Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
28 February 2014
SYRACUSE, NEW YORK - A physician and employee of a former Utica and Fulton area medical practice indicted.Read the Press Release
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced the indictment of a physician and employee of a former Utica and Fulton area medical practice.
MAHESH KUTHURU, M.D., age 43, and BONNIE MEISLIN, age 42, were indicted by a federal grand jury in Syracuse on February 26, 2014. KUTHURU owned and operated Upstate Pain Management, which had medical offices at 59 South First Street, Fulton, New York and 287 Genesee Street, Utica, New York. BONNIE MEISLIN was an employee of Upstate Pain Management. The indictment charges MEISLIN and KUTHURU with engaging in a scheme to defraud Medicare by submitting claims for reimbursement that falsely represented that Dr. KUTHURU had performed medical services when in fact he had not. According to the indictment, KUTHURU purchased a medical practice in Las Vegas, Nevada, known as Desert Pain Management in November 2008. In July 2009 KUTHURU sold his home in Baldwinsville and purchased a home in Las Vegas. By January 2010 through at least September 2011, KUTHURU was spending the majority of his time at his Las Vegas medical practice, coming back to the Utica and Fulton offices to treat patients only a sporadic basis. The indictment further charges that from January 2010 through September 2011 there were substantial periods of time when there were no licensed medical personnel whatsoever in the Utica and Fulton offices and that patients there were seen only by unlicensed staff members who had received no formal medical training.
The indictment further charges KUTHURU with unlawful distribution of Schedule II controlled substances including Oxycodone, Oxycotin, Methadone and Morphine Sulphate.
MEISLIN had earlier been indicted on January 8 on charges of health care fraud. The recent indictment further specifies the nature of those charges. KUTHURU was arrested in Las Vegas on February 28. He is scheduled to appear for arraignment before United States Magistrate Judge Therese Wiley Dancks in Syracuse on March 12, 2014 at 2:00 pm.
Each of the thirty health fraud counts carries a maximum penalty of 10 years imprisonment and a fine of $250,000. Each of the fifteen counts of drug distribution carries a maximum penalty of 20 years imprisonment with a fine of $1,000,000.
The case was a joint investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the New York State Bureau of Narcotics Enforcement, United States Department of Health and Human Services, New York State Worker’s Compensation Board, Safeguard Services, and Excellus Blue Cross & Blue Shield Special Investigations. The case is being prosecuted by Assistant U.S. Attorney Edward R. Broton.
The indictment merely sets forth an accusation and the defendants are presumed innocent until the charges are proved beyond a reasonable doubt.
Rochester Man Arrested for Threatening to Kill the PresidentRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Ronnie Parker, 44, of Geneva, N.Y., was arrested and charged by criminal complaint with making a direct threat to kill the President of the United States. The charge carries a maximum sentence of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that the defendant threatened to kill President Barack Obama during an interview with United States Secret Service Agents.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Marian W. Payson. Parker is being held pending a detention hearing on March 5, 2014 at 3:30 p.m.The criminal complaint is the culmination of an investigation on the part of Special Agents of the United States Secret Service, under the direction of Special Agent in Charge, Tracy Gast.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Rio Grande City Man Sentenced for Smuggling Nearly 3,000 Kilograms of MarijuanaRead the Press Release
LAREDO – Rodolfo Reyna Sanchez, 45, of Rio Grande City, has been ordered to federal prison following his conviction of possession with the intent to distribute 2,845.5 kilograms of marijuana, announced United States Attorney Kenneth Magidson.
Today, U.S. District Judge Diana Saldaña sentenced Sanchez to a term 80 months imprisonment to be followed by a three-year term of supervised release.On July 30, 2012, Border Patrol agents were patrolling the Mines Road area northwest of Laredo just south of the Briscoe Ranch and noticed a tractor-trailer traveling north, which agents determined as registered to Sanchez. The vehicle was traveling on a route commonly used to avoid U.S. Border Patrol checkpoints and contained caliche, a sedimentary rock with little value in the back.
When agents approached, they immediately noticed a strong smell of marijuana. Sanchez provided consent to search his vehicle, at which time agents discovered 404 bundles of marijuana under the thin layer of dirt and rock in the trailer. The marijuana weighed 2,845.5 kilograms.
Sanchez admitted someone had paid for the truck and instructed him to register it in his name. He was en route to Houston where he was to receive $50,000 for transporting the marijuana. He admitted he knew the truck contained marijuana.
The investigation leading to the charges was conducted by the Homeland Security Investigations and Border Patrol. Assistant United States Attorney Elizabeth Rabe is prosecuting the case.
Repeat Offender Sentenced to Ten Years in Prison for Possession of Stolen FirearmsRead the Press Release
A felon who attempted to steal a disabled motorcycle from the shoulder of Interstate 5 was sentenced today in U.S. District Court in Seattle to ten years in prison and three years of supervised release for possession of stolen firearms, announced U.S. Attorney Jenny A. Durkan. The investigation revealed that DONOVAN SMITH, 43, possessed eleven firearms – ten of which were stolen in residential burglaries in Texas and Washington. SMITH committed the Texas burglaries just weeks after his release from a New Mexico prison for a second degree murder conviction. At sentencing U.S. District Judge Robert S. Lasnik ordered him to participate in drug treatment as part of his supervised release.
According to records filed in the case, SMITH was taken into custody by the Washington State Patrol following a May 17, 2012, incident on Interstate 5 near Seattle. The owner of a 1996 motorcycle suffered a flat tire and left the bike on the shoulder of the roadway while he went to get help. When he returned the motorcycle had been moved about a half mile north, and he saw SMITH attempting to remove the gas cap of the bike using a crow bar. The ignition of the bike had been damaged and was dangling from the frame. The victim called 9-1-1 and waited with his friends for the Washington State Patrol. SMITH and the woman who was driving his car were arrested for theft of a motor vehicle and malicious mischief. After obtaining a warrant to search SMITH’s car, investigators found the 11 firearms. When they searched SMITH’s Shoreline, Washington apartment they found other goods stolen in Texas including computers, cameras, and musical instruments (specifically violins and cellos). Also recovered in the apartment were two rifle scopes and a ballistic vest. The items recovered have been linked to seventeen residential burglaries in Texas and one residential burglary in Washington.
SMITH was charged federally on May 24, 2012 and pleaded guilty on March 6, 2013. SMITH has a lengthy criminal history including being a co-defendant in the 2002 murder of a 21-year-old woman in New Mexico. SMITH aided and abetted the homicide by fleeing the state with the firearm used to shoot the young woman and attempting to dispose of the gun. The first burglary connected with this case occurred just two weeks after SMITH was released from prison for the homicide.
The case was investigated by the Washington State Patrol and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
The case was prosecuted by Special Assistant United States Attorney Stephen Hobbs. Mr. Hobbs is a Senior Deputy King County Prosecutor specially designated to prosecute firearms cases in federal court.
Regional Director of Califco, LLC, A Property Management Company, Is Sentenced to 12 Months and 1 Day in Federal Prison for Violating the EPA’s Clean Air ActRead the Press Release
Defendants Ordered to Pay for Medical Monitoring for Victim-Workers in the Asbestos Removal Project
DALLAS — Jonathan Isaac Shokrian, 29, who served as a Regional Director at Califco, LLC, with oversight of the company’s business operations in Texas, was sentenced yesterday afternoon on a felony conviction related to an asbestos removal project. Chief U.S. District Judge Sidney A. Fitzwater sentenced Shokrian to 12 months and 1 day in federal prison and ordered him to pay a $25,000 fine following his guilty plea in June 2013 to one count of failure to notify under the Clean Air Act. His father, Elias Shokrian, Califco’s President and CEO, appeared today on behalf of the corporation, which has paid a $500,000 fine, for the same offense. Both defendants were ordered to pay for medical monitoring for victim-workers. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
During the pronouncement of sentencing, Chief Judge Sidney A. Fitzwater acknowledged the danger to the public health from asbestos exposure and the importance of adherence to EPA standards for its proper removal.
“This office is committed to holding those accountable who willfully violate federal laws designed to protect us from exposure to toxic materials,” said U.S. Attorney Saldaña.
Califco is a property management company headquartered in Beverly Hills, California; it has a regional office located on North Story Road in Irving, Texas. Califco owns and operates several commercial properties in the Dallas area, including Plymouth Park Shopping Center on North Story Road in Irving and Crest Plaza Shopping Center on South Lancaster Road in Dallas.
The Clean Air Act authorizes the U.S. Environmental Protection Agency (EPA) to establish standards to prevent or limit the emission of hazardous air pollutants into the atmosphere. The EPA has enacted regulations under the Clean Air Act that control the removal, handling and disposal of asbestos.
“There is no safe level of exposure to asbestos,” said Ivan Vikin, Special Agent in Charge of EPA’s criminal enforcement program in Texas. “Asbestos can cause cancer and other serious respiratory diseases and it must be handled legally and safely. The defendants ordered their workers to remove asbestos-containing materials illegally, putting them at great risk. This case should serve notice that EPA and its partner agencies will prosecute anyone who ‘cuts corners’ by avoiding the costs of handling or disposing of asbestos properly.”
In 2008, Califco and Jonathan Shokrian contracted with a specialized asbestos abatement contractor to remove asbestos from an old movie theater in the Crest Plaza Shopping Center. That abatement was conducted in compliance with all federal, state and local regulations and was completed in October 2008.
Approximately one month later, Jonathan Shokrian decided to conduct a renovation of the abandoned former Fazio’s department store in the Plymouth Park Shopping Center. Rather than hiring a professional asbestos abatement contractor, as Califco had done on its Crest Plaza Project, Shokrian attempted to save money by employing two day laborers to remove ceiling tile and floor tile and mastic from the Fazio’s building, even though he knew these materials contained asbestos.
While Califco provided the day laborers with masks, respirators and other tools to facilitate the removal of the asbestos-containing material, the masks and respirators were not adequate to protect the workers from the asbestos fiber. Shokrian did not inform the day laborers on the site, or the Califco-employed maintenance worker, that there was asbestos in the tile and mastic being removed. Neither Shokrian nor any other Califco employee notified any of the other commercial tenants of the Plymouth Park Shopping Center that asbestos-containing materials were being removed from the Fazio’s building.
In mid to late February 2009, day laborers, under Shokrian’s supervision, began using large amounts of gasoline to remove the remaining asbestos-containing floor tile mastic in the Fazio’s building. On February 27, 2009, after responding to a call regarding the overwhelming smell of gasoline in the area around the Plymouth Park Shopping Center, the Irving Fire Department ordered the evacuation of the shopping center and a portion of a nearby residential neighborhood because of the concentration of gasoline fumes in the Fazio’s building.
The EPA and the Texas Department of State Health Services conducted the investigation. Assistant U.S. Attorney Errin Martin prosecuted and Assistant U.S. Attorney Melissa Childs coordinated the fine collection.
Owner of Elk Grove Village Company Indicted for Allegedly Defrauding 200 Investors of $9 Million Through Stock SalesRead the Press Release
CHICAGO — More than 200 investors in an Elk Grove Village company that purportedly made homeland security and food safety products lost more than $9 million through the offer and sale of stock, according to a federal fraud indictment against the company’s majority owner and chief executive. The defendant, GREGORY WEBB, chairman, chief executive officer, president, and majority shareholder of InfrAegis, Inc., was charged with eight counts of mail fraud and three counts of wire fraud in an 11-count indictment returned by a federal grand jury yesterday and announced today.
Webb, 68, of Dallas and formerly of Arlington Heights, will be arraigned on a date to be determined in U.S. District Court in Chicago.
The indictment also seeks forfeiture of more than $9 million in alleged fraud proceeds.
According to the indictment, between 2007 and October 2013, Webb and InfrAegis obtained more than $9 million from investors through offering and selling stock in the company by making false representations about the solvency and financial condition of InfrAegis, the contracts that it expected to be awarded or had been awarded, and the expected and actual returns on investments in the company. Webb formed InfrAegis in 2003 under the name Intelagents, Inc., and changed its name to InfrAegis in 2005.
Webb allegedly knew that stock-offering materials falsely portrayed InfrAegis as a financially successful company that had both high-level connections in the homeland security market and lucrative contracts for the sale of its products. Between 2007 and 2010, Webb and InfrAegis falsely represented in written materials and investor conference calls that the City of Chicago had agreed to install InfrAegis’ iaMedium ― a kiosk that purportedly could detect the presence of nuclear or biological weapons ― throughout the city and the agreement would result in profits of more than $80 million a year, the indictment alleges. While InfrAegis engaged in some discussions with the city about the installation of iaMediums in 2007 and 2008, there was never any agreement or contract to install the system in Chicago.
In 2009 and 2010, Webb and InfrAegis allegedly falsely represented that the company had a contract with the Washington Metropolitan Area Transit Authority (WMATA) to install iaMediums throughout the Washington, D.C., Metro train system. Again, there was never any agreement or contract beyond initial negotiations, which were terminated when WMATA determined that InfrAegis was not financially responsible.
The indictment alleges that Webb and InfrAegis concealed material facts from prospective and existing investors by failing to disclose that in 2007 and again in 2008, the Illinois Secretary of State’s Securities Department issued orders prohibiting Webb and InfrAegis from selling securities in or from Illinois until further order. Those orders were not lifted until June 2010, when Webb and InfrAegis entered into an agreement with the state requiring them to comply with state securities laws in the offer and sale of securities.
Each count of mail and wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, and restitution is mandatory. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The government is being represented by Assistant U.S. Attorneys Margaret Schneider and Kruti Trivedi.
The U.S. Securities and Exchange Commission filed a civil enforcement action against Webb and InfrAegis in 2011 in Federal Court in Chicago.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Oakland Resident Charged in Identity Theft SchemeRead the Press Release
OAKLAND – Robert Thomas Doyle made his initial appearance today in federal court on charges of mail fraud, wire fraud, and aggravated identity theft, announced United States Attorney Melinda Haag and IRS-CI Special Agent in Charge José M. Martinez.
According to the indictment, from about January 15, 2013, to March 28, 2013, Doyle, of Oakland, knowingly and intentionally devised a scheme to obtain money by false and fraudulent pretenses by preparing and filing false federal income tax returns with the IRS. The tax returns contained materially false representations, including filing status, dependents, income, and credits.
As part of the scheme, Doyle allegedly obtained the identification of individual taxpayers through illegal means or by agreement. He recorded the names and personal identifying information used in the scheme on spreadsheets and electronically filed false federal income tax returns using those identities. He also requested refunds from the IRS to which the taxpayers listed on the tax returns were not entitled. According to the indictment, Doyle also requested that the IRS transmit the fraudulent refunds in a manner that ensured he would be able to exercise control over the refunds.
Doyle is charged with filing eight tax returns claiming refunds totaling $29,364. He made his initial appearance this morning before the Honorable Kandis A Westmore, United States Magistrate Judge in Oakland and was released on a 50K bond. Doyle is scheduled to appear next on March 6, 2014, at 9:30 a.m. in front of Judge Westmore.
