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Wednesday 8 January 2014
Hilton Man Sentenced on Drug ChargesRead the Press Release
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Domenico Lonardo, 36, of Hilton, N.Y., who was convicted of manufacturing 100 or more marijuana plants, was sentenced to 60 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Charles E. Moynihan, who handled the case, stated that Lonardo was arrested on April 15, 2010, after members of law enforcement executed a search warrant at his residence at 199 Walker Road, in Hilton. Upon entering the location, officers found a sophisticated indoor marijuana growing operation. During the search, officers located and seized approximately 130 marijuana plants in various stages of growth, marijuana cultivation equipment, including growing lights, generators, exhaust fans, and automatic timers, liquid Lysergic Acid Diethylamid, or “LSD,” as well as other controlled substances. Officers also seized approximately $690.00 in United States currency, a shotgun with a barrel that had been shortened and ammunition.
The sentencing is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge brian R. Crowell, New York Field Division, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero, Special Agent in Charge, and the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major Wayne C. Olson.Harvard Couple Plead Guilty to Fair Labor Standards Act ViolationDefendants Failed to Pay Their Nanny Minimum Wage for More Than 13 YearsRead the Press Release
Boston – A Harvard, Mass. couple today pleaded guilty to an Information in federal court charging them with one count of violating the Fair Labor Standards Act. The couple failed to pay their nanny and housekeeper minimum wage for over 13 years. As part of their plea agreement, the defendants will pay the nanny a substantial portion of the wages owed her.
Martha, 48 and Richard Smalanskas, 49, hired a 16-year-old Bolivian nanny, in Bolivia, to cook, clean and take care of their children. After three years, they brought her to the United States under false documentation which made it appear as if the nanny was related to them. Once here, her travel documents were taken away and she was required to work long hours. She was promised, but not paid, a wage of up to $150 per month even though the nanny was working 80 hours per week. The Smalanskases were aware that they were not paying the nanny minimum wage; in fact, the total amount they paid her over those years was less than $2,500, plus the room and board they provided.
The Smalanskases face up to one year probation, a $10,000 fine and restitution. Sentencing is set for April 2, 2014.
Grand Jury Returns IndictmentsRead the Press Release
MINNEAPOLIS—A federal grand jury in the District of Minnesota, sitting in Minneapolis, recently returned the following indictments. You are advised that a charge is merely an accusation, and that a defendant is presumed innocent until and unless proven guilty. Any sentence is determined by a federal district judge.Brooklyn Park man charged with bank robbery
Tearise Breon Baugh, age 23, of Brooklyn Park, was charged with one count of armed bank robbery and one count of brandishing a firearm during and in relation to a crime of violence.
If convicted, Baugh faces a potential maximum penalty of 25 years in prison on the bank robbery count, and a mandatory consecutive penalty of seven years on the brandishing count. This case is the result of an investigation by the Blaine Police Department, and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorneys Andrew Dunne and Manda M. Sertich.Three men charged with conspiring to possess with intent to distribute over 5 kilograms of methamphetamine
Jorge Urbina Murguia, age 51, Heriberto Plancarte-Barrigan, age 19, and Gilberto Hernandez-Betancourt, age 22, were each charged with one count of conspiracy to possess with intent to distribute methamphetamine. In addition, Plancarte-Barrigan and Hernandez-Betancourt were each charged with one count of attempted possession with intent to distribute methamphetamine.
If convicted, the defendants each face a potential maximum penalty of life in prison. This case is the result of an investigation by the United States Drug Enforcement Administration.St. Paul man charged with possessing a Molotov cocktail
Michael John Walker, age 45, of St. Paul, was charged with one count of possession of an unregistered firearm or destructive device.
If convicted, Walker faces a potential maximum penalty of ten years in prison. This case is the result of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Minneapolis Police Department. It is being prosecuted by Assistant U.S. Attorney Amber M. Brennan.Grand Jury Returns IndictmentsRead the Press Release
MINNEAPOLIS—A federal grand jury in the District of Minnesota, sitting in St. Paul, recently returned the following indictments. You are advised that a charge is merely an accusation, and that a defendant is presumed innocent until and unless proven guilty. Any sentence is determined by a federal district judge.Minneapolis felon charged with possessing a nine-millimeter handgun
Randolph Seth Anderson, age 42, of Minneapolis, is charged with one count of being a felon in possession of a firearm. Because he is a felon and three or more of his prior convictions were for violent crimes, Anderson is subject to the federal armed career criminal statute, which mandates a minimum sentence of 15 years in federal prison upon conviction.
This case is the result of an investigation by the Minneapolis Police Department, and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Amber M. Brennan.El Salvador citizen charged with illegal re-entry into U.S.
Ana Maria Ortiz, age 43, a citizen of El Salvador found in the Minnesota Correctional Facility in Shakopee, is charged with one count of illegally re-entering the United States after previously being deported subsequent to a conviction for an aggravated felony.
If convicted, Ortiz faces a potential maximum penalty of 20 years in prison. This case is the result of an investigation by the U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations. It is being prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.Honduras citizen charged with illegal re-entry into U.S.
Jorge Alberto Ortiz-Martinez, age 48, a citizen of Honduras, is charged with one count of illegally re-entering the United States after previously being deported subsequent to a conviction for an aggravated felony.
If convicted, Ortiz-Martinez faces a potential maximum penalty of 20 years in prison. This case is the result of an investigation by the U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations and is being prosecuted by Assistant U.S. Attorney Sarah E. Hudleston.Man charged with escaping from custody
Leland Wayne Thompson, age 35, of South Dakota, was charged with one count of escape from custody.
If convicted, Thompson faces a potential maximum penalty of five years in prison. This case is the result of an investigation by the U.S. Marshals Service. It is being prosecuted by Assistant U.S. Attorney David P. Steinkamp.Geneva Man Sentenced on Child Pornography ChargeRead the Press Release
ROCHESTER, N.Y.B U.S. Attorney William J. Hochul announced today that Horace Daniels, 71, of Geneva, N.Y., who was convicted of possession of child pornography, was sentenced 10 years supervised release by U.S. District Court Judge David G. Larimer.
Assistant U.S. Attorney Marisa J. Miller, who handled the case, stated that the defendant downloaded and distributing child pornography, via a peer-to-peer file sharing network. Daniels came to the attention of law enforcement during an undercover investigation, during which officers downloaded images of child pornography from the defendant on 10 dates in August and September 2012. Thereafter, officers executed a search warrant at the defendant’s home in Geneva, where they recovered items of digital media. The items seized contained images of children, many of whom were under the age of 12, engaged in sexually explicit conduct, and many of which depicted acts of violence. At sentencing, the defendant was subject to a recommended sentencing guideline range of 97 to 120 months in prison.
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.
The sentencing is the culmination of an investigation on the part of immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.Founder of Ukraine-Based Hardcore Child Pornography Website Admits Guilt, Will Be Sentenced to 30 Years in PrisonRead the Press Release
Investigation Led to Conviction of More Than 600 American Subscribers to Illegal Site
NEWARK, N.J. – A Ukrainian man who founded and ran an international hardcore child sexual abuse website today admitted his role in a child exploitation enterprise and agreed to a 30-year prison term, U.S. Attorney Paul J. Fishman announced.
Maksym Shynkarenko, 35, of Kharkov, Ukraine, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to Count 31 of an indictment charging him with conducting a child exploitation enterprise in connection with a website he operated between 2005 and 2008. Shynkarenko was initially detained in Thailand in January 2009 pending extradition. He was transported to the United States and has been in custody in the United States since making his initial court appearance in June 2012.
The investigation into the website Shynkarenko operated has led to convictions in 47 states of more than 600 American consumers of hardcore images of children being sexually assaulted and abused.
