documents filed with the court, Dinkle and one of his KKK recruits, Thomas Windell Smith, met at Dinkle’s home on May 8, 2009, and decided to burn a cross in a local African-American neighborhood.
Dinkle constructed a wooden cross about six feet tall, wrapped jeans and a towel around it to make it more flammable and loaded it into Smith’s truck. Around 8:00 p.m., Dinkle and Smith drove to an African-American neighborhood in Ozark. Dinkle unloaded the cross at the entrance to the community and dug a hole in the ground, then poured fuel on the cross, stood it up in the hole in view of several houses and set it on fire. Dinkle and Smith then drove away.
When questioned by local investigators, Dinkle falsely denied his involvement in the incident and stated that he had resigned his office and withdrawn from the KKK months before the cross burning. When approached by the FBI, Dinkle again lied and told a special agent that he had been at home with his girlfriend when the cross burning occurred. He further claimed that he did not know one of his superiors in the KKK at the time of the cross burning. During the plea hearing, Dinkle admitted that in burning the cross, he intended to scare and intimidate residents of the African-American community by threatening the use of force against them. He further admitted that he burned the cross because of the victims’ race and color and because they were occupying homes in that area.
Dinkle pleaded guilty to one count of conspiracy to violate housing rights, one count of criminal interference with the right to fair housing and two counts of obstruction of justice.
Dinkle faces a statutory maximum sentence of 10 years in prison and a $250,000 maximum fine on the conspiracy and criminal interference counts and a statutory maximum sentence of 25 years in prison and a $500,000 maximum fine for obstructing justice by making false statements to both local investigators and federal agents. Sentencing for Dinkle has not yet been scheduled.
Dinkle’s co-conspirator, Smith, pleaded guilty to one count of conspiracy to violate housing rights in December 2013. He is scheduled to be sentenced on March 11, 2014.
“By targeting the victims with a blazing cross in the night, one of the most threatening racial symbols in our nation’s history, the defendant attempted to terrorize a neighborhood because of the color of the residents’ skin,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “Prosecuting these racially motivated crimes will continue to be a priority for the Department of Justice.”
“As a society we hope to never see this type of hate,” said U.S. Attorney George L. Beck Jr. for the Middle District of Alabama. “We will continue to prosecute those that commit these horrible acts of hate to the fullest extent of the law.”
This case was investigated by the FBI, with the assistance of the Dale County Sheriff’s Office and the Ozark Police Department. The case is being prosecuted by Assistant U.S. Attorney Jerusha T. Adams of the Middle District of Alabama and Trial Attorney Chiraag Bains of the Civil Rights Division.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Five Individuals Charged with Immigration FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Wendy Bashnan, Special Agent in Charge, Miami Field Office, U.S. Department of State’s Diplomatic Security Service (DSS), Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the arrests of Goran Bjelovic, 44, of Aventura, Srdjan Jovcic, 50, of Wallington, New Jersey, and Hollywood, Florida, Branko Likic, 35, of Fort Lauderdale, Heather Bennett, 30, of Fort Lauderdale, and Ljiljana Aleksic, 54, of Orlando. All five defendants have been charged with various violations of fraud and misuse of visa, permits and other documents, in violation of 18 U.S.C. § 1546(a), marriage fraud, in violation of 8 U.S.C. § 1325(c), and/or conspiracy to commit such, in violation of 18 U.S.C. § 371.
Bjelovic, Likic and Bennett were all arrested this morning and made their initial appearances at 11:00 a.m. before U.S. Magistrate Judge Patrick Hunt in Fort Lauderdale. Jovcic, who was arrested in Wallington, New Jersey, and Aleksic, who was arrested in Orlando, will make their initial appearances in the respective districts.
According to the indictment that was unsealed this morning, Jovcic used and possessed a United States passport that had been procured through marriage fraud and the concealment of prior arrest and conviction history. Specifically, he is charged with using such passport to obtain a Florida driver license in 2009 and to enter the United States at the Miami International Airport on two separate occasions in 2011.
Bjelovic, Jovcic and Aleksic are charged with conspiracy to commit marriage fraud and fraud and misuse of visas, permits and other documents in connection with a sham marriage between Bjelovic and Aleksic. According to the indictment, Bjelovic and Aleksic were married in Orlando, Florida on November 16, 2010, shortly after Aleksic took the civics test to become a U.S. citizen. Aleksic then filed a Petition for Alien Relative on behalf of Bjelovic. Jovcic filed, on behalf of Bjelovic, an Affidavit of Support. Bjelovic is also charged with using and possessing a Form I-512, Authorization for Parole of an Alien, that had been procured through marriage fraud and the concealment of prior arrest and conviction history. Specifically, he is charged with using such Authorization to enter the United States at the Miami International Airport in 2011 and to obtain a Florida driver license in 2012.
Jovcic, Likic and Bennett are charged with a conspiracy to commit marriage fraud and fraud and misuse of visas, permits and other documents in connection with a fake sham marriage between Likic and Bennett. According to the indictment, in September 2010, Bennett traveled from South Carolina to Florida and she and Likic signed a marriage license in Broward County. Subsequently, in January 2011, May 2011 and March 2011, Bennett filed a Petition for Alien Relation on behalf of Likic.
If convicted of the conspiracies set forth in the indictment, the defendants face a statutory maximum term of five years in prison and a fine of $250,000. If convicted of the possession and use of a passport or other document charge set forth in the indictment, defendants Bjelovic and Jovcic face a statutory maximum term of 10 years in prison and a fine of $250,000.
Mr. Ferrer commended the investigative efforts of ICE-HSI, DSS, IRS-CI and FBI. Mr. Ferrer would also like to thank the Broward Sheriff’s Office, Drug Enforcement Administration, Department of Commerce, and the U.S Attorneys’ Offices for the District of New Jersey and the Middle District of Florida for their assistance. The case is being prosecuted by Assistant U.S. Attorney Cynthia Stone.
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.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla. — The results of the February 2014 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. The return of an indictment is a method of informing the defendant of alleged violations which must be proven in a court of law beyond a reasonable doubt to overcome the defendant’s presumption of innocence.
Francisco Cedeno-Esquivel. Alien in the United States After Deportation. Cedeno-Esquivel, 33, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in May 2011 near Hidalgo, Texas. If convicted, the maximum penalty would be twenty (20) years imprisonment and/or a fine up to $250,000. The U.S. Immigration and Customs Enforcement is the lead agency.
Jose Diaz-Hernandez. Alien in the United States After Deportation. Diaz-Hernandez, 42, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in October 2013 near Brownsville, Texas. If convicted, the maximum penalty would be twenty (20) years imprisonment and/or a fine up to $250,000. The U.S. Immigration and Customs Enforcement (ICE) is the lead agency.
