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24 March 2014
Man Accused of Threatening Senator Manchin Arrested on Criminal ComplaintRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced today that Steven Anthony Major, 49, of Barboursville, W.Va. was arrested on Friday, March 21, 2014 on a federal criminal complaint alleging that he made violent threats against United States Senator Joe Manchin and his family members.
According to the complaint, which was unsealed today, Major made multiple calls to the Charleston, W.Va. and Washington, D.C. offices of Senator Manchin. During the calls, Major identified himself and made violent threats targeting Senator Manchin and his family members.
Major’s initial appearance on the arrest is scheduled for 2 p.m. in front of Magistrate Judge Dwane L. Tinsley, Fifth Floor, Robert C. Byrd United States Courthouse, Charleston, W.Va. Major faces up to 10 years in prison, if convicted.
The investigation was conducted by the Federal Bureau of Investigation and the West Virginia State Police. Assistant United States Attorney Haley Bunn is in charge of the prosecution.
Click here for a link to the complaint.
Note: The charge contained in the complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
Leader and Co-Conspirator of Android Mobile Device App <br /> Piracy Group Plead GuiltyRead the Press Release
The leader of a piracy group engaged in the illegal distribution of copies of copyrighted Android mobile device applications and a co-conspirator have pleaded guilty for their roles in the scheme that distributed more than one million copies of copyrighted apps with a total retail value of more than $700,000.
Acting Assistant Attorney General David A. O’Neil of the Department of Justice’s Criminal Division, U.S. Attorney Sally Quillian Yates of the Northern District of Georgia and Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Field Office made the announcement.
“These mark the first convictions secured by the Justice Department against those who illegally distribute counterfeit mobile apps,” said Acting Assistant Attorney General O’Neil. “These men trampled on the intellectual property rights of others when they and other members of the Appbucket group distributed more than one million copies of pirated apps. The Criminal Division has made fighting intellectual property crime a top priority, and these convictions demonstrate our determination to prosecute those who undermine the innovations of others in new technologies.”
“Copyright infringement discourages smart, innovative people from using their talents to create things that the rest of society can use and enjoy,” said U.S. Attorney Yates. “Theft is theft – whether the property taken is intellectual or tangible – and we will continue to prosecute those who steal copyrighted material.”
“The wholesale theft of intellectual property as seen in this case cannot and will not go unaddressed,” said FBI SAC Johnson. “The FBI will continue to work with its various law enforcement partners in identifying, investigating and presenting for prosecution those individuals and groups engaged in such criminal activities that involve the attempt to profit from the hard work and the developed creative ideas of others.”
Nicholas Anthony Narbone, 26, of Orlando, Fla., pleaded guilty today to one count of conspiracy to commit criminal copyright infringement, and Thomas Allen Dye, 21, of Jacksonville, Fla., pleaded guilty to the same change on March 10, 2014. Sentencing is scheduled for July 8, 2014, and June 12, 2014, respectively.
An information filed on Jan. 24, 2014, charged Narbone, Dye and others with one count of conspiracy to commit criminal copyright infringement. According to the information, Narbone, Dye and their fellow conspirators identified themselves as the Appbucket group, with Narbone as the leader, and, from August 2010 to August 2012, they conspired with other members of the Appbucket group to reproduce and distribute more than one million copies of copyrighted Android mobile device apps through the Appbucket alternative online market without permission from the copyright owners of the apps.
The investigation was conducted by the FBI. The prosecution is being handled by Assistant U.S. Attorney Christopher Bly of the Northern District of Georgia and Assistant Deputy Chief for Litigation John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS). Significant assistance was provided by the CCIPS Cybercrime Lab, and the Office of International Affairs also provided assistance in this matter.Leader of Scheme to Defraud IRS Using Stolen Puerto Rican Identities Sentenced in Manhattan Federal Court to Nine Years in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that CARLOS JOSE LUIS (“JOSE LUIS”), also known as Jose Quilestorres, was sentenced on Friday, March 24, 2014, in Manhattan federal court to nine years in prison for his role as the leader of a scheme to fraudulently generate and then steal more than $10 million in federal tax refund checks. JOSE LUIS pleaded guilty before U.S. District Judge Richard J. Sullivan in May 2013 to one count of each of: conspiracy to steal government funds, stealing government funds, aggravated identity theft, conspiracy to submit false claims to the United States, and submitting false claims to the United States. JOSE LUIS also pleaded guilty to similar charges in the District of New Jersey in November 2013, and that case was transferred to the Southern District of New York for sentencing. Judge Sullivan imposed the nine-year sentence based on JOSE LUIS’s guilty plea in both cases.
Manhattan U.S. Attorney Preet Bharara said: “Jose Luis stole people’s identities and used a corrupted Postal employee to perpetrate a multimillion-dollar tax fraud scheme. As the judge in this case correctly noted, stealing from the government may seem impersonal but everyone who is deprived of the good the government can do by that money being taken is a victim. This Office will not tolerate the wholesale thievery from the Treasury that this scheme was.”
According to the Indictment filed in Manhattan federal court, other court documents, and statements made during court proceedings:
JOSE LUIS operated a tax refund fraud mill from an apartment in the Bronx. Between January 2011 and September 2012, JOSE LUIS fraudulently claimed more than $10 million in IRS tax refund checks.
To fraudulently obtain the refund checks, JOSE LUIS would unlawfully obtain identifying information, including names, dates of birth, and social security numbers, of Puerto Rican citizens. Their stolen identities would then be used to claim large refunds from the federal government. Many of the checks in this particular scheme were sent to addresses in Shirley, New York, where a Postal Service employee was stealing United States mail containing tax refund checks. The checks generated by the fraudulent returns filed by JOSE LUIS were then cashed by other individuals, including four individuals charged in the Indictment filed in Manhattan federal court: Miguel Caceres, Felipe Duran Martinez, Ana Pimentel, and Emil Mejia.
In sentencing JOSE LUIS, Judge Sullivan remarked that “this is a crime that went on for a long time, the entire purpose of which was to steal from the government of the United States. On the one hand, that's . . . a very impersonal victim. . . . But it is a government that is designed to serve people and serve communities. And so the staggering amount of loss here . . . more than $10 million, if you think about what the government could do with that money . . . $10 million can do . . . an awful lot of good. . . . So there are victims to this crime. . . .”
Caceres pleaded guilty in April 2013 to conspiracy to steal government funds and to stealing government funds and was sentenced in November 2013 to 14 months in prison. Martinez pleaded guilty in April 2013 to similar charges and is awaiting sentence. Another individual linked to this organization and charged in the Indictment, Jairo Polanco, also pleaded guilty, in March 2013, and was sentenced in July 2013 to one year and one day in prison. Pimentel and Mejia remain at large. The charges against Pimentel and Mejia are merely accusations, and they are presumed innocent unless and until proven guilty.
Mr. Bharara praised the Internal Revenue Service and the United States Postal Inspection Service for their work on this case.
This case is being prosecuted by the Office’s General Crimes Unit. Assistant U.S. Attorneys Rahul Mukhi and Micah Smith are in charge of this prosecution.
Leader of Multistate Drug Trafficking Ring SentencedRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI –Reginald S. “Reggie” Myers, 55, Cincinnati, was sentenced in U.S. District Court today to 232 months imprisonment followed by 10 years of supervised release for leading a multistate drug trafficking conspiracy that brought between 120 and 180 kilograms of powder cocaine into the greater Cincinnati area between 2005 and 2007.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Kevin Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Office (FBI), announced the sentence handed down today by U.S. District Judge Michael R. Barrett.
Myers was convicted in January 2013 following a five day trial. According to testimony presented during the trial, the organization spread over several states, with Chicago, then Atlanta as the main “distribution centers” and “branch offices” in Cincinnati, Philadelphia, New York City, Raleigh, NC, and elsewhere, and in total moved in excess of 600 kilograms of cocaine (plus heroin and marijuana) out of Atlanta, generating more than $5 million in profits.
Myers used a hair care business known as Unique from Head 2 Toe, located at 4142 Hamilton Avenue, Cincinnati, Ohio, for the purpose of carrying out narcotics transactions, and his residence, located at 2032 First Avenue, Cincinnati, for the purpose of discussing business related to narcotics trafficking. FBI agents arrested Myers on February 3, 2009.
Following the verdict, Myers was remanded to the custody of the U.S. Marshals and has been held without bond.
Agencies assisting in the investigation include the U.S. Attorneys’ offices in the Southern District of New York, Northern District of Illinois and the District of Maryland, FBI Field Divisions in New York, Pittsburgh and Chicago, the Cincinnati Police Department, the Tennessee Highway Patrol and the Athens, Tennessee Police Department.
Stewart commended the investigation conducted by the FBI, as well as Criminal Chief Kenneth Parker and Assistant U.S. Attorney Karl Kadon, who represented the United States in the case.
###Laguna Puelbo Man Pleads Guilty to Assaulting his Intimate Parnter by StrangulationRead the Press Release
ALBUQUERQUE – Brian Dyea, 28, pleaded guilty this morning to an indictment charging him with assaulting an intimate partner by strangulation. The guilty plea was announced by Acting U.S. Attorney Steven C. Yarbrough, DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of BIA’s Office of Justice Services, and Acting Chief Brian Carr of the Pueblo of Laguna Tribal Police Department.
Dyea, a member of the Pueblo of Laguna who resides in Mesita, N.M., was arrested on Jan 21, 2014, on a criminal complaint alleging that he assaulted his intimate partner, a Laguna Pueblo woman, by strangling and biting her. Dyea subsequently was indicted and charged with assaulting his intimate partner by strangulation on Jan. 12, 2014 in a location within the Pueblo of Laguna.
In entering his guilty plea, Dyea admitted assaulting the victim on Jan. 12, 2014, by biting her and strangling her, by placing his hands around her neck and impeding her normal breathing. Dyea acknowledged that the victim suffered contusions to her forehead and foot, three bite-marks to her left hand and forearm, a wrist sprain, and a head injury with the loss of consciousness as a result of the assault.
Dyea has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. He faces a maximum penalty of ten years in prison.
This case was investigated by the Laguna Agency of BIA’s Office of Justice Services and the Pueblo of Laguna Tribal Police Department, and is being prosecuted by Special Assistant U.S. Attorney David Adams. The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Justice Department Files Lawsuit Against Con-Way Freight Inc. to Enforce Reemployment Rights of Temporarily Disabled ServicememberRead the Press Release
The Department of Justice filed a lawsuit today against Con-Way Freight Inc. alleging that the company violated the Uniformed Services Employment and Reemployment Rights Act (USERRA) by failing to promptly reassign Naval Reservist Dale Brown to his former position as a driver with appropriate seniority once he notified the company that he had fully recovered from a temporary service-related medical disability.
According to the complaint, filed in the U.S. District Court for the Northern District of Illinois, Brown began working for Con-Way on Nov. 9, 1987, as a driver sales representative (DSR). In 2006, Brown was working at Con-Way’s Rock Island, Ill., facility when he deployed for active duty. While in Iraq, Brown suffered a serious shoulder injury in a truck accident during a night mission and returned to Con-Way in 2009 following an honorable discharge. Con-Way placed him in a lower-paying position due to medical restrictions that prevented him from returning to the DSR position. By 2012, Brown had made a full recovery and notified the company that he was able to resume work as a DSR without medical restrictions. Con-Way refused to return Brown to the DSR position and instead made him apply for open positions as they became available. Months later, Brown was eventually hired as a DSR, but, Con-Way treated him as a new employee with no seniority to bid on assignments. As a result, Brown effectively received a 40 percent reduction in pay compared to what he was earning as a DSR prior to his military leave. He also no longer has a regular work schedule because his seniority was not restored upon resinstatement and he must call in each day to see if and for how long he will work on a given day.
USERRA obligates employers to promptly reemploy returning servicemembers and place them as near as possible in the position that they would have been in absent military service, or a position of similar seniority, status and pay. For servicemembers like Brown who return with a service-connected disability, the reemployment obligation extends to providing accommodations to the servicemember, which can include a temporary position until the servicemember has recovered and is able to return to his or her proper reemployment position. Contrary to these requirements, Con-Way violated USERRA by treating Brown as a newly hired DSR, with no accrued seniority, rather than placing him in the position that he would have held had he not served his country and suffered a serious and debilitating injury that required temporary accomodation.
The lawsuit seeks an adjustment to Brown’s seniority date as a DSR to his pre-deployment date with back wages for Con-Way’s six month delay in reemploying Brown once he asked for reinstatement as a DSR following his medical clearance, and his inability to bid on desirable shifts and routes due to his lack of seniority.
“Employers have a legal obligation under USERRA to accommodate servicemembers who suffer a disability while serving their country,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Civil Rights Division is committed to protecting the rights of those who have served their country through military service.”
This case stems from a referral by the U.S. Department of Labor (DOL) following an investigation by the DOL’s Veterans’ Employment and Training Service. The case is being handled by the Employment Litigation Section of the Civil Rights Division.
Additional information about USERRA can be found on the Justice Department website’s Servicemember page and Employment Litigation Section page, as well as on the DOL website.
Jefferson County Man Sentenced to Nearly 20 Years in Federal Prison for Methamphetamine Related ChargesRead the Press Release
Follow @SDILNewsA Jefferson County man was sentenced on March 19, 2014, to federal prison on methamphetamine related charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Alvin Gene Chelf, 42, of Bonnie, Illinois, was sentenced to 235 months in federal prison, to be followed by six years of supervised release, and fined $400. The Court sentenced Chelf as a Career Offender due to Chelf’s previous criminal history. Chelf had pleaded guilty to two counts in a federal indictment, Count 1 charged that on February 14, 2013, in Jefferson County, Illinois, Chelf knowingly and intentionally distributed methamphetamine, and Count 2 charged that on February 19, 2013, in Jefferson County, Illinois, Chelf knowingly and intentionally distributed methamphetamine.
The investigation in this case was conducted by the Joint Narcotics Unit of the Mt. Vernon Police Department and the Jefferson County Sheriff’s Department.
The case is being handled by Assistant United States Attorney George Norwood.
