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14 March 2014
Ukrainian Businessman Arrested in Austria on <br /> U.S. International Corruption Conspiracy ChargesRead the Press Release
Dmitry Firtash, 48, a Ukrainian businessman, was arrested Wednesday by Austrian authorities in Vienna on a provisional arrest request based on charges filed in the Northern District of Illinois, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Zachary T. Fardon of the Northern District of Illinois.
The charges result from an investigation, which the FBI has conducted for several years, of an alleged international corruption conspiracy. Firtash’s arrest is not related to recent events in Ukraine.
Firtash, who controls Group DF, an international conglomerate of companies, remains in Austrian custody unless he meets the bail condition of posting a €125 million bond, which was set today in a Vienna court. The U.S. government will seek his extradition.
The charges are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The department has worked closely with and has received significant assistance from its law enforcement counterparts in Austria and greatly appreciates their assistance in this matter. Significant assistance was also provided by the Criminal Division’s Office of International Affairs. The Chicago Office of the FBI conducted the investigation.Two Miami-Dade County Men Convicted of Drug TraffickingRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, Amos Rojas, Jr., United States Marshal, U.S. Marshals Service (USMS), Noel Manheimer, Director of Marine Operations, U.S. Customs and Border Protection (CBP), Dan Alexander, Chief, Boca Raton Police Department, Vince Demasi, Chief, West Palm Beach Police Department, Scott Israel, Sheriff, Broward County Sheriff’s Office (BSO), and Dave Aronberg, State Attorney, Office of the State Attorney for Palm Beach County, announce today that following a two week trial in West Palm Beach, a jury convicted Osvaldo Domingo Ceballo, 44, of Hialeah, and Yumar Oliva, 43, of Miami, of conspiracy to possess with intent to distribute more than five kilograms of cocaine hydrochloride and possession with intent to distribute more than five kilograms of cocaine hydrochloride.
Sentencing is scheduled for May 21, 2014, before U.S. District Judge Daniel T.K. Hurley. At sentencing, the defendants face a mandatory minimum sentence of ten years in prison up to a maximum of life in prison, a mandatory minimum period of supervised release of five years up to life, a maximum $4 million fine, and a $100 special assessment as to both the conspiracy to possess with intent to distribute charge and the possession with intent to distribute charge.
According to the evidence presented at trial, Taverne Pierre Louis operated a large scale drug trafficking organization responsible for the importation and distribution of hundreds of kilograms of cocaine from Haiti and the Bahamas to Miami-Dade, Broward and Palm Beach Counties. Osvaldo Domingo Ceballo and Yumar Oliva facilitated Taverne Pierre Louis’ drug distribution organization by transporting the cocaine. During the course of this investigation, 27 kilograms of cocaine and over 100 grams of cocaine base, commonly referred to as “crack” cocaine, were seized.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
Mr. Ferrer commended the investigative efforts of the DEA, USMS, CBP, Boca Raton Police Department, West Palm Beach Police Department, BSO and the Palm Beach County State Attorney’s Office. This case is being prosecuted by Assistant U.S. Attorney Jennifer C. Nucci.
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.
Two Men Charged with Illegally Manufacturing and Transporting FirearmsRead the Press Release
Navy official allegedly set up $1.6 million contract for silencers from unlicensed company
ALEXANDRIA, Va. – A federal grand jury returned a superseding indictment charging Lee Hall, 52, of northern Virginia, and Mark Landersman, 53, of California with conspiracy to illegally manufacture firearms, transport unregistered firearms in interstate commerce and commit mail fraud. Lee Hall also is charged with theft of government money.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Rocco Pierri, Special Agent in Charge of the Naval Criminal Investigative Service’s (NCIS) Washington Field Office; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement.
Hallfaces a maximum penalty of 15 years in prison if convicted of both charges. Landersman faces a maximum penalty of five years if convicted.
According to the indictment, as Intelligence Director of the Office of Plans, Policy, Oversight and Integration for the Deputy Undersecretary of the Navy, Lee Hall initiated a sole source contract between a Navy prime contractor and Mark Landersman’s company, Advanced Machining and Engineering (AME), for the manufacture of 349 silencers at a cost of approximately $1.6 million.
According to court records, neither Landersman nor AME was licensed to manufacture or sell firearms or silencers. Moreover, although AME was to receive about $1.6 million for the silencers, Landersman subcontracted the actual production of the silencers for a cost of approximately $10,000. Landersman had the silencers manufactured without serial numbers and shipped them to Maryland in February 2013.
The sole source contract called for Landersman to receive a deposit of approximately $800,000 before starting production, with the balance to be paid shortly after the silencers were shipped from California to Maryland. In April 2013, Landersman received the remaining balance of approximately $800,000 under the subcontract. An inspection report submitted before payment of the remaining balance stated that the silencers had been inspected and that they conformed to the contract. No inspection of the silencers, however, was actually done prior to paying the $800,000 balance.
This investigation is being conducted jointly by NCIS and ATF. Assistant U.S. Attorneys Morris Parker, Patricia Haynes and Karen Taylor are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on PACER and on the website of the U.S. District Court for the Eastern District of Virginia.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.Travis Patrick Zabroski Sentenced in U.S. District CourtRead the Press Release
The United States Attorney(s Office announced that during a federal court session in Billings, on March 6, 2014, before U.S. District Judge Susan P. Watters, TRAVIS PATRICK ZABROSKI, a 31 year-old resident of Billings, Montana, was sentenced to a term of:
Prison: 85 months
Special Assessment: $ 200
Restitution: N/A
Supervised Release: 5 years
In an Offer of Proof filed by Assistant U.S. Attorney Brendan McCarthy, the government stated it would have proved at trial the following:
On January 15, 2013, officers with the Billings Police Department were investigating a robbery that occurred at 2150 Grand Avenue in Billings. After investigating the robbery, an officer went to the Holiday Station located at King Avenue and S. 20th Street W. to conduct a business check. Inside the store, the officer observed a white male, later identified as Travis Patrick Zabroski, who matched the description of the robbery suspect. The officer asked the defendant questions, and, at one point, the defendant told the officer that he was on probation for armed robbery.
Additional officers arrived at the scene. The officers contacted the defendant's probation officer and was given consent to search the defendant's vehicle.
During the search, an officer located a book safe underneath the driver's seat. Inside the book safe, the officer recovered various items including a baggie with a white crystalline substance and a loaded .357 Ruger pistol with the serial number filed off. The white crystalline substance was tested at the scene with a methamphetamine kit and the result was positive. The methamphetamine was then sent to the DEA lab for analysis, and the results indicated that the actual amount of methamphetamine was 41.8 grams.
Agents also obtained information from other sources that the defendant had possessed methamphetamine with the intent to distribute it in the Billings area from October 1st of 2012 through January 15th of 2013.
The .357 Ruger pistol was examined by an ATF Special Agent, and it was determined that the firearm was not manufactured in the State of Montana. Therefore, it traveled in and affected interstate commerce.
In 2000, Zabroski was convicted of Armed Robbery in New Mexico, which is a felony crime punishable by a term of imprisonment exceeding one year.
The case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Billings Police Department.
Three Sentenced for Armed Bank RobberyRead the Press Release
CHARLOTTE, N.C. – On Thursday, March 13, 2014, U.S. District Judge Max O. Cogburn, Jr. presided over the sentencing of Kenneth Lamont Moore, Jr., 22, of Laurinburg, N.C., Antonio DeMarcus Clendening, 31, and Kamara Shanta McBrayer, 27, both of Charlotte, on armed bank robbery charges, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
Clendening was sentenced to serve 272 months in prison, Moore was sentenced to 121 months in prison, and McBrayer was sentenced to 42 months in prison. All three defendants were also ordered to serve three years of supervised release following their prison terms.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Chief Rodney D. Monroe of the Charlotte-Mecklenburg Police Department (CMPD) are joining U.S. Attorney Tompkins in making today’s announcement.
According to court documents and yesterday’s sentencing hearings, on May 20, 2013, the three defendants robbed a Bank of America branch located on Albermarle Road in Charlotte. Court records indicate that Moore and Clendening entered the bank soon after it opened at 9:00 a.m., wearing gloves, women’s wigs and bandanas over their faces. The two men were also armed with handguns. According so court records, upon entering the bank, the defendants pointed their guns at the bank tellers and ordered them to put the money in a pillow case provided by Clendening. The robbers fled the bank with approximately $7,760 in cash and got into a vehicle driven by McBrayer. Court records show that CMPD officers responding to an emergency call attempted to stop the getaway vehicle, but McBrayer did not stop and a high speed chase ensued through a residential neighborhood. Law enforcement apprehended the three bank robbers after McBrayer crashed the vehicle she was driving.
The three defendants pleaded guilty in July 2013. Clendening and Moore each pleaded guilty to conspiracy to commit armed bank robbery, armed bank robbery and use of a firearm in furtherance of a crime of violence. McBrayer pleaded guilty to conspiracy to commit armed bank robbery and armed bank robbery.
All defendants have been in federal custody in the Western District of North Carolina since they were arrested in May 2013. Upon designation of a federal facility they will be transferred into custody of the Federal Bureau of Prisons. Federal sentences are served without the possibility of parole.
The investigation was handled by the FBI’s Safe Streets Task Force and CMPD. The prosecution for the government was handled by Assistant U.S. Attorney J. George Guise of the U.S. Attorney’s Office in Charlotte.
Three People Admit Roles in Extensive Tax Refund Check ScamRead the Press Release
NEWARK, N.J. — A Bronx, N.Y., man today admitted his role in conspiring to steal government funds through his involvement in an extensive scheme to fraudulently obtain income tax refund checks issued by the United States, U.S. Attorney Paul J. Fishman announced.
Luis Pena, 31, was the third member of the conspiracy to plead guilty this week; Gloria Rivera, 43, of Bronx, also pleaded guilty today and Lourdes Ortiz, 41, of Bronx, pleaded guilty March 10, 2014. Each defendant pleaded guilty before U.S. Magistrate Judge Michael A. Hammer in Newark federal court to separate informations charging them with conspiracy to commit theft of government property.
Stolen Identity Refund Fraud
Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that results in more than $2 billion in losses annually to the United States Treasury. SIRF schemes generally share a number of hallmarks:- SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico.