Gelvin Garcia-Alvarado. Alien in the United States After Deportation. Garcia-Alvarado, 31, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in April 2008 near Alexandria, Louisiana. If convicted, the maximum penalty would be twenty (20) years imprisonment and/or a fine up to $250,000. The U.S. Immigration and Customs Enforcement (ICE) is the lead agency.
Cesario Hernandez-Aldaba. Alien in the United States After Deportation. Hernandez-Aldaba, 52, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in April 2012 near Del Rio, Texas. If convicted, the maximum penalty would be twenty (20) years imprisonment and/or a fine up to $250,000. The U.S. Immigration and Customs Enforcement (ICE) is the lead agency.
Hunter Lee Hines. Threats Against the President. Hines, 18, of Claremore, Okla., an inmate at Rogers County Jail, is charged with mailing a threatening letter on December 16, 2013 to United States President Barack Obama. If convicted, Hines would face not more than five (5) years imprisonment and/or a $250,000 fine. The United States Secret Service is the lead agency.
Jose Guadalupe Reyes-Banuelos. Alien in the United States After Deportation. Reyes-Banuelos, 40, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in February 2010 near San Ysidro, California. If convicted, the maximum penalty would be twenty (20) years imprisonment and/or a fine up to $250,000. The U.S. Immigration and Customs Enforcement (ICE) is the lead agency.
Dominique Amoia McDowell, II. Robbery in Indian Country (Count One) and Brandishing a Firearm During and in Relation to a Crime of Violence (Count Two). McDowell, 19, of Tulsa, is charged in a two count Indictment with brandishing a pistol while robbing an Indian female of $600 in Indian Country. If convicted, Robbery in Indian Country carries a maximum penalty of fifteen (15) years in prison and/or a fine of $250,000. Brandishing a firearm during and in relation to a crime of violence carries a statutory mandatory minimum penalty of seven (7) years imprisonment and/or a fine of $250,000. The Bureau of Indian Affairs-Office of Justice Services and the Osage Nation Police Department jointly investigated this matter. This matter is in Federal court because the alleged crime occurred in Indian Country within the Northern District of Oklahoma.
Michael Medlock. Bank Fraud and Money Laundering. Medlock, 57, of Tulsa, is charged with defrauding over $2,000,000 from ONB Bank & Trust Company between December 2007 and April 2011. As part of the scheme, Medlock, owner of Klutts Equipment, Inc., and Vincens Omnibus, LLC., diverted account receivable payments into personal accounts. If convicted, bank fraud carries a maximum penalty of thirty (30) years imprisonment and/or a fine of $1,000,000 on each count. The penalty for money laundering is not more than ten (10) years imprisonment and/or a fine of $250,000. The Federal Bureau of Investigation is the lead agency.
Jose De Jesus Salinas-Ramirez. Alien in the United States After Deportation. Salinas-Ramirez, 24, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in July 2012 near Calexico, California. If convicted, the maximum penalty would be twenty (20) years imprisonment and/or a fine up to $250,000. The U.S. Immigration and Customs Enforcement (ICE) is the lead agency.
Thomas Kevin Vaughn. Embezzlement of Mail Matter. Vaughn, 49, of Nowata, Oklahoma, a United States Postal Service employee, is charged with embezzling letters and mail matter on December 18, 2013. If convicted, Vaughn would face a maximum penalty of five (5) years imprisonment and/or a fine up to $250,000. The United States Postal Service-Office of the Inspector General is the lead agency.
Damien Dinchie Wardell. Sex Trafficking of a Child (Count One) and Sex Trafficking by Force, Fraud, and Coercion (Count Two). Wardell, 39, of Tulsa, is charged in a two count Indictment with crimes pertaining to the sex trafficking of a child by force, fraud, and coercion in November 2013. Sex Trafficking of a Child carries a statutory mandatory minimum penalty of ten (10) years imprisonment and/or a fine of $250,000. Sex Trafficking by Force, Fraud, and Coercion carries a statutory mandatory minimum of not less than fifteen (15) years imprisonment and/or a fine of $250,000. The Tulsa Police Department investigated this matter.
Terrance Cortez Whitfield. Sex Trafficking of a Child (Count One), Interstate Travel and Transportation in Aid of Racketeering Enterprises (Count Two), and Possession of Child Pornography (Count Three). Whitfield, 36, of Muskogee, is charged in a three count Indictment with sex trafficking of a child and possessing child pornography. If convicted, Sex Trafficking of a Child carries a statutory mandatory minimum penalty of ten (10) years in imprisonment and/or a fine of $250,000. Interstate Travel and Transportation in Aid of Racketeering Enterprises carries a penalty of up to five (5) years imprisonment and/or a fine of $250,000. Possession of Child Pornography carries a maximum penalty of ten (10) years imprisonment and/or a fine of $250,000. The Tulsa Police Department investigated this matter.
Fargo Man Pleads Guilty to Possession of Explicit Material Involving MinorsRead the Press Release
FARGO- U.S. Attorney Timothy Q. Purdon announced that on Feb. 5, 2014, Jared Tyler Allen, 27, Fargo, N.D., pleaded guilty to receipt of materials involving the sexual exploitation of minors and possession of materials involving the sexual exploitation of minors. U.S. District Judge Ralph R. Erickson is presiding over the case.
Allen came to the attention of law enforcement after an agent with the North Dakota Bureau of Criminal Investigation, assigned to the Internet Crimes Against Children Task Force, discovered a computer geographically located in North Dakota that was sharing child pornography in a peer-to-peer (P2P) network.
Homeland Security Investigators eventually traced the computer to Allen’s apartment located in South Fargo where task force officers seized two computers, including the computer that was previously seen with child pornography on the P2P network. A subsequent forensic examination of the two computers revealed more than 3,400 images and 175 videos depicting child pornography. Receipt of materials involving the sexual exploitation of minors carries a minimum-mandatory sentence of five years in prison and a maximum penalty of 20 years in prison. Possession of materials involving the sexual exploitation of minors carries a maximum penalty of 10 years in prison.
The case was investigated by Homeland Security Investigations, North Dakota Bureau of Criminal Investigation, and the Fargo Police Department.
Judge Erickson set sentencing for May 12, 2014, at 2:15 p.m. in U.S. District Court in Fargo, N.D.
