Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
5 March 2014
U.S. Freezes More Than $458 Million Stolen by Former Nigerian Dictator in Largest Kleptocracy Forfeiture Action Ever Brought in the U.S.Read the Press Release
The Department of Justice has frozen more than $458 million in corruption proceeds hidden in bank accounts around the world by former Nigerian dictator Sani Abacha and conspirators. A civil forfeiture complaint unsealed today in the United States District Court in the District of Columbia seeks recovery of more than $550 million in connection with the largest kleptocracy forfeiture action brought in the department’s history.
The restraint of funds announced today includes approximately $313 million in two bank accounts in the Bailiwick of Jersey and $145 million in two bank accounts in France. In addition, four investment portfolios and three bank accounts in the United Kingdom with an expected value of at least $100 million have also been restrained, but the exact amounts in the accounts will be determined at a later date.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement.
“General Abacha was one of the most notorious kleptocrats in memory, who embezzled billions from the people of Nigeria while millions lived in poverty,” said Acting Assistant Attorney General Raman. “This is the largest civil forfeiture action to recover the proceeds of foreign official corruption ever brought by the department. Through our Kleptocracy Initiative, we are seizing the assets of foreign leaders who steal funds that properly belong to the citizens they serve. Today’s action sends a clear message: we are determined and equipped to confiscate the ill-gotten riches of corrupt leaders who drain the resources of their countries.”
“We will not let the U.S. banking system be a tool for dictators to hide their criminal proceeds,” said Assistant Director in Charge Parlave. “This action demonstrates the FBI’s ability to combat international corruption and money laundering by seizing the assets of those involved. I want to thank the special agents, financial analysts and prosecutors whose hard work over the years resulted in today’s announcement.”
The over $458 million in frozen funds and the additional assets named in the complaint represent the proceeds of corruption during and after the military regime of General Abacha, who assumed the office of the president of the Federal Republic of Nigeria through a military coup on Nov. 17, 1993, and held that position until his death on June 8, 1998. The complaint alleges that General Abacha, his son Mohammed Sani Abacha, their associate Abubakar Atiku Bagudu and others embezzled, misappropriated and extorted billions from the government of Nigeria and others, then laundered their criminal proceeds through the purchase of bonds backed by the United States using U.S. financial institutions.
As alleged in the complaint, General Abacha and others systematically embezzled billions of dollars in public funds from the Central Bank of Nigeria on the false pretense that the funds were necessary for national security. The conspirators withdrew the funds in cash and then moved the money overseas through U.S. financial institutions. General Abacha and his finance minister also allegedly caused the Government of Nigeria to purchase Nigerian government bonds at vastly inflated prices from a company controlled by Bagudu and Mohammed Abacha, generating an illegal windfall of more than $282 million. In addition, General Abacha and his associates allegedly extorted more than $11 million from a French company and its Nigerian affiliate in connection with payments on government contracts. Funds involved in each of these schemes were allegedly laundered through the United States.
The complaint seeks to forfeit bank accounts and investment portfolios with funds located in Bailiwick of Jersey, France and the United Kingdom. On Feb. 25 and 26, 2014, U.S. arrest warrants for the assets were enforced in Jersey and France though mutual legal assistance requests and in the United Kingdom through litigation brought pursuant to the U.K. Civil Jurisdiction and Judgments Act. The complaint also seeks to forfeit five corporate entities registered in the British Virgin Islands.
This case was brought under the Kleptocracy Asset Recovery Initiative by a team of dedicated prosecutors in the Criminal Division’s Asset Forfeiture and Money Laundering Section, working in partnership with federal law enforcement agencies to forfeit the proceeds of foreign official corruption and, where appropriate, return those proceeds to benefit the people harmed by these acts of corruption and abuse of office. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected].
The investigation was conducted by the FBI. The case is being prosecuted by Trial Attorney Elizabeth Aloi and Assistant Deputy Chief Daniel Claman of the Criminal Division’s Asset Forfeiture and Money Laundering Section, with substantial support from the Criminal Division’s Office of International Affairs. The department appreciates the extensive assistance provided by the Governments of Jersey, France and the United Kingdom in this investigation.Related Materials:
Abacha Complaint
U.S. Attorney, Jefferson County DA Announce Joint Task ForceRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – Eastern District of Texas U.S. Attorney John M. Bales and Jefferson County District Attorney Cory Crenshaw today announced the formation of a multi-jurisdictional Task Force. The mission of the Task Force will be to investigate and prosecute major crimes – more specifically, violent crime and crimes related to the abuse of public trust.
“By combining our investigative and prosecutorial resources, we can more effectively gather and evaluate all cases, and use all of the state and federal prosecution tools needed to stop and punish any criminal activity associated with public corruption," Crenshaw said. “We look forward to ensuring that those who have abused their positions of public trust will be prosecuted and removed from those positions. Our Task Force will bring to justice any individual who has abused the people’s trust and put both the future of our children and our economy at great risk.”
“This Task Force signifies a new and exciting era of collaboration of law enforcement resources in Jefferson County,” said U.S. Attorney Bales. “Our objective is not complicated, but it is bold – we aim to make Jefferson County a safer, better place to live. This unique, collaborative effort will work to ensure that state and federal law enforcement resources are maximized to address our most serious criminal problems.”
The Task Force will be led by Assistant U.S. Attorneys Christopher T. Tortorice and Joseph R. Batte, former Assistant District Attorney Luke Nichols who will rejoin the District Attorney's Office this month, and Assistant District Attorneys Koby Hoffpauir and Logan Campbell. Additionally, the Task Force will evaluate cases that fall under both state and federal prosecutorial jurisdictions. The final prosecutorial jurisdiction will be determined on a case by case basis, and will be determined in the light of prosecutorial efficiency and relevant state and federal laws. The Federal Bureau of Investigation, the Department of Education Office of Inspector General and the Texas Rangers will also be members of the Task Force. ####U.S. Attorney John Walsh's Testimony Before Congress Regarding Departrment of Justice's Marijuana Enforcement EffortsRead the Press Release
Click on link at bottom of page to read Colorado U.S. Attorney John Walsh's testimony presented to the House Committee on Oversight and Government Reform, Subcommittee on Government Operations, on March 4, 2014, regarding the Department of Justice's marijuana enforcement policy.
March 4, 2014 testimony of U.S. Attorney John Walsh, District of Colorado
Two Sentenced for Child Pornography OffensesRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that, Clarence Walker, 35, of DuQuoin, Illinois, and David E. Neagle II, 21, of Marion, Illinois, were sentenced in federal court in separate cases for child pornography offenses. Walker had earlier pled guilty on August 8, 2013. The Court sentenced Walker to 132 months in prison, a $500 fine, and 10 years of supervised release following discharge from prison. The Court sentenced Neagle to 12 months in prison, a $100 fine, and 5 years of supervised release following discharge from prison.
The evidence at sentencing established that Walker had previously been convicted in Illinois for sex offenses involving children. After his release from prison for that offense, authorities discovered that he had been downloading child pornography from his computer at his DuQuoin, Illinois, residence.
The evidence at sentencing established that Neagle had been downloading child pornography from his computer at his Marion, Illinois, residence.
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."
The investigation in this case was conducted by the Secret Service Southern Illinois Cyber Crimes Task Force and the Franklin County Sheriff’s Department. The case was prosecuted by Assistant United States Attorney Thomas E. Leggans.
Two Individuals and Company Found Guilty of Conspiracy to Sell Trade Secrets to Chinese CompaniesRead the Press Release
A federal jury in San Francisco has found two individuals and one company guilty of economic espionage, theft of trade secrets, bankruptcy fraud, tax evasion, and obstruction of justice for their roles in a long-running effort to obtain U.S. trade secrets for the benefit of companies controlled by the government of the People’s Republic of China (PRC), announced U.S. Attorney Melinda Haag; John P. Carlin, Acting Assistant Attorney General for National Security at the Department of Justice; David Johnson, Special Agent in Charge of the Federal Bureau of Investigation (FBI), San Francisco Division; and Jose Martinez, Special Agent in Charge of the Oakland Field Office, Internal Revenue Service (IRS), Criminal Investigation.
The jury found that Walter Lian-Heen Liew (aka Liu Yuanxuan), his company, USA Performance Technology Inc. (USAPTI), and Robert Maegerle conspired to steal trade secrets from E.I. du Pont de Nemours & Company regarding their chloride-route titanium dioxide production technology and sold those secrets for large sums of money to state-owned companies of the PRC. The purpose of their conspiracy was to help those companies develop large-scale chloride-route titanium dioxide production capability in the PRC, including a planned 100,000-ton titanium dioxide factory in Chongqing. This case marks the first federal jury conviction on charges brought under the Economic Espionage Act of 1996.
“Fighting economic espionage and trade secret theft is one of the top priorities of this Office and we will aggressively pursue anyone, anywhere who attempts to steal valuable information from the United States,” said U.S. Attorney Melinda Haag. “As today’s verdict demonstrates, foreign governments threaten our economic and national security by engaging in aggressive and determined efforts to steal U.S. intellectual property. I commend the efforts of the women and men of the FBI and the IRS in protecting America’s businesses and our national security.”
“The theft of America’s trade secrets for the benefit of a foreign government poses a substantial threat to our economic and national security” said Acting Assistant Attorney General John Carlin. “Today’s verdict clearly demonstrates that we take this threat seriously. This case shows that we will not hesitate to pursue and prosecute those who steal from American businesses.”
“The battle against economic espionage has become one of the FBI’s main fronts in its efforts to protect U.S. national security in the 21st century,” said Special Agent in Charge David Johnson.
"This is a case about lying, cheating, and stealing," said José M. Martínez, Special Agent in Charge, IRS Criminal Investigation. "The defendants stole secrets, lied to the bankruptcy court and cheated the IRS and creditors. In today's economic environment, it's more important than ever that the American people feel confident that everyone is playing by the rules and paying their fair share."
The jury also found that Liew, USAPTI, and Maegerle obstructed justice during the course of their conspiracy. The jury found that Liew filed false tax returns for USAPTI and Performance Group, a predecessor company to USAPTI, and made false statements and oaths in bankruptcy proceedings for Performance Group. The guilty verdicts followed a seven-week jury trial before the Honorable Jeffery S. White, U.S. District Court Judge.
Liew, 56, of Walnut Creek, Calif., was convicted of conspiracy to commit economic espionage, conspiracy to commit theft of trade secrets, attempted economic espionage, attempted theft of trade secrets, possession of trade secrets, conveying trade secrets, conspiracy to obstruct justice, witness tampering, conspiracy to tamper with evidence, false statements, filing false tax returns, false statements in bankruptcy proceedings, and false oath in bankruptcy proceedings. Liew was an owner and president of USAPTI, a company headquartered in Oakland, Calif., that offered consulting services. USAPTI was found guilty of conspiracy to commit economic espionage, conspiracy to commit theft of trade secrets, attempted economic espionage, attempted theft of trade secrets, possession of trade secrets, conveying trade secrets, and conspiracy to obstruct justice.
Evidence at trial showed that in the 1990s, Liew met with the government of the PRC and was informed that the PRC had prioritized the development of chloride-route titanium dioxide (TiO2) technology. TiO2 is a commercially valuable white pigment with numerous uses, including coloring paint, plastics, and paper. DuPont’s TiO2 chloride-route process also produces titanium tetrachloride, a material with military and aerospace uses. Liew was aware that DuPont had developed industry leading TiO2 technology over many years of research and development and assembled a team of former DuPont employees, including Robert Maegerle, to assist him in his efforts to convey DuPont's TiO2 technology to entities in the PRC. Liew executed contracts with state-owned entities of the PRC for chloride-route TiO2 projects that relied on the transfer of illegally obtained DuPont technology. Liew, Maegerle, and USAPTI obtained and sold DuPont’s TiO2 trade secret to the Pangang Group companies for more than $20 million.
Robert Maegerle, 78, of Harbeson, Del., was found guilty of conspiracy to commit theft of trade secrets, attempted theft of trade secrets, conveying trade secrets, and conspiracy to obstruct justice. Evidence at trial showed that Maegerle was employed by DuPont as an engineer from 1956 to 1991 where he had developed detailed knowledge of DuPont's TiO2 technology and expertise in building TiO2 production lines. He also had access to DuPont TiO2 trade secrets, including specific information regarding DuPont’s TiO2 facility at Kuan Yin, Taiwan. He provided these trade secrets to Liew and USAPTI in furtherance of their contracts with state-owned companies of the PRC for chloride-route TiO2 projects.
The jury also found Liew, Maegerle, and USAPTI guilty of obstructing justice by causing an answer to be filed in a federal civil lawsuit in which they falsely claimed that no information from DuPont’s Kuan Yin plant was used in the USAPTI designs for the development of TiO2 manufacturing facilities. Liew was also found guilty of witness tampering for his efforts to influence a co-defendant’s testimony in the civil lawsuit. The jury also convicted Liew of conspiring with his wife, Christina Liew, to mislead the FBI by corruptly concealing records, documents, and other objects during the FBI’s investigation into their criminal activity.
Liew was also convicted of filing a false income tax return for his company, Performance Group, for calendar years 2006, 2007, and 2008 and for USAPTI in 2009 and 2010. The jury also found Liew guilty of making false statements and a false oath in connection with filing for bankruptcy for Performance Group in 2009.
Liew, as co-owner of USAPTI, entered into contracts worth in excess of $20 million to convey TiO2 trade secret technology to Pangang Group companies. The Liews received millions of dollars of proceeds from these contracts. The proceeds were wired through the United States, Singapore, and ultimately back into several bank accounts in the PRC in the names of relatives of Christina Liew.
DuPont is a company based in Wilmington, Del., that manufactures a wide variety of products, including TiO2. DuPont invented the chloride-route process for manufacturing TiO2 in the late-1940s and since then has invested heavily in research and development to improve that production process. The global titanium dioxide market has been valued at roughly $12 billion per year, and DuPont has the largest share of that market.