The maximum statutory penalty for each count of mail fraud and wire fraud, in violation of Title 18, U.S.C § 1341 and 1343, is 20 years in prison and a fine of $250,000. The maximum penalty for aggravated identity theft, in violation of Title 18, U.S.C § 1028A, is two years in prison, consecutive to the underlying felony and a fine of $250,000.
Assistant US Attorney Thomas Moore is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Please note that a criminal complaint contains only allegations against an individual and, as with all defendants, Robert Thomas Doyle, must be presumed innocent unless and until proven guilty.
(Doyle indictment )
Northern Arapaho Man Sentenced for Second DegreeRead the Press Release
U.S. Attorney Christopher A. Crofts announced today that on February 25, 2014, Dean Moss, a 26-year-old enrolled Northern Arapaho man from Arapahoe, Wyoming, was sentenced by United States District Judge Scott W. Skavdahl for second degree murder. Moss received 204 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100 special assessment. The charges stemmed from the stabbing death of Dwight Spoonhunter on June 9, 2013, on the Wind River Indian Reservation. The case was investigated by the Federal Bureau of Investigation with substantial assistance of the Bureau of Indian Affairs.
Niagara Falls Contractor Pleads Guilty to Conspiring the Defraud HUDRead the Press Release
Buffalo, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Walter Heinrich Weiss, 61, of Niagara Falls, N.Y., pleaded guilty before U.S. District Judge Richard J. Arcara, to conspiring to make a false statement in a U.S. Department of Housing and Urban Development (HUD) transaction. The charge carries a maximum penalty of one year in prison, a fine of $100,000.00 or both.
First Assistant U.S. Attorney James P. Kennedy, Jr., who is handling the case, stated that the defendant was an employee of John Gross at David Gross Contracting, (DGC) Inc. On March 24, 2009, there was a significant water main break during which approximately 750,000 gallons of water flooded several streets in the City of Niagara Falls. Following the flood, the Niagara Falls Department of Community Development (NFDCD) began notifying residents and home owners in the area affected by the flooding of the types of damage for which they may be allowed to receive grant funds to cover the cost of the repairs. Because the water damage repairs were deemed emergency repairs, NFDCD instructed affected residents and home owners to obtain bids from more than one contractor for the repairs.
One of the affected homes was flooded with approximately four feet of water and sustained significant damage. That resident contacted DGC for an estimate, and in addition to submitting their own successful bid for the repair work on the resident’s home, DGC also submitted, unbeknownst to the homeowner, a false and fraudulent bid for such repairs purporting to be from a DGC competitor. Such a bid was more expensive than that submitted by DGC and was submitted by DGC to the NFDCD with an intention to manipulate and defraud the grant program. DGC ultimately received the job and was paid $2,545.00 in NFDCD funds. The United States Department of Housing and Urban Development (HUD) provided funds to the NFDCD to cover emergency repairs caused by the water main break.
First Assistant U.S. Attorney Kennedy stated that it was part of the conspiracy that DGC would maintain, within their offices, and on their computers, blank letterhead for various companies which were its’ competitors. The defendant knew and agreed that such documents would from time to time be used by employees of DGC, in order to prepare false and fraudulent bids for certain jobs by DGC as part of any competitive bidding process. Included amongst those fraudulent bids, was a bid for repairs for water damages for the resident previously mentioned.
Sentencing is scheduled for June 23, 2014, at 12:30 p.m. before Judge Arcara.
The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, and the Internal Revenue Service, Criminal Investigation Division, under the direction of Toni Weirauch, Special Agent-in-Charge.Neosho Man Pleads Guilty to Embezzling $4.9 Million from his EmployerRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Neosho, Mo., man pleaded guilty in federal court today to stealing more than $4.9 million from his employer.
David VanWinkle, 60, of Neosho, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to wire fraud, money laundering and failure to pay taxes.
VanWinkle was the comptroller for Frontier Leasing Incorporated (FLI) in Joplin, Mo. By pleading guilty today, VanWinkle admitted that he stole $4,911,621 from FLI between June 2008 and December 2013, which he spent on personal expenses and gambling.
Based on a report from a financial institution, federal agents began investigating unusual deposits VanWinkle made into his business accounts for two businesses, VanWinkle Accounting and VanWinkle Farms.
VanWinkle, acting as the comptroller for FLI, received payments from FLI’s customers in the form of checks. VanWinkle deposited some of those checks into FLI’s legitimate business accounts, but deposited other checks into another checking account under the name of FLI that VanWinkle had opened at another bank. VanWinkle was the sole person on this secret account; no one else was aware that FLI had the account and VanWinkle was not authorized to open an account or deposit any of FLI’s customer payment checks into the account.
VanWinkle admitted that he withdrew money from the secret bank account to deposit into his business accounts. The embezzled money was then spent on VanWinkle’s personal and gambling expenses.
According to the indictment, VanWinkle failed to report the embezzled funds from FLI on his personal income tax returns he filed with the Internal Revenue Service for the years 2008, 2009 and 2010. VanWinkle did not file income tax returns for the years 2011 and 2012, the indictment says, and therefore did not report the embezzled funds during these years, either.
In addition, VanWinkle was responsible for collecting payroll taxes for FLI and paying over those payroll taxes to the IRS. VanWinkle withheld those taxes but failed to turn them over to the IRS. VanWinkle admitted that he collected, but failed to pay over, a total of $435,896 in federal tax, Social Security and FICA withheld from FLI employees’ paychecks.
Under the terms of today’s plea agreement, VanWinkle must forfeit to the government $4,911,621, a 2013 Holland tractor, a 2007 Hummer H3, a 2012 John Deere no-till seed drill, and $28,086 that was seized from various bank accounts.
Under federal statutes, VanWinkle is subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $750,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and IRS-Criminal Investigation.Navajo Man from Chi-Chi-Tah, N.M., Pleads Guilty to Assaulting Intimate PartnerRead the Press Release
ALBUQUERQUE – Mark Patrick Eddy, 45, an enrolled member of the Navajo Nation who resides in Chi-Chi-Tah, N.M., pleaded guilty this morning to a felony information charging him with assault resulting in serious bodily injury, announced Acting U.S. Attorney Steven C. Yarbrough and Director John Billison of the Navajo Nation Division of Public Safety.
Eddy was arrested on Jan. 14, 2014, on a criminal complaint charging him with assault with a dangerous weapon and assault resulting in serious bodily injury. According to the indictment, Eddy assaulted his girlfriend, a Navajo woman, on June 21, 2013, at a residence located on the Navajo Indian Reservation. According to the criminal complaint, Eddy kicked the victim in the head with his cowboy boots causing a laceration to the right temple of the victim’s head that required medical attention.
Today, Eddy admitted assaulting the victim, his intimate partner, by throwing her to the ground and kicking her in the head causing a laceration that required medical attention.Eddy 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, Eddy will be sentenced to a year and a day in federal prison followed by a term of supervised release to be determined by the court.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety and is being prosecuted by Special Assistant U.S. Attorney David Adams. The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Montana Wire Fraud Defendant Jonathan Lee Oliver Pleads Guilty in Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on February 25, 2014, before U.S. District Judge Donald W. Molloy, JONATHAN LEE OLIVER, 41, of Missoula, Montana, pleaded guilty to Wire Fraud, Money Laundering, and Structuring. Oliver's pleas could result in a term of imprisonment of up to 20 years. There is no parole in the federal system.
In an Offer of Proof filed with the Court, Assistant U.S. Attorney Timothy Racicot informed the Court that during the fall of 2010, Oliver, often using the name Jon Walker, began soliciting payments from several victims for the construction of steel buildings, primarily in eastern Montana and North and South Dakota. He rented office and warehouse space in Missoula in October 2010. He entered into contracts with the victims, received millions of dollars in advance payments, and completed only one building. Rather than build the structures, Oliver used a substantial amount of the victims' money to buy personal assets, including a house, a truck, an RV, snowmobiles, a jet-ski, an ATV, and a diamond ring for his fiancé. On more than occasion, Oliver directed his employees to tell victims that a certain phase of the construction of their building was completed in order to induce the victim to send Oliver another installment payment, when in fact the phase had not been completed and Oliver's business lacked the materials necessary to complete the project because so many of the funds had been spent by Oliver on personal items, including those referenced above.
Oliver's wire fraud conviction involves the wire transfer of $69,498 from one victim to Oliver on August 26, 2011. That victim later wrote Oliver a check for $40,000 and wired an additional $23,350, but never received a completed building. The money laundering conviction relates to Oliver's purchase of a brand-new car on April 12, 2011, for $33,950 - a 2011 Subaru Tribeca Limited - using money obtained from victims as a result of the wire fraud scheme. And the structuring conviction is represented by Oliver's withdrawal of $9,950 in cash from his Wells Fargo Bank account on May 20, 2011, which was designed to avoid the Bank's currency transaction reporting requirements.
This case was investigated by agents from the Federal Bureau of Investigation and the Internal Revenue Service.
Medway Man Convicted of Fraud and Collecting Section 8 Housing FundsRead the Press Release
BOSTON – A Dominican national living in Medway was convicted yesterday of fraudulently receiving more than $120,000 in federal housing funds.
Samuel Stalin Lebreault Feliz, a/k/a Antonio Jose Rodriguez Rodriguez, was convicted following a four-day jury trial of two counts of passport fraud, false representations to the Social Security Administration, and theft of public money. U.S. District Judge Denise J. Casper scheduled sentencing for May 29, 2014.
In November 2003, Feliz submitted an application for a U.S. passport at the U.S. Embassy in Caracas, Venezuela, representing himself to be Juan Antonio Castro Pizarro, an individual born in San Juan, Puerto Rico and, therefore, a U.S. citizen. Feliz claimed that he had lost his travel documents while traveling abroad and wanted to return to Massachusetts where he lived. Feliz succeeded in deceiving embassy officials and was issued a passport in the name of Juan Antonio Castro Pizarro.
After arriving at Miami International Airport, Feliz attempted to use the issued passport and was held for further questioning during which Feliz claimed that he was not Juan Antonio Castro Pizarro, but rather Antonio Jose Rodriguez Rodriguez, a Venezuelan citizen seeking political asylum. Feliz’s application for political asylum was eventually denied, but he was not deported from the United States at that time because while his application was pending he married a U.S. citizen. He later claimed to be the victim of abuse by his wife, and petitioned the government under a special program for victims of domestic violence to be able to stay in the United States.
From March 2007 through September 2013, Feliz, using the false name of Antonio Jose Rodriguez Rodriguez, applied for and received over $120,000 in funds from the U.S. Department of Housing and Urban Development’s Section 8 program. The Section 8 program is a federal program that provides rent and utility money to low income lawful residents.A subsequent investigation revealed that Feliz assumed the identity of the true Juan Antonio Castro Pizarro and later concocted the identity of Antonio Jose Rodriguez Rodriguez from Venezuela. Feliz’s true identity is Samuel Stalin Lebreault Feliz, a citizen of the Dominican Republic with no legal status in the United States.
The statutory maximum penalty for passport fraud and theft of public money, respectively, is 10 years in prison, three years of supervised release and a fine of up to $250,000 on each count. The statutory maximum penalty for making a false representation to the Social Security Administration is five years in prison, three years of supervised release and a fine of up to $250,000.
United States Attorney Carmen M. Ortiz; David W. Hall, Special Agent in Charge of the U.S. Bureau of Diplomatic Security, Boston Field Office; Scott Antolik, Special Agent in Charge of the U.S. Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Office; and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Regional Office, made the announcement. The case is being prosecuted by Assistant U.S. Attorneys Carlos A. López and David G. Tobin of Ortiz’s Major Crimes Unit.
Massachusetts Dentist Charged with Tax EvasionRead the Press Release
A federal grand jury in Boston has indicted George Fenzell for tax evasion and corruptly endeavoring to obstruct the Internal Revenue Service (IRS), the Justice Department and the IRS announced today following the unsealing of the indictment. Fenzell, of Douglas, Mass., is a practicing dentist with offices in Shrewsbury, Mass., and Brookline, N.H.
According to the indictment, from 1999 through 2012, Fenzell engaged in conduct intended to obstruct the IRS from computing, assessing and collecting his income taxes. He stopped filing timely tax returns and allegedly tried to conceal his dental practice income in a variety of ways. The indictment alleges that Fenzell used nominee entities, including River Valley Dental and Brookline Dental Associates Trust, to conceal his dental practice receipts. The indictment also alleges that he used multiple bank accounts in three separate states, including commingled accounts maintained by third parties, to conceal his ownership of funds. According to the indictment, Fenzell used nominees as trustees to make it appear as though other individuals owned and controlled his assets and income. Finally, Fenzell allegedly falsified his delinquent 2006 and 2007 tax returns and made extensive use of cash in order to conceal his fraud.
The indictment further alleges that in 2007, Fenzell, prompted in part by a Massachusetts Department of Revenue investigation, filed delinquent federal tax returns for tax years 2000 through 2005. Those returns allegedly reported that he owed approximately $129,000 in federal income taxes for these years, which resulted in a total of more than $300,000 including interest and penalties. According to the indictment, between 2007 and 2012, Fenzell allegedly sought to evade IRS collection by making his business receipts payable to nominee entities and by using nominee bank accounts in Florida and Rhode Island to divert and hide collectible income and assets. The indictment also alleges that Fenzell failed to file his 2008 through 2011 tax returns at that time required by law, and used nominee entities and accounts in an effort to evade his taxes.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. If convicted, Fenzell faces a statutory maximum potential sentence of five years in prison for each count of tax evasion and a statutory maximum potential sentence of three years in prison for the count of corruptly endeavoring to obstruct the IRS.
This case was investigated by IRS-Criminal Investigation Special Agents. It is being prosecuted by Assistant Chief John N. Kane Jr. and Trial Attorney Robert Kennedy of the Tax Division.
Los Estados Unidos Llegan a un Acuerdo Conciliatorio con las Escuelas Públicas de Stamford para Garantizar Igualdad de Oportunidades para Estudiantes Aprendices del Idioma InglésRead the Press Release
WASHINGTON – El Departamento de Justicia de los EE.UU. y la Fiscalía Federal para el Distrito de Connecticut anunciaron que realizaron un acuerdo conciliatorio integral con el Distrito Escolar Público de Stamford en Stamford, Conn., que exige que el distrito ofrezca servicios idiomáticos y otros tipos de apoyo a más de 2,000 estudiantes Aprendices del Idioma Inglés [English Language Learner (ELL)] inscritos en las 20 escuelas del distrito. El acuerdo surge de la revisión de cumplimiento por parte de los Estados Unidos del programa de ELL del distrito bajo la Ley de Igualdad de Oportunidades Educativas de 1974.
El acuerdo requiere que el distrito implemente medidas de amplio alcance para asegurar que los estudiantes ELL tengan igualdad de oportunidades de tener éxito académico en sus programas educativos, comenzando con la identificación y colocación correctas de estudiantes ELL cuando se inscriben en el sistema. Entre otros requisitos, el acuerdo exige que el distrito: ofrezca servicios de aprendizaje del idioma a todos los estudiantes ELL hasta que cumplan con los criterios de conocimientos del inglés del estado; se asegure de que los maestros de estudiantes ELL estén cualificados para brindar estos servicios; obtenga materiales adecuados para estudiantes ELL; monitoree a los estudiantes después de que salgan de los servicios para ELL para asegurarse de que estén participando en las clases de educación general de manera significativa y equitativa; y ponga a disponibilidad de estudiantes ELL con discapacidades servicios idiomáticos adecuados.