Assistant U.S. Attorney Jennifer Klemetsrud Puhl is prosecuting the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Correctional Officer Sentenced in Baltimore Jail Racketeering ConspiracyRead the Press Release
Correctional Officer Smuggled Drugs and Contraband for BGF into Baltimore Correctional Facility and Had Sex With a BGF Inmate
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced correctional officer Jasmine Thornton, a/k/a J.T., age 26, of Glen Burnie, Maryland, to 32 months in prison followed by three years of supervised release for racketeering conspiracy arising from the smuggling of drugs and contraband for members of the Black Guerilla Family (BGF) gang inside the Baltimore City Detention Center (BCDC).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Acting Secretary Gregg Hershberger of the Maryland Department of Public Safety and Correctional Services; Baltimore Police Commissioner Anthony W. Batts; and Baltimore City State’s Attorney Gregg L. Bernstein.This case was developed as a result of the efforts of the Maryland Prison Task Force, formed in 2011 with the Maryland Department of Public Safety and Correctional Services, local, state and federal law enforcement agencies, and prosecutors. The Task Force has met regularly for over three years, generating recommendations to reform prison procedures and producing leads that have been pursued by state, local and federal criminal investigators. The investigation is continuing.
According to court documents, BGF has been the dominant gang at the BCDC, and in several connected facilities, including the Baltimore Central Booking Intake Center (BCBIC), the Women’s Detention Center, which houses many men, and in the Jail Industries Building.
According to her plea agreement, Thornton worked as a correctional officer at BCDC and BCBIC from 2007 to 2013. She had a personal and sexual relationship with one of the leaders of the BGF inmates at BCDC. Thornton smuggled large quantities of contraband, including marijuana, tobacco and prescription pills, into BCDC on behalf of the BGF leader and other BGF leaders, including Steve Loney and Tavon White. Thornton also warned inmates of impending searches by prison officers.
Thornton is the third correctional officer to be sentenced in the conspiracy. Correctional officers Taryn Kirkland, age 23, and Adrena Rice, age 26, both of Baltimore, previously pleaded guilty to their participation in the conspiracy and were sentenced in January 2014, each to 42 months in prison. Six other correctional officers have pleaded guilty to the racketeering conspiracy and await sentencing.
BGF leader Tavon White, age 36, and BGF commander Steven Loney, age 24, also pleaded guilty to the racketeering enterprise. Loney was sentenced on January 14, 2014 to nine years in prison. Tavon White awaits his sentencing.
Tyrone Thompson, a/k/a Henry, age 46, who admitted to supplying prescription pills that were smuggled into the jail, will be sentenced tomorrow at 11:30 a.m.
U.S. Attorney Rosenstein recognized the efforts of the other members of the Maryland Prison Task Force, including: Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Chief Mark A. Magaw of the Prince George’s County Police Department; United States Marshal Johnny Hughes; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Tom Carr, Director of the Washington-Baltimore High Intensity Drug Trafficking Area; and Dave Engel, Executive Director of the Maryland Coordination and Analysis Center.
United States Attorney Rod J. Rosenstein praised the FBI, Maryland Department of Public Safety and Correctional Services, Baltimore Police Department, and Maryland Prison Task Force, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Ayn B. Ducao, who are prosecuting this Organized Crime Drug Enforcement Task Force case.Citgo Sentenced to Pay More Than $2 Million for Environmental Crimes at Corpus Christi, Texas, RefineryRead the Press Release
CITGO Petroleum Corporation and CITGO Refining and Chemicals Company LLP (CITGO) were sentenced in U.S. District Court in Corpus Christi for violations of the Clean Air Act related to its illegal operation of two massive tanks at their Corpus Christi East Plant Refinery as oil water separators without the required emission control equipment. The failure to equip the tanks with emission controls exposed numerous residents in the Oak Park and Hillcrest communities to chemical emissions.
CITGO Petroleum Corporation was ordered to pay a fine of $500,000 on each of the two Clean Air Act counts of conviction. CITGO Refining and Chemicals Company LLP was ordered to pay a fine of $500,000 on each of the federal Clean Air Act counts of conviction plus $15,000 on each of the three misdemeanor Migratory Bird Treaty Act conviction, for a total of $45,000.
In handing down the sentence, U.S. District Judge John D. Rainey deferred his ruling on victim restitution and a remedial order and will issue a written order on those issues within the next 90 days. Approximately 80 victims appeared in the full court room.
In June 2007, a jury convicted CITGO for illegally operating the two tanks at their Corpus Christi East Plant Refinery between January 1994 and May 2003. The open top tanks were the source of emissions including benzene, a known carcinogen, and other volatile organic compounds, which affected persons in the surrounding communities. Texas state investigators testified at the trial that they traced emissions that caused burning eyes, sore throat, difficulty breathing and other acute health effects back to the tanks on several occasions. The emissions from the tanks were detected in Oak Park and Hillcrest in the form of strong gaseous type odors.
“CITGO’s illegal and careless operation of two massive tanks without emission controls exposed residents – the company’s neighbors – in the Oak Park and Hillcrest communities of Corpus Christi to unacceptable health impacts from toxic chemical emissions,” said Acting Assistant Attorney General Robert G. Dreher of the Justice Department’s Environment and Natural Resources Division. “I am grateful to the prosecutors, the victim specialists and the federal and state investigators for fighting tirelessly for justice for these residents who deserve to breathe clean air and to be protected under the nation’s Clean Air Act.”
“The stories from victims in this case are a powerful reminder of why we protect clean air for all Americans,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “Facilities that operate in our backyards, especially in overburdened communities, have a responsibility to follow the nation’s environmental laws. Today’s sentencing supports our commitment to reduce pollutants from the air we breathe, and to fight for those most vulnerable to pollution.”
The Department of Justice, The U.S. Attorney’s Office Victim Witness Section, the U.S. Environmental Protection Agency Criminal Investigation Division (EPA/CID), the Texas Commission on Environmental Quality Environmental Crimes Unit and the Federal Bureau of Investigation assisted by the Texas Environmental Crimes Task Force (which also includes agents from U.S. Fish and Wildlife Service and Texas Parks and Wildlife Department) held three days of community meetings in Corpus Christi, Texas, on Oct. 25-27, 2012, to identify area residents who suffered immediate negative health effects from emissions from the CITGO refinery in order to comply with an order by U.S. District Judge John D. Rainey to make members of the community aware of their potential victim rights, and followed similar meetings held in 2007. Individuals who suffered acute health effects from the emissions prepared victim impact statements for submission to the district court.
On Oct. 11-13, 2013, the same government agencies assisted approximately 90 of the identified victims who were permitted to address Judge Rainey as a part of the sentencing process, which occurred over a three week period. During the hearing, victims told Judge Rainey of the difficulty of living in Hillcrest and Oak Park during the time the tanks were being operated illegally. Residents spoke of the sore throats, difficulty breathing, burning eyes, skin rashes and damage to property caused by the chemical emissions that were coming from the tanks.Chataignier Man Pleads Guilty to Possessing Child PornographyRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that Ricky Johnson, 53, of Chataignier, La., pleaded guilty before U.S. District Judge Richard T. Haik to possession of child pornography.