In New Step to Fight Recidivism, Attorney General Holder Announces Justice Department to Require Federal Halfway Houses to Boost Treatment Services for Inmates Prior to ReleaseRead the Press Release
WASHINGTON—In a new step to further the Justice Department’s efforts towards enhancing reentry among formerly incarcerated individuals, Attorney General Eric Holder announced Monday that the Bureau of Prisons (BOP) will impose new requirements on federal halfway houses that help inmates transition back into society. Under the proposed new requirements, these halfway houses will have to provide a specialized form of treatment to prisoners, including those with mental health and substance abuse issues. For the first time, halfway houses will also have to provide greater assistance to inmates who are pursuing job opportunities, such as permitting cell phones to be used by inmates and providing funds for transportation. The new requirements also expand access to electronic monitoring equipment, such as GPS-equipped ankle bracelets, to allow more inmates to utilize home confinement as a reentry method.
Holder announced the changes in a video message posted on the Department’s website.
The BOP’s new policies have the potential to be far-reaching. To ease their transition, those exiting prison typically spend the last few months of their sentence in either a federal halfway house—known as a residential reentry center (RRC)—or under home confinement, or a combination of the two. These community-based programs provide much needed assistance to returning citizens in finding employment and housing, facilitating connections with service providers, reestablishing ties to family and friends, and more.
Last year alone, more than 30,000 federal inmates passed through a halfway house.
Among the most significant changes Holder announced is the requirement for standardized Cognitive Behavioral Programming (CBP) to be offered at all federal halfway houses. This treatment will address behavior that places formerly incarcerated individuals at higher risk of recidivism. As part of this treatment requirement, BOP is setting guidelines for instructor qualifications, class size and length, and training for all staff at the halfway houses.
Several other modifications are being made to the standard contracts that apply to federal halfway houses in order to provide greater support to returning citizens. Examples include requiring halfway houses to provide public transportation vouchers or transportation assistance to help residents secure employment, requiring all federal halfway houses to allow residents to have cell phones to facilitate communication with potential employers and family, and improving and expanding home confinement by increasing the use of GPS monitoring.
The proposed new requirements will be posted today on the Federal Business Opportunities website (www.fbo.gov). Interested parties will have a 30-day period to comment on the proposal. The BOP anticipates implementing the new requirements beginning with contracts expiring in 2014.The complete text of the Attorney General’s video message is below: “Today, America’s federal prison population is experiencing a period of significant negative growth, with nearly 4,000 fewer inmates behind bars than at the end of the last fiscal year. This is the first major reduction in the federal prison population in three decades.
“Thanks to a variety of effective, evidence-based reentry programs and services, we’re doing more than ever to ensure that the tens of thousands of federal inmates who return to their communities each year have access to the substance abuse treatment, job training, affordable housing, parenting education, and other resources that so many need to break the cycle of poverty, criminality, and incarceration.
“Through innovative strategies like the Justice Department’s ‘Smart on Crime’ initiative, we’re working hard to tear down unnecessary barriers to opportunity and independence – while building up programs that enable former prisoners to reintegrate into their communities. And nowhere is this work stronger than at the Federal Bureau of Prisons – where groundbreaking efforts are underway to make our criminal justice expenditures both smarter and more productive.
“Today, I’m pleased to announce that the Justice Department – through the Bureau of Prisons – is taking a critical step forward that will enable us to build on this important work – and improve the way reentry programming is implemented from coast to coast.
“For the first time, we will require all 200-plus halfway houses in the federal system to offer standardized treatment to prisoners with mental health and substance abuse issues. This treatment will be intensive, and must follow rigorous standards set forth by the Bureau of Prisons. Once fully implemented, these services will be available to every single one of the approximately 30,000 inmates who are released through halfway houses each year. This will ensure consistency and continuity of care between federal prisons and community-based facilities. And it will enhance the programs that help prisoners overcome their past struggles, get on the right path, and stay out of our criminal justice system.
“These important changes and others are codified in BOP’s published requirements for halfway houses – which will be posted online this week. Over the next 30 days, those who operate halfway houses will have the opportunity to provide feedback on these newly proposed requirements. And I encourage members of the public to visit this site, learn about these tools, and make your voices heard as well – so we can all take an active part in constructing the more effective, more efficient, and more just system that everyone in this country deserves.”
The full video is available at http://www.justice.gov/agwa.php.Huntington Woman Going to Prison for Allowing Heroin Trafficking from Her HomeRead the Press Release
Huntington, W.Va. – United States Attorney Booth Goodwin announced that Lindsey Alyn Thacker, 29, of Huntington, West Virginia, was sentenced today in United States District Court by Chief Judge Robert C. Chambers to three years imprisonment for maintaining a residence for the purpose of distributing heroin. Beginning in the summer of 2012 and continuing into the summer of 2013, Thacker allowed drug dealers from Detroit, Michigan to store and sell heroin at her residence on 11th Avenue in Huntington. She also permitted addicts to use heroin in her home. In return for facilitating this illegal drug activity, Thacker received heroin for personal use.
During a search of the residence, agents located approximately .3 grams of heroin and over $1000.00 from drug sales. Thacker also admitted that she had made six to seven trips to Detroit to obtain heroin and/or crack cocaine from an individual she knew as Zack or Zane, later identified as Zachary Merritt. Merritt, along with others, were charged and have pled guilty for their roles in trafficking heroin in Huntington.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. . The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Huntington Man Admits He Received Dangerous Drugs Through the MailRead the Press Release
Huntington, W.Va. – United States Attorney Booth Goodwin announced that Quincy Ray Johnson, 34, of Huntington, West Virginia was sentenced today by Chief Judge Robert C. Chambers to six years and six months imprisonment for possession with intent to distribute oxycodone, a dangerous and addictive pain killer. On April 17, 2013, an Express Mail Parcel was intercepted by United States Postal Inspectors after a specially trained police dog indicated the presence of drugs. A search warrant was obtained for the package and when it was opened, agents found 1260 oxycodone pills, and approximately 1 ounce of Molly (MDMA), a street drug akin to “Ecstasy.” After the inspection, the drugs were returned to the original packaging and delivered to 1737 10th Avenue, Huntington, West Virginia. A black male, later identified as Johnson, answered the door and accepted the delivery. A search warrant was subsequently executed and the package was recovered. When questioned by authorities, Johnson admitted that he expected and received the package containing the illegal drugs. Johnson also admitted receiving four other packages through the mail, each containing approximately 300 oxycodone 30-mg pills. Johnson plead guilty in September of 2013
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Guilty Plea in Bakersfield Mortgage Fraud SchemeRead the Press Release
FRESNO, Calif. — Antonio Perez Marcial, 41, of Bakersfield, pleaded guilty today to conspiracy to commit bank fraud, mail fraud, and wire fraud, in connection with a mortgage fraud scheme in Bakersfield, U.S. Attorney Benjamin B. Wagner announced.
According to Perez-Marcial’s guilty plea, he conspired with his co-defendants from 2007 to 2010 to use straw buyers to purchase residential properties in Bakersfield developed by Jara Brothers Investments (JBI), owned by co-defendants Eliseo Jara and Sergio Jara, and Pershing Partners LLC, owned by co-defendant Lucia Chavez. The conspirators paid straw buyers to purchase the properties from JBI and Pershing Partners, and funded the purchases using loans they obtained for the straw buyers from lenders based on false and fraudulent loan applications. The loan applications the conspirators submitted to lenders frequently contained false statements concerning the straw buyers’ employment status, income, assets, intent to occupy the properties as their personal residences, and source of down payments for the purchase of the properties. The conspirators concealed from the lenders that the property developers funded certain of the straw buyers’ down payments. The conspirators also submitted false supporting documentation to lenders such as false and altered bank account statements purporting to show that the straw buyer had a high bank account balance, false verifications of the straw buyers’ bank account funds, false verifications of rent purporting to be from the straw buyer’s landlord, false pay stubs, and false verifications of employment. Perez-Marcial at times received from other conspirators a “consulting fee” ranging from $20,000 to $30,000 or more when a property was sold to a straw buyer, to compensate Perez-Marcial for having obtained the straw buyer and to fund the straw buyer’s payment. Perez-Marcial admitted he caused lenders approximately $3,455,250 in losses due to his role in the conspiracy.
“Mortgage fraud saps the strength of our banking system and has victimized communities across our nation,” said Jose M. Martinez, Special Agent in Charge of IRS Criminal Investigation in Oakland. “Today’s plea represents one of the many results of the ongoing and focused efforts of the IRS and our law enforcement partners to identify and hold criminals who tried to game our financial system accountable for their actions.”
This case is the product of a joint investigation by the Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation. Assistant U.S. Attorneys Kirk E. Sherriff and Henry Z. Carbajal III are prosecuting the case.
Perez-Marcial is scheduled to be sentenced on June 2, 2014 at 10:00 a.m. by Senior United States District Judge Anthony W. Ishii. The maximum sentence for the conspiracy charge is 30 years in prison. The actual sentence will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Co-defendant Ricardo Salinas pleaded guilty to bank fraud in 2013, and his sentencing is set for July 28, 2014. The remaining six defendants have pleaded not guilty, the charges as to them are only allegations, and they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This law enforcement action is part of the work being done by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. One component of the FFETF is the national Mortgage Fraud Working Group, co-chaired by U.S. Attorney Wagner. For more information on the task force, visit StopFraud.gov.
Four Drug Defendants Sentenced in Federal Court in BluefieldRead the Press Release
BLUEFIELD, W.Va. – United States Attorney Booth Goodwin announced that four defendants convicted of drug offenses were sentenced by Senior United States District Judge David A.Faber in federal court in Bluefield today. Richard Travis Robinette, Jr., 40, of Garland, West Virginia, was sentenced to six years in prison for distributing oxycodone pills. Robinette pled guilty in November of 2013, admitting that on September 16, 2010, he distributed ten oxycodone pills to a person cooperating with law enforcement authorities. The transaction took place at or near Avondale, West Virginia. Mr. Robinette admitted that he was involved in the distribution of a total of 400 oxycodone pills. In a related case, Tobi LaDawn Jones, 25, of Avondale, was sentenced to 10 months imprisonment for using a telephone to commit a felony drug offense. Jones pled guilty in November, admitting that she had used a telephone to set up the distribution of 13 oxycodone pills by an individual to a person cooperating with authorities. The drug transaction also took place near Avondale. Ms. Jones also admitted to being involved in additional drug transactions. The cases were investigated by the United States Drug Enforcement Administration.
Faith Akers, 45, of Princeton, was sentenced to one year and one month for distributing hydromorphone pills. Akers pled guilty in November of 2013, when she admitted that on May 15, 2013, she distributed two hydromorphone pills to a person cooperating with authorities near Princeton. She further admitted that she was involved in distributing two hydromorphone pills on May 14 and one hydromorphone pill on May 15, 2013.
Terry Testerman, 61, of Bluewell, was sentenced to nine months of time served for distributing oxycodone pills. Testerman pled guilty in September of 2013, admitting that on February 3, 2012, he distributed two oxycodone pills to a person assisting law enforcement authorities in Bluewell. In addition, Mr. Testerman admitted that he distributed approximately five more oxycodone pills at various times.
The Akers and Testerman cases were investigated by the West Virginia State Police Bureau of Criminal Investigations and the Southern Regional Drug and Violent Crime Task Force, and were prosecuted under the Bluefield Pill Initiative. All of the cases were prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U. S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Former Owner of Youngstown Company Pleads Guilty to Discharging Brine into the Mahoning RiverRead the Press Release
The former owner of a Youngstown-based company pleaded guilty to violating the Clean Water Act by discharging brine into a tributary of the Mahoning River, said Steven M. Dettelbach, the United States Attorney for the Northern District of Ohio.
Benedict W. Lupo, 63, of Poland, Ohio, is scheduled to be sentenced on June 16.
The conduct took place between Nov. 1, 2012 and Jan. 31, 2013, according to court documents.
“Those who make it their business to harvest from under Ohio its great natural resources, have a responsibility to the men, women and children who drink its water, live on its land and breathe its air. And they have a duty to follow the law," Dettelbach said. "The defendant in this case has admitted ordering others to break the law, and he must be held accountable.”
“Ben Lupo put his own business interests ahead of the health and safety of our citizens, natural resources and wildlife by repeatedly releasing or ordering the release of his company’s brine waste into the Mahoning River. He will now be held accountable for this terrible crime,” said Ohio Attorney General Mike DeWine.
“As natural gas exploration continues, it must be done in a way that ensures the drilling byproducts are treated and disposed of safely and legally,” said Randall Ashe, Special Agent in Charge of EPA’s criminal enforcement program in Ohio. “This case demonstrates that if companies and their owners skirt environmental laws, EPA will hold them accountable.”
“This incident is one of a small percentage of egregious environmental violations we see at Ohio EPA that must be prosecuted criminally,” Ohio EPA Director Craig Butler said. “This general disregard for the law will not be tolerated in Ohio and we will work with our partners at the local, state and federal agencies to make sure the responsible parties are held accountable. We especially appreciate the United States Department of Justice quickly assisting Ohio in this case and applying its more stringent laws regarding Clean Water Act violations. ”
According to the indictment and related court documents:
Hardrock Excavating LLC was owned by Lupo and located at 2761 Salt Springs Road in Youngstown. The company provided services to the oil and gas industry in Ohio and Pennsylvania, including the storage of brine and oil-based drilling mud used in hydrofracturing, or fracking.
There were approximately 58 mobile storage tanks at the facility and each holds approximately 20,000 gallons.
Lupo, who owns Hardrock, directed an employee to empty some of the waste liquid stored at the facility into a nearby wastewater drain on or about Nov. 1, 2012. Lupo directed the employee to conduct this activity only after no one else was at the facility and only after dark.
An employee, at the direction of Lupo, emptied some of the waste liquid at the facility into the nearby stormwater drain using a hose on numerous occasions over the next several months. The drain flowed into a tributary of the Mahoning River and ultimately into the Mahoning River.
The last time an employee emptied some of the waste liquid into the drain was on or about Jan. 31, 2013. The waste liquid that night included brine and drill cuttings. A sample of the discharge taken that night was black in color and a subsequent analysis showed the presence of several hazardous pollutants, including benzene and toluene.