"Hoy, las Escuelas Públicas de Stamford tomaron un paso significativo para garantizar el éxito de todos los estudiantes desde el comienzo de su carrera escolar en el distrito", dijo la Secretaria de Justicia Auxiliar Interina de la División de Derechos Civiles Jocelyn Samuels. "Una implementación fiel de este acuerdo conciliatorio asegurará que los estudiantes ELL, al igual que todos los estudiantes del distrito, tengan acceso a maestros cualificados, una enseñanza diseñada para impartir las destrezas necesarias del idioma inglés y recursos dedicados para satisfacer las necesidades particulares de aprendizaje de los estudiantes ELL. Felicitamos al distrito escolar por trabajar en colaboración con los Estados Unidos para desarrollar el plan integral reflejado en este acuerdo".
"Al firmar este acuerdo, el sistema escolar público de Stamford reafirmó su misión de brindarles a todos los niños igualdad de oportunidades para convertirse en ciudadanos productivos, sin importar si tienen conocimientos avanzados de inglés", dijo la Fiscal Federal Deirdre M. Daly del Distrito de Connecticut. "Este acuerdo conciliatorio crea un mapa a seguir para todas las escuelas de Connecticut que ofrece un plan integral para servir eficazmente a todos los estudiantes que todavía no tienen conocimientos avanzados de inglés. Agradecemos a Stamford por trabajar con el Departamento de Justicia para lograr este resultado positivo y esperanzador".
La coacción de la Ley de Igualdad de Oportunidades Educativas es una de las principales prioridades de la División de Derechos Civiles. Existe información adicional sobre la División de Derechos Civiles en el portal de la división website.
Local Woman Pleads Guilty to Sex Trafficking of ChildrenRead the Press Release
Saipan, CNMI – Annette Nakatsukas Basa, age 40, pleaded guilty on February 27, 2014, to sex trafficking of children. The guilty plea was announced by United States Attorney for the Districts of Guam and the Northern Mariana Islands Alicia A.G. Limtiaco. According to the plea agreement, Basa knowingly recruited, maintained, transported and provided a minor female for commercial sex acts. Basa used her cell phone to arrange meetings between adult males and the minor female and then drove the minor to meeting locations for the purpose of having those adult males engage in sex acts with the minor. Basa received money and methamphetamine in exchange for sex acts between those adult males and the minor female.
In July 2013, the CNMI Department of Public Safety received a video file from an anonymous source depicting an adult male and a minor female engaging in sexually explicit conduct. The minor was later identified. An investigation revealed that Basa had provided the minor female to the adult male for sex in exchange for methamphetamine. Basa was arrested on a complaint on August 14, 2013. On August 22, 2013, a federal grand jury returned an indictment against Basa charging her with two counts of sex trafficking of children in violation of 18 U.S.C. § 1591(a)(1).
Basa faces a minimum mandatory sentence of 10 years and a maximum of life in prison. Chief District Judge Ramona V. Manglona scheduled sentencing for June 6, 2014, at 9:00 a.m.
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. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
United States Attorney Alicia A.G. Limtiaco commended the FBI and the CNMI Department of Public Safety for their assistance in the investigation. The case was prosecuted by Assistant U.S. Attorneys Rami S. Badawy and Ross K. Naughton.
Leaders of Expansive Anderson County Based Methamphetamine Manufacturing Conspiracy Sentenced to Lengthy Prison TermsRead the Press Release
Lawrence “Stoney” Scriver sentenced to 30 years in prison
Jeffrey Scott Braden sentenced to minimum mandatory life sentence
KNOXVILLE, Tenn.—On Feb. 28, 2014, Lawrence “Stoney” Scriver, 46, of Lake City, Tenn., was sentenced to serve 30 years in prison by the Honorable Thomas A. Varlan, Chief U.S. District Judge. Scriver pleaded guilty in July 2013, to a federal grand jury indictment charging him with one count of conspiracy to manufacture 50 grams or more of methamphetamine and one count of distributing methamphetamine, aided and abetted by others. Scriver’s prior felony state drug conviction triggered a minimum mandatory 20 year sentence under federal sentencing laws. However, Chief Judge Varlan enhanced Scriver’s mandatory minimum sentence, based on the finding that Scriver was the leader of the conspiracy that produced approximately 1500 grams of methamphetamine over the course of the conspiracy.
On Feb. 27, 2014, Jeffrey Scott Braden, 37, of Vowell Mountain, Tenn. was sentenced to a mandatory life sentence by the Honorable Thomas A. Varlan, Chief U.S. District Judge. After a trial in U.S. District Court, Braden was convicted as charged in September 2013. The jury found Braden guilty of one count of conspiracy to manufacture 50 grams or more of methamphetamine, one count of possessing materials, chemicals, and equipment used to manufacture methamphetamine, and one count of possession of ammunition by a convicted felon. Braden’s six prior felony state drug convictions triggered a minimum mandatory life sentence with no possibility of parole under federal sentencing laws.
The indictment, which charged 42 people with methamphetamine manufacturing crimes, and subsequent convictions of Scriver and Braden, was the result of “Operation Meth-odical Destruction,” which was a joint investigation between the Drug Enforcement Administration, Tennessee Bureau of Investigation, Tennessee Methamphetamine and Pharmaceutical Drug Task Force, Anderson County Sheriff’s Office, Knox County Sheriff’s Office, Knoxville Police Department, Oak Ridge Police department, Seventh Judicial Crime Task Force, and Clinton Police Department. Since March 21, 2013, 41 of the 42 charged defendants have been convicted. Assistant United States Attorney David P. Lewen, Jr. represented the United States.
Last Member of Violent Take-Over Style Bank Robbery Crew SentencedRead the Press Release
The final defendant of a violent bank robbery team was sentenced today in U.S. District Court in Seattle, announced U.S. Attorney Jenny A. Durkan. In all, seven defendants have entered guilty pleas and been sentenced for their roles in the string of bank robberies. CHARLES A. WILLIAMS, 40, of Los Angeles, was sentenced today to eight years in prison and three years of supervised release. JEANINE M. DANIELS, 32, of Los Angeles, California, was sentenced yesterday to five years in prison and three years of supervised release. Three other defendants from Los Angeles were sentenced earlier this year: KEVIN L. BROWN, 38, was sentenced to 16 years in prison; CURTIS W. SMITH, 22, was sentenced to 37 months in prison; and DOUGLAS L. SMITH, 22, was sentenced to 51 months in prison. JANALISA ESTRADA, 33, of Hollywood, California was sentenced to four years in prison and ANTHONY V. MOSLEY, 46, of Tacoma, Washington was sentenced to 13 years in prison. U. S. District Judge Richard A. Jones imposed the sentences.
“This was a sophisticated crew of interstate robbers who terrorized bank employees and customers. They thought they could escape justice, but were badly mistaken,” said U.S. Attorney Jenny A. Durkan. “I commend the FBI’s South Sound Gang Task Force for their leadership in tracking the group and bringing them to justice.”
According to records filed in the case, various members of the seven member ring participated in one or more of a string of takeover-style bank robberies in Washington, Ohio, Michigan and Colorado. During the robberies, subjects entered the banks in groups, covered head to toe in loose clothing and gloves, and demanded money while jumping over teller counters. The four robberies in Washington were: the May 25, 2012 robbery of a Wells Fargo branch on Pacific Avenue South in Tacoma; the September 6, 2012, robbery of a U.S. Bank Branch on Bridgeport Way in Lakewood; the October 22, 2012, robbery of a Wells Fargo Bank branch on Lake City Way in Seattle; and the December 20, 2012, robbery of a Wells Fargo Bank branch on 132nd Avenue NE in Kirkland. In their plea agreements, various members of the gang pleaded guilty to different robberies in Saline, Ypsilanti, Ann Arbor, Temperance, and Jackson, Michigan, and Toledo, Ohio.
“These brazen criminals didn’t think they’d be caught, as none ever do,” said Acting Special Agent in Charge W. Jay Abbott of the FBI Seattle field office. “The resolution of this investigation tells others like them that they’re wrong; the FBI and its law enforcement partners will doggedly pursue you, and prosecutors will ensure you face justice for your actions. The South Sound Gang Task Force is committed to combating gang violence in all its forms, and it will continue to combine the skills of multiple law enforcement agencies for that mission.”
The South Sound Gang Task Force (SSGTF) in Washington arrested five of the subjects on December 22, 2012 on state bank robbery charges. The SSGTF arrested the subjects as they prepared to board a Greyhound bus to Los Angeles, California. Investigators were waiting at the bus station, based upon information that the group frequently traveled to Los Angeles by Greyhound bus within days of a bank robbery.
The Tacoma, Washington-based SSGTF investigated the robberies in Washington state in partnership with the Lakewood Police Department’s Gang Unit and the FBI Seattle Safe Streets Task Force. The SSGTF is composed of members of the FBI Seattle Division, Lakewood and Tacoma Police Departments, the Washington State Patrol, the Washington State Department of Corrections, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). FBI entities nationwide collaborated in the investigation, including the Los Angeles Field Office and the Ann Arbor, Denver, and Toledo Resident Agencies.
The case was prosecuted by Assistant United States Attorneys Mike Dion and Kate Crisham.
Kelso Man Sentenced to 25 Years in Prison for Production of Child PornographyRead the Press Release
A 38-year-old Kelso, Washington man was sentenced today to 25 years in prison for production of child pornography, possession of child pornography and distribution of child pornography, announced U.S. Attorney Jenny A. Durkan. JONATHAN SCOTT LEE was arrested in October 2012, after he sent images of child pornography to an undercover officer working in New Zealand. LEE thought he was communicating with someone who could provide him additional images of child pornography. Law enforcement was able to trace the photos to LEE and his camera. They seized his computer and other media storage devices at his Kelso home. Analysis revealed thousands of images and videos of child pornography on his computer, an external hard drive, and his smartphone. He pleaded guilty in September 2013 to taking the sexually explicit images of an 11-year-girl. LEE is required to register as a sex offender and will be on supervised release for the rest of his life following his prison term.
At the sentencing hearing U.S. District Judge Ronald B. Leighton said “the production of child pornography is a despicable activity. Exploiting children is the lowest form of cruelty I can imagine.”
“The production of child pornography—coupled with the physical sexual abuse of children—is a heinous crime with devastating, lifelong impacts on its victims,” said U.S. Attorney Jenny A. Durkan. “Distributing the photos of these children being molested further victimizes them and warrants this significant prison sentence.”
According to records filed in the case, investigators were able to identify three young victims involved in LEE’s production of child pornography. Other images that he possessed were those of victims already identified by the National Center for Missing and Exploited Children (NCMEC).
“Not only did the defendant abuse children, he shared his exploitation with predators around the world,” said Brad Bench, special agent in charge of Homeland Security Investigations in Seattle. “HSI places a high priority on combating this despicable crime, not only to identify and rescue child victims, but to stop their re-victimization by individuals who view and distribute Internet child pornography.”
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigation (HSI) and by the Kelso Police Department. The case was prosecuted by Assistant United States Attorney Marci Ellsworth.
Justice Department Releases New Planning Tool to Help Courts Provide Access to Limited English Proficient IndividualsRead the Press Release
Today, the Justice Department released a new tool to help state and local courts assess and improve their language assistance services for limited English proficient (LEP) litigants, victims and witnesses who need access to court services.
With over 25 million LEP persons in the United States, the Language Access Planning and Technical Assistance Tool for Courts (Planning Tool) will be able to assist courthouses and administrative tribunals across the country to self-assess their court systems to determine how effectively they are providing language assistance services and how these services can be improved. The Planning Tool prompts courts to examine their court rules, the quality and competency of interpretation and translation, the level of their engagement with LEP communities and the implementation of language access plans. Courts also are encouraged to modify this tool for the particular needs and features of their court and court system.
The tool was created by the Federal Coordination and Compliance Section (FCS) of the Civil Rights Division. FCS enforces Title VI of the Civil Rights Act of 1964, under which it is illegal for federally assisted programs and activities to discriminate on the basis of national origin, which includes the failure to provide meaningful language access. The Planning Tool gives courts a tailored checklist of recommended steps towards achieving equal access to justice for all.
“Providing meaningful access to court systems and proceedings is not only required by law, it is the right thing to do and it is in the best interests of the judicial system,” said Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels. “When language barriers remain in place, limited English proficient individuals are not provided a meaningful opportunity to participate in important matters, and the results can be catastrophic, which is why this Planning Tool is such a vital instrument for our judicial system.”
The Planning Tool was previously released for public comment and received numerous recommendations from individuals and organizations representing judges, court staff, attorneys, advocates and community groups, which have been incorporated into the final version. For further information, please visit the Federal Coordination and Compliance website . For additional LEP-related resources, please go to the Federal Interagency LEP website .
Jury Finds Lumberton Karate Instructor Guilty of Child Pornography ViolationsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas - A federal jury has convicted a 60-year-old Lumberton, Texas man of child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Ronald Seabridge, Sr., owner of Brass Dragon Karate, was found guilty on Feb. 27, 2014, of receiving, distributing and possessing child pornography following a four-day trial before U.S. District Judge Thad Heartfield.
According to information presented in court, in 2009, federal agents executed a search warrant at Seabridge’s residence/karate studio in Lumberton as the result of an undercover operation which determined Seabridge was using a peer-to-peer file sharing program to receive and distribute child pornography. Seabridge’s computer and hard drives were seized and a forensic examination revealed over 300 images of child pornography.
Seabridge was indicted by a federal grand jury on May 23, 2013.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Seabridge faces a minimum of five years and up to 20 five years in federal prison for receiving and distributing child pornography and up to 10 years in federal prison for the possession charge. A sentencing date has not been set. Seabridge was remanded to the custody of the U.S. Marshal immediately following the verdict.
####
The case was investigated by the Federal Bureau of Investigation, the Lumberton Police Department, the Jefferson County Sheriff’s Office, and the Orange County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorneys Randall L. Fluke and Christopher T. Tortorice.Jury Convicts Three KC-area Men for Nearly $1 Million Conspiracy to Steal Trucks and Trailers, CargoRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that three Kansas City, Mo., area men were convicted in federal court today for their roles in a conspiracy to steal nearly $1 million worth of trucks and trailers and their cargo.
Kenneth Ray Borders, 43, of Kansas City, Mo., Jon Dirk Dickerson, 56, of Raytown, Mo., and his son, Kyle Wayne Dickerson, 31, of Holden, Mo., were found guilty of the charges contained in a Dec. 14, 2012, federal indictment. They were taken into federal custody immediately after the verdicts were returned by the jury.
Evidence presented during the trial indicated that all three of the co-defendants participated in a conspiracy that involved the theft of commercial trucks and trailers and their cargo in Missouri, Kansas, Florida, Arkansas, Oklahoma, and Nebraska. They worked together to steal trucks, trailers, and cargo and then dispose of them. Sometimes they used the trucks and trailers themselves to make money by hauling loads for customers and sometimes they sold the stolen trucks and trailers.