“The guilty plea of Maksym Shynkarenko is the capstone to an operation that has led to the imprisonment of hundreds of offenders who traded in recorded images of horrific child abuse and torture,” U.S. Attorney Fishman said. “Because of today’s technology, the images of that abuse will be available for years. It’s fitting that Shynkarenko will spend the next three decades of his life in a prison cell paying for the pain from which he has profited.”“The HSI investigation leading to today’s plea resulted in convictions of 600 American consumers of child pornography in 47 states, dozens of whom were previously convicted sex offenders,” Andrew McLees, special agent in charge of HSI in Newark, said. “Today’s plea again underscores HSI’s commitment to taking those who distribute and sell graphic images and videos of child pornography off the street. Shynkarenko founded and operated a website that offered subscribers access to thousands of despicable images and videos of child sexual abuse. As we did in this case, HSI and our international law enforcement partners will continue to use every tool at our disposal to track down those who exploit children and bring them to justice.”
According to documents filed in this case and statements made in court:
From at least 2005 through mid-2008, Shynkarenko operated from Ukraine a website that he helped design, and which offered access to thousands of images and videos of child sexual abuse. Subscribers typically paid a fee of $79.99 for a 20-day subscription to the website. Shynkarenko worked in conjunction with other individuals, including an individual from Siberia who helped process credit card payments in a way that disguised the true nature of what was purchased. Shynkarenko and the other individuals operating the website granted access to images and videos of child pornography to subscribers on hundreds of occasions from 2005 to 2008. Shynkarenko said he worked with other individuals who advertised the child pornography website over the Internet under names such as “Illegal.CP” and “Pedo Heaven.”
Agents of U.S. Immigration and Customs Enforcement, Homeland Security Investigations, first located the child pornography website operated by Shynkarenko in October 2005 – based in part on e-mails recovered from the computer of an individual in Long Branch, N.J. At that time, the banner page of the site identified it as “Illegal.CP,” and the page featured more than a dozen images of minors engaged in sexual acts with other minors and adults. That page declared “[n]ow you are in [sic] few minutes away from the best children porn site on the net!” and “[i]f you join this site you will get tons of uncensored forbidden pics . . . forbidden stories, of course, many videos.” The words “join now” appeared at the top and bottom of the page.
An ICE agent, acting in an undercover capacity, purchased a 20-day subscription to the “Illegal.CP” website in October 2005 and the next day received an e-mail that provided a login and a password and indicated that the credit card charges for $79.99 would appear on the subscriber’s credit card bill as “ADSOFT.” Upon accessing the “Illegal.CP” website, the initial page warned subscribers as follows:
FAQ, Please read. “Our site is considered to be illegal in all countries....Even if you ever have problems with police, you can always say that someone had stolen the information from your credit card and used it. It is very difficult to establish that you were the person to pay.”
ICE HSI agents determined that the site contained thousands of what appeared to be images of child sexual abuse, both still images and videos, and that it offered the purchase of additional videos through the website.
Working with the U.S. Attorney’s Office for the District of New Jersey, ICE HSI agents in Newark were able to identify hundreds of individuals who subscribed to the “Illegal.CP” website between November 2005 and February 2006. Those leads, largely developed through agents’ monitoring of the website, led to what became a three-phase investigation: Operation Emissary, Emissary II, and Thin Ice. In late 2006, agents recovered a database of hundreds of additional individuals whose credit cards had been processed while subscribing to the “Illegal.CP” website. During the third phase in 2008, the continued investigation by ICE HSI agents focused more on the operators of the website, including Shynkarenko, and recovered evidence of hundreds of additional individuals who had attempted to subscribe.
The leads, along with master search warrants prepared by the New Jersey U.S. Attorney’s Office, were distributed to ICE HSI offices and U.S. Attorney’s Offices throughout the nation. The investigation has led to the conviction of more than 600 individuals in 47 states, making the investigation one of the most successful child sexual abuse investigations in the nation’s history. A list of the more than 600 American consumers convicted as a result of the investigation and the sentences they received is appended to this release.
The child exploitation enterprise count to which Shynkarenko pleaded guilty carries a maximum potential penalty of life imprisonment and a mandatory minimum sentence of 20 years in prison. Under the terms of the plea agreement, the court will sentence Shynkarenko to a term of 30 years in prison. The count also carries a maximum fine of $250,000 or twice the gross amount of any pecuniary gain derived from the offense. Sentencing is scheduled for April 15, 2014.
U.S. Attorney Fishman credited special agents of ICE HSI, under the direction of Special Agent in Charge Andrew McLees, for the investigation leading to today’s guilty plea. He also thanked the United States Marshals Service, under the direction of U.S. Marshal Juan Mattos Jr., for its work in transporting Shynkarenko from Thailand, as well as acknowledging the important work of Thai authorities. U.S. Attorney Fishman also thanked the numerous ICE HSI offices and U.S. Attorney’s Offices around the country who prosecuted the cases that secured the 600 convictions achieved during Operations Emissary and Operation Thin ICE, and thanked the Department of Justice’s Office of International Affairs and Child Exploitation and Obscenity Section for their important roles. He noted the invaluable assistance provided by MasterCard and Visa officials during the course of the investigation.
The government is represented by Assistant U.S. Attorneys Mark J. McCarren and Danielle Walsman of the U.S. Attorney’s Office in Newark and Assistant U.S. Attorney Harvey Bartle in Trenton.
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Defense counsel: Nicholas Wooldridge Esq. and Arkady Bukh Esq., Brooklyn, N.Y.
Shynkarenko Indictment
Thin Ice - Emissary Offender ListFort Myers Man Sentenced to 6 Years in Prison for Bank Fraud and Investor FraudRead the Press Release
Fort Myers, Florida – U.S. District Judge John E. Steele yesterday sentenced Gregory Wayne Eagle (63, Cape Coral) to six years in federal prison for bank fraud, mail fraud, and wire fraud. Eagle pleaded guilty on March 14, 2013.
According to court documents, Eagle was president and director of Eagle Realty of
Southwest Florida, Inc. In June 1990, Eagle created a Trust Agreement for approximately 101 acres of unimproved land, in Cape Coral. A portion of this land bordered on Pine Island Road. Eagle was the trustee of this Pine Island 101 Land Trust and was also one of its beneficiaries, along with 52 named combined interest holders or beneficiaries. Eagle mortgaged the trust property without the knowledge of the other beneficiaries. He did so by submitting fraudulently altered trust agreements to multiple banks naming him, or an entity which he controlled, as the sole beneficiary.Eagle also executed a number of loan documents, in which he falsely claimed to be the sole beneficiary, and that he had authorization to mortgage the property. In the first mortgage loan, in 2002, Eagle received $2 million from Florida Community Bank. He paid off that loan in 2006, with a mortgage loan from First National Bank of Pennsylvania. The 2006 loan was for an amount exceeding $17 million. Eagle used most of the proceeds of the second loan for his own personal use, mainly to fund other projects. He defaulted on the First National Bank of Pennsylvania mortgage loan, causing the bank to initiate foreclosure proceedings, in October 2009, leaving an unpaid principal balance of $17.03 million. The beneficiaries of the Pine Island 101 Land Trust have not received compensation for their initial payments as interest holders, yearly payments, nor for the increase in the value of the Trust property from the time of its inception.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
Former U.S. Postal Carrier Sentenced to Probation, Fined, Ordered to Pay Restitution for Theft of MailRead the Press Release
PROVIDENCE, R.I. – Brett Beauchamp, 29, of Woonsocket, R.I., a former U.S. Postal Service carrier, was sentenced today to 3 years federal probation, fined $3,000 and ordered to pay restitution for rifling through greeting cards he was to have delivered and stealing some of the contents, announced United States Attorney Peter F. Neronha and Rafael Medina, Special Agent in Charge of the Northeast Area Field Office of the U.S. Postal Service Office of Inspector General (USPS OIG).
According to information presented to the court, based on customer complaints of tampered with or missing mail, on November 8, 2011, agents from the USPS OIG performed a live test and surveillance of Beauchamp while he was delivering mail in Woonsocket. Investigators were alerted by a beeper that indicated Beauchamp had opened a test greeting card. Agents confronted Beauchamp and retrieved 28 rifled greeting cards and letters from the rear of his Postal vehicle. They also recovered $100.00 in cash from Beauchamp, $65.00 the agents had placed in the test greeting card and an additional $35.00 Beauchamp admitted to having removed from other mail he opened that day.