The chloride-route process is cleaner, more efficient, and produces a higher-quality product than the sulfate-route process prevalent in the PRC. The object of the defendants’ conspiracy was to convey DuPont’s secret chloride-route technology to the PRC companies for the purpose of building modern TiO2 production facilities in the PRC without investing in time-consuming, costly research and development.
The second superseding indictment also charges, Liew’s wife, Christina Hong Qiao Liew (aka Qiao Hong), with conspiracy to commit economic espionage, conspiracy to commit theft of trade secrets, attempted theft of trade secrets, possession of trade secrets, witness tampering, conspiracy to tamper with evidence, and false statements. The charges against Ms. Liew were severed from those against Walter Liew, Maegerle, and USAPTI. Ms. Liew will appear before the Honorable Jeffery S. White on Thursday, March 6, 2014, in San Francisco to set the date for her trial.
Tze Chao (aka Zhao Zhi), a former DuPont employee who was also charged in the second superseding indictment, pleaded guilty to conspiracy to commit economic espionage on March 1, 2012.
Hou Shengdong, the Vice Director of the Chloride Process TiO2 Project Department for the Pangang Group, was also charged in the second superseding indictment with conspiracy to commit economic espionage, conspiracy to commit theft of trade secrets, and attempted economic espionage. He is currently a fugitive.
Charges of conspiracy to commit economic espionage, conspiracy to commit theft of trade secrets, and attempted economic espionage are also pending against the four PRC state-owned companies charged in the second superseding indictment.
The sentencing hearings for Liew, Maegerle, and USAPTI are scheduled for June 10, 2014, before Judge White in Oakland, Calif. Liew was remanded to the custody of the U.S. Marshals pending sentencing. Maegerle remains out of custody on conditions of release. The maximum statutory penalties for each of the counts are listed below. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by the Special Prosecutions and National Security Unit of the U.S. Attorney’s Office in San Francisco, the Counterespionage Section of the National Security Division of the U.S. Department of Justice in Washington, D.C., the FBI, Palo Alto Resident Agency, and Oakland Field Office, IRS Criminal Investigation.
For more information about the case and the remaining defendants: www.justice.gov/opa/pr/2012/February/12-nsd-180.htmlTwo Individuals and Company Found Guilty of Conspiracy to Sell Trade Secrets to Chinese CompaniesRead the Press Release
SAN FRANCISCO – A federal jury in San Francisco has found two individuals and one company guilty of economic espionage, theft of trade secrets, bankruptcy fraud, tax evasion, and obstruction of justice for their roles in a long-running effort to obtain U.S. trade secrets for the benefit of companies controlled by the government of the People’s Republic of China (PRC), announced U.S. Attorney Melinda Haag; John P. Carlin, Acting Assistant Attorney General for National Security at the Department of Justice; David Johnson, Special Agent in Charge of the Federal Bureau of Investigation (FBI), San Francisco Division; and Jose Martinez, Special Agent in Charge of the Oakland Field Office, Internal Revenue Service (IRS), Criminal Investigation.
The jury found that Walter Lian-Heen Liew (aka Liu Yuanxuan), his company, USA Performance Technology, Inc. (USAPTI), and Robert Maegerle conspired to steal trade secrets from E.I. du Pont de Nemours & Company regarding their chloride-route titanium dioxide production technology and sold those secrets for large sums of money to state-owned companies of the PRC. The purpose of their conspiracy was to help those companies develop large-scale chloride-route titanium dioxide production capability in the PRC, including a planned 100,000-ton titanium dioxide factory in Chongqing. This case marks the first federal jury conviction on charges brought under the Economic Espionage Act of 1996.
“Fighting economic espionage and trade secret theft is one of the top priorities of this Office and we will aggressively pursue anyone, anywhere who attempts to steal valuable information from the United States,” said U.S. Attorney Melinda Haag. “As today’s verdict demonstrates, foreign governments threaten our economic and national security by engaging in aggressive and determined efforts to steal U.S. intellectual property. I commend the efforts of the women and men of the FBI and the IRS in protecting America’s businesses and our national security.”
Acting Assistant Attorney General John Carlin said: “The theft of America’s trade secrets for the benefit of a foreign government poses a substantial threat to our economic and national security. Today’s verdict clearly demonstrates that we take this threat seriously. This case shows that we will not hesitate to pursue and prosecute those who steal from American businesses.”
“The battle against economic espionage has become one of the FBI’s main fronts in its efforts to protect U.S. national security in the 21st century,” said Special Agent in Charge David Johnson.
"This is a case about lying, cheating, and stealing," said José M. Martínez, Special Agent in Charge, IRS Criminal Investigation. "The defendants stole secrets, lied to the bankruptcy court and cheated the IRS and creditors. In today's economic environment, it's more important than ever that the American people feel confident that everyone is playing by the rules and paying their fair share."
The jury also found that Liew, USAPTI, and Maegerle obstructed justice during the course of their conspiracy. The jury found that Liew filed false tax returns for USAPTI and Performance Group, a predecessor company to USAPTI, and made false statements and oaths in bankruptcy proceedings for Performance Group. The guilty verdicts followed a seven-week jury trial before the Honorable Jeffery S. White, U.S. District Court Judge.
Liew, 56, of Walnut Creek, Calif., was convicted of conspiracy to commit economic espionage, conspiracy to commit theft of trade secrets, attempted economic espionage, attempted theft of trade secrets, possession of trade secrets, conveying trade secrets, conspiracy to obstruct justice, witness tampering, conspiracy to tamper with evidence, false statements, filing false tax returns, false statements in bankruptcy proceedings, and false oath in bankruptcy proceedings. Liew was an owner and president of USAPTI, a company headquartered in Oakland, Calif., that offered consulting services. USAPTI was found guilty of conspiracy to commit economic espionage, conspiracy to commit theft of trade secrets, attempted economic espionage, attempted theft of trade secrets, possession of trade secrets, conveying trade secrets, and conspiracy to obstruct justice.
Evidence at trial showed that in the 1990s, Liew met with the government of the PRC and was informed that the PRC had prioritized the development of chloride-route titanium dioxide (TiO2) technology. TiO2 is a commercially valuable white pigment with numerous uses, including coloring paint, plastics, and paper. DuPont’s TiO2 chloride-route process also produces titanium tetrachloride, a material with military and aerospace uses. Liew was aware that DuPont had developed industry leading TiO2 technology over many years of research and development and assembled a team of former DuPont employees, including Robert Maegerle, to assist him in his efforts to convey DuPont's TiO2 technology to entities in the PRC. Liew executed contracts with state-owned entities of the PRC for chloride-route TiO2 projects that relied on the transfer of illegally obtained DuPont technology. Liew, Maegerle, and USAPTI obtained and sold DuPont’s TiO2 trade secret to the Pangang Group companies for more than $20 million.
Robert Maegerle, 78, of Harbeson, Del., was found guilty of conspiracy to commit theft of trade secrets, attempted theft of trade secrets, conveying trade secrets, and conspiracy to obstruct justice. Evidence at trial showed that Maegerle was employed by DuPont as an engineer from 1956 to 1991 where he had developed detailed knowledge of DuPont's TiO2 technology and expertise in building TiO2 production lines. He also had access to DuPont TiO2 trade secrets, including specific information regarding DuPont’s TiO2 facility at Kuan Yin, Taiwan. He provided these trade secrets to Liew and USAPTI in furtherance of their contracts with state-owned companies of the PRC for chloride-route TiO2 projects.
The jury also found Liew, Maegerle, and USAPTI guilty of obstructing justice by causing an answer to be filed in a federal civil lawsuit in which they falsely claimed that no information from DuPont’s Kuan Yin plant was used in the USAPTI designs for the development of TiO2 manufacturing facilities. Liew was also found guilty of witness tampering for his efforts to influence a co-defendant’s testimony in the civil lawsuit. The jury also convicted Liew of conspiring with his wife, Christina Liew, to mislead the FBI by corruptly concealing records, documents, and other objects during the FBI’s investigation into their criminal activity.
Liew was also convicted of filing a false income tax return for his company, Performance Group, for calendar years 2006, 2007, and 2008 and for USAPTI in 2009 and 2010. The jury also found Liew guilty of making false statements and a false oath in connection with filing for bankruptcy for Performance Group in 2009.
Liew, as co-owner of USAPTI, entered into contracts worth in excess of $20 million to convey TiO2 trade secret technology to Pangang Group companies. The Liews received millions of dollars of proceeds from these contracts. The proceeds were wired through the United States, Singapore, and ultimately back into several bank accounts in the PRC in the names of relatives of Christina Liew.
DuPont is a company based in Wilmington, Del., that manufactures a wide variety of products, including TiO2. DuPont invented the chloride-route process for manufacturing TiO2 in the late-1940s and since then has invested heavily in research and development to improve that production process. The global titanium dioxide market has been valued at roughly $12 billion per year, and DuPont has the largest share of that market.
The chloride-route process is cleaner, more efficient, and produces a higher-quality product than the sulfate-route process prevalent in the PRC. The object of the defendants’ conspiracy was to convey DuPont’s secret chloride-route technology to the PRC companies for the purpose of building modern TiO2 production facilities in the PRC without investing in time-consuming, costly research and development.
The second superseding indictment also charges, Liew’s wife, Christina Hong Qiao Liew (aka Qiao Hong), with conspiracy to commit economic espionage, conspiracy to commit theft of trade secrets, attempted theft of trade secrets, possession of trade secrets, witness tampering, conspiracy to tamper with evidence, and false statements. The charges against Ms. Liew were severed from those against Walter Liew, Maegerle, and USAPTI. Ms. Liew will appear before the Honorable Jeffery S. White on Thursday, March 6, 2014, in San Francisco to set the date for her trial.
Tze Chao (aka Zhao Zhi), a former DuPont employee who was also charged in the second superseding indictment, pleaded guilty to conspiracy to commit economic espionage on March 1, 2012.
Hou Shengdong, the Vice Director of the Chloride Process TiO2 Project Department for the Pangang Group, was also charged in the second superseding indictment with conspiracy to commit economic espionage, conspiracy to commit theft of trade secrets, and attempted economic espionage. He is currently a fugitive.
Charges of conspiracy to commit economic espionage, conspiracy to commit theft of trade secrets, and attempted economic espionage are also pending against the four PRC state-owned companies charged in the second superseding indictment.
The sentencing hearings for Liew, Maegerle, and USAPTI are scheduled for June 10, 2014, before Judge White in Oakland, Calif. Liew was remanded to the custody of the U.S. Marshals pending sentencing. Maegerle remains out of custody on conditions of release. The maximum statutory penalties for each of the counts are listed below. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by the Special Prosecutions and National Security Unit of the U.S. Attorney’s Office in San Francisco, the Counterespionage Section of the National Security Division of the U.S. Department of Justice in Washington, D.C., the FBI, Palo Alto Resident Agency, and Oakland Field Office, IRS Criminal Investigation.
For more information about the case and the remaining defendants: www.justice.gov/opa/pr/2012/February/12-nsd-180.html
The maximum statutory penalties for each of the counts of conviction are as follows:
- Count One, conspiracy to commit economic espionage, in violation of 18 U.S.C. § 1831(a)(5): 15 years imprisonment, $500,000 fine, and restitution. The fine for an organizational defendant is not more than the greatest of $10,000,000 or twice the pecuniary gain or loss.
- Count Two, conspiracy to commit theft of trade secrets, in violation of 18 U.S.C. § 1832(a)(5): 10 years imprisonment, $250,000 fine or twice the gross gain or loss, and restitution. The fine for an organizational defendant is not more than the greatest of $5,000,000 or twice the pecuniary gain or loss.
- Count Three, attempted economic espionage, in violation of 18 U.S.C. § 1831(a)(2) & (4): 15 years imprisonment, $500,000 fine, and restitution. The fine for an organizational defendant is not more than the greatest of $10,000,000 or twice the pecuniary gain or loss.
- Count Four, attempted economic espionage, in violation of 18 U.S.C. § 1831(a)(3) & (4): 15 years imprisonment, $500,000 fine, and restitution. The fine for an organizational defendant is not more than the greatest of $10,000,000 or twice the pecuniary gain or loss.
- Count Five, attempted theft of trade secrets:, in violation of 18 U.S.C. § 1831(a)(2) & (4): 10 years imprisonment, $250,000 fine or twice the gross gain or loss, and restitution. The fine for an organizational defendant is not more than the greatest of $5,000,000 or twice the pecuniary gain or loss.
- Counts Six and Seven, possession of trade secrets: in violation of 18 U.S.C. § 1832(a)(3): 10 years imprisonment, $250,000 fine or twice the gross gain or loss, and restitution. The fine for an organizational defendant is not more than the greatest of $5,000,000 or twice the pecuniary gain or loss.
- Count Eight, conveying trade secrets, in violation of 18 U.S.C. § 1832(a)(2): 10 years imprisonment, $250,000 fine or twice the gross gain or loss, and restitution. The fine for an organizational defendant is not more than the greatest of $5,000,000 or twice the pecuniary gain or loss.
- Count Nine, possession of trade secrets, in violation of 18 U.S.C. § 1832(a)(3): 10 years imprisonment, $250,000 fine or twice the gross gain or loss, and restitution. The fine for an organizational defendant is not more than the greatest of $5,000,000 or twice the pecuniary gain or loss.
- Count Ten, conspiracy to tamper with witnesses and evidence: in violation of 18 U.S.C. § 1512(k): 20 years imprisonment, $250,000 fine or twice the gross gain or loss, and restitution.
- Counts Eleven and Twelve, witness tampering: in violation of 18 U.S.C. § 1512(b)(1): 20 years imprisonment, $250,000 fine or twice the gross gain or loss, and restitution.
- Count Thirteen, conspiracy to tamper with evidence: in violation of 18 U.S.C. § 1512(k): 20 years imprisonment, $250,000 fine or twice the gross gain or loss, and restitution.