According to evidence presented at the guilty plea, in early 2010, a computer Johnson used was found to be downloading child pornography from a file sharing network online. In September of 2010, Johnson’s computer and other electronic devices were searched, and images and videos of child pornography were found. Johnson has a prior conviction for molestation of a juvenile.
Johnson faces up to 20 years in prison, a $250,000 fine, and a lifetime of supervised release. The Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy is prosecuting the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be submitted anonymously.
Those concerned may also leave tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Lafayette FBI office number is (337) 233-2164.
California Man Sentenced for Assault by Striking, Beating and Wounding and Simple AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Los Angeles, California, man charged with Assault by Striking, Beating and Wounding and Simple Assault pled guilty and was sentenced on February 4, 2014, by U.S. Magistrate Judge Mark A. Moreno.
Francisco Hernandez, Jr., age 41, was sentenced to 2 years’ probation on each count, to be served concurrently, and $20 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on January 21, 2013, in Timber Lake, in Indian country, when Hernandez, who had been drinking alcohol that morning, assaulted his girlfriend by striking her on the head and body while she attempted to leave the house with their children.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Troy R. Morley.
Brownsville Man Sentenced on Federal Drug ChargesRead the Press Release
BROWNSVILLE, Texas - Jesus Mauricio Juarez Jr. aka Flaco 27, has been sentenced to federal prison for his involvement in a 1,000 pound marijuana load, announced United States Attorney Kenneth Magidson. He pleaded guilty in November 2013.
Today, Senior U.S. District Judge Hilda G. Tagle sentenced Juarez to 31 months in federal prison. In handing down the sentence, Ruben Gonzalez-Cavazos aka Mume, also pleaded guilty in relation to the conspiracy and was sentenced to 47 months in federal prison and assessed a $15,000 fine on Feb. 3, 2014. Co-defendant Francisco Javier Maya, 35, went to trial last week in Brownsville and was convicted on all counts. He will be sentenced on May 13, 2014. Adolfo Lozano-Luna aka Chefero, 35, and Alberto Martinez aka El Diablo, 50, also pleaded guilty and will be sentenced at a later date.
Evidence at Maya’s trial placed all five men in a conspiracy involving a 1,000 pound marijuana, which was forcibly hijacked from them by unknown individuals on Dec. 11, 2012. One month later, Juarez was injured after an improvised explosive device (IED) detonated at his residence in Brownsville. In sentencing Juarez today, Judge Tagle discussed the bombing incident and noted that at least he and his family still have their lives.
Evidence also linked Juarez, Gonzalez-Cavazos and Maya to other marijuana loads during the conspiracy. Maya’s role in the drug trafficking organization was to provide drivers for tractor trailers to drive marijuana loads to locations to include Houston and Taylor. Maya, Juarez and Gonzalez-Cavazos would share in the profits of each successful marijuana load.At the direction of Juarez, Maya provided bank account numbers associated with him and Gonzalez-Cavazos to Juarez in order to deposit drug profits. Juarez then made deposits stemming from narcotics proceeds from a successful marijuana load delivered to Taylor in November 2012. Evidence was presented at Maya’s trial that a $6,000 deposit was made into an account associated with Maya on Nov. 28, 2012, while another $6,500 was deposited into an account associated with Gonzalez-Cavazos on the same day.
The jury last week also heard that Maya was a follower of the Santeria religion. The jury saw photos of Maya’s residence in Mission, Texas, which depicted numerous images of what was considered to be altars showing glasses of alcohol, knives, a machete, kettles, feathers and substances that appeared to be blood. Testimony also included descriptions of two rituals involving the sacrifice of animals.
In December 2012, Maya had a Santeria priest, known as a “Padrino,” perform rituals with the organization to “bless” a 1,000 pound marijuana load that was destined for Houston. After meeting with the Padrino, Maya, Gonzalez-Cavazos and Juarez decided the marijuana load should remain in the Rio Grande Valley. The next day, a second ritual, attended by all five defendants, was performed and the 1,000 pounds of marijuana was to be transported to Houston. However, the marijuana was stolen from the group by unknown individuals that evening. After the theft and subsequent IED detonation, law enforcement was able to piece together the events and conspirators involved in this drug trafficking organization.
The case was investigated by the Drug Enforcement Administration, FBI, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Brownsville Police Department. The case was prosecuted by Assistant United States Attorneys Angel Castro and Jody Young.
Brownsville Man Sentenced on Federal Drug ChargesRead the Press Release
BROWNSVILLE, Texas - Jesus Mauricio Juarez Jr. aka Flaco 27, has been sentenced to federal prison for his involvement in a 1,000 pound marijuana load, announced United States Attorney Kenneth Magidson. He pleaded guilty in November 2013.
Today, Senior U.S. District Judge Hilda G. Tagle sentenced Juarez to 31 months in federal prison. In handing down the sentence, Ruben Gonzalez-Cavazos aka Mume, also pleaded guilty in relation to the conspiracy and was sentenced to 47 months in federal prison and assessed a $15,000 fine on Feb. 3, 2014. Co-defendant Francisco Javier Maya, 35, went to trial last week in Brownsville and was convicted on all counts. He will be sentenced on May 13, 2014. Adolfo Lozano-Luna aka Chefero, 35, and Alberto Martinez aka El Diablo, 50, also pleaded guilty and will be sentenced at a later date.
Evidence at Maya’s trial placed all five men in a conspiracy involving a 1,000 pound marijuana, which was forcibly hijacked from them by unknown individuals on Dec. 11, 2012. One month later, Juarez was injured after an improvised explosive device (IED) detonated at his residence in Brownsville. In sentencing Juarez today, Judge Tagle discussed the bombing incident and noted that at least he and his family still have their lives.
Evidence also linked Juarez, Gonzalez-Cavazos and Maya to other marijuana loads during the conspiracy. Maya’s role in the drug trafficking organization was to provide drivers for tractor trailers to drive marijuana loads to locations to include Houston and Taylor. Maya, Juarez and Gonzalez-Cavazos would share in the profits of each successful marijuana load.At the direction of Juarez, Maya provided bank account numbers associated with him and Gonzalez-Cavazos to Juarez in order to deposit drug profits. Juarez then made deposits stemming from narcotics proceeds from a successful marijuana load delivered to Taylor in November 2012. Evidence was presented at Maya’s trial that a $6,000 deposit was made into an account associated with Maya on Nov. 28, 2012, while another $6,500 was deposited into an account associated with Gonzalez-Cavazos on the same day.