Beauchamp pleaded guilty on October 16, 2013, to theft of mail by a Postal Service employee. He resigned his position as a Postal carrier prior to today’s sentencing hearing before U.S. District Court Judge John J. McConnell, Jr.
The case was prosecuted by Assistant U.S. Attorney Richard W. Rose.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Former Texas Association of School Boards (TASB) Workers Compensation Claims Administration Director Pleads Guilty to Mail Fraud ChargesRead the Press Release
In Austin today, Herman G. Wilks, former Department Director of Workers’ Compensation Claims Administration for the Texas Association of School Boards, Inc. (TASB), pleaded guilty to stealing over $500,000 from the TASB’s Risk Management Fund announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Armando Fernandez, San Antonio Division.
The TASB is a voluntary, non-profit, statewide educational association that serves and represents local Texas school districts, regional education service centers, community colleges, and tax appraisal districts. One of the products and services offered by TASB to its members is the TASB Risk Management Fund. The TASB Risk Management Fund provides specific coverage to members through their requisite financial contributions into the risk management pool. This coverage can then apply with regard to unemployment compensation claims, workers' compensation claims, auto, liability and property programs. Wilks’ TASB duties included the supervision of setting up member school districts' workers' compensation claims, adjudicating medical bills and carrying out the utilization, management and pre-authorization functions required by the workers' compensation statutes. Pursuant to his title and area of responsibility at TASB, Wilks had control over and direct access to the entire claimant pay process by which TASB accepted and paid workers' compensation claims for its contributing members by way of the TASB Risk Management Fund.
Appearing before U.S. District Judge Sam Sparks this morning, Wilks pleaded guilty to ten counts of mail fraud. By pleading guilty, Wilks admitted that from April 2008 until March 2013, he unlawfully obtained approximately $514,400 from TASB via the TASB Risk Management Fund by submitting fraudulent workers’ compensation claims on behalf of Medco Implantable Supply, a company he created for the sole purpose of carrying out his fraudulent scheme, for products and services that were never actually ordered, provided or rendered.
“Like many defendants, Mr. Wilks undoubtedly concocted his scheme of setting up a dummy company to steal hundreds of thousands of dollars from the TASB Risk Management Fund with full confidence that he would get away with it. This prosecution should remind would-be thieves like Mr. Wilks that their schemes will be discovered and they will lose not only their ill-gotten gain, but their livelihoods, reputations and quite likely their freedom as a result,” stated U.S. Attorney Pitman.
Wilks faces up to 20 years in federal prison per count. He is currently out on bond pending sentencing which has yet to be scheduled.
This indictment resulted from an investigation conducted by the Federal Bureau of Investigation. Assistant United States Attorney Ashley Hoff is prosecuting this case on behalf of the Government.
Former Senator Alvin L. Williams, Jr. Sentenced to 52 Months in Prison for RacketeeringRead the Press Release
St. Thomas, USVI -- District Court Judge Curtis V. Gomez today sentenced Alvin L. Williams, Jr., former senator for the Legislature of the Virgin Islands, to 52 months in federal prison for racketeering, announced United States Attorney Ronald W. Sharpe, Federal Bureau of Investigation (FBI) Special Agent in charge Joseph Campbell, United States Marshal Cheryl Jacobs, Virgin Islands Office of the Inspector General Steven van Beverhoudt, Internal Revenue Service Criminal Investigation Division (IRS CID) Special Agent in Charge Daniel W. Auer, U.S. Department of Education Office of Inspector General Special Agent in Charge Yessyka Santana, Drug Enforcement Administration (DEA) Special Agent in Charge Eric Barnard, and Virgin Islands Police Department (VIPD) Commissioner Rodney Querrard.
Williams, 34, was remanded to the custody of the United States Marshals Service to begin serving his sentence at the conclusion of today’s hearing. In addition to the prison sentence, Judge Gomez ordered Williams to serve three years of supervised release upon completion of his prison sentence, pay restitution in an amount to be determined, and perform 300 hours of community service.
On January 17, 2013, Williams pleaded guilty to operating and participating in a criminal enterprise whose members and associates engaged in illegal activities including: bribing a Virgin Islands public official, soliciting and receiving bribes from numerous St. Thomas construction project developers, fraudulently soliciting and increasing staff members’ salaries and using the increase of funds for his personal use, and having staff members fraudulently do his University of Phoenix online course for him during legislative work hours.
In the same hearing, Judge Gomez sentenced co-defendants Kim A. Blackett, 30, and Garry Sprauve, 64, two Virgin Islands legislative staff members who worked with Williams.
Sprauve was sentenced to serve one year in prison and three years of probation, and ordered to pay restitution in an amount to be determined and perform 300 hours of community service. Sprauve previously pleaded guilty to helping Williams bribe construction developers, and also participated with Williams in the fraudulent increase of Sprauve’s legislative salary in order for the increase to be used by Williams.
Blackett was placed on probation, ordered to pay restitution in an amount to be determined, and ordered to perform 300 hours of community service. Blackett previously pleaded guilty to fraudulently completing Williams’ online University of Phoenix course work during legislative work hours.
“Public service is a public trust. Those who violate this trust for personal gain will not escape justice,” U.S. Attorney Sharpe said. “Today’s sentences should be a reminder to all public officials of the possible consequences when they seek to use their office for their own personal gain.”
The case was investigated by the Federal Public Corruption Task Force, which comprises the FBI, United States Marshals Service, IRS-CI, U.S. Department of Education Inspector General, DEA, Virgin Islands Office of the Inspector General, and the VIPD. It was prosecuted by Assistant United States Attorneys Kim R. Lindquist and Kelly B. Lake.
Former Political Consultant Antonio Dill Sentenced to Federal Prison in El Paso Corruption CaseRead the Press Release
This afternoon, former El Paso political consultant Antonio Dill was sentenced to ten months in federal prison followed by two years of supervised release for his role in a “pay-to-play” scheme uncovered during the ongoing public corruption investigation in El Paso announced United States Attorney Robert Pitman and FBI Special Agent in Charge Douglas E. Lindquist.
United States District Judge Frank Montalvo also ordered that the 44–year-old Dill pay a $25,000 fine. Furthermore, Judge Montalvo ordered that Dill surrender to federal authorities on or before February 4, 2014, to begin serving his prison term.
Dill, who pleaded guilty to one count of conspiracy to commit mail fraud and deprivation of honest services, admitted that in 2007, he served as a “middle man” in a bribery scheme involving former El Paso County Judge Anthony Cobos. According to court records, Dill received a $1,500 cash bribe which he forwarded to Cobos for his vote and influence in refinancing approximately $40 million of El Paso County debt and to terminate the then El Paso County financial advisor’s contract to be replaced with another company.
This FBI investigation has resulted in 39 federal convictions -- 36 individuals who entered guilty pleas and three individuals who were convicted by juries.
Assistant United States Attorney Debra Kanof prosecuted this case on behalf of the Government.
Former NYC Public School Teacher Pleads Guilty in Manhattan Federal Court to Falsely Claiming to Have Provided Federally-Funded Tutoring ServicesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that SANDRA ALLEN, a former New York City public school teacher and tutor for TestQuest, Inc (“TestQuest”), an educational services company that provided tutoring services to public school children as part of a federally-funded program, pled guilty yesterday in Manhattan federal court for her role in a scheme to make it appear as if students had received after-school tutoring when, in fact, they had not, thereby enabling TestQuest to obtain federal funds to which it was not entitled. ALLEN pled guilty before U.S. District Judge Alvin K. Hellerstein.
Manhattan U.S. Attorney Preet Bharara said: “Sandra Allen, a former public school teacher, exploited a federally-funded tutoring program meant to help underperforming schools and their students. She falsified records and induced students to lie so that TestQuest could steal substantial sums of federal funding. She will now pay the price for her criminal conduct.”