The conspiracy involved the thefts of five Freightliner trucks and 17 trailers between 2005 and 2011. The stolen trailers included refrigerated trailers containing such cargo as 39,000 pounds of meat, 565 boxes of beef valued at $149,790, $125,000 worth of frozen ribs, and several refrigerated trailers that each contained tens of thousands of dollars’ worth of frozen chicken, including a load of frozen chicken wings valued at $59,706. Also stolen were utility trailers containing such cargo as Budweiser beer valued at $16,657, Nike shoes valued at $217,353 and 21,018 pounds of Little Sizzler sausages.
Stolen cargo was sold cheaply to anyone who would buy it. Some of the cargo was sold out of the back of the trailer; some of it was sold to a tow truck driver or a convenience store operator to resell. For example, co-defendant Myron Piggie, 52, of Kansas City, Mo., earlier pleaded guilty to possessing stolen property. Piggie admitted that he accepted 12 pallets of stolen Budweiser beer products (valued at approximately $7,566). Piggie agreed to sell the beer at his store, MP Convenience Store in Kansas City, and split the profits with conspirators. However, he learned that the police were aware he had the stolen beer. Because he did not want to be found to be in the possession of the stolen beer, Piggie gave it all away, selling little or none of it.
Borders was involved in stealing the trucks, trailers, and cargo. He sold the cargo to others to resell, sometimes fronting the money by allowing his “customer” to pay him after they sold the product. Borders used some of the stolen trucks and trailers himself to make money by delivering cargo.
Jon Dickerson often had the first right to purchase stolen trucks and trailers. In fact, Borders actually had a “shopping list” from Dickerson listing the trucks and trailers that he wanted, so that Borders could keep an eye out for them and steal them if the opportunity presented itself.
Jon Dickerson and his son, Kyle Dickerson, also were involved in stealing trucks and trailers. They used them in their own trucking business, sometimes just for replacement parts with the remains sold for scrap. Kyle Dickerson had the tools, ability, and willingness to disguise the stolen nature of the trucks and trailers by altering their Vehicle Identification Numbers (VINs) so that they could be used in their trucking business without alerting authorities when they were stopped or inspected.
The Dickersons reduced their costs of doing business by stealing trucks and trailers themselves, or by buying stolen trucks and trailers from Borders, at a fraction of their fair market value. Since they had little financial investment in the stolen trucks and trailers, and knew that they had a readily-available and cheap supply of stolen trucks and trailers, they had little incentive to maintain and repair their fleet. As a result, their fleet wore out and had safety issues, such as problems with brakes and tires. When their fleet wore out, they simply replaced them with more stolen trucks and trailers.
The Dickersons did not bother to maintain and repair their trucks and trailers but continued to operate them in interstate commerce. As a result, DOT/FMCSA and other law enforcement repeatedly cited their company and drivers for failing inspections and violating regulations. The company's compliance reviews led to unsatisfactory safety ratings which led to a total of $450,000 in fines and numerous “out of service orders” directing them to cease operating in interstate commerce. The Dickersons just ignored the orders and the fines.
At a DOT roadside inspection, a Dickerson truck, trailer, or cargo could be delayed, or even impounded, if their poor record or condition prompted too many questions. The Dickersons’ scheme, however, included a way to downplay this risk. The Dickersons operated what is known in the industry as “chameleon carriers.” They simply abandoned their old company – along with its "baggage" of safety violations, “out of service” orders, and unpaid fines – and began operating with a new company under a new name. Thus, after Jon Dickerson’s company Fish and More was subject to more than $150,000 in fines and four orders to cease interstate transportation, he began operating under the name D&T Trucking. After D&T Trucking was subject to nearly $300,000 in fines and 17 orders to cease interstate transportation, the United States obtained a civil injunction and default judgment, and D&T Trucking was permanently enjoined from operating in interstate commerce. At that point, Kyle Dickerson got a DOT number for Night Line Trucking and Repair. Night Line Trucking and Repair received an unsatisfactory safety rating and an order to cease interstate transportation. The Dickersons then started operating under the name Nightline Trucking, LLC.
In addition to Piggie, co-defendants Christopher Dwight Turner, 45, and Michael O’Neal Foster, 55, both of Kansas City, Mo., pleaded guilty to receiving stolen goods. Turner admitted that he received approximately $386,932 worth of stolen meat. Foster admitted that he received a stolen Freightliner Classic XL truck, which he and others drove out of Missouri to both California and Indiana. Foster used it in his business, Kembeh Transportation.
In two separate, but related, cases, Jaccard Fears,46, of Raymore, Mo., and Roy Lynn Parvin, 54, of Kansas City, Mo., have also pleaded guilty to their roles in the conspiracy. Fears was employed by the trucking businesses operated by the co-conspirators. He was paid by Borders and Foster to remove emblems, decals, and other ownership information from stolen trucks and replace them with emblems depicting they were owned by Kembeh Trucking (Foster's Company) and others. Parvin admitted that he purchased multiple loads of stolen property from Borders and Turner, including stolen meat, dog food, and appliances totaling more than $6,000. Parvin was also in possession of beef stolen in Nebraska and sausage stolen in Kansas.
In addition to the conspiracy, Borders was found guilty of four counts of aiding and abetting the possession of stolen goods, one count of aiding and abetting the transportation of stolen goods and one count of aiding and abetting the possession of stolen vehicles.
Jon Dickerson was also found guilty of three counts of aiding and abetting the possession of stolen goods and one count of aiding and abetting the possession of stolen vehicles.
Kyle Dickerson was also found guilty of one count of aiding and abetting the transportation of stolen vehicles, two counts of aiding and abetting the possession of stolen goods and one count of aiding and abetting the possession of stolen vehicles.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated over a three-day period before returning the verdicts, ending a trial that began February 18, 2014.
Under federal statutes, Borders is subject to a sentence of up to 65 years in federal prison without parole, plus a fine up to $1,750,000. Jon and Kyle Dickerson are each subject to a sentence of up to 45 years in federal prison without parole, plus a fine up to $1,250,000. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office. The court will determine forfeiture amounts at a later date.
This case is being prosecuted by Senior Litigation Counsel Gregg R. Coonrod and Assistant U.S. Attorney Cindi S. Woolery. It was investigated by the Department of Agriculture – Office of Inspector General, the FBI, the Kansas City, Mo., Police Department, the National Insurance Crime Bureau, the National White Collar Crime Center, the Mid-States Organized Crime Information Center, Travelers Investigative Services, the Missouri State Highway Patrol, the Florida State Highway Patrol, and the U.S. Department of Transportation, Federal Motor Carrier Safety Administration.Jury Convicts Poplar Man of Rape, Assault and BurglaryRead the Press Release
The United States Attorney's Office Announced that after having been acquitted in 2012 of sexual assault, and then again in 2013-in trials involving other victims-Poplar resident Kevin Devereaux was found guilty of rape, assault and burglary by a federal jury in Great Falls on Thursday, February 27, 2014, after a two day trial.
Devereaux, 51, was charged with raping a woman in Poplar in 2009, then assaulting and burglarizing her house in 2013.
Witnesses testified that in May 2009, the victim was sleeping on her sofa when Devereaux suddenly appeared, standing over her. He grabbed her arm, dragged her down the hallway, and raped her in a bedroom. He laughed then fled the house. Fearing retaliation from Devereaux, she recanted her story a few weeks later and the case was closed.
Over the course of the next few years, Devereaux returned on numerous occasions and made repeated attempts to break into the victim's house. The victim called the police several times to report his attempts to break in through a window, door or garage.
In October 2013, Devereaux successfully broke into the victim's house and attacked her while she was sleeping in a bedroom with her 7-year-old granddaughter. With the child in the room, Devereaux strangled the victim, repeatedly punched her in the face, and threated to kill her.
The U.S. Attorney's Office consolidated the 2009 and 2013 offenses in a single indictment for trial. Devereaux faces maximum thirty years in prison for the rape, twenty years for the burglary and ten years for the assault.
The investigation was a joint effort between the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice. Assistant United States Attorney Laura B. Weiss prosecuted the case.
Jury Convicts Mexican Resident Alien of Bringing Cocaine and Methamphetamine into U.S.Read the Press Release
BROWNSVILLE, Texas - Valentin Muniz-Saavedra, 44, residing in Brownsville, has been convicted of conspiracies to possess and import and possession with intent to distribute and import cocaine and methamphetamine, announced United States Attorney Kenneth Magidson. The jury deliberated for more than a day and convicted Muniz-Saavedra tonight of possession with intent to distribute 18 kilograms (39.6 pounds) of cocaine, possession with intent to distribute 5.5 kilograms (12.1 pounds) of methamphetamine as well as conspiracy to import cocaine and methamphetamine into the United States.
The charges arose from an inspection and seizure at the Gateway International Bridge Port of Entry in Brownsville where Muniz-Saavedra entered the United States as the driver of a mini-van. During inspection of this vehicle, agents discovered 18 kilograms of cocaine and 5.5 kilograms of methamphetamine hidden within the side quarter panels, firewall and roof. A total of 32 bundles were removed by inspectors.Muniz-Saavedra claimed to have no knowledge of the drugs but admitted to having picked up the van on the Mexican side of the bridge and was planning to drop it off to another individual immediately upon entering the U.S. Muniz-Saavedra also admitted to agents and inspectors that he lied about when he obtained the van, saying he had “borrowed it earlier in the day.”
Evidence at the four-day trial showed that upon further investigation by Homeland Security Investigations (HSI), it was determined Muniz-Saavedra had met earlier in the day at several different locations in Brownsville with other individuals associated with the mini-van. A Drug Enforcement Administration (DEA) agent testified the cocaine and methamphetamine was worth more than $500,000.
U.S. District Judge Hilda Tagle, who presided over trial, has set sentencing for June 2, 2014, at which time he faces a mandatory minimum of 10 years and up to life in federal prison as well as a $10 million fine for each of the counts of which he was convicted. He has been remanded to the custody pending that hearing.
This case was investigated by HSI with the assistance of DEA. Assistant United States Attorney Oscar Ponce is prosecuting.Jury Convicts Austin Lawyer in Relation to “Butch” Ballow Case and Stock Sale SchemeRead the Press Release
HOUSTON – Patrick Lanier, 65, of Austin, has been convicted on 16 counts to include one count of harboring and concealing Harris “Butch” Ballow from arrest, announced United States Attorney Kenneth Magidson. Lanier was convicted of conspiracy to commit wire fraud arising from a stock sale scheme, 13 counts of wire fraud, one count of harboring and concealing Ballow from arrest and one count of assisting a federal offender. The jury returned its verdicts last night following a 13-day trial.
Lanier is an Austin attorney who represented Ballow during proceedings before the Securities and Exchange Commission (SEC) in 2004 and also during the criminal case that led to Ballow becoming a fugitive. While a fugitive, Ballow controlled a corporation used to bilk hundreds of investors, many of whom lived in Canada, out of millions of dollars. Lanier served as a lawyer for that corporation.
Evidence demonstrated that Lanier assisted Ballow in selling shares of stock in public companies acquired and controlled by Ballow while he was a fugitive from justice. Assisted by Lanier, Ballow and co-conspirators sold stock to unsuspecting investors by hiding Ballow’s true identity, disseminating false and misleading information to increase and maintain the value of stock, failing to fulfill promises to remove restrictions which prevented investors from selling the stock and selling land and ownership interests in a real estate development that never materialized.
Ballow was a fugitive from justice in the United States for more than five years. He was indicted in federal court in Houston in 2003 for fraud and money laundering which centered on misrepresentations made in connection with the purchase and sale of stock. Ballow pleaded guilty before U.S. District Judge David Hittner to money laundering in November 2003 and faced a maximum of 10 years imprisonment. At the time, Ballow, who had been in custody without bond for approximately a year, agreed to cooperate with an SEC investigation and was released on a $100,000 bond pending his sentencing. On Dec. 16, 2004, the day of sentencing, Ballow failed to appear and a warrant was soon issued for his arrest. Ballow was arrested by Mexican authorities on July 13, 2010, in Nuevo Vallarta, Mexico, and extradited by Mexico to the United States on April 8, 2011. He was later sentenced to 10 years for money laundering and ordered to pay $10 million in restitution.
According to evidence presented in Lanier’s trial, Ballow lived under the names John Gel, Tom Brown and Marty Twinley during his time as a fugitive and also acquired a British passport in the name of Melvyn John Gelsthorpe. Ballow used these names to take control of publicly-traded corporations, including E-SOL International Corp., Medra Corp., Deep Earth Resources Inc. and Aztec Technology Partners Inc. (now known as Ultimate Lifestyles Corporation) and sold the stock to investors without revealing his true identity, his use of multiple names, his past convictions for fraud and money laundering and his status as fugitive from justice in the United States. After Ballow fled, Lanier traveled to Mexico to meet him and provided legal work for Ballow under his various false names to consummate Ballow’s fraudulent transactions to bilk investors.
Several others have also pleaded guilty in relation to the scheme and are pending sentencing.
Lanier faces up to 20 years in federal prison on the conspiracy charge as well as the substantive wire fraud charges. For the harboring and false statement charges, he also faces up to five years in prison, while the assisting a federal offender conviction carries a possible 2 ½ years in prison. All counts of conviction also carry a possible $250,00 fine. Sentencing is set for August 2014.
Previously released on bond, Lanier was taken into custody upon the return of the verdicts yesterday. A detention hearing is set for 2:00 p.m. today before Judge Lee Rosenthal.
The case was jointly investigated by the United States Marshals Service and the FBI with substantial assistance of Internal Revenue Service - Criminal Investigation and the U.S. Postal Inspection Service. Valuable assistance was also provided by the Royal Canadian Mounted Police. Assistant U.S. Attorneys John R. Lewis and Belinda Beek prosecuted the case.
Jamaican Drug Dealer Sentenced to 14 Years in PrisonRead the Press Release
Also Laundered More Than $300,000 in Drug Proceeds
Baltimore, Maryland - U.S. District Judge George L. Russell III sentenced Jerome Adolfo Castle, a/k/a Dontwon Burris, age 35, a Jamaican citizen residing in Pikesville, Maryland, to 14 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with the intent to distribute cocaine and marijuana; conspiracy to launder money; and illegally re-entering the United States after having previously been deported. Judge Russell also ordered that Castle forfeit $57,997 in cash, his interest in seven Baltimore properties, jewelry valued at more than $411,000, 98 pairs of men’s shoes, two laptop computers and an I-Pad, seven firearms and ammunition, as well as six vehicles, including a 2009 Jaguar XF Premium.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Chief James W. Johnson of the Baltimore County Police Department; Colonel Michael Kundrat, Chief of the Maryland Transportation Authority Police; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI)..
According to Castle’s plea agreement, from March 2013 through April 22, 2013, Jerome Castle conspired with Josef Byrd, Harold Byrd and others to distribute cocaine and marijuana. As a result of extensive surveillance and other investigative actions, law enforcement obtained federal search warrants for the residences of Harold and Josef Byrd; a commercial building at 5819 Moravia Road, Baltimore, MD; and for Castle’s residence on Archimedes Court in Pikesville.