- Count Fourteen, false statements in a matter within the jurisdiction of the executive branch: in violation of 18 U.S.C. §§ 1001(a)(2) & 2: 5 years imprisonment, $250,000 fine, and restitution.
- Counts Fifteen through Nineteen, filing false tax returns in violation of 26 U.S.C. § 7206(1): 3 years imprisonment and a $100,000 fine.
- Counts Twenty and Twenty-One, false statements in bankruptcy proceedings in violation of 18 U.S.C. § 152(3): 5 years imprisonment, $250,000 fine or twice the gross gain or loss.
- Count Twenty-Two, false oath in a bankruptcy proceeding in violation of 18 U.S.C. § 152(2): 5 years of imprisonment, $250,000 fine or twice the gross gain or loss.
(Liew second superseding indictment )
Two Former Guardsmen Charged in Fraud Against the United StatesRead the Press Release
PITTSBURGH – Two former-enlisted Guardsmen at the 171st Air Refueling Wing in Coraopolis, Pa., have been charged with defrauding the United States Air Force and the Air National Guard of hundreds of thousands of dollars in military pay and benefits, United States Attorney David J. Hickton announced today.
A 110-count indictment, charging conspiracy, honest service wire fraud, false claims and theft of government property, named Gerard J. Mangis, 59, of Glenshaw, Pa., (Shaler Twp.), as the sole defendant.
According to the government, Mangis, a Colonel and former Vice-Wing Commander at the 171st Air Refueling Wing, conspired with Robert St. Clair, a contract employee at the National Guard Bureau at Andrews Air Force Base, to defraud the United States Air Force in false claims for military pay between 2002 and 2011. Mangis is also charged with a scheme to defraud the United States Air Force by enlisting St. Clair in a “no show” job at the 171st, for which in exchange, Mangis received military workdays.
In an Information filed by the government, Robert St. Clair, 50, of Bel Air, Maryland, is charged with one count of conspiracy, eight counts of false claims, and one count of theft of government property. According to the Bill of Information, between 2002 and 2011, St. Clair conspired with Mangis at the 171st Air Refueling Wing to defraud the United States by accepting a ‘no show” enlistment position as a “contracting specialist” at the 171st in exchange for St. Clair providing military work days to Mangis.
“These cases involve two public officials, who engaged in a corrupt, mutually beneficial scheme for personal gain,” stated U.S. Attorney Hickton. “Investigating and exposing corruption, wherever it occurs, is a priority of the U.S. Attorney’s Office and the FBI, and we are fully committed to prosecuting violators of the public trust regardless of position, title or rank.”
“The FBI will continue to aggressively pursue allegations of government fraud in order to root out those who are in the position to abuse their power and defraud the Unites States, “said SAC Perdue. “The indictment of Colonel Mangis demonstrates Pittsburgh FBI’s commitment in that endeavor.”
The law provides for a maximum total sentence per count of five or 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The indictment charging Gerard J. Mangis was returned under seal on March 4 and unsealed today following Mangis’ arrest this morning at his home. He made an Initial Appearance before a federal magistrate judge Wednesday afternoon. He was released on $10,000 unsecured bond.
The Information charging Robert St. Clair was filed today. He will be ordered to appear before a U.S. District Judge at a date and time not yet determined.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Air Force Office of Special Investigations and the Federal Bureau of Investigation conducted the investigation leading to the charges in these cases.
An indictment is an accusation. An Information is a determination that probable cause exists to believe that offenses have been committed by a defendant. All defendants are presumed innocent unless and until proven guilty.
Two Defendants Convicted in Stolen Identity Tax Refund Scheme Resulting in Millions of Dollars in Fraudulent ActivityRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, announce that defendants Herve Wilmore Jr., 29, of Aventura, and Delvin Jean Baptiste, a/k/a “Doo Doo”, 29, of Miramar, were convicted today by a federal jury in Miami for their participation in a stolen identity tax refund scheme resulting in millions of dollars in fraudulent activity. Sentencing is scheduled for June 12, 2014, at 9:30 a.m. before U.S. District Judge Robert N. Scola.
Specifically, each of the defendants was convicted of one count of conspiring to defraud the Internal Revenue Service (IRS), commit wire fraud, and commit aggravated identity theft, all in violation of 18 U.S.C. § 371; two counts of wire fraud, in violation of 18 U.S.C. §§ 1343 and 2; and two counts of aggravated identity theft, in violation of 18 U.S.C. §§ 1028A(a)(1) and 2. The defendants face a possible maximum statutory sentence of five years in prison for the conspiracy count, 20 years in prison for each count of wire fraud, and two years consecutive in prison for each count of aggravated identity theft.
Evidence at trial established that the defendants conspired to unjustly enrich themselves by recruiting knowing co-conspirators and unknowing victims to put businesses, bank accounts and Electronic Filing Identification Numbers (EFINs) in their names, through which fraudulent transactions would be conducted. To accomplish this, the defendants used the personal identification information of individuals, many deceased, to prepare and file false and fraudulent income tax returns with the IRS. The defendants would obtain possession of fraudulently obtained refunds in the form of United States Treasury and Refund Anticipation Loan checks diverted to addresses or into bank accounts that they caused to be created and controlled. The defendants would then negotiate the fraudulently obtained federal income tax refunds within each other's businesses, and elsewhere, to avoid being detected.
According to evidence at trial and court documents, Wilmore, Baptiste and their co-conspirators caused the filing of approximately $35 million in fraudulent federal income tax return refunds of which the IRS paid out approximately $14 million. Defendant Wilmore was the president of Worldwide Income Tax Multiservices while Baptiste was the president of Royal Tax Multiservices, both tax preparation services located in Miami.
Co-defendants Marie Eleazard, a/k/a “Fanfan,” 32, of Miami, Henry Dorvil, a/k/a “D,” 35, of Hollywood, Brandon Johnson, 29, of Miami Gardens, Ronald Gustave, 36, of Miami, Ruth Cartwright, a/k/a “Princess,” 30, formerly of Plantation, Dukens Eleazard, a/k/a “DK,” 33, of Pembroke Pines, Luckner St Fleur, a/k/a “Nene,” 32, of Miami, Jesse Lamar Harrell, 26, of Miramar, and Corey Williams, 30, of Miami Gardens, each previously pled guilty to one count of conspiring to defraud the government, in violation of 18,U.S.C. § 371, and one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A(a)(1). Marie Eleazard is scheduled to be sentenced on April 9, 2014 at 8:30 a.m. Sentencing for Dorvil, Johnson, and Gustave is scheduled for April 18, 2014 at 8:30 a.m. Cartwright is scheduled to be sentenced on May 7, 2014 at 8:30 a.m. Dukens Eleazard, St Fleur, and Harrell are scheduled to be sentenced on May 9, 2014 at 8:30 a.m. Williams is scheduled to be sentenced on May 21, 2014 at 8:30 a.m.
Co-defendant Marc Leroy Saint Juste, 47, of Tamarac, previously pled guilty to one count of conspiring to defraud the government, in violation of 18 U.S.C. § 371. He was sentenced to two months in prison, to be followed by one year of supervised release.
Co-defendant John Similien, 24, of Plantation, pled guilty on the third day of the eight day trial to making a false statement, in violation of 18 U.S.C. § 1001(a)(2), and was sentenced to time served.
The indictment was dismissed against Miguel Patterson, 35, of Miami.
U.S. Attorney Ferrer and Assistant Attorney General Keneally commended the investigative efforts of the IRS-CI, FBI, and USSS. The case is being prosecuted by Assistant U.S. Attorney Neil Karadbil and Tax Division Trial Attorney Greg Tortella.
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.
Three Northbrook Family Members Charged with Transporting Stolen Property Following Multi-State “Shopping” SpreeRead the Press Release
CHICAGO — Three members of a suburban Northbrook family were arrested and charged with interstate transportation of stolen property following a purported shopping odyssey that started on Feb. 17 in Oklahoma, continued two days later at malls in Texas, and wound through Louisiana on Feb. 20, before they returned to Northbrook the next day. The defendants, together with a cooperating individual who acted as their “fence,” and others sold merchandise with a retail value of $7.1 million for a combined total of $4.2 million through their eBay online merchant accounts over the last decade, according to a federal criminal complaint announced today.
The defendants, BRANKO BOGDANOV, 58; his wife, LELA BOGDANOV, 52; and their daughter, JULIA BOGDANOV, 34, were arrested by Secret Service agents yesterday afternoon at their residence on Weller Lane in Northbrook. They were each charged with interstate transportation of stolen property in a criminal complaint that was filed in U.S. District Court. All three are scheduled to appear at 11 a.m. today before U.S. Magistrate Judge Michael Mason.
According to the complaint affidavit, loss prevention executives at Barnes and Noble, Inc., and Toys R Us, Inc., recently told Secret Service agents that their stores had sustained a huge loss in merchandise, including American Girl dolls, Furby robotic toys, Lego blocks, baby monitors, and baby carriers. With eBay’s assistance, the retail executives further determined that a particular eBay account sold large quantities of these specific items and that the amount of merchandise sold often matched the quantities of the same item stolen from one of their stores.
Representatives of Barnes and Noble, Toys R Us, and eBay provided substantial assistance to law enforcement in the investigation.
The store officials further obtained information identifying the owner of the eBay account, who resides in a Chicago suburb. They learned that the individual, who is now cooperating with law enforcement, sold $3.4 million in merchandise, with an estimated retail value of $6 million, over the past 10 years, and that the cooperating individual (CI) had purchased the merchandise from a man the CI knew as “Franko Kalath,” an alias linked to Branko Bogdanov.
Secret Service agents corroborated information from the store and eBay officials, and the CI provided them with extensive hand-written notes and receipts indicating a vast variety of items that the CI allegedly purchased from Branko Bogdanov, including toys, electronic equipment, baby supplies, and kitchenware. Agents also seized from the CI numerous items that the CI had purchased from the individual known as “Franko Kalath,” all of which appeared to be new and in their original packaging.
Further investigation revealed that Bogdanov family members share a single PayPal account and that together they had sold $692,278 in merchandise through their individual eBay accounts. Many of the items sold were similar to the items sold by the CI, the complaint alleges.
As background, the complaint affidavit details additional thefts from Barnes and Noble, Toys R Us, and other retailers that occurred between October and December 2012 in Pikesville, Md., Pembroke Pines, Fla., and Murfreesboro, Tenn., where either telephone records, video surveillance, or both allegedly show the Bogdanovs were at or near at the time and date of specific retail thefts.
On Feb. 19, surveillance followed the defendants from store to store at or near the Woodlands and Willowbrook malls in the vicinity of The Woodlands, Tex., north of Houston. During a traffic stop by Houston police, the Bogdanovs gave officers numerous items from their vehicle, and those items later matched merchandise that various stores confirmed were stolen that day, according to the complaint.
The surveillance continued the following day through Louisiana, where additional merchandise was stolen at stores in Baton Rouge and New Orleans, resulting in another traffic stop that night on northbound I-55 near Canton, Miss. The trio arrived back in Northbrook in Feb. 21. A few days later, the CI received messages from “Franko Kalath” with photos showing an array of merchandise that was available for sale, the charges allege.
The complaint describes repeated instances of Lela Bogdanov wearing a long black skirt that appeared larger and fuller when she exited various retail stores than when she entered. The dress, which was seized shortly after she was arrested, has a blue lining capable of containing multiple rectangular objects, and was allegedly used to cart hidden merchandise from stores. At times, surveillance showed items protruding from the skirt when she exited stores, often accompanied by various diversions instigated by one of more of the family members, according to the complaint.
Interstate transportation of stolen property carries a maximum penalty of 10 years in prison and a $250,000 fine, and restitution is mandatory. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The arrests and charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Frank Benedetto, Special Agent-in-Charge of the Chicago Office of the U.S. Secret Service. Numerous local police departments are also assisting in the investigation.
The government is being represented by Assistant U.S. Attorney Renato Mariotti.
The public is reminded that a complaint contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Complaint
Three Men Plead Guilty to Causing Serious Environmental Damage by Cultivating Marijuana on an Ecological ReserveRead the Press Release
SAN FRANCISCO – Chou Vang, Vang Pao Yang, and Pao Vang of Eureka, Calif. pleaded guilty in federal court in San Francisco yesterday to willfully injuring federal property stemming from a marijuana grow the three men cultivated on protected federal lands, United States Attorney Melinda Haag announced.
In pleading guilty, C. Vang, 52, Yang, 63, and P. Vang, 45, admitted to trespassing on the King Range National Conservation Area in the summer of 2012 where they cultivated and manufactured marijuana. In doing so, the defendants admitted that they caused serious damage to the environment. The defendants caused environmental damage by clearing away trees and vegetation, which created siltation and erosion issues, heavily using fertilizers, and failing to properly dispose of trash. The defendants’ actions affected the surrounding watershed and ecosystem including habitat for four federally listed threatened species.
The King Range National Conservation Area is often referred to as the “crown jewel” of land protected by the U.S. Bureau of Land Management and is part of a larger system of national conservation areas, monuments, and reserves protecting nationally-significant landscapes throughout the western United States. Protection of this land stemmed from the 1970 King Range Act which was a multi-year effort to conserve one of the most remote, undeveloped, and primitive coastlines in the continental United States. This area is one of the few, and is the largest coastal wilderness area in the contiguous 48 states and is characterized by an abrupt mountain range rising 4,000 feet directly out of the Pacific Ocean, creating a dramatic landscape of forest, pristine watersheds, and various naturally functioning ecosystems. The area provides habitat for four federally listed threatened species: Chinook salmon, Coho salmon, steelhead, and the northern spotted owl. Visitors come from around the world to experience the unique coastal wilderness qualities. This case highlights the significant environmental problems arising from the illegal cultivation of marijuana on federally-protected lands.
“The environmental harm associated with these illegal grows is wreaking havoc on these pristine ecological resources that the federal government is charged with protecting for the public,” said U.S. Attorney Melinda Haag. “We will continue to prosecute those who use our public lands in Northern California to illegally cultivate marijuana at the expense of the environment.”