This case is being prosecuted by Special Assistant U.S. Attorney Brad Beeson following an investigation by the Ohio EPA, Ohio Department of Natural Resources, U.S. EPA, the Ohio Bureau of Criminal Investigation, the Youngstown Department of Public Works and the Youngstown Fire Department.
The statutory maximum for violating the Clean Water Act is for individuals is three years in prison, one year of supervised release and a fine of $50,000 per day of violation or $250,000, whichever is larger.
Michael Guesman, 35, of Cortland, Ohio, previously pleaded guilty to his role in the crime and was sentenced last week to three years of probation and 300 hours of community service. The criminal case against Hardrock Excavating LLC remains pending.The case remains under investigation.
Former Middle School Teacher Arrested on Child Pornography ChargesRead the Press Release
ATLANTA - William Kimbrell has been arraigned on federal charges of accessing with intent to view child pornography. Kimbrell was indicted by a federal grand jury on March 18, 2014.
"This now-former middle school teacher has been indicted on child pornography charges," said United States Attorney Sally Quillian Yates. "Through the vigilance of our law enforcement partners, this defendant is no longer teaching, and will face the consequences of his actions."
“Consumers of child pornography create a demand for the sexual exploitation of children that has resulted in an explosion of abuse across the United States,” said Special Agent in Charge Brock D. Nicholson of Homeland Security Investigations (HSI) in Atlanta. “No matter how cleverly a suspect may think he has covered his tracks by deleting or encrypting illegal photos and videos, our special agents and computer forensic analysts are highly trained and skilled at finding the evidence of their crimes.”
According to United States Attorney Yates, the charges, and other information presented in court: Starting in October 2012, a sheriff's office detective in southern Georgia found that a person at an apartment complex in Statesboro, Ga., was distributing child pornography. In late December 2012 and continuing into January 2013, this same person was still offering child pornography for distribution, but this time the computer’s Internet protocol address came back to a residence in Covington, Ga.
When special agents with Homeland Security Investigations learned of the offense this year, they identified the subject as William Kimbrell, and obtained federal search warrants for his home in Covington. At that time, Kimbrell was working as a middle school teacher in Barrow County, Ga. When the agents executed the search warrants, they found that Kimbrell had deleted the bulk of the child pornography on his computer. The computer forensics analyst, however, was able to find remnants of files on the computer and was able to determine that Kimbrell had accessed child pornography on the Internet from October to December 2013, which includes the period that he was working as a teacher. Kimbrell resigned from his position as a middle school teacher on March 17, 2014.
William Kimbrell, 27, of Covington, Ga., was arraigned before United States Magistrate Judge Russell G. Vineyard. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Assistant United States Attorney Paul R. Jones is prosecuting the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former L.A. City Building Inspector Sentenced to 2½ Years in Federal Prison for Taking Tens of Thousands of Dollars in Bribe PaymentsRead the Press Release
LOS ANGELES – A former inspector with the Los Angeles Department of Building and Safety (LADBS) was sentenced today to 30 months in federal prison for taking more than $30,000 in bribes in relation to at least a dozen properties in and around the Koreatown District of Los Angeles.
Samuel In, 66, of Glendale, a 37-year veteran of LADBS, pleaded guilty just over one year ago to one count of bribery. According to court documents, In took bribe payments – which he described to some victims as “fees” – from 2007 through the end of 2010. In admitted that he solicited and accepted bribery payments totaling more than $30,000 in connection with his official duties in relation to at least a dozen Koreatown properties.
Federal prosecutors asked United States District Judge Dean D. Pregerson to impose a 30-month prison term, reasoning that In took bribes as part of a “deliberate, long-running pattern of corruption.”
In a sentencing memo filed with the court, prosecutor wrote: “This recommended sentence appropriately accounts for the serious nature of defendant’s illegal course of conduct — abusing his position as a senior building inspector over a number of years to solicit and take bribes in return for approving numerous building projects that may or may not have been safe.”
The case against In is the result of an investigation by the Federal Bureau of Investigation.
The FBI urges anyone with information about building inspectors or other officials accepting bribes to contact the FBI by calling its Los Angeles Field Office at its toll-free corruption hotline – 855-5-BRIBES (855-527-4237) – or sending an e mail to the [email protected].
Release No. 14-033
Five Former Employees of Bernard L. Madoff Investment Securities Found Guilty in Manhattan Federal Court on All CountsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that a Manhattan jury today found DANIEL BONVENTRE, ANNETTE BONGIORNO, JOANN CRUPI, a/k/a “Jodi,” JEROME O’HARA, and GEORGE PEREZ guilty of all 31 counts in connection with their long-time employment at Bernard L. Madoff Investment Securities LLC (“Madoff Securities”). The verdict was announced this afternoon after a more than five-month trial before Judge Laura Taylor Swain in Manhattan federal court.
Manhattan U.S. Attorney Preet Bharara said: “As the jury unanimously found, these five defendants played crucial roles in constructing and maintaining the house of cards that was the Madoff investment fraud. These convictions, along with the prior guilty pleas of nine other defendants, demonstrate what we have believed from the earliest stages of the investigation: this largest-ever Ponzi scheme could not have been the work of one person. The trial established that the Madoff fraud began at least as far back as the early 1970s, decades before it came to light. These defendants each played an important role in carrying out the charade, propping it up, and concealing it from regulators, auditors, taxing authorities, lenders, and investors. The scheme these defendants helped perpetrate cost innumerable investors their life savings. Now it likely will cost the defendants their freedom.”
According to the evidence presented during the trial:
BONGIORNO, an employee in the investment advisory business for 40 years, managed hundreds of investment advisory accounts purportedly having a cumulative balance of approximately $8.5 billion dollars as of November 30, 2008. BONGIORNO also supervised employees who worked for the investment advisory business.
CRUPI, an employee in the investment advisory business for 25 years, managed several Madoff Securities investment advisory accounts purportedly having a cumulative balance of approximately $900 million as of November 30, 2008. She also tracked the daily activity of the bank account into which billions of dollars of investment advisory client money was deposited, and from which investment advisory client redemptions were paid.
During the course of managing investment advisory accounts, BONGIORNO and CRUPI “executed” trades in the investment advisory clients’ accounts only on paper, based on historically reported prices of securities that they researched in the Wall Street Journal and Bloomberg. Those trades achieved annual rates of return that had been pre-determined by Madoff. BONGIORNO and CRUPI also backdated the purchase dates of purported trades so that they could control the amount of gains reflected in the investment advisory accounts. Further, BONGIORNO processed exceptional gains in the investment advisory accounts that purportedly occurred months before the investment advisory accounts had been established. BONGIORNO also asked certain investment advisory clients to return previously issued Madoff Securities account statements so that she could alter them, and often include additional backdated trades.
CRUPI handled the receipt of funds sent to Madoff Securities by its clients for investment; transferred clients’ funds between and among various Madoff Securities bank accounts; handled client requests for redemptions sent to Madoff Securities by clients; monitored, on a daily basis, funds transferred into and out of the Madoff Securities bank account that was principally used to perpetrate the fraud; and prepared and assisted in the preparation of fabricated documents designed to deceive regulators and outside auditors. Further, CRUPI provided banks with false information in connection with mortgage loans for other Madoff Securities employees.
BONVENTRE was employed at Madoff Securities for 40 years and served as its Director of Operations. BONVENTRE was responsible for maintaining and supervising the production of the principal internal accounting documents for Madoff Securities, including its general ledger, financial statements, and stock record. BONVENTRE directed that false entries be made in the general ledger that concealed the scope of the investment advisory operations and understated Madoff Securities’s liabilities by billions of dollars. For example, from 1997 to 2008, more than $750 million of investment advisory investor funds were used to support Madoff Securities’s Market Making and Proprietary Trading operations, but were not accounted for on Madoff Securities’s books and records, including the general ledger, so as to conceal the true source of the funds. Moreover, as BONVENTRE knew, the general ledger did not accurately reflect the assets contained in the bank and brokerage accounts into which investment advisory investor funds were deposited, and likewise did not reflect the liability of Madoff Securities to its investment advisory clients that arose from the custody of investment advisory client funds in those accounts. The assets and associated liabilities of Madoff Securities’s investment advisory operations, which were omitted from the general ledger, ranged from millions to billions of dollars.
Madoff Securities was required to file Financial and Operational Combined Uniform Single Reports (“FOCUS Reports”) with the United States Securities and Exchange Commission (“SEC”). Those FOCUS Reports require the production of basic information that amounts to a condensed version of a broker-dealer’s general ledger. Because the general ledger was inaccurate, as BONVENTRE well knew, the FOCUS Reports were likewise false because they failed to accurately reflect Madoff Securities’s assets and liabilities. For example, one such report, for the month of April 2006, in the midst of a liquidity crisis, failed to reflect at least $299 million in Madoff Securities liabilities related to $154 million of an investment advisory client’s bonds and the $145 million that Madoff Securities had borrowed using those bonds as collateral. BONVENTRE also provided false FOCUS Reports and other financial documents to banks in connection with Madoff Securities’s bank loans.
In addition, between 2004 and 2007, in connection with audits of Bernard L. Madoff’s U.S. Individual Income Tax Returns, Forms 1040s, BONVENTRE created false, backdated Madoff Securities records to show the tax auditors. Because Madoff had under-reported his income by tens of millions of dollars each year, BONVENTRE created false documents that appeared consistent with Madoff’s tax returns for the purposes of maintaining the falsity of Madoff’s tax returns and deceiving the auditors.
Further, between 2004 and 2008, Madoff Securities was subject to at least five reviews by the SEC and a European accounting firm which was conducting a review of Madoff Securities’s operations on behalf of investment advisory clients. As part of a concerted effort overseen by Madoff to deceive both the SEC and the European accounting firm, BONVENTRE, CRUPI, O’HARA and PEREZ participated in creating numerous false and fraudulent books and records.
O’HARA and PEREZ were employed as computer programmers at Madoff Securities beginning in 1990 and 1991, respectively. They were responsible for developing and maintaining computer programs that supported the operation of the Madoff Securities investment advisory business. For example, O’HARA and PEREZ created special programs that, among other things: created books and records for a small subset of Madoff Securities investment advisory clients to help hide the scope and nature of the investment advisory business; changed the names of account holders to help explain why the SEC would not find investment advisory client securities at the Depository Trust Company (“DTC”); altered details about the number of shares, execution times, and transaction numbers for trades reported on Madoff Securities trade blotters, by employing algorithms that produced false and random results; created false and fraudulent order entry and execution reports that included fictitious times at which orders for equities transactions purportedly were placed; generated fraudulent commission reports; and created fraudulent investment advisory client account statements in a format different from those sent to clients. O’HARA and PEREZ knew that the special programs they developed contained fraudulent information and that they were used in connection with the SEC and European accounting firm reviews.
In addition to convicting the defendants of their participation in securities fraud and related conduct in connection with the Madoff Securities Ponzi scheme, the defendants were convicted on a total of 31 counts – every count that was submitted to the jury – some of which relate to allegations of separate misconduct, including bank fraud and tax fraud offenses. BONVENTRE, for example, was convicted for his participation in an accounting fraud conspiracy that, among other things, included using falsified financial statements and other documents to obtain hundreds of millions of dollars in loans and lines of credit from federally-insured financial institutions. BONVENTRE was separately convicted in connection with creating fraudulent financial records to tax auditors, in an attempt to deceive the Internal Revenue Service and maintain the falsity of Bernard L. Madoff’s own (fraudulent) personal income tax returns.
CRUPI was convicted of a separate bank fraud conspiracy to assist David Kugel – a former supervisory trader in Madoff Securities’s market-making and proprietary trading operation, who pled guilty and agreed to cooperate with the Government in November 2011 – by creating and submitting to federally insured financial institutions falsified documents in support of personal bank loans for Kugel and members of his family.
Finally, BONVENTRE, BONGIORNO, and CRUPI were each convicted in connection with filing false income tax returns on their own behalf, in which each of the three defendants failed to report cash and other benefits they received from Madoff Securities. BONVENTRE was convicted of failing to report millions of dollars in cash and other benefits, including payments on his behalf for his membership in a country club and his son’s private high school tuition. BONGIORNO was convicted of failing to report more than a million dollars in cash payments she received from two “Bernard L. Madoff Special” accounts. And CRUPI was convicted for failing to report tens of thousands of dollars in personal expenses she charged on a corporate credit card.
In total, the jury convicted BONVENTRE, 67, of 20 counts; BONGIORNO, 66, of 10 counts; CRUPI, 53, of 13 counts; and O’HARA, 51, and PEREZ, 48, of eight counts each. A chart containing a description of the counts of conviction and their maximum penalties is attached. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
The defendants will be sentenced in July by U.S. District Court Judge Laura Taylor Swain in Manhattan federal court. BONVENTRE and BONGIORNO will be sentenced on July 28, 2014. CRUPI and O’HARA will be sentenced on July 29, 2014. And PEREZ will be sentenced on July 30, 2014. Judge Swain ordered each of the defendants subject to electronic monitoring pending sentencing and limited home confinement.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation. He also thanked the U.S. Securities and Exchange Commission, the Internal Revenue Service – Criminal Investigations, the New York Regional Office of the U.S. Department of Labor’s Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and the New York Regional Office of the U.S. Department of Labor, Employee Benefits Security Administration for their assistance.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
Assistant United States Attorneys Matthew L. Schwartz, John T. Zach, and Randall W. Jackson are in charge of the prosecution.
Click here to view chart(s)
U.S. v. Daniel Bonventre, et al. S10 Indictment
Fifth Defendant Pleads Guilty to Theft of Mail from Wasco Post OfficesRead the Press Release
FRESNO, Calif. — Mayra Alejandra Soria, 30, formerly of Bakersfield, pleaded guilty today to conspiracy to steal and possess stolen mail and one count of possession of 15 or more unauthorized access devices, United States Attorney Benjamin B. Wagner announced. Soria is the last of five co-conspirators to plead guilty to mail theft crimes after being indicted in May 2013 as part of Operation Broken Mailbox, the United States Postal Inspection Service’s ongoing effort to work with local law enforcement partners to investigate and prosecute stolen mail offenses.