On April 22, 2013, investigators arrested Josef Byrd and Harold Byrd as they took delivery of a shipment of approximately 500 pounds of marijuana at the commercial premises at 5819 Moravia Road. Jerome Castle was conducting counter-surveillance during the marijuana delivery and fled from police in a Ford pick-up truck. Castle took the police on a high-speed chase at speeds exceeding 100 miles per hour, and was arrested only after he crashed his vehicle into other vehicles parked in a used car lot in Harford County.
In search warrants executed later that day, law enforcement recovered over five kilograms of cocaine from each of the Byrd brothers’ homes, with a street value of approximately $150,000. Law enforcement also recovered three handguns, one AK-47 (semi-automatic), and four sets of body armor from Harold Byrd’s residence. Seventy-three black plastic containers used to conceal large quantities of marijuana during shipment from Arizona to Maryland were also recovered from Harold’s home. At Castle’s home, investigators recovered almost $58,000 in cash; jewelry appraised at over $411,000; a money counter; a scale used to measure quantities of drugs; over 200 grams of marijuana; and seven handguns. The substances recovered during these searches were field-tested and the results were positive for the presence of cocaine and marijuana.
In addition to his drug activities, Jerome Castle conspired to conduct monetary transactions of more than $10,000 using the proceeds from the sale of cocaine and marijuana. These monetary transactions were primarily bank account deposits made by Castle under the name of Dontwon Burris. Between 2010 and April of 2013, Castle deposited approximately $300,000 in cash to bank accounts in the name of Dontwon Burris.
Brothers Harold Alexander Byrd, age 26, of Phoenix, Maryland, and Joseph Ibreham Byrd, age 34, of Owings Mills, Maryland, previously pleaded guilty to their roles in the conspiracy and were each sentenced to 10 years in prison.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore County Police Department, the Maryland Transportation Authority Police, IRS-Criminal Investigation and HSI-Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys James G. Warwick and Kenneth S. Clark, who prosecuted the case.
Iowa Company Pleads Gulty to Releasing Contaminated Water into Duenweg Sewer; Must Pay Fine and Issue Public ApologyRead the Press Release
February 28, 2014SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Des Moines, Iowa, company pleaded guilty in federal court today to releasing thousands of gallons of gasoline-contaminated water into the city sewer system of Duenweg, Mo.
Seneca Companies, Inc., pleaded guilty before U.S. Magistrate Judge David P. Rush to the negligent introduction of a pollutant or hazardous substance into a publicly owned sewer system without any permit.
Seneca is a petroleum and hazardous materials handling company headquartered in Des Moines. Seneca agreed to repair a gasoline line at Casey’s General Store, 8084 E., 7th Street, in Duenweg in December 2010. This gasoline line failure had allowed gasoline to accumulate into a containment sump on Casey’s property. Seneca employees were responsible for safely repairing Casey’s gasoline line failure and safely disposing of any hazardous material in conformity with state and federal regulations.
On Dec. 16, 2010 Seneca employees pumped gasoline-contaminated water out of Casey=s containment sump and into the sewer system, negligently releasing a hazardous substance or pollutant (water tainted with gasoline), which was an illegal discharge.
Approximately 30 to 40 minutes later Casey’s employees detected a strong odor of gasoline and immediately notified the Duenweg Fire Department and the Seneca crew. Casey’s employees and Seneca’s crew immediately began pouring buckets of water into the sinks and floor drains to combat the fumes.
Employees of the Rosebrough General Store, located downstream from Casey’s, also detected strong gasoline odors inside their store and immediately vacated the store and notified the Duenweg Fire Department. The Duenweg Fire Department responded and immediately requested assistance from Joplin, Mo., fire and hazmat personnel, who also responded.
Joplin Fire Department personnel conducted atmospheric testing from various down flow sewer manholes from Casey’s and confirmed gasoline vapors above the lower explosive limit in the sewer under the Duenweg elementary school, causing the 150 students to be immediately evacuated from the school. The Duenweg and Joplin fire departments pumped large quantities of water into the sewer system to lower or dilute the gasoline vapors.
While it is impossible to know the exact amount of gasoline and water that were discharged into the public sewer, a Missouri Department of Natural Resources estimate is that between 7,500 and 10,000 gallons were released into the city system.
Today’s plea agreement notes that Seneca had been involved in this type of repair work at Casey’s in the past. In December 2009, Seneca applied to the city of Joplin for a permit to release treated water at the Casey’s location in Duenweg. Seneca’s application stated that, “due to the nature of gasoline sales at the site, the groundwater will be treated onsite with a portable air stripper system before discharging to the City’s sanitary sewer system.” Seneca received the permit to perform the work and completed it properly, using precisely the procedures they should have used on Dec. 16, 2010.
Under the terms of today’s plea agreement, Seneca must pay a fine of at least $75,000, up to $200,000, as well as restitution during a term of five years of probation. Seneca must conduct annual training for all employees engaged in the repair of underground gasoline storage tanks on the proper and lawful disposal and removal of pollutants or hazardous materials from underground gasoline storage tanks. The company must also publish a public apology consisting of an advertisement in the Joplin Globe for seven consecutive days. Public dissemination of Seneca’s negligence, says the plea agreement, will provide a deterrent effect for other potential violators of the Clean Water Act.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by the U.S. Environmental Protection Agency – Criminal Investigation Division, the Duenweg, Mo., Fire Department, the Joplin, Mo., Fire Department and the Missouri Department of Natural Resources.Indianapolis Man Sentenced for Role in Multi-State Cocaine Distribution ConspiracyRead the Press Release
NORFOLK, Va. – John Nathan Fitzgerald, 36, of Indianapolis, Indiana, was sentenced today to 360 months in prison, followed by 120 months of supervised release, for his role in a cocaine distribution conspiracy.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; and Royce E. Curtin, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by United States District Judge Arenda L. Wright Allen.Fitzgerald pleaded guilty on August 8, 2013. According to court documents, since approximately 2006, Fitzgerald was a member of a large-scale cocaine distribution conspiracy with a far-reaching distribution network that spanned from Virginia to New York, Pennsylvania, Indiana, Arizona, and other locations. The group concealed the cocaine for distribution and the proceeds from the sale of the drugs by secreting both inside the lining of coolers and inert, hollowed-out fire extinguishers to avoid detection during transportation. Fitzgerald ran the Indianapolis, Indiana hub of the organization, where he maintained a stash house for the group to store, re-package, and deliver the cocaine, as well as recruited others to assist in the distribution of cocaine. He was held responsible today for his role in the distribution of over 130 kilograms of cocaine.
To date, other defendants that have been convicted and sentenced include:- Luis Alberto Navarro – Sentenced December 13, 2013 to 360 months;
- Omar A. Martinez - Sentenced June 4, 2013 to 292 months;
- Adrian Demar Blunt - Sentenced February 12, 2013 to 240 months; and
- Mario A. Ruiz - Sentenced September 30, 2013 to 60 months.
This case was investigated by the Drug Enforcement Administration and the Federal Bureau of Investigation and is part of an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, “Fire and Ice.” Assistant United States Attorneys V. Kathleen Dougherty and Kevin M. Comstock prosecuted the case on behalf of the United States.
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.Holly Springs Residents Sentenced on Wire Fraud ChargesRead the Press Release
OXFORD, Miss. - Felicia C. Adams, United States Attorney for the Northern District of Mississippi, Daniel P. McMullen, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi, Phillip M. Durham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Keith Brown, Special Agent in Charge of the Drug Enforcement Administration, New Orleans Field Division, announced that:
Denisha Nicole Pore aka Denisha House, 30, of Holly Springs, Mississippi, and Samantha Marie Evans, 30, also of Holly Springs, were sentenced on February 26 and 27, respectively, by United States District Judge Glen Davidson, following their plea of guilty in April 2013 to one count of wire fraud each. Evans also plead guild to one count of using a communication facility (telephone) to facilitate the distribution of cocaine. The wire fraud charges stem from a scheme to steal money from various bank accounts through a series of fraudulent transactions.
Judge Davidson ordered Pore to serve 125 months in prison, followed by 5 years supervised release. She was also ordered to pay restitution in the amount of $104,384.76. Pore was taken into custody immediately following imposition of her sentence.
Judge Davidson ordered Evans to serve 21 months in prison on each count, to run concurrently, followed by 3 years supervised release on the wire fraud charge and 1 year supervised release on the drug charge, also to run concurrently. She was also ordered to pay restitution in the amount of $29,999.97. Evans is scheduled to report to prison on April 7.
A third defendant, Melinda Evans, is set to be sentenced at a later date.
“The sentences received from the courts send a clear message of deterrence to those individuals who would contemplate performing any criminal mischief in the Northern Judicial District of Mississippi,” said ATF New Orleans Field Division Special Agent in Charge Phil Durham. “The efforts of our agents and law enforcement partners in concert with the Holly Springs community deserve great credit for the results derived from this investigation.”
Daniel McMullen, Special Agent in Charge of the FBI in Mississippi, stated: “The significant sentence of Denisha Pore reflects the hard work and determined efforts of the FBI Special Agents and federal prosecutors who worked on this case, and the substantial investigative assistance provided by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives as well as the Drug Enforcement Administration. These sentences further reflect the intolerance of the criminal justice system for those who engage in criminal schemes to enrich themselves at the expense of others.”
Felicia C. Adams, United States Attorney for the Northern District of Mississippi said: “The sentences imposed reinforce the message that federal courts view the actions of the defendants as serious crimes that warrant significant punishment. The United States Attorney’s Office is committed to holding those who seek to profit from these fraudulent schemes accountable for their illegal activities.”
This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Drug Enforcement Adminstration and was prosecuted by Assistant United States Attorney Robert Mims.
Holland Man Charged in Connection with Fraudulent Receipt of Veterans' Benefits and Workers CompensationRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Richard Klaffka, 56, of Holland, N.Y., was charged by criminal complaint in connection with the defendant’s receipt of benefits from the Veterans’ Administration and Workers’ Compensation under false pretenses. Klaffka is charged with making false statements, mail fraud, wire fraud, and fraud. The charges carry a maximum penalty of 20 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney John E. Rogowski, who is handling the case, stated that according to the complaint, beginning in 2008, Klaffka told the Veterans Administration that, due to an injury connected with his military service in 1978, he was confined to a wheelchair and unable to engage in everyday activities like walking, driving and dressing himself. The defendant was already receiving benefits for the service related injury and was appealing for a significant increase in those benefits. Although his initial application for the increase was denied, after a successful appeal, the increase was granted and made retroactive resulting in a significant lump sum payment.
The complaint further alleges that in order to get Workers’ Compensation benefits from his employment with the United States Postal Service, the defendant falsely claimed that his mobility was limited due to a work injury, that he was only able to walk with the assistance of a cane and could not lift more than five pounds.
The complaint then outlines instances where investigators observed and recorded the defendant engaging in strenuous activities. In one instance in 2013, Klaffka was observed driving to the Veterans’ Administration Hospital and lifting a wheelchair from his vehicle. The defendant then placed himself in the wheelchair and his wife pushed him into the hospital. After his appointment, Klaffka’s wife pushed the defendant back to the vehicle where he got out of the wheelchair without assistance, lifted the chair back into the vehicle, and drove away.
The defendant was also observed playing horseshoes for hours at a time and then riding a bicycle. In another instance, the defendant went on a cruise and was observed engaging in a wide variety of activities not consistent with being confined to a wheelchair or otherwise limited in physical capacity. According to complaint, Klaffka is receiving over $9,000 per month in tax free benefits from both government entities as a result of his false claims.
“This Office is committed to ensuring that public money intended for those who are truly in need is not stolen by one who lies about his true physical condition,” said U.S. Hochul. “Instead of applying the well-known quote ‘[t]here is no substitute for hard work,’ to honest labor, the defendant stands accused of working to perpetuate a lengthy fraud against taxpayer funds.”The charges were the result of an investigation on the part of Special Agents of the United States Veterans Administration, Office of Inspector General, Criminal Investigations Division, under the direction of Jeffrey Hughes, the Veterans Administration Police Department, under the direction of Acting Chief Steven Coville, the United States Department of Labor, Office of Inspector General, under the direction of Acting Special Agent in Charge Cheryl Garcia, and the United States Postal Service, Office of Inspector General, under the direction of Monica Weyler, Special Agent in Charge, Eastern Area Field Office.
The defendant is scheduled to appear in before U.S. Magistrate Judge H. Kenneth Schroeder, Jr., on March 20, 2014, at 10:00 a.m.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Greenup County, Kentucky, Teen Sentenced to 24 Months for Threatening to Kill A Federal Judge and A Federal ProsecutorRead the Press Release
LONDON, Ky. – A Greenup County, Kentucky, teenager was sentenced to 24 months in prison, after he pleaded guilty this week, in U.S. District Court, to threatening to kill a federal judge and a federal prosecutor, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Michael A. Collins, age 19, was sentenced by U.S. District Judge Gregory Van Tatenhove following a change of plea hearing held yesterday in London, Kentucky, during which Collins pleaded guilty to two of three charges in a federal indictment. As part of the plea agreement, the United States agreed to dismiss count three at sentencing.
Specifically, Collins admitted that on December 10, 2012, while a student at the Appalachian Challenge Academy, located in Harlan, Kentucky, he told a residential counselor that upon graduation he would purchase a gun and kill everyone involved in the prosecution and imprisonment of his father, John Collins. The defendant’s father is currently serving an eleven year prison sentence after pleading guilty to possession of child pornography.
Further, Collins admitted to planning the attacks including the number of weapons and amount of ammunition he would need. A mental evaluation of Collins at the Appalachian Regional Healthcare facility found that the defendant represented a significant risk or harm to others.
The defendant’s father, John Collins was prosecuted by the United States Attorney’s Office for the Eastern District of Kentucky in 2011. Yesterday, Collins admitted in court that he threatened to kill Assistant United States Attorney Jason Denny and U.S. District Judge David Bunning in retaliation of their performance while in their official capacity.
This case was prosecuted by Assistant United States Attorney A. Spencer McKiness and was investigated by the United States Marshals Service.
Former Postman Pleads Guilty to Bribery and Stealing MailRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that John Peter Vreeland (40, Land O’Lakes) today pleaded guilty to bribery by a public official and theft of mail by a postal employee. He faces a maximum penalty of twenty years in federal prison, and a $500,000.00 fine. A sentencing date has not yet been set.
Vreeland was charged in an Information on February 11, 2014.
According to the plea agreement, Vreeland was a United States Postal employee and mail carrier who was assigned to the Ybor City Post Office in Tampa, Florida. As a mail carrier, he was a public official who had a duty to receive and deliver the United States mail. From at least as early as May 2011 through December 2011, Vreeland redirected and stole approximately 60 to 70 United States Treasury income tax refund checks from the United States mail, which came into his possession in his capacity as a mail carrier, and were intended to be conveyed by mail.
A co-conspirator, in Tampa, submitted or caused to be submitted to the Internal Revenue Service (IRS), numerous fraudulent income tax returns seeking refund payments. As a result of the scheme, the IRS issued numerous income tax refund checks to various individuals and addresses in Tampa. Some of those addresses were on Vreeland’s postal route. The co-conspirator approached Vreeland and requested that Vreeland remove those tax refund checks from the intended mailing addresses, on Vreeland’s postal route, and to redirect the checks to the co-conspirator, in exchange for money. Vreeland agreed to do so, and the co-conspirator subsequently cashed the checks.