According to the Information and Superseding Information filed against ALLEN and statements made in related court proceedings:
From 2008 through 2011, the New York City Department of Education (“NYCDOE”) received funds from the federal government to pay for New York City’s Supplemental Educational Services program (“SES”), which included after-school tutoring for students attending underperforming public schools. NYCDOE entered into contracts with private entities and organizations to provide SES tutoring to public school students. Students were eligible to receive SES tutoring if they met certain criteria, such as attending a school that had been identified as needing improvement or restructuring for at least two years. Private entities contracted by NYCDOE to provide SES tutoring were required to have each student who attended a class sign a standard attendance form. The tutor was also required to sign the form, attesting to the fact that he or she provided SES tutoring to those students. Further, as a condition of getting paid for providing tutoring, the private entities were required to certify to the NYCDOE that their attendance records were “true and accurate.”
From 2008 through 2011, TestQuest contracted with NYCDOE to provide SES tutoring. TestQuest provided tutoring at various New York City public schools, including the Monroe Academy of Business and Law/High School of World Cultures (“Monroe”) and the Global Enterprise Academy/Christopher Columbus High School (“Columbus”). TestQuest received millions of dollars in federal funding for tutoring during this time period, including hundreds of thousands of dollars for purported tutoring at Monroe and Columbus alone.
From the 2008/2009 academic year through the 2010/2011 academic year, while working as an SES tutor for TestQuest, ALLEN participated in a scheme to falsify daily attendance sheets to make it appear as if more students had attended TestQuest’s SES classes than had actually attended. ALLEN directed students who had not attended any after-school tutoring to sign daily attendance sheets falsely claiming that they had, in fact, received such tutoring. ALLEN also signed certifications on the attendance sheets, falsely certifying that she had provided after-school tutoring to the students whose names appeared on the attendance sheet when, in fact, she had not.
In addition, during the 2008/2009 academic year, ALLEN enlisted four students to participate in the scheme. Specifically, she directed the four students to find other students to sign daily attendance sheets for SES classes that they had not attended. ALLEN purchased food for the four student “helpers” to reward them for their assistance in the scheme.
ALLEN, 53, of New York, New York, pled guilty to one count of conspiracy to make false statements. She faces a maximum sentence of five years and is scheduled to be sentenced by U.S. District Judge Alvin K. Hellerstein on April 25, 2014 at 11:30 am. Civil charges that were previously filed against ALLEN for her role in the fraudulent billing scheme remain pending.
TestQuest previously agreed to pay the Government $1,725,000 in damages and penalties under the False Claims Act in connection with the billing scheme. TestQuest also agreed not to participate in any federal procurement or non-procurement transactions for a period of three years.
Mr. Bharara thanked the United States Department of Education’s Office of Inspector General for its extraordinary assistance in this case.
The criminal case is being handled by the Complex Frauds Unit, and Assistant U.S. Attorneys Joseph P. Facciponti and Christopher B. Harwood are in charge of the prosecution. The civil case is being handled by Christopher B. Harwood of the Office’s Civil Frauds Unit.
U.S. v. TestQuest et al. Amended Complaint
Former Mendenhall Police Chief Pleads Guilty to Conspiracy to Commit Extortion, Bribery and TheftRead the Press Release
Jackson, Miss – Bruce Barlow, 50, former Chief of Police for the Mendenhall Police Department, in Mendenhall, Mississippi, pled guilty today in U.S. District Court to conspiracy to commit extortion, bribery and theft during this tenure as Mendenhall police chief, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen.
A federal grand jury returned an indictment against Barlow on February 5, 2013, charging him with conspiracy, extortion, bribery and witness tampering. A subsequent superseding indictment was returned against Barlow on May 14, 2013 which included additional charges of bribery, theft, and obstruction of justice.
From January 2010 through July 2010, Barlow instructed Mendenhall police officers to pull people over and find ways to get access into and search people’s vehicles. He also instructed his officers to seize cash at every arrest, including money from people arrested for misdemeanor charges.
When Barlow was interviewed by FBI agents on March 7, 2013, he admitted to stealing money and property, and allowing others to take property, that had been taken from victims after an arrest or detention and seized by the Mendenhall Police Department.
As part of his plea agreement, Barlow agreed to make restitution to the victims of the crime and forfeit any money or property related to the crime. Barlow also agreed to never be employed by any governmental entity in the future.
Barlow will be sentenced by Senior U.S. District Judge David C. Bramlette III on March 25, 2014 at 10:30 a.m. Conspiracy carries a maximum sentence of five years in prison and a $250,000 fine. Bribery and theft carry a maximum sentence of ten years in prison and a $250,000 fine. Extortion, obstruction of justice and witness tampering carry a maximum sentence of 20 years in prison and a $250,000 fine.
This case was investigated by the Federal Bureau of Investigation, the Simpson County Sheriff’s Office, and the Mississippi State Auditor’s Office. Assistant U.S. Attorneys Mike Hurst and Mary Helen Wall are prosecuting the case.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Help us combat the proliferation of sexual exploitation crimes against children.
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Former Immigration Enforcement Agent Pleads Guilty in Manhattan Federal Court to Participating in Narcotics ConspiracyRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, announced that KORDELL NESBITT pled guilty today to charges arising from his involvement in a conspiracy to distribute cocaine and marijuana. NESBITT, at the time an Immigration Enforcement Agent (“IEA”) with the Department of Homeland Security, Immigration and Customs Enforcement, arranged for the shipment of marijuana into the New York City area for distribution in the Bronx. NESBITT was charged in July 2013 and pled guilty today before U.S. District Court Judge Jesse M. Furman.
Manhattan U.S. Attorney Preet Bharara said: “Federal agents are supposed to uphold our nation’s laws, not break them. Kordell Nesbitt broke laws that he swore to enforce when he played an integral role in a cocaine and marijuana conspiracy. His successful prosecution underscores our commitment to holding accountable law enforcement officers who engage in unlawful activity.”
According to the Indictment to which NESBITT pled guilty, statements made during the plea proceeding, and other court documents:
Throughout his involvement in the conspiracy, NESBITT was an IEA with U.S. Immigration and Customs Enforcement (“ICE”). Among other duties, he was responsible for escorting detained aliens both within the United States and internationally to foreign countries. In this capacity, NESBITT was authorized to carry a firearm at all times, and was able to avoid screening measures at airports to which civilian travelers are typically subjected.
From at least May 2013, NESBITT sought to arrange for the shipment of cocaine and marijuana into the New York City area. Ultimately, NESBITT succeeded in coordinating the shipment of pound quantities of marijuana to an apartment in the Bronx. Once the package reached its destination, NESBITT personally coordinated sales of the narcotics within the packages using his cellular phone, sending drug customers to the apartment where a co-conspirator executed the sales. Charges against two alleged co-conspirators, Christopher Sinceno and Sherisse Thompson, remain pending.
NESBITT, 26, of the Bronx, New York, pled guilty to one count of engaging in a conspiracy to violate the narcotics laws of the United States, namely, to distribute controlled substances containing marijuana and cocaine. He faces a maximum sentence of five years in prison.
Mr. Bharara praised the investigative work of the Department of Homeland Security, Office of the Inspector General and the Immigration and Customs Enforcement Office of Professional Responsibility. He also thanked ICE’s Homeland Security Investigations for its assistance in the investigation.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant United States Attorney Martin S. Bell is in charge of the prosecution.
The charges against Thompson and Sinceno are merely accusations, and those defendants are presumed innocent unless and until proven guilty.
U.S. v. Kordell Nesbitt and Christopher Sinceno Indictment
Former Head Teller Pleads Guilty to Bank EmbezzlementRead the Press Release
Volunteer State Bank Employee Admits Taking Over $264,000
Kaley Gregory, 29, of Gallatin, Tennessee, pleaded guilty on January 3, 2014, to one count of bank embezzlement, announced David Rivera, United States Attorney for the Middle District of Tennessee.