According to court documents, from March 17, 2013 until May 21, 2013, Soria and others engaged in a conspiracy to steal mail in Wasco and elsewhere in the Bakersfield area, in order to steal checks and commit identity theft. As part of the conspiracy, Soria and her co-conspirators fished mail out of U.S. mail collection boxes located at Bakersfield area post offices and then looked for third party information and financial instruments, including checks and money orders to cash. The defendants then altered and negotiated the stolen checks – sometimes by depositing them into accounts they had opened in the names of identity theft victims. In total, Soria and her co-defendants stole checks and other items valued at more than $120,000.
This case was the product of an investigation by the United States Postal Inspection Service with assistance from the Wasco Kern County Sheriff’s Office. Assistant United States Attorney Megan A. S. Richards is prosecuting the case.
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated, “We are working closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those responsible for mail theft to protect postal customer’s mail from theft.”
Soria is scheduled to be sentenced by Judge Lawrence J. O'Neill on June 16, 2014, at 8:30 a.m. Soria faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Co-defendant Eric Alberto Herrera, 26, pleaded guilty to conspiracy to steal mail in December and was sentenced to 24 months imprisonment. Co-defendant Elisee Torres-Pacheco, 36, pleaded guilty to possession of stolen mail and was sentenced to 36 months of probation. Co-defendants Brisa Celeste Castillo, 33, and Mateo Manuel Santiago, 25, each have pled guilty to conspiracy to steal mail and are awaiting sentencing by Judge Lawrence J. O’Neill. Castillo faces a maximum statutory penalty of five years in prison and a $250,000 fine. Her sentencing is set for May 5, 2014. Santiago, who pled guilty to one count of unlawfully possessing a postal mail key in addition to conspiracy, faces a maximum statutory penalty of ten years in prison and a $250,000 fine. His sentencing is set for April 28, 2014.
Endoscopy Center Agrees to Ensure Necessary Aid to Visually Impaired PatientsRead the Press Release
BIRMINGHAM -- The Alabama Digestive Health and Endoscopy Center, a joint venture operating in leased space on the Brookwood Medical Center campus, has agreed to take action to ensure that patients who are blind or visually impaired receive necessary aids or services to enable them to communicate effectively with doctors and staff, announced U.S. Attorney Joyce White Vance.
ADHEC and Brookwood Medical Center each have entered a settlement agreement with the U.S. Department of Justice. A key provision of the settlement is a commitment to provide qualified readers, taped texts, audio recordings, Brailed materials, large-print materials or signature guides to patients -- or a family member, friend or associate assisting in a patient's care -- who are blind or visually impaired.
The Justice Department initiated negotiations after a visually impaired woman filed a complaint against ADHEC in April 2013 under the Americans with Disabilities Act. The woman claimed that staff at ADHEC failed to provide auxiliary aid to ensure effective communication with her. Rather than reading her the medical and legal documents for her to sign, the woman claimed the endoscopy center staff gave the documents to her husband for his signature.
ADHEC and Brookwood Medical Center dispute the woman's allegations and deny the endoscopy center failed to comply with Title III of the ADA, which prohibits public accommodations from discriminating against someone on the basis of disability in gaining full and equal access to its goods, services, facilities and privileges. The act also requires public accommodations to provide auxiliary aids and services if needed to ensure effective communication.
ADHEC and Brookwood Medical Center cooperated with the government's investigation and acknowledged their legal obligation, as well as their shared interest in providing blind and visually impaired individuals with the assistance necessary to communicate fully with staff, caregivers and doctors.
Other provisions of the settlement include: • That the determination of whether, and which, aids a blind or visually impaired patient may need must be made at the time an appointment is scheduled or on the patient's arrival. ADHEC and Brookwood each will assess a patient's communication abilities and needs as part of each initial patient assessment.
• That all patients and companions who may need additional communication aids or services will be notified of the services available to them, regardless of whether the patient or companion has requested assistance.
• If the endoscopy center or the medical center staff believe that providing additional communications aids or services might assist in providing medical services to a patient, but neither the patient nor the patient's companion has requested assistance, each will inform the patient or companion that such assistance is available and free.
• Provide mandatory ADA training, annually, to physicians, employees and staff who might interact with patients or their companions on how to identify the communication needs of visually impaired patients and patient companions. The training also will include the types of auxiliary aids and services available and the notification procedures for alerting staff and physicians when patients and companions who might need those services schedule appointments, tests, therapies or other health care services.
• The agreement and the obligations are for a term of two years.
Assistant U.S. Attorney Carolyn W. Steverson represented the government in this matter.Eagle Butte Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Denver Spotted Horse, age 30, was indicted on March 11, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 17, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, a mandatory minimum period of at least 5 years of supervised release, with a violation of a condition of release possibly resulting in 2 years of additional incarceration on any such revocation, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between July 1, 2013, and March 11, 2014, Spotted Horse, who had a prior sexual assault conviction in Minnesota, knowingly failed to register and update his registration while he was living on the Cheyenne River Sioux Indian Reservation.
The charge is merely an accusation and Spotted Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Spotted Horse was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Dupree Man Charged with Assault with A Dangerous Weapon and Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that a Dupree, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Lester Delbert Clown, age 30, was indicted on March 11, 2014, and he appeared before U.S. Magistrate Judge Mark A. Moreno on March 17, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Clown is alleged to have assaulted an adult male with a knife in December 2013 in Dupree, giving the victim three different stab wounds. The charges are merely an accusation and Clown is presumed innocent until and unless proven guilty.
Crips Gang Member Sentenced to 168 Months in PrisonRead the Press Release
Earlier today, at the United States Courthouse in Brooklyn, New York, Thomas Harris, a member of the Crips gang, was sentenced to 168 months in prison. On January 5, 2013, Harris pled guilty to charges of robbery conspiracy and brandishing of a firearm.1
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Thomas J. Cannon, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), New York Field Office.
“Harris and his fellow gang member, Wendell Jenkins, terrorized the communities of Brooklyn and Queens by committing a spree of carjackings,” stated U.S. Attorney Lynch. “His senseless acts of violence have now earned him a home in a federal prison for the next 14 years.”
As part of his plea agreement, Harris admitted that he participated in six carjackings or attempted carjackings and two home invasion robberies between April 10, 2010 and February 28, 2011. According to the government’s sentencing memorandum, during one attempted carjacking in Jamaica, Queens, Harris and Jenkins forced a woman to give them her ATM cards and ATM PINs, and then forced the victim into the trunk of her car as they drove to nearby ATMs, where they stole $2,000 from her bank accounts. They then left her abandoned on the side of the road.
In another instance, the defendants attempted to carjack a mother and her young child in the drive-through of a McDonald’s restaurant in East Flatbush, Brooklyn. The defendants fled only after the woman panicked, took her foot off the car brake, and hit another car. Undeterred, the team then committed an armed carjacking of an elderly man a few blocks away.
After the arrest of his co-defendant Jenkins, Harris fled to Oakland, California, where he was arrested by Deputy U.S. Marshals. Harris possessed two kilograms of marijuana, 2.9 grams of methamphetamine and three firearms, including an assault-style rifle, at the time of his arrest.
The sentencing proceeding was held before the Honorable Frederic Block, United States District Judge for the Eastern District of New York.
The government’s case was prosecuted by Assistant United States Attorney Matthew Amatruda.
The Defendant:
THOMAS HARRIS
Age: 31
___________________________________________________________________________
1 On October 5, 2013, co-defendant Wendell Jenkins was sentenced to 154 months in prison following his guilty plea to charges of robbery conspiracy and possession of a firearm.
Corrupt U.S. Customs and Border Protection Officer Sentenced to 7.5 YearsRead the Press Release
Veteran U.S. Customs and Border Protection Officer Lorne “Hammer” Jones was sentenced today by U.S. District Judge Marilyn Huff to 7½ years in custody for his role in a decade-long crime spree in which he sold his badge to alien-smuggling groups and ultimately to marijuana transportation cells working for Mexican drug cartels. In court, the defendant acknowledged he has waived his right to appeal.
At today’s sentencing and during the December 2013 trial, federal prosecutors Andrew Schopler and W. Mark Conover described the scheme Jones employed to allow over 30,000 kilograms of drug cartel marijuana and multiple illegal aliens into the United States. Jones’ corruption began by first waving cars and vanloads of aliens and drugs through his lane at the San Ysidro port of entry, and later escalated to smuggling tractor-trailers jammed with marijuana through the commercial port at Otay Mesa.
Jones, an inspector since 1994, worked at both the San Ysidro and Otay Mesa border crossings and had been a canine officer since the 1990s. He was indicted by a federal grand jury and arrested at work in 2010, charged with conspiracy to commit bribery and to smuggle drugs and aliens.
A dozen witnesses testified that Jones was on the take, including Michael Taylor, a former colleague and friend who was also being paid by smugglers to corruptly allow contraband into the United States; Jones’ ex-wife, who recruited him to be a smuggler; a friend and financial adviser who testified that the two had discussed ways to hide ill-gotten gains, and who had personally used Jones to smuggle his girlfriend across the border twice; and several of Jones’ co-conspirators.
Prosecutors also presented evidence from a database that tracks information about people crossing the border – such as license plate numbers, names of those who were inspected and when, and by whom. During trial, prosecutors said the data proved that Jones allowed known load vehicles and drivers for drug trafficking organizations to pass though his lanes for years, without being inspected.
According to testimony, Jones volunteered to work overtime shifts as a primary inspector so he could wave through vans jammed with aliens and drugs, and trucks full of marijuana. Jones also employed a beeper code system to notify smugglers which one of the 24 inspection lanes he was working when their loads approached the border crossing. But the system failed in 2002 when Jones was randomly and unexpectedly reassigned to another position, and a load driver was forced to abandon his van full of drugs in the inspection line. In a second failure months later, a van stuffed with four nearly three tons of marijuana was intercepted in the lane assigned to Jones just a few just car lengths away from him. While Jones’ furiously tried to “waved on” the cars in front of the load vehicle, the driver and passenger of the load vehicle jumped out of the van and attempted to escape from several inspectors who hurried over to apprehend them. Notably, Jones did not try to apprehend the smugglers; rather, as federal prosecutor W. Mark Conover said during closing argument, Jones was frozen “[s]itting in his booth, paralyzed with fear. His load was caught.” This marijuana seizure remains the largest ever at the San Ysidro Port of Entry.
“Lorne Jones allowed greed to destroy everything his badge represents,” said U.S. Attorney Laura Duffy. “We hope this outcome serves as a reminder that we will not allow rogue officers to compromise national security and the public trust.”
Pete Flores, CBP Director of Field Operations in San Diego, said: “The actions that Lorne Jones has been convicted of tarnish the badge he wore, and I’m appreciative of the work done to bring him to justice. My CBP officers are hard-working professionals who are vigilant in their protection of the U.S. border and service of the traveling public. CBP does not tolerate corruption within our workforce and we will seek out and work to prosecute to the fullest extent of the law any employees who commit unethical or unlawful acts that tarnish our badge.”
FBI Special Agent in Charge (SAC) Daphne Hearn commented, “When a law enforcement officer violates his oath to protect and serve the citizens of this nation, it undermines the public's trust. When that happens, the FBI and our law enforcement partners at the Border Corruption Task Force are determined to restore the public's confidence and trust by rooting out corruption at all levels of government.” The public can report alleged instances of corruption by calling the FBI hotline at 1-877-NO-BRIBE.
“I am pleased by today's sentence,” said Dennis M. McGunagle, Special Agent in Charge of Department of Homeland Security, Office of Inspector General. “The DHS OIG is committed to working with our law enforcement partners to identify and aggressively investigate allegations of corruption to protect our borders and the integrity of DHS personnel, programs, and operations.”
DEFENDANT Case No. 10cr4141-H Lorne Leslie Jones, aka “Hammer” Age: 50 Chula Vista, CA CHARGESConspiracy to Commit Offenses Against the United States, in violation of
Attempted Importation of Marijuana, in violation of 21 U.S.C. § 841 INVESTIGATING AGENCY
18 U.S.C. § 371Federal Bureau of Investigation, Border Corruption Task Force
Department of Homeland Security, Office of Inspector General
Customs and Border Protection, Office of Field Operations*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Con Man Convicted of Wire Fraud Using Fake $20,000,000 Trust AccountRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced that last Friday, JOHNATHAN E. WILLIAMS, age 34, of Baton Rouge, Louisiana, pled guilty before Chief U.S. District Judge Brian A. Jackson to wire fraud in connection with a multiyear fraud scheme. WILLIAMS faces up to twenty (20) years in prison, three (3) years of supervised release following imprisonment, a fine of up to $250,000, and forfeiture of the proceeds of the fraud.
At Friday’s hearing, WILLIAMS admitted that from 2008 through 2011, he defrauded numerous victims to obtain money that he could use to fund his gambling activity and other personal expenses. To accomplish his scheme, WILLIAMS would solicit and obtain money from victims by falsely representing that he had a substantial trust fund, containing millions of dollars, to which he would gain full control upon reaching a certain age. WILLIAMS would also falsely represent that he worked for a flooring company and that he needed money on a short-term basis in order to place orders for supplies. One of the victims was a man named J.O., in Florida, who began sending money to WILLIAMS and one of his associates in February of 2009. In June of 2009, in response to the victim’s concerns about repayment, WILLIAMS knowingly faxed the victim a false and fictitious letter, on an attorney’s letterhead, falsely representing that WILLIAMS had a trust fund containing “in excess of $20 million.” The letter induced the victim to continue sending money to accounts that WILLIAMS, ultimately losing approximately $300,000 in the scheme. In total, as he admitted today in Court, WILLIAMS defrauded his victims out of more than $500,000.
U.S. Attorney Green stated: “This office, together with the FBI and our other federal, state, and local partners, will continue to aggressively pursue those who engage in significant and sophisticated fraud schemes by preying on the good will of others. In addition to the direct impact on its victims, such frauds dissuade some who might otherwise lend a helping hand to someone truly deserving.”
The ongoing investigation is being conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a Deputy Criminal Chief of the Criminal Division.