- Participants complete Individual Income Tax Return 1040 Forms using the fraudulently obtained information, falsifying wages earned, taxes withheld and other data and always ensuring the fraudulent form generates a tax refund check from the U.S. Treasury.
- They direct the U.S. Treasury Department to mail the fraudulently obtained checks to locations the perpetrators control or can access. In some cases, SIRF perpetrators bribe mail carriers to remove the checks from their mail routes.
- With the checks in hand, they generate cash proceeds by depositing the Fraudulent Treasury Checks into bank accounts that they control.
According to documents filed in these cases and statements made in court: Pena, Rivera, and Ortiz, each admitted that they knew that the U.S. Treasury checks involved in the conspiracy had been generated by conspirators filing false and fraudulent income tax returns with the IRS in order to obtain refunds to which they were not entitled. All three stated that they knew that the tax refund scheme was intended to, and did, defraud the IRS and the U.S. Treasury. At the time of the conspiracy, Rivera and Ortiz were employed as mail carriers by the U.S. Postal Service.
In 2011, Pena approached Rivera and arranged to direct fraudulent tax refund checks to Rivera’s mail route and have those checks intercepted and retrieved by Rivera in exchange for a cash payment to Rivera of at least $400 per check. After directing the checks to Rivera’s mail route, Pena provided Rivera with identifying information for the fraudulent treasury tax refund checks that he directed to her mail route.
Rivera, however, became unable to work due to illness in September 2011 and was replaced by mail carrier Ortiz on the Flushing, Queens, N.Y., mail route. Rivera approached Ortiz and asked Ortiz to intercept the fraudulent checks in exchange for approximately $200 per fraudulent check. Ortiz agreed.
Using the information provided by Pena, from September 2011 through May 2012, Rivera – or Ortiz on Rivera’s behalf – intercepted from the Flushing mail route the fraudulent checks that corresponded to the information given to Rivera by Pena. In exchange for the intercepted checks, Pena gave Rivera cash payments, which Rivera passed along – in part – to Ortiz.
The fraudulently obtained tax refund checks stolen by Pena, Ortiz, and Rivera totaled $336,647.
Once the stolen checks were returned to Pena, he passed the checks on to other conspirators, many of whom were in Newark, N.J. They cashed the checks, primarily by using bank accounts controlled by conspirators.
The charge to which the defendants pleaded guilty carries a maximum penalty of five years in prison and a fine of up to $250,000, or twice the gross amount of any pecuniary gain or loss. Sentencing for Ortiz is scheduled for July 7, 2014; for Rivera, July 8, 2014, and for Pena, July 9, 2014
U.S. Attorney Fishman credited special agents of the IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; special agents of the U.S. Postal Inspection Services, under the direction of Inspector in Charge Maria Kelokates; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola; and special agents of the U.S. Postal Service - Office of the Inspector General, under the direction of Special Agent in Charge Rafael Medina.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the U.S. Attorney’s Office General Crimes Unit in Newark.
14-089
Defense counsel: Ortiz: Olubukola Adetula Esq., Irvington, N.J.
Rivera: Elizabeth Smith, Esq., Mendham, N.J.
Pena: Patrick Brackley Esq., New YorkPena Information
Ortiz Information
Rivera Information- SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico.
Three New Haven Men Plead Guilty to Crack Cocaine Distribution OffensesRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that three New Haven men involved in a crack cocaine distribution ring have pleaded guilty in Bridgeport federal court. DONALD OGMAN, also known as “Main” and “Mainy-O,” 32, KENNETH STURDIVANT, also known as “Slay,” 28, and ROMELL BROWN, 35, each pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, cocaine base (“crack cocaine”). OGMAN pleaded guilty today, and STURDIVANT and BROWN pleaded guilty on March 10 and March 11, respectively.
According to court documents and statements made in court, this matter stems from an investigation conducted by the FBI New Haven Safe Streets Task Force and the New Haven Police Department into drug distribution and related violence allegedly being committed by members and associates of the Grape Street Crips in New Haven.
When they are sentenced, OGMAN, STURDIVANT and BROWN face a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. They been detained since they were arrested in March 2012.
On April 9, 2012, a grand jury returned an indictment charging 18 individuals with narcotics distribution offenses stemming from this investigation. Two more individuals were later charged in the case with the same offense. To date, 16 of the defendants have pleaded guilty. Four defendants are awaiting trial, which is currently scheduled to begin on March 24 before Senior U.S. District Judge Warren W. Eginton in Bridgeport.
With respect to the defendants awaiting trial, U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the FBI’s New Haven Safe Streets Task Force, which includes the New Haven, Hamden and Milford Police Departments, the Connecticut State Police and the State of Connecticut Department of Correction. The investigation has been assisted by the U.S. Marshals Service and the Westerly (R.I.) Police Department.
This case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and H. Gordon Hall.
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Tom Carson
(203) 821-3722 [email protected]Three Local Residents Sentenced for Food Stamp FraudRead the Press Release
TALLAHASSEE, FLORIDA – United States Attorney Pamela C. Marsh announced thatthree men have been sentenced today by United States District Judge Mark Walker for conspiring to defraud the Supplemental Nutrition Assistance Program (SNAP) - - also known as the food stamp program - - and on other charges.
Rodrigue Bissainthe, 26, pled guilty to conspiracy and two mail fraud charges on November 27, 2013. He received a sentence of three years of supervised release, with one year to be served in home confinement. He must pay $300 in special monetary assessments (SMAs) and $3,572.85 in restitution. His convictions were based upon allowing fraudulently obtained SNAP debit cards to be mailed to his residence and using one of the SNAP cards.
Darius Jemmott, 22, was convicted of conspiracy, three charges of fraud involving interstate wire communications, and aggravated identity theft. He received a sentence of two years in prison, to be followed by a three-year term of supervised release. He must pay $500 in SMAs and $500.10 in restitution. He provided a second address to which fraudulently obtained SNAP debit cards were mailed and used one of the SNAP cards.
Dwayne Phanor, 24, pled guilty to conspiracy, mail fraud, wire fraud, and seven aggravated identity theft charges on December 4, 2013. He received a sentence of 54 months in prison, to be followed by twelve months of supervised release. He must pay $1,000 in SMAs and restitution of $7,905.21.
According to court records, Phanor filed approximately 72 fraudulent SNAP applications, seeking total benefits of approximately $102,000. Some applications were unsuccessful, because those people named in the applications were already properly receiving SNAP benefits. Phanor then made about twenty-five change of address requests, to have those legitimate SNAP benefits diverted to locations he controlled. In those calls, Phanor sometimes pretended to be elderly or female, based upon the circumstances of the genuine beneficiary. When Phanor received SNAP cards, he sold them at discounted prices to his acquaintances.
SNAP provides economic assistance to qualified low-income people, to help them obtain adequate food. The United States Department of Agriculture funds the SNAP program, and in Florida, SNAP is administered by the Department of Children and Family Services (DCF). The Department of Financial Services investigates public assistance fraud arising from DCF programs.
U.S. Attorney Marsh praised the Department of Children and Family Services, the Department of Financial Services, the Tallahassee Police Department, the United States Postal Inspectors, and the United States Secret Service for their hard work, dedication, and expertise in the investigation that led to the successful prosecution of this case.
The case was prosecuted by Assistant United States Attorney Michael T. Simpson.Three Defendants Sentenced in Manhattan Federal Court for Roles in Immigration Asylum Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that SONG LUO, ZEYUAN WANG, and YONG ZHANG were sentenced in Manhattan federal court in connection with their roles in a scheme to commit immigration fraud by creating and submitting applications for political asylum on behalf of Chinese nationals that contained false stories of persecution purportedly suffered by these applicants. LUO, WANG, and ZHANG were each sentenced to three months in prison. The defendants each previously pled guilty to one count of conspiring to commit immigration fraud, and were sentenced today by U.S. District Judge John G. Koeltl.
Manhattan U.S. Attorney Preet Bharara said: “As part of the immigration fraud scheme, Song Luo, Zeyuan Wang, and Yong Zhang aided others in exploiting this country’s asylum laws by coaching and assisting them to lie on their applications. The sentences imposed on the defendants today ensure that they will be punished for their crimes.”
According to the Indictment, other documents filed in Manhattan federal court, and statements made at various proceedings in this case, including today’s sentencing:
LUO, WANG, and ZHANG worked as paralegals at a law firm located at 305 Broadway, New York, New York, and also did work for other law firms. As part of the scheme, LUO and ZHANG coached applicants on how best to portray their false persecution stories to asylum officers interviewing each applicant for political asylum. WANG assisted in the creation and submission of applications containing the false persecution stories.
In addition to the prison terms, LUO, 35, of Ridgewood, New York, WANG, 33, of Brooklyn, New York, and ZHANG, 50, of Flushing, New York, were also each ordered to pay $1,000 fines.
LUO, WANG, and ZHANG were charged as part of a large investigation led by the United States Attorney’s Office for the Southern District of New York, the Federal Bureau of Investigation (“FBI”), and the United States Citizenship and Immigration Services (“USCIS”). To date, 30 defendants have been charged with participating in nine separate but overlapping immigration fraud schemes in New York City, including eight lawyers. Twenty-five of these defendants have been convicted for their roles in these schemes.
Mr. Bharara praised the investigative work of the FBI and USCIS.
The prosecution is being handled by the Office’s Organized Crime Unit. Assistant U.S. Attorneys Brian Blais and Robert Boone are in charge of the prosecution.
Tax Return Preparer Arrested for Filing False Tax ReturnsRead the Press Release
PHILADELPHIA – An indictment was unsealed today charging Edward J. Rorie, 50, of Philadelphia, PA, with 25 counts of preparing and filing false tax returns, announced United States Attorney Zane David Memeger. Rorie was arrested this morning. According to the indictment, for tax years 2009 through 2011, Edward J. Rorie prepared at least 25 tax returns which were materially false. In preparing the fraudulent returns, the indictment alleges that Edward J. Rorie variously claimed expense deductions and tax credits to which the filers not entitled to receive. The tax credits included the First Time Home Buyer Tax Credit, The Hope Tax Credit, The Earned Income Tax Credit, Education Credits, The Child Care Tax Credits and The Recovery Act’s Additional Child care Credit. The indictment alleges a loss to the Internal Revenue Service of at least $100,000.