At the plea hearing, Gregory admitted that from 2009 until May 2013, while employed as the head teller of the Gallatin branch of Volunteer State Bank, she embezzled more than $264,000 from the bank and converted this cash to her own use. Gregory also admitted making false entries into the bank’s computer system in order to conceal her embezzlement and to manipulating bank audits to conceal the shortfall of cash resulting from her scheme. Gregory further acknowledged using a relative’s bank account to disguise the source of embezzled cash which she ultimately deposited into her own personal bank account and used for retail purchases, travel and paying bills.
After accepting Gregory’s plea, U.S. District Judge Todd J. Campbell scheduled a sentencing hearing for March 21, 2014. Gregory faces a maximum sentence of 30 years in prison and a maximum fine of up to $1,000,000. In addition, Gregory will forfeit the proceeds of her embezzlement and any property derived from these proceeds.
The case was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney William F. Abely.
Former Fairmont State V-P Convicted of Embezzlement, Tax ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – A former vice-president at Fairmont State University has been convicted of stealing hundreds of thousands of dollars from the school through the use of a state-issued purchasing card.
United States Attorney William J. Ihlenfeld, II announced that DAVID A. TAMM, age
45, of Parkersburg, West Virginia, entered guilty pleas today before Judge Irene M. Keeley in Clarksburg federal court to “Embezzlement from State Agency Receiving Federal Funds” and “Making and Subscribing a False Tax Return for Tax Year 2012.”TAMM, the former Chief Information Officer at the school, admitted that from October of 2007 until January of 2013, he embezzled and stole funds from Fairmont State, including funds from federal education grants. TAMM also admitted to filing a false tax return for the 2012 tax year by reporting substantially less income than he had actually received.
TAMM, who is free on bond pending sentencing, faces up to ten years in prison on the embezzlement charge and up to three years in prison on the tax charge.
"Mr. Tamm took money belonging to one of our state universities and then used it to purchase a beautiful home, luxury automobiles, and expensive jewelry for his wife," said U.S. Attorney Ihlenfeld. "This is another case of someone abusing a position of trust to live a lifestyle otherwise unobtainable on one’s salary alone."
The investigation revealed that TAMM purchased hundreds of computer switches with his state purchasing card and then resold them for cash, receiving approximately $650,000 from the scheme. TAMM also used his purchasing card to acquire high-end electronics for his personal use.
This case was prosecuted by Assistant United States Attorney Andrew R. Cogar and was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, the West Virginia Commission on Special Investigations and the Fairmont State University Police.
If anyone has information regarding public corruption in their community they are encouraged to call the West Virginia Public Corruption Hotline at 1-855-WVA-FEDS (1-855-982-3337), or to send an email to [email protected].
Former Bank Executive Indicted on Fraud ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – A former bank vice-president has been indicted on charges of fraudulently obtaining loans in the name of an elderly relative.
United States Attorney William J. Ihlenfeld, II, announced that John P. AMAN, 60 years old of Clarksburg, has been charged with eleven counts of “Bank Fraud.” AMAN, who formerly worked as an executive at Huntington National Bank and West Union Bank, is accused of borrowing nearly half a million dollars in the name of an in-law by abusing a power of attorney that the victim had provided to him. AMAN also is alleged to have abused his position at Huntington Bank and West Union Bank to bypass various policies and regulations that may have prevented the loans from being approved. He is also alleged to have misrepresented the purpose of the loans to the lenders.
In addition to his loans with Huntington and West Union, AMAN is accused of fraudulently borrowing funds from Freedom Bank and using stock owned by the victim as collateral for that loan. When the required payments on the loan at Freedom Bank were not made the victim’s stock was sold to satisfy the obligation. The victim of the scheme died in 2011 at the age of 89.
“A power of attorney can be a valuable tool but it can also be abused if entrusted to the wrong person," said U.S. Attorney Ihlenfeld. "Unfortunately, older West Virginians are oftentimes on the wrong end of schemes involving the fraudulent use of these very powerful documents."
AMAN faces up to 30 years in prison on each of the 11 counts, and a fine of up to $1 million. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. The U.S. Attorney’s Office is also seeking a money judgment against AMAN in the amount of at least $372,164.
The case was investigated by the Federal Bureau of Investigation and will be prosecuted by Assistant United States Attorney Andrew R. Cogar. An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former APS Chief Information Officer Pleads Guilty to Accepting KickbacksRead the Press Release
ATLANTA – Former Atlanta Public Schools (APS) Chief Information Officer (CIO) Jerome Oberlton has pleaded guilty to conspiring to receive kickbacks in exchange for using his influence at APS to award a $780,000 project to a computer vendor.
“Mr. Oberlton abused his position as APS’ Chief Information Officer when he took payoffs in exchange for the award of a lucrative computer contract,” said United States Attorney Sally Quillian Yates. “His fraud diverted scarce educational resources from the APS students who needed them to a vendor that was willing to pay to play.”
“IRS Criminal Investigation will continue to provide its investigative resources and expertise in exposing kickback schemes like the one Mr. Oberlton helped to orchestrate” stated Special Agent in Charge, Veronica F. Hyman-Pillot. “We stand committed to weed out individuals who ignore the public's well-being and choose to take the path to financial success by using greed and corruption.”
According to United States Attorney Yates, the indictment, and information presented in court: Oberlton had overall management responsibility for APS’ information technology program. In January 2007, APS issued a request for proposal (RFP) for a Data Warehousing (DW) project at the school system. The DW project was intended to centralize information relating to APS operations, including student information, so that it was maintained digitally in a secure, easily-accessible manner.
From the start of the project in January 2007, Oberlton and co-defendant Mahendra Patel conspired to influence the RFP process for the DW project, and, ultimately, caused the winning bidder to be selected in exchange for kickbacks paid to Oberlton and Patel. While Patel did not work for APS, he had connections with a Detroit-based technology company that received the contract through the corrupted RFP process. In order to hide the bribes, Oberlton created two shell companies, Global Technology Partners (GTP) and, later, Global Technology Services (GTS), and funneled the bribe payments through these shell companies. Oberlton was able to conceal his ownership of GTP and GTS from APS even when questions arose in 2007. The kickbacks to Patel were disguised as sales commissions for non-existent consulting work that he supposedly performed for the shell companies. In reality, Patel acted as an intermediary, helping to negotiate the kickbacks between Oberlton and the Detroit-based technology company and then signed fake sales consultant agreements to hide his role. The Detroit-based technology company ultimately paid approximately $60,000 in bribes to Oberlton over almost six months and, in return, the company received $780,000 in APS project work.
Oberlton was the CIO for APS between June 2004 and August 2007 and, most recently, was the Chief of Staff for the Dallas Independent School District before he resigned in May 2013, shortly after he was indicted.Oberlton, 48, of Atlanta, Ga., pleaded guilty to conspiring with Patel and others to accept bribes, which carries a maximum term of imprisonment of five years and a fine of $250,000. The parties have recommended to the Court that Oberlton receive a sentence of 41 months’ imprisonment, pay $735,130 in restitution and perform 1,000 hours of community service. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders. Sentencing is scheduled for March 24, 2014.
Mahendra Patel, 45, of Kennesaw, Ga., pleaded guilty on August 16, 2013, to conspiring with Oberlton to accept bribes.
These cases are being investigated by the Federal Bureau of Investigation and Internal Revenue Service.
Assistant United States Attorneys Kurt R. Erskine and Jill E. Steinberg are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
For Illegal Oxycodone PossessionRead the Press Release
RHODE ISLAND PILL DEALER SENTENCED TO FEDERAL PRISON
CHARLESTON, W.Va. – A Rhode Island pill dealer who had hundreds of oxycodone pills and thousands in cash inside of a rented Charleston-area hotel room in May 2012 was sentenced today to two years and eight months in federal prison, U.S. Attorney Booth Goodwin announced. Benjamin Steven Campopiano, 29, of Cranston, Rhode Island, previously pleaded guilty in September 2013 to possession of oxycodone with intent to distribute. On May 22, 2012, law enforcement agents obtained a search warrant for an Embassy Suites hotel room that was rented at the time by Campopiano. During the execution of the search warrant, police seized approximately 298 30-milligram oxycodone tablets, $7,820 in cash and marijuana.