All three of the defendants were arrested on September 20, 2012, in the King Range National Conservation Area and made their initial appearance in federal court in Eureka on September 24. The defendants were charged with one count of manufacturing marijuana, in violation of 22 U.S.C. § 841(a)(1) & (1)(B)(iv), and one count of willful injury to federal property, in violation of 18 U.S.C. § 1361. Under the plea agreement, the defendants pleaded guilty to willful injury to federal property.
All three of the defendants are scheduled for sentencing on July 23, 2014, at 10:00 a.m. before the Honorable Charles R. Breyer, United States District Court Judge, in San Francisco. The maximum statutory penalty for violating 18 U.S.C. § 1361 is ten years in prison and a $250,000 fine, plus restitution, which the parties agree is $31,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Stacey Geis is the Assistant U.S. Attorney who is prosecuting the case. The prosecution is the result of an investigation by the U.S. Bureau of Land Management into large-scale marijuana cultivation on public lands.
(Vang & Yang indictment )
Talent Agent Pleads Guilty in Manhattan Federal Court to Stealing over Half A Million Dollars from Actor ClientsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that PETER STRAIN, a talent agent for film, television, and Broadway actors, pled guilty today in Manhattan federal court to stealing more than half a million dollars from his clients, which he used to purchase personal luxury retail goods and artwork, among other things. STRAIN was originally charged in November 2013, and he pled guilty today before United States District Judge George B. Daniels.
Manhattan U.S. Attorney Preet Bharara said: “Peter Strain repeatedly lied to his clients about the payments for their acting work so that he could use the money for himself, as it suited his needs – including for personal luxury retail items. With today’s plea, Strain has admitted to his fraud, and he will be punished for his conduct.”
New York FBI Assistant Director-in-Charge George Venizelos said: “Peter Strain was making the old saying of robbing one person to pay someone else come to life. In this case he was robbing his clients and then paying himself, lying all along the way to try to cover his tracks. Embezzling more than a half a million dollars from clients is a serious offense. FBI will continue to investigate and bring those to justice who seek to do business in such a deceitful way.”
According to the allegations contained in a Superseding Information filed in Manhattan federal court and statements made in public court proceedings:
Through his talent agency Peter Strain & Associates (“PSA”), STRAIN represented television, film, and stage actors. As a talent agent, STRAIN received funds in trust for his clients for their acting work, and was required to remit those funds to his clients, less his commission, which was typically 10%. However, between approximately 2011 and 2013, STRAIN diverted money he received on behalf of three clients, and used it to, among other things, pay for personal luxury retail goods and artwork. In order to conceal his theft and ensure that his clients allowed him to continue receiving money on their behalf, STRAIN repeatedly lied to his clients about why he had failed to timely remit their money.
Between July 2011 and December 2011, STRAIN received more than $1.4 million in his trust account on behalf of a particular client (“Client-1”), an actor who earned that money for work on a currently broadcast television series. However, STRAIN failed to remit approximately $500,000 of this money to Client-1, and diverted it for his own use. In order to conceal his theft from Client-1, when STRAIN and Client-1 discussed the missing payments by telephone, STRAIN asked Client-1 if he could delay making the payments because, according to STRAIN, he was short on funds as a result of his partners at PSA embezzling money from the firm. STRAIN further claimed that he had recently won a lawsuit against his partners related to the supposed embezzlement, and that he was waiting to receive settlement payments from his partners.
As STRAIN knew, his statements to Client-1 regarding the lawsuit were false. In truth, STRAIN’s partners had filed a lawsuit accusing STRAIN of embezzling funds from PSA, and STRAIN agreed to settle the lawsuit by paying his partners more than $250,000 for their shares in PSA. Moreover, in order to make a payment required under the settlement, and rather than use his own money, STRAIN withdrew $30,000 from an account held in trust for his clients (“the Trust Account”).
Ultimately, during 2012, STRAIN repaid Client-1 by stealing money from a different client, Client-2, an actor who has appeared in several television shows, including a currently broadcast television series. STRAIN then lied to Client-2 in order to conceal his theft. Among other things, STRAIN falsely told Client-2 that STRAIN had recently hired a new business management team and that the new team must have misplaced Client-2’s money. In truth and in fact, STRAIN had used Client-2’s money to repay the money he had stolen from Client-1. STRAIN never fully repaid the money he took from Client-2, and still owes Client-2 in excess of $350,000.
In July 2012, STRAIN failed to timely remit over $200,000 in additional payments to Client-1 for Client-1’s television acting work. In an email to Client-1 asking for additional time to remit the money, STRAIN repeated his false claim that he had “won” the lawsuit with his partners and was waiting for his partners to pay him. STRAIN further falsely claimed that he had Client-1’s money in his possession, but that he was restricted from accessing the money due to court orders. Contrary to his representations to Client-1, and as STRAIN well knew, STRAIN had not “won” the lawsuit, was not restricted from accessing the funds owed to Client-1, and did not have sufficient funds in the Trust Account to pay Client-1. In fact, in the same month that STRAIN claimed he was unable to access Client-1’s money, STRAIN withdrew more than $80,000 from the Trust Account, leaving the account overdrawn by more than $9,000.
Between November 2012 and February 2013, STRAIN also stole tens of thousands of dollars from another client (“Client-3”), an actor who has appeared in several television shows, including a currently broadcast television series. To cover up his theft, STRAIN offered several false excuses to Client-3 for why he had failed to remit Client-3’s money. For example, in November 2012, STRAIN falsely claimed that Client-3’s payments had been lost in the mail. STRAIN also later falsely told Client-3 that the delays in remitting Client-3’s money were caused by a lawsuit, but that a confidentiality clause prevented STRAIN from discussing the details.
STRAIN used the money he stole from his clients to, among other things, pay operating expenses of PSA and to pay for personal luxury retail goods and artwork, some of which he purchased in New York using client money from California bank accounts. Between July 2011 and August 2012, using his clients’ money, STRAIN bought more than $161,000 in jewelry, more than $310,000 in artwork, and more than $57,000 at luxury goods retailers.
STRAIN, 64, of Studio City, California, pled guilty to one count of interstate transportation of stolen property, which carries a maximum term of 10 years in prison. He is scheduled to be sentenced before U.S. District Judge George B. Daniels on April 30, 2014, at 10:00 a.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 outstanding investigative work of the FBI.
The case is being prosecuted by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys James Pastore, Jr., and Jason Hernandez are in charge of the prosecution.
Superseding Indictment Charges Widow with Murder in Fort Stewart SlayingRead the Press Release
Dublin, GA – LORETTA SMITH, 41, of Glenwood, Georgia, pled guilty last week before Senior District Court Judge Dudley H. Bowen to defrauding the U. S. Department of Veterans Affairs (“VA”) through fraudulent worker’s compensation claims.
According to the evidence presented during the guilty plea, SMITH, while employed with the VA, submitted bogus worker’s compensation claims to the Department of Labor from 2009 through 2013. SMITH falsely claimed costs for travel which she did not make, and falsely claimed costs for medical treatment which she did not receive. As a result of her bogus claims to the Department of Labor, Smith received more than $460,000 to which she was not entitled.
United States Attorney Edward Tarver stated, “This defendant, who was hired by the federal government to help those in need, chose, instead, to help herself to taxpayer money she wasn’t entitled to receive. Theft of taxpayer money by a federal employee is an abuse of trust and will not be tolerated.”
Monty Stokes, Special Agent in Charge, U. S. Department of Veterans Affairs, Office of Inspector General, said, “We are disappointed in Smith’s betrayal of public trust. She was hired to help veterans, but allegedly chose to cheat the system for her own personal gain. This has been a successful team effort in identifying, investigating, and prosecuting this matter.”
SMITH faces up to 20 years in federal prison, a fine of up to $250,000, and 5 years supervised release. A sentencing hearing will be scheduled after the U. S. Probation Office conducts a presentence investigation. After her guilty plea, SMITH was ordered into custody by Senior Judge Bowen.
The case was investigated by the Department of Labor, Office of Inspector General. Assistant U. S. Attorney Carlton Bourne is prosecuting the case on behalf of the United States. For additional questions, please contact James D. Durham, First Assistant United States Attorney at (912) 201-2547.
Superseding Indictment Charges Widow with Murder in Fort Stewart SlayingRead the Press Release
SAVANNAH, GA -- A superseding indictment was returned late yesterday by a federal grand jury sitting in Savannah, Georgia, charging LILLIE MAE EUBANK, 39, with first degree murder in the beating death of her husband, Specialist John Joseph Beans Eubank, 29, on November 30, 2013, on Fort Stewart. MS. EUBANK’s codefendant and brother, CARL EVAN SWAIN, was charged with the murder in January. Federal law provides that a murder occurring within the special maritime and territorial jurisdiction of the United States is a federal crime. Fort Stewart lies within the territorial jurisdiction of the United States.
EUBANK was first charged last week by criminal complaint. She was ordered detained pending trial by United States Magistrate Judge GR Smith on Tuesday. Mr. Tarver stressed that a criminal complaint and an indictment are only an accusations and are not evidence of guilt. The defendants are entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being investigated by the FBI's Southeast Georgia Violent Crime Task Force, with assistance provided by Army-CID. Assistant U. S. Attorneys Cameron Heaps Ippolito and Brian T. Rafferty are prosecuting the case on behalf of the United States.Statement by Attorney General Eric Holder <br /> on the Senate Vote on Debo AdegbileRead the Press Release
Attorney General Eric Holder released the following statement on the Senate’s procedural vote on Debo Adegbile to serve as the Assistant Attorney General for the Civil Rights Division:
“I’m very disappointed in the Senate’s vote. At a time when significant voting rights cases and other consequential matters are pending, it is more critical than ever to have a confirmed leader for the Civil Rights Division. Mr. Adegbile is a uniquely qualified nominee and an exceptional lawyer. He deserved to have his nomination considered wholly on the merits. His record was either misunderstood, or intentionally misrepresented for the sake of politics. Our legal system hinges on the fundamental ideal that every accused individual has a constitutional right to counsel. It is a very dangerous precedent to set for the legal profession when individual lawyers can have their otherwise sterling qualifications denigrated based solely on the clients that their organizations represent.”
St. Louis County Man Indicted on Embezzlement ChargesRead the Press Release
St. Louis, MO – DEMETRIUS NEAL of St Louis County was indicted by a federal grand jury on one felony count of unauthorized use of an access device.
According to the indictment, Neal embezzled more than $30,000 from a CVS store in Maplewood, Missouri, at which he was employed in 2013 and 2014. Neal submitted phony returns in the store’s terminals and either took cash or directed credits to credit card and bank accounts he controlled. An internal investigation revealed the loss.
If convicted, this charge carries a maximum penalty of ten years in prison and/or fines up to $250,000. In determining the actual sentence, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the CVS loss prevention department in cooperation with the Maplewood Police Department. Assistant United States Attorney Tom Albus 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.Shooting Gun into the Air Gets Convicted Felon 20 Years in PrisonRead the Press Release
PHILADELPHIA – Francis Aponte, 47, of Philadelphia, was sentenced today to 20 years in prison for possession of a firearm by a convicted felon. On June 17, 2012, Aponte was standing on the sidewalk near Indiana Avenue and 4th Street when two Philadelphia Police Officers spotted him shooting a gun into the air. The officers approached and saw Aponte throw the handgun – a .380 caliber Indian Arms semi-automatic – to the ground. Aponte was arrested and charged as a convicted felon in possession of a firearm. A federal jury found him guilty on December 5, 2013. Of the 20 year term, 15 years is mandatory. In addition to the prison term, U.S. District Court Judge Paul S. Diamond ordered five years of supervised release and a $100 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Philadelphia Police Department. It was prosecuted by Assistant United States Attorney Jose R. Arteaga.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Scarborough Man Sentenced for Benefits FraudRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that
Lawrence E. Moody, 63, of Scarborough, Maine, was sentenced today in U.S. District Court by
Judge Nancy Torresen to five months in prison, five months of home detention and three years of supervised release for federal workers’ compensation fraud. He was also ordered to pay
$120,000 in restitution. Moody pled guilty to the charge on September 30, 2013.According to information presented in court, in January 2001, Moody worked as a tractor trailer driver for the U.S. Postal Service in Portland when he injured his back loading mail. Moody filed a claim for workers’ compensation benefits and was granted medical benefits and income replacement benefits at a rate of 75% of his salary. Between 2006 and 2013, Moody received about $272,000 worth of income replacement benefits. Moody was required by the workers’ compensation program to promptly report to the U.S. Department of Labor, Office of
Workers Compensation Programs (OWCP) any improvement in his health, a return to work, and any income he earned. He was also required to periodically certify the same information in writing.From 2007 to 2013, Moody operated a car hauling business known as “Snowbird
Express.” Using a pickup truck and 47-foot enclosed trailer, he hauled cars for customer to various locations. Many customers had the defendant transport their cars to Florida for the winter and back to Maine in the spring. Moody conducted business on a cash basis and charged his customers by the mile. During that period, he failed to report the income he earned from
Snowbird Express to the U.S. Postal Service, OWCP, or the Internal Revenue Service.In fashioning her sentence, Judge Torresen found that Moody fraudulently obtained
$120,000 in worker’s compensation benefits to which he was not entitled, said that her sentence was intended to have a deterrent effect because it is difficult to detect these types of crimes, and noted that taxpayers pay because these crimes go undetected.
The case was investigated by the U.S. Postal Service, Office of Inspector General and the
U.S. Department of Labor’s Office of Inspector General, Office of Labor Racketeering and
Fraud Investigations.Plantation Man Indicted for Distribution and Possession of Child PornographyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Patrick Lynn, Chief, Davie Police Department, announce the indictment of Daniel Jonathan Gast, 28, of Plantation, on child pornography charges.