Child Exploitation Cases: Clovis Teacher Pleads Guilty to Producing Child Pornography, Madera and Modesto Men Sentenced to Long Prison Terms, Bakersfield Man Sentenced for Probation ViolationRead the Press Release
FRESNO, Calif. — A teacher from Clovis pleaded guilty today to producing child pornography, a Madera man was sentenced to 25 years in prison, a Modesto man was sentenced to 17 years in prison, and a Bakersfield man was returned to prison for violating the terms of his post-prison supervision, United States Attorney Benjamin B. Wagner announced.
“This office has established a national reputation for its prosecution of child predators and others who exploit children,” said U.S. Attorney Wagner. “One of the U.S. Department of Justice’s strategic priorities is protecting the most vulnerable members of society; cases like these make clear why we take this mission so seriously.”
“As these cases make abundantly clear, local and federal law enforcement are allied in the effort to protect children and combat the proliferation of child pornography,” said Mike Prado, resident agent in charge for Homeland Security Investigations (HSI) Fresno. “The urgency of our mission cannot be understated, particularly in the cases highlighted today that involved local victims whose innocence was stolen by the defendants.”“The Federal Bureau of Investigation and our law enforcement partners are committed to identifying and investigating all individuals who possess and trade images that depict the victimization of young children,” said Special Agent in Charge Monica M. Miller of the Sacramento FBI. “Repeat offenders such as Reddell and Bowersox are of particular concern as the continued, despicable behavior, despite a prior conviction, demonstrates the threat posed to our innocent children.”
Former Clovis Teacher Pleads Guilty to Producing Child Pornography
Former Clovis Unified School District teacher Neng Yang, 46, of Clovis, pleaded guilty today to two counts of sexual exploitation of a minor. According to the plea agreement, Yang admitted to using a computer device and electronic storage media to record and store videos depicting the sexual abuse of a minor under 12 years old on multiple occasions in January 2012. Yang was charged with four counts of producing child pornography and has been in federal custody since January 27, 2012.Yang is scheduled to be sentenced by Senior United States District Judge Anthony W. Ishii on June 2, 2014. The plea agreement contemplates a sentence of 38 years. The actual sentence, however, will be determined at the discretion of the court at the hearing.
This case is the product of an investigation by the Central California Internet Crimes Against Children Task force, specifically the Clovis Police Department and the Fresno U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Brian W. Enos is prosecuting the case. Docket #: 1:12-cr-037 AWI
Madera Parolee Sentenced to 25 Years in Prison for Receipt of Child Pornography
Frank Charles Reddell, 39, of Madera, was sentenced today by U.S. District Judge Lawrence J. O'Neill to 25 years in prison for receiving child pornography. According to court documents, on December 26, 2012, Reddell was arrested by a California State Parole agent who observed Reddell sitting in his car in a parking lot viewing images of child pornography. At the time of his arrest, Reddell was on parole. When agents searched the Reddell’s computer and a computer thumb drive identified as belonging to him, they found many files containing child pornography. Reddell also had a 2004 conviction in the Tuolumne County Superior Court for lewd and lascivious conduct with a minor. Reddell pleaded guilty to receipt of child pornography on December 2, 2013.This case was the product of an investigation by the Fresno U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Madera County Sheriff’s Office, the Madera Police Department, and the California Department of Corrections & Rehabilitation. Assistant United States Attorney Brian W. Enos prosecuting the case. Docket # 1:13-cr-090 LJO
Modesto Man Sentenced 17 Years in Prison for Receipt and Distribution of Child Pornography
Ted Lee Duran, 49, of Modesto, was sentenced by Senior U.S. District Judge Anthony W. Ishii to serve 17 years in prison and a lifetime term of supervised release for receipt and distribution of child pornography. According to court documents, a relative of Duran went to the Modesto Police Department and reported finding child pornography on a phone that Duran had borrowed. Additional investigation revealed that Duran had received or distributed more than 600 images of minors being sexually abused, some of which depicted violence or were of sadistic conduct.This case was the product of an investigation by the FBI’s Modesto office in collaboration with the Ceres and Modesto Police Departments. It was prosecuted by Assistant U.S. Attorney David Gappa. Docket # 1:12-cr-384 AWI
Bakersfield Man Returns to Prison after Serving a Four-Year Sentence
Christopher Kent Bowersox, 41, of Bakersfield, was sentenced by Senior U.S. District Judge Anthony W. Ishii to serve three months in custody as a result of two violations of his supervised release conditions. Bowersox, a former Bakersfield Police detective, began serving a 120-month term of supervised release after he completed a four-year prison term, imposed after his conviction for possession of child pornography, on August 7, 2013. Terms of supervision included restrictions on accessing the Internet and pornography. Bowersox admitted that on December 11, 2013, he used a computer to access pornography on the Internet. Judge Ishii today re-imposed a term of supervision for 117 months during which Bowersox will be required to register as a sex offender, and his access to minors, computers, and the Internet will continue to be restricted.The case was originally investigated by the Federal Bureau of Investigation and the Bakersfield Police Department with assistance from the Kern County Sheriff’s Office. It was prosecuted by Assistant U.S. Attorney David Gappa. (1:10-cr-082 AWI).
Charleston Attorney Sentenced for Tax EvasionRead the Press Release
Lawyer swindled more than $1 Million dollars from clients and investors
Charleston, W.Va. – Lawyer Harold “Hal” Albertson, 65, was sentenced today in Charleston, West Virginia, by United States District Court Judge Thomas E. Johnston to two years in federal prison and ordered to pay more than a million dollars in restitution to former clients, investors, and the Internal Revenue Service. Albertson previously pleaded guilty to evading over $100,000 in federal taxes. As part of his plea agreement, Albertson also admitted that he lured clients into investing money with him by promising a high rate of return. Albertson never paid the clients the high rate of return. Instead of investing their money, he used it to pay his own debts. Albertson admitted he cashed clients’ checks and used the proceeds to repay someone else.
This case was investigated by the West Virginia State Police and the Internal Revenue Service.
Case Update: Central Valley Marijuana TraffickersRead the Press Release
FRESNO, Calif. — Marijuana cultivators from Inyo, Fresno, Kern and Stanislaus Counties entered guilty pleas today in three cases and sentenced in two for their involvement in separate large-scale marijuana cultivation operations, according to U.S. Attorney Benjamin B. Wagner.
Mexican Nationals Plead Guilty to Forest Marijuana Operation (1:13CR340 LJO)
Jose Aguilar Santoyo (“Aguilar”), 27, of Michoacàn, Mexico, and Jose Salvador Garcia Rodriguez (“Garcia”), 23, of Guanajuato, Mexico both entered guilty pleas to conspiring to manufacture, distribute and possess with intent to distribute marijuana grown on public land. According to court documents, U.S. Forest Service agents seized 3,405 marijuana plants, 350 pounds of processed marijuana, digital scales, highly toxic and illegal rodenticides, including uFuran or Carbofuran, and 2,200 pounds of trash from a marijuana cultivation operation in the Hogback Creek area of the Inyo National Forest. Agents found Garcia at the grow site. Agents found Aguilar at a stash house associated with the grow site in Romoland in Riverside County. Marijuana shake and residue, shipping labels associated with the shipment of marijuana to Chicago, and a firearm were also found at the stash house. In pleading guilty, Aguilar and Garcia both agreed to pay $6,572.14 to the U.S. Forest Service for Hazmat removal and dumping fees associated with eradication of the grow site.Aguilar and Garcia are scheduled for sentencing on June 16, 2014. Aguilar faces a mandatory minimum prison term of five years and a maximum term of forty years, along with a fine of $5 million. Garcia faces a maximum prison term of twenty years and a fine of $1 million. Both are also subject to deportation to Mexico, upon completion of any prison term imposed. Their actual sentences will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was investigated by the U.S. Forest Service, U.S. Drug Enforcement Administration (DEA), Homeland Security Investigations of Immigration and Customs Enforcement (ICE), Inyo County Sheriff’s Office, and Riverside County Sheriff’s Office. The Environmental Protection Agency (EPA) also assisted in the investigation.
Fresno Man Pleads Guilty in River Marijuana Operation (1:12CR342 AWI)
Sam Kounhavong, 51, of Fresno, Calif., also entered a guilty plea to conspiring to manufacture, distribute and possess with intent to distribute marijuana grown beside the San Joaquin River in the vicinity of Newman in Stanislaus County. In pleading guilty, Kouhnavong acknowledged that he and four other men cultivated 907 marijuana plants under the guise of compliance with California medical marijuana law. Although federal law does not recognize a medical purpose for marijuana, Kounhavong admitted that the marijuana was grown for profit without any medical purpose. During the execution of a search warrant at the grow site, agents also found a firearm and saw that water from the San Joaquin River had been diverted to irrigate the marijuana plants.
Kounhavong faces a maximum prison term of 20 years and a fine of up to $1 million. His actual sentence will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables. He is scheduled for sentencing on June 2, 2014.The case was investigated by federal agents from the DEA and Stanislaus Drug Enforcement Agency, a multi-agency drug task force in Modesto.
Fresno Man Sentenced for Ag Grow (1:12CR2341 LJO)
Phonepaseuth Phaphilom, 27, of Fresno, was sentenced to 46 months in prison followed by 36 months supervised release for conspiring to cultivate, distribute and possess with intent to distribute marijuana grown on an agricultural parcel on Marks Avenue in rural southwest Fresno. During the execution of a federal search warrant there, narcotics agents found Phaphilom with four other men from out of the area, 2,932 marijuana plants, and a firearm. The men claimed the plants were being grown for medical reasons. While federal law does not recognize the medical use of marijuana, several of the men acknowledged that the operation was for profit, in violation of California law. Phaphilom, who was detained pretrial based in part on a criminal history that included weapons and narcotics violations, said he was going to sell the marijuana “up North” for $800 a pound. Based on a conservative one pound per plant yield, the cultivation operation was valued at over $2.3 million. In addition, court records indicate that some of the marijuana was destined for Las Vegas. The State of Nevada does not recognize the medical use of marijuana.
The case against Phaphilom was investigated by the DEA and Fresno County Sheriff’s Office.
Assistant United States Attorney Karen A. Escobar prosecuted the above cases.
Caldwell Man Pleads Guilty to Possessing Sawed-Off ShotgunRead the Press Release
BOISE – Anthony Michael Payment, 21, of Caldwell, Idaho, pleaded guilty today in United States District Court in Boise to unlawfully possessing a sawed-off shotgun, U.S. Attorney Wendy J. Olson announced.
According to information presented in court, Payment possessed a Bay State, 20 gauge sawed-off shotgun on August 19, 2013. Probation officers and officers with the Nampa Police Department responded to a residence after learning that Payment possessed a firearm. Officers found the sawed-off shotgun and Payment was arrested a short time later. The barrel of the shotgun measured less than twelve inches in length. The National Firearms Act requires such a shotgun to be registered if the barrel is less than eighteen inches in length.
The charge is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years supervised release. The government is also seeking forfeiture of the sawed-off shotgun. Sentencing is set for June 3, 2014, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
The case was investigated by the Idaho Department of Probation and Parole, the Nampa Police Department, the Treasure Valley Metro Violent Crimes Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Bakersfield Loan Officer Sentenced in Crisp & Cole Mortgage Fraud SchemeRead the Press Release
FRESNO, Calif. — United States District Judge Lawrence J. O’Neill sentenced Jayson Peter Costa, 41, of Bakersfield, to 78 months imprisonment today for his role in an extensive mortgage fraud scheme that ran from January 2004 to September 2007, United States Attorney Benjamin B. Wagner announced. Costa was ordered to self-surrender by May 5, 2014.
According to court documents, David Marshall Crisp and Carlyle (“Carl”) Lee Cole owned and operated Crisp & Cole Real Estate (CCRE), a real estate brokerage, and Tower Lending, an affiliated mortgage brokerage. Between January 2004 and September 2007, these defendants and others at CCRE and Tower Lending carried out a conspiracy to defraud mortgage companies and federally-insured financial institutions. They used straw purchasers to acquire properties at inflated prices with funds borrowed from lenders, often using 100 percent financing and based on false and fraudulent loan applications. The conspirators frequently resold the properties from one straw buyer to another, each time at an inflated, higher price in order to extract the purported increased “equity” from the property for their benefit. Ultimately, most of the properties were foreclosed upon after the defendants failed to make the mortgage payments when due.
According to his plea agreement, Costa worked as a loan officer at Tower Lending but was not properly licensed and therefore could not legally process any of the loan applications as he did. Co-defendants Crisp and Cole, and others at CCRE and Tower Lending, knew that Costa was not properly licensed but nonetheless allowed Costa to continue acting as a loan officer. Costa admitted that while at Tower Lending he submitted numerous false and fraudulent loan applications to lenders for co-conspirators and other straw buyers, and also purchased properties as a straw buyer, all in furtherance of the conspiracy. When the California Department of Real Estate investigated CCRE and Tower Lending during the period of the conspiracy, Costa, co-defendants Crisp and Cole, and others concealed that Costa was working as an unlicensed loan officer for Tower Lending. The defendants falsified the loan paperwork on loans prepared and handled by Costa to make it appear that co-defendant Cole had been the loan officer on those loans. Costa admitted in his plea agreement that he caused lenders losses of at least $7,580,019 due to his role in the conspiracy.
On February 24, 2014, Carl Cole was sentenced to 17 years and seven months in prison. Caleb Lee Cole was sentenced to five months in prison. Sentencing dates for the remaining defendants are as follows: David Marshall Crisp and Jennifer Anne Crisp on March 31, 2014; Michael Angelo Munoz on April 7, 2014; Jeriel Salinas on May 12, 2014; and Sneha Mohammadi on June 9, 2014. Robinson Nguyen has completed his 27-month sentence. A trial for another co-defendant is set for April 8, 2014 and the charges are only allegations as to that defendant; she is presumed innocent until and unless proven guilty beyond a reasonable doubt.
In 2009 and 2010, five separate cases were brought against five defendants who pleaded guilty to charges relating to this scheme. Scheduled to be sentenced on May 27, 2104 are: Kevin Patrick Sluga (1:10-cr-001 – four counts of wire fraud for false verification of employment letters), and Leslie Sluga (1:10-cr-002 – two counts of wire fraud for acting as a straw buyer) Scheduled to be sentenced on June 2, 2014 are: Jerald Allen Teixeira (1:09-cr-375 – one count of wire fraud for making false statements on loan documents), Megan Balod (1:10-cr-016 – four counts of wire fraud for acting as a straw buyer), and Christopher Lance Stovall (1:10-cr-271 – four counts of mail fraud for making false statements on loan documents).