If convicted, Rorie faces a maximum possible sentence of 75 years of imprisonment, a fine of $6.25 million, a special assessment of $2,500 and 1 year of supervised release.
The case was investigated by Internal Revenue Service Criminal Investigations and is being prosecuted by Assistant United States Attorney Floyd J. Miller.
Click here to view the indictment
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PATTY HARTMAN, Media Contact, 215-861-8525Tampa Woman Sentenced to 5 Years in Prison for Her Role in Large-Scale Credit Card Fraud RingRead the Press Release
Tampa, FL – U.S. District Judge James S. Moody, Jr. yesterday sentenced Norma Cabezas-Hernandez to 5 years in federal prison for conspiracy to commit credit card fraud and aggravated identity theft. As part of her sentence, she was also ordered to forfeit her share of the traceable proceeds of the offense, which total more than $655,000. Cabezas-Hernandez pleaded guilty on December 6, 2013.
According to court documents, from at least 2011 through February 2013, Cabezas-Hernandez engaged in a conspiracy to commit access device fraud by using counterfeit credit cards and re-encoded gift cards to make purchases of consumer goods throughout the Middle District of Florida. Her brother and co-conspirator, Michel Lermos-Hernandez, installed and directed others to install key loggers and other skimming devices on credit card readers and point-of-sale terminals in the Tampa area, including locations at the International Mall. Lermos-Hernandez then removed or directed others to remove the devices, from which he downloaded the stolen credit and debit card account numbers and account information. The conspirators obtained the stolen credit and debit account numbers and re-encoded them onto reloadable gift cards to create counterfeit credit cards.
Lermos-Hernandez and others, including Cabezas-Hernandez, used the counterfeit credit cards to purchase retail items such as electronics and store gift cards, which they sold to another co-conspirator for cash.
On February 7, 2013, a search warrant was executed at the residence of Cabezas-Hernandez and her brother, Lermos-Hernandez. Inside, agents recovered $14,515 in cash, a laptop computer, a credit card embosser, a mag stripe reader/encoder, a key logger, and multiple counterfeit credit cards and re-encoded gift cards. Agents also seized a 2005 black Ford Mustang and 2012 Black Nissan sedan, both registered to Cabezas-Hernandez. Counterfeit gift cards were also found inside the Mustang.
The total actual loss identified to date is approximately $655,568.61, including more than 14 federally-insured financial institutions and over 1,000 individuals, whose account information was compromised.
Currently, Lermos-Hernandez is a fugitive. Co-conspirator Viviana Reyes was convicted at trial and is scheduled to be sentenced on May 14, 2014. Danay Crespo-Rodriguez pleaded guilty and is scheduled to be sentenced on June 25, 2014. Lazaro Rodriguez was sentenced on January 22, 2014, to 37 months’ imprisonment. Abel Osoria-Cuok, who was only involved in the conspiracy for approximately three weeks, was sentenced to a term of five years’ probation on February 21, 2014.This case was investigated by the Tampa Police Department, Florida Department of Law Enforcement and the United States Secret Service (USSS), all of whom are members of the USSS’s Credit Card Fraud and Identity Theft Task Force. It is being prosecuted by Assistant United States Attorneys Mandy Riedel and Suzanne Nebesky.
Sureño Street Gang Members Federally Indicted for Racketeering and MurderRead the Press Release
SAN FRANCISCO – Yesterday, a federal grand jury in San Francisco indicted 14 members of the 19th Street Sureños gang and the associated 16th Street Sureños gang with a variety of charges, including racketeering and murder, announced United States Attorney Melinda and Clark Settles, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in San Francisco.
Thirteen of the defendants were arrested on March 12, 2014, in a joint law enforcement operation that took place in San Francisco and Daly City, Calif. Agents and investigators from HSI and San Francisco Police Department, with assistance from U.S. Secret Service and Daly City Police Department, arrested all of the named defendants but Alberto Torres, who is expected to be taken into custody shortly.
The 14 defendants are charged in a 16-count indictment issued by the grand jury on March 6, 2014, and unsealed earlier yesterday. The 13 defendants in federal custody made their initial appearances yesterday before the Honorable Nathanael Cousins, United States Magistrate Court Judge.
Named in the indictment are:
- Eduardo Alvarez, a/k/a “Clumsy,” 25, of San Francisco;
- Elias Chavez, a/k/a “Kiko,” 26, of San Francisco;
- Luis Cid-Salinas, a/k/a “Lonely,” 29, of San Francisco;
- Ignacio Cruz, a/k/a “Nacho,” 24, of San Francisco;
- Juan Carlos Garcia-Gomez, a/k/a “Lil Ghost,” 27, of San Francisco;
- Jairo Hernandez, a/k/a “Joker,” 33, of San Francisco;
- Orlando Carlos Hernandez, a/k/a “Chisto,” 31, of Oakland;
- Jusef Nathan, a/k/a “Boo,” 35, of San Francisco;
- Rogelio Real, a/k/a “Payaso,” 29, of San Francisco;
- Mario Serrano, a/k/a “Caballo,” 31, of San Francisco;
- Alberto Torres, a/k/a “Taz,” 32, of San Francisco;
- Carlos Vasquez, a/k/a “Malo,” 26, of San Francisco;
- Weston Venegas, a/k/a “Cartoon,” 24, of Daly City; and
- Michael Viera, a/k/a “Lil Rocks” or “Rocks,” 24, of San Francisco.
All 14 defendants are charged with racketeering conspiracy, conspiracy to commit murder in aid of racketeering, and conspiracy to commit assault with a dangerous weapon in aid of racketeering, arising from the defendants’ participation as members and associates in the racketeering enterprise alleged as the 19th Street Sureños. They are also charged with using firearms in furtherance of crimes of violence. According to the indictment, the 19th Street Sureños gang constitutes a racketeering enterprise and its members and associates agreed to conduct the affairs of the enterprise through, among other crimes, murder, robbery, narcotics trafficking, obstruction of justice, and tampering with witnesses.
Two of the 14 racketeering defendants – Jairo Hernandez and Carlos Vasquez – are also charged with one count of murder in aid of racketeering committed on August 30, 2011. Two other defendants – Ignacio Cruz and Elias Chavez – are charged with four counts of attempted murder on January 4, 2014. Defendants Albert Torres and Michael Viera are charged with two counts each of assault with a dangerous weapon in aid of racketeering on May 31, 2013. Defendant Eduardo Alvarez is charged with two counts of assault with a dangerous weapon in aid of racketeering, in connection with an incident on September 1, 2013, and an incident on September 8, 2013.
All 14 defendants face up to life in prison, while Jairo Hernandez and Carlos Vasquez are subject to the death penalty.
Any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, in accordance with 18 U.S.C. § 3553(a). In addition, although Jairo Hernandez and Carlos Vasquez are eligible for the death penalty for their participation in the August 30, 2011, murder, the decision whether to seek the death penalty against either of them is pending.
Andrew M. Scoble is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Christine Tian and Ponly Tu. This prosecution is the result of an investigation initiated by HSI and the San Francisco Police Department in 2010. U.S. Attorney Melinda Haag and HSI Special Agent in Charge Settles would also like to thank the U.S. Marshals Service for its assistance.
Please note, an indictment contains only allegations against an individual and, as with all defendants, the defendants in this case must be presumed innocent unless and until proven guilty.
(Sureños indictment )
Sheffield Lake Man Charged with Conspiracy to Commit Mail FraudRead the Press Release
A Sheffield Lake man was charged with conspiracy to commit mail fraud for his role in defrauding the Cleveland Clinic out of more than $150,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office.
Randy Breininger, 43, was the Institute Administrator within the Anesthesiology Institute at the Cleveland Clinic. Richard Zukowski owned and operated an independent recruiting firm called the David Anthony Group, Inc. or DAG. The company maintained a contract with the Cleveland Clinic from 2008 through January 2013 to help locate and recruit certified registered nurse anesthetists to work within the Clinic’s Anesthesiology Institute, according to the criminal information.
The Cleveland Clinic paid DAG commissions, equal to a percentage of the first year annual salary, for each successful certified registered nurse anesthetist recruited by DAG, according to the information.
Breininger submitted invoices related to the commissions for people purportedly recruited by DAG. An individual identified as J.T. was the Institute Finance Director for the Anesthesiology Institute at the Cleveland Clinic. J.T. approved invoices related to commissions for individuals purportedly recruited by DAG, according to the information.
Breininger and Zukowski conspired from about June 15, 2010 through around January 2013, according to the information.
Breininger provided names, dates of invoice and DAG commission figures to Zukowski for 10 individuals. Breininger instructed Zukowski to submit a recruiting invoice through DAG for each individual whose name Breininger provided. At no point did Zukowski or DAG recruit the 10 individuals for employment at the Cleveland Clinic, according to the information.
Breininger requested J.T. authorize the 10 invoices submitted by Zukowski. J.T. authorized the payments and routed the approved invoices for payment at the Cleveland Clinic. The Cleveland Clinic mailed Zukowski eight checks which totaled more than $150,00, according to the information.
Breininger then asked Zukowski to return half the money Zukowski received as payment for the invoices. In order to fulfill his tax obligations for the eight checks, Zukowski transferred only about one-third of the proceeds to Breininger. Zukowski withdrew approximately $60,000 in cash, in increments between $1,500 and $2,000, and hand delivered the cash to Breininger in envelopes, according to the information.
Zukowski pleaded guilty last year to one count of conspiracy to commit mail fraud and is scheduled to be sentenced in May.
This case is being prosecuted by Special Assistant U.S. Attorney Derek Kleinmann following an investigation by the Federal Bureau of Investigation.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Shalimar Man Sentenced to 30 Years in Federal Prison for Child Exploitation ChargesRead the Press Release
PENSACOLA, FLORIDA, – United States Attorney Pamela C. Marsh announced that Joshua Douglas Taylor, 24, of Shalimar, Florida, was sentenced yesterday afternoon by Chief U.S. District Judge Casey Rodgers to 360 months in prison for receipt and transportation of child pornography.
Taylor’s sentence was the result of conduct that occurred between October 28, 2011, and February 16, 2012. During that time, Taylor knowingly and intentionally received and transported images and videos of child pornography.
In addition to the term of imprisonment, Taylor was also sentenced to a life term of supervised release.