The two-count indictment charges Gast with one count of distribution of child pornography and one count of possession of child pornography, in violation of Title 18, United States Code, Section 2252(a). If convicted, Gast faces a mandatory minimum sentence of five years in prison and a maximum sentence of up to 20 years in prison. Gast would also be required to register as a sex offender in any jurisdiction in which he lives, works or attends school.
According to documents filed with the court, in August 2013, law enforcement officials assigned to the South Florida Internet Crimes Against Children (ICAC) Task Force were conducting an investigation into the advertisement of suspected child pornography over publicly available Peer to Peer (P2P) networks. Their investigation revealed an IP address registered to Gast at his Plantation residence. A search of Gast’s residence in Plantation yielded no evidence of the suspected child pornography. However, a subsequent search of a music school in Broward County, where Gast worked as a music teacher, resulted in the discovery of Gast’s laptop which had over 95 video files of child pornography, much involving children under the age of 12, who were made to engage in the sexually explicit conduct depicted.
Anyone with questions or concerns should contact Davie Police Department Detective Adam Granit at (954) 693-8365.
Mr. Ferrer commended the investigative efforts of ICE-HSI, the Davie Police Department, and the South Florida ICAC Task Force. The case is being prosecuted by Assistant U.S. Attorney Karen Stewart.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty.
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.
Piedmont Regional Jail Supervisor Indicted for A False Tax Return Conspiracy with His WifeRead the Press Release
RICHMOND, Va. – William A. Coles, Jr., 49, of Pamplin, Va., was indicted by a federal grand jury yesterday on seven counts involving the preparation and filing of false tax returns and bank fraud. The indictment includes one count of conspiracy, five counts of assisting in the preparation and filing of a false tax return, and one count of bank fraud. Coles faces a maximum penalty of 48 years of incarceration, if convicted.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; and Mark R. Herring, Attorney General of Virginia, made the announcement.
The indictment alleges that William Coles and his wife Sybil Coles, who was charged in a related case and pleaded guilty on January 28, 2014, engaged in a false tax return conspiracy. It is alleged that William Coles recruited individuals from the Piedmont Regional Jail, where he worked as a supervisor, to pay Sybil Coles to prepare and file tax returns that falsely claimed business losses, childcare expenses, job expenses, and charitable donations, among other things, creating a larger refund in an attempt to attract more customers. In addition, the indictment alleges that William Coles assisted in the preparation of his own false tax returns. It also alleges that William Coles devised a scheme to defraud a financial institution by submitting falsified W-2 and wage documents to obtain a mortgage loan. A trial date has not been set by the Court.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
The case is being prosecuted by Department of Justice, Tax Division Trial Attorney and Special Assistant United States Attorney, Rebecca Perlmutter, and Assistant Attorney General and Special Assistant United States Attorney Michael Jagels. IRS-Criminal Investigation in Richmond, Virginia investigated the case.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Philadelphia Man Sentenced to Jail for Conspiring to Distribute Heroin in Burlington, VermontRead the Press Release
Tristram J. Coffin, United States Attorney for the District of Vermont, stated that Aaron Gray, 21, of Philadelphia, Pennsylvania, was sentenced today by United States District Court Judge William K. Sessions III to one year and one day in prison for conspiring to distribute heroin in Burlington, Vermont.
According to court records, Gray began to sell heroin in Burlington during the fall of 2012 and continued until he was arrested in early January, 2013 by the Burlington Police Department. Gray obtained his heroin from a source in Philadelphia and he utilized a courier to transport the drugs to Vermont. The courier traveled to Vermont either by Amtrak or on the MegaBus.
Gray was indicted by a federal grand jury on March 21, 2013 and appeared for an arraignment in federal court on May 28, 2013. He pled guilty on October 23, 2013 to a one count Indictment charging him with conspiracy to distribute heroin.
This case was investigated by the Burlington Police Department. The United States Attorney, Tristram J. Coffin, commends the Burlington Police Department for its work. The case was prosecuted by Assistant U.S. Attorney Nancy J. Creswell. Gray was represented by the Federal Public Defender, Michael Desautels.
Pennsylvania Man Sentenced for Selling Oxycodone in BeckleyRead the Press Release
BECKLEY, W.Va. – A Pennsylvania man was sentenced today to 18 months in federal prison for selling oxycodone in Beckley, United States Attorney Booth Goodwin announced. David Hudson, 39, previously admitted that in July 2013 he sold several oxycodone pills to a confidential informant working with the Beckley Police Department Drug Unit. The drug deal took place in the parking lot of a motel on Harper Road.
United States District Judge Irene C. Berger imposed today’s sentence.
This case was 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. The United States 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.
Operation “Double Down Doc” Indictment Exposes Gulf Coast Prescription Drug RingRead the Press Release
Gulfport, MS - Four individuals indicted in the Southern District of Mississippi face various drug charges as the result of an extensive three-year drug investigation that targeted an illegal prescription drug ring, announced U.S. Attorney Gregory K. Davis and Special Agent in Charge Keith Brown with the Drug Enforcement Administration - New Orleans Division.
Dr. Sanjay Sinha, 49, of Woodstock, Georgia, Joshua Locke, 36, of Biloxi, Robert Thornton II, 36, of Biloxi, and John Mattina, 44, of Ocean Springs were charged in a seven count federal indictment with Conspiracy to Distribute Oxycodone and Hydrocodone. According to the indictment, Singh developed various relationships with his co-defendants and others. Those relationships led to the distribution of Hydrocodone and Oxycodone outside the scope of professional medical practice.
“Prescription drug abuse is a troubling problem in this country. This office along with our law enforcement partners will continue to investigate and bring to justice those individuals who would illegally distribute highly addictive painkillers” said U.S. Attorney Gregory K. Davis.
Drug Enforcement Administration, Gulfport Resident Agent in Charge Daniel Comeaux said, “The prescription drug epidemic in this country respects no boundaries. Today’s collaborative law enforcement effort by DEA, MBN, the Mississippi State Gaming Commission, Biloxi PD and our other state and local counterparts is a testament to the fact that we will use all resources at our disposal to target drug trafficking. You can no longer hide behind the comfort of a lab coat and a title in front of your name that say’s “doctor”. If you are involved in this sort of illegal activity, this is your warning. Please join us on April 26th as we kick-off our National Prescription Drug Take Back campaign. More information on the Take Back campaign will be available on our website soon.”
Concerning the arrests, Biloxi Police Chief John Miller said, “The Biloxi Police Department is proud to be a part of this three year investigation. The Biloxi Police Department, along with our other state and federal counterparts want the general public to know that we care and we want our city streets free of illegal drugs and illegally obtained prescription drugs. Today’s actions are a positive step in that direction.”
Dr. Sinha was arrested in Atlanta, Georgia and made his initial appearance there on Monday, March 3, 2014. The other defendants are scheduled to appear this afternoon for initial appearances before Chief U.S. Magistrate Judge John Roper in Gulfport.
The maximum penalty for conspiracy to possess with intent to distribute Oxycodone is 20 years in prison and a $1 million fine. The maximum penalty for possession with intent to distribute hydrocodone is 10 years in prison and a $500,000 fine.
The case was investigated by the Drug Enforcement Administration, Mississippi Bureau of Narcotics, and Biloxi Police Department. It is being prosecuted by Assistant United States Attorney John Meynardie.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Our nation-wide commitment to reducing gun crime in America.
Oceanside Woman Pleads Guilty to Defrauding Investors of $6.9 Million in A Real Estate Ponzi SchemeRead the Press Release
Earlier today, Laurie Schneider pleaded guilty at the federal courthouse in Central Islip, New York, to wire fraud. The proceeding took place before United States District Judge Dennis R. Hurley. When sentenced, Schneider faces up to 20 years in prison. As part of her plea agreement with the government, Schneider agreed to a $1 million money judgment payable to the United States.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.
“Laurie Schneider played the part of a successful entrepreneur, willing to help others invest in equipment and machinery deals as well as Long Island real estate. In reality she was a con artist, using lies and false assurances to bilk unsuspecting investors out of millions of dollars. Schneider ran a classic Ponzi scheme, using investor money for her own selfish purposes,” stated United States Attorney Lynch. “This office is committed to vigorously investigating and prosecuting individuals who are responsible for perpetrating financial crimes on the residents of our communities.”
FBI Assistant Director-in-Charge Venizelos stated, “By creating two different fraudulent shell companies and falsifying her connections with foreign companies to potential investors, Schneider was unfortunately able to swindle millions out of innocent investors promising big returns for their backing. Today’s guilty plea also promises a big return for Schneider’s criminal actions -- a million dollar judgment and a possible sentence of 20 years in prison. The FBI remains committed to protecting the investing public from perpetrators who seek to commit financial crimes.”
According to court filings and facts presented during the plea proceeding, Schneider used two shell corporations to operate a $6.9 million Ponzi scheme and steal money from unsuspecting investors. Schneider began accepting money in September 2006 from individuals seeking to earn profits on investments in overseas machinery and equipment deals and real estate on Long Island.
In the first scheme Schneider operated a shell corporation called Janitorial Close-Out City Corp. (“Janitorial Close-Out”). Schneider falsely represented to investors that Janitorial Close-Out bought industrial equipment and machinery manufactured by companies in China for resale in the United States. In order to lure investors, Schneider, among other things, falsely represented that, (1) she personally guaranteed varying high rates of return on investments of up to 60 percent, (2) she had a business contact with strong ties to companies in China that manufactured industrial equipment and machinery and, (3) she would be able to buy the Chinese-made industrial equipment and machinery at wholesale prices which Janitorial Close-Out would later resell in the United States at a 15 to 60 percent profit over a short period of time.
In a subsequent scheme, Schneider operated a shell company incorporated as Eager Beaver Realty LLC (“Eager Beaver”). Schneider touted Eager Beaver’s ability to purchase and sell real property on Long Island that was in foreclosure proceedings or otherwise available to Eager Beaver at significantly low prices. Schneider provided investors with written investment agreements in which she falsely represented and guaranteed that 100 percent of the invested funds would be used by Eager Beaver to purchase foreclosed real property for resale at prices that would enable Eager Beaver to pay as much as a 20 percent return on investment along with a 100 percent return of principal. To further the scheme Schneider used a portion of the money that she obtained from Eager Beaver investors to pay returns to early investors in the China Deals. In reality, Eager Beaver earned no profits. In fact, Schneider was operating a Ponzi scheme, paying returns to early investors using money that she fraudulently obtained from later investors. In addition, Schneider diverted some of the investors’ money to pay personal expenses, including car payments on luxury automobiles and country club dues.
The government’s case is being prosecuted by Assistant United States Attorney Michael P. Canty.
The Defendant:
LAURIE SCHNEIDER
Age: 39
New York Man Pleads Guilty to Federal Marijuana Trafficking ChargeRead the Press Release
ALBUQUERQUE – Gary Anthony Harris, 50, of Carle Place, N.Y., pleaded guilty late yesterday afternoon in Las Cruces federal court to a marijuana trafficking charge under a plea agreement with the U.S. Attorney’s Office.
Harris and co-defendant Eric Bernard Harris, 46, of St. Albans, N.Y., were charged by criminal complaint on Aug. 8, 2013, with conspiracy to distribute marijuana. The criminal complaint stated that on July 27, 2011, Carl Francis Carter, 60, of Deptford, N.J., was arrested in Hidalgo County, N.M., after an officer of the New Mexico Department of Public Safety Motor Transportation Division found 527 kilograms (1163 pounds) of marijuana concealed in Carter’s commercial vehicle during a routine inspection. Subsequent investigation by Homeland Security Investigations (HSI) linked Gary Harris and Eric Harris to the marijuana seized from Carter.
According to the criminal complaint, Carter had been in communication with Gary Harris on the night of his arrest, and Eric Harris had attempted to contact Carter the morning after his arrest. Investigation also revealed that Gary Harris and Eric Harris traveled from New York to Phoenix, Ariz., on July 17, 2011, to facilitate the purchase of the marijuana found in Carter’s commercial vehicle and to transport it from Tucson, Ariz., to New York. Gary Harris and Eric Harris traveled back to New York on July 27, 2011, following Carter’s arrest.
On Aug. 13, 2013, HSI agents arrested Gary Harris in Carle Place, N.Y., and Eric Harris in New York, N.Y. The two men subsequently appeared in Las Cruces federal court to face the charges against them. On Nov. 13, 2013, Gary Harris and Eric Harris were indicted and charged with conspiracy and possession of marijuana with intent to distribute.
Yesterday afternoon, Gary Harris pleaded guilty to possession of marijuana with intent to distribute. In his plea agreement, Gary Harris admitted possession of 300 pounds of the marijuana that was found in Carter’s commercial vehicle. He also acknowledged that Carter was hauling a total of 527 kilograms (1163 pounds) of marijuana when he was arrested on July 27, 2011. Gary Harris further admitted traveling from New York to Phoenix to facilitate the purchase and transportation of the marijuana seized from Carter.
Gary Harris faces a penalty of not less than five years and not more than 40 years in prison when he is sentenced. His sentencing hearing has yet to be scheduled. As part of his plea agreement, Gary Harris will forfeit $52,882.97 in drug proceeds which were seized from two bank accounts and a safe deposit box by HSI pursuant to seizure warrants.
Carter pled guilty to a marijuana trafficking charge on Jan. 31, 2012, and admitted knowingly possessing 527 kilograms of marijuana on July 27, 2011. Carter admitted knowing that the marijuana was concealed in his commercial vehicle and that he expected to be paid for delivering the marijuana for further distribution. Carter’s sentencing hearing has yet to be scheduled. He also faces a penalty of not less than five years and not more than 40 years in prison when he is sentenced.
Eric Harris, who has entered a not guilty plea to the charges against him, is scheduled for a change of plea hearing on March 7, 2014. The charges against Eric Harris are merely accusations and he is presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Deming office of HSI with assistance from the New Mexico Department of Public Safety Motor Transportation Division, and is being prosecuted by Supervisory Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office.