The jury last week also heard that Maya was a follower of the Santeria religion. The jury saw photos of Maya’s residence in Mission, Texas, which depicted numerous images of what was considered to be altars showing glasses of alcohol, knives, a machete, kettles, feathers and substances that appeared to be blood. Testimony also included descriptions of two rituals involving the sacrifice of animals.
In December 2012, Maya had a Santeria priest, known as a “Padrino,” perform rituals with the organization to “bless” a 1,000 pound marijuana load that was destined for Houston. After meeting with the Padrino, Maya, Gonzalez-Cavazos and Juarez decided the marijuana load should remain in the Rio Grande Valley. The next day, a second ritual, attended by all five defendants, was performed and the 1,000 pounds of marijuana was to be transported to Houston. However, the marijuana was stolen from the group by unknown individuals that evening. After the theft and subsequent IED detonation, law enforcement was able to piece together the events and conspirators involved in this drug trafficking organization.
The case was investigated by the Drug Enforcement Administration, FBI, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Brownsville Police Department. The case was prosecuted by Assistant United States Attorneys Angel Castro and Jody Young.
Artesia Man Pleads Guilty to Federal Firearms and Methamphetamine Trafficking Charges Kimble Prosecuted as Part of “Worst of the Worst” Anti-Violence InitiativeRead the Press Release
ALBUQUERQUE – Bryan O’Keef Kimble, 29, of Artesia, N.M., pleaded guilty this afternoon in federal court in Las Cruces, N.M., to six counts of a seven-count indictment charging him with federal firearms and methamphetamine trafficking charges. The guilty plea was announced by Acting U.S. Attorney Steven C. Yarbrough, 3rd Judicial District Attorney Mark D’Antonio and Special Agent in Charge Bernard J. Zapor of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Acting U.S. Attorney Steven C. Yarbrough said that Kimble was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
“Combating violent firearms crimes and the criminal use of firearms is a focus of our enforcement efforts in New Mexico,” stated ATF Special Agent in Charge Bernard J. Zapor.
Kimble was transferred from state custody to federal custody in March 2013 to face federal charges in a criminal complaint alleging that law enforcement authorities seized firearms, methamphetamine and other drugs from Kimble on two separate occasions in Aug. and Sept. 2012. In Aug. 2013, Kimble was indicted and charged with two counts of being a felon in possession of a firearm and ammunition (Counts 1 and 4); two counts of carrying a firearm in relation to a drug trafficking crime (Counts 2 and 5); two counts of possession of methamphetamine with intent to distribute (Counts 3 and 7); and one count of possession of a firearm with an obliterated serial number (Count 6).
Court records reflect that Kimble was prohibited from possessing firearms or ammunition in 2012 because he previously had been convicted of the following felony offenses: possession of a controlled substance in the 3rd Judicial District Court for the State of New Mexico (Eddy County); and being a felon in possession of a firearm and possession of a controlled substance with intent to distribute in the U.S. District Court for the District of New Mexico.
According to the criminal complaint, on Aug. 12, 2012, the Doña Ana County Sheriff’s Office arrested Kimble in Las Cruces on local charges after a deputy found a loaded handgun and methamphetamine in Kimble’s possession. During a search of Kimble’s vehicle, deputies found another firearm, more methamphetamine, marijuana and heroin. On Sept. 14, 2012, the Las Cruces Police Department and U.S. Marshals Service arrested Kimble in Las Cruces on an outstanding state warrant. At the time of this second arrest, Kimble was in possession of methamphetamine, approximately 40 pills, and $4,725 in cash; a 9 mm pistol with an obliterated serial number was later found in Kimble’s vehicle.
During today’s proceedings, Kimble entered guilty pleas to all but Count 5 of the seven-count indictment. Kimble remains in federal custody pending his sentencing hearing, which has yet to be scheduled.
At sentencing, Kimble faces the following maximum penalties: ten years in prison for each of the two felon in possession charges (Counts 1 and 4); less than five years nor more than 40 years in prison on the first methamphetamine trafficking charge (Count 3) and up to 20 years in prison on the second methamphetamine trafficking charge (Count 7); a mandatory five years in prison for carrying a firearm in relation to a drug trafficking crime (Count 4) which must be served consecutive to the sentences imposed on the other charges; and up to five years for possession of a firearm with an obliterated serial number (Count 6).
Kimble is charged with state offenses arising out of the two incidents leading to his federal charges. The 3rd Judicial District Attorney’s Office is prosecuting those charges.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Dona Ana County Sheriff’s Office, the Las Cruces Police Department, the Las Cruces office of the U.S. Marshals Service and the 3rd Judicial District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
Arizonan Mark Karas Imprisoned for Distributing OxycodoneRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Mark Karas, 52, of Tucson, AZ, was sentenced today to 30 months of imprisonment following his guilty plea to a charge that he conspired to distribute oxycodone. U.S. District Judge William K. Sessions III also ordered that Karas serve three years of supervised release following completion of his prison term. Karas has been incarcerated since his arrest last April.
According to court records, on March 1, 2012, a federal grand jury in Burlington returned an indictment charging Karas and Mark Turner, 28, of Fairfax, with conspiring to distribute oxycodone. In the winter of 2012, Milton Police Officers made several controlled purchases of oxycodone from Turner. Local law enforcement officials and postal inspectors then executed search warrants at Turner's residence and on a piece of U.S. mail and seized drugs, a gun and money. Further investigation developed that Karas was mailing the oxycodone pills to Turner from Arizona and Turner was paying for the drugs by return mail.
Turner pled guilty to the charge in 2013 and was sentenced last fall to time served. Karas was not arrested until last spring, following a traffic stop in Missouri.
This case was investigated by the Milton Police Department and the U.S. Postal Inspection Service.
Karas is represented to Assistant Federal Public Defender Steven Barth. Turner was represented by Chris Davis. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Alabama Man Admits Attempted Murder of Witness, Mortgage Fraud Conspiracy and Money LaunderingRead the Press Release
CAMDEN, N.J. – An Alabama man admitted today to conspiring to defraud financial institutions and launder stolen funds as part of a $15 million mortgage fraud scam that used phony documents and “straw buyers” to make illegal profits on overbuilt condos, U.S. Attorney Paul J. Fishman announced.
Kinard Henson, 41, of Ventress, Ala., also admitted to the attempted murder of a straw buyer who was a witness to the mortgage fraud scheme.
Henson pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to a second superseding indictment charging him with one count of conspiracy to commit wire fraud, one count of conspiracy to commit money laundering, and one count of attempted murder of a witness in a federal case.