Ms. Marsh credited the success of this prosecution to the joint efforts of the agencies participating in the North Florida Internet Crimes Against Children Task Force, particularly agents from the Federal Bureau of Investigations, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Pensacola Police Department, the Okaloosa County Sheriff’s Office, and the Walton County Sheriff’s Office.The case was prosecuted by Assistant U.S. Attorney J. Ryan Love.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov .
Sean Kelly Sentenced to Five Years in Prison for MethRead the Press Release
The United States Attorney's Office announced that SEAN MICHAEL KELLY, 37, of Columbia Falls, was sentenced to 63 months in prison followed by 5 years supervised release by Senior U.S. District Judge Donald Molloy on March 14, 2014. In December 2013, the defendant pled guilty to conspiracy to distribute methamphetamine.
Assistant U.S. Attorney Tara Elliot told the Court in an Offer of Proof that Northwest Drug Task Force Agents received information from a confidential source that Kelly was actively involved with the distribution of dangerous drugs and made daily rounds throughout the valley to resupply people that are selling drugs for him.
Agents obtained a search warrant to attach a GPS tracking device to the vehicle used by defendant Kelly and followed the vehicle between Idaho and Montana by use of the GPS between December 6, 2012 and January 3, 2013. On January 3, 2013 Deputies observed the
Chevrolet pickup traveling on Hwy 83. The vehicle had a headlight out and a traffic stop was conducted on the vehicle. The driver and sole occupant of the vehicle was defendant Kelly. Kelly had an active warrant for his arrest and was detained on this warrant. The vehicle was then towed to a Flathead County secure storage facility in anticipation of a search warrant.
On January 7, 2013, Agents applied for and received a Montana State District Court search warrant for the 2002 Chevrolet Pickup truck. During the search NWDTF Agents located a black zippered case inside of a coat on the front passenger seat of the truck. Inside the case (often referred to as a kit) Agents found six syringes, a spoon, and a jewel bag containing 1 gram of methamphetamine. As agents searched further they found a package located within the tail-gate. The package was wrapped in several layers of plastic, coffee grounds, carbon paper and duct tape. The package contained approximately 423 grams of pure methamphetamine.
The term "pure methamphetamine" refers to the purity contained in the transacted amount which is usually "cut" with inert ingredients that make the actual product less pure but more profitable as drugs are generally sold based on quantity not quality.
Santa Clara Resident Sentenced to Forty Four Months in Prison for Burglary of Controlled SubstancesRead the Press Release
SAN FRANCISCO – Jerry Silveira was sentenced on March 12, 2014, forty four months in prison for burglary of controlled substances and possession with the intent to distribute controlled substances, announced United States Attorney Melinda Haag and Drug Enforcement Administration Special Agent in Charge Jay Fitzpatrick.
Silveira, 35, of Santa Clara, was indicted by a federal grand jury on June 13, 2013. He was charged with burglary of controlled substances in violation of 18 U.S.C. § 2118(b), possession with intent to distribute a Schedule II controlled substance in violation of 21 U.S.C. § 841(a), and possession with intent to distribute methamphetamine in violation of 21 U.S.C. § 841(a).
Silveira pleaded guilty on November 12, 2013, to burglary of controlled substances and to possession with intent to distribute controlled substances. According to the plea agreement, Silveira admitted that on March 1, 2013, he entered the Palo Alto Medical Foundation pharmacy in Palo Alto, Calif. without permission, and stole approximately 5,737 pills from the pharmacy. He also admitted that the replacement value of the stolen pills to the pharmacy is $14,512.
The sentence was handed down by the Honorable William Alsup, United States District Court Judge, following the guilty plea. Judge Alsup also sentenced the defendant to a 3 year period of supervised release, and ordered him to pay ordered to pay $14,512 in restitution to the Palo Alto Medical Foundation. The defendant has been in federal custody since his initial appearance on June 24, 2013.
Chinhayi Coleman Cadet is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Elizabeth Garcia. The prosecution is the result of a one month investigation by the Palo Alto Police Department and the Drug Enforcement Administration.
(Silveira indictment )
Ringleader of Identity Theft Ring and Accomplice Plead 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 Jennifer Robinson, 36, of West Palm Beach, and Elton Baker, 29, of Center Hill, pled guilty for their participation in a wide-ranging identity theft scheme.
Specifically, Robinson pled guilty to all counts in a superseding indictment, which included one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. ' 1349, twelve counts of wire fraud, in violation of 18 U.S.C. ' 1343, eleven counts of stealing government monies, in violation of 18 U.S.C. ' 641, twelve counts of aggravated identity theft, in violation of 18 U.S.C. ' 1028A, and, one count of unauthorized access device fraud, in violation of 18 U.S.C. ' 1029(a)(2). Elton Baker pled guilty to conspiracy to commit wire fraud, three counts of wire fraud, and one count of aggravated identity theft. At sentencing, the defendants face a maximum of ten years in prison for each count of conspiracy to commit wire fraud, wire fraud, theft of government funds, and unauthorized access device fraud; and, a mandatory term of two years in prison for the aggravated identity theft charge, to run consecutively to any other sentence.
Sentencing is scheduled for May 23, 2014 at 2:00 p.m. before U.S. District Judge Kenneth Marra.
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.
Pierce County Man Sentenced to 14 Years in Prison for Plotting to Hire ‘Hit Man’ to Assassinate People in VietnamRead the Press Release
A 48-year-old University Place, Washington man was sentenced today in U.S. District Court in Seattle to 14 years in prison and five years of supervised release for Conspiracy to Kill Persons in a Foreign Country and Solicitation to Commit a Crime of Violence, announced U.S. Attorney Jenny A. Durkan. LONG VAN NGUYEN, pleaded guilty in September 2013, admitting that in 2012 he tried to pay to have various people in Vietnam killed. NGUYEN thought that he was hiring an assassin to carry out the murders when in fact he was dealing with undercover federal law enforcement agents. At sentencing U.S. District Judge Robert S. Lasnik said, “he committed two very serious offenses. . . you cannot dismiss this as mere puffery.”
According to records in the case, in March 2012 NGUYEN solicited an undercover Homeland Security Investigations (HSI) special agent to assassinate people in Vietnam. NGUYEN had told others that he had sent $100,000 to a nephew in Vietnam, instructing him to spend only the interest earned by the money. Instead, the nephew spent all the money so NGUYEN wanted him killed. The undercover agent told NGUYEN he had associates in Vietnam who could do the killings. NGUYEN agreed to a plan whereby his nephew ‘Bon’ would show the ‘assassins’ who NGUYEN wanted killed. After identifying two proposed victims, NGUYEN then instructed the undercover agent that he wanted the nephew ‘Bon’ killed as well. An undercover FBI agent posed as a possible assassin in the scheme. NGUYEN paid the undercover FBI agent additional money for the hit, and added four more people to the list of those he wanted killed. He provided pictures to the undercover HSI special agent of the four he wanted killed. NGUYEN was arrested on July 7, 2012 and has been in custody ever since.
“Nguyen was adamant he wanted these people dead,” said Brad Bench special agent in charge of HSI Seattle. “HSI and Vietnamese authorities had to act fast to save lives. HSI has more than 70 international offices, and we work closely with foreign law enforcement to bring criminals such as Nguyen to justice.”
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), with assistance from the FBI and Vietnam Ministry of Public Security. The case was prosecuted by Assistant United States Attorneys Jill Otake and Ye-Ting Woo.
Philadelphia Man Charged with Stealing Dead Mother's BenefitsRead the Press Release
Donald Sheppard, 57, of Philadelphia, PA, was charged today by Information with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the information, after Sheppard’s mother died in December 2001, Sheppard improperly received and converted to his own use the Retirement and Suvivor’s Insurance (RSI) benefit payments that were intended for her. He collected these payments from early 2002 until the benefits were suspended in or about March 2005.
It is further alleged that between May 2003 and August 2012, Sheppard improperly received and converted to his own use the SSI benefits for individual J.B. and, between December 2005 and August 2012, improperly received and converted to his own use the SSI benefits for individual A.M. Sheppard allegedly defrauded the Social Security Administration of approximately $162,153.85.
If convicted, the defendant faces a maximum possible sentence of 10 years imprisonment, a three-year period of supervised release, a $250,000 fine, a $100 special assessment, and the imposition of full restitution.
The case was investigated by the Social Security Administration-Office of the Inspector General and Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Patrick J. Murray.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia Man Charged with Stealing Dead Mother's BenefitsRead the Press Release
Donald Sheppard, 57, of Philadelphia, PA, was charged today by Information with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the information, after Sheppard’s mother died in December 2001, Sheppard improperly received and converted to his own use the Retirement and Suvivor’s Insurance (RSI) benefit payments that were intended for her. He collected these payments from early 2002 until the benefits were suspended in or about March 2005.
It is further alleged that between May 2003 and August 2012, Sheppard improperly received and converted to his own use the SSI benefits for individual J.B. and, between December 2005 and August 2012, improperly received and converted to his own use the SSI benefits for individual A.M. Sheppard allegedly defrauded the Social Security Administration of approximately $162,153.85.
If convicted, the defendant faces a maximum possible sentence of 10 years imprisonment, a three-year period of supervised release, a $250,000 fine, a $100 special assessment, and the imposition of full restitution.
The case was investigated by the Social Security Administration-Office of the Inspector General and Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Patrick J. Murray.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Patricia Ann Halcomb-Segna Sentenced in U.S. District CourtRead the Press Release
The United States Attorney(s Office announced that during a federal court session in Billings, on March 5, 2014, before Senior U.S. District Judge Donald W. Molloy, PATRICIA ANN HALCOMB-SEGNA, 44, of Billings, Montana, was sentenced to a term of:
Prison: 110 months
Special Assessment: $ 100
Restitution: N/A
Supervised Release: 5 years
According to an Offer of Proof filed by Assistant U.S. Attorney Brendan McCarthy, in July of 2012, members of the Eastern Montana HIDTA were investigating Halcomb-Segna for the sale of methamphetamine in the Billings area. After a search warrant was conducted at her residence, Halcomb-Segna told law enforcement that she first began obtaining methamphetamine from R.F. in April of 2011. She would receive over one ounce a week from R.F. In May of 2011, she also transported methamphetamine to Cut Bank, Montana for D.T. She made four or five trips to Cut Bank. In January of 2012, she began obtaining approximately an eighth on ounce of methamphetamine on ten different occasions from K.H. In May or June of 2011, the defendant began obtaining larger quantities-an eighth to a quarter ounce of methamphetamine-from J.W. and T.E.