On January 25, 2012, agents interviewed Vreeland and he admitted to being involved in the income tax fraud scheme, and stated that he was first approached by the co-conspirator about the scheme in April 2011. Vreeland advised that he was paid $50.00 per check by the co-conspirator, who advised law enforcement that he received approximately 60 to 70 checks from Vreeland. Further investigation revealed numerous cash deposits into Vreeland’s bank account from May 2011 through December 2011.
This case was investigated by United States Postal Service, Office of the Inspector General. It is being prosecuted by Assistant United States Attorney Amanda C. Kaiser.
Former Needham Investment Adviser Indicted on Fraud ChargesRead the Press Release
BOSTON - A former Merrill Lynch and Smith Barney investment adviser was indicted yesterday in connection with a nearly two-decade scheme to drain clients’ accounts.
Jane E. O'Brien, 61, of Needham, was charged in an eight-count indictment with mail fraud, wire fraud and investment adviser fraud. The indictment charges that between 1995 and 2013, O’Brien defrauded several clients for whom she provided investment advisory services. As part of the scheme, O’Brien misappropriated funds entrusted to her through a variety of means, including persuading clients to withdraw money from their bank and brokerage accounts and give the money to her personally to invest on their behalf. After gaining control of her clients’ money, however, O’Brien made no such investments. Instead, she used the misappropriated client funds for a variety of improper purposes, including paying personal expenses, and paying purported investment returns or repaying personal loans to other clients. Finally, in order both to perpetuate her fraud and conceal it from her clients, O’Brien made false statements and misrepresentations to clients, including making lulling payments to clients and otherwise providing them with false assurances of their financial security.
With respect to one client, the indictment charges that O’Brien caused the client first to empty her Smith Barney brokerage account and give the proceeds to O’Brien, and then to borrow an additional $1 million on her home and give much of that money to O’Brien to invest. With respect to a second client, the indictment charges that O’Brien caused the client to empty her Merrill Lynch brokerage account and give the proceeds to O’Brien to invest in a Hollywood movie called "Crooked Arrows." With respect to a third client, the indictment alleges that O’Brien caused the client to withdraw $190,000 from her bank account and give the proceeds to O’Brien to invest. The indictment alleges that O’Brien made none of the investments she promised.
In December 2012, O’Brien was convicted in a separate matter of securities fraud after pleading guilty to a scheme to defraud yet another client of $240,000 by selling her a security that did not, in fact, exist. In May 2013, U.S. District Judge Nathaniel M. Gorton sentenced O’Brien to 33 months in prison. She is currently serving that sentence.
If convicted of the pending charges, O'Brien faces up to 20 years in prison on each count of mail and wire fraud, a fine of $250,000 or twice the gross gain or loss. If convicted of investment advisor fraud, she faces up to 5 years in prison and a $10,000 fine.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Stephen E. Frank of Ortiz’s Economic Crimes Unit.
The details contained in the Indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former NASA Contractor Sentenced to 60 Months for Illegally Obtaining More Than $4.4 Million Intended for Disadvantaged Small BusinessesRead the Press Release
ALEXANDRIA, Va. – Michael Brian Dunkel, 60, of Merritt Island, Fl., was sentenced today to 60 months in prison, followed by 2 years of supervised release, for fraudulently obtaining more than $4.4 million in government contract payments that should have gone to disadvantaged small businesses. Dunkel also was ordered to pay a $12,500 fine and $2,960,697.37 in forfeiture.
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.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; and Inspector General Paul K. Martin of the National Aeronautics and Space Administration (NASA) made the announcement after sentencing by United States District Judge Gerald Bruce Lee.
Dunkel pleaded guilty on May 23, 2013, to one count of major government fraud. According to court documents, Dunkel learned in 2005 that Keith Hedman, an executive at an Arlington-based security service consulting company referred to as Company A in court records, illegally controlled Company B, another Arlington-based security service consulting company. Company B was a participant in the Small Business Administration (SBA) “Section 8(a)” program, which enables certain small businesses to receive contracts set aside for minority-owned and disadvantaged small businesses. Although Hedman controlled Company B, Company B had obtained its 8(a) status based on the disadvantaged status of Dawn Hamilton, its titular owner.
Dunkel admitted that he agreed to pay Hedman and Company B a 10-15 percent pass-through fee in exchange for Company B allowing Dunkel to fraudulently use its 8(a) status to obtain NASA and other U.S. government contracts. Although Company B was required to perform at least 50 percent of the work on the contracts and had represented it would do so, no Company B employees actually performed any work. Instead, Dunkel and others did 100 percent of the work as independent contractors, but they concealed that fact from the government agencies. In addition, Dunkel submitted fraudulent proposals and invoices to hide their scheme, used a third-party company’s Federal Employer Identification Number to prevent reporting of his contractor income to the IRS, and did not pay any income taxes on the income he received from Company B.
Seven defendants, including Hedman and Hamilton, have previously been sentenced in connection with the government contracting fraud scheme and a related bribery scheme.
This case was investigated by the NASA Office of the Inspector General (OIG), the SBA OIG, the Defense Criminal Investigative Service, the General Services Administration OIG and the Department of Homeland Security OIG. Assistant U.S. Attorneys Chad Golder and Ryan Faulconer, a former Trial Attorney for the Criminal Division’s Fraud Section, prosecuted the case on behalf of the United States.Former Franklin Homebuilder Pleads Guilty to Theft from Employee Benefit PlanRead the Press Release
Custom Homebuilder Used Employee 401(k) Contributions for Personal Use
Nicholas Psillas, 58, of Houston, Texas, formerly of Franklin, Tenn., pleaded guilty today in U.S. District Court to theft from an employee benefit plan, announced David Rivera United States Attorney for the Middle District of Tennessee.
Psillas was indicted in April 2012 and faces up to five years’ in prison, a fine of $250,000, and a term of 3 years of supervised release. He will be sentenced on June 13, 2014.
According to the plea agreement, Psillas was the president and owner of Corinthian Custom Homes (“CCH”), located in Franklin, Tenn. In January 2005 Psillas established a 401(k) plan for CCH employees, of which he was the trustee. Eligible employee participants contributed funds to the plan, which were deducted from their bi-weekly compensation. CCH was responsible for making mandatory “safe harbor” contributions, required by the plan. CCH was also required to remit employee contributions and safe harbor contributions to a financial institution, which was responsible for managing the funds through employee-directed investments.
From approximately March 2006 through October 2007, instead of remitting the contributions as required, Psillas converted to his own use approximately $62,529 in employee contributions and $22,366 in safe harbor contributions. Psillas allowed funds to be withheld from participating employees’ paychecks and then to be deposited into and comingled with the company’s general operating account, which he used for his personal use and the use of CCH.
Psillas’s failure to make the required remittance for the employee and safe harbor contributions resulted in lost earnings of over $12,000.
This case was investigated by the U.S. Department of Labor. Assistant United States Attorney Kathryn Ward Booth represents the government.
Former Drug Task Force Director Admits Stealing Federal DollarsRead the Press Release
COVINGTON, KY - The former executive director of a federally funded northern Kentucky drug task force has admitted he stole money that belonged to the task force.
Timothy George Fegan, 52, pleaded guilty to one count of theft of government money. Fegan, who worked for the Buffalo Trace/Gateway Narcotics Task Force at the time, wrongfully took thousands of dollars from the organization, over an extended period. Fegan acknowledged that he took cash proceeds that Task Force agents had seized during drug investigations and took money that the Task Force kept on hand to perform undercover drug buys.
Between November 2011 and November 2012, the Task Force received approximately $150,000 in federal funding. Fegan admitted that he stole thousands of dollars in Task Force funds during this period. At sentencing, the Court will determine the total amount of money that Fegan stole from the Task Force, during the period from December 31, 2009 to November 2012.
The Buffalo Trace/Gateway Narcotics Task Force was organized by several county and city governments and was responsible for the investigation of drug crimes in various northern and eastern Kentucky counties. The Task Force was funded by federal and state grants and contributions from the county and city governments that formed the Task Force. The Task Force’s operations are based in Maysville, KY., and Fegan worked for the Task Force during this period, including serving as Interim Executive Director from December 31, 2009 through March 2010 and Executive Director from April 2010 until November 2012. The Task Force ceased its operations in early 2013.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Perrye Turner, Special Agent in Charge, FBI, jointly announced the guilty plea.
The investigation was conducted by the FBI and the Kentucky State Police. Assistant U.S. Attorney Andrew T. Boone is prosecuting this case for the U.S. Attorney’s Office on behalf of the federal government.
Sentencing is scheduled for June 19, 2014. The theft of government money offense carries a maximum of 10 years in prison and a maximum fine of $250,000. The sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the applicable federal statutes.
Former Chairman of Woodland Park, N.J., Democratic Committee Sentenced to Two Years in Prison for Bribing IRS OfficialRead the Press Release
CAMDEN, N.J. — The former chairman of the Woodland Park, N.J., Democratic Committee was sentenced today to 24 months in prison for bribing two individuals he thought were IRS officials to eliminate his tax debt, U.S. Attorney Paul J. Fishman announced.
Michael Kazmark, 61, of Woodland Park, previously pleaded guilty before Chief U.S. District Judge Jerome B. Simandle to an information charging him with one count of bribing a federal public official in exchange for official action. Judge Simandle imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Kazmark failed to pay federal income taxes from 1997 through 2005. In 2010, Kazmark owed the IRS $98,046 in unpaid federal income taxes, interest and penalties. On April 18, 2010, Kazmark made an application to the IRS for an offer in compromise, requesting that he pay $48,800 to the IRS in order to settle his entire federal tax debt.
On Oct. 5, 2010, Kazmark paid a $1,000 bribe to an undercover FBI agent and IRS employee, posing as IRS officials, in exchange for their official assistance in transferring his offer in compromise file to one of the officials for acceptance. On Nov. 23, 2010, Kazmark made a $17,500 bribe payment to the individuals, believing it was in exchange for their official assistance in placing his federal tax liability in noncollectible status for two years and agreeing to accept Kazmark’s offer in compromise for the amount of the check that he had already paid to the IRS – $9,760 – if he did not incur any additional federal tax liability for two years.
In addition to the prison term, Judge Simandle sentenced Kazmark to two years of supervised release. As a condition of that release, Kazmark is required to pay his full tax liability to the IRS.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and special agents of the U.S. Treasury Inspector General for Tax Administration, under the direction of Special Agent in Charge Robert Geary, for the investigation leading to today’s sentence.The government is represented by Assistant U.S. Attorney Vikas Khanna of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
14-069
Defense counsel: Miles Feinstein Esq., Clifton, N.J.
Former Central Falls Mayor Pleads Guilty to Soliciting and Accepting A Bribe; Court Vacates Conviction for Accepting GratuitiesRead the Press Release
PROVIDENCE, R.I. – Former Central Falls Mayor Charles D. Moreau pleaded guilty in federal court today to soliciting and accepting a bribe from longtime friend, businessman and political supporter Michael G. Bouthillette. Moreau admitted to the court that he participated in a corruption scheme in which the former mayor accepted goods and services from Mr. Bouthillette in exchange for directing and providing board-up work on more than 160 properties in Central Falls between 2007 and 2009.
Moreau’s November 2012 conviction and sentence for accepting gratuities from Mr. Bouthillette in this matter was vacated by the court today on a defense motion citing a recent First Circuit Court of Appeals ruling in an unrelated case which found that the statute that Moreau pleaded guilty to violating is not applicable to gratuities.
After pleading guilty to soliciting and accepting a bribe, Moreau was sentenced by U.S. District Court Judge John J. McConnell, Jr., to time served on the previous conviction of nearly 12 months in federal prison, to be followed by three years supervised release; 300 hours of community service to the City of Central Falls; and a fine of $25,000. Moreau had previously been sentenced to 24 months in prison. Moreau remains a convicted felon.
United States Attorney Peter F. Neronha, Rhode Island Attorney General Peter F. Kilmartin and Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police announced Moreau’s guilty plea to a charge of accepting a bribe and sentence.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Moreau admitted to the court that beginning in September 2007 he ordered that all vacated homes in Central Falls be boarded up by Michael Bouthillette, a longtime friend and political supporter. Moreau admitted that he circumvented the State requirement that such work go out for competitive bidding by declaring that each vacant home presented as an “emergency” necessitating an immediate board-up.
An investigation conducted by the United States Attorney’s Office, the Rhode Island Attorney General’s Office and the Rhode Island State Police found that from approximately September 2007 to July 2009, Bouthillette boarded up at least 167 homes. Bouthillette submitted an invoice to the City of Central Falls for each board-up, at which time a lien was placed on the subject property for the amount of the invoice. As foreclosed properties were sold and the liens discharged, Central Falls would pay Bouthillette. The scheme allowed Bouthillette to make unreasonable profits amounting to hundreds of thousands of dollars.
At the time of his guilty plea in November 2012, Bouthillette admitted to the court that as a reward to the former mayor for providing him with the board-up work, on three occasions he gave Moreau things of value. Bouthillette admitted that in March 2009, he assisted Moreau in obtaining a furnace for Moreau’s Central Falls residence for which Bouthillette admitted that he contributed at least a portion of the purchase price; Bouthillette admitted that, from March to November of 2009, he provided numerous renovations and repairs to a Lincoln residence owned by Moreau which Moreau never paid for; and Bouthillette admitted to the court that in April 2010, he provided flood remediation work at Moreau’s Lincoln home which Moreau never paid for. Moreau admitted to the court that he accepted each of these gratuities from Bouthillette.Bouthillette, whose conviction and sentence are unaffected by today’s court actions, was sentenced to 3 years of probation, including 2,000 hours of community service to the residents of Central Falls – the equivalent of one year of fulltime employment without pay - and a fine of $5,000. The court also ordered Bouthillette to provide the Rhode Island Foundation with a payment of $160,000 to establish an endowment of charitable funds for the residents of Central Falls for public safety, housing and education programs. In addition, Bouthillette is prohibited from collecting more than $275,000 in liens placed on properties for board-up work he performed for which he yet to be paid. The court ordered that any remaining funds to be collected by Bouthillette are to be provided to the City of Central Falls.
The cases were prosecuted jointly by the government and the state in federal court by Assistant U.S. Attorney Terrence P. Donnelly and Rhode Island Assistant Attorney General J. Patrick Youngs.