New Haven Heroin Dealer Sentenced to Six Years in Federal PrisonRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DANIEL EVANS, also known as “D-Nice,” 41, of New Haven, was sentenced today by Senior U.S. District Judge Ellen Bree Burns in New Haven to 72 months of imprisonment, followed by three years of supervised release, for distributing heroin.
According to court documents and statements made in court, this matter stems from “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants, and seizures of narcotics and firearms. More than 100 individuals were charged as a result of the investigation.
EVANS has been detained since his arrest on May 17, 2012. On September 20, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin.
EVANS’s criminal history includes at least four prior felony convictions, including three prior felony drug convictions and one conviction for assault in the second degree with a firearm.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Marc Silverman.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Mission Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on March 3, 2014, by U.S. District Judge Roberto A. Lange.
Francisco Maldonado, age 41, was sentenced to 51 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Maldonado was indicted by a federal grand jury on June 12, 2013. He pled guilty on December 4, 2013.
The conviction stems from an incident on June 9, 2013, when Maldonado was in the company of others, at a rural Todd County home near Antelope. Maldonado struck the victim with a frying pan and a sharp object, causing serious bodily injuries, including several cuts on the victim’s head that required staples, a 1 inch puncture wound to his left forearm, and a 1 ½ inch puncture wound to his right bicep, both of which required sutures.
This case was investigated by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers prosecuted the case.
Maldonado was immediately turned over to the custody of the U.S. Marshals Service.
Michigan Man Sentenced for Bringing Heroin to Huntington on A Greyhound BusRead the Press Release
Huntington, W.Va. – A Michigan man was sentenced to nine years and three months’ imprisonment for possession of heroin with intent to distribute, United States Attorney Booth Goodwin announced today. Darius Lajuan Kincannon, 30, of Redford, Michigan, arrived in Huntington from Michigan in February 2013 on a Greyhound bus. Kincannon brought a backpack with him that contained, among other items, approximately 510.6 grams of heroin and a 16 ounce bottle of Superior Inisotal, a common cutting agent for heroin. The backpack was seized at the Greyhound station by the Huntington Police Department. Kincannon previously plead guilty on November 19, 2013, to possession with intent to deliver 100 grams or more of heroin.
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. 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 in communities across the Southern District.
Mexican Pair Indicted in Debit/Credit Card ConspiracyRead the Press Release
McALLEN, Texas – A federal grand jury has returned a four-count indictment against Mary Vaquera-Garcia, 27, and Daniel Dominguez-Guardiola, 28, alleging a conspiracy to use debit/credit cards with the intent to defraud, announced U.S. Attorney Kenneth Magidson.
Vaquera-Garcia and Dominguez-Guardiola, both of Mexico, allegedly wired thousands of dollars overseas to purchase stolen account information in order to create counterfeit debit/card cards. According to the charges, the cards had account numbers belonging mostly to Hidalgo County residents. The defendants then allegedly used the counterfeit cards to purchase high-end electronics - such as iPads, iPods and Macbook laptops - at local stores including Best Buy, Wal-Mart, K-Mart, Toys-R-Us and HEB. In particular, subsequent investigation revealed the defendants went on a $30,000 shopping spree on Jan. 12 using the counterfeit cards, according to the allegations.
Vaquera-Garcia and Dominguez-Guardiola were arrested Jan. 19, 2014, on several outstanding warrants as they attempted to re-enter the U.S. through the Anzalduas Port of Entry. A total of 96 counterfeit cards were allegedly found hidden in Dominguez-Guardiola’s waistband.
If convicted, they face up to 10 years in federal prison and a possible $250,000 fine on each count.
Both have been ordered to remain in custody pending further criminal proceedings.
This case was investigated by the Secret Service with the assistance of the McAllen Police Department. Assistant U.S. Attorney Christopher Sully is prosecuting the case.
A complaint or indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Mescalero Apache Man Pleads Guilty to Assault by a Habitual Offender ChargesRead the Press Release
ALBUQUERQUE – Lonnie Ray Youngman, 45, pleaded guilty this afternoon in Las Cruces federal court to an indictment charging him with assault with a dangerous weapon and domestic assault by a habitual offender. The guilty plea was announced by Acting U.S. Attorney Steven C. Yarbrough and DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of BIA’s Office of Justice Services.Youngman, a member of the Mescalero Apache Nation who resides in Mescalero, N.M., was arrested on July 8, 2013, on a criminal complaint alleging that he assaulted his domestic partner, a Mescalero Apache woman. Youngman subsequently was indicted and charged with assaulting the victim with a dangerous weapon on Jan. 6, 2012, and assaulting the victim on Jan. 5, 2012. The indictment alleged that Youngman was a habitual domestic offender because he previously had been convicted on domestic assault charges in May 1996 and April 2010.
In entering his guilty plea, Youngman admitted assaulting the victim on Jan. 5, 2012, by striking her with a wooden table leg. He also admitted assaulting the victim on Jan. 6, 2012, by punching, kicking and biting her. Youngman acknowledged that the victim sustained serious bodily injuries, including contusions on the face, scalp, neck and arm, a deviated septum, and bite marks, as a result of the assaults. He further acknowledged committing both assaults within the Mescalero Apache Reservation.
Youngman has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. Under the terms of his plea agreement, Youngman will be sentenced to 38 months in prison followed by a term of supervised release to be determined by the court.
This case was investigated by the Mescalero Agency of BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office. It was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Manhattan U.S. Attorney Announces New Chiefs of Public Corruption and Terrorism UnitsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today the appointments of Brendan McGuire as Co-Chief of the Terrorism & International Narcotics Unit and Arlo Devlin-Brown as Chief of the Public Corruption Unit.
Mr. McGuire joined the U.S. Attorney’s Office in 2005. Prior to being named Co-Chief of the Terrorism & International Narcotics Unit, he served as Chief of the Public Corruption Unit and oversaw the successful prosecutions of former New York State Senator Carl Kruger, former New York City Council Member Larry Seabrook, former New York State Assemblyman Eric Stevenson, and the prosecution of individuals and entities involved in the CityTime fraud scheme. Previously, Mr. McGuire was a leading prosecutor in the Terrorism and International Narcotics Unit where he was part of the Southern District teams that successfully prosecuted Times Square bomber Faisal Shahzad and Somali pirate Abduwali Muse. Mr. McGuire was also a member of the trial teams that tried and convicted Russian arms trafficker Viktor Bout and Syrian arms dealer Monzer al Kassar for conspiring to kill Americans.
Prior to joining the U.S. Attorney’s Office, Mr. McGuire, 37, clerked for the Honorable Peter K. Leisure of the Southern District of New York and worked as an associate at Paul, Weiss, Rifkind, Wharton & Garrison and Stillman & Friedman PC in New York. He is a graduate of Williams College and New York University Law School.
Mr. Devlin-Brown joined the U.S. Attorney’s Office in 2005. Prior to being named Chief of the Public Corruption Unit, he served as Deputy Chief of the Unit. Mr. Devlin-Brown has also served as a member of the Securities & Commodities Fraud Unit, the Complex Frauds Unit, and the Organized Crime Unit. During his tenure, Mr. Devlin-Brown was part of the Southern District teams that prosecuted and convicted former portfolio manager Mathew Martoma and indicted four SAC Capital Management Companies for insider trading; he played a key role in the investigation and charging of JPMorgan Chase for Bank Secrecy Act violations in connection with Bernard L. Madoff’s multibillion-dollar Ponzi scheme that resulted in a $1.7 billion forfeiture to be used to compensate Madoff’s victims. Mr. Devlin-Brown successfully prosecuted one of the largest Medicare fraud schemes – approximately $100 million – perpetrated by a single criminal organization. He also handled the prosecution of 12 senior executives and others from three leading illegal Internet gambling companies, which resulted in the termination of U.S. operations of these companies and over $1.5 billion in forfeiture.
Prior to joining the U.S. Attorney’s Office, Mr. Devlin-Brown, 40, clerked for the Honorable Kermit V. Lipez, United States Court of Appeals for the First Circuit, and worked as an associate at WilmerHale in New York. He is a graduate of Columbia University and Harvard Law School.
In making these appointments, Mr. Bharara said: “Brendan McGuire and Arlo Devlin-Brown are talented and dedicated public servants who have already made significant and valuable contributions and served the residents of the Southern District in the highest traditions of this Office. I am confident they will continue to do the same in their new positions, and I am grateful for their service.”
Manhattan U.S. Attorney Announces Arrest of Brooklyn Rabbi for Distributing Child PornographyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and James T. Hayes, Jr., the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), announced today the arrest of SAMUEL WALDMAN for distributing child pornography. WALDMAN, 52, a rabbi and a teacher at a girl’s seminary, was arrested by HSI agents this morning at his residence in Brooklyn, New York. He was presented today before U.S. Magistrate Judge James L. Cott in Manhattan federal court.
Manhattan U.S. Attorney Preet Bharara said: “Samuel Waldman’s position of trust in the community, as both a rabbi and a teacher, makes his alleged distribution of child pornography all the more disturbing. As we have said repeatedly, we have zero tolerance for the exploitation of children and we will prosecute and punish those who engage in this conduct.”
ICE HSI Special Agent-in-Charge James T. Hayes, Jr. said: “Distributing child pornography is a serious crime made all the more disturbing when committed by an individual who has been implicitly entrusted as an educator. Through Operation Caireen, HSI New York and our partners will target individuals who abuse their positions of trust in our communities by committing crimes of sexual exploitation against children.”
According to the allegations in the criminal Complaint filed today in Manhattan federal court, in or about November 2013, WALDMAN distributed child pornography over the Internet by making available for downloading through file-sharing software multiple videos depicting minors engaged in sexual acts.
WALDMAN is charged with one count of transporting or distributing child pornography, which carries a mandatory minimum sentence of five years in prison, a maximum sentence of 20 years in prison, and a maximum fine of $250,000 or twice the gross gain or loss from the offense. The maximum potential sentence in this case is prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of ICE HSI. He added that the investigation is continuing.
The prosecution is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Patrick Egan is in charge of the prosecution.
The charge contained in the Complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
ICE HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-347-2423. This hotline is staffed around the clock by investigators.
Suspected child sexual exploitation or missing children may be reported to the National Center for Missing and Exploited Children, an Operation Predator partner, at 1-800-843-5678 or http://www.cybertipline.com.
U.S. v. Samuel Waldman Complaint
Luzerne County Man Pleads Guilty to Bath Salts Distribution ConspiracyRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania, announced the guilty plea of a West Pittston man for his role in a conspiracy to distribute “bath salts”.
According to United States Attorney Peter J. Smith, Todd Morgans, age 34, pled guilty to conspiring with others to distribute alpha-pyrrolidinopentiophenone (A-PVP), an analogue of methylenedioxypyrovalerone (MDPV) before U.S. District Judge Malachy Mannion in federal court yesterday. A-PVP is a synthetic cathinone which is included in a family of abused drugs commonly known as “bath salts”.
A controlled substance analogue is a drug which has not been scheduled under The Controlled Substances Act but shares a substantially similar chemical structure as a scheduled drug and has a substantially similar stimulant or hallucinogenic effect on a person’s central nervous system. Additionally, the government must also establish that drug was distributed for human consumption. The Controlled Substances Act provides that controlled substance analogues shall be treated as if the substance were the scheduled drug for prosecution and sentencing purposes.U.S. Attorney Smith noted that the plea agreement provides that the defendant will accept the United States Sentencing Guidelines enhancement that is applicable when the death or seriously bodily injury of another results from the use of the controlled substance. The investigation surrounding the death of Jason Folweiler remains ongoing.
Morgans has agreed to forfeit an automobile, the contents of his bank account, $40,000 in currency seized from the defendant’s home and a silver bar.
This investigation was conducted by the Department of Homeland Security-Homeland Security Investigations, the Pennsylvania State Police and the West Pittston Police Department and is being prosecuted by Assistant United States Attorney Amy C. Phillips.
Lucas Man Faces Child Pornography ChargesRead the Press Release
Robert A. Anderson, 68, of Lucas, Ohio, was charged with producing, receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that from on or about January 1, 2003, through on or about April 26, 2011, Anderson did use, persuade, induce, entice and coerce two minors to engage in sexually explicit conduct, for the purpose of producing a visual depiction of such conduct, and such visual depiction was produced or transmitted using materials that had been mailed, shipped, and transported in or affecting interstate or foreign commerce by any means, including by computer.
Anderson is further charged with knowingly receiving and distributing, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct, possessing a SanDisk 64GB thumb drive and an HP Pavilion desktop computer that contained child pornography on January 21, 2014, and knowingly attempting to destroy, damage, waste, dispose of, transfer, or otherwise take any action, involving three SanDisk thumb drives, for the purpose of preventing or impairing the government’s lawful authority to take such property into its custody or control during the execution of a federal search warrant.
If convicted, the sentence in this case will be determined by the Court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique 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.
This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik. The case was investigated by the Department of Homeland Security Investigations, Cleveland Office.
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.
Lewiston Man Pleads Guilty to Theft and Drug ChargesRead the Press Release
Contact: Jonathan R. Chapman
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Nathan
K. Brown, 24, of Lewiston, Maine, pled guilty today in U.S. District Court in Portland to theft from interstate shipments and possession of controlled substances charges.According to court records, in 2013, Brown worked for the United Parcel Service (UPS) loading trucks at a UPS facility in Auburn, Maine. On four occasions between March 29 and
June 19, 2013, Brown stole packages containing prescription pain relief medications, including
Percocet and Oxycodone , from UPS trucks that he was loading. The medications in those packages had been shipped from a U.S. Department of Veterans Affairs (VA) pharmacy to patients of the VA. On July 2, 2013, agents of the VA Office of Inspector General and the
Maine Drug Enforcement Agency, with the assistance of UPS personnel, caught Brown as he attempted to steal a fifth package containing VA medications.