According to the documents filed in this case and statements made in court:
Henson was among 11 defendants charged in July 2012 with conspiracy to commit wire fraud and conspiracy to commit money laundering. Two additional defendants, Nicholas Tarsia, 65, of Totowa, N.J., and Mashon Onque, 43, of East Orange, N.J., were charged in November 2013 with conspiracy to commit wire fraud. Tarsia was also charged with one count of conspiracy to commit money laundering.
Henson’s conspirators, including Timothy Ricks, 46, of East Orange, N.J., who pleaded guilty before Judge Simandle on Feb. 27, 2013, located oceanfront condominiums overbuilt by financially distressed developers and negotiated a buyout price with the sellers. They then caused the sales prices for the properties – located in Wildwood Crest and North Wildwood, N.J., other locations in New Jersey and in Naples, Fla. – to be much higher than the buyout price to ensure large proceeds. Other defendants helped conceal the true sales prices of certain properties through inflated sales contracts and sale and finder’s fee agreements.
Henson recruited one of the straw buyers to purchase certain properties at the inflated rates. The straw buyers had good credit scores but lacked the financial resources to qualify for mortgage loans. The conspirators created false documents, such as fake W-2 forms, pay stubs, bank statements and investment statements, to make the straw buyers appear more creditworthy than they actually were in order to induce the lenders to make the loans.
Henson and his conspirators caused fraudulent mortgage loan applications in the name of the straw buyers, including the supporting documents, to be submitted to mortgage brokers that the brokers knew were false. Once the loans were approved and the mortgage lenders sent the loan proceeds in connection with real estate closings, Henson received a portion of the proceeds from his conspirators, after his conspirators had funds wired or checks deposited into various accounts they controlled. Henson’s conspirators also distributed a portion of the proceeds to other members of the conspiracy for their respective roles.
Henson learned of a subpoena seeking documents in connection with a straw buyer’s purchases of real estate properties shortly after it was served by federal law enforcement agents on a mortgage brokerage firm. Henson, who had recruited the straw buyer, contacted another individual to kill the straw buyer. They then lured the straw buyer to a wooded area in Mobile, Ala. At Henson’s direction and using Henson’s firearm, the other individual shot the straw buyer multiple times.
The wire fraud conspiracy charge is punishable by a maximum potential penalty of 30 years in prison and a $1 million fine. The money laundering conspiracy charge is punishable by a maximum potential penalty of 10 years in prison and a $250,000 fine. The attempted murder of a witness charge carries a maximum potential penalty of 30 years in prison and a $250,000 fine. Henson’s is scheduled to be sentenced July 11, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen in Newark, for their roles in the ongoing investigation.
The government is represented by Assistant U.S. Attorneys Matthew T. Smith and Jacqueline M. Carle of the U.S. Attorney’s Office Criminal Division in Camden.
14-041Defense counsel: Stanley King Esq., Woodbury, N.J.
Henson, Kinard Second Superseding Indictment
Abilene Dentist Sentenced to 18 Months in Federal Prison and Ordered to Pay Nearly $58,000 in Restitution in Medicaid Fraud SchemeRead the Press Release
Defendant Worked as a Pediatric Dental Provider at Kool Smiles
and Personally Benefitted From SchemeABILENE, Texas — Dr. Tuan Truong, aka “Terry Truong,” of Abilene, a dentist who practiced pediatric dentistry at Kool Smiles in Abilene, was sentenced this afternoon, by U.S. District Judge Jorge A. Solis, to 18 months in federal prison. Truong pleaded guilty in August 2013 to an Information charging one count of making a false statement in connection with a health care matter. Truong was also ordered to pay $57,969 in restitution to Kool Smiles. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, in summer 2008, Truong began working for Kool Smiles, which paid him a base salary and offered opportunities for bonuses based on additional procedures he performed in excess of daily targets set by Kool Smiles management. Dentists were required to use professional judgment in the treatment and management of patient care.
Beginning on June 30, 2008, and continuing to July 10, 2009, Truong made false entries on Kool Smiles patient records, purporting to have performed dental services for Medicaid beneficiaries that he well knew he had not performed. As a result of the false and fraudulent statements and entries Truong made, Kool Smiles billed Medicaid for procedures that were not performed. In fact, during this time period, Truong made false entries in the Kool Smiles electronic database that caused Kool Smiles to bill and receive payment from Medicaid (and Medicaid affiliates) of more than $120,000, but less than $200,000 for services he claimed to have performed, but did not.
In addition, according to the factual resume filed, Truong personally benefitted from this scheme by receiving bonuses of $32,749 to which he would not have been otherwise entitled. The court also ordered Truong to reimburse Kool Smiles for the legal fees incurred during the investigation.
Kool Smiles has cooperated throughout the investigation, which was conducted by the Medicaid Fraud Control Unit of the Office of the Attorney General for the State of Texas and the FBI. Assistant U.S. Attorney Amy Burch, of the U.S. Attorney’s Office in Lubbock, Texas, was in charge of the prosecution.
Tuesday 4 February 2014
Zwolle Man Sentenced to Three Years in Prison for Felon in Possession of A Firearm ChargeRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced today that David Earl Sepulvado Jr., 33, of Zwolle, La., was sentenced by U.S. District Judge Elizabeth Foote to 30 months in prison and three years of supervised release for one count of felon in possession of a firearm and ammunition. He pleaded guilty September 25, 2013.
According to evidence presented at the guilty plea, on February 22, 2013, Deputy U.S. Marshals located and arrested Sepulvado in Shreveport on arrest warrants issued by the Kaufman County, Texas, Sheriff’s Office for aggravated robbery and theft of a motor vehicle. At the time of his arrest, Sepulvado was found in possession of a .380 caliber pistol and ammunition. He had prior felony convictions for possession of methamphetamine and possession of a firearm in the presence of controlled dangerous substances in Sabine Parish in 2008.
The U.S. Marshal Fugitive Task Force, Louisiana State Probation and Parole Office, the Kaufman County, Texas, Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. prosecuted the case as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide program started in 2001 designed to reduce violence by aggressively enforcing existing federal firearms laWolcott Used Car Dealer Doug Jordan Jailed for FraudRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Douglas Jordan, 40, of Wolcott, was sentenced today in United States District Court in Rutland to 8 months of imprisonment following his guilty plea to a charge of odometer fraud. Chief Judge Christina Reiss also ordered that Jordan serve a one-year term of supervised release once he gets out of jail. The court indicated it will order Jordan to pay restitution in an amount to be determined at a future hearing. Judge Reiss directed Jordan to surrender to the Bureau of Prisons on April 8 to begin serving his sentence.