Contact: 401-709-5357
[email protected]Former Blackfeet PoKa Project Officials Plead Guilty to Massive Grant Fraud Francis Kay OnstadRead the Press Release
Delyle Shanny Augare
Dorothy May Still Smoking
The United States Attorney's Office announced that former officials of the Blackfeet Tribe's Po'Ka Project, a multi-million dollar federally funded effort to address the needs of troubled youth on the reservation, have entered guilty pleas in federal court in Great Falls. FRANCIS KAY ONSTAD, 61, of Valier, the former Director of the Po'Ka Program, DELYLE SHANNY AUGARE, 58, of Browning, the former Assistant Director of the Po'Ka Program, and DOROTHY MAY STILL SMOKING, 64, of Browning, entered pleas of guilty to conspiracy, embezzlement and fraud before U.S. District Judge Brian Morris on February 28, 2014. Onstad and Augare also entered pleas to charges of income tax evasion. Onstad and Augare face a possible 5 years in prison and a $250,000, for conspiracy to defraud the United States, and income tax evasion. They also face 10 years in prison and $250,000 fine for conspiracy to violate the False Claims Act and theft from an Indian tribal government receiving federal funding. Sentences on the four convictions could be ordered to run consecutively. Still Smoking pled guilty to a single count of conspiracy to violate the False Claims Act. Assistant U.S. Attorney Carl Rostad told the Court that, as part of his agreement with the defendants, his office would be seeking $1,000,000 in restitution from each defendant.
Codefendant Charlotte New Breast entered a guilty plea and was sentenced in 2013. Codefendant Katheryn Elizabeth Sherman has reached a plea agreement with the United States and is scheduled to enter her plea before Judge Morris on Monday, March 3.
In an Offer of Proof, the prosecutor told the Court that the Blackfeet Po'Ka Project was developed to help troubled Native American youth. Po'Ka was funded by a federal grant from 2005 through 2011 by the Substance Abuse and Mental Health Services Administration (SAMHSA) of the Department of Health and Human Services. Beginning in 2005 with a $1,000,000 federal disbursement, the grant ultimately became a $9.3 million program over a six year period (2005-2011).
THE IN-KIND CONTRIBUTION REQUIREMENTAND THE FALSE CLAIMS CONSPIRACY
It was the stated intent and proposal from the Tribe that the Po'Ka Project would ultimately become self-sufficient; a completely tribal program - entirely supported by the Tribe - by the end of the grant period. The grant required that the Tribe provide a certain amount of funding. "A requirement contained in certain legislation, regulations, or administrative policies that a recipient must maintain a specified level of financial effort in the health area for which Federal funds will be provided in order to receive Federal grant funds." Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances (SED), CMHS Child Mental Health Service Initiative Number: 93.104. To achieve the goal of final self-sufficiency, the Tribe was required to provide in-kind matching contributions to continue to secure federal payments with the idea that as federal participation declined, tribal participation would rise to fill the funding void left by the absence of federal funds. It was the intent of the parties and SAMHSA that the Po'Ka Project would survive on its own once federal funding was no longer forthcoming.
An in-kind contribution is a non-cash contribution provided by non-federal third parties in support of the project funded by the grant, and its objectives. Third party in-kind contributions may be in the form of real property, equipment, supplies and other expendable property, and the value of goods and services directly benefitting and specifically identifiable to the project or program.
As noted, a key component of the grant award was the funding arc; the ratio of federal money to in-kind contributions. Only if Po'Ka met the in-kind contribution targets could they receive the maximum amount of federal money from the grant. Consistent with the sustainability objective of the grant, the Tribe's in-kind contribution requirement was the highest in the later years of the grant. The Blackfeet Tribe was required to provide $7.0 million of in-kind contributions from FYs 2009 through 2011. That created an environment where the appearance of substantial in-kind contributions became paramount if the maximum flow of federal money from the grant was going to continue.
However, the in-kind commitment could never be honestly met, so the conspirators began making up facts and documents to try and satisfy SAMHSA and the auditors that the in-kind contributions represented on their reports to SAMHSA were legitimate. They did so by inflating the figures related to in-kind contributions, assigning values to non-existent and illegitimate "contributions," and manufacturing fraudulent invoices and records to support fictional or inflated contributions. The misrepresentations as to in-kind amounts were made in monthly reports to SAMHSA and the documents were generated to placate auditors conducting a required annual audit of the Tribe's operations. These annual audits are required of tribe's accepting federal grant funds to insure that the grant funds are being used for their intended purpose and that the requirements of the contract agreement are being met. If auditors make negative findings, those findings can result in action by the federal agency to rescind the contract, demand repayment, or make an offset, where the government deducts money from future payments.
Several witnesses, whose names were used as in-kind contributors, denied preparing or signing the invoice and denied contributing time or goods to the Po'Ka Project, at least in the amount claimed.
Based on email evidence and the statements of cooperating witnesses, Onstad, Augare, and Still Smoking, along with others, conspired to make the false representations as to the in-kind contributions made to the Po'Ka Project, and then actively managed the creation of false documentation to cover the representations so that the auditors would not question the contributions and the federal money would continue flowing unabated. The false representations were in effect false claims that resulted in the expenditure of federal grant money that would not have been expended had the principals honestly represented the woefully inadequate level of non-federal support.
Auditors with the Office of Inspector General (OIG), U.S. Department of Health and Human Services, have determined that $4.6 million in claims for grant payments paid to the Tribe on the basis of Po'Ka' s in-kind contribution are unsupported, inflated, or completely falsified.
THE EMBEZZLEMENT SCHEME WITH THE NATIONAL EVALUATOR
Onstad and Augare embezzled from the program in a myriad of relatively minor ways - travel fraud, misuse of Po'Ka credit cards, exorbitant claims of overtime, etc. - but the most significant embezzlement came in the agreement they appeared to reach with the grant's national evaluator. Certain federal grants require the participation of a national evaluator; an outside observer whose job is to monitor the progress of the project. Onstad and Augare reached an agreement with the national evaluator whereby they would approve significant payments to the evaluator who would in turn kick back a sizable portion of what was provided to him. Between August 2008 and August 2011, Onstad and Augare approved over $475,000 in Po'Ka grant monies for the national evaluator, then doing business under an alias business name. In turn, between August 2008, and September 2011, the national evaluator transferred $231,550 to the Child Family Advocacy Center (commonly referred to as the Child Family Advocacy Fund or CFAF) bank accounts at the Wells Fargo Bank in Cut Bank, Montana.
Between September 2008 and September 2011, Onstad and Augare withdrew $225,482 from the CFAF accounts. Much of that money went into their personal accounts at Stockman Bank and from those accounts much was spent on gambling and travel.
TAX EVASION WITH REGARD TO 2008 TAX LIABILITY
In 2009, Onstad and Augare both filed federal income tax returns for the calendar year 2008 in which they claimed a certain amount of taxable income based on their salaries from the Po'Ka Program. However, they had also taken significant sums from the CFAF accounts, all of which constituted unreported income. By concealing that income from the Internal Revenue Service, Onstad and Augare paid approximately half of what was owed to the IRS.
The case was pursued by the Federal Bureau of Investigation and the Department of Health and Human Services' Office of Inspector General. The FBI and the IG also received substantial assistance from the Internal Revenue Service's Criminal Investigation Division.
U.S. Attorney Mike Cotter lauded the work of the FBI and the Inspector General's Office in the Po'Ka case as well as the myriad other cases investigated and prosecuted since the Guardians Project was made public in 2013.
Rarely does government produce such an effective anti-corruption team as has been created by the agents of the Guardians Project. Abandoning the traditional model of "You work your case and I'll work mine", these agencies have committed themselves to mutual cooperation. Working closely together-providing each other with time, resources, and expertise-has made these investigators the champions of Indian Country communities eager to rid themselves of corruption and the abuses of trust and power."
Fifth Defendant Sentenced in Interstate Stolen Medical Supply SchemeRead the Press Release
BOSTON – A former employee of an Atlanta-based hospital was sentenced yesterday for conspiring to sell stolen medical supplies valued at more than $1.7 million.
Felicia Duggan, 41, of Georgia, was sentenced by U.S. District Judge Mark L. Wolf to 36 months of probation, with six of those months to be served in home confinement, $1,714,350 in restitution to the hospital, and $33,887 in restitution to the IRS. In August 2013, Duggan pleaded guilty to conspiracy to commit interstate transportation of stolen property and two counts of subscribing false tax returns. Over a two-year period, Duggan stole numerous medical supplies and devices from an Atlanta-based hospital where she was formerly employed. Beginning in March 2008, Duggan conspired with others, including a Boston-based medical supply thief, Corey Gatlin, to sell those stolen medical supplies on the black market.
Duggan was the fifth and final defendant to be sentenced in an investigation into the lucrative black market for stolen medical supplies and devices.
Gatlin, 37, of Georgia, was sentenced in March 2012 by U.S. District Judge William G. Young to 51 months in prison, 12 months supervised release, $3,226,715 in restitution to the three victim hospitals. Gatlin pleaded guilty to a three-count Information charging him with conspiracy and two counts of subscribing false tax returns. In 2004, Gatlin began stealing medical supplies from a hospital in Boston and selling them on the black market. In 2005, he moved to Atlanta and continued to steal, and recruit other employees to steal for him, medical supplies from two victim hospitals in Atlanta. Over the course of six years, Gatlin sold a total of more than $3.2 million in medical supplies that he and others had stolen from the three Boston and Atlanta-based hospitals.David Kelly, 54, of Florida, was sentenced in January 2014 by Judge Wolf to 12 months and 1 day in prison, 36 months of supervised release, $191,285 in restitution to the Boston-based victim hospital, and a $4,000 fine. Kelly pleaded guilty to a one-count Information charging him with sale or receipt of stolen goods. Kelly purchased stolen medical supplies from several individuals, including another defendant, Eric Jones, over a period of five years, worth a total of at least $191,285.
Eric Jones, 42, of Quincy, was sentenced in April 2011 by Judge Young to 12 months and 1 day in prison, 36 months of supervised release, and $1,130,669 in restitution to the Boston-based victim hospital. Jones pleaded guilty to a one-count Information charging him with interstate transportation of stolen property. Jones, a former Boston hospital worker who later became an operator for the Massachusetts Bay Transportation Authority (MBTA), stole, over a period of four years, numerous medical supplies from a supply room at the his former employer. Jones often stole the supplies from the hospital while on a break from his job at the MBTA and while wearing his MBTA uniform. Jones stole over $1.13 million worth of medical supplies from the hospital, which he sold to various individuals, including Kelly.
Tristen Slavin, 33, of Norwood, was sentenced in February 2011 by U.S. District Judge Richard G. Stearns to three years of probation and $238,029 in restitution to a victim hospital based in a suburb of Boston. Slavin pleaded guilty to a one-count Information charging her with interstate transportation of stolen property. Over a period of approximately three years, Slavin stole medical supplies worth at least $238,029 from her then hospital employer, and sold them on the black market.
United States Attorney Carmen M. Ortiz; Mark Dragonetti, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations, New York Field Office; Shelly Binkowski, Acting Inspector in Charge of the U.S. Postal Inspection Service; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement. The cases were prosecuted by Assistant U.S. Attorneys Amanda P.M. Strachan and Jim Arnold of Ortiz’s Health Care Fraud Unit.
Feds Bust Tijuana-based Identity Theft RingRead the Press Release
SAN DIEGO – Two men are charged in indictments unsealed this week with hacking into the computer servers of a major U.S. mortgage broker to steal personal information and use it to siphon funds from the brokerage accounts of thousands of victims.
Jason Ray Bailey and Victor Alejandro Fernandez were charged in a two-count indictment with conspiracy to commit wire fraud and computer hacking. Bailey was arraigned today before U.S. Magistrate Judge Jan Adler; Fernandez was arraigned on Wednesday.
According to charging documents, both men are part of a Tijuana-based conspiracy that hacked the computer servers of a U.S mortgage broker and obtained mortgage applications containing customers’ personal identification information such as names, dates of birth, social security numbers, addresses, assets, tax information and driver’s licenses.
Approximately 4,200 customers had their information stolen between December 2012 and June 2013 and the conspiracy dates back to July 2011, the charging documents say.
Members of the conspiracy used victims’ stolen information to impersonate the mortgage customers, open credit lines in their names, and steal their assets, according to the charging documents. For example, members of the conspiracy identified multiple victims’ brokerage accounts and fraudulently took control of the accounts by first calling the brokerage companies and providing the victims’ personal identification information, and then changing the victims’ passwords and contact information. Once the defendants gained control of the accounts, members of the conspiracy allegedly wired funds from the victims’ brokerage accounts to coconspirators’ U.S. bank accounts in the San Diego and Calexico areas. Several of these wires were over $20,000 and $30,000 each.
Bailey’s detention hearing was scheduled for March 4, 2014 at 3 p.m. and Fernandez’s detention hearing was scheduled for March 6, 2014 at 2:45 p.m. Both defendants are scheduled for a motion hearing and trial setting conference before U.S. District Judge Gonzalo P. Curial on April 11, 2014 at 10:30 a.m.
DEFENDANT Case No. 14CR0277-GPCJason Ray Bailey
Age: 38 Chula Vista, CA Victor Alejandro Fernandez Age: 38 Mammoth Lakes, CA CHARGESCount 1: Conspiracy to Commit Wire Fraud – Title 18, U.S.C., Section 1349
Maximum Penalties: Up to 30 years in prison and $1,000,000 fine.Count 2: Computer Hacking – Title 18, U.S.C., Sections 1030 (a) (4) and (c) (3) (A)
INVESTIGATING AGENCY
Maximum Penalties: Up to five years in prison and $250,000 fineFederal Bureau of Investigation
*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Federal Grand Jury in South Bend Returns IndictmentsRead the Press Release
South Bend, IN—The United States Attorney's Office announced that a Grand Jury sitting in South Bend, Indiana, returned the following Indictments on February 13, 2014:
Frederick Dotson, 39, of Mishawaka, Indiana, was charged in a three count Indictment with one count of distribution of a controlled substance, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of felon in possession of firearms.These charges were filed as the result of an investigation by the Drug Enforcement Administration.This case has been assigned to and will be prosecuted by Assistant United States Attorney Frank E. Schaffer.
Luis Trevino, 34, of South Bend, Indiana, and Javier Trevino, 32, of South Bend, Indiana, were charged in a three count Indictment with one count of possession with intent to distribute a controlled substance, one count of felon in possession of firearm(s), and one count of possession with intent to distribute Marijuana.These charges were filed as the result of an investigation by the Drug Enforcement Administration.This case has been assigned to and will be prosecuted by Assistant United States Attorney Frank E. Schaffer.
Eshar Burks, 26, of South Bend, Indiana, was charged in a two count Indictment with one count of possession with intent to distribute a controlled substance and one count of possession of a firearm in furtherance of a drug trafficking crime.These charges were filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.This case has been assigned to and will be prosecuted by Assistant United States Attorney Frank E. Schaffer.
Timothy B. Heckaman, 51, of Bremen, Indiana, was charged in a one-count Indictment with theft of government money; the unlawful receipt of federal unemployment insurance benefits.Charges were filed as a result of an investigation by the Indiana Department of Workforce Development and the United States Department of Labor – Office of the Inspector General.This case has been assigned to and will be prosecuted by Assistant United States Attorney Barbara Z. Brook.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
Father and Son Sentenced for Bank FraudRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Brad Heard, Sr., aged 57, of Camilla, Georgia, and Brad Heard, Jr., aged 35, of Leesburg, Georgia, were sentenced by U.S. District Court Judge W. Louis Sands on Thursday, February 27, 2014, for bank fraud. Brad Heard, Sr. was sentenced to serve 30 months in federal prison. Brad Heard, Jr. received a sentence of 33 months in prison. They were ordered to pay restitution in the amount of $5 million.Mr. Heard, Sr. and Mr. Heard, Jr. entered guilty pleas to the charges on September 26, 2013. As part of their plea agreements, Mr. Heard, Sr. and Mr. Heard, Jr. admitted that they paid bribes and kickbacks to a banker and his wife, located in Bainbridge, Georgia, to influence and reward the banker for making loans to them. The total amount of loans made by the banker to them was $13,000,000.00.