Brown faces up to three years in prison and a $250,000 fine, or both, on the theft charge and not more than one year and a $1,000 fine, or both, on the possession of a controlled substance charge. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.This case was investigated by the VA, Office of Inspector General, the Maine Drug
Enforcement Agency, and the U.S. Postal Service, Office of Inspector General.League City Registered Sex Offender Convicted of Multiple Counts Involving Child PornographyRead the Press Release
GALVESTON, Texas – Donald Post, of League City, 68, has entered a guilty plea to production and distribution of child pornography involving a four-year-old minor female as well as possession of child pornography, announced United States Attorney Kenneth Magidson.
Post was arrested Aug. 8, 2013, based on a criminal complaint and appeared before U.S. Magistrate Judge John Froeschner in Galveston on Aug. 13 for a detention hearing. At that time, the court found there to be probable cause he committed the crimes and that Post, a registered sex offender, was a danger to the community and a flight risk. He was subsequently ordered into custody pending further criminal proceedings.
Post has admitted to photographing a four-year-old female victim in lewd and lascivious poses and then distributing these images via the Internet. He also authored a document that chronicled his activities with this victim. The account of the incident is incredibly graphic and makes references to his prior acts of molestation for which he was convicted and subsequently ordered to register as a sex offender.
U.S. District Court Judge Gregg Costa , who accepted the guilty plea, has set sentencing for May 21, 2014. At that time, Post faces a minimum of 25 years and a possible 20, 40 and 50 years, respectively, for the possession, distribution and production of child pornography convictions. The charges also carry as possible punishment a maximum fine of $250,000. Upon completion of any prison term imposed, he further faces a maximum of life on supervised release and he will again be required to register as a sex offender.
This case, investigated by the FBI and prosecuted by Assistant U.S. Attorney Sherri L. Zack, 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."
Lakewood Man Indicted for $3.7 Million Credit Union FraudRead the Press Release
A Lakewood man was indicted on three counts for his role in a conspiracy to defraud a now-failed credit union out of $3.7 million, some of which he used to buy and sell a property in downtown Cleveland, law enforcement officials said.
Sato Satka, 65, was indicted on one count each of conspiracy, bank fraud and bank bribery.
Satka conspired with others, including Anthony Raguz, the former Chief Operating Officer of the St. Paul Croatian Federal Credit Union (SPCFCU), to defraud the credit union. Satka paid bribes and kickbacks to Raguz for using his position at the credit union to approve numerous loans to Satka, and the entities he controlled and associates, according to the indictment.
From 1999 through 2004, Satka, his family members and businesses he controlled received more than $4.4 million in loan proceeds from SPCFCU, but little or no legitimate monthly payments were made to the credit union. As a result, the loans were in default, but in order to avoid detection from the credit union board, Raguz ordered “resets” to make it appear the loans were not in default, according to the indictment.
Satka controlled several enterprises, including F&S Satka Enterprises LLC, Sako Satka Parking West 3, Satka Parking Summer, Satka Parking Bolivar, Satka Parking Prospect and Titanic II, according to the indictment.
In October 2003, he purchased a commercial real estate property at 1350 West 3rd Street, Cleveland, for $460,000, according to the indictment.
J.P. is a person known to the Grand Jury but not charged herein. He purportedly controlled several non-operating entities, including: Metropolitan Restaurant Systems, Buckeye Cartage, Play Magazine, Celebrity Limousine, Victor/John Model & Talent, Jay Kay Records, and others, according to the indictment.
Around November 2004, Satka recruited J.P. to apply for multiple fraudulent loans from SPCFCU. On Nov. 5, 2004, approximately 13 months after Satka purchased the West 3rd Street property for $460,000, he sold it to J.P.’s company, Metropolitan Restaurant Systems, for $3 million, according to the indictment.
To induce Raguz to approve J.P.’s loan in November 2004, Satka handed Raguz a brown paper bag filled with $90,000 in cash and stated the money was for the approval of J.P.’s loan so that those proceeds could be used to settle Satka’s loan obligations to SPCFCU, according to the indictment.
Raguz proceeded to issue approximately $3.7 million in loans to 10 entities controlled by J.P., of which approximately $3.6 million was used to pay off loan balances on accounts held by Satka, his relatives or businesses he controlled. J.P. made no legitimate attempts to repay any of the loans and SPCFCU incurred a loss of $3.7 million, according to the indictment.
SPCFCU, located in Eastlake, was placed into conservatorship by the National Credit Union Administration on April 23, 2010. One week later, the NCUA liquidated SPFCFU and discontinued its operations after determining the credit union was insolvent. At that time, SPCFCU served about 5,400 members and was believed to have assets of approximated $239 million.
About two dozen people, including Raguz, have been convicted of crimes for conduct that led to the credit union’s collapse.
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.
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.
This case is being prosecuted by Assistant U.S. Attorney Bridget M. Brennan following an investigation by the Cleveland office of the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division.
Justice Department and Equal Employment Opportunity Commission Enter into Consent Decree with Harmony Public Schools Resolving Claims of Retaliation and Pay Discrimination Against TeacherRead the Press Release
The Justice Department and the Equal Employment Opportunity Commission (EEOC) announced today that they have entered into a consent decree that, if approved by the court, will resolve both agencies’ claims against Harmony Public Schools on behalf of Nicole M. Tuchscherer, a former teacher at Harmony Science Academy-Austin. The EEOC suit, filed on Oct. 30, 2012, in the U.S. District Court for the Western District of Texas, alleges that Harmony Public Schools violated the Equal Pay Act of 1963 (EPA) when it paid Tuchscherer less than a male teacher who performed the same or substantially similar work, and when it retaliated against her for opposing such compensation practices.
The Justice Department’s complaint, which was filed with the consent decree in the U.S. District Court for the Western District of Texas, alleges that Harmony Public Schools violated Title VII of the Civil Rights Act of 1964 when it retaliated against Tuchscherer by failing to renew her teaching contract because she complained of pay discrimination. The parties are seeking to consolidate the two cases and have asked the U.S. District Court to enter the consent decree resolving the claims of both the Justice Department and the EEOC.
Tuchscherer, who taught art at Harmony Science Academy-Austin for five years, held a State of Texas teaching certification and met the state’s Highly Qualified teacher criteria, earned $40,000 in her fifth year of teaching. In comparison, an uncertified male art teacher with no previous teaching experience was paid an annual salary of $44,000 by Harmony Public Schools to teach at another Austin-area school. The EEOC, which has litigation authority against state and local governments pursuant to the EPA, has alleged that in paying Tuchscherer less than a male counterpart who performed the same or substantially similar work, Harmony violated the EPA.
In May 2010, during an annual salary negotiation meeting with the school principal, Tuchscherer asked Harmony to pay her a salary equal to that of male teachers of Turkish descent at the school. According to the Justice Department’s complaint, when Tuchscherer told Principal Halit Erdogdu that she believed Harmony discriminates against women and Americans in compensation, he became angry with Tuchscherer for raising these issues and called her unprofessional and negative. Two weeks later, Harmony Public Schools informed Tuchscherer that her teaching contract had not been renewed. Both the EEOC and the Justice Department allege that this decision was in retaliation for Tuchscherer complaining of unlawful discrimination. This is the second joint EPA-Title VII litigation effort in Texas resolved by the two federal agencies.
Under the terms of the consent decree, Harmony Public Schools has agreed to pay $125,000 in lost wages and compensatory damages to Tuchscherer. Harmony Public Schools has also agreed to: include two previously-written reference letters in Tuchscherer’s official personnel file; develop and distribute comprehensive anti-discrimination and anti-retaliation policies; train the employees at its five Austin-area schools regarding employee rights and employer obligations under the EPA and Title VII; and post on the premises of its Austin-area schools a notice to employees.
“Both Title VII and the Equal Pay Act protect employees who have the courage to challenge discriminatory compensation practices from unlawful retaliation by their employers,” said Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels. “We are pleased to have been able to work cooperatively with the Equal Employment Opportunity Commission to achieve a broad range of injunctive and monetary relief in this important case.”
“The EEOC’s Strategic Enforcement Plan has made sex-based wage discrimination a national enforcement priority,” said EEOC General Counsel David Lopez. “This case represents our latest litigation effort to combat this problem and reflects our commitment to work collaboratively on equal pay issues with our governmental partners.”
In Fiscal Year 2012, EEOC received over 4,100 charges of gender-based wage discrimination, and obtained over $24 million in relief for victims of gender-based wage discrimination through administrative enforcement efforts and litigation. The EEOC and Justice Department also continue to serve as key members of the National Equal Pay Enforcement Task Force, a federal government initiative focused on ending the gender pay gap.
The EEOC’s case was litigated by Senior Trial Attorney Eduardo Juarez and Supervisory Trial Attorney Judith Taylor of the EEOC, and the Justice Department’s case was handled by Senior Trial Attorneys Valerie Meyer and Amy Kurren and Deputy Chief Karen Woodard of the Civil Rights Division’s Employment Litigation Section.
More information about the EEOC is available on its website . Additional information about the Employment Litigation Section of the Civil Rights Division is available on its website .
Justice Department Files Lawsuit Against the School District of Philadelphia for Religious DiscriminationRead the Press Release
The Department of Justice announced the filing of a lawsuit today against the School District of Philadelphia alleging that the district discriminated against Siddiq Abu-Bakr, as well as other similarly-situated individuals, on the basis of religion in violation of Title VII of the Civil Rights Act of 1964. The lawsuit further alleges that the district’s employment policies constitute a pattern or practice of religious discrimination, also in violation of Title VII.
The complaint, filed in the U.S. District Court for the Eastern District of Pennsylvania, alleges that the district discriminated against Abu-Bakr and similarly-situated individuals by failing to accommodate their religious beliefs after it instituted a new grooming policy in October 2010 that prevented school police officers and security officers from having beards longer than one-quarter inch. Abu-Bakr, a school police officer since 1987, is a member of the Islamic faith, which requires him not to cut his beard. Consistent with his religious beliefs, Abu-Bakr has maintained an untrimmed beard longer than one-quarter inch for the 27 years that he has worked for the district, without evidence that the maintenance of an uncut beard has interfered with his job performance. When Abu-Bakr notified his supervisor that he could not comply with the new grooming policy due to his religious beliefs, Abu-Bakr was issued a written reprimand for violating the policy. According to the complaint, the district failed to consider Abu-Bakr’s request for reasonable accommodation to its grooming policy that would have been in accordance with his religious beliefs, and later denied his request without making the requisite showing that doing so would cause an undue hardship.
Through this lawsuit, the United States is seeking declaratory and injunctive relief requiring the district to develop and implement new grooming policies that would prevent its employees from being discriminated against based upon religion, as well as monetary damages for Abu-Bakr and similarly-situated individuals.
“Individuals should not have to choose between maintaining their jobs and practicing their faith when accommodations can be reasonably made,” said Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels. “Federal law requires all employers, even those with grooming and uniform policies, to reasonably accommodate the religious observances and practices of their employees.”
Abu-Bakr originally filed a charge of religious discrimination with the Equal Employment Opportunity Commission (EEOC). The EEOC’s Philadelphia District Office investigated the matter, determined that there was reasonable cause to believe that discrimination had occurred, and referred the matter to the Department of Justice.
“No employee should be forced to violate his religious beliefs in order to earn a living,” said District Director Spencer H. Lewis Jr. of the EEOC’s Philadelphia District Office. “Modifying a dress or grooming code is a reasonable accommodation that enables employees to keep working without posing an undue hardship on the employer. We are pleased that the EEOC's collaboration with the Department of Justice protects public employees from religious discrimination.”
The continued enforcement of Title VII is a priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division of the Department of Justice is available on its website .
Justice Department Asks Federal Court to Shut Down Clinton, Miss., Tax PreparerRead the Press Release
The United States filed a complaint seeking to bar Kavivah Branson, aka Kavivah Bradley, and her Jackson, Miss., business, Branson Tax Service, from preparing federal tax returns for others, the Justice Department announced today.
The civil injunction complaint, filed in the U.S. District Court for the Southern District of Mississippi, alleges that Branson, of Clinton, Miss., prepares federal income tax returns for customers that understate the tax actually due. According to the complaint, Branson allegedly claims improper earned income tax credits and education credits for her customers without performing required due diligence and despite lack of supporting documentation. This results in understated taxes, and because the improperly claimed credits are refundable, the complaint alleges Branson also often overstates her customers’ refunds. Consequently, even taxpayers who do not report any federal tax liability can receive a refund up to the amount of the refundable credit claimed.
According to the complaint, over 99 percent of the 2,401 returns Branson has prepared since Jan. 1, 2009, sought a refund, and 97 percent of the 287 returns the Internal Revenue Service (IRS) has audited to date understated the customer’s tax liability by an average of $5,006. Given the number of returns Branson has prepared since 2009, her alleged actions could result in millions of dollars of tax harm to the United States.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2013. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page . If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Related Materials:
United States v. Kavivah Branson, et al.
ComplaintJohnstown Man Pleads Guilty in Stolen Identity Tax Refund SchemeRead the Press Release
PITTSBURGH - A resident of Johnstown, Pa., pleaded guilty in federal court to charges of wire fraud and identity theft, United States Attorney David J. Hickton announced today.
John M. Chapman, 33, pleaded guilty to 26 counts before David S. Cercone, United States District Judge.
According to the information presented to the court, between 2007 through 2011, Chapman stole identities of other persons, including their names and social security numbers, which he then used to file fraudulent electronic federal income form 1040 tax returns in their name, in which he sought tax refunds, and then instructed that the refunds be directed to bank accounts which he controlled. Losses from the scheme totaled approximately $113,000.
Judge Cercone scheduled the sentencing for July 11, 2014, at 1 p.m. The law provides for a maximum total sentence of not more than 515 years in prison, a fine of $6,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation conducted the investigation that led to the prosecution of John M. Chapman.