The defendant estimated that she distributed at least a quarter ounce of methamphetamine each week for the two months prior to July of 2012. She also stated that prior to that time and starting in 2011, she distributed smaller quantities of methamphetamine.
Orlando Man Arraigned on Charges of Threatening to Kill the President of the United States and Other Federal OffensesRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that today Jason Lynn Gay (40, Orlando) was arraigned in federal court on an indictment charging him with one count of threatening a federal official, one count of making threats against the President of the United States, and one count of mailing a threatening communication. If convicted on all counts, Gay faces up to 25 years in prison.
According to the indictment, Gay threatened to assault and murder an agent of the Federal Bureau of Investigation and threatened to take the life of and inflict bodily harm upon the President of the United States of America. He made these threats in a communication that he mailed to the U.S. Courthouse in Orlando. Gay also threatened to “blow up” the federal courthouse in the same mailed communication.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Secret Service. It will be prosecuted by Assistant United States Attorney Andrew C. Searle.
Operation Speed Bump Press ConferenceRead the Press Release
WHEN: Monday, March 17, 2014 at 2:00 pm WHERE: Terry Sanford Federal Building
310 New Bern Avenue
Room 158
Raleigh, NC 27601-1461 Re: Operation Speed Bump Press ConferenceRALEIGH – The United States Attorney’s Office announces a press conference to discuss the Organized Crime Drug Enforcement Task Force (OCDETF) Operation Speed Bump. The following dignitaries are scheduled to join the staff of the U.S. Attorney’s Office who prosecuted the cases: Sheriff Steve Bizzell, Johnston County; Sheriff Jimmy Thornton, Sampson County; a representative of the Wayne County Sheriff’s Office; North Carolina Attorney General Roy Cooper, and Director Greg McLeod, NC State Bureau of Investigations.
Credentialed members of the media are invited to attend. For additional information please e-mail Don Connelly at [email protected].
Ocoee Man Arrested for Distribution and Possession of Child PornographyRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Shawn Williams (41, Ocoee) was arrested yesterday for the distribution and possession of child pornography. Williams made his initial appearance today on a criminal complaint and is currently detained. If convicted, he faces a maximum penalty of 20 years in federal prison on each count.
According to the criminal complaint, Williams responded to a sexually explicit Craigslist ad and began online correspondence with an Orlando man. The two men discussed their mutual interest in child pornography and attempted to make arrangements to meet, in person, for a sexual rendezvous. Williams used his cellular telephone to send the Orlando man several images of child pornography and they again discussed meeting to share their collections of child pornography. During their conversations, the Orlando man told Williams that he had a one year-old child. Williams then asked the man to send him “baby pics” and “adult with baby pics.” Agents arrested Williams at his home on March 13, 2014.
A criminal complaint is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It will be prosecuted by Assistant United States Attorney Joseph M. Schuster.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Non-Indian Man from Chama Pleads Guilty to Assaulting Jicarilla Apache WomanRead the Press Release
ALBUQUERQUE – Gabriel Armas, 30, pleaded guilty on March 14, 2014 to a misdemeanor information charging him with an assault offense under a plea agreement with the U.S. Attorney’s Office.
Armas, a non-Indian man from Chama, N.M., entered his guilty plea to an information alleging that he threatened to physically harm a Jicarilla Apache woman on May 12, 2012, in a location within the Jicarilla Apache Nation. In his plea agreement, Armas admitted assaulting the victim by placing her in fear that she was in danger of an immediate battery.
At sentencing, Armas faces a maximum penalty of a year in prison. Armas was released under pretrial services supervision pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Jicarilla Apache Tribal Police Department and is being prosecuted by Special Assistant U.S. Attorney David Adams. It was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Nicholasville Woman Found Guilty of Social Security Fraud, Bankruptcy Fraud, and Other ChargesRead the Press Release
Defendant defrauded federal agency and filed for bankruptcy despite owning millions of dollars in assets
LEXINGTON, KY. - A federal jury has found a Nicholasville woman guilty of defrauding the Social Security Administration (SSA), for approximately a decade, and fraudulently filing for bankruptcy, among other charges.
On Thursday evening, a jury convicted 51-year-old Sheryl Bruner of one count each of theft of government money, failure to disclose assets, and bankruptcy fraud. She was also convicted of ten counts of money laundering and two counts of making false statements. The jury returned the verdicts after approximately two and a half hours of deliberation, following four days of trial.
The evidence at trial established that, from 2003 until 2013, Bruner fraudulently claimed that she was disabled and had no funds or source of income, in order to qualify for financial assistance from the Supplemental Security Income (SSI) program. SSI is an income assistance program designed to provide financial assistance to elderly and disabled individuals who meet the program’s eligibility requirements. Bruner failed to disclose, and concealed from the SSA, that she owned multiple companies, which collectively earned millions of dollars during the time she was receiving financial assistance. Bruner worked primarily as a Medicaid service provider.
The evidence also established that, on May 16, 2013, Bruner filed for bankruptcy, despite the fact that she had more than a million dollars in assets. Bruner had tried to hide the amount of cash she had on hand, the bank and trust accounts she maintained or controlled, and vehicles and real estate she owned.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky andThomas Caul was recently selected as the Special Agent-in-Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations for the Atlanta Field Division.
The investigation was conducted by the Social Security Administration, Office of the Inspector General, Office of Investigations. Assistant U.S. Attorney Ken Taylor prosecuted the case on behalf of the federal government.
Bruner is scheduled to appear for sentencing in June 2014. The money laundering offenses carry a maximum of 20 years in prison, the theft of government property offense carries a maximum of 10 years, and the other offenses each carry a maximum penalty of five years. However, any sentence would be imposed by the Court, after consideration of the United States Sentencing Guidelines and the federal statutes governing the imposition of sentences.
New York Man Sentenced in Manhattan Federal Court to 61 Months in Prison for Fraudulent Investment SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that S. GEORGE MILTER was sentenced today in Manhattan federal court to 61 months in prison for participating in an investment scheme that defrauded foreign investors out of nearly $1 million. As part of the scheme, investors were lured with false promises that their funds would be safely invested in the U.S. financial markets through a legitimate broker-dealer. Instead, the money was misappropriated, used to pay certain expenses, and transferred to other entities and individuals, including MILTER and his family. MILTER pled guilty in November 2013 to one count of conspiracy to commit wire fraud and was sentenced by U.S. District Judge Katherine B. Forrest.
Manhattan United States Attorney Preet Bharara said: “Mr. Milter deliberately deceived investors, diverted their funds to members of his family and himself, and then lied when questions were asked. The sentence Judge Forrest imposed today ensures that Milter will spend substantial time behind bars paying for his fraud.”
According to the court filings and statements made in court:
MILTER held himself out as a President and Chief Executive Officer of Lempert Capital Management, Ltd., a corporation purportedly incorporated in the Cayman Islands, and Chief Executive Officer of Lempert Brothers, which was a registered broker-dealer. Starting in approximately 2005, foreign investors were lured into sending nearly $1 million to Lempert Capital’s purported management company Lempert Brothers under the pretense that those funds would be invested in the U.S. financial markets by Lempert Brothers To induce investors into wiring funds, among other false promises, MILTER told investors that the funds would be safeguarded, and that if the value of the funds dropped more than 20%, the money would be frozen and all remaining funds available for return to investors. In fact, the nearly $1 million of investor funds were misappropriated and diverted to, among other things, MILTER’s family and himself.
To keep the scheme going, MILTER sent fraudulent monthly account statements to the investors. These statements falsely reflected that the investors’ funds were invested and earning substantial income. When investors attempted to withdraw funds from their accounts, MILTER made additional false and fraudulent representations as to why the funds could not be returned when requested. For example, investors falsely were told that their money was illiquid because it had been invested in various companies that had not yet gone public.
In addition to the prison sentence of 61 months, Judge Forrest sentenced MILTER, 35, of New York, New York, to three years of supervised release and ordered him to pay a special assessment of $100. Judge Forrest also ordered restitution in the amount of $946,509, and forfeiture of the same amount, which amount represents the crime proceeds.
MILTER’s co-defendant Cliffe R. Bodden, 50, previously pled guilty and currently is serving his sentence of 74 months in prison.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s Complex Frauds Unit. Assistant United States Attorney Carrie H. Cohen is in charge of the prosecution.
Nashua Man Sentenced on Bank Robbery ChargeRead the Press Release
CONCORD, N.H. – Bradford Mullane, 32, of Nashua, was sentenced in United States District Court for the District of New Hampshire to 30 months in prison for unarmed bank robbery, announced United States Attorney John P. Kacavas.
Mullane walked into a TD Bank in Nashua, New Hampshire, on July 15, 2013, where he presented a handwritten note demanding money, and made off with more than $1,200 in stolen funds.
This prosecution arose from an investigation by the Nashua, New Hampshire Police Department. The case was prosecuted by Assistant United States Attorney Nick Abramson.
Muskogee Woman Sentenced to 70 Months for Drug ConspiracyRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that LINDA JEAN FARIES, age 31, of Muskogee, Oklahoma, was sentenced to 70 months imprisonment, followed by 5 years of supervised release for Drug Conspiracy, in violation of Title 21, United States Code, Section 846.
The charge arose from an investigation by the Muskogee Police Department and the Drug Enforcement Administration. The defendant was indicted in June, 2013 and pled guilty in July, 2013.
The Indictment alleged that beginning in or about November 2012, the exact date being unknown to the Grand Jury, and continuing until on or about April 12, 2013, in the Eastern District of Oklahoma, and elsewhere, the defendant, did willfully and knowingly combine, conspire, confederate and agree together, and with others known and unknown to the Grand Jury, to knowingly and intentionally possess with intent to distribute and distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal prison at which she will serve her nonparolable sentence.
Assistant United States Attorney Shannon Henson represented the United States.
Mountain City Residents Sentenced for Conspiring to Manufacture MethamphetamineRead the Press Release
GREENEVILLE, Tenn. – Four individuals involved in a methamphetamine conspiracy were sentenced on Mar. 12, 2014, by the Honorable J. Ronnie Greer, U.S. District Judge. Janet L. Bunting, 45, of Mountain City, Tenn., was sentenced to serve 46 months in federal prison followed by three years of supervised release. Heather M. Eller, 32, of Mountain City, Tenn., was sentenced to serve 92 months in federal prison followed by five years of supervised release. Debbie L. Snyder, 36, of Mountain City, Tenn., was sentenced to serve 60 months in federal prison, followed by four years of supervised release. Rachel M. Williams, 39, of Mountain City, Tenn., was sentenced to serve 62 months in federal prison followed by four years of supervised release. There is no parole in the federal system.
These individuals, along with 16 others were indicted in May 2013 for conspiring to manufacture methamphetamine and possessing equipment, chemicals, materials, and products to be used in the manufacture of methamphetamine. Seven others named in the indictment were also charged with distributing methamphetamine. All of those charged in this case have been adjudicated guilty and will be sentenced later this year.
The charges stemmed from a lengthy investigation spanning from August 2006 to May 2013 involving a conspiracy by these individuals to obtain pseudoephedrine and other products needed to manufacture methamphetamine in the Eastern District of Tennessee, Western District of North Carolina, and the Western District of Virginia. The pseudoephedrine and other products were then used to manufacture methamphetamine utilizing the “shake and bake” method. The methamphetamine produced was used and distributed in the Eastern District of Tennessee.
“Methamphetamine has had a devastating effect on communities in eastern Tennessee. Thanks to the collaborative efforts of so many law enforcement agencies, we have recently seen a reduction in the number of methamphetamine laboratories across the district. Our office is dedicated to combat methamphetamine related crimes and will continue to aggressively prosecute these offenses,” stated U.S. Attorney William C. Killian.
This investigation was a result of the collaborative efforts of the Johnson County Sheriff’s Office, 1st Judicial District Drug Task Force, the Tennessee Methamphetamine Task Force, and the Drug Enforcement Administration. Assistant U.S. Attorneys Suzanne Kerney-Quillen and Caryn Hebets represent the United States.
Mobile County Man Sentenced to 84 Months Incarceration Based on Illegal Possession of FirearmRead the Press Release
The United States Attorney, Kenyen Brown announces that Octavius Pickett, a 28 year old Mobile resident was sentenced today. The Honorable Kristi Dubose sentenced Pickett to 84 months incarceration followed by three (3) years of supervised release and a monetary assessment of $100. This sentence was based on Pickett’s illegal possession of a .38 caliber revolver while attempting to intimidate someone into giving Pickett money. Pickett was charged by Indictment in July 2013 and later pled guilty on December 19, 2013.
Special Agents of The Bureau of Alcohol Tobacco Firearms and Explosives and the Mobile, Alabama Police Department investigated the case and brought it to the U.S. Attorney=s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Mobile County Man Sentenced to 31 Months Incarceration Based on Possession of Stolen FirearmRead the Press Release
The United States Attorney, Kenyen Brown announces that Nicholas Sierke, a 25 year old Mobile resident was sentenced today. The Honorable Kristi Dubose sentenced Pickett to 31 months incarceration followed by three (3) years of supervised release and a monetary assessment of $100. This sentence was based on Sierke’s illegal possession of a Weatherby .270 rifle he stole during a burglary. Sierke was charged by Indictment in October 2013 and later pled guilty on December 19, 2013.
Special Agents of The Bureau of Alcohol Tobacco Firearms and Explosives and the Mobile, Alabama Police Department investigated the case and brought it to the U.S. Attorney's Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Michele O’Brien.
Medical Clinic Owner and Other Patient Recruiters Sentenced for Roles in $8 Million Health Care Fraud SchemeRead the Press Release
Several patient recruiters, including a medical clinic owner, were sentenced today for their participation in a health care fraud scheme involving Flores Home Health Care Inc., a defunct home health care company.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Acting Special Agent in Charge Brian P. Martens of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Lerida Labrada, 59; Mayra Flores, 49; and German Martinez, 36, all of Miami, were sentenced by U.S. District Judge Ursula Ungaro of the Southern District of Florida to serve 37 months, 24 months, and 24 months in prison, respectively. In addition to their prison terms, all of the defendants were sentenced to three years of supervised release and ordered to pay between $200,000 and $400,000 in restitution.
On Jan. 7, 2014, Labrada pleaded guilty to conspiracy to commit health care fraud, and Flores and Martinez pleaded guilty to conspiracy to defraud the United States and receive health care kickbacks.
According to court documents, the defendants worked as patient recruiters for the owners and operators of Flores Home Health, a Miami home health care agency that purported to provide home health and physical therapy services to Medicare beneficiaries. Labrada also owned and operated a Miami medical clinic that provided fraudulent prescriptions to patient recruiters and to the owners and operators of Flores Home Health.
The defendants would recruit patients for Flores Home Health and would solicit and receive kickbacks and bribes from the owners and operators of Flores Home Health in return for allowing the company to bill the Medicare program on behalf of the recruited Medicare patients. These Medicare beneficiaries were billed for home health care and therapy services that were not medically necessary and/or were not provided.
From approximately October 2009 through approximately June 2012, Flores Home Health was paid approximately $8 million by Medicare for fraudulent claims for home health services.
The case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division's Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorney A. Brendan Stewart of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.govMedical Clinic Owner Sentenced for Role in Multiple Health Care Fraud Schemes Totaling over $20 MillionRead the Press Release
The owner and operator of a Miami medical clinic, Merfi Corp., was sentenced today to serve 108 months in prison for her participation in multiple health care fraud schemes.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Acting Special Agent in Charge Brian P. Martens of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Isabel Medina, 49, of Miami, was sentenced by U.S. District Judge Ursula Ungaro of the Southern District of Florida. In addition to her prison term, Medina was also sentenced to serve three years of supervised release and was ordered to pay $8,437,393 in restitution.
On Jan. 7, 2014, Medina pleaded guilty before Judge Ungaro to conspiracy to commit health care fraud.
According to court documents, Medina was an owner and operator of Merfi Corp., a Miami medical clinic that employed physicians, physician assistants and other medical professionals who were authorized by law to dispense prescriptions for home health care services. Through Merfi Corp., Medina and her co-conspirators provided fraudulent home health and therapy prescriptions to the owners and operators of Flores Home Health Care Inc. and other home health care agencies, as well as to patient recruiters, in return for kickbacks and bribes.
Flores Home Health and these other home health care agencies purported to provide home health and therapy services to Medicare beneficiaries, but were in fact operated for the purpose of billing Medicare for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.
Medina has acknowledged that her involvement in fraudulent schemes at multiple home health care companies resulted in losses to the Medicare program exceeding $20 million.
The case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorney A. Brendan Stewart of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.govMedical Clinic Owner Sentenced for Role in Multiple Health Care Fraud Schemes Totaling over $20 MillionRead the Press Release
The owner and operator of a Miami medical clinic, Merfi Corp., was sentenced today to serve 108 months in prison for her participation in multiple health care fraud schemes.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Acting Special Agent in Charge Brian P. Martens of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Isabel Medina, 49, of Miami, was sentenced by U.S. District Judge Ursula Ungaro of the Southern District of Florida. In addition to her prison term, Medina was also sentenced to serve three years of supervised release and was ordered to pay $8,437,393 in restitution.
On Jan. 7, 2014, Medina pleaded guilty before Judge Ungaro to conspiracy to commit health care fraud.
According to court documents, Medina was an owner and operator of Merfi Corp., a Miami medical clinic that employed physicians, physician assistants and other medical professionals who were authorized by law to dispense prescriptions for home health care services. Through Merfi Corp., Medina and her co-conspirators provided fraudulent home health and therapy prescriptions to the owners and operators of Flores Home Health Care Inc. and other home health care agencies, as well as to patient recruiters, in return for kickbacks and bribes.
Flores Home Health and these other home health care agencies purported to provide home health and therapy services to Medicare beneficiaries, but were in fact operated for the purpose of billing Medicare for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.
Medina has acknowledged that her involvement in fraudulent schemes at multiple home health care companies resulted in losses to the Medicare program exceeding $20 million.
The case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorney A. Brendan Stewart of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
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.
Medical Clinic Owner and Other Patient Recruiters Sentenced for Roles in $8 Million Health Care Fraud SchemeRead the Press Release
Several patient recruiters, including a medical clinic owner, were sentenced today for their participation in a health care fraud scheme involving Flores Home Health Care Inc., a defunct home health care company.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Acting Special Agent in Charge Brian P. Martens of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Lerida Labrada, 59; Mayra Flores, 49; and German Martinez, 36, all of Miami, were sentenced by U.S. District Judge Ursula Ungaro of the Southern District of Florida to serve 37 months, 24 months, and 24 months in prison, respectively. In addition to their prison terms, all of the defendants were sentenced to three years of supervised release and ordered to pay between $200,000 and $400,000 in restitution.
On Jan. 7, 2014, Labrada pleaded guilty to conspiracy to commit health care fraud, and Flores and Martinez pleaded guilty to conspiracy to defraud the United States and receive health care kickbacks.
According to court documents, the defendants worked as patient recruiters for the owners and operators of Flores Home Health, a Miami home health care agency that purported to provide home health and physical therapy services to Medicare beneficiaries. Labrada also owned and operated a Miami medical clinic that provided fraudulent prescriptions to patient recruiters and to the owners and operators of Flores Home Health.
The defendants would recruit patients for Flores Home Health and would solicit and receive kickbacks and bribes from the owners and operators of Flores Home Health in return for allowing the company to bill the Medicare program on behalf of the recruited Medicare patients. These Medicare beneficiaries were billed for home health care and therapy services that were not medically necessary and/or were not provided.
From approximately October 2009 through approximately June 2012, Flores Home Health was paid approximately $8 million by Medicare for fraudulent claims for home health services.
The case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division's Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorney A. Brendan Stewart of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
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.
Medical Clinic Biller Convicted in Medicare Part C Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Brian P. Martens, Acting Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Office of Investigations Miami Office, and Amy K. Parker, Assistant Special Agent in Charge, Office of Personnel Management, Office of Inspector General, announce that a federal jury found Cecilio Pelaez Delgado, 51, of Miami, guilty of ten counts of health care fraud, in violation of Title 18, United States Code, Section 1347, and conspiracy to commit the same, in violation of Title 18, United States Code, Section 1349. Sentencing is scheduled for June 13, 2014 before U.S. District Judge Robert N. Scola, Jr.
According to the indictment and evidence admitted at trial, Pelaez Delgado was employed by a medical clinic, Viton Therapy Medical Center Inc. (Viton Therapy), a Florida corporation. Viton Therapy was an authorized medical services provider with Blue Cross and Blue Shield of Florida (BCBS) and Cigna, and was eligible to receive reimbursement from the private insurance carriers for medical services rendered to policyholders.
The evidence at trial demonstrated that Cecilio Pelaez Delgado, through Viton Therapy and another related clinic, One Solution Therapy, submitted and caused the submission of approximately $2.5 million in false and fraudulent claims for expensive infusion and injection therapies to the two insurance carriers, and was paid over $400,000 of the submitted claims. The evidence further established that the clinics paid kickbacks and bribes to beneficiaries suffering from HIV to ensure that they would attend the clinics.
Mr. Ferrer commended the investigative efforts of the FBI, HHS-OIG, and the Office of Personnel Management, Office of Inspector General. This case is being prosecuted by Assistant U.S. Attorney Christopher J. Clark.
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.
Massachusetts Man Sentenced on Drug ChargeRead the Press Release
CONCORD, N.H. – James Murphy, 30, of Massachusetts, was sentenced in United States District Court for the District of New Hampshire to 5years in prison for possession with the intent to distribute in excess of 28 grams of crack cocaine, announced United States Attorney John P. Kacavas.
On February 3, 2013, Murphy was pulled over on Interstate 95 near Spaulding, New Hampshire, for driving erratically and disobeying a police officer. A subsequent search of Murphy’s person resulted in the discovery of a substantial amount of crack cocaine, bagged for distribution.
This prosecution arose from an investigation by the Nashua, New Hampshire Police Department. The case was prosecuted by Assistant United States Attorney Nick Abramson.
Lower Brule Man Charged with Third Degree BurglaryRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury for Third Degree Burglary.
James Short Bear, age 18, was indicted on March 11, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 13, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 2 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on February 10, 2014, Short Bear unlawfully entered and remained in an unoccupied structure, with the intent to commit the crime of larceny.
The charge is merely an accusation and Short Bear is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Short Bear was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Lincoln Man Sentenced for Receipt of Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Kristopher C. Tibbs, 28, of Lincoln, Nebraska, was sentenced on March 14, in Lincoln, Nebraska to five and a half years in prison by United States District Judge John M. Gerrard for receipt of child pornography. After his release from prison, Tibbs will be required to serve a 5 year term of supervised release and be registered as a sex offender.
While conducting an operation in February of last year, investigators with the Lincoln Police Department were able to access child pornography images from computers that were using file sharing software publicly available on the Internet through Peer-to-Peer Network. On three occasions, investigators were able to make a direct connection to a specific computer which was sharing images of child pornography. Using computer programs, investigators were able to identify the IP address for that computer. The Internet service provider indicated that the IP address was assigned to Tibbs.
A search warrant was executed at Tibbs’ residence. When investigators examined Tibbs’ computer, they found digital images and over 170 videos depicting sexually explicit conduct of children under the age of 18.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.This case was investigated by the Lincoln Police Department.
Lackawanna Man Sentenced on Drug ChargesRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Angelo Vazquez-Rodriguez, 31, of Lackawanna, N.Y., who was convicted of conspiracy to possess with intent to distribute 500 grams or more of cocaine, was sentenced to 60 months in prison by Chief U.S. District Judge William M. Skretny.
Assistant U.S. Attorney John M. Alsup, who handled the case, stated that the defendant was the intended recipient of multiple kilograms of cocaine shipped from Puerto Rico. The cocaine was intercepted by law enforcement prior to delivery, refilled with sham material and allowed to be sent on to the defendant immediately prior to his arrest. On April 13, 2012, Vazquez-Rodriguez was arrested after he accepted delivery of a mail package, which he believed contained approximately two kilograms of cocaine. Officers also found a firearm with a defaced serial number at the scene of the delivery.
The sentencing is the culmination of an investigation by the U.S. Postal Inspection Service, under the direction of Acting Inspector-in-Charge Shelly Binkowski and the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division.Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office today announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Lynch in Missoula on March 13, 2014 and entering pleas of Not Guilty were:
- RING FELEZITAS SMITH, a 25-year-old resident of Missoula, appeared on charges of possession of stolen firearms. If convicted of the charge contained in the indictment, SMITH faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. PACER Case Reference: 14-05
The indictment is merely a formal charging document. It is not proof of guilt and all persons indicted are presumed to be innocent of any crime until proof of guilt is established by trial or guilty plea.
The U.S. Attorney's Office is currently transitioning its media program to new media contacts. Resources and this transition may affect the amount of information the office can process and disclose in a timely manner. Therefore, if any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html.
To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Houston Area Pastor Heads to Prison for Investment Fraud SchemeRead the Press Release
HOUSTON - Samuel Ray Palasota, 53, has been ordered to federal prison following his convictions on multiple counts of mail and wire fraud, announced United States Attorney Kenneth Magidson. The Houston-area pastor was convicted of 21 counts of mail fraud and three counts of wire fraud in conjunction with an investment fraud ponzi scheme after three days of trial on Oct. 17, 2013.
Today, U.S. District Judge Ewing Werlein Jr. found the intended loss amount to be more than $1 million, because Palasota had attempted to cause the victim to sell her home and give him those funds in addition to the $650,000 in investment funds she had already sent him. As a result of the convictions and total intended loss, the court ordered he serve 71 months in federal prison to be immediately followed by a three-year-term of supervised release. Judge Werlein further ordered the forfeiture of two vehicles Palasota had purchased with proceeds of the fraud scheme - a Dodge Ram truck and a Hyundai Genesis sedan.
During trial, the victim of the fraud scheme testified that Palasota convinced her to invest in what he claimed was a real estate investment program. Palasota provided her with documentation of the so-called real estate investment that was to be run under his company name, “The Maker’s Resources.” The documents from Palasota, which were introduced at trial, stated she would receive a “guaranteed” 40 percent return on her principal annually if she provided Palasota with $650,000 to invest. The recently divorced mother with young children agreed to the investment program and, in September 2009, sent Palasota the requested investment funds.
At the hearing today, additional evidence was presented including religious-themed letters Palasota had written to the victim in order to lull her into complacency while she was “investing” her money with him.
Detailed bank records and financial charts were introduced at trial demonstrating Palasota invested none of the victim’s funds in real estate.
During the scheme, Palasota mailed and wired funds to the woman that he termed “returns on investment.” However, the financial records illustrated that the funds Palasota sent were just a small portion of the woman’s own investment principal, rather than the profits of a legitimate investment. She further testified that the alleged returns on her investment Palasota sent convinced her that the investment program was real and was successful.
The financial documents demonstrated that instead of investing in real estate, Palasota spent Rowland’s investment funds on luxury goods, such as cars, clothing, jewelry, computer equipment and furniture, among other items. The financial documentation showed that by late 2010, Palasota had spent all of the victim’s funds. Further, by that time, Palasota’s bank account balance was negative.
Palasota was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the FBI. Assistant United States Attorneys Robert S. Johnson and Sharad Khandelwal prosecuted the case.
Hogsett Announces Sentencing of A Madison County Man on Child Pornography ChargesRead the Press Release
Prosecution represents more results in U.S. Attorney’s ongoing "Operation Community Watch"
INDIANAPOLIS - Joseph H. Hogsett, the United States Attorney, announced today the sentencing of an Anderson resident, to 70 months (nearly 6 years) in federal prison by U.S. District Judge Tanya Walton Pratt. Richard Zachary Gardner, 23, admitted guilt to charges that he received child pornography on his personal computer. This prosecution comes as the U.S. Attorney’s Office has recommitted to Operation Community Watch, a federal effort which aims to reduce the abuse of Hoosier children through innovative investigative techniques and aggressive prosecution.
“Through our Operation Community Watch initiative, we have joined with state and local partners to make clear that we will not tolerate child exploitation in Indiana,” Hogsett said. “With innovation and vigilance, we are unmasking these online predators and holding them accountable for their criminal activity.”
In August 2012, a detective with the Indiana State Police (ISP) was conducting undercover investigations into the internet sharing of child pornography. The ISP detective downloaded files from a computer that he later learned to be Gardner’s computer. The files downloaded by the detective contained images of child pornography.
On November 26, 2012, detectives with the Indiana State Police and Special Agents with the Department of Homeland Security, Homeland Security Investigations, went to Gardner’s residence in Anderson, and were granted consent to enter and search the residence. Law enforcement located a laptop computer inside the residence. A forensic investigation has revealed hundreds of videos and images of child pornography on the laptop including depictions of sexual abuse against children younger than age twelve and sadistic and masochistic conduct. Gardner admitted to downloading and receiving the images of child pornography located on the laptop.
According to Assistant U.S. Attorney MaryAnn T. Mindrum, who prosecuted the case for the government, Gardner was also sentenced to ten (10) years of supervised release at the end of his prison term, and must comply with state and federal requirements as a registered sexual offender.
This arrest comes one year after Hogsett announced a comprehensive crackdown on child exploitation in Indiana. In 2013, he launched "Operation Community Watch," which has allowed prosecutors and investigators to use cutting-edge techniques to identify and charge people in Hoosier communities who are engaged in the receipt and trafficking of child pornography materials. In this case, those efforts were facilitated by the Indiana State Police Department and the Department of Homeland Security, Homeland Security Investigations.
This case was brought as part of Project Safe Childhood, a larger nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Hogsett pointed out that in the last Project Safe Childhood reporting year, the Office prosecuted 52 defendants, an increase of 37% over the prior year, and 49 defendants were convicted and sentenced. These are all-time records for the Office. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Hogsett Announces Landmark Decision That Protects Victims of Domestic ViolenceRead the Press Release
Seventh Circuit rules that certain violations of Indiana’s Domestic Battery Statute qualify as a
“Violent Felony” Under the Armed Career Criminal ActINDIANAPOLIS - Joseph H. Hogsett, the United States Attorney, announced today the United States Court of Appeals for the Seventh Circuit’s decision in United States v. Joseph Johnson recently affirmed that certain violations of Indiana’s domestic battery statute, I.C. § 35-42-2-1.3, qualify as a “violent felony” under the Federal Armed Career Criminal Act, 18 U.S.C. § 924(e)(2)(B). This decision resolves a long-standing debate whether domestic battery in the presence of a child under the age of 16 qualifies as a “violent felony.” As such, violators face significantly stiffer penalties than they would otherwise face.
“No relationship deserves the use or threat of physical violence, said Hogsett. “This court decision adds tools to our prosecution strategies to help keep victims safe from their attackers.”
The Federal Armed Career Criminal Act punishes an individual who possesses a firearm and has at least three prior violent felony convictions with a fifteen year mandatory minimum sentence of imprisonment. Prior to this decision in Johnson, there was no precedent stating that certain violations of Indiana’s domestic battery statute are considered “violent felonies” under the Act.
On September 12, 2013, Joseph Johnson, age 35, Indianapolis, Indiana, was sentenced by the Honorable William T. Lawrence, United States District Court Judge, to fifteen years imprisonment for possessing a firearm by convicted felon. Johnson has an extensive criminal history in Marion County, including violent felony convictions for robbery, resisting law enforcement, and domestic battery in the presence of a child under the age of sixteen. Johnson’s domestic battery conviction was particularly violent.
As described by the United States Attorney’s Office at Johnson’s sentencing hearing, Johnson repeatedly punched his victim in the face, threw a buckle at her head causing a laceration, forced her to the floor, and laid on top of her all night while pouring water on her face to keep her awake. Johnson’s children were present to witness this abuse.
Johnson appealed his sentence. On February 26, 2014, the Seventh Circuit Court of Appeals affirmed Johnson’s sentence, finding that Indiana’s domestic battery statute is a “violent felony.”
According to Assistant United States Attorneys MaryAnn T. Mindrum and Cynthia J. Ridgeway, who together prosecuted this case for the government and argued the government’s position on appeal, the public is now safe from Johnson, a violent armed career criminal, who will serve his fifteen year sentence in federal prison.
Hosting today’s announcement is the staff at the Julian Center, the largest domestic violence services provider and family justice center in Indiana. For more than 39 years, its mission has been to provide the services victims need to recover and build a life absent of abuse. The Julian Center provided invaluable testimony, research, and statistics at Johnson’s sentencing hearing as to dangers and risk to domestic violence victims, and broader testimony on the cycle of violence inherent in domestic battery offenses. Jennifer Reister, Director of Non-Residential Services at The Julian Center testified that “domestic violence is the number one nonfatal cause of injury to women in the United States.”
“We are grateful that our years of work with, and service to, victims of domestic violence allowed us to provide the expertise to support the Court’s finding,” said Catherine O’Connor, president and CEO of The Julian Center. “The work on this case is just one of the many ways we seek to serve victims throughout our community.”
The Marion County Prosecutor’s Office further conveyed the impact of domestic battery on Hoosier victims by providing compelling statistical evidence at the sentencing hearing regarding the prevalence of domestic battery convictions in Marion County.
Also present for the announcement is Laura Berry, Executive Director of the Indiana Coalition Against Domestic Violence, an advocacy group helping to prevent domestic violence. “The 7th Circuit Court of Appeals has just concurred with our long held belief that felony domestic battery is a crime of violence and not just an interpersonal matter,” said Berry.
Heroin and Meth Bound for Bakken Draw 70 Month SentenceRead the Press Release
The United States Attorney(s Office announced that during a federal court session in Billings, on March 6, 2014, before U.S. District Judge Susan P. Watters, ROGER ALLEN YBARRA BERGER, a 29 year-old resident of Dickinson, North Dakota, was sentenced to a term of:
Prison: 70 months
Special Assessment: $ 100
Restitution: N/A
Supervised Release: 5 years
In an Offer of Proof filed by Assistant U.S. Attorney Brendan McCarthy, the government stated it would have proved at trial the following:
On January 10, 2013, a Montana Highway Patrol (MHP) Trooper observed a vehicle on Interstate 94 near Glendive, Montana, that failed to have visible registration tags. The Trooper approached the passenger side window of the vehicle and detected the odor of raw marijuana coming from within the suspect vehicle. The driver of the vehicle was identified as the defendant, Roger Allen Ybarra Berger. The passenger of the vehicle was identified as M.C.
The Trooper was given permission to search the vehicle by the registered owner, M.C. During the search, the Trooper discovered a backpack inside the vehicle. M.C. advised the backpack did not belong to him. Likewise, Berger also denied owning the backpack. In the backpack law enforcement found numerous items of drug paraphernalia such as tin foil, a torch, numerous small plastic baggies, and a locked box. Inside the locked box there were two bags containing powdery substances. One bag field tested positive for heroin and weighed approximately 2 ounces. The second bag field tested positive for methamphetamine and weighted approximately 1.5 ounces. Berger later admitted the backpack and the contents belonged to him.
The investigation revealed that Berger and M.C. drove from Dickinson, North Dakota, to Billings, Montana, on January 9, 2013. They stayed at a local motel in Billings, Yellowstone County, Montana. While at the motel, Berger met with his source of supply for methamphetamine and heroin - William Lawrence Barrow. Berger and M.C. had previously traveled to Billings, Montana, just before New Year's Day, 2013, to pick up more drugs from Barrow. During the previous trip in December of 2012, Berger picked up four ounces of methamphetamine and three ounces of heroin from Barrow for redistribution.
Further investigation revealed that Barrow was Berger's main drug connection out of Utah. Berger had historically distributed at least 50 grams of methamphetamine and at least 100 grams of heroin during the course of the conspiracy.
The investigation was conducted by the Montana Highway Patrol, Montana Department of Criminal Investigation, and the Drug Enforcement Administration.
Fort Thompson Woman Charged with Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota, woman has been indicted by a federal grand jury for Assault with a Dangerous Weapon.
Mary St. John, a/k/a Mary Hoisington, age 48, was indicted on March 11, 2014. She appeared before U.S. Magistrate Judge Mark A. Moreno on March 13, 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, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on January 19, 2014, St. John assaulted someone with a dangerous weapon.
The charge is merely an accusation and St. John is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
St. John was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Former Washington Park Street Superintendant Sentenced to Prison for Forging Village CheckRead the Press Release
Follow @SDILNewsDouglas T. Knowles, 37, of Washington Park, Illinois, was sentenced to 3 months in federal prison, followed by 6 months of home detention and three years of supervised release for the offense of uttering a forged check of the Village of Washington Park, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
In December 2012, Knowles, who was a public works/street superintendent for the Village of Washington Park, purchased and picked up a gas range from Gil Klein TV & Appliance, Inc., a/k/a Klein’s Brand Source, in Fairview Heights. Knowles presented a Village of Washington Park check purported to be signed by the Mayor of Washington Park for payment. It was later learned that Knowles forged the endorsement of the Mayor and used the gas range for his private residence.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service/Criminal Investigations as part of the Metro East Public Corruption Task Force. The case was prosecuted by Assistant United States Attorney Norman R. Smith.
Former CEO of Technology Start-Up Indicted for Wire Fraud and Money LaunderingRead the Press Release
SAN FRANCISCO – Yesterday a grand jury indicted Jonathan Edward (“Jon”) Mills, the former Chief Executive Officer of a San Francisco-based technology company, for wire fraud and money laundering, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
Mills, 30, of San Francisco, founded technology company Motionloft, Inc., and served as its CEO until he was fired on or about December 1, 2013. According to the Indictment, Mills falsely told several individuals that Motionloft was going to be acquired by a well-known multinational company based in Silicon Valley, and that these individuals could invest in Motionloft and reap massive profits after the acquisition closed. However, Mills used at least a substantial portion of these investments on himself, including private jet excursions, a penthouse suite rental, vacations, and to pay off other victims. According to court documents, representatives of the purported acquiring company and Motionloft’s largest investor have both stated there was no such possible acquisition of Motionloft.
Mills was arrested on February 19, 2014, in San Francisco, and he made his initial appearance in federal court in San Francisco the following day. Mills remained in custody until on or about February 28, when a relative posted property to secure his release to a halfway house pending trial. Mills’ next court appearance is Friday, March 14, at 9:30 a.m. before the Honorable Nathanael Cousins, United States Magistrate Court Judge.
The maximum statutory penalty for each count of wire fraud, in violation of Title 18, United States Code, Section 1343, is 20 years in prison, a fine of $250,000, plus restitution. The maximum penalty for money laundering, in violation of Title 18, United States Code, Section 1957, is 10 years in prison, a $250,000 fine, plus restitution. Any sentence following conviction, however, would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Doug Sprague is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Rayneisha Booth. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Please note that an indictment contains only allegations against an individual and, as with all defendants, Mills must be presumed innocent unless and until proven guilty.
(Mills indictment )
Former American Airlines Pilot Convicted of Production, Distribution, and Possession of Child PornographyRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that a federal jury yesterday found Donald Edwin Gallagher, Jr. (51, St. Petersburg) guilty of two counts of production of child pornography, one count of distribution of child pornography, and one count of possession of child pornography. Gallagher faces a maximum penalty of 30 years’ imprisonment on each production count, 20 years in prison on the distribution count, and up to 10 years for the possession charge. His sentencing hearing will be scheduled for a later date.
Gallagher was arrested on a criminal complaint on July 24, 2013, and indicted on December 18, 2013.
According to evidence presented at trial, in January 2013 an undercover detective with the St. Petersburg Police Department downloaded approximately 15 files of child pornography from an Internet Protocol (IP) address that traced back to Gallagher’s residence, in St. Petersburg. Based upon the investigation into the origin of these images, the Federal Bureau of Investigation and other local agencies executed a federal search warrant at that residence. During the search, agents located and seized a laptop computer belonging to Gallagher, as well as hard drives and other digital media, on which agents located thousands of images and hundreds of videos containing child pornography. Upon further investigation and review of Gallagher’s digital media, law enforcement recognized the background in some of the pornographic images and videos as being Gallagher’s residence. Law enforcement later determined that Gallagher had produced images and videos of two minor victims engaged in sexually explicit conduct. Gallagher stored these images and videos on his various digital devices.
This case was investigated by the Federal Bureau of Investigation and members of the FBI’s Child Exploitation Task Force, including the Largo Police Department and the St. Petersburg Police Department. It is being prosecuted by Assistant United States Attorneys Josephine W. Thomas and Stacie B. Harris.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.