“The defendants in this case used kickbacks and bribes from loan proceeds from a bank, whose primary purpose is to help farmers, to induce the lending officer to make improper loans. They tried to game the system, and will now find themselves in federal prison for their crimes, ” said U.S. Attorney Michael Moore.
The case was investigated by the Federal Bureau of Investigation, Thomasville and the United States Secret Service, Albany. The case was prosecuted by Assistant United States Attorneys Jim Crane and Leah McEwen.Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney's Office at (478) 621-2603.
Fake War Hero Pleads Guilty to Stealing Government Funds and Making False StatementsRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Walter Clarence Eatman (68, St. Cloud) yesterday pleaded guilty to theft of government funds and making false statements. Eatman faces a maximum penalty of 15 years in federal prison. The sentencing hearing is scheduled for May 16, 2014, at 9:30 a.m., before Senior U.S. District Judge Richard A. Lazarra.
According to court documents, between July 2008 and July 2013, Eatman, a veteran of the United States Marine Corps, applied for and received United States Department of Veterans Affairs compensation benefits based upon fraudulent information that he submitted to the VA. Specifically, on July 8, 2008, Eatman filed an application for compensation benefits based upon post-traumatic stress disorder (PTSD), hearing loss, and tinnitus. He also falsely claimed that he was a Vietnam combat veteran, that he served in Vietnam from August 15, 1965 to August 15, 1967, and that he was awarded a Purple Heart. Eatman subsequently altered his military discharge paperwork to falsely reflect service in Vietnam, receipt of a Purple Heart and a Bronze Star, and submitted the fraudulent paperwork to the VA. In fact, Eatman never served in Vietnam or received a Purple Heart or a Bronze Star. Based upon his false claims and representations, Eatman received approximately $106,040.00 in government money and benefits, including mental health care and medication, to which he was not entitled.
In September 2010, Eatman attempted to obtain an increase in his VA benefits for PTSD by falsely claiming that he was haunted by his combat experiences in Vietnam. Eatman lied about being wounded in combat, and again claimed to have received a Purple Heart. Eatman tricked a VA psychologist into believing that he was a decorated combat veteran suffering from PTSD. Eatman received a letter from the VA psychologist documenting his alleged condition. He then mailed the letter to the VA Regional Office in St. Petersburg, along with a “statement in support of claim” on which Eatman wrote, “Attached please find new additional information supporting medical evidence for my current claim for increased compensation for PTSD and my claim for individual unemployability.”
This case was investigated by United States Department of Veterans Affairs, Office of Inspector General. It is being prosecuted by Assistant United States Attorney Amanda C. Kaiser.
Fairfield Man Sentenced to 4 Years in Prison for Possessing Stolen FirearmsRead the Press Release
Follow @SDILNewsChance W. Young, 29, of Fairfield, Illinois, was sentenced today in United States District Court in Benton to a term of 48 months’ imprisonment for possessing 4 stolen firearms, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. Young was charged with the offense in an indictment returned by a Federal Grand Jury on September 4, 2013, and pled guilty to the charge on November 15th.
Evidence introduced in support of the guilty plea and sentence showed that Young broke into a rural Wayne County residence in late July 2013 and stole a number of items including 3 shotguns and 1 rifle. Two of the guns, which Young subsequently sold, were recovered by law enforcement agents. The other two remain missing.
In addition to the 48 month term of imprisonment, Young was ordered to pay fines and special assessments totaling $350 and was placed on a 2 year term of supervised release to follow his incarceration.
Young has been held without bond since his arrest on the federal charges and was again remanded to the custody of the United States Marshal to await designation to a Federal Bureau of Prisons facility.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and the Wayne County Sheriff’s Department, with the assistance of the Bureau of Alcohol, Tobacco, and Firearms.
The case was prosecuted by Assistant United States Attorney James M. Cutchin.
Ex-Marine Receives 210-Year Federal Prison Sentence for Drugging and Raping Girls in CambodiaRead the Press Release
LOS ANGELES – A retired Marine Corps captain who was convicted of drugging and sexually abusing girls in Cambodia was sentenced today to 210 years in federal prison.
Michael Joseph Pepe, 60, of Oxnard, was convicted by a jury in May 2008 of seven felony counts for traveling to Cambodia to engage in illicit sexual conduct with minors.
Pepe was sentenced by United States District Judge Dale S. Fischer, who also ordered the defendant to pay $247,000 in restitution to his victims.
At today’s sentencing hearing, Judge Fischer said what is essentially a life sentence is appropriate for a defendant who has shown no remorse for his crime. “Monstrous does not begin to capture the horror of the crime or the impact on the victims,” Judge Fischer said.
During the trial, prosecutors presented testimony from six of the seven girls Pepe sexually abused. The girls, who were between the ages of 9 and 13 at the time of the abuse, testified that Pepe drugged, bound, beat and raped them. Several victims testified that Pepe required them to give him sexual massages and perform oral sex on him on a daily basis.
“Predators cannot hide in foreign nations to conceal their deviant sexual desires,” said United States Attorney André Birotte Jr. “Our efforts to coordinate with law enforcement around the world have resulted in the identification and prosecution of Americans who are exploiting the children in other countries. This lengthy sentence should serve as a stern warning to other pedophiles.”
In addition to the victims’ testimony, prosecutors presented corroborating evidence seized by the Cambodian National Police from Pepe’s Phnom Penh residence, including rope and cloth strips used to restrain the victims, Rohypnol and other sedatives, and homemade child pornography. The investigation was led by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
“This sentence should serve as a sobering warning to every sexual predator who thinks they can hide from the law by violating the innocence of children overseas,” said Claude Arnold, special agent in charge of HSI Los Angeles. “This defendant abused and exploited young people in a distant land who had no means to escape and no way to fight back. It’s entirely fitting that Mr. Pepe will spend the rest of his life behind bars, since his victims will likely bear the emotional scars of his abuse for the remainder of theirs.”
The prostitute who acted as Pepe’s broker testified on videotape about bringing young victims to his residence. Pepe paid the broker and the victims’ families for unlimited access to the girls.
“This sentence clearly demonstrates to the Cambodian people that the United States will not tolerate this type of abuse,” said William E. Todd, the United States Ambassador to Cambodia. “This sentence not only signals to the Cambodian victims our commitment to justice, but it will also act as a powerful deterrent for those individuals who are contemplating traveling to Cambodia to engage in illegal sexual activity with minors.”
HSI received substantial assistance in the investigation from the Department of State’s Diplomatic Security Service and the Cambodian National Police.
Pepe was prosecuted under the provisions of the PROTECT Act, which took effect in 2003. The act substantially strengthened federal laws against predatory crimes involving children outside the United States by adding new crimes and increasing sentences.
Release No. 14-027
Doctor Admits Taking Bribes in Test-Referrals Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – A pediatrician with a practice in Staten Island and Brooklyn, N.Y., admitted today he accepted bribes in exchange for test referrals as part of a long-running scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, N.J., its president and numerous associates, New Jersey U.S. Attorney Paul J. Fishman announced.
Demetrios Gabriel, 46, of Brooklyn pleaded guilty today before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with one count of accepting bribes.
Including Gabriel, 24 people – 13 of them physicians– have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies.According to documents filed in this and related cases and statements made in court: Gabriel admitted he accepted bribes in return for referring patient blood specimens to BLS and was paid more than $4,500 per month. Gabriel received a flat fee of $3,000 per month in cash, plus additional cash based on the number of patient blood samples his pediatric practice referred to BLS each month. In addition, Gabriel received $1,500 per month through credit card payments to a restaurant he owns.
The bribery count to which Gabriel pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for July 18, 2014. As part of his guilty plea, Gabriel agreed to forfeit $200,000, representing the bribes he received from BLS.
The investigation has recovered more than $7 million to date through forfeiture.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Thomas O’Donnell; IRS– Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s guilty pleas.
The government is represented by Senior Litigation Counsel Andrew Leven, Assistant U.S. Attorney Joseph Minish, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $520 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
14-070Defense counsel: Joseph Corozzo Esq., New York
Gabriel Information
District Woman Sentenced to Five Years in Prison for 2011 Attack at Northwest Washington Bus Stop-Defendant Chased After Woman, Brandishing A Butcher Knife-Read the Press Release
WASHINGTON – Malika Fateen, 31, of Washington, D.C., has been sentenced to a five-year prison term for an unprovoked attack in which she went after a woman with a butcher knife at a bus stop, U.S. Attorney Ronald C. Machen Jr. announced today.
Fateen was found guilty by a jury in the Superior Court of the District of Columbia in November 2013 of charges of assault with a deadly weapon and carrying a dangerous weapon. She was sentenced on Feb. 27, 2014, by the Honorable William M. Jackson. Upon completion of her prison term, Fateen is to be placed on three years of supervised release.
According to the government’s evidence, on Oct. 17, 2011, at about 7 p.m., Fateen sat down beside the victim, a stranger, on a bench at a bus stop at 14th and Underwood Streets NW. Fateen was dressed in a purple medieval costume, including a cap. The victim had earlier placed a large cardboard box down on the same bench. Fateen verbally threatened the victim and then brandished the large butcher knife, stabbing the box. She then stood up and chased the victim as she ran into the street, with the knife raised above her head and pointed at the woman. The victim flagged down a passing taxicab, and rode to a nearby neighborhood, where she called police.
The case marked Fateen’s third conviction for violent offenses.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case for the Metro Transit Police and the Metropolitan Police Department. He also acknowledged the efforts of those who handled the case for the U.S. Attorney’s Office, including Litigation Technology Specialist Leif Hickling, Paralegal Specialist Todd McClelland, and Assistant U.S. Attorney David M. Rubenstein, who provided assistance at trial. Finally, he expressed appreciation for the work of Assistant U.S. Attorney Scott E. Ray, who prosecuted the case.
14-054District Woman Pleads Guilty to Manslaughter in Death of Infant at Northeast Washington ConventAdmits Killing Child Shortly After Giving BirthRead the Press Release
WASHINGTON – Sosefina Amoa, 26, formerly of Samoa, pled guilty today to a charge of voluntary manslaughter in the death of her infant son, who was born within a week after she moved into a convent in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Amoa pled guilty to the charge in the Superior Court of the District of Columbia. The Honorable Robert E. Morin scheduled sentencing for May 23, 2014.
According to a proffer of facts presented at the plea hearing, Amoa arrived in the United States from Samoa on Oct. 5, 2013. She then entered a program to become a member of the Little Sisters of the Poor, an international congregation of Roman Catholic women who provide worldwide service to the elderly poor. She was considered a “Postulant,” a person who wanted to be admitted into a religious order. Amoa moved into the Little Sisters of the Poor’s convent in Northeast Washington, where she was to reside for five months while she received religious classes, learned doctrine, experienced prayer and community life, and cared for residents.
On Thursday, Oct. 10, 2013, Amoa asked to be excused from her duties and went to her room. The baby was born in Amoa’s room that morning. Amoa cleaned the room in what authorities determined was an attempt to hide the birth of the child.
The following morning, Oct. 11, 2013, Amoa contacted one of the Sisters and took her to her room, where she showed her the baby. The Sister knew that the infant was dead.
Amoa gave conflicting accounts to the Sisters and police about what happened. Ultimately, on Oct. 16, 2013, she told detectives with the Metropolitan Police Department (MPD) that, after she gave birth to the child, the baby fell to the floor. She said that she got on the floor next to the baby, not knowing what to do, and that she was afraid that someone would hear crying and learn of her pregnancy. According to Amoa, she then placed a wool garment over the baby’s nose and mouth and applied pressure with her hand for two to three minutes.
The District of Columbia Office of the Medical Examiner determined that the cause of death was asphyxia. The infant was a fully developed, full-term baby, born alive. There was evidence in the lungs that the baby had cried and had been alive before being asphyxiated. Additionally, there was bruising and scratches to the infant’s nostrils.
In announcing the plea, U.S. Attorney Machen commended the work of the detectives, officers, and others who investigated the case from the Metropolitan Police Department. He also expressed appreciation to the District of Columbia Office of the Medical Examiner and the District of Columbia Department of Forensic Sciences for assistance in the investigation. Finally, he acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Kelly Blakeney, Victim/Witness Advocates Marcia Rinker and Lorraine Chase, and Assistant U.S. Attorney Cynthia G. Wright, who is prosecuting the case.
14-053District Man Sentenced to 50 Years in Prison for Two Carjackings and Other Crimes-Defendant Attacked A Total of Six Victims; Two Were Pistol-Whipped-Read the Press Release
WASHINGTON - Tavon Johnson, 24, of Washington D.C., was sentenced today to a prison term of 50 years on armed carjacking and armed robbery charges involving multiple incidents spread over two separate days, U.S. Attorney Ronald C. Machen Jr. announced.
Johnson was found guilty by a jury in November 2013, following a trial in the Superior Court for the District of Columbia, of two counts of armed carjacking, one count of assault with intent to rob while armed, four counts of armed robbery, one count of aggravated assault while armed and related additional offenses. He was sentenced by the Honorable Robert I. Richter.
According to the government’s evidence, the series of crimes began at about 6:30 p.m. on Feb 26, 2013, when Johnson targeted a young woman parking her car in the 100 block of W Street NW. Wearing a mask, Johnson approached the woman, brandished a firearm, and demanded her car.
Johnson then used the victim’s car as he continued to commit other crimes that night. With the help of an accomplice, and while still masked, Johnson attempted to steal property from a man at about 9 p.m. in the 1700 block of 29th Street SE. In the course of that crime, the victim was pistol-whipped by Johnson and his accomplice before breaking free. Johnson and his accomplice then robbed two people at about 10 p.m. in the 4900 block of Jay Street NE.
Johnson continued his crime spree at about 3 p.m. on March 2, 2013 when he and an accomplice, again wearing masks, targeted two young men packing up a pick-up truck in the 5100 block of Hunt Street NE. When the owner of the truck resisted giving his keys to Johnson and his accomplice, they pistol-whipped the victim, causing him to fall unconscious to the ground. Before leaving the scene in the victim’s truck, Johnson and his accomplice took the victim’s cell phone, while he lay unconscious on the ground. They also took property from the other victim who just witnessed his friend fall to the ground.
Members of the Metropolitan Police Department (MPD) spotted Johnson driving the stolen truck at about 8 that night. Johnson was arrested after he led the police on a high-speed car chase through multiple neighborhoods throughout the city.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Kalisha Johnson-Clark, Litigation Technology Specialist Leif Hickling, and Victim/Witness Advocate Jennifer Clark. Finally, he commended the work of Assistant U.S. Attorneys Crystal Flournoy and Clayton O’Connor, who investigated and tried the case.
14-052