Campopiano told police that he distributed oxycodone to individuals in and around Charleston. The defendant also told police that the cash seized from his rented hotel room was proceeds collected from illegal pill transactions.
The United States Postal Inspection Service and the Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney Joshua Hanks handled the prosecution.
The sentence was imposed by United States District Judge Thomas E. Johnston.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Florida Couple Sentenced for Roles<br /> in Procurement Contract Bribery SchemeRead the Press Release
A Florida man was sentenced to serve 15 months in prison, and his wife was sentenced to 24 months of probation, for their roles in a bribery and fraud scheme involving federal procurement contracts, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney David B. Barlow of the District of Utah.
On Feb. 26, 2013, Sylvester Zugrav, 70, of Sarasota, Fla., pleaded guilty to conspiracy to commit bribery and procurement fraud, and his wife, Maria Zugrav, 67, also of Sarasota, pleaded guilty to misprision of a felony related to her efforts to conceal the conspiracy.
The Zugravs were charged in an October 2011 indictment along with Jose Mendez, 51, of Farr West, Utah. Mendez, a procurement program manager for the U.S. Air Force Foreign Materials Acquisition Support Office (FMASO) at Hill Air Force Base, in Ogden, Utah, was charged in the indictment with conspiracy, bribery and procurement fraud, and has since pleaded guilty to all charges and agreed to forfeit more than $180,000 he received as part of the bribery scheme. Sentencing for Mendez is scheduled for Jan. 29, 2014.
According to court documents, the Zugravs owned Atlas International Trading Company, a business that contracted to provide foreign military materials to the U.S. government through FMASO.
In his plea agreement, Sylvester Zugrav admitted that, from 2008 through August 2011, he gave Mendez more than $180,000 in bribe payments and offered Mendez more than $1 million in additional bribe payments contingent upon Atlas’s receipt of future contracts with FMASO. In exchange for Sylvester Zugrav’s bribe payments and offers, Mendez ensured that Atlas and Sylvester Zugrav received favorable treatment in connection with procurement contracts by, among other things, assisting Atlas in obtaining and maintaining procurement contracts; assisting Atlas in receiving payments on such contracts; and providing Atlas with contract bid or proposal information or source selection information before the award of procurement contracts. In her plea agreement, Maria Zugrav admitted that she was aware of Sylvester Zugrav’s bribe payments to Mendez and assisted with concealing the crime.
According to court records, Sylvester Zugrav provided bribe payments to Mendez in three ways: cash payments via Federal Express to Mendez’s residential address; in-person payments of cash and other things of value; and electronic wire transfers to a bank account in Mexico opened by and in the name of Mendez’s cousin. Between November 2009 and August 2011, Sylvester Zugrav sent nine FedEx packages to Mendez’s home address. Each package contained $5,000 in cash, except the last package, which contained $3,000 and was seized by law enforcement. Maria Zugrav assisted her husband and Mendez’s bribe scheme by limiting cash withdrawals from Atlas’s bank account to not more than $5,000 to avoid scrutiny by banking officials and law enforcement.
According to the plea documents, on multiple occasions when Sylvester Zugrav and Mendez traveled to the same location, Sylvester Zugrav would give Mendez cash payments and other things of value. From 2008 through August 2011, Sylvester Zugrav gave Mendez seven in-person cash payments ranging from $500 to $10,000 and purchased for him[?] a laptop computer and software package worth over $2,900.
During the course of the corrupt scheme, Mendez opened a foreign bank account so that Sylvester Zugrav could pay Mendez larger bribe payments. Mendez asked his cousin in Mexico to open an account there. After the account was opened by Mendez’s cousin, Maria Zugrav made wire transfers to the bank account located in the name of Mendez’s cousin to avoid detection of the larger bribe payments by law enforcement. From 2008 through August 2011, Maria Zugrav sent to the Mexico account 10 wire transfers ranging from $350 to $26,700.
Court records also describe additional steps taken to conceal the bribery scheme, including creating and using covert e-mail accounts, using encrypted documents, adopting false names and using code words. For instance, to avoid detection of their e-mail communications, Sylvester Zugrav and Mendez established e-mail accounts to be used only to communicate requests and offers for bribe payments. Sylvester Zugrav and Mendez also created password-protected documents for e-mail communications and used code words and false names. Within the encrypted documents, Mendez adopted the moniker “Chuco” and Sylvester Zugrav used the codename “Jugo.” They referred to cash as “literature.”
The case was investigated by the FBI and the Air Force Office of Special Investigations. The case is being prosecuted by Trial Attorneys Marquest J. Meeks and Edward P. Sullivan of the Criminal Division’s Public Integrity Section, Assistant U.S. Attorney Carlos A. Esqueda of the District of Utah, and Trial Attorney Deborah Curtis of the National Security Division’s Counterespionage Section.Florida Couple Sentenced for Roles in Procurement Contract Bribery SchemeRead the Press Release
SALT LAKE CITY - A Florida man was sentenced to serve 15 months in prison, and his wife was sentenced to 24 months of probation, for their roles in a bribery and fraud scheme involving federal procurement contracts, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney David B. Barlow of the District of Utah.
On Feb. 26, 2013, Sylvester Zugrav, 70, of Sarasota, Fla., pleaded guilty to conspiracy to commit bribery and procurement fraud, and his wife, Maria Zugrav, 67, also of Sarasota, pleaded guilty to misprision of a felony related to her efforts to conceal the conspiracy.
The Zugravs were charged in an October 2011 indictment along with Jose Mendez, 51, of Farr West, Utah. Mendez, a procurement program manager for the U.S. Air Force Foreign Materials Acquisition Support Office (FMASO) at Hill Air Force Base, in Ogden, Utah, was charged in the indictment with conspiracy, bribery and procurement fraud, and has since pleaded guilty to all charges and agreed to forfeit more than $180,000 he received as part of the bribery scheme. Sentencing for Mendez is scheduled for Jan. 29, 2014.
According to court documents, the Zugravs owned Atlas International Trading Company, a business that contracted to provide foreign military materials to the U.S. government through FMASO.
In his plea agreement, Sylvester Zugrav admitted that, from 2008 through August 2011, he gave Mendez more than $180,000 in bribe payments and offered Mendez more than $1 million in additional bribe payments contingent upon Atlas’s receipt of future contracts with FMASO. In exchange for Sylvester Zugrav’s bribe payments and offers, Mendez ensured that Atlas and Sylvester Zugrav received favorable treatment in connection with procurement contracts by, among other things, assisting Atlas in obtaining and maintaining procurement contracts; assisting Atlas in receiving payments on such contracts; and providing Atlas with contract bid or proposal information or source selection information before the award of procurement contracts. In her plea agreement, Maria Zugrav admitted that she was aware of Sylvester Zugrav’s bribe payments to Mendez and assisted with concealing the crime.
According to court records, Sylvester Zugrav provided bribe payments to Mendez in three ways: cash payments via Federal Express to Mendez’s residential address; in-person payments of cash and other things of value; and electronic wire transfers to a bank account in Mexico opened by and in the name of Mendez’s cousin. Between November 2009 and August 2011, Sylvester Zugrav sent nine FedEx packages to Mendez’s home address. Each package contained $5,000 in cash, except the last package, which contained $3,000 and was seized by law enforcement. Maria Zugrav assisted her husband and Mendez’s bribe scheme by limiting cash withdrawals from Atlas’s bank account to not more than $5,000 to avoid scrutiny by banking officials and law enforcement.
According to the plea documents, on multiple occasions when Sylvester Zugrav and Mendez traveled to the same location, Sylvester Zugrav would give Mendez cash payments and other things of value. From 2008 through August 2011, Sylvester Zugrav gave Mendez seven in-person cash payments ranging from $500 to $10,000 and purchased for him[?] a laptop computer and software package worth over $2,900.