The maximum statutory penalty for mail fraud is 30 years in prison and a $1 million fine. The maximum statutory penalty for wire fraud is 20 years in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Kirk Sherriff, Henry Carbajal III, and Christopher Baker are prosecuting the case.
This case was done in coordination with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
21 March 2014
Wolf Point Man Sentenced to 10.5 Years for Molesting and Photographing ChildRead the Press Release
The United States Attorney's Office announced today after molesting and taking sexually explicit pictures of a child for two years, WAYLON NOVELLE BLOUNT, 36, of Wolf Point, was sentenced in federal court on March 18, 2014, to ten and a half years in prison and fifteen years supervised release by U.S. District Court Judge Brian M. Morris.
Blount pleaded guilty to abusive sexual contact and possession of child pornography, after it was discovered he had molested a child and forced her to wear women's panty hose over the course of ages 10 to 12-year-old. After forcing her to put on pantyhose, he would direct her to pose in sexual positions as he took photographs. Judge Morris addressed the defendant at sentencing, describing Blount's actions as "morally reprehensible."
In 2012, when the victim was 12-years-old, Blount was trying to molest her when she fled and called 911 as she hid behind a house in Wolf Point, Montana. Police found her crying and shaking. She was interviewed and identified Blount as the person who has assaulted her and gave graphic details of times and places in which she had been molested. as well as molestation the night before she fled and called 911.
Because there is no parole in the federal system, the (truth in sentencing( guidelines mandate that Blount will likely serve all of the time imposed by the court. In the federal system, Blount does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a joint effort by the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice.
Windermere CEO Pleads Guilty to Twenty-One Counts of Wire Fraud, Money Laundering and Aggravated Identity TheftRead the Press Release
Orlando, FL – United States Attorney A. Lee Bentley, III announces that Michael Rivers (56, Windermere) yesterday pleaded guilty to one count of conspiracy to commit wire fraud, eight counts of wire fraud, one count of conspiracy to commit money laundering, eight counts of money laundering, and three counts of aggravated identity theft. Additionally, Kim Rivers (46, Windermere) pleaded guilty to three counts of aggravated identity theft. Michael Rivers faces a maximum penalty of 20 years in federal prison on each count of wire fraud, 10 years’ imprisonment on each count of money laundering, and a mandatory minimum of 2 years in prison on each aggravated identity count. Kim Rivers faces a mandatory minimum penalty of 2 years, up to 6 years in federal prison.
According to court documents, Michael and Kim Rivers created an alleged international bank software company named Global Business Genesis, LLC, (“GBG”) that was headquartered in Orlando, Florida. Michael Rivers was the Chief Executive Officer and Kim Rivers was the Executive Assistant of that company. GBG allegedly provided wireless bank software to major banks in developing countries. This software would enable customers to transfer money between international accounts, as well as issue prepaid currency and prepaid credit cards overseas.
During the course of the charged conspiracy and fraudulent scheme, Michael and Kim Rivers litigated multiple civil state cases in the Ninth Judicial Circuit of Florida, a bankruptcy proceeding in the U.S. Bankruptcy Court for the Middle District of Florida, and a civil action brought by the Securities and Exchange Commission (SEC) in the U.S. District Court for the Middle District of Florida. Judgments were entered against Michael and Kim Rivers and the entities they controlled, in state and federal court. During the course of the charged conspiracy, the couple used investor funds to support their lifestyle, including obtaining a $114,000 exotic sports car, private schooling in excess of $230,000 for their children, and living in a home with a delinquent mortgage well over $2 million, all while delaying payments and putting off their creditors.
Throughout, Michael and Kim Rivers told state and federal courts, the government, creditors, and opposing litigants, that Michael Rivers had debilitating cancer and was receiving treatment in Argentina. The couple often claimed that Michael Rivers was medically incapacitated in Argentina and that, for that reason, they were unable to appear in court proceedings and at meetings in the United States. Those false representations were made via letters, e-mails, court filings and proceedings, as well as by representatives for the couple. During the execution of search warrants, law enforcement found items, including correspondence, templates, letterhead, altered documents, and computer files and images of signatures and seals that the defendants used to create and discuss the creation of the forged documents, which they used during the course of the fraud. Elements used to create forged documents such as attorney letters, doctors’ letters concerning cancer treatment, insurance, and documents from financial institutions and government entities were also recovered during the search.
On December 11, 2012, Michael Rivers sent an e-mail to Kim Rivers, instructing her and another co-conspirator in a ruse on how to portray themselves as employees of a law firm (“Fried Frank Law Firm”). In January 2013, Michael Rivers was in London, England, trying to solicit investors. After receiving some resistance from investors, he suggested they call “Fried Frank Law Firm” to speak with an attorney who could vouch for the authenticity of GBG and its license agreements. Michael Rivers called Kim Rivers who pretended to work at the law firm. Afterwards, another co-conspirator pretended to be a law associate at Fried Frank Law Firm and stated that due diligence had been conducted.
Victims confirmed that due to the ruse perpetrated by Michael and Kim Rivers, where they portrayed themselves as a reputable law firm vouching for the solvency of GBG, the victim and other investors’ fears were allayed and they subsequently wired nearly $1 million dollars during that portion of the scheme.
Michael and Kim Rivers also defrauded local investors in the Orlando area. From that scheme, they used money to obtain luxury automobiles, including a Fisker Karma and a Jaguar XK-R, Cirque Du Soleil tickets, and other lifestyle items.
This case was investigated by the United States Secret Service. It is being prosecuted by Assistant United States Attorneys Christopher LaForgia and Daniel C. Irick.
Williamson County Man Pleads Guilty to Federal Firearm OffenseRead the Press Release
Follow @SDILNewsOn March 20, 2014, Sherman L. Allen, Jr., a/k/a “Larue,” 29, of Marion, Ill., pled guilty to a one-count indictment charging Possession of a Firearm by a Felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Evidence at the plea hearing established that, on July 29, 2013, agents executed a search warrant at a Marion residence where Allen had been residing. Agents located a Lorcin .25 caliber pistol, which Allen admitted was his. Because Allen had previously been convicted of a felony, he is prohibited from possessing firearms.
The firearm offense carries a penalty of up to 10 years in federal prison, to be followed by 3 years of supervised release, and a fine of $250,000. Allen is currently being held without bond pending a June 18, 2014, sentencing hearing.
The investigation was conducted by the Southern Illinois Enforcement Group and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Illinois State Police Special Weapons and Tactics Team and Williamson County State’s Attorney’s Office also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
West Palm Beach Resident Charged in Identity Theft Scheme Pleads GuiltyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS-CI), and Ric L. Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, announce that Kawana Brown, 36, of West Palm Beach, pled guilty for her participation in a wide-ranging identity theft scheme.
Specifically, Brown pled guilty to one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. ' 1349 (Count 1), three counts of wire fraud, in violation of 18 U.S.C. ' 1343 (Counts 2, 8, and 13), and two counts of aggravated identity theft, in violation of 18 U.S.C. ' 1028A (Counts 25 and 38).
Sentencing is scheduled for May 30, 2014 at 3:00 p.m. before U.S. District Judge Kenneth Marra. At sentencing, the defendant faces a maximum of twenty years in prison for each count of conspiracy to commit wire fraud, and wire fraud, and a mandatory term of two years in prison for the aggravated identity theft charge, to run consecutively to any other sentence.
The scheme involved, in part, stealing the identities of patients at a medical facility in central Florida. Those identities were then used to file fraudulent federal income tax returns in the patients’ names seeking fraudulent refunds, and obtaining fraudulent credit cards which were then used to make fraudulent purchases.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Palm Beach County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Stephen Carlton.
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.
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS (before Magistrate Judge Christopher A. Nuechterlein:)
Brian Baker, 23, of South Bend, Indiana, Indiana pled guilty to the felony offenses of possessing heroin with intent to distribute and possessing a firearm in furtherance of a drug trafficking crime. The magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.Sentencing has been set for 6/26/2014.This case is being prosecuted by Assistant United States Attorney Donald Schmid.
Robert D. Carrico, 29, of South Bend, Indiana, Indiana pled guilty to the felony offenses of possession of controlled substances with intent to distribute and possession of firearms in furtherance of federal drug trafficking crimes. The magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.Sentencing has been set for 6/25/2014.This case is being prosecuted by Assistant United States Attorney Donald Schmid.
DISPOSITION( before District Judge Robert L. Miller, Jr.)
Abraham DeLuna-Esparza, 39, of South Bend, Indiana was sentenced to 78 months imprisonment to be served concurrently with 3 years supervised release after pleading guilty to the felony offenses of illegally re-entering the United States after being deported subsequent to a conviction for an aggravated felony andto possessing cocaine/marijuana with intent to distribute.According to documents filed in this case, DeLuna was arrested in March 2010 for the possession of approximately 15 pounds of marijuana.He was convicted sentenced to 3 months incarceration.DeLuna was then turned over to the Department of Homeland Security for removal from the United States because he was a citizen of Mexico.DeLuna was formally removed to Mexico in June 2010 through Laredo, Texas.At no time thereafter was Deluna given any permission to lawfully re-enter the United States.In December 2013, Deluna was found at his residence in South Bend, Indiana.Agents and police searched the home and recovered a loaded Ruger 9 mm handgun, 47 pounds marijuana, and 493.3 grams of cocaine (powder).This case was the result of an investigation by Homeland Security Investigations and the South Bend Police Department.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Week in Review – HammondRead the Press Release
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEA:
Linda Rosenberg, 59, pled guilty before to the felony offenses of conspiracy to receive kickbacks for the referral of Medicaid and Medicare patients to other service providers, dispensing a controlled substance outside of the scope of professional practice and misbranding.This charge was filed as a result of an investigation by the Drug Enforcement Administration.This case is being prosecuted by Assistant United States Attorney Diane Berkowitz.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITION:
Kenneth Robinson, 36, of Illinois, was sentenced by Chief Judge Philip Simon tomonths imprisonment and years of supervised release after pleading guilty to the felony offense of health care fraud by submitting false claims to Indiana Medicaid for Medicaid recipients’ physician office visits in July 2011.According to documents filed in this case, Robinson caused over $5,000 in medical claims to be submitted to not only Indiana Medicaid but also to other medical insurance providers including the Medicare program. This case was a result of an investigation by the Federal Bureau of Investigation, the Medicaid Fraud Control Unit, the US Department of Health and Human Services and the Department of Labor.This case was prosecuted by Assistant United States Attorney Diane Berkowitz.
Week in Review – Fort WayneRead the Press Release
PLEAS (before District Judge Roger B. Cosbey:)
Bryant Davis, 39, of Fort Wayne, Indiana, Indiana pled guilty to the felony offense of being a felon in possession of a firearm. The magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.Sentencing has not been scheduled.This case is being prosecuted by Assistant United States Attorney Anthony Geller.
Matthew Vanschoick, 27, of Fort Wayne, Indiana, Indiana pled guilty to the felony offense of bank robbery. The magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation.Sentencing has not been set.This case is being prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
DISPOSITIONS (before District Judge Theresa L. Springmann:)
Brandon Betz, 33, of Bluffton, Indiana was sentenced to 46 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of retaliating against a witness, victim, or an informant.According to documents filed in this case, Betz along with several others assaulted a fellow inmate in Wells County jail.The motive for the attack was retaliation against an inmate who was perceived as a “snitch” and a cooperator with law enforcement. Betz, along with several others, threatened the assaulted inmate with further attacks should that perceived cooperation continue.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Anthony Geller.
Utah Construction Company to Pay Government to Settle Alleged False Claims in Connection with Program for Small and Disadvantaged BusinessesRead the Press Release
Okland Construction Co. Inc. has agreed to pay the government $928,000 to resolve allegations that it made false statements and submitted false claims under the Small Business Administration’s (SBA) Section 8(a) Program for Small and Disadvantaged Businesses, the Justice Department announced today.
“The purpose of the 8(a) Program is to assist small and disadvantaged businesses to compete in the American economy,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “The Justice Department is committed to making sure that those who participate in 8(a) contracts do so honestly and fairly.”
Okland Construction, a large construction company, entered into a mentor-protégé agreement with Saiz Construction Co., a participant in the 8(a) Program. The mentor-protégé program allows a large business mentor to form an SBA-approved joint venture with a small business protégé to jointly bid on and perform 8(a) contracts, which are contracts awarded by federal agencies that are set aside solely for small businesses. Without a qualifying joint venture, the mentor and protégé cannot jointly bid on 8(a) contracts, and the mentor cannot perform the primary functions of the contract.
The government alleged that Okland Construction did not form a qualifying joint venture with Saiz Construction and thus was not eligible to jointly bid on or perform the primary functions of eight 8(a) contracts with Saiz Construction. Nevertheless, Okland Construction allegedly prepared the bids for the 8(a) contracts and its employees served as project managers, submitted invoices and performed payroll and other accounting functions. Furthermore, Okland Construction allegedly concealed its extensive involvement in performing the 8(a) contracts by misrepresenting to the government that its employees were employees of Saiz Construction.
The government also alleged that Okland Construction’s relationship with Saiz Construction violated the terms of an SBA set-aside contract awarded to Saiz Construction that required Saiz Construction to perform at least 15 percent of the labor on the contract minus the cost of materials.
“Large businesses must not be allowed to fraudulently obtain access to contracts set aside for small businesses,” said SBA Inspector General Peggy E. Gustafson. “The SBA mentor-protégé program enhances the capability of 8(a) participants to compete more successfully for federal contracts through a relationship with another successful business; however, this program must not be used as a vehicle to improperly benefit large, non-disadvantaged companies.”
“SBA’s contracting programs, including the 8(a) Business Development Program, provide small businesses with the opportunity to grow and create jobs,” said SBA General Counsel Sara D. Lipscomb. “But SBA has no tolerance for waste, fraud or abuse in any government contracting program and is committed to working with our federal partners to ensure the benefits of these programs flow to the intended recipients.”