On April 29, 2013, a federal grand jury in Burlington returned a three-count indictment against Jordan, a former used car dealer who did business under the name Auto Credit Solutions. According to the indictment, Jordan bought high-mileage used cars at auctions in Vermont and then resold them. The indictment accused Jordan of defrauding customers by concealing malfunctions in various safety and operating systems on vehicles he was selling. Jordan caused the removal or disabling of warning lights for anti-lock brake, air bag and check engine warning systems. This enabled him to resell the vehicles for more than their fair market value. In one instance, Jordan also tampered with the odometer on a pick-up truck by rolling the mechanical odometer back 100,000 miles.
Jordan pled guilty to the odometer fraud charge last October. After his guilty plea, DMV revoked Jordan's license to sell used cars.Jordan is represented by assistant Federal Public Defender. David McColgin. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Wilmington Tax Preparer Sentenced to 57 Months for Making False Statements to IRS and the North Carolina Banking CommissionRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, Senior United States District Judge W. Earl Britt sentenced Eugenio M. David-Martinez , age 55, of Wilmington, North Carolina, to 57 months imprisonment, followed by 3 years of supervised release.
David-martinez was named in a two-count Criminal Information filed on April 22, 2013, charging him with Making False Statements to a Federal Agency and Making False Claims of US Citizenship. On July 11, 2013, david-martinez pled guilty to those charges.
According to the investigation, DAVID-MARTINEZ came to the United States from Cuba in 1980. Since then, he has illegally resided in the United States. As a Cuban national, however, he is not deportable.
Since at least January 2007, DAIVD-MARTINEZ has provided tax and accounting services, in Wilmington, North Carolina. The majority of his clients were also residing in the United States illegally. In order to file income tax returns, DAVID-MARTINEZ’s clients required Individual Taxpayer Identification Numbers, otherwise referred to as ITINs. To obtain an ITIN, the applicant must submit proof of identification and a tax reason for filing a return, which includes earning wages in the United States. The IRS authorizes individuals, known as acceptance agents, to assist applicants in the ITIN process. To become an acceptance agent, the individual must prove that he is a citizen or a legal resident and pass a suitability background check. In his applications to become an acceptance agent, DAVID-MARTINEZ falsely stated that he was a US citizen and bypassed the suitability background check by falsely representing he had previously been authorized to practice before the IRS as an Enrolled Agent.
For the years 2007 through 2012, DAVID-MARTINEZ filed approximately 18,536 ITIN applications for which he received $15 per application. He also filed approximately 12,985 income tax returns for individuals with ITINs for which he charged on average $90 per return.
DAVID-MARTINEZ also negotiated the IRS refund checks issued to the ITIN taxpayers. To advertise or offer this check cashing service for a fee, DAVID-MARTINEZ required a check cashing license issued by the North Carolina Office of the Commissioner of Banks. The application required DAVID-MARTINEZ to indicate his country of citizenship. DAVID-MARTINEZ falsely claimed he was a US citizen.
An integral part of the IRS-Criminal Investigation's mission involves detecting and catching fraudulent tax refund claims,” stated Jeannine A. Hammett, Internal Revenue Service-Criminal Investigation Special Agent in Charge. “The IRS-Criminal Investigation will continue to aggressively pursue those who file false tax returns to claim tax refunds for which they are not entitled.”
The Investigation of this case was conducted by the IRS-Criminal Investigation and the US Department of Homeland Security. Assistant United States Attorney Susan Menzer represented the government.
Wenatchee Man Sentenced to Ten Years in Federal Prison for Possession of Child PornographyRead the Press Release
Spokane - Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Christopher Gary Carlson, age 40, of Wenatchee, Washington, was sentenced today after having previously pleaded guilty in November, 2013 to Possession of Child Pornography. Chief United States District Court Judge Rosanna Malof Peterson sentenced Carlson to a ten-year term of imprisonment, to be followed by a life term of court supervision after he is released from Federal prison.
According to information disclosed during the court proceedings, the Wenatchee Police Department received several reports last April of an individual using the username "warlock666" to trade images of child sex abuse over the Internet. U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) special agents joined the investigation and the law enforcement officers were able to determine "warlock666" was Carlson. They determined Carlson was using his cellphone to chat online about child pornography. The officers obtained a search warrant for the phone and they discovered more than 600 images of child pornography. Among the images were child exploitation victims younger than 5-years-old.
In addition, information was disclosed that Carlson was convicted in 2007 for the same offense – Possession of Child Pornography. Carlson has a history of non-compliance with sex offender registration requirements. Records show he has been convicted twice since 2009 in Delaware for failing to register as a sex offender.
Michael C. Ormsby stated, "I commend the collaborative work of the Wenatchee Police Department and HSI in this case. The United States Attorney's Office in the Eastern District of Washington is, and will continue to be, committed to prosecuting aggressively and seeking appropriate punishment for child pornography crimes. Prosecuting offenders who are collecting child pornography is a priority of the United States Attorney's Office."
"Those who trade child pornography are a part of a disturbing cycle of violence against children," said Brad Bench, special agent in charge of HSI Seattle. "Imagine being in your 20s, 30s or 40s and knowing that, in the shadows of the Internet, predators are trading images of your childhood sex abuse. This is what victims of this crime must live with for the rest of their lives."
This investigation was conducted under HSI's Operation Predator, an international initiative to protect children from sexual predators. Since the launch of Operation Predator in 2003, HSI has arrested more than 10,000 individuals for crimes against children, including the production and distribution of online child pornography, traveling overseas for sex with minors, and sex trafficking of children. In fiscal year 2013, more than 2,000 individuals were arrested by HSI special agents under this initiative.
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative ("PSC") has five major components:
- Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue child victims;
- Participation of PSC partners in coordinated national initiatives;
- Increased federal enforcement in child pornography and enticement cases;
- Training of federal, state, and local law enforcement agents; and
- Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources".
This investigation was by the U.S. Immigration and Customs Enforcement's Homeland Security Investigations and Wenatchee Police Department. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and PSC Coordinator for the Eastern District of Washington.
CR-13-00135-RMP
Waveland Man Pleads Guilty to Deepwater Horizon Oil Spill FraudRead the Press Release
Gulfport, Miss. – Luom Van Ngo, 44, of Waveland, Mississippi, pled guilty in U.S. District Court today to mail fraud related to the Deepwater Horizon Oil Spill, U.S. Attorney Gregory K. Davis announced.