During the course of the corrupt scheme, Mendez opened a foreign bank account so that Sylvester Zugrav could pay Mendez larger bribe payments. Mendez asked his cousin in Mexico to open an account there. After the account was opened by Mendez’s cousin, Maria Zugrav made wire transfers to the bank account located in the name of Mendez’s cousin to avoid detection of the larger bribe payments by law enforcement. From 2008 through August 2011, Maria Zugrav sent to the Mexico account 10 wire transfers ranging from $350 to $26,700.
Court records also describe additional steps taken to conceal the bribery scheme, including creating and using covert e-mail accounts, using encrypted documents, adopting false names and using code words. For instance, to avoid detection of their e-mail communications, Sylvester Zugrav and Mendez established e-mail accounts to be used only to communicate requests and offers for bribe payments. Sylvester Zugrav and Mendez also created password-protected documents for e-mail communications and used code words and false names. Within the encrypted documents, Mendez adopted the moniker “Chuco” and Sylvester Zugrav used the codename “Jugo.” They referred to cash as “literature.”
The case was investigated by the FBI and the Air Force Office of Special Investigations. The case is being prosecuted by Trial Attorneys Marquest J. Meeks and Edward P. Sullivan of the Criminal Division’s Public Integrity Section, Assistant U.S. Attorney Carlos A. Esqueda of the District of Utah, and Trial Attorney Deborah Curtis of the National Security Division’s Counterespionage Section.
Five Plead Guilty to Gun Charges Stemming from Stonewood Police Break-InRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA — Five Clarksburg residents entered pleas of guilty to charges stemming from the theft of firearms from the Stonewood Police Department on August 26, 2013.
United States Attorney William Ihlenfeld, II, announced that:
JONATHAN CARPENTER, age 25 and KRISOPHER COX, age 33, each entered a plea of guilty to “Felon in Possession of Firearms.” MICHELLE MCKINNEY, age 29, JOHN LYNCH, age 43, and DENAUL DICKERSON, age 26, each entered a plea of guilty to “Possession of Firearms by an Unlawful Drug User/Addict. CARPENTER, MCKINNEY, LYNCH and COX, who are free on bond pending sentencing, and DICKERSON, who is in custody pending sentencing, face up to 10 years in prison.
This case was prosecuted by Criminal Chief Shawn A. Morgan and was investigated by the Greater Harrison Drug and Violent Crime Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Harrison county Sheriff’s Department. The task force consists of officers & agents from the Bridgeport Police Department; the Clarksburg Police Department; the Drug Enforcement Administration; the West Virginia State Police-Bureau of Criminal Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the United States Postal Inspection Service; and the United States Marshals Service.
First Defendant, A Correctional Officer, Sentenced in Jail House Racketeering ConspiracyRead the Press Release
Smuggled Drugs for BGF Gang Members into Baltimore Correctional Facility; Nine Correctional Officers and Seven other Defendants Have Pleaded Guilty to Date
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced correctional officer Adrena Rice, age 25, of Baltimore today to 42 months in prison followed by two years of supervised release for racketeering conspiracy arising from the smuggling of drugs for members of the Black Guerilla Family (BGF) gang inside the Baltimore City Detention Center (BCDC).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Acting Secretary Gregg Hershberger of the Maryland Department of Public Safety and Correctional Services; Baltimore Police Commissioner Anthony W. Batts; and Baltimore City State’s Attorney Gregg L. Bernstein.According to court documents, BGF has been the dominant gang at the BCDC, and in several connected facilities, including the Baltimore Central Booking Intake Center, the Women’s Detention Center, which houses many men, and in the Jail Industries Building.
According to her plea, Adrena Rice worked as a correctional officer at BCDC. Rice frequently smuggled contraband, including marijuana and prescription pills, into BCDC on behalf of BGF leader and inmate, Tavon White. Rice also helped other correctional officers, such as Jennifer Owens and Katera Stevenson, smuggle drugs into BCDC.
Eight other correctional officers have pleaded guilty to the racketeering enterprise and await sentencing:
Kimberly Dennis, age 26, of Baltimore
Jasmin Jones, a/k/a/ J.J., age 24, of Baltimore;
Taryn Kirkland, age 23, of Baltimore;
Katrina Laprade, a/k/a Katrina Lyons, age 31;
Vivian Matthews, age 26, of Essex, Maryland;
Jennifer Owens, a/k/a/ O and J.O., age 31, of Randallstown;
Katera Stevenson, a/k/a KK, age 24, of Baltimore; and
Jasmine Thornton, a/k/a J.T., age 26, of Glen Burnie.Seven other co-defendants have also pleaded guilty: inmates Tavon White, age 36; Steven Loney, age 24; Jermaine McFadden, a/k/a Maine, age 25; and Kenneth Parham, age 24; and outside contraband suppliers Tyrone Thompson, a/k/a Henry, age 36; Tyesha Mayo, age 30 and Teshawn Pinder, age 24. Loney is scheduled to be sentenced on January 14, 2014. Outside supplier James Yarborough, a/k/a J.Y., age 27, of Baltimore, is scheduled to have a rearraignment on January 15, 2014 at 10:00 a.m.
The case arose from the efforts of the Maryland Prison Task Force, a group of local, state and federal law enforcement agencies and prosecutors that met regularly for more than two years and generated recommendations to reform prison procedures. The investigation is continuing.U.S. Attorney Rosenstein recognized the efforts of the other members of the Maryland Prison Task Force, including: Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Chief Mark A. Magaw of the Prince George’s County Police Department; United States Marshal Johnny Hughes; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Tom Carr, Director of the Washington-Baltimore High Intensity Drug Trafficking Area; and Dave Engel, Executive Director of the Maryland Coordination and Analysis Center.
United States Attorney Rod J. Rosenstein praised the FBI, Maryland Department of Public Safety and Correctional Services, Baltimore Police Department, and Maryland Prison Task Force, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Ayn B. Ducao, who are prosecuting this Organized Crime Drug Enforcement Task Force case.Federal Judge Upholds Forest Service Decision on Ecosystem Restoration ProjectRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that United States District Court Judge Fred Van Sickle upheld the Forest Service's decision to proceed with a 3,900-acre ecosystem restoration project on the Umatilla National Forest.
According to information disclosed during the court proceedings, the Forest Service had proposed the project, consisting of timber harvest and fuel reduction in the South George area of the Pomeroy Ranger District. Much of the timber harvesting consists of thinning, designed to remove smaller trees that have grown into the forests after decades of fire suppression. The timber harvesting and fuel reduction were designed to return forest conditions closer to historic conditions and thereby reduce the risk of large, catastrophic wildfires. The project had been challenged by The Lands Council, the Hells Canyon Preservation Council, and the League of Wilderness Defenders – Blue Mountain Biodiversity Project. The American Forest Resource Council and Asotin County, Washington had intervened in the lawsuit.
Michael C. Ormsby stated, "Judicial review of agency decisions is an important process in our form of government. Here, the Forest Service properly analyzed the environmental impacts of the proposed project and ensured compliance with the numerous environmental laws that govern activities of many land management agencies."
The case was defended by Rudy J. Verschoor, an Assistant United States Attorney for the Eastern District of Washington and Julie Thrower, an attorney with the Environment and Natural Resources Division of the U.S. Department of Justice.
12-CV-00619-FVS
Drug Trafficker Sentenced to 14 Years in Prison for Methamphetamine DistributionRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that San Chiam Saechao of Anchorage was sentenced by U.S. District Court Judge Sharon Gleason to 168 months in prison for his role in possessing with intent to distribute more than two kilograms of methamphetamine.
San Chiam Saechao previously pled guilty to possession with the intent to distribute large quantities of methamphetamine. In addition to his prison sentence, Saechao was ordered to forfeit approximately $8,900 in cash and two vehicles that he obtained as a result of his drug trafficking activities.
In sentencing Saechao, Judge Gleason emphasized the magnitude of the defendant’s crime, noting that methamphetamine “is a drug that is eating away at the soul of our community.” She also found it concerning that Saechao appeared to be trafficking in his home while multiple young children were present.
According to court documents, Saechao distributed methamphetamine over the course of many months, beginning as early as September 2012. His trafficking activities culminated in January 2013, when he received a package that had contained more than 1.8 kilograms of actual methamphetamine. At the time, he also had multiple firearms in his possession.