The civil settlement resolves a lawsuit filed by Saiz Construction and its owner Abel Saiz under the whistleblower provision of the False Claims Act, which permits private parties, known as relators, to file suit on behalf of the government for false claims and to share in any recovery. The relators filed the lawsuit after Saiz Construction terminated its mentor-protégé agreement with Okland Construction. Saiz Construction and Saiz will receive a total of $148,480.
This settlement with Okland Construction was the result of a coordinated effort among the Department of Justice’s Civil Division, the U.S. Attorney’s Office for the District of Utah, the SBA Office of Inspector General, the SBA Office of General Counsel, the Department of the Air Force and the Army Corps of Engineers.
The civil lawsuit was filed in the District of Utah and is captioned United States ex rel. Saiz Construction Co. Inc. and Abel Saiz v. Okland Construction Co. Inc., No. 2:11-cv-00362 (D. Utah). The claims resolved by this settlement are allegations only, and there has been no determination of liability.
United States Attorney ChargesRead the Press Release
Hammond South Bend Fort Wayne
Fort Wayne, Indiana - The United States Attorney's Office announced that it filed an
Information on February 13, 2014: Scott Robb, 44, of West Chester, Ohio, is charged in a two count Information with theft of property of the Veterans Administration Medical Center on or about August 19, 2010, and introduction into interstate commerce of stolen medical devices that were misbranded from between on or about August 19, 2010, and November 22, 2011. These charges were filed as a result of an investigation by the Office of Inspector General of the Veterans Administration and the Office of Criminal Investigation U.S. Food and Drug Administration. This case has been assigned to and will be prosecuted by Assistant United States Attorney Tina L. Nommay.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.U.S. Settles Civil Lawsuit Against Valley Heart Consultants/DoctorsRead the Press Release
McALLEN, Texas - Valley Heart Consultants Dr. Carlos Mego and Dr. Subbarao Yarra have settled a suit brought by the United States in McAllen alleging violations of the Federal False Claims Act, announced United States Attorney Kenneth Magidson.
“Today’s settlement once again demonstrates our commitment to uncover fraud and abuse that threatens the financial health of our federal healthcare programs,” said Magidson.
The suit alleged that from Jan. 1, 2004, through September 2010, Mego and Yarra violated the False Claims Act by billing Medicare for nuclear stress tests and physical examinations which were allegedly substandard. The United States also alleged that the nuclear medicine used in the tests was injected by personnel who lacked the requisite license. Many of the nuclear stress tests were allegedly unnecessary, as well as many of the coronary angiographies, echocardiograms and carotid doppler studies which the defendants billed to Medicare, according to the allegations.
Valley Heart, Mego and Yarra have denied liability and this settlement is not an admission of guilt on their part. Pursuant to the terms of the settlement, Valley Heart Consultants, Mego and Yarra have agreed to pay $3.9 million to the United States and will enter into a three-year integrity agreement with the U.S. Department of Health and Human Services.
The investigation leading to the settlement began in 2007 after two former employees of Valley Heart Consultants filed a lawsuit under seal under the qui tam provisions of the Federal False Claims Act. The False Claims Act empowers private citizens with knowledge of fraud against the United States to present those allegations to the government by bringing a lawsuit on behalf of the United States under seal. If the investigation substantiates those allegations, the private citizen is entitled to share in any recovery.
The investigation was conducted by Department of Health and Human Services - Office of Inspector General with the assistance of the FBI. Assistant United States Attorneys Michelle Zingaro and Daniel David Hu handled the case and conducted the settlement negotiations.
Two Men Found Guilty of First-Degree Murder While Armed in 2008 Slaying of Government WitnessDefendants Also Found Guilty of Criminal Street Gang ChargesRead the Press Release
WASHINGTON – Willie Walker, Jr., 23, and Ricky Donaldson, 22, both of Washington, D.C., were found guilty by a jury today of first-degree premeditated murder while armed with aggravating circumstances for the September 2008 slaying of a woman who was a government witness, announced U.S. Attorney Ronald C. Machen Jr.
The verdict followed a trial in the Superior Court of the District of Columbia. In addition to the first-degree murder charge, the jury found the defendants guilty of conspiracy to commit first-degree murder while armed, obstructing justice, several firearms offenses, and related criminal street gang charges. The jury also found Walker guilty of charges of aggravated assault and assault with intent to kill for two related shootings in February and March of 2008.
The defendants are to be sentenced May 30, 2014 by Honorable John Ramsey Johnson.
According to the government’s evidence, Walker and Donaldson were members of a criminal street gang that operated in the area of the LeDroit Park neighborhood in Northwest Washington. The gang, known as “LDP,” or “Westside,” sold crack cocaine, among other illicit activities, in the Kelly Miller housing development in LeDroit Park.
On Feb. 4, 2008, after an argument, Walker shot a 55-year-old woman multiple times in the legs. The victim immediately identified Walker as her assailant to law enforcement. A warrant was issued for Walker’s arrest, but he was not immediately apprehended. On March 31, 2008, Walker argued with Delois “Peaches” Persha, 44. Ms. Persha referenced the earlier shooting that Walker had committed, telling him that she would not be treated the same way. In response, Walker shot Ms. Persha multiple times in the torso, and then, as she lay on the ground, multiple times in the face. Ms. Persha survived the attack, and immediately identified Walker as her assailant to law enforcement. For her protection, Ms. Persha, who had grown up in LeDroit Park, was relocated out of the area.
After Walker was arrested and detained in July 2008, he and Donaldson, along with the aid of other LDP gang members, began communicating about hunting down and killing the witnesses against Walker. On Sept. 13, 2008, Donaldson located Ms. Persha, who had returned to the area of LeDroit Park, and fatally shot her multiple times in the back and head. Ms. Persha died from her injuries on Sept. 18, 2008.
The jury found Walker guilty of crimes for his role in the February and March 2008 shootings, as well as the murder of Ms. Persha. Donaldson was found guilty in the murder.
“There is nothing we take more seriously than prosecuting those who would dare to use violence against a witness for simply being willing to tell the truth,” said U.S. Attorney Machen. “In gunning down a witness, these gang members destroyed their own futures. Their heinous actions will put them where they belong – behind bars for decades.”
In announcing the verdicts, U.S. Attorney Machen praised the work of the detectives, officers, and crime scene technicians who investigated the case for the Metropolitan Police Department. He also expressed appreciation for the work of the FBI’s Cellular Analysis Survey Team. He commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Marian Russell, Sharece Muschette, Gary Nails, and Rommell Pachoca; Lead Paralegal Specialist Philip Aronson; Supervisory Paralegal Specialist Sharon Newman; Victim/Witness Advocates Jennifer Clark and Yvonne Bryant; Victim/Witness Security Specialists Michael Hailey, Deborah Cannon, M. Laverne Forrest, Katina Adams-Washington, and David Foster; Intelligence Specialist Zachary McMenamin; former Intelligence Specialist Larry Grasso; Criminal Investigators John Marsh and Durand Odom; and Litigation Technology Specialist Leif Hickling.
Finally, U.S. Attorney Machen recognized the work of Assistant U.S. Attorneys Chrisellen Kolb, Elizabeth Danello, David Goodhand, and Suzanne Curt, who provided legal assistance, Assistant U.S. Attorneys Alessio Evangelista and Michael Brittin, who investigated the case, and Assistant U.S. Attorney Kimberley Nielsen and Jeffrey Pearlman, who prosecuted the case at trial.
14-069Two Men Charged with Assault of Postal WorkerRead the Press Release
BOSTON – Two men were charged yesterday in connection with the attempted robbery, assault and kidnapping of a U.S. Postal letter carrier.
Maurice Williams Miner-Gittens, 23, and Keyon Taylor, 21, both of Dorchester were indicted with conspiracy, assault, robbery, attempted kidnapping, and kidnapping of a federal employee, as well as the use of a firearm in connection with these crimes. In January 2014, both men were arrested and held on federal criminal complaints.
In December 2013, Miner-Gittens and Taylor allegedly jumped into a postal truck in Dorchester and put a pistol to the letter carrier’s head. When the letter carrier attempted to move the gun away, he was shot in the wrist and was subsequently beaten with the pistol and kicked, told to take off his postal uniform and lie face down.
It is alleged that Taylor took the letter carrier’s keys and started to drive the postal truck away. According to the affidavit filed with the previous complaint, the letter carrier, who was bleeding extensively and who feared for his life, escaped by jumping out of the back door of the truck and running away. Taylor allegedly drove the truck a short distance before abandoning it and fleeing on foot, leaving a trail of boot prints in the snow and his blood on a chain link fence from a wound on his hand. The trail of boot prints led through several back yards to a trash or recycling bin, which also had his blood on the handle. The letter carrier's uniform, cell phone and personal keys were found in the bin.
Miner-Gittens allegedly rented and drove a U-Haul van that was used during the attempted robbery, which had the letter carrier’s blood on the outside.
If convicted, Miner- Gittens and Taylor each face a statutory maximum sentence of life in prison on the charge of kidnapping; five years in prison on the charges of conspiracy; 20 years in prison on the charge of assault; 25 years in prison on the charge of robbery of federal property, and 10 years in prison on and after the other sentences for the use of a firearm in furtherance of the crimes of violence. In addition, Gittens and Taylor face a maximum of five years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Boston Police Commissioner William Evans, made the announcement. The case is being prosecuted by Thomas E. Kanwit of Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Grey Hills, N.M., Man Sentenced to More Than Fifteen Years in Federal Prison for Child Sex Assault ConvictionRead the Press Release
ALBUQUERQUE – Willis Yazzie, 34, an enrolled member of the Navajo Nation who resides in Two Grey Hills, N.M., was sentenced today to 188 months in federal prison followed by eight years of supervised release for his aggravated sexual assault conviction. Yazzie will be required to register as a sex offender when he completes his prison sentence.
Yazzie’s sentence was announced by Acting U.S. Attorney Steven C. Yarbrough, Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, and Director John Billison of the Navajo Nation Division of Public Safety.
Yazzie was arrested by the FBI on May 11, 2010, based on a criminal complaint alleging that he had sexually abused two children, then ages 13 and 10. Yazzie has been in federal custody since that time. According to court filings, the abuse allegations against Yazzie came to light on May 3, 2010, when the Navajo Nation Division of Social Services contacted the Navajo Nation Division of Public Safety to report the abuse. According to the complaint, Yazzie abused the older child beginning in 2008 and continuing until April 2010, and allegedly abused the younger child beginning in April 2010.
In June 2010, Yazzie was indicted and charged with aggravated sexual abuse of a child under the age of 16, and aggravated sexual abuse of a child under the age of 12. On Feb. 9, 2011, Yazzie pleaded guilty to a felony information charging him with aggravated sexual abuse, and admitted abusing a 13-year-old child by inappropriately touching the victim’s genitals. He also admitted that the sexual assault occurred in Two Grey Hills, which is located in the Navajo Indian Reservation.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, with assistance from the Navajo Nation Division of Social Services. It was prosecuted by Assistant U.S. Attorneys Jacob A. Wishard and Jennifer M. Rozzoni as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s 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 http://www.justice.gov/psc/.
Toledo Woman Charged with Filing False ReportRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a criminal information was filed against Rene Opre, age 55, of Toledo, Ohio.
The charges relate to filing a false report on behalf of Workers United SEIU, Local Union 323 with the U.S. Department of Labor.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Office of Labor-Management Standards, U.S. Department of Labor, Cleveland, Ohio. The case is being handled by Assistant United States Attorney Gene Crawford.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three York Men Indicted for the Armed Distribution of Crack Cocaine, Cocaine and HeroinRead the Press Release
The United States Attorney's Office for the Middle District Pennsylvania announced the indictment by a federal grand jury in Harrisburg and arrests of three men for distributing crack cocaine, heroin and cocaine in York, Pennsylvania over a seven month period in 2013 and 2014.
According to United States Attorney Peter Smith, the indictment charges a highly organized and violent drug trafficking scheme centered in York County. Those indicted are: Marc Hernandez, age 28; Douglas Kelly, age 35; and Roscoe Villega, age 39, all of York, Pennsylvania.
The indictment alleges that the defendants used firearms in their drug trafficking activities and distributed them to co-conspirators.
All three men have been arrested and appeared today before Chief Magistrate Judge Martin C. Carlson in Harrisburg. Kelly and Villega were detained pending trial. Hernandez was temporarily detained pending a detention hearing scheduled for March 27, 2014.
The case is part of a continuing joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the York City Police Department, with the assistance of the York County Drug Task Force. It is assigned to Assistant United States Attorney Michael A. Consiglio for prosecution.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is twenty years imprisonment for the defendants and a term of supervised release following imprisonment and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Three Time Convicted Felon Sentenced on Drug and Gun ChargesRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Jewell Wiggins, 46, of Rochester, N.Y., who was convicted of possession of cocaine with intent to distribute and possessing a firearm while being a convicted felon, was sentenced to 188 months in prison by U.S. District Court Judge David G. Larimer.
Assistant U.S. Attorney Charles E. Moynihan, who handled the case, stated that the defendant was arrested after members of the Rochester Police Department, while conducting a routine traffic stop of his car, found the defendant in possession of a loaded .45 caliber Colt Combat Commander semiautomatic handgun. During the investigation, Wiggins made several admissions to possessing the firearm.
Once under arrest for possessing the firearm, the defendant was transported to the Rochester Police Department Public Safety Building. During this transport, the Rochester Police Department officer observed Wiggins moving around in the backseat of the police vehicle. As this was happening, the defendant stated, “I just want you to know, I’m only moving around back here because I have a bad leg, not because I’m doing anything funny.” The officer searched the rear of his patrol vehicle after he had turned the defendant over the Monroe County Jail and found that the defendant had discarded thirty small bags of cocaine and five small bags of marijuana. Officers also found that the defendant possessed over $300.00 in United States currency.