Ngo admitted that he devised and carried out a scheme to defraud the Gulf Coast Claims Facility established by BP Exploration and Production, Inc. to administer, process, and settle certain claims of individuals and businesses impacted by the Deepwater Horizon Oil Spill. Ngo made false representations in his claim for damages by alleging that, as a result of the oil spill, he lost earnings, profits and work hours as a commercial fisherman in Hancock County, Mississippi. As a result of his fraudulent scheme, Ngo caused a check in the amount of $18,000.00 to be sent to him from the Gulf Coast Claims Facility through the United States mail.
Luom Van Ngo will be sentenced on April 30, 2014, at 10:00 a.m., by Chief U. S. District Judge Louis Guirola. He faces a maximum sentence of 20 years in prison and a $250,000 fine.
This case was investigated by the United States Secret Service and prosecuted by Assistant U.S. Attorney Andrea Jones. It was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Virginia Man Sentenced to Eight Years in Prison for Traveling to Engage in Illicit Sexual ConductWith A Minor and Receipt of Child PornographyRead the Press Release
WASHINGTON – Nicholas Hanlon, 28, of Stafford, Va., was sentenced today to eight years in prison on one count of traveling interstate to engage in illicit sexual conduct with a minor and two counts of receipt of child pornography.
The sentence was announced by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD), and Earl L. Cook, Chief of the Alexandria Police Department, Alexandria, Va.
Hanlon pled guilty to the charges in November 2013 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Gladys Kessler. Upon completion of his prison term, Hanlon will be placed on 10 years of supervised release.
According to the government's evidence, on April 25, 2013, a member of the FBI's Child Exploitation Task Force, a detective from the Alexandria Police Department, was contacted by the parent of an under-aged female who was concerned that the child had been engaged in illicit text message conversations with Hanlon and others. The task force member, in an undercover capacity, began communicating with Hanlon, who believed the officer was the child.
Over the next few days, Hanlon engaged in text messaging with the undercover officer. During this period of time, Hanlon arranged with the undercover officer to meet for the purpose of engaging in sexual acts with the child.
On April 25, 2013, Hanlon traveled from Virginia to a pre-arranged meeting place in Washington, D.C. When he arrived, he was arrested. Subsequent to his arrest, law enforcement searched Hanlon’s computer and cell phone. Pursuant to that search, law enforcement found evidence that Hanlon had been communicating via text message and email with multiple young girls. Specifically, law enforcement recovered evidence that Hanlon received explicit videos from a female child from Missouri and from a 15-year-old from Virginia.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Machen, Assistant Director Parlave, Chief Lanier, and Chief Cook praised the work of the MPD and Alexandria Police Detectives and Special Agents of the FBI Child Exploitation Task Force. Finally, they commended the efforts of Assistant U.S. Attorney Ari Redbord, who prosecuted the case.
14-030Virginia Beach Man Convicted on Charges of Receipt and Possession of Child PornographyRead the Press Release
NORFOLK, Va. – Marcus Warrick, 29, of Virginia Beach, Va., was convicted today by a federal jury on six counts of receipt of child pornography and one count of possession of child pornography.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia and Scot R. Rittenberg, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), Washington, made the announcement after the verdicts were accepted by United States District Judge Mark S. Davis. Warrick faces five years minimum and 20 years maximum in prison for each count when he is sentenced on May 8, 2014.
Warrick was indicted on December 6, 2012 by a federal grand jury. According to court records and evidence at trial,HSI executed a search warrant and seized his computer on November 8, 2013. HSI found more than 400 videos and images of child pornography on his computer. The investigation revealed that he installed ARES on his computer and, using search terms, actively sought out images of child pornography.
This case was investigated by U.S. Immigration and Customs Enforcement, Homeland Security Investigations. Assistant United States Attorneys Randy Stoker and Elizabeth Yusi are prosecuting the case on behalf of the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.United States Attorney Peter Neronha Announces Leadership Team AppointmentsRead the Press Release
PROVIDENCE, R.I. – United States Attorney Peter F. Neronha today announced the appointment of Assistant United States Attorney Stephen G. Dambruch to the position of First Assistant United States Attorney. The position was most recently held by Kenneth P. Madden, who retired on January 31, 2014, after serving thirty-eight years in public service as a prosecutor.
Mr. Dambruch, who was appointed as an Assistant United States Attorney in January 2004 and Criminal Division Chief in February 2007, served a 10-month detail for the Department of Justice in the Regime Crimes Liaison Office in Iraq beginning in December 2005. Prior to his appointment as an Assistant United States Attorney, Mr. Dambruch served as a state prosecutor, including appointments as Chief of the Narcotics Prosecution Unit, Chief of the Newport County Office, Chief Prosecutor, and Deputy Criminal Chief. Mr. Dambruch is a 1982 graduate of Providence College and received his law degree from Boston College Law School in 1985.
United States Attorney Peter F. Neronha today also announced the appointment of Assistant United States Attorney Adi Goldstein to the position of Criminal Division Chief. AUSA Goldstein, who joined the United States Attorney’s Office in September 2002, and who was appointed Criminal Division Deputy Chief and lead Organized Crime Drug Enforcement Task Force Attorney in October 2009, also supervised the white collar crime unit which includes financial crimes, public corruption, health care fraud, and child exploitation cases.
Prior to joining the United States Attorney’s Office, Ms. Goldstein served as an Assistant District Attorney in the Manhattan District Attorney’s Office and as a law clerk in the U.S. Court of Appeals for the Second Circuit. Ms. Goldstein is a 1995 graduate of Harvard University and received her law degree from Columbia School of Law in 1999.
United States Attorney Peter F. Neronha today also announced the appointment of Assistant United States Attorney Richard B. Myrus to the position of Civil Division Chief. The position of Civil Division Chief was most recently held by former Assistant United States Attorney Michael P. Iannotti, who retired after thirty-one years of public service with the Department of Justice.
Prior to joining the United States Attorney’s Office in May 2007, Mr. Myrus was a partner in two Boston law firms specializing in patent litigation and served as a law clerk in the U.S. District Court for the Southern District of New York. A veteran, Mr. Myrus served in the United States Navy where he rose to the rank of Lieutenant as a helicopter aircraft commander and officer-in-charge of a helicopter detachment. Mr. Myrus was awarded the United Nations Humanitarian Service medal for the rescue of Vietnamese refugees in the South China Sea and the National Defense Service Medal for the training of pilots during Operation Desert Storm.
Mr. Myrus, who is a 1984 graduate of Columbia University and a 1992 graduate of the University of San Diego, earned his law degree from Fordham University School of Law in 1995.
United States Attorney Peter F. Neronha commented, “I have worked with these three outstanding Assistant United States Attorneys for many years, some of them for over a decade. They are highly intelligent, motivated and experienced attorneys, and I am confident that they will serve the people of Rhode Island extraordinarily well.”
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