The case was jointly prosecuted by Assistant U.S. Attorneys Stephan Collins and Stephanie Courter. The case was investigated by the U.S. Postal Inspection Service (USPIS), U.S. Immigration and Customs Enforcement (ICE), which oversees Homeland Security Investigation (HSI), the Anchorage Police Department (APD), the Alaska State Troopers (AST), and the Drug Enforcement Administration (DEA).
Drug Task Force Investigations Lead to Federal IndictmentsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA — Recent investigations by the Greater Harrison County Drug & Violent Crime Task Force have led to indictments being returned by a Federal Grand Jury sitting in Clarksburg this week.
United States Attorney William J. Ihlenfeld, II, announced that JAUNITA FARNSWORTH, age 31, and WILLIAM MURPHY a/k/a “MURPH,” age 24 of Clarksburg; and MARVIN PIERRE LEDBETTER, JR. a/k/a “MO,” age 28; STANLEY DYE, JR. a/k/a “SMOOTH,” and AMANDA LILLY DANIELS, age 25, of Michigan, were named in a seven-count Indictment charging them with “Conspiracy to Possess with Intent to Distribute and to Distribute Oxycodone.”
FARNSWORTH faces a total of seven counts, MURPHY faces a total of ten count; LEDBETTER faces a total of six counts; and, DYE and DANIELS each face a total of five counts.
In addition to the conspiracy charge, other charges include “Distribution of Oxycodone,” “Possession with Intent to Distribute Oxycodone,” “Maintaining a Drug-Involved Premise,” “Use and Carry of a Firearm in Relation to a Drug-Trafficking Offense,” “Possession of Firearm by Unlawful Drug User/Addict,” and, “Possession of an Unregistered Firearm.”
The defendants each face up to twenty years in prison on the conspiracy, distribution, possession with intent to distribute, and maintaining drug-involved premises charges; a mandatory term of five years in prison on the use and carry of a firearm charge; and up to ten years in prison on the other firearms charges.
The U.S. Attorney’s Office is seeking to forfeit firearms, ammunition and currency which was seized from defendants on December 19, 2013. The case will be prosecuted by Assistant United States Attorney Shawn A. Morgan.
In a separate Task Force case, DAMIAN R. ALLEN, 26, of Clarksburg, was named in a three-count Indictment charging him with the “Distribution of Crack Cocaine and Heroin within 1,000 Feet of Harrison Street Playground.” ALLEN, faces up to 40 years in prison on each count. The case will be prosecuted by Assistant United States Attorney Andrew R. Cogar.The Greater Harrison County Drug and Violent Crime Task Force consists of officers from the Bridgeport Police Department; Clarksburg Police Department; Drug Enforcement Administration; West Virginia State Police-Bureau of Criminal Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Postal Inspection Service; and, the United States Marshals Service.
In other indictments returned this week by the grand jury, MARTIN L. QUEEN, age 51, of Clarksburg, was named in a three-count Indictment charging him with “Possession of Stolen Firearms” and “Making Materially False Statements and Representations.” QUEEN faces up to ten years in prison on the firearms charge and up to five years in prison on the two false statement charges. The QUEEN case will be prosecuted by Morgan and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
JEREMY NATHAN FERRARO, age 33, was named in a one-count Indictment and MARLENA MAE LONG, age 49, was named in a three-count Indictment charging them with “Theft of Mail.” The defendants face up to five years in prison on each charge. These cases will be prosecuted by Assistant United States Attorney Michael D. Stein and were investigated by the United States Postal Inspection Service.
EDWARD CROW, age 43; ROBERT GLENN JOHNS, age 32; JOHN DAVID PINKE, age 35; and, KENNETH RUSSELL KRUM, former USP Hazelton inmates, were named in a seven-count Indictment charging them with “Conspiracy to Commit Assault with a Dangerous Weapon with Intent to do Bodily Harm.” CROW and JOHNS are named in a total of five counts; PINKE is named in a total of four counts; and, KRUM is named in one count. In addition to the conspiracy charge, other charges include “Assault with a Dangerous Weapon with Intent to Commit Murder,” “Assault with a Dangerous Weapon with Intent to do Bodily Harm,” “Assault Resulting in Serious Bodily Injury,” “Possession of a Prohibited Object,” and, “Accessory after the Fact to Assault with a Dangerous Weapon with Intent to do Bodily Harm.” The defendants face up to forty years in prison.
ROBERT KENNETH MOORE, age 27 and KEEGAN CHANCE VANTUYL, age 31, inmates at USP Hazelton were named in a four-count Indictment charging them with “Conspiracy to Commit Assault with a Dangerous Weapon with Intent to do Bodily Harm,” Assault with a Dangerous Weapon with Intent to do Bodily Harm,” and, “Possession of a Prohibited Object.” MOORE and VANTUYL face up to twenty years in prison on the charges. The cases will be prosecuted by Assistant United States Attorney Brandon S. Flower and were investigated by the Special Investigative Services Unit at USP Hazelton.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.Dresden Man Sentenced to over Two Years in Prison for Conspiring to Commit Pharmacy RobberyRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that
Nicholas Alexander, 23, of Dresden, Maine, was sentenced today in United States District Court
by Judge George Z. Singal to 28 months imprisonment, to be followed by 3 years of supervised
release, for conspiring to rob a Walgreens pharmacy in Bath. Alexander pleaded guilty to the
charge on September 24, 2013.According to court records, Alexander and other individuals participated in the June 14,
2013 robbery of the Bath Walgreens. Alexander handed a note to a pharmacist that read, "You
have 20 seconds to give me all your Oxycodone 15mg tablets and 30s or I will blow your
[expletive] brains out." As a result, Alexander was given a bag containing 11 bottles of
Oxycodone tablets. Alexander was later found at a motel in Wiscasset, where investigators
found almost 600 Oxycodone tablets. In a subsequent interview, Alexander admitted robbing the
store, using some of the stolen tablets, and selling others.The investigation was conducted by the Bath Police Department, the Federal Bureau of
Investigation, the Maine Drug Enforcement Agency, and the Lincoln County Sheriff's Office.
United States Attorney Delahanty praised the cooperative actions of the local, county, state and
federal agencies. "The United States Attorney's Office has put a special emphasis on the
investigation and prosecution of pharmacy robberies in the State of Maine. I am pleased that the
cooperative effort of law enforcement at all levels resulted in the successful conclusion of this
case."Departments of Justice and Education Issue School Discipline Guidance to Promote Safe, Inclusive SchoolsRead the Press Release
The Department of Justice (DOJ), in collaboration with the Department of Education (ED), today released a school discipline guidance package that will assist states, districts and schools in developing practices and strategies to enhance school climate, and ensure those policies and practices comply with federal law. Even though incidents of school violence have decreased overall, many schools are still struggling to create positive, safe environments. Schools can improve safety by making sure that climates are welcoming, and that responses to misbehavior are fair, non-discriminatory, and effective.
Each year, significant numbers of students miss class due to suspensions and expulsions—even for minor infractions of school rules—and students of color and with disabilities are disproportionately impacted. The guidance package provides resources for creating safe and positive school climates, which are essential for boosting student academic success and closing achievement gaps.
"A routine school disciplinary infraction should land a student in the principal's office, not in a police precinct," said Attorney General Eric Holder. "This guidance will promote fair and effective disciplinary practices that will make schools safe, supportive, and inclusive for all students. By ensuring federal civil rights protections, offering alternatives to exclusionary discipline, and providing useful information to school resource officers, we can keep America's young people safe and on the right path."
The resource package consists of four components:
· The Dear Colleague guidance letter on civil rights and discipline, prepared by DOJ and ED, describes how schools can meet their legal obligations under federal law to administer student discipline without discriminating against students on the basis of race, color or national origin;
· The Guiding Principles document, prepared by ED, draws from emerging research and best practices to describe three key principles and related action steps that can help guide state and local efforts to improve school climate and school discipline;
· The Directory of Federal School Climate and Discipline Resources, prepared by ED, indexes the extensive