The sentence is the culmination of an investigation on the part of Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon, and the Rochester Police Department, under the direction Chief Michael Ciminelli.Three Defendants Involved in Robbery of Postal Carrier Plead Guilty to Theft of Special Mail KeyRead the Press Release
DENVER –Cheston Jermone Foster (aka Rome or Romeo), age 30, of Denver, Colorado, pled guilty yesterday before Senior U.S. District Court Judge John L. Kane to postal robbery and violation of his supervised release from an earlier criminal matter, U.S. Attorney John Walsh and Denver U.S. Postal Inspector in Charge Adam P. Behnen announced. In addition to Foster’s guilty plea, two co-conspirators, Terrance Hurt, age 34, of Denver, and Zachary Langel, age 35, of Denver, previously pled guilty to similar charges. The three defendants were involved in the December 17, 2013 robbery of a postal collections driver in north Denver.
The lead defendant, Foster, was indicted by a federal grand jury on June 4, 2013. On October 23, 2013, Foster, along with Hurt and Langel were charged in a superseding indictment. On March 11, 2014, Hurt and Langel entered guilty pleas. Foster pled guilty on March 20, 2014. Foster is scheduled to be sentenced on June 17, 2014. Hurt and Langel are scheduled to be sentenced on June 13, 2014. All three defendants are being held in federal custody without the possibility of bond, pending a resolution of this case.
On December 15, 2012, Foster, drove co-defendants Hurt and Langel around in his GMC Yukon to the area of 23rd and Oneida in north Denver, to determine if the U.S. Postal Service collected mail from the blue collection box placed in that area for the public to use. The defendant saw that there was a specific time for collection of that box on weekdays. Foster then communicated with his co-conspirators by text and phone to arrange to meet on December 17, 2012, to rob the postal clerk and take his “Arrow Key”, a master key issued by the U.S. Postal Service to access the collection boxes in a particular geographic region.
On December 17, 2012, Foster picked up Hurt and Langel. That afternoon, the three co-conspirators drove around in the defendant’s Yukon to familiarize themselves with the area around the blue collection box at 23rd and Oneida. After doing so, they went to a residence approximately four blocks away. Foster went inside the residence and retrieved a large kitchen knife. The three coconspirators returned to the area of 23rd and Oneida to await the postal carrier’s arrival. The three followed their plan, robbed the postal carrier, and took his “arrow key.” One of the co-conspirators got into the mail truck vehicle after it had stopped. The other two acted as lookouts. The coconspirator inside the truck brandished a kitchen knife and ordered the postal carrier to turn over his Arrow key. After robbing the postal carrier of the Arrow key, the three coconspirators returned to the defendant’s Yukon and drove away from the area.“Thanks to excellent investigative work, those responsible for this violent crime have been held accountable for their criminal conduct,” said U.S. Attorney John Walsh. “Protecting Postal employees who patrol our streets daily is important, as the hard work on this case demonstrates.”
“These convictions are a result of determination and good old-fashioned police work exhibited by our Denver Postal Inspectors,” said Adam P. Behnen, Inspector in Charge, U.S. Postal Inspection Service, Denver Division. “A large part of the Postal Inspection Service mission is assuring the safety of postal employees and we want them to have confidence that they can focus on their duties. These types of crimes against postal employees are rare, but when they do occur, they become top priority for us.”
Each defendant faces not more than 25 years in federal prison, and up to a $250,000 fine.
This case was investigated by the U.S. Postal Inspection Service and the Denver Police Department.
The defendants are being prosecuted by Assistant U.S. Attorney Rick Hosley and Special Assistant U.S. Attorney Beth Gibson.
Three Camden, N.J., Residents Charged in Conspiracy to Steal Checks from Mail and Defraud Banks in New Jersey, Pennsylvania and DelawareRead the Press Release
CAMDEN, N.J. – A woman and two men from Camden were charged today for their alleged participation in a scheme in which they stole business checks from the U.S. Mail in New Jersey, Pennsylvania and Delaware, altered them, and cashed them using a series of conspirators, U.S. Attorney Paul J. Fishman announced.
Ivory Vernon, 29, was arrested today by Camden County Sheriff’s officers on unrelated charges. She is being charged federally in a 10-count indictment that was unsealed today with bank fraud and conspiracy to commit bank fraud.
The indictment also charges Joseph Reevey, 38, with bank fraud and conspiracy to commit bank fraud; and Ibn Muhammad, 35, with bank fraud, conspiracy to commit bank fraud, and illegal possession of a firearm. Vernon, Reevey, who is in Pennsylvania state custody, and Muhammad, who is in federal custody, are all scheduled to appear before U.S. District Judge Jerome B. Simandle in Camden federal court on April 9, 2014.
According to indictment unsealed today:
From Aug. 6, 2012, through Aug. 1, 2013, Muhammad, Reevey, Vernon and others stole checks from curbside U.S. mailboxes in business industrial parks in New Jersey, Pennsylvania, and Delaware. Reevey and his conspirators would then recruit others to cash the stolen checks. Muhammad and other conspirators would alter the stolen checks so that the name of the “payee” would match the name of the recruited check casher. Reevey, Vernon, Warner and others would travel with the recruited check cashers to a bank, often in rented cars.
Muhammad, Reevey, Vernon and their conspirators cashed or attempted to cash more than 45 stolen and altered business checks worth more than $200,000. The scheme resulted in a total loss of more than $100,000 to the victim banks.Muhammad’s illegal gun possession charge stems from the discovery of a Smith & Wesson revolver and a Browning pistol at his Camden residence when law enforcement authorities executed a search warrant in May of 2013.
On the counts of bank fraud and conspiracy to commit bank fraud, Muhammad, Reevey, and Vernon each face a maximum potential penalty of 30 years in prison and a fine of $1 million, or twice the gross gain or loss resulting from the offense. On the count of illegal possession of a gun, Muhammad faces a maximum potential penalty of 10 years in prison and a fine of $250,000.
U.S. Attorney Fishman credited special agents from the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Inspector in Charge David Bosch; troopers from the N.J. State Police, under the direction of Col. Rick Fuentes; special agents from the Bureau of Alcohol Tobacco, Firearms, and Explosives under the leadership of Acting Special Agent in Charge George Belsky, and officers from the Gloucester Township and Pennsauken Township police departments for the investigation leading to today's arrest.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
14-099
Defense counsel:
Muhammad: Lisa Lewis Esq., Camden, N.J.
Reevey: Edward Crisonino Esq., Westmont, N.J.
Vernon: Brian O’Malley Esq., Haddon Heights, N.J.Muhammad, et al., Indictment
Suspended Physician Pleads Guilty to Federal Drug Charge; Admits Exchanging Thousands of Prescription Doses for SexRead the Press Release
CHICAGO ― A suspended physician formerly affiliated with three Chicago hospitals pleaded guilty today to a federal charge of illegally distributing a prescription drug in exchange for sex in 2009. The defendant, JOSHUA D. BARON, a pediatric neurologist, also admitted that he provided approximately 149 prescriptions for controlled substance medications, totaling thousands of doses, to 16 individuals in exchange for sex between 2006 and 2011. These individuals were never patients of Baron, they never visited his office as a patient, and he never asked them about medical issues, took their medical history, conducted an examination, or attempted to diagnose them.
Baron, 40, of Forest Park and formerly of Oak Park, remains free on his own recognizance pending sentencing on June 30 by U.S. District Judge Rebecca Pallmeyer. He faces a maximum sentence of 20 years in prison and a $1 million fine, and his plea agreement provides for an advisory sentencing guidelines range of 108 to 135 months in prison, according to the government’s calculation.
Baron was initially charged by the state in January 2011 after an undercover investigation by the Wilmette Police Department. He was charged federally in October 2011 following a broader investigation by the U.S. Drug Enforcement Administration and the Chicago Police Department.
Baron was licensed in Illinois in May 2006 and, until January 2011, treated patients at Rush University Medical Center, John H. Stroger, Jr., Hospital of Cook County, and St. Anthony=s Hospital, all in Chicago. He voluntarily surrendered his medical license and his DEA registration in 2011.
According to his written plea agreement, between 2006 and 2011, Baron dispensed prescriptions for controlled substances outside the usual course of professional practice and without a legitimate medical purpose in exchange for sex and/or money. He admitted posting at least 78 advertisements offering to trade various prescription drugs on the website Craigslist.com, and all of the ads were placed under the sections, “Men Who Would Pay” and “Casual Encounters.”
Through these prescriptions, Baron dispensed to the 16 individuals the following controlled substances and amounts: 1,680 pills Adderall, 1,830 pills of Norco, 180 pills of Percocet, 1,710 pills of Xanax, 270 pills of Vicodin, 180 pills of Demerol, 90 pills of Dilaudid, 120 pills of Focalin, 150 pills of Phentermine, 30 pills of Klonopin, and 15 pills of morphine sulfate.
In January, the Wilmette police conducted an undercover sting that led to Baron=s arrest when he arrived at a specified location, allegedly expecting to trade a prescription for Adderall with a fictitious woman in exchange for sex.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Jack Riley, Special Agent-in-Charge of the DEA=s Chicago Field Division. The Wilmette Police Department, the Chicago Police Department Organized Crime Division=s narcotics and gang section, and the Illinois Department of Financial and Professional Regulation assisted in the investigation.
The government is being represented by Assistant U.S. Attorney Carol Bell.
Plea Agreement
Social Security Fraud Scheme Leads to Federal Conviction and Almost $42,000 in RestitutionRead the Press Release
The United States Attorney's Office announced that on March 20, 2014, FLORENCE IRENE JARA, 52, of Billings, was ordered to serve a term of five years of probation, pay $41,984.60 in restitution to the Social Security Administration, and perform 275 hours of community service, by U.S. District Judge Susan Watters.
In the prosecution's sentencing memorandum, Assistant U.S. Attorney Chad C. Spraker told the Court that Patricia Lennon was the beneficiary of Title II Social Security Administration (SSA) benefits, also known as the Old Age, Survivors and Disability Insurance (OASDI) program. Under the OASDI program, Patricia Lennon's son was also entitled to OASDI benefits. Lennon was appointed by SSA to be her son's representative payee, a position created by SSA when a beneficiary is unable to handle his or her own affairs due to age or disability. Patricia Lennon's son was entitled to benefits until he was eighteen, but as a minor, his benefits generally had to be paid through a representative payee accountable to SSA's rules. Prior to her death on May 19, 2010, Lennon added Jara as a joint account holder on a Valley Federal Credit Union account into which SSA was depositing the OASDI benefits. SSA, unaware of Patricia Lennon's death, continued making monthly deposits of approximately $1100 for Patricia Lennon and $1000 to Patricia Lennon as her son's representative payee.
In or about September 2011, SSA sent a representative payee accounting form to Lennon. Receiving no response, SSA suspended the $1000 monthly payment for Patricia Lennon's son. On March 2, 2012, a Valley Federal Credit Union employee called SSA to inquire about the benefits being deposited into the account. After discovering that Patricia Lennon had died, SSA requested a return of the OASDI benefits deposited into the account. Valley Federal Credit Union froze the account and called Jara concerning SSA's request to reclaim the benefits. Jara falsely claimed that she had already notified SSA of Patricia Lennon's death. On July 19, 2012, Jara was interviewed by federal investigators at her home in Billings. Jara stated that she knew Patricia Lennon was receiving SSA benefits and for her son when Jara was added to the VFCU account. After September 2010 Jara began spending the SSA money for her own personal needs. According to the Presentence Report, Jara later admitted that over the course of 18 months, she personally spent $18,000 in SSA funds.
In her interview with law enforcement agents, Jara further stated that she knew it was wrong to take the SSA benefits after Patricia Lennon's death, and she should have gone to SSA. Nevertheless, she also claimed that a probate attorney told her not to tell SSA about Patricia Lennon's death until after Jara obtained guardianship of Patricia Lennon's son. On August 21, 2013, a federal agent interviewed the attorney who advised that he had attempted to carry out Patricia Lennon's instruction to establish Jara as the guardian of Patricia Lennon's son, but the guardianship was never implemented. The attorney advised the agent that he never spoke with Jara, but if he had, he would have never instructed her not to report Patricia Lennon's death to SSA, as that is generally one of the first things he advised his clients to do.
The investigation was conducted by the Social Security Administration, Office of Inspector General.
Slaton, Texas, Man Admits Producing Child PornographyRead the Press Release
LUBBOCK, Texas — Dale Wray Fulford, 77, of Slaton, Texas, appeared this morning before U.S. District Judge Sam R. Cummings and pleaded guilty to an indictment charging one count of production of child pornography. He faces a statutory penalty of not less than 15 years or more than 30 years in federal prison and up to a $250,000 fine. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement today.
Fulford, who is in custody, admitted that between February 2013 and early February 2014, he used, persuaded, induced and enticed a female minor, under age 18, to engage in sexually explicit conduct that he recorded on a digital camera.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s 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 sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Lubbock County Sheriff’s Office investigated the case. Assistant U.S. Attorney Steven M. Sucsy of the U.S. Attorney’s Office in Lubbock, Texas, is in charge of the prosecution.
Salway Sentenced for Killing Man with Her VehicleRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, Montana, on March 18, 2014, before U.S. District Judge Brian M. Morris, BRANDY LEE SALWAY, 23, of Browning, was sentenced to a term of 36 months imprisonment, three years supervised release, and a special assessment of $100.
Salway was sentenced because she killed a man, after she ran him over with her vehicle. In an Offer of Proof filed by Assistant U.S. Attorney Ryan G. Weldon, the government would have proven that Salway was traveling over 55 miles per hour in a neighborhood with a 15 mile-per-hour zone. She had a BAC of .193, and there was THC and methamphetamine detected in her blood. The victim was pronounced dead at the scene of the crash.
Salway pleaded guilty to Involuntary Manslaughter. In a sentencing memorandum, Weldon told the Court, "Drunk driving in Montana and other states has garnered considerable attention. The highways and neighborhood roadways are shared by families, children, and pedestrians alike. Every time a drunk driver sits behind the wheel, tragedy looms. It, however, is a guarantee when a drunk, drugged, and angry driver travels over 55 miles per hour in a 15 mile-per-hour speed zone."
The Court sentenced Salway to 36 months of imprisonment, with three years of supervised release to follow. Because there is no parole in the federal system, the truth in sentencing guidelines mandate that Salway will likely serve all of the time imposed by the court. In the federal system, Salway does have the opportunity to shorten the term of custody by earning credit for good behavior. However, this reduction will not exceed 15% of the overall sentence.
This investigation was conducted by the Federal Bureau of Investigation.