Huntington Felon Sentenced to Federal Prison for Illegally Possessing A FirearmRead the Press Release
Huntington, W.Va. – A Huntington man was sentenced to two years’ imprisonment for possessing a firearm as a convicted felon, United States Attorney Booth Goodwin announced today. In June 2012, Ricky Eugene Lewis, 35, pawned a Harrington & Richardson .20 gauge shotgun at the Kenova Pawn Shop in Kenova, West Virginia. The transaction was captured on the store’s surveillance video. Lewis had been previously convicted of the felony offense of trafficking in opium. Because of the felony conviction, Lewis was prohibited from possessing a firearm. Lewis was also involved in an incident December 2011 in Wayne County, West Virginia, in which he stole, among other items, two .38 caliber revolvers and a .22 caliber pistol, which, according to Lewis, he traded for drugs.
Today’s sentence was imposed by Chief United States District Judge Robert C. Chambers.
Harper Woods Resident Sentenced for Fraudulent Tax Return SchemeRead the Press Release
A Harper Woods man was sentenced to one year and a day in prison today following his conviction for making false statements in connection with filing 54 false tax returns, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Acting Special Agent in Charge Carolyn Weber, Internal Revenue Service Criminal Investigation.
U.S. District Judge Avern Cohn also ordered Mishawn Gordon, 25, to pay restitution to the Internal Revenue Service in the amount of $219,265.
In September of 2013, Gordon pleaded guilty to one count of filing a false claim against the United States. According to court records, during the 2008 through 2009 tax years, Gordon prepared and filed 54 tax returns for different individuals resulting in claims of approximately $539,000 and refunds issued totaling $219,265. He failed to provide the individuals with a copy of the returns he filed for them and never reviewed the returns with the individuals. Virtually all of the tax refund monies were directed to bank accounts that he owned or controlled. Some of the individuals received a split of the money deposited in their account, others were paid in cash by Gordon, and some never saw the refund.
“Gordon fabricated W-2s and falsely claimed credits to inflate tax refunds he intended to keep for his own benefit,” said Acting Special Agent in Charge Carolyn Weber. “Gordon’s behavior highlights the importance of carefully choosing the person that prepares your tax return.”
The investigation of this case was conducted by special agents of the Internal Revenue Service, and prosecuted by Assistant U.S. Attorney Wayne F. Pratt.Gun Dealers Plead Guilty to Federal Firearms ViolationsRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Daniel J. Kumor, Special Agent in Charge of the ATF Boston Field Division, announced that BRIAN VANACORE, 48, of North Branford, GREG BODYTKO, 54, of Northford, and their business, BMG LLC, pleaded guilty today in Bridgeport federal court to violating federal firearms laws.
According to court documents and statements made in court, VANACORE and BODYTKO were the owners of BMG LLC (BMC), which operated a gun store at 2585 Berlin Turnpike in Newington. VANACORE and BMG had three separate federal firearms licenses to deal firearms in Connecticut, and BODYTKO was a 50 percent partner in the business with VANACORE.
In the summer of 2013, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted a routine inspection of BMG’s Newington store. During the inspection, ATF inspectors found several firearms, including machine guns and silencers, which are required to be registered under the National Firearms Act. BMG records revealed that BMG had purchased these firearms, but had not changed the registration information in the National Firearms Registration and Transfer Record. As a result, each of the firearms remained registered to the individual who sold them to BMG. In total, BMG possessed 15 firearms that it should have registered under the National Firearms Registration and Transfer Record.
BMG, VANACORE and BODYTKO also failed, on numerous occasions, to report the sale of multiple handguns to the same individual, and failed to record in their Acquisition and Disposition records the acquisition and/or disposition of hundreds of firearms. On numerous occasions, the defendants failed to fill out properly, or failed to fill out at all, ATF Form 4473, a form that must be completed by individuals who purchase firearms from federally-licensed firearms dealers. They also failed to conduct necessary background checks on at least 10 separate occasions.
VANACORE and BODYTKO each pleaded guilty before U.S. Magistrate Judge William I. Garfinkel to one count of failing to keep a complete and accurate written record in its acquisition and disposition records for firearms, and one count of failing to report the multiple sale of handguns. VANACORE also entered a guilty plea on behalf of BMG to one count of making false entries in dealer’s records.
VANACORE and BMG are scheduled to be sentenced by U.S. District Judge Michael P. Shea in Hartford on May 28, 2014, and BODYTKO is scheduled to be sentenced by Judge Shea on June 6, 2014.
ANACORE and BODYTKO face a maximum term of imprisonment of one year and a fine of up to $100,000.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorneys Robert M. Spector and Michael Runowicz.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Griffin, Ga. Tax Preparer Pleads Guilty to Filing False Tax ReturnsRead the Press Release
ATLANTA - Buffy Drake has pleaded guilty to one count of wire fraud by filing false federal tax returns claiming fraudulent refunds in excess of $2.5 million.
“Filing false tax returns is stealing money right from the pockets of millions of honest taxpayers,” said United States Attorney Sally Quillian Yates. “Dishonest tax return preparers who choose to conduct business this way will be caught and prosecuted.”
“Return preparer fraud is a priority for IRS Criminal Investigation and we have committed many resources to investigating and prosecuting cases just like this,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “This defendant stole from the American taxpayer by filing false tax returns and today she is being held responsible for her actions.”
According to United States Attorney Yates, the charges and other information presented in court: Drake operated a tax preparation business in Griffin, Ga., named “Imagine That.” While operating “Imagine That,” Drake filed hundreds of false tax returns that claimed millions of dollars in fraudulent refunds. In total, from 2011 through 2012, Drake filed tax returns claiming in excess of $2,500,000 in fraudulent refunds. Drake retained a substantial portion of the proceeds from this scheme.
Drake, 43, of Griffin, Ga., has agreed to pay restitution to the IRS in the amount of $2,611,928.
In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders. Sentencing is scheduled for May 20, 2014, at 10:00 a.m. before United States District Judge Timothy C. Batten Sr.
This case is being investigated by Special Agents of the Internal Revenue Service Criminal Division with the assistance of the City of Griffin Police Department.
Assistant United States Attorney Thomas J. Krepp is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Newnan Division is http://www.justice.gov/usao/gan/.
Gregg County Man Guilty in Counterfeit Silver SchemeRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 47-year-old Longview, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
James Leroy Frattarola pleaded guilty to possessing counterfeit silver bars with the intent to defraud another today before U.S. Magistrate Judge K. Nicole Mitchell.
According to information presented in court, on Sep. 13, 2013, Frattarola possessed approximately 90 one-ounce silver bars, stamped with the impression, “.999 FINE SILVER” and “NORTHWEST TERRITORIAL MINT” with intent to defraud another. Frattarola admitted to possessing the counterfeit bars in Longview, Texas and to engaging in similar criminal conduct on other occasions involving a total of nine victims. Frattarola was indicted by a federal grand jury on Oct. 23, 2013.
Frattarola faces up to 15 years in federal prison at sentencing. He must also submit to forfeiture of the sized bars and over 100 counterfeit coins. Frattarola will also be ordered to pay a total of $28,720.40 in restitution to be divided among nine victims. A sentencing date has not been set.
This case is being investigated by the Longview Police Department, the Kingsville Police Department, the Grand Prairie Police Department, the Brazoria County Sheriff’s Office, and the U.S. secret Service and prosecuted by Assistant U.S. Attorney Jim Noble.
####Gila River Man Sentenced to 10 YearsRead the Press Release
PHOENIX – On March 4, 2014, Aaron Lee Escarsega, 19, of Laveen, Ariz., a member of the Tohono O’odham Nation, was sentenced by U.S. District Judge James Carrto 120 months in prison, followed by a lifetime supervised release. Escarsega pled guilty on Dec. 18, 2013, to abusive sexual contact of a minor
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children through the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Gila River Police Department. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-13-1229-PHX-SRB
RELEASE NUMBER: 2014-013_EscarsegaFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Fourth Defendant in Fake Id Ring Pleads GuiltyRead the Press Release
CHARLOTTESVILLE, VIRGINIA – A New Jersey man, and the fourth member of a Charlottesville-based fake identification ring, pled guilty this morning in the United States District Court for the Western District of Virginia in Charlottesville.
Michael A. DelRio, a.k.a. “Copernicus Lionheart” age 19, of Edison, New Jersey, pled guilty today in U.S. District Court to one count of conspiracy to commit identification document fraud. Previously, Alan McNeil Jones, Kelly Erin McPhee and Mark Gil Bernardo all pled guilty to one count of conspiracy to commit identification fraud and one count of aggravated identity theft for their roles in the conspiracy.
“Mr. DelRio played a significant role in perpetuating a high-tech and sophisticated scheme to produce and sell high-quality false identification documents all across the nation,” United States Attorney Timothy J. Heaphy said today. “He worked to develop a web-based interface for potential customers that, if deployed, would have made the criminal enterprise even more lucrative than it was. Because false identification documents present very real threat to our security, we will continue to prioritize cases like that against Mr. DelRio and his co-conspirators.”
"Counterfeit identity documents, like the ones produced by this ring, can be used by criminals, enabling them to mask their identities and operate with ease in the United States," said Scot Rittenberg, acting special agent in charge of ICE Homeland Security Investigations, Washington. "HSI is committed to stopping this threat that undermines our nation's security."
Previously, Jones, McPhee and Bernardo admitted to conspiring to create high-quality, fraudulent driver’s licenses out of the home they shared on Rugby Road in Charlottesville. The conspiracy, which began in 2010 and operated under the name Novel Design, produced and sold more than 25,000 fraudulent driver’s licenses, primarily to college students, throughout the nation.
As part of the scheme, Jones paid commissions to students at the University of Virginia, and elsewhere, to refer his service to other students interested in obtaining fraudulent driver’s licenses. He also outsourced some of the manufacturing work to companies in Bangladesh and China.
Jones and Bernardo recruited DelRio to streamline the website for their fraudulent identification business. Jones paid DelRio $15,000 to build a website that would allow customers to input biographical information directly onto the site, which would then be printed on the fraudulent identification document each customer had ordered. Allowing customers to enter information via a secure, off-shore website would have saved the conspirators the time it previously took to input that information by hand. Both Jones and Bernardo indicated that DelRio had been informed of the nature and use of the program he was being asked to produce.
At sentencing, DelRio faces a maximum possible penalty of up to 15 years in prison and/or a fine of up to $250,000.
The investigation of the case was conducted by U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HIS) Washington, the United States Postal Inspection Service, the Virginia State Police and the Virginia Attorney General’s Computer Forensics Unit. United States Attorney Timothy J. Heaphy, Assistant United States Attorney Ronald Huber and third-year University of Virginia Law Student Maggie Sullivan prosecuted the case for the United States.
Fort Thompson Woman Sentenced for LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota, woman convicted of Larceny was sentenced on March 3, 2014, by U.S. District Judge Roberto A. Lange.
Ruby Sazue, age 20, was sentenced to time served (105 days), 18 months of Supervised Release, $7,300 in restitution, and a $100 special assessment to the Federal Crime Victims Fund.
Sazue was indicted by a federal grand jury on November 14, 2013. She pled guilty on January 13, 2014.
The conviction stems from an incident occurring on the evening of October 30, 2013, when Sazue learned of the death of her former significant other. She began to drink alcohol and became upset at the news. Sazue stole the motor vehicle belonging to the victim in an effort to try and drive to Pierre. After stealing the vehicle, Sazue wrecked the vehicle near the power plant outside of Fort Thompson.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Former Winchester Brake Pad Engineer Pleads Guilty to Theft of Trade Secrets ChargeRead the Press Release
LEXINGTON, KY - Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Perrye Turner, Special Agent in Charge, FBI, and Mythili Raman, Acting Assistant Attorney General for the U.S. Department of Justice’s Criminal Division jointly announced today that a Winchester, KY., man admitted in federal court that he conspired to share confidential information about his employer’s brake pads with another company.
David Lewis, 65, pleaded guilty on Monday to conspiracy to commit theft of trade secrets, before Senior U.S. District Judge Joseph M. Hood.
Lewis admitted that, between 2006 and 2007, he emailed trade secrets concerning the specifications of brake pads, which information is the property of Lewis’s former employer, Brake Parts International, Inc. According to the plea agreement, Lewis was paid thousands of dollars by a Canadian company for this information.
On March 3, Lewis waived his right to be indicted and pleaded guilty to the charge brought by U.S. Attorney Harvey.
The investigation was conducted by the FBI and the U.S. Attorney’s Office was represented by Assistant U.S. Attorney Hydee Hawkins and Evan Williams, Senior Council of the Department of Justice’s Computer Crime & Intellectual Property Section.
David Lewis is scheduled to be sentenced on July 7, 2014. He faces up 10 years in prison and a maximum fine of $250,000. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the applicable federal statutes.
Former Kickapoo Tribe Employee Pleads Guilty to EmbezzlementRead the Press Release
Oklahoma City, Oklahoma – KYLE JAY GIPP, 34, of Shawnee, Oklahoma, pled guilty today to embezzlement from the Kickapoo Tribe of Oklahoma while he worked as a tribal employee, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Gipp worked for the Kickapoo Tribe from July of 2008 through January of 2013. In 2009, Gipp started managing the tribe’s property and supply unit. As part of those duties, Gipp maintained and managed Kickapoo Tribe credit cards that tribal employees used to buy fuel for tribal vehicles. According to the Information filed in the case, the tribe had specific operating procedures in place for employees to use its credit cards to purchase gas for tribal vehicles. The Information alleged that a particular credit card was used several times during 2012 without proper documentation or receipts.
At today’s plea hearing, Gipp pled guilty to one count of tribal embezzlement. Specifically, Gipp admitted that from January 2011 through the end of 2012, he used a Kickapoo Tribe credit card to buy more than $22,000 of gas for his personal vehicles. Gipp’s punishment for the offense could be as much as five years in prison, three years of supervised release, and a fine of $250,000. In a plea agreement, Gipp agreed to pay restitution to the Kickapoo Tribe in the amount of $22,447.44. Sentencing is scheduled for June 18, 2014.
This charge is the result of an investigation conducted by the Federal Bureau of Investigation, and the case is being prosecuted by Assistant U.S. Attorney Chris M. Stephens.