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12 March 2014
BGF Associate Sentenced to over 11 Years in Prison in Baltimore Jail Racketeering ConspiracyRead the Press Release
BGF Associate Arranged for Correctional Officers to Smuggle Contraband into the Jail, Which He Sold to Other Inmates, Including BGF Members
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Jermaine McFadden, age 25, today to 140 months in prison followed by three years of supervised release for participating in a racketeering conspiracy arising from the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Secretary Gregg Hershberger of the Maryland Department of Public Safety and Correctional Services; Baltimore Police Commissioner Anthony W. Batts; and Baltimore City State’s Attorney Gregg L. Bernstein.This case was developed as a result of the efforts of the Maryland Prison Task Force, formed in 2011 with the Maryland Department of Public Safety and Correctional Services, local, state and federal law enforcement agencies, and prosecutors. The Task Force has met regularly for over three years, generating recommendations to reform prison procedures and producing leads that have been pursued by state, local and federal criminal investigators. The investigation is continuing.
According to court documents, BGF has been the dominant gang at the BCDC, and in several connected facilities, including the Baltimore Central Booking Intake Center (BCBIC), the Women’s Detention Center, which houses many men, and in the Jail Industries Building.
According to his plea agreement, McFadden was associated with BGF while incarcerated at BCDC in 2012 to 2013. McFadden arranged with correctional officer Katera Stevenson and another officer for Percocets, cell phones, tobacco, marijuana and other contraband to be brought into BCDC, which he sold to BGF members and other inmates.
Eleven correctional officers, including Katera Stevenson, age 25, have pleaded guilty to their roles in the conspiracy, and three have been sentenced to between 32 and 42 months in prison. Three BGF members have pleaded guilty to the racketeering enterprise and two of them were sentenced to between nine years and 151 months in prison.
U.S. Attorney Rosenstein recognized the efforts of the other members of the Maryland Prison Task Force, including: Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Chief Mark A. Magaw of the Prince George’s County Police Department; United States Marshal Johnny Hughes; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Tom Carr, Director of the Washington-Baltimore High Intensity Drug Trafficking Area; and Dave Engel, Executive Director of the Maryland Coordination and Analysis Center.
United States Attorney Rod J. Rosenstein praised the FBI, Maryland Department of Public Safety and Correctional Services, Baltimore Police Department, and Maryland Prison Task Force, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Ayn B. Ducao, who are prosecuting this Organized Crime Drug Enforcement Task Force case.Archie Man Pleads Guilty to $109,000 Social Security FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Archie, Mo., man pleaded guilty in federal court today to stealing government funds by working full time while he received more than $109,000 in Social Security disability payments.
Michael Burt, 39, of Archie, pleaded guilty before U.S. District Judge Gary A. Fenner to the theft of government money.
According to today’s plea agreement, Burt was approved to receive Social Security disability payments in December 2002 due to back disorders. Burt was deemed to be medically disabled and unable to work at a substantial gainful activity level as a result of his disability.
In July 2004, however, Burt began working full time for Two Bit Training in Overland Park, Kan., which provides horse riding lessons, hunter/jumper training and horse show assistance to its patrons. Between July 2004 and sometime in 2007, Burt worked at a substantial gainful activity level at Two Bit Training doing all sorts of manual labor, including cleaning stalls and looking after the horses. He failed to report his work activity to the Social Security Administration because he knew his work activity would impact his eligibility to receive disability payments. In fact, Burt concealed his work activity by falsely telling the Social Security Administration that he was not working.
Burt also had two minor children who were eligible to receive Social Security auxiliary benefits contingent on his eligibility to receive payments. Due to the fact that Burt was not eligible to receive disability payments, his minor children were also not eligible to receive the auxiliary payments they received. Burt also received a one-time $250 economic stimulus payment under the American Recovery and Reinvestment Act of 2009 that he was not entitled to receive.
As a result of Burt’s intentional concealment of his work activity as part of a scheme to fraudulently obtain Social Security disability payments, the total fraud loss incurred by Burt’s theft is $109,142. Under the terms of today’s plea agreement, Burt must make full restitution to the Social Security Administration.
Under federal statutes, Burt is subject to a sentence of up to 10 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Trey Alford. It was investigated by the Social Security Administration, Office of Inspector General, Office of Investigations.
63 Individuals Indicted for Drug Trafficking in the Municipality of PonceRead the Press Release
SAN JUAN, Puerto Rico – U.S. Attorney for the District of Puerto Rico Rosa Emilia Rodríguez-Vélez announced the indictment and arrest of 63 defendants charged with conspiracy to possess with intent to distribute, and distribution of controlled substances. Today, DEA agents and officers of the Puerto Rico Police Department (PRPD), the agencies in charge of the investigation, executed the arrest warrants with assistance from ATF, FBI, the Puerto Rico Bureau of Special Investigations and the Department of Corrections and Rehabilitation.
The indictment, handed down March 6, 2014 by a federal grand jury and unsealed in federal court today, charges 63 individuals with conspiracy to knowingly and intentionally possess with intent to distribute cocaine base (crack), heroin, cocaine, marihuana, Oxycodone (commonly known as Percocet) and Alprazolam (commonly known as Xanax), all within 1,000 feet of the real property comprising the La Ceiba Public Housing Project and other areas nearby in the Municipality of Ponce, Puerto Rico, all for significant financial gain and profit.
The indictment alleges that beginning in 2003, the organization operated several drug points located within La Ceiba Housing Project. Some of the defendants would routinely possess, carry, brandish and use firearms to protect themselves and the drug trafficking organization from rival gangs. The leaders would supply the firearms to their coconspirators.The 63 co-conspirators had many roles in order to further the goals of the conspiracy. The following are the roles as alleged in the indictment: two leaders; four drug point owners; six enforcers; five administrators; 12 runners; 26 sellers; and 11 facilitators. All defendants are facing a forfeiture allegation of ten million dollars.
It was further part of the manner and means of the conspiracy that facilitators would act as intermediaries in drug sale transactions when clients did not want to go into the housing project. At times, taxi cabs would be used to transport organization members, narcotics and firearms to and from the La Ceiba Public Housing Project.
As part of the manner and means of the conspiracy: armed individuals that were not residents of La Ceiba were brought into La Ceiba by the leaders, administrators and drug point owners to provide security and protection from rival gangs.
“Violent drug trafficking gangs should know that we are determined to break their grip on communities, and that they will face severe penalties for their crimes,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “Federal and local law enforcement agencies remain committed to using every tool available to attack these criminal organizations, and to reduce gang violence and bring narcotics and firearms violators to justice.”
“DEA and the Police of Puerto Rico again join forces in support of the US Attorney’s Office Violent Crime Initiative to help eradicate violent drug trafficking organizations intimidating and affecting the quality of life of the law abiding citizens of the City of Ponce,” said Vito Salvatore Guarino, Special Agent in Charge of the Drug Enforcement Administration (DEA), DEA Caribbean Division. “Our joint efforts with the Police of Puerto Rico Strike Forces and the U.S. Attorney’s Office will continue across the Island as we continue bringing to justice other violent drug trafficking organizations regardless in what part of the island they operate.”
Assistant U.S. Attorney Teresa Zapata is in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
4 Charged with Sex Trafficking of MinorsRead the Press Release
HOUSTON – Emanuel Dandre Wade, 24, has been indicted along with Charmaine Henderson, 25, Ashley Shawntal Williams, 21, and Darquesha Perry, 26, for conspiracy to commit sex trafficking of minors, announced United States Attorney Kenneth Magidson. Henderson and Wade are also charged with one and five counts of sex trafficking of minors, respectively.
The six-count indictment, returned under seal March 4, 2014, was unsealed in its entirety upon the arrest of Williams today. She is expected to make her initial appearance before U.S. Magistrate Judge Stephen Smith at 10:00 a.m. or 2:00 p.m., at which time the government expects to request her detention pending further criminal proceedings.
Henderson has been in state custody on charges stemming from this investigation and will make her initial appearance on the federal charges today at 10:00 a.m.
Wade will also appear on these charges today at 10:00 a.m. He was taken into custody Feb. 10, 2014, upon the filing of a criminal complaint and appeared for a detention hearing two days later. At that time, U.S. Magistrate Judge George Hanks found probable cause that Wade committed the crime of sex trafficking of a minor, that he was a danger to the community and a flight risk. He was ordered into custody pending further criminal proceedings.
Perry was taken into custody March 6 and was released upon posting bond, but will have to wear an electronic monitor and abide by several conditions including having no unsupervised contact with minors.
The criminal complaint, filed Feb. 10, 2014, alleges the girls were forced to prostitute for Wade and were severely beaten in some instances.
According to that complaint, Williams supplied a vehicle in which Wade transported several minor victims to dates where the girls participated in commercial sex acts. Williams often transported the girls herself, according to the allegations. In one instance, after one of the victims had left, Williams allegedly lured her out and transported her back to Wade who then beat her to the point that she needed medical attention, according to the charges.
The complaint further alleges Perry transported a minor victim to Wade on many occasions when the minor victim was caused to participate in commercial sex acts and Perry participated in commercial sex acts herself.
All four defendants face up to life in federal prison for the conspiracy charge, upon conviction. For sex trafficking of minors, Henderson and Wade also face a minimum of 10 years and up to life imprisonment on each count of conviction. All charges also carry as possible punishment a fine of up to $250,000.
The Houston FBI Innocence Lost Task Force, which includes personnel from the FBI, Houston Police Department and the Harris County Sheriff’s Office, investigated this case. Assistant United States Attorney Sherri L. Zack is prosecuting.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
11 March 2014
Waterloo Convenience Store Manager Charged with Selling Synthetic Drug Known as "Bath Salts"Read the Press Release
Earl James Ramos, age 26, from Waterloo, Iowa, has been charged with distributing a synthetic drug called pentedrone. The charges are contained in a Complaint unsealed today in United States District Court in Cedar Rapids.
The Complaint alleges that, on or about October 2 and October 8, 2012, Ramos distributed pentedrone to another person at the convenience store in Waterloo where Ramos worked as manager. The Complaint alleges that pentedrone is in the class of substances commonly referred to as “bath salts,” and is a form of synthetic methcathinone.If convicted, Ramos faces a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, $100 in special assessments, and life years of supervised release following any imprisonment.
Ramos appeared today in federal court in Cedar Rapids and was released on bond.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Dan Chatham and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Tri-County Drug Enforcement Task Force; the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa Division of Narcotics Enforcement; and the Sixth Judicial District Department of Correctional Services; the Federal Bureau of Investigation; the Department of Homeland Security; and the Internal Revenue Service.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 1:14-mj-00057-JSS.
Waco Family Charged in Federal Grand Jury IndictmentRead the Press Release
Three Waco family members face federal drug distribution charges announced United States Attorney Robert Pitman.
A federal grand jury indictment, returned today in Waco, charges 58–year-old Phillip Larry Koss, his wife, 60-year-old Le’Ann Koss and his son, 26-year-old Conner Phillip Koss with one count conspiracy to possess with intent to distribute marijuana and one substantive count of aiding and abetting the possession with intent to distribute marijuana.
The indictment alleges that from October 2010 until November 2013, the defendants conspired to possess over 50 kilograms of marijuana.
On November 29, 2013, authorities executed a search warrant at the Koss’ residence and discovered approximately 12 pounds of tetrahydrocannabinol, commonly known as THC, several firearms and some $27,000 in U.S. Currency. Court records allege that the defendants obtain high grade marijuana from the State of California and arrange for it to be transported to their Waco residence for distribution. Authorities have also recovered approximately 200 pounds of marijuana resulting from related search warrants executed in California as well as traffic stops during this investigation.
Upon conviction, each charge calls for up to 20 years in federal prison. The defendants, who are in custody at this time, are scheduled to have an Initial Appearance in Waco at 2:00pm on March 20, 2014, before United States Magistrate Judge Jeffrey C. Manske.
This investigation is being conducted by the McGregor Police Department, Texas Department of Public Safety and the Yuba County (CA) Narcotics Enforcement Team. Assistant United States Attorney Mary F. Kucera is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Vian Man Pleads Guilty to Maintaining Drug Involved Premises for Manufacture, Distribution and Use of MethamphetamineRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JAMI STALEY, a.k.a. "KOUNTRY", age 31, of Vian, Oklahoma, pled guilty to Maintaining Drug Involved Premises, in violation of Title 21, United States Code, Section 856.
The charges are a result of an investigation by the Sallisaw Police Department, the Bureau of Indian Affairs and the Drug Enforcement Administration. The defendant was indicted in August, 2013.
The Indictment alleged that during the period of on or about August 1, 2012 to on or about present date, within the Eastern District of Oklahoma, the defendant did knowingly and intentionally maintain a place at 307 Dennis St., Vian, Oklahoma, for the purpose of distributing, manufacturing and using methamphetamine, a Schedule II Controlled Substance.
The Honorable Kimberly E. West, Magistrate 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 sentencing.
The statutory range of punishment is not more than 20 years imprisonment, and/or up to a $500,000 fine.
Assistant United States Attorney Kyle Waters represented the United States.
U.k. Resident Sentenced to 16 Years in Prison for Travelling to Ohio to Have Sex with A JuvenileRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON, OHIO – Richard Castle, 47, a resident of the United Kingdom, has been sentenced to serve 192 months in prison in connection with a trip he made to Ohio from his home in the United Kingdom in order to have sexual relations with a juvenile in June 2011.
Mythili Raman, Acting Assistant Attorney General of the Justice Department’s Criminal Division, Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Special Agent in Charge Marlon Miller of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Ohio and Michigan made the announcement after the sentencing proceeding today before U.S. District Judge Timothy S. Black in Dayton, Ohio.
Members of the Metropolitan Police Service’s Extradition Team and International Assistance Unit, housed within New Scotland Yard, arrested Castle at his home in Northampton, England on Jan. 12, 2012.
A federal grand jury indicted Castle on February 15, 2012 and Castle pleaded guilty on October 3, 2013 to charges of coercion of a minor, travelling with intent to engage in illicit sexual contact with a minor and transferring obscene material to a minor. Castle admitted that, posing as a male named Richard Joshua Parker, he used the Internet between March 2009 and June 2011 to coerce a juvenile to engage in illicit sexual activity. He flew to Dayton in June 2011 to engage in illicit sexual relations with the juvenile and stayed approximately three weeks. Castle also admitted that he transferred obscene materials to this same juvenile.
“Threats against our children can come from any corner of the globe,” U.S. Attorney Stewart said. “We must become partners with law enforcement agencies around the world in order to fight child exploitation effectively.”
The case was investigated by HSI, the Englewood Police Department, and the Vandalia Police Department. The Department is grateful for the invaluable support provided by the Miami Valley Regional Computer Forensics Laboratory, and the Ohio Internet Crimes Against Children Task Force, the U.S. Marshals Service, the HSI Attaché London Office, and the ICE Office of the Principal Legal Advisor. The Criminal Division’s Office of International Affairs also provided assistance with Castle’s extradition.
“This case is a disturbing reminder that international borders are no longer a hindrance for child predators,” said Miller. “However, today’s significant sentencing should assure victims around the world that HSI and our partners in the international law enforcement community are committed to aggressively targeting those engaged in these heinous acts.”
The case was prosecuted by Assistant U.S. Attorney Sheila Lafferty of the Southern District of Ohio and Trial Attorney Mi Yung Claire Park of the Criminal Division’s Child Exploitation and Obscenity Section.
U.S. Attorneys Booth Goodwin and Bill Ihlenfeld to Honor High School Students Selected as Ambassadors for Justice TomorrowRead the Press Release
CHARLESTON, W.Va. – United States Attorneys Booth Goodwin, Southern District of West Virginia, and Bill Ihlenfeld, Northern District of West Virginia, will host a special recognition event honoring more than 60 high school students from across the state who have been selected as United States Attorney’s Ambassadors for Justice on WEDNESDAY, MARCH 12, 2014 at 1:00 p.m. at The Culture Center, State Capitol, in Charleston. The U.S. Attorney’s Ambassador for Justice program is an initiative which honors West Virginia high school juniors who have shown outstanding character, devotion to citizenship, and a commitment to serving others.
U.S. Attorney’s Ambassador for Justice Ceremony
WHO: R. Booth Goodwin II, United States Attorney, Southern District of West Virginia
Bill Ihlenfeld, United States Attorney, Northern District of West Virginia
High School Student NomineesWHERE: The Culture Center
State Capitol, Charleston, WVWHEN: Wednesday, March 12, 2014 at 1:00 pm
U.K. Resident Sentenced to 16 Years in Prison for <br /> Travelling to Ohio to Have Sex with a MinorRead the Press Release
Richard Castle, 47, a resident of the United Kingdom, has been sentenced to serve 192 months in prison in connection with a trip he made to Ohio from his home in the United Kingdom to have illicit sexual activity with a minor in June 2011.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Carter M. Stewart of the Southern District of Ohio and Special Agent in Charge Marlon Miller of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Ohio and Michigan made the announcement after the sentencing proceeding before U.S. District Judge Timothy S. Black in Dayton, Ohio.
Members of the Metropolitan Police Service’s Extradition Team and International Assistance Unit, housed within New Scotland Yard, arrested Castle at his home in Northampton, England, on Jan. 12, 2012.
A federal grand jury indicted Castle on Feb. 15, 2012, and Castle pleaded guilty on Oct. 3, 2013, to charges of coercion of a minor, travelling with intent to engage in illicit sexual contact with a minor and transferring obscene material to a minor. Castle admitted that, posing as a male named Richard Joshua Parker, he used the Internet between March 2009 and June 2011 to coerce a minor to engage in illicit sexual activity. He flew to Dayton in June 2011 to engage in illicit sexual relations with the minor and stayed approximately three weeks. Castle also admitted that he transferred obscene materials to this same minor.
The case was investigated by HSI, the Englewood Police Department, and the Vandalia Police Department. The Department is grateful for the invaluable support provided by the Miami Valley Regional Computer Forensics Laboratory, the Ohio Internet Crimes Against Children Task Force, the U.S. Marshals Service, the HSI Attaché London Office, and the ICE Office of the Principal Legal Advisor. The Criminal Division’s Office of International Affairs also provided assistance with Castle’s extradition.
The case was prosecuted by Assistant U.S. Attorney Sheila Lafferty of the Southern District of Ohio and Trial Attorney Mi Yung C. Park of the Criminal Division’s Child Exploitation and Obscenity Section.Two Real Estate Investors Convicted for Roles in Bid-Rigging Conspiracy in San Joaquin County, Calif. Real Estate Foreclosure AuctionsRead the Press Release
WASHINGTON — Following a four-week trial, a federal jury today convicted two real estate investors for conspiring to rig bids at public real estate foreclosure auctions held in San Joaquin County, Calif. One of the investors was also convicted of obstruction of justice for destroying evidence related to the crimes.
Andrew B. Katakis and Donald M. Parker were found guilty in the U.S. District Court for the Eastern District of California, of conspiring to rig bids at real estate foreclosure auctions held in San Joaquin County from at least September 2008 until at least October 2009. Katakis was also found guilty of obstruction of justice for deleting electronic records related to the conspiracy.
Katakis was the owner of California Equity Management Group Inc. and managing partner of Lenders Financial Group LLC, both real estate investing companies based in Modesto, Calif. Parker owned and worked for several real estate investing companies based in and around Sacramento and Stockton, Calif.
“Today’s convictions send a clear signal that conspirators who illegally seek to line their pockets at the expense of distressed homeowners will be held accountable for their crimes,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The Antitrust Division and its law enforcement partners are committed to vigorously prosecuting the perpetrators of anticompetitive schemes.”
“The depressed real estate market in the Central Valley provided opportunities for fraud, including bid-rigging at foreclosure auctions,” said Benjamin B. Wagner, U.S. Attorney for the Eastern District of California. “The Antitrust Division has done great work in partnering with this office to attack this aspect of mortgage fraud.”
According to the evidence presented at trial, Katakis, Parker and co-conspirators agreed to suppress and restrain competition by rigging bids to obtain selected properties offered at public auctions in San Joaquin County. The bid-rigging conspiracy lasted from at least September 2008 until at least October 2009. The government also offered evidence that in September 2010, Katakis deleted electronic records related to the conspiracy after he received a letter notifying him that a federal grand jury had subpoenaed his bank account.
Evidence showed that after the conspirators’ designated bidder bought a property at a public auction, they would hold a second, private auction, at which each participating conspirator would bid the amount above the public auction price he or she was willing to pay. The conspirator who bid the highest amount at the end of the private auction won the property. The difference between the price at the public auction and that at the second auction was the group’s illicit profit, and it was divided among the conspirators in payoffs.
Also today, the jury could not reach a verdict on a count of mail fraud against Katakis and Parker. The jury also found W. Theodore Longley, an auctioneer who worked on behalf of various trustee companies to sell foreclosed houses at public auctions in San Joaquin County, not guilty on both counts.
Katakis and Parker were convicted of bid rigging in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine. The obstruction of justice conviction carries a maximum sentence of 20 years in prison and a $250,000 fine.
In addition to today’s convictions, 11 individuals have pleaded guilty in U.S. District Court for the Eastern District of California in connection with the investigation. They are: Anthony B. Ghio; John R. Vanzetti; Theodore B. Hutz; Richard W. Northcutt; Yama Marifat; Gregory L. Jackson; Walter Daniel Olmstead; Robert Rose; Kenneth A. Swanger; Wiley Chandler; and Anthony B. Joachim.
These convictions arose from an ongoing federal antitrust investigation of fraud and bidding irregularities in certain real estate auctions in San Joaquin County. The investigation is being conducted by the Antitrust Division’s San Francisco Office, the U.S. Attorney’s Office for the Eastern District of California, the FBI’s Sacramento Division, and the San Joaquin County District Attorney’s Office. Anyone with information concerning bid rigging or fraud related to real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-934-5300, visit www.justice.gov/atr/contact/newcase.htm, contact the U.S. Attorney’s Office for the Eastern District of California at 916-554-2700 or contact the FBI’s Sacramento Division at 916-481-9110.
The charges in this indictment were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
Two Northern California Real Estate Investors Charged with Bid Rigging at Public Foreclosure AuctionsRead the Press Release
Two Northern California real estate investors pleaded guilty for their roles in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Felony charges were filed on June 30, 2011, in the U.S. District Court for the Northern District of California in Oakland, against Grant Alvernaz, of Pleasant Hill, Calif., and Douglas Moore, of Walnut Creek, Calif. Alvernaz pleaded guilty to the charges on Sept. 7, 2011. Moore pleaded guilty to the charges on Aug. 24, 2011. The charges and the guilty pleas were unsealed yesterday. Including Alvernaz and Moore, a total of 46 individuals have pleaded guilty or agreed to plead guilty as a result of the department’s ongoing antitrust investigation into bid rigging and fraud at public real estate foreclosure auctions in Northern California.
According to court documents, Alvernaz and Moore conspired with others not to bid against one another, and instead to designate a winning bidder to obtain selected properties at public real estate foreclosure auctions in Contra Costa and Alameda counties, Calif. Alvernaz and Moore were also charged with conspiring to commit mail fraud by fraudulently acquiring title to selected Contra Costa and Alameda County properties sold at public auctions and making and receiving payoffs and diverting money to co-conspirators that would have gone to mortgage holders and others by holding second, private auctions open only to members of the conspiracy. The department said that the selected properties were then awarded to the conspirators who submitted the highest bids in the second, private auctions. The private auctions often took place at or near the courthouse steps where the public auctions were held. Alvernaz and Moore pleaded guilty to participating in the conspiracies in Contra Costa County beginning as early as February 2009 and continuing until in or about December 2010 and in Alameda County from as early as March 2009 and continuing until about November 2010.
“The integrity of real estate foreclosure markets depends on open and honest competition, which the perpetrators of these collusive schemes undermined,” said Assistant Attorney General Bill Baer in charge of the Department of Justice’s Antitrust Division. “The division will continue to pursue those who illegally enrich themselves at the expense of lenders and financially distressed homeowners.”
The department stated that the primary purpose of the conspiracies was to suppress and restrain competition in order to obtain selected real estate offered at Contra Costa and Alameda County public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner. According to court documents, these conspirators paid and received money that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties and, in some cases, the defaulting homeowner.
“The unsealed court documents narrate the criminal actions taken as part of this real estate bid-rigging conspiracy in northern California,” said David J. Johnson, FBI Special Agent in Charge of the San Francisco Field Office. “The public should consider this an example of how a competitive marketplace can be taken advantage of by those who are shortsighted by greed.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for the Sherman Act charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either amount is greater than $1 million. A count of conspiracy to commit mail fraud carries a maximum sentence of 30 years in prison and a $1 million fine. The government can also seek to forfeit the proceeds earned from participating in the conspiracy to commit mail fraud.
The charges are the latest filed by the department in its ongoing investigation into bid rigging and fraud at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa and Alameda counties, Calif. These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-436-6660, or call the FBI tip line at 415-553-7400.
Today’s cases were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.**The fraud charge(s) referenced in this press release were subsequently dismissed on the government’s motion.**
Two Men Arrested in Buncombe Co. Face Drug Trafficking Charges Following 1,400 Lbs. Marijuana SeizureRead the Press Release
ASHEVILLE, N.C. – Jose Chavez and Ely Ramirez-Sanchez were arrested on Friday, March 7, 2014 in Buncombe County and face drug trafficking charges in connection with the seizure of approximately 1,400 pounds of marijuana, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
A criminal complaint filed today in U.S. District Court in Asheville charges Jose Chavez, 31, of Candler, N.C. and Ely Ramirez-Sanchez, 28, of Canton, N.C. with one count of possession with intent to distribute 100 kilograms or more of marijuana.
According to court records and allegations contained in filed court documents:
Law enforcement officers were alerted to the pair’s drug trafficking activities in connection with a drug trafficking investigation conducted by the U.S. Drug Enforcement Administration (DEA) and its task force members. On Friday, March 7, 2014, law enforcement conducted a traffic stop of Ramirez-Sanchez’s vehicle and seized approximately 40 pounds of marijuana contained in a cardboard box located on the back seat of the car. Later that day, while executing a search warrant at Chavez’s mobile home residence, law enforcement seized two large black trash bags filled with marijuana, three digital scales, plastic wrapping material, and a handgun with an obliterated serial number. Law enforcement also seized 15 cardboard boxes containing 23 blocks of marijuana from a pull-behind box trailer, and 27 cardboard boxes containing 111 blocks of marijuana stored in a small rental truck, both located on the property. The total weight of marijuana seized from Chavez’s residence was approximately 1,400 pounds, with an estimated street value between $840,000 and $1,820,000.
The defendants are currently in federal custody and will be arraigned on the federal charges on Wednesday, March 12, 2014, in Asheville before U.S. Magistrate Judge Dennis L. Howell. The possession with intent to distribute charge carries a mandatory minimum penalty of 5 years in prison, a maximum potential penalty of 40 years in prison, and a $10,000,000 fine.
The charges contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Tompkins credited the DEA under the direction of Special Agent in Charge Harry S. Sommers and the DEA task force members for their work leading to the arrests and drug seizures. The DEA task force is made up of local law enforcement agencies, including the Asheville Police Department, the McDowell County Sheriff’s Office, the Buncombe County Sheriff’s Office, the Henderson County Sheriff’s Office, the Transylvania County Sheriff’s Office, and the Bureau of Indian Affairs, all of which provided assistance in the investigation of this case.
U.S. Attorney Tompkins also thanked the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) under the direction of Special Agent in Charge Brock D. Nicholson, the North Carolina State Highway Patrol, under the direction of Colonel William J. Grey, and the North Carolina Alcohol Law Enforcement under the direction of Director B.W. Collier for their invaluable assistance in this investigation.
The government is represented by Assistant U.S. Attorney Thomas Kent, of the U.S. Attorney’s Office in Asheville.
Two Defendants Sentenced in Greece Triple MurderRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Richard Anderson and Aston Johnson were each sentenced to four consecutive life terms plus five years by U.S. District Judge Charles J. Siragusa for participating in a large, multistate marijuana distribution conspiracy and murdering three men in furtherance of that conspiracy in the Town of Greece in March, 2010. A third defendant, Andrew Wright, will be sentenced on April 24, 2014.
“While nothing can bring back the lives of the victims, the multiple life sentences handed down today will ensure that the defendants who murdered them will never again walk the streets of this or any other community,” said U.S. Attorney Hochul. “This Office, working with our law enforcement partners at all levels, will continue to pursue members of other violent criminal organizations with the same vigor until each is brought to justice.”
In December, 2013, a jury convicted Anderson, Johnson and Wright of murdering Robert Moncriffe, Mark Wisdom and Christopher Green in Greece on March 9, 2010. The evidence presented by the Government at trial established that in the days prior to March 9, the defendants traveled to Rochester from Phoenix, Arizona and planned the murders. The evidence also showed that Anderson, Johnson and Wright targeted the victims because they believed Moncriffe, Wisdom and Green were cheating them out of proceeds from the sale of marijuana. The defendants went to the apartment in Greece where the three victims lived. They bound and gagged Christopher Green and waited for Moncriffe and Wisdom to arrive home. Once they arrived, the defendants shot the victims to death at the same time.
In addition to sentencing the defendants to prison, Judge Siragusa also imposed a $1,000,000 forfeiture judgment against defendants Anderson and Johnson as well as the forfeiture of three guns seized at the house in Phoenix, Arizona.
The sentences are the result of an investigation conducted by the Greece Police Department under the direction of Chief Todd Baxter; the Federal Bureau of Investigation; the New York State Police, under the direction of Major Mark Koss; the Rochester Police Department under the direction of Chief Michael Ciminelli; the U.S. Marshal’s Service under the direction of Marshal Charles Salina; the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley; the Monroe County Sheriff’s Department, under the direction Sheriff Patrick O’Flynn; the Monroe County Crime Analysis Center; the United States Postal Inspection Service, under the direction of Raymond Williams; the U.S. Immigration and Customs Enforcement, under the direction of Special Agent in Charge James C. Spero; the U.S. Border Patrol, under the direction of Patrol Agent in Charge Tom Pocorobba, Jr,; the New York/New Jersey High Intensity Drug Trafficking area; the Franklin County, Ohio Sheriff’s Department; the Arizona Department of Public Safety; and the Los Angeles Police Department.Truth or Consequences Man Pleads Guilty to Federal Firearms ChargeRead the Press Release
ALBUQUERQUE – Michael Capps, 52, of Truth or Consequences, N.M., pled guilty this morning in federal court in Las Cruces, N.M.to a felony information charging him with being a felon in possession of a firearm. The guilty plea was entered without the benefit of a plea agreement.
Michael Capps and his wife, Roberta Capps, 53, were arrested on May 21, 2013, on criminal complaints alleging that they unlawfully distributed quantities of Oxycodone and Oxymorphone to a DEA confidential source on three occasions between Dec. 10, 2012 and Jan. 15, 2013. On June 19, 2013, the couple was charged in a five-count indictment with one count of conspiracy and three counts of distribution of Oxycodone. The fifth count charged Michael Capps with being a felon in possession of a firearm.
According to the indictment, Roberta Capps and Michael Capps conspired to distribute Oxycodone and unlawfully distributed Oxycodone on three separate occasions on Dec. 10, 2012, Dec. 18, 2012 and Jan. 15, 2013, in Sierra County, N.M. Court filings reflect that the couple sold the Oxycodone to an individual who unbeknownst to them was a confidential source for the DEA and that Roberta Capps admitted knowing that it was illegal to sell prescription medications to others during a recorded conversation with the source.
The indictment also alleges that on May 21, 2013, the date of his arrest in this case, Michael Capps unlawfully possessed a firearm and ammunition. At the time, Capps was prohibited from possessing firearms or ammunition because he previously had been convicted of first degree burglary.
Today, Michael Capps entered a guilty plea to being a felon in possession of a firearm and ammunition. At sentencing, Capps faces a maximum penalty of ten years in prison. His sentencing hearing has yet to be scheduled.
Roberta Capps previously entered guilty pleas to Counts 1 through 4 of the indictment charging her with conspiracy and distribution of Oxycodone on Jan. 7, 2014. At sentencing, she faces a maximum penalty of 20 years in prison. Her sentencing hearing also has not yet been scheduled.
This case was investigated by the Las Cruces office of the DEA and the Truth or Consequences Police Department and is being prosecuted by Assistant U.S. Attorney Amanda L. Gould of the U.S. Attorney’s Las Cruces Branch Office.
Thoreau Man Sentenced to Twenty-Four Months for Unlawful Possession of Unregistered Sawed-Off ShotgunRead the Press Release
ALBUQUERQUE – Joe Herrera, Jr., 44, an enrolled member of the Navajo Nation who resides in Thoreau, N.M., was sentenced this morning to 24 months in federal prison followed by two years of supervised release for unlawfully possessing a sawed-off shotgun that was not registered to him.
Herrera was indicted in Feb. 2013, on the charge to which he pleaded guilty this morning. According to the indictment, Herrera unlawfully possessed the unregistered sawed off shotgun on Aug. 16, 2011, in McKinley County, N.M. Herrera admitted committing the offense when he entered his guilty plea on July 11, 2013.
The case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Gallup office of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Novaline D. Wilson prosecuted the case.
Third Defendant Pleads Guilty to Racially-Motivated Assault on White Man and African-American Woman in CaliforniaRead the Press Release
Anthony Merrell Tyler, 33, pleaded guilty in federal court today to violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act for his role in a 2011 racially motivated attack on a white man and an African-American woman in Marysville, Calif. Tyler’s co-defendants, Billy James Hammett, 30, and Perry Sylvester Jackson, 28, pleaded guilty to the same offense on Dec. 17, 2013.
According to documents filed with the court, around 10:45 p.m. on April 18, 2011, a white man and an African-American woman parked their car at a convenience store in Marysville. Shortly afterward, the three defendants, each of whom has white supremacist tattoos, attacked the man and woman based on race. After calling the male victim a “[racial slur]-lover,” Jackson punched him twice in the head through the open passenger window. At the same time, Hammett kicked the woman in the chest. A few seconds later, Tyler smashed the car’s windshield with a crowbar. As the attack continued, the woman managed to take refuge inside the convenience store. All three assailants then descended upon the male victim and began attacking him in the parking lot. He sustained abrasions on his right forearm and knees, while the woman suffered bruising to her chest. At the end of the incident, Tyler used a racial slur to refer to an African-American witness.
“These defendants attacked the victims simply because of race,” said Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels. “Such violence and intimidation have no place in our society. Where these acts occur, the Department will continue to aggressively prosecute them.”
“Diligently prosecuting hate crimes such as the unprovoked, racially motivated assault in this case has been a core mission of the U.S. Attorney’s Office in this district,” said U.S. Attorney Benjamin B. Wagner for the Eastern District of California. “That mission will continue.”
Tyler’s sentencing is scheduled for July 8, 2014. Hammett is scheduled to be sentenced on March 25, 2014, and Jackson has requested a sentencing date of April 22, 2014. Each defendant faces a statutory maximum sentence of 10 years in prison and a fine of $250,000.
This case was investigated by the FBI. The case is being prosecuted by U.S. Attorney Wagner and Trial Attorney Chiraag Bains of the Civil Rights Division.
Third Defendant Pleads Guilty to Racially Motivated Assault on White Man and African-American Woman in MarysvilleRead the Press Release
WASHINGTON – Anthony Merrell Tyler, 33, pleaded guilty in federal court today to violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act for his role in a 2011 racially motivated attack on a white man and an African-American woman in Marysville, Calif. Tyler’s co-defendants, Billy James Hammett, 30, and Perry Sylvester Jackson, 28, pleaded guilty to the same offense on Dec. 17, 2013.
According to documents filed with the court, around 10:45 p.m. on April 18, 2011, a white man and an African-American woman parked their car at a convenience store in Marysville. Shortly afterward, the three defendants, each of whom has white supremacist tattoos, attacked the man and woman based on race. After calling the male victim a “[racial slur]-lover,” Jackson punched him twice in the head through the open passenger window. At the same time, Hammett kicked the woman in the chest. A few seconds later, Tyler smashed the car’s windshield with a crowbar. As the attack continued, the woman managed to take refuge inside the convenience store. All three assailants then descended upon the male victim and began attacking him in the parking lot. He sustained abrasions on his right forearm and knees, while the woman suffered bruising to her chest. At the end of the incident, Tyler used a racial slur to refer to an African-American witness.
“These defendants attacked the victims simply because of race,” said Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels. “Such violence and intimidation have no place in our society. Where these acts occur, the Department will continue to aggressively prosecute them.”
“Diligently prosecuting hate crimes such as the unprovoked, racially motivated assault in this case has been a core mission of the U.S. Attorney’s Office in this district,” said U.S. Attorney Benjamin B. Wagner for the Eastern District of California. “That mission will continue.”
Tyler’s sentencing is scheduled for July 8, 2014. Hammett is scheduled to be sentenced on March 25, 2014, and Jackson has requested a sentencing date of April 22, 2014. Each defendant faces a statutory maximum sentence of 10 years in prison and a fine of $250,000.
This case was investigated by the FBI. The case is being prosecuted by U.S. Attorney Wagner and Trial Attorney Chiraag Bains of the Civil Rights Division.
Software Company Ceo Pleads Guilty in Manhattan Federal Court to $2 Million Securities Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ROBERT KELLY, the Chief Executive Officer of Wwebnet, Inc. (“Wwebnet”), a software development company, pled guilty today in Manhattan federal court to securities and wire fraud charges. KELLY diverted for his own personal use over $2 million in investor proceeds that was intended for the development of a software program capable of transmitting music, videos, and movies over the Internet. He used the money to trade options, to pay his personal income taxes, and for other purposes unrelated to software development or other legitimate business expenses. KELLY was originally charged in September 2012, and he pled guilty today before United States District Judge Paul A. Crotty.
Manhattan U.S. Attorney Preet Bharara stated: “Robert Kelly took more than $2 million of investor money, obtained through promises that it would be invested in his company’s new technology and in growing the business, and instead, used it to make unsuccessful options trades and to pay for his own personal income taxes. With today’s plea, Kelly has admitted to stealing and spending innocent investors’ money.”
According to the charging documents and related court proceedings:
From 2004 through November 2008, KELLY solicited investors to send money to Wwebnet, Inc., and related companies by misrepresenting that the funds would be used to develop software for transmitting music, videos, and movies over the Internet. Instead of using the millions of dollars in investor proceeds that he obtained for legitimate business purposes, KELLY diverted a substantial portion of the money that he raised for his own financial benefit. For example, KELLY transferred at least $2 million in investor funds into his personal trading account in the Cayman Islands, which he used to make a series of unsuccessful options trades. KELLY also used nearly $100,000 that he received from investors to pay his federal and state personal income taxes. At the same time that he was using investors’ money for his own personal benefit, KELLY falsely told his software development team that he was unable to allocate adequate resources for software development and could do so only when he was able to raise money from investors. As a result, Wwebnet lacked the necessary funds to develop its core product and the company ultimately failed.
KELLY, 57, formerly of New York, New York, resides in Raleigh, North Carolina. He pled guilty to one count of securities fraud and one count of wire fraud, which together carry a total maximum term of 40 years in prison. KELLY also agreed to forfeit $2,111,600 and, separately, pay $2,111,600 in restitution. The sentencing before U.S. District Judge Paul A. Crotty is scheduled for July 17, 2014, at 3:00 p.m. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation and also thanked the Securities and Exchange Commission for its assistance.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
The case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Benjamin Naftalis and Zachary Feingold are in charge of the prosecution.
U.S. v. Robert Kelly Indictment
Shasta County Investment Scheme Defendants Sentenced to 5 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Barbara Eberle, 66, and Robert Eberle, 75, both of Oxford, Ga. but formerly of Chico, Calif. were sentenced today by United States District Judge Garland E. Burrell Jr. to five years in prison and ordered to pay more than $13.2 million in restitution, United States Attorney Benjamin B. Wagner announced. The Eberles pleaded guilty to securities fraud on July 20, 2012.
The defendants were indicted on August 22, 2007, for a fraud scheme that involved life settlement insurance contracts or viaticals. A “life settlement” or “viatical settlement” was a transaction in which a person sold the death benefit of his or her life insurance policy to a third party in return for a lump sum cash payment, which represented a discounted percentage of the policy’s face value. The insured was usually ill or elderly and would sell his or her interest in the insurance policy to a company. That company would resell the interest to investors, in whole, or as fractional interests. The return on the investment depended on the length of time the ill or elderly person lived, with a greater return the sooner the insured person died. If the insured person did not die, there was no return on the investment. The life expectancy of the insured person was to be estimated by a medical doctor, after a review of the insured person’s medical records.
According to court documents, Donald Neuhaus operated a number of businesses for the purpose of acquiring viaticals and life settlements from insured people and marketing these viaticals and life settlements to investors. He had sales people working on his behalf, including Robert and Barbara Eberle, who sold fractionalized interests in these viaticals.
Robert Eberle owned Lexus Financial and later Eagle Investments in Chico with his wife Barbara Eberle. Robert and Barbara Eberle were the primary sales force for Donald Neuhaus. They created marketing materials and sold viaticals and life settlements to investors on behalf of Donald Neuhaus. Robert Eberle also recruited salespeople, such as co-defendant Robert Koppel, to work as independent contractors selling Neuhaus’s policies.
According to court documents, from 2001 until 2006, the Eberles made material misrepresentations and omissions when selling the life settlement insurance contracts to investors. For example, they told investors that the investments were safe, secure, and risk free and that investors were guaranteed high rates of return. As a result of their fraud, investors lost at least $13.2 million.
In February 2003, the California Department of Corporations issued a desist and refrain (D&R) order prohibiting Robert Eberle and Barbara Eberle and Lexus Financial Group from selling viaticals and life settlements in the State of California. The Eberles continued to sell life settlements in the States of California until 2006.
According to court documents, Donald Neuhaus died in November 27, 2007. Other defendants were previously sentenced: Mark Wolok to five years in prison, Kimberly Snowden to nine months in prison, Clifford Palm to one year in prison, and Robert Koppel to three years’ probation.
This case is the product of an investigation by the IRS-Criminal Investigation with assistance from the U.S. Postal Inspection Service. Assistant United States Attorney Lee Bickley prosecuted the case. The defendants were remanded into custody on March 7, 2014.Scranton Physician and Wife Charged with $431,500 Currency Transaction ConspiracyRead the Press Release
The United States Attorney’s Office for Middle District of Pennsylvania announced that today a federal grand jury in Scranton indicted Leroy J. Pelicci and his wife, Ann Pelicci, for an alleged conspiracy to evade federal currency transaction reporting requirements by structuring a series of specific cash transactions at several Northeast Pennsylvania banks between 2011 and 2013.
According to United States Attorney Peter Smith, Pelicci, a physician and owner/operator of the “Pelicci Pain Relief Center” in Scranton and his wife Ann Pelicci, an alleged employee of the Pain Relief Center, conspired to violate the federal law that requires reporting of suspicious currency transactions. The indictment alleges that the Peliccis withdrew approximately $431,500 in cash from accounts at four Scranton area banks, Fidelity Bank, Citizens Bank, Penn Security Bank and FNCB, in 49 separate transactions, totaling $431,500, most of which were in $9,000 amounts, “just below” the amount that would trigger the reporting requirement, between January and July 2012.
According to the United States Attorney’s Office, the alleged crime is “structuring,” the conducting of transactions in currency at one or more financial institutions for the purpose of evading federal currency transaction reporting requirements. Banking institutions are required to file currency transaction reports (CTRs) with the Internal Revenue Service for each deposit, withdrawal or exchange of currency or other payment that involves currency of more than $10,000. The law also prohibits evading or attempting to evade the reporting requirements or attempting to cause banks to fail to file CTRs.
For more information on structuring and currency transaction reporting requirements, see attachment.
The indictment alleges that the Peliccis began transferring funds from a Fidelity Investment account after the patient and billing records of the Pelicci Pain Relief Center became the subject of an inquiry by agencies of the Commonwealth of Pennsylvania. The defendants allegedly opened multiple bank accounts individually in the name of Ann Pelicci and moved large amounts of cash from the investment account into those individual accounts. Beginning in January 2012, the defendants allegedly began withdrawing cash, mostly in amounts of $9,000, from the individual accounts at the four banks listed above.
In addition to the conspiracy charge, the indictment charges the Peliccis with 49 counts based on each of the alleged cash withdrawal transaction and an additional 49 counts alleging that the defendants’ activities “knowingly caused and attempted to cause, the banks to fail to file the required CTRs.”
The maximum criminal penalty provided for structuring transactions to evade CTR reporting requirements is imprisonment of not more than five years and a fine of $250,000. If the structuring involves more than $100,000 in a 12 month period, as is alleged in this case, the penalty is increased to a maximum of 10 years imprisonment and a fine of $500,000. The indictment also includes a count alleging that the $431,500 total amount of the currency involved in the structuring is subject to forfeiture to the United States plus “all property real or personal, involved in the offense, and all property traceable to such property.”
The investigation is being conducted by the Scranton office of the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Michelle Olshefski with the assistance of the United States Attorney’s Office’s Victim Rights and Asset Recovery Unit.
****Sanostee, N.M., Man Sentenced to Prison for Aggravated Burglary ConvictionRead the Press Release
ALBUQUERQUE – Donovan Isiah Sisco, 19, an enrolled member of the Navajo Nation who resides in Sanostee, N.M., was sentenced this afternoon to 18 months in federal prison followed by two years of supervised release for his aggravated burglary conviction. Sisco also was ordered to pay $9,214.31 in restitution to the victim of his crime.
Sisco was arrested on March 1, 2013, on a criminal complaint charging him with unlawfully entering into a dwelling for the purpose of committing a felony and with committing a battery. He subsequently was indicted and charged with aggravated burglary and assault with intent to commit aggravated burglary in a residence located on the Navajo Indian Reservation on Feb. 8, 2013.
On Sept. 18, 2013, Sisco entered his guilty plea to assault with the intention to commit an aggravated burglary. In his plea agreement, Sisco admitted entering the victim’s home without consent and assaulting the victim by grabbing her by the hair and throwing her to the ground causing her to sustain injuries. Sisco also admitted breaking the windows at the victim’s residence as well as the windows of her vehicle.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.
Rosebud Man Charged with Sexual Abuse of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Sexual Abuse of a Minor.
Gerald Duane Iron Shooter, age 21, was indicted on February 12, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 7, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 years in custody and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between January 1, 2012, and January 31, 2012, Iron Shooter engaged in, and attempted to engage in, a sexual act with the victim who had not attained the age of 16 years.
The charge is merely an accusation and Iron Shooter 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.
Iron Shooter was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Rockford Man Sentenced to 80 Months in Federal Prison for the Robbery of Associated Bank in RockfordRead the Press Release
ROCKFORD — A Rockford man was sentenced today in federal court for bank robbery. TONY WALKER, 56, was sentenced by U.S. District Judge Frederick J. Kapala to 80 months in federal prison, to be followed by 3 years of supervised release, for the robbery of Associated Bank, 600 North Main St., in Rockford, on July 12, 2013. Walker was also ordered to pay restitution to the bank.
Walker pleaded guilty to the charge on Dec. 2, 2013. According to the written plea agreement, Walker admitted that on July 12, 2013, at approximately 3:50 p.m., he entered Associated Bank and approached a bank teller. Walker was carrying a black bag with one of his hands inside the bag. Walker placed the bag on the counter and moved it toward the teller who believed that there was a dangerous weapon in the bag. Walker handed the teller a note which stated “Give me 1,000 dollars and won’t nobody get hurt.” The teller then gave Walker $1,330 in U.S. currency. Walker was arrested on July 15, 2013, and has since been in federal custody.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation; and Chet Epperson, Chief of the Rockford Police Department.
The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.
Pine Hill Man Pleads Guilty to Federal Child Abuse ChargeRead the Press Release
ALBUQUERQUE – Harold Martinez, 32, an enrolled member of the Navajo Nation who resides in Pine Hill, N.M., pleaded guilty this morning to a felony information charging him with abuse of a child not resulting in death or serious bodily injury.
Martinez was arrested on Nov. 26, 2013, on a criminal complaint alleging assault charges. According to the criminal complaint, on June 11, 2013, Martinez initiated a physical confrontation with another Navajo man during which Martinez stabbed the victim. After the victim got into his vehicle in an effort to get away from Martinez, Martinez rammed his own vehicle into the victim’s vehicle several times. Two young boys were in Martinez’s vehicle when he rammed it into the victim’s vehicle.
During this morning’s hearing, Martinez admitted that on June 11, 2013, he deliberately drove his vehicle into another vehicle without justification. Martinez also admitted that two unrestrained children were in the vehicle he was driving and that by ramming into another vehicle he placed the children in a situation that endangered their lives or health. The children however were not injured.
Martinez has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Martinez faces a maximum penalty of three years in prison.
This case was investigated by the Ramah Navajo Police Department and is being prosecuted by Assistant U.S. Attorney Jacob A. Wishard.
Pharmaceutical Company to Pay $27.6 Million to Settle Allegations <br /> Involving False Billings to Federal Health Care ProgramsRead the Press Release
Pharmaceutical manufacturer Teva Pharmaceuticals USA Inc. and a subsidiary, IVAX LLC, have agreed to pay the government and the state of Illinois $27.6 million for allegedly violating the False Claims Act by making payments to induce prescriptions of an anti-psychotic drug for Medicare and Medicaid beneficiaries . Teva Pharmaceuticals USA is located in North Wales, Pa., and IVAX LLC is a Florida company.
“The Department of Justice is committed to ensuring that pharmaceutical manufacturers who make payments to doctors to influence prescribing decisions are held accountable,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “Schemes such as the one alleged in this case undermine the health care system and take advantage of vulnerable patients.”
“ Pharmaceutical companies must not be allowed to improperly influence physicians’ decisions in prescribing medication for their patients,” said U.S. Attorney Zachary T. Fardon for the Northern District of Illinois. “Instead, those decisions must be made solely on the basis of the patient’s best medical interests.”
The settlement resolves allegations that Teva and IVAX made payments to an Illinois physician, Dr. Michael J. Reinstein, to induce the prescription of generic clozapine, an anti-psychotic medication. Clozapine has serious potential side effects and is generally considered a drug of last resort, particularly for elderly patients. While clozapine has been approved for treatment-resistant forms of schizophrenia, it is also reported to cause numerous side effects, including a potentially deadly decrease in white blood cells, seizures, inflammation of the heart muscle and increased mortality in elderly patients. The United States alleged that the payment scheme involving Reinstein began in August 2003, when Reinstein agreed to switch his patients to generic clozapine if IVAX, which was subsequently acquired by Teva Pharmaceuticals’ parent corporation, agreed to pay Reinstein $50,000 under a one-year “consulting agreement” and to provide other benefits to Reinstein , in violation of the federal Medicare and Medicaid Anti-Kickback Statute In addition to direct payments to Reinstein, IVAX allegedly also provided all-expenses paid trips to Miami for Reinstein, his wife and several of his employees. Reinstein quickly became the largest prescriber of generic clozapine in the country, and prescribed the drug for many elderly patients. Allegedly, the payments and other forms of remuneration from IVAX and later Teva Pharmaceuticals continued for many years, and resulted in the submission of thousands of false claims to the Medicare Part D and Illinois Medicaid programs.
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally funded programs. The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient.
On Nov. 15, 2012, the United States filed a civil action against Reinstein in United States v. Reinstein , alleging that he violated the False Claims Act as a result of his involvement in the payment scheme with Teva and IVAX. The civil action against Reinstein remains pending in the Northern District of Illinois.The government’s settlement of these allegations illustrates its emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Secretary of Health and Human Services Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $19 billion through False Claims Act cases, with more than $13.4 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlement with Teva Pharmaceuticals and IVAX was the result of a coordinated effort by the U.S. Attorney’s Office for the Northern District of Illinois, the Commercial Litigation Branch of the Justice Department’s Civil Division, the Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Pharmaceutical Company to Pay $27.6 Million to Settle Claims of False Billings to Federal and State Health Care ProgramsRead the Press Release
CHICAGO — Pharmaceutical manufacturer Teva Pharmaceuticals USA, Inc. and a subsidiary, IVAX LLC, will pay the United States and the state of Illinois more than $27.6 million to resolve false billing allegations, under the terms of a settlement agreement announced today. The agreement settles claims that Teva and IVAX violated the federal False Claims Act by making payments to Dr. Michael J. Reinstein, a Chicago physician, in return for Reinstein prescribing an anti-psychotic medication to thousands of Medicare and Medicaid patients at dozens of area nursing homes and hospitals.
Within 10 days, Teva will pay the United States nearly $15.5 million and the State of Illinois more than $12.1 million, plus interest from September 2013. The settlement was reached without civil litigation by the Justice Department, the U.S. Attorney’s Office for the Northern District of Illinois, and the Illinois Attorney General’s Office on behalf of the U.S. Department of Health and Human Services and the Illinois Department of Healthcare and Family Services. Teva Pharmaceuticals USA, located in North Wales, Pa., and IVAX LLC, a Florida company, are both subsidiaries of Teva Pharmaceuticals Industries, Ltd., headquartered in Israel.
“Pharmaceutical companies must not be allowed to improperly influence physicians’ decisions in prescribing medication for their patients,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois. “Instead, those decisions must be made solely on the basis of the patient’s best medical interests,” he said.
“The Department of Justice is committed to ensuring that pharmaceutical manufacturers who pay kickbacks to doctors to influence prescribing decisions are held accountable,” said Assistant Attorney General Stuart F. Delery for the Justice Department’s Civil Division. “Schemes such as the one alleged in this case undermine the health care system and take advantage of vulnerable patients.”
Illinois Attorney General Lisa Madigan said: “Teva Pharmaceuticals pushed its drug onto thousands of vulnerable patients without regard to their health and at the expense of the state Medicaid program and Illinois taxpayers.”
The settlement involves the promotion of generic clozapine, a rarely used anti-psychotic medication that has serious potential side effects and is generally considered a drug of last resort, particularly for elderly patients. While clozapine has been shown to be effective for treatmentresistant forms of schizophrenia, it is also known to cause numerous side effects, including a potentially deadly decrease in white blood cells, seizures, inflammation of the heart muscle, and increased mortality in elderly patients.
In November 2012, the United States filed a civil False Claims Act lawsuit in U.S. District Court in Chicago against Reinstein, alleging that, since at least August 2003, he schemed to switch his patients to generic clozapine if IVAX agreed to pay him $50,000 under a one-year “consulting agreement” and provide other benefits to him, in violation of the federal Medicare and Medicaid Anti-Kickback Statute.
Reinstein, a psychiatrist in the Chicago area since 1973 with an office in Chicago’s Uptown neighborhood since at least 1999, quickly became the largest prescriber of generic clozapine in the country. The payments and other forms of remuneration from Ivax, and later Teva Pharmaceuticals, including annual renewal of the consulting agreement, travel, meals and entertainment expenses, and tickets to sporting events, continued through at least November 2009. In addition to direct payments to Reinstein, Ivax also provided an all-expenses-paid trip to Miami for Reinstein, his wife, and various employees of Reinstein.
The alleged scheme resulted in the submission of thousands of false claims to Medicare Part D and Illinois Medicaid. The civil case against Reinstein remains pending in Federal Court in Chicago.
Federal law prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally funded programs. The law is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient.
The settlement with Teva Pharmaceuticals and Ivax was the result of a coordinated effort by the U.S. Attorney’s Office for the Northern District of Illinois, the Civil Fraud Section of the Commercial Litigation Branch of the Justice Department’s Civil Division, the Department of Health and Human Services Office of Inspector General, the Chicago Office of the Federal Bureau of Investigation, and the Illinois Attorney General’s Office.
The settlement agreement is neither an admission of liability by Teva or IVAX, nor a concession by the United States or the State of Illinois that their claims were not well-founded.
Assistant U.S. Attorney Eric S. Pruitt represented the U.S. Attorney’s Office in the settlement negotiations. Assistant Illinois Attorney General Robert Barba represented the Illinois Attorney General’s office.
Settlement Agreement
Parkersburg Woman Enters Federal Guilty Plea to Heroin DistributionRead the Press Release
CHARLESTON, W.Va. – A Parkersburg woman has pleaded guilty today to a federal heroin charge, U.S. Attorney Booth Goodwin announced today. During her plea hearing before United States District Judge Thomas E. Johnston, Daquarri Coats, 21, admitted that on September 30, 2013, she sold $1,950.00 worth of heroin to an informant working with the Parkersburg Police Department. The drug deal took place near the intersection of 30th Street and Dudley Avenue in Parkersburg.
Coats faces up to 20 years in federal prison when she is sentenced on June 5, 2014.
The Parkersburg Police Department along with the Parkersburg Narcotics and Violent Crimes Task Force conducted the investigation. Assistant United States Attorney Joshua Hanks is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Owner of Roofing Company Sentenced to One Year in Prison for Filing False Income Tax ReturnsRead the Press Release
TRENTON, N.J. - The owner of Kenal Enterprises LLC was sentenced today to one year and one day in prison for filing false income tax returns for several years, U.S. Attorney Paul J. Fishman, District of New Jersey, and Assistant Attorney General Kathryn Keneally of the U.S. Department of Justice, announced.
Kenneth Morton of Pitman, N.J., owner of Kenal (d/b/a) Ken Morton Roofing and Siding, a residential roofing company located in Pitman, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with filing false income tax returns for tax years 2007 through 2009. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
From early 2007 through late 2009, Morton cashed $3,946,046 of Kenal’s gross receipts at a check cashing agency, the majority of which he did not deposit into his business bank account and did not report on his individual income tax returns. For the 2007, 2008, and 2009 tax years, Morton had unreported gross receipts of $1,343,348; $1,471,430; and $1,131,268, respectively, causing a loss to the IRS of $241,412.
In addition to the prison term, Judge Sheridan sentenced Morton to one year of supervised release and ordered him to pay $241,412 in restitution.
U.S. Attorney Fishman and Assistant Attorney General Keneally credited special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, for the investigation leading to today’s sentence.
The government is represented by Trial Attorneys Jessica Moran and Tino Lisella of the Justice Department’s Tax Division. Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
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Defense counsel: Rocco Cipparone Jr. Esq., Haddon Heights, N.J.Owner and Operator of Crime Infested Tukwila Motel SentencedRead the Press Release
The owner and manager of one of three crime infested motels in Tukwila, Washington was sentenced today to one year in prison and three years of supervised release for conspiracy to maintain drug involved premises, announced U.S. Attorney Jenny A. Durkan. KULWINDER SAROYA, 42, of SeaTac, Washington, admitted he and his brother, co-defendant Jaspal Singh, knowingly operated drug involved premises at the Travelers Choice Motel and Great Bear Motor Inn and profited from the drug activity there. SAROYA and his brother have forfeited the two motels, the family home in SeaTac, more than $265,000 seized from their home and bank accounts and a 2007 Mercedes Benz. At sentencing U.S. District Judge John C. Coughenour noted that SAROYA was being punished with a substantial economic loss, “wiping out 20 years of work.”
“Since we shut these motels, the violent crime rate in the area was cut nearly in half. This case shows we will use all tools to protect the public and hold people accountable. This operation shut down a major spawning ground for crime in the community of Tukwila, stripped the defendant of the profits of his crime, and will reunite a neighborhood,” said U.S. Attorney Jenny A. Durkan. “I applaud the comprehensive work of law enforcement and look forward to a future for these properties that will benefit the community.”
“It’s a new day for Tukwila,” said City Administrator David Cline. “We‘ve made a commitment to work towards providing a solid foundation and sense of safety in our community. We are now another step closer to revitalization and redevelopment of the heart of the neighborhood along Tukwila International Boulevard.”
A third defendant, Lakhvir Pawar, 41, the manager of the Boulevard Motel on Tukwila International Boulevard has pleaded guilty and agreed to forfeit any interest in that motel as well as more than $90,000 he accumulated from the criminal activity. Pawar and Singh will be sentenced in April.
In total the defendants in this case are forfeiting cash and property valued at about $4.5 million.
“Just over six months ago, the collaboration of a number of agencies resulted in the seizure of three motels, arrests and resulting prosecution of defendants, and most importantly, the dramatic improvement of safety along Tukwila International Boulevard,” said Tukwila Police Chief Mike Villa.
According to records filed in the case, the Tukwila Police Department and Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) jointly-led investigation used undercover officers and people working with law enforcement to document criminal activity at the motels and the role the owners and managers played in that activity. SAROYA and Singh admitted they would collect or would direct their staff to collect a $10 entry fee for those coming on the property seeking drugs or sexual services. The owners and/or managers would take the money and direct the customer to rooms to purchase drugs or sex. In some instances the person taking the “fee” would call the motel room to inform the dealer or sex worker that a customer was on the way. SAROYA and Singh admitted that they collected additional rental fees from the dealer or sex worker based on how many customers were sent to the room over the course of the day.The investigation, search and seizure operation was led by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Tukwila Police Department. Many additional agencies assisted the investigation including the U.S. Marshals Service; Department of Homeland Security; Drug Enforcement Administration; Federal Bureau of Investigation; Internal Revenue Service Criminal Investigation; U.S. Department of Agriculture Office of Inspector General; Washington State Patrol; Seattle, Auburn, Kent, Renton, Federal Way, and Port of Seattle Police Departments; Valley SWAT Team; King County Sheriff’s Office; Washington State Department of Corrections; and Washington State Department of Social and Health Services (DSHS).
The case is being handled by Assistant United States Attorneys Justin Arnold, Jill Otake and Richard Cohen.
One Hallandale Resident and Two Palm Beach Residents Sentenced to Lengthy Prison Terms for Robbing Treasure Coast PNC Banks at GunpointRead 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, John A. Bolduc, Chief, Port St. Lucie Police Department, Ken J. Mascara, St. Lucie County Sheriff’s Office, Sean Baldwin Chief, Ft. Pierce Police Department, J. Michelle Morris, Chief, Sebastian Police Department, and Deryl Loar, Sheriff, Indian River Sheriff’s Office, announce the sentencing of Raven Simone Sayers, 23, of Hallandale, by U.S. District Judge Jose E. Martinez. Sayers was sentenced to 162 months in prison, followed by three years supervised release.
Also previously sentenced in this case were defendants Ivory Lee Robinson, III, 22, and Tomaleesha Jeffie Laqua McKeliver, 22, both of West Palm Beach, by U.S. District Judge Donald L. Graham. Robinson, a career offender, was sentenced to 262 months in prison, followed by five years of supervised release on February 27, 2014; and, McKeliver was sentenced to 102 months in prison, followed by three years of supervised release on December 16, 2013.
Each of the defendants previously pled guilty to interference with commerce by robbery (Hobbs Act), in violation of Title 18, United States Code, Section 1951, and using and carrying a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c).
According to court documents, during the night of July 7, 2013, into the early morning hours of July 8, 2013, Sayers, Robinson, McKeliver, Paul Edward Moore, Joe JR Desilien, Herbert Lenorris Smith, Jr., Anthony Isaac Johnson, and Allan Demetrius Bradford, planned and agreed to rob two St. Lucie County PNC banks at gun point. In order to carry out the two robberies, the group separated into two teams. The plan was for each team to have a female as a getaway driver and three males. Sayers and McKeliver agreed to be the robbery getaway drivers. Each team would steal a van, rob each of the banks at gunpoint, with their faces covered, leave the bank in the van, and transfer into the getaway vehicles, in order to flee the area. Sayers and McKeliver drove rental cars. The two teams travelled from Palm Beach County to St. Lucie County in the two rented cars. While en route, the two teams remained in cellular phone contact with one another. Once in St. Lucie County, the teams scouted PNC Banks and escape routes and stole two vans in Ft. Pierce for use in the two bank robberies.
Later on July 8, 2013, between 9:00 and 9:30 a.m. two St Lucie County PNC Banks were robbed at gunpoint, almost simultaneously. Law enforcement eventually identified, located, arrested and charged Sayers, Robinson, McKeliver, and their co-conspirators.
A jury trial for Paul Edward Moore, Anthony Isaac Johnson, and Joe JR Desilien is set for May 19, 2014 before U.S. District Judge Jose E. Martinez in Ft. Pierce.
Mr. Ferrer commended the investigative efforts of the FBI, Port St. Lucie Police Department, Ft. Pierce Police Department, Sebastian Police Department, St. Lucie County Sheriff’s Office, Indian River Sheriff’s Office, Palm Beach County Sheriff’s Office, Port Orange Police Department, and Hillsborough County Sheriff’s Office for their work on this case. The case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
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.
Ocean County, N.J., Attorney Sentenced to Six Months in Prison, Six Months of Home Confinement, for Income Tax Evasion and Failing to Pay Payroll TaxesRead the Press Release
TRENTON, N.J. - An Ocean County, N.J., attorney was sentenced today to six months in prison and six months of home confinement for evading federal income taxes after hiding assets in an attorney trust account in his wife’s name when he was already in debt to the IRS, U.S. Attorney Paul J. Fishman announced.
Lee Gottesman, 58, of Toms River, N.J., previously pleaded guilty before U.S. District Judge Freda L. Wolfson an indictment charging him with one count of federal income tax evasion and one count of failing to pay payroll taxes for the employees of his law firm. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in the case and statements made in court:
Gottesman operated a law firm in Toms River. In 2002, the IRS filed a levy on Gottesman’s assets because of unpaid taxes. Gottesman then opened a sub-account, within his attorney trust account, in the name of his wife. His wife had never been a legal client of his.
Gottesman ran nearly all of his personal and business expenses through the account, closing all other business and personal accounts in his name. His payments from the account included more than $90,000 in mortgage payments for his home; more than $17,000 in household expenses, including maintenance on his pool, landscaping services and construction costs; and thousands of dollars in other personal expenses, such as life insurance premiums, auto body repair work and personal credit card payments. The scheme allowed Gottesman to avoid paying personal income taxes on the hidden income.
Gottesman also withheld payroll and other taxes from his employees’ pay, but never filed the required forms or turned the withheld payments over to the IRS. Gottesman specifically admitted he did not pay all his personal income taxes owed for 2006 or payroll taxes for 2009.
In addition to the prison term, Judge Wolfson sentenced Gottesman to three years of supervised release. He will also be responsible for paying all taxes owed from 2006 to the present, $27,384.99.U.S. Attorney Fishman credited special agents of IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Zach Intrater of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
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Defense counsel: Salvatore Alfano Esq., Bloomfield, N.J.Niles Man Faces Drug ChargesRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a grand jury returned a one-count indictment charging Clint A. Hood, 49, of Niles, Ohio, with growing marijuana, and possessing marijuana with the intent to distribute.
The indictment alleges that on October 2, 2012, Hood grew and possessed more than 100 marijuana plants.
The case is being prosecuted by Assistant U.S. Attorney Justin Seabury Gould, following investigation by agents of the Drug Enforcement Administration.
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 indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
New York Man Charged Federally with Identity TheftRead the Press Release
Peter J. Smith, United States Attorney for the Middle District of Pennsylvania, announced today that an Indictment has been returned against Omari Lowery, age 27, Bronx, New York.
A Grand Jury convened in Scranton returned the 10 Count Indictment charging Lowery with Conspiracy, Aggravated Identity Theft, Access Device Fraud, and Fraud in Connection with Identification Documents. The Indictment alleges that beginning in August 2013 and continuing through February 2014, the defendant conspired to obtain and use multiple means of identification belonging to others for the purpose of fraudulently obtaining goods, services, cash, and other things of value in the Middle District of Pennsylvania and elsewhere.
Lowery faces a statutory maximum 78 years imprisonment and fines in the amount of $2,500,000. Lowery is currently in custody at the Lackawanna County Prison.
This case is being investigated by the Pocono Mountain Regional Police and the United States Secret Service. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Nevada Man Charged with Sexual Exploitation of ChildrenRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that Nevada, Mo., man was charged in federal court today with the sexual exploitation of a child after he assumed a false online identity as a woman and persuaded a teenage girl in Georgia to provide pornographic images of herself and to engage in illicit sexual activities.
Curtis Bowman, 42, of Nevada, was charged in a criminal complaint that was filed in the U.S. District Court in Springfield, Mo. Bowman remains in federal custody pending a detention hearing on Friday, March 14, 2014.
According to an affidavit filed in support of the federal criminal complaint, law enforcement officers in Cobb County, Ga., were contacted by the victim’s mother. She told officers that her 16-year-old daughter, identified as ”AS,” was involved in prostitution and had been communicating over the Internet and via cell phone texting with a person who scheduled “dates” for “AS” to have sex with adult males. This person requested “AS” to send nude images of herself, which she did, for the purpose of sending these images to the potential “dates.”
Georgia law enforcement officers identified Bowman and on Friday, March 7, 2014, local law enforcement officers executed a search warrant at Bowman’s residence, where he was arrested.
Bowman told officers that he portrayed himself as a female on the Internet and had met “AS” online. They later exchanged e-mail addresses and cell phone numbers so they could continue to communicate. While speaking to each other, the conversation turned sexual and at Bowman’s request, “AS” sent him several pornographic images of herself. Bowman also requested webcam sessions of “AS” where she would masturbate for him. Bowman never actually spoke with “AS” by phone or on webcam, he told officers, because then she would know he was not female. He told her his webcam was broken. Bowman stated he also sent “AS” nude images of his ex-wife that he portrayed as himself.
Bowman told officers that he decided to set up “dates” for “AS” and would live vicariously through her. Bowman admitted to sending both non-nude as well as nude images of “AS” to these individuals. They sent Bowman nude images of themselves, which Bowman sent to “AS.” Bowman set up four “dates” for “AS,” one approximately every two weeks. He admitted to watching one of those “dates” via “AS’s” webcam. He said “AS” snuck the male subject into her bedroom while her mother and brother were asleep.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James Kelleher. It was investigated by the Southwest Missouri Cyber Crimes Task Force, the Cobb County, Ga., Police Department and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Navajo Man Sentenced to Seven Years for Brandishing Firearm During a Home Invasion on the Navajo Indian ReservationRead the Press Release
ALBUQUERQUE – Donovan F. Muskett, 22, an enrolled member of the Navajo Nation who resides in Navajo, N.M., was sentenced this afternoon to seven years in federal prison for brandishing a firearm during a crime of violence. Muskett will be on supervised release for three years after completing his prison sentence. He also was ordered to pay $668.40 to the victim of his crime.
The sentence was announced by Acting U.S. Attorney Steven C. Yarbrough and Director John Billison of the Navajo Nation Division of Public Safety.
Muskett was arrested on March 1, 2013, based on a criminal complaint charging him with assault with a dangerous weapon, using a firearm during a crime of violence and aggravated burglary. He subsequently was indicted and charged with committing the following offenses in Navajo, N.M., on Feb. 10, 2013: (1) assault with a dangerous weapon; (2) aggravated burglary; (3) brandishing a firearm during a crime of violence; and (4) negligent child abuse.
According to court records, on Feb. 10, 2013, Muskett forced his way at gunpoint into a Navajo residence occupied by a woman and a young child. Muskett pointed his firearm at the adult victim, demanded money from her, and threatened to shoot her. While Muskett was rummaging in the kitchen, the victim managed to push Muskett out of the residence and lock him out. After ensuring the child victim’s safety, the adult victim called the police and reported the break-in and assault. Officers were able to locate Muskett by following footsteps in the snow. Muskett was arrested on tribal charges and remained in tribal custody until his arrest on federal charges.
On Nov. 6, 2013, Muskett pled guilty to brandishing a firearm during a crime of violence. In entering his guilty plea, Muskett admitted brandishing a .22 caliber revolver at the adult victim with the intention of committing the felony offenses of assault with a dangerous weapon and aggravated battery.
This case was investigated by the Window Rock office of the Navajo Division of Public Safety with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives and was prosecuted by Assistant U.S. Attorneys Novaline D. Wilson and Kyle T. Nayback.
Mission Man Sentenced for First Degree Burglary and Sexual Abuse of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man convicted of First Degree Burglary and Sexual Abuse of a Minor was sentenced on March 11, 2014, by U.S. District Judge Roberto A. Lange.
John Joseph Menard, age 27, was sentenced to 15 years in custody, 10 years supervised release, and a $200 special assessment to the Federal Crime Victims Fund.
Menard was indicted for First Degree Burglary and Sexual Abuse of a Minor by a federal grand jury on March 13, 2013. He pled guilty on December 18, 2013.
On November 5, 2012, Menard entered a residence in the early morning hours without permission, and entered the bedroom where a 7-year-old child was sleeping. Menard got into the bed with the child and attempted to engage in a sexual act with the child.
Between February 12, 2009, and February 18, 2009, Menard had sexual intercourse with a 13-year-old minor while the minor was staying at Menard’s home.
This case was investigated by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher prosecuted the case.
Menard was immediately turned over to the custody of the U.S. Marshals Service.
Michigan Man Indicted for Assaulting Federal EmployeeRead the Press Release
A federal grand jury in the Eastern District of Michigan today returned an indictment charging Ronnie Edward Duke, age 46, of Fenton, Michigan, with assaulting, resisting, or impeding certain officers or employees, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that on February 24, 2014, in the Eastern District of Michigan, Duke forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with an Assistant United States Attorney in the Eastern District of Michigan.
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.
Because of the recusal of the U.S. Attorney’s Office for the Eastern District of Michigan, this investigation is being handled by the U.S. Attorney’s Office for the Northern District of Ohio. The case is being prosecuted by Assistant United States Attorneys Matthew B. Kall and Thomas P. Weldon, following investigation by the Federal Bureau of Investigation and U.S. Marshals Service.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Mexican Native Charged with Illegal ReentryRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced an Indictment was filed against Alejandro Morillo-Bedolla, age 36, of Mexico.
The indictment charges Morillo-Bedolla with unlawful reentry with an aggravated felony into the United States on March 29, 2010 and February 7, 2014.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Department of Homeland Security, Immigration and Customs Enforcement, Cleveland, Ohio. The case is being handled by Assistant United States Attorney Ava R. Dustin.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Massachusetts Man Sentenced for Drug TraffickingRead the Press Release
Contact: Daniel J. Perry
Assistant United States Attorney
Tel: (207) 780-3257
Portland, Maine: United States Attorney Thomas E. Delahanty II announced today that Efrain
Urena, a/k/a “Cheech”, of Lawrence, Massachusetts, was sentenced by United States District Judge
George Z. Singal to 12 years in prison to be followed by 5 years of supervised release for conspiracy to distribute heroin. Urena pleaded guilty to the offense on October 9, 2013.
In late 2012 and early 2013, law enforcement agents learned that Urena supervised a family drug trafficking operation in Lawrence that, from 2011 until Urena’s arrest in February 2013, distributed heroin to customers in Maine and New Hampshire. On April 24, 2013, a superseding indictment was returned charging Urena and thirteen other people with conspiracy to distribute heroin. The investigation revealed that numerous home burglaries and shoplifting crimes were committed by Urena’s heroin customers in order to pay for the heroin Urena was supplying.
This case results from a joint investigation conducted by agents with the United States Drug
Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Maine
Drug Enforcement Agency; New Hampshire and Maine State Police; the York County Sheriff’s
Office; the Rochester, New Hampshire Police Department; and the ongoing effort of the Organized
Crime Drug Enforcement Task Forces (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
U.S. Attorney Delahanty praised the cooperation among these law enforcement agencies noting that “this heroin trafficking operation was brought to justice because federal, state, county and local law enforcement agencies across two states worked closely together.”Multi-Agency Gang (Mag) Unit Investigation Leads to Federal Indictment of Fnd Gang Members, Including Two Who Are Charged with the Mother’s Day ShootingRead the Press Release
U.S. Attorney Kenneth Allen Polite, Jr., announced the recent unsealing of a superseding indictment charging members of the Frenchmen/Derbigny gang, or “FnD,” with violating federal drug and firearm laws. A federal grand jury returned the superseding indictment on February 27, 2014, charging TRAVIS SCOTT, a/k/a “Trap” or “Slim,” age 29; STANLEY SCOTT, a/k/a “Stizzle,” age 23; SHAWN SCOTT, a/k/a “Shizzle,” age 25; AKEIN SCOTT, a/k/a “Keemy,” age 20; JEREMIAH JACKSON, a/k/a “Rocky,” age 23; GRALEN BENSON, a/k/a “Dooley,” age 26; BRIAN BENSON, a/k/a “Dub” or “Dubba,” age 24; CRYSTAL SCOTT, a/k/a “Chris,” age 32; and RICHMOND SMITH, a/k/a “Ace,” age 25, with various violations of the Federal Controlled Substances Act and the Federal Gun Control Act.
According to the superseding indictment, the Frenchmen/Derbigny gang conspired from 2006 through 2013 to violate federal drug distribution laws. The superseding indictment also alleges that some of the members, TRAVIS SCOTT, STANLEY SCOTT, SHAWN SCOTT, AKEIN SCOTT, JEREMIAH JACKSON, GRALEN BENSON, and RICHMOND SMITH, conspired to possess and use firearms in furtherance of the drug distribution operation. The superseding indictment specifically alleges that AKEIN SCOTT and his brother, SHAWN SCOTT, discharged firearms into a Mother’s Day second-line parade on May 12, 2013, in furtherance of that drug conspiracy. As part of this overall federal gang indictment and with the full cooperation of the Orleans Parish District Attorney’s Office, the United States Attorney’s Office will be adopting the firearms and drug charges that are currently pending in state court on the individual gang members in an effort to avoid a duplication of resources.
If convicted for violating federal drug conspiracy laws, the charged individuals face a maximum penalty of life imprisonment, a $10,000,000 fine, and at least five years of supervised release. Those individuals charged with conspiring to possess firearms in furtherance of the drug distribution conspiracy face a maximum twenty years in prison, a $250,000 fine, and up to three years of supervised release.
This superseding indictment represents a coordinated effort of federal and state law enforcement authorities within the Multi-Agency Gang (“MAG”) Unit. Federal agents and New Orleans Police Department officers assigned to the MAG Unit arrested GRALEN BENSON and JEREMIAH JACKSON on March 7, 2014. BRIAN BENSON was arrested by the MAG Unit on March 10, 2014. TRAVIS SCOTT is presently in federal custody, while STANLEY SCOTT, SHAWN SCOTT, and AKEIN SCOTT are currently in state custody. RICHMOND SMITH and CRYSTAL SCOTT are still at large.
U. S. Attorney Polite thanked all members of the MAG Unit for their contributions to this investigation and prosecution.
“Following one of the most despicable shootings in our city’s recent history, our federal, state and local law enforcement partners collaborated in an unprecedented fashion to identify the allegedly responsible individuals,” stated U.S. Attorney Polite. “This superseding indictment reflects the results of the MAG Unit’s outstanding work. Let this be a signal to the entire community: those who terrorize our streets through drug trafficking and gun violence will be brought to justice.”
ATF Special Agent in Charge Phil Durham stated, “Since the day of this horrendous crime where 19 people were shot while attending a parade celebrating Mother’s Day, ATF Special Agents assigned to the MAG Unit have worked around the clock with investigators and prosecutors to see that those involved are held accountable for their actions. ATF will continue to dedicate our resources to targeting and reducing violent crime in the City of New Orleans.”
“This indictment is another clear signal that the rules have changed -- there are real consequences for violence in our city. Since the fall of 2012, the Multi-Agency Gang Unit has led to the indictments of 83 individuals associated with 8 groups,” said Mayor Landrieu. “Through NOLA FOR LIFE, we will continue to focus on keeping our citizens safe, reclaiming our neighborhoods, and offering opportunities to those who want to make better choices.”
NOPD Superintendent Ronal Serpas said, “The collaboration of all partners in the Multi-Agency Gang (MAG) Unit has proven to be undeniably effective in getting some of the city’s most violent criminals out of our neighborhoods. In some cases, innocent people felt they were being held hostage by fear of illegal activities that were prevalent in their communities. These indictments are proof that the game has changed. As a team - we are focused and we are unrelenting.”
U. S. Attorney Polite reiterated that the superseding indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
ATF Special Agents assigned to the MAG Unit are the lead case agents. The prosecution is being handled by Assistant United States Attorney Matthew Payne and Special Assistant United States Attorney Brian Ebarb, who is assigned from the Orleans Parish District Attorney’s Office.
(Download Superseding Indictment )
Lincoln County Man Indicted on Tax ChargesRead the Press Release
St. Louis, MO – PETER GIAMBALVO was indicted on tax charges for allegedly filing false tax returns from 2003-2010.
According to the indictment, Giambalvo was an employee of The Boeing Company. The indictment alleges that for eight years beginning in 2003 through 2010, Giambalvo claimed zero earnings, when in fact he had earned wages, salaries, tips, etc. of approximately $498,540 for those years.
"Those Americans who file accurate, honest and timely returns can be assured that the government will hold accountable those who don't," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation.
Giambalvo, Hawk Point, MO, was indicted by a federal grand jury on one felony count of interfering with the administration of the Internal Revenue Laws, and eight felony counts of filing false tax returns. The indictment was returned March 5, but remained sealed until the arrest of the defendant earlier today.If convicted, each count of the indictment carries a maximum penalty of three years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by IRS Criminal Investigation. Assistant United States Attorney Steven Muchnick is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Kodiak Fish Processor Pleads Guilty to Illegal Dumping of Ammonia and Ordered to Pay $205,000 in Criminal PenaltiesRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that North Pacific Seafoods pled guilty in U.S. District Court in Anchorage to a charge of illegal dumping of ammonia into the Kodiak city sewer.
North Pacific Seafoods is a Seattle, Washington corporation, which is a subsidiary of Marubeni, a Japanese corporation. North Pacific Seafoods owns five seafood processing facilities throughout Alaska, including Alaska Pacific Seafoods, located in Kodiak, Alaska. North Pacific Seafoods pled guilty to one count of violating the Clean Water Act for illegal dumping of ammonia from its facility, Alaska Pacific Seafoods, into the Kodiak city sewer.
North Pacific Seafoods was sentenced today by Chief United States District Court Judge Ralph R. Beistline, to three years of probation, and $205,000 in criminal penalties, $55,000 of which is to be directed to the City of Kodiak for hazardous waste response training and equipment for sewer and fire department employees. The terms of probation ordered by Judge Beistline also require that North Pacific Seafoods comply with an Environmental Compliance Plan that includes, among other things, training for all employees at all five facilities in Alaska regarding proper handling of hazardous wastes and specifically ammonia.
According to Assistant U.S. Attorney Andrea “Aunnie” Steward, on November 29, 2011, North Pacific Seafoods’ employees at its Alaska Pacific Seafoods facility dumped approximately 40 pounds of ammonia waste from its refrigeration system into the Kodiak city sewer. The ammonia odor was detected by employees at the sewage plant for Kodiak. The Kodiak Fire Department was asked to help locate the source of the ammonia. The chief engineer for the Alaska Pacific Seafoods facility at first denied discharging the ammonia when asked about the ammonia odor. Sewer employees then traced the discharge back to the Alaska Pacific Seafoods facility, at which time the chief engineer admitted to the discharge. The discharge of the ammonia by the Alaska Pacific Seafoods facility wiped out the secondary treatment at the sewer system and caused the sewer system to violate its Clean Water Act permit.
A joint investigation by the federal Environmental Protection Agency and the Alaska Department of Environmental Conservation determined that the facility had been discharging ammonia into the St. Paul Harbor before and after the sewer incident in violation of its Clean Water Act permit. North Pacific Seafoods disputes the illegality of the ammonia discharges into St. Paul Harbor that occurred prior to the entry of its guilty plea but agrees that in the future such discharges will be prohibited.
The chief engineer that directed the discharge at the Alaska Pacific Seafoods facility, Bill Long, is scheduled to be arraigned in state court on Friday, March 14, 2014, at 9:30 a.m., on a charge of violating the permit regulated by the Alaska Department of Environmental Conservation.
“This result demonstrates how the longstanding federal-state partnership works to protect the public health, safety and environment of Alaska. It further sends a message that fish processors and other companies that handle hazardous wastes must be vigilant in their efforts to meet regulatory requirements,” said U.S. Attorney Karen Loeffler.
“By the company’s own admission, North Pacific Seafoods’ employees negligently discharged enough anhydrous ammonia – a potentially lethal chemical – to knock out Kodiak’s wastewater treatment plant, forcing it to violate its federal Clean Water Act permit and potentially endangering plant workers. Seafood processors should know that cutting corners and illegally discharging ammonia puts their facility, their workers, and the community at risk,” said Tyler Amon, Special Agent-in-Charge of EPA Criminal Investigation Division in the Pacific Northwest.
“The State, in partnership with its federal counterparts, takes seriously the enforcement and protection of Alaska’s waters and lands. Corporations like North Pacific Seafoods and their employees must be held accountable for their actions when they violate state and federal law. The State will criminally prosecute those who endanger the health of Alaska’s citizens and pollute our environment,” said Carole A. Holley, Assistant Attorney General, Alaska Office of Special Prosecutions and Appeals.
Ms. Loeffler commends the United States Environmental Protection Agency Criminal Investigation Division and the Alaska Department of Environmental Conservation for the investigation of this case.
Justice Department Reaches Settlement with Blair County, Pa., over Polling Place Access for Voters with DisabilitiesRead the Press Release
The Justice Department today announced a settlement under Title II of the Americans with Disabilities Act (ADA) with Blair County, Pa., to greatly improve physical accessibility at the county’s polling places for individuals who use wheelchairs and other mobility aids and for individuals who are blind or have vision impairments. Title II prohibits discrimination on the basis of disability by a state or local government in any of its programs or services, including its voting program.
Under the terms of the settlement, accessibility will be a major criterion in the county’s selection of polling places. To make that assessment, the county will use an evaluation form for each prospective polling place based on ADA architectural standards. The settlement requires the county to either relocate inaccessible polling places to accessible facilities or to use temporary measures such as portable ramps, signs, traffic cones and doorbells where appropriate to ensure accessibility on Election Day. The settlement will provide individuals with disabilities the opportunity to vote at the polls throughout Blair County, rather than solely through the use of an absentee ballot.
“The right to vote is the cornerstone of our democracy,” said Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels. “This agreement will ensure that persons with mobility disabilities and vision impairments have equal opportunities to exercise their right to vote in person at their assigned polling place, just like their neighbors. The Justice Department is committed to continued, vigorous enforcement of the panoply of federal civil rights laws aimed at securing the right to vote for all Americans, including the Americans with Disabilities Act.”
More information about this settlement and the ADA is available at the Justice Department’s toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY), and via its ADA website.
Information Charges Bala Cynwyd Man with Financial CrimesRead the Press Release
Jerold J. Cohen, 78, of Bala Cynwyd, PA, was charged today by Information with conspiracy, aggravated structuring of financial transactions, and filing false tax returns, announced United States Attorney Zane David Memeger. The Information charges that Cohen operated a sports bookmaking operation and accepted payment from his bettors in the form of checks. According to the information, between May 2009 and January 2011, Cohen cashed and caused to be cashed over 170 such checks, each made out for just under $10,000, for a total of over $1.5 million, which was income he received in connection with his bookmaking operation. It is further alleged that in 2009 and 2010, Cohen underreported income from his bookmaking operation by at least $450,000 in each year.
If convicted, the defendant faces a maximum possible sentence of 21 years in prison, threeyears of supervised release, a $950,000 fine, a $400 special assessment, and forfeiture of $1.5 million.
The case was investigated by the Internal Revenue Service Criminal Investigations and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Nancy E. Potts.
Click here to view the indictment
1An Indictment/ Information/Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525INTERPOL Stolen/Lost Travel Document DatabaseRead the Press Release
USDOJ: INTERPOL Washington: Updates
Department of Justice
INTERPOL Washington FOR IMMEDIATE RELEASE Monday, March 11, 2014INTERPOL Stolen/Lost Travel Document Database
INTERPOL's Stolen/Lost Travel Document database (SLTD) is a searchable repository of information on passports, visas, and identity documents that have been reported stolen or lost, helping prevent the illicit international travel of criminals and terrorists. Currently containing over 40 million records, SLTD is available to police and border security authorities in 190 INTERPOL member countries through their respective National Central Bureaus (NCBs). INTERPOL's General Secretariat administers the database, which became operational in July 2002.
Designed as an investigative tool for law enforcement and border protection entities, SLTD allows authorized users to query specific passport numbers. The database returns information on suspect documents that includes the issuing country, document type, document number, date of theft/loss, and certain information related to the circumstances of the theft or loss.
A country's passport issuing authority, through its corresponding NCB, is the only entity authorized to enter and modify records in SLTD pertaining to the loss or theft of its national travel documents. The United States is one of the largest contributors to SLTD, with over 3 million records currently on file and updates occurring on a daily basis.
INTERPOL Washington, the U.S. National Central Bureau, manages U.S. participation in the SLTD program. Its related responsibilities include ensuring the timely and accurate entry of stolen/lost U.S. passport data into SLTD upon receipt from the U.S. Department of State, establishing and maintaining SLTD query access by U.S. law enforcement and border inspection authorities, and performing verification and resolution in cases involving foreign passports recorded in SLTD presented to U.S. Customs and Border Protection officers at all U.S. ports of entry. INTERPOL Washington also coordinates with its foreign counterparts to resolve any cases involving lost, stolen, and fraudulent U.S. passports presented at foreign border control points.
In May 2007, Congress, the Department of Homeland Security, and the Department of State formally recognized the importance of SLTD as a screening tool for all travelers seeking to enter the United States. International organizations such as the G8, the European Union, the Organization for Security and Co-operation in Europe and the United Nations Security Council have also endorsed the program. Presently all countries participating in the U.S. Visa Waiver Program report their stolen/lost passport data to INTERPOL for entry into SLTD, as set forth in the Implementing Recommendations for the 9/11 Commission Act of 2007, Pub. L. No. 110-53.
The United States currently screens the passports of all persons entering the country against SLTD. Additionally, the U.S. Department of State queries all U.S. visa applicants' passports against the database. In 2013, U.S. authorities conducted over 238 million SLTD queries, the majority of which came from the U.S. Department of Homeland Security.
Home Health Care Provider Pleads Guilty to FailingTo Pay Employment TaxesRead the Press Release
A Detroit resident pleaded guilty to willfully failing to pay employment taxes to the Internal Revenue Service, United States Attorney Barbara L. McQuade announced today. Ms. McQuade was joined in the announcement by Detroit Field Office Acting Special Agent in Charge Carolyn Weber, Internal Revenue Service Criminal Investigation.
Joann Braggs entered the guilty plea in United States District Court before Judge David M. Lawson.
According to court records, during April 2003 through January 2006, Braggs was the president and owner of Bethharold Home Health Care, Incorporated (BHHC) and Bethharold Private Duty Care (BPDC). During this time period, BHHS and BPDC withheld employment taxes from the employees’ paychecks, including federal income taxes, Medicare and Social Security taxes. It was Braggs’ responsibility to pay the payroll taxes for both companies. Braggs collected approximately $1,228,832 in employment taxes that she failed to send to the Internal Revenue Service (IRS). Instead, Braggs used this money for personal expenses.
The investigation of this case was conducted by special agents of the Internal Revenue Service, and prosecuted by Assistant U.S. Attorney Christopher Graveline.
"Business owners have a responsibility to withhold income taxes for their employees and then remit those taxes to the Internal Revenue Service," said Acting Special Agent in Charge Carolyn Weber. "Instead, Braggs decided to spend the funds on herself and now faces serious consequences for her actions."
A sentencing hearing will be set by Judge Lawson where Braggs faces a statutory maximum penalty of not more than five years and a $250,000 fine per each count.Hogsett Announces Perjury Charges as Child Sexual Exploitation Case ExpandsRead the Press Release
Henry County DCS employee arrested for perjury and lying to federal agents
INDIANAPOLIS– Joseph H. Hogsett, the United States Attorney, announced today that the former local director of the Indiana Department of Child Services (“DCS”) and member of the New Castle Community School Corporation’s school board has been charged by criminal complaint with one count of perjury and one count of making a materially false statement.
Michael Fleming, 58, of New Castle, has been charged for his role in allegedly lying in front of a federal grand jury and to federal agents who were following up on a criminal complaint previously filed against Darrell Hughes by the U.S. Attorney’s Office. Specifically, Hughes is charged with three counts of sexual exploitation of a child and attempted exploitation of a child. It is alleged that Hughes made contact with boys who he would have met at an alternative school operated by the New Castle School system. The alternative school is commonly referred to as North Campus.
As part of its mission, DCS receives and investigates allegations of inappropriate behavior victimizing children. Also it normally maintains records of such investigations. It was, therefore, predictable for investigators to seek to determine if DCS had records of any such allegations of inappropriate behavior by Hughes.
The criminal complaint pertaining to Fleming unsealed this morning alleges that on February 4, 2014, agents from the U.S. Immigration and Customs Enforcement, Homeland Security Investigations (“HSI”) went to Fleming’s office in New Castle to further the investigation of Hughes. Agents served Fleming with a subpoena to testify in front of the grand jury. At that time, the agents asked Fleming whether he knew that Hughes had been arrested. He acknowledged that he did. When asked if he had ever heard complaints of alleged misconduct or inappropriate behavior by Hughes, Fleming said no. The agents soon left the DCS office and asked Fleming to call with any follow-up information.
The complaint further alleges that on February 18, 2014, Fleming testified in front of the federal grand jury for the Southern District of Indiana. During that testimony Fleming stated that he was familiar with Hughes because of counseling services that Hughes provided to children but was not aware of any complaints related to Hughes before his arrest.
On February 24, 2014, federal agents were contacted by legal counsel for DCS and informed that Fleming had been terminated from his position as local DCS director for encouraging a DCS subordinate employee to make false statements in the Hughes investigation. The DCS subordinate employee reported to supervisors that a complaint has been made against Hughes on at least one occasion and Fleming, indeed, knew of this complaint. Fleming then encouraged that subordinate employee to make untruthful statements in the Hughes investigation. After his grand jury testimony, Fleming told the same employee that he gave inaccurate or incomplete information to the grand jury stating, “I didn’t tell them anything, I guess I told a little white lie, if anyone asks, don’t say anything.”
“Interfering with an investigation will not be tolerated by this office,” said U.S. Attorney Hogsett. “But when the crime involves the exploitation of Hoosier children and lying by a public official, it is even more egregious.”
"These charges allege that Mr. Fleming chose to lie rather than assist authorities as they investigated allegations of child sexual exploitation that took place under his watch,” said Gary Hartwig, special agent-in-charge of HSI Chicago. “The defendant betrayed the public trust by placing his own self-interest above the needs of the young victims in this case. HSI works tirelessly to protect innocent children from sexual predators, and we will hold those who attempt to interfere with a criminal investigation accountable for their actions.”
According to U.S. Attorney’s Office Senior Litigation Counsel Steven DeBrota, Fleming could face up to 13 years’ in federal prison if convicted on both charges and be fined up to $500,000.
This case has been jointly investigated by HSI and the Hamilton County Child Exploitation Task Force.
A complaint is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Highland Man Sentenced to 17 ½ Years in PrisonFor Receipt Child of PornographyRead the Press Release
A Highland man was sentenced today to 17 ½ years in federal prison after having pleaded guilty to receipt and possession of child pornography, U.S. Attorney Barbara L. McQuade announced.
McQuade was joined in the announcement by Special Agent in Charge Marlon Miller, Department of Homeland Security, Detroit Division.
Michael Mazel, 38, was sentenced by U.S. District Judge George Caram Steeh in Detroit.
Evidence established that Mazel used a peer-to-peer file sharing program to download images and videos of children being forced to engage in sexually explicit activities with adults. He also exchanged emails with several individuals who appeared to be pre-teenage girls, asking them to engage in graphic sexual activities with him, and sending them child pornography.
Agents from the Department of Homeland Security identified more than 400 images and videos, some portraying sadistic or masochistic conduct.
Just before his sentencing date, Mazel fled the state and tried to cross the border into Mexico. The U.S. Marshals Fugitive Apprehension Team captured him in Casa Grande, Arizona. Upon arrest, law enforcement discovered that Mazel had survival gear, camping equipment, two loaded firearms, and laptop computer and hard drives that contained child pornography. He is separately indicted on those charges.
In announcing the sentence, McQuade stated, “We appreciate the work of the U.S. Marshals Service to locate and capture this defendant, a child predator who solicited sexual acts from pre-teen girls.”
"Today's sentencing clearly reflects HSI's aggressive efforts to combat child exploitation in all forms," said Miller. "Mazel's capture and ultimate sentencing should send a strong message to child predators that HSI and our law enforcement partners will hunt them down and hold them accountable before the law."
This case was investigated by the Department of Homeland Security. It was prosecuted by Assistant United States Attorney Maggie Smith, of the General Crimes Unit. "
Highland Man Sentenced to 17 ½ Years in PrisonFor Receipt Child of PornographyRead the Press Release
A Highland man was sentenced today to 17 ½ years in federal prison after having pleaded guilty to receipt and possession of child pornography, U.S. Attorney Barbara L. McQuade announced.
McQuade was joined in the announcement by Special Agent in Charge Marlon Miller, Department of Homeland Security, Detroit Division.
Michael Mazel, 38, was sentenced by U.S. District Judge George Caram Steeh in Detroit.
Evidence established that Mazel used a peer-to-peer file sharing program to download images and videos of children being forced to engage in sexually explicit activities with adults. He also exchanged emails with several individuals who appeared to be pre-teenage girls, asking them to engage in graphic sexual activities with him, and sending them child pornography.
Agents from the Department of Homeland Security identified more than 400 images and videos, some portraying sadistic or masochistic conduct.
Just before his sentencing date, Mazel fled the state and tried to cross the border into Mexico. The U.S. Marshals Fugitive Apprehension Team captured him in Casa Grande, Arizona. Upon arrest, law enforcement discovered that Mazel had survival gear, camping equipment, two loaded firearms, and laptop computer and hard drives that contained child pornography. He is separately indicted on those charges.
In announcing the sentence, McQuade stated, “We appreciate the work of the U.S. Marshals Service to locate and capture this defendant, a child predator who solicited sexual acts from pre-teen girls.”
"Today's sentencing clearly reflects HSI's aggressive efforts to combat child exploitation in all forms," said Miller. "Mazel's capture and ultimate sentencing should send a strong message to child predators that HSI and our law enforcement partners will hunt them down and hold them accountable before the law."
This case was investigated by the Department of Homeland Security. It was prosecuted by Assistant United States Attorney Maggie Smith, of the General Crimes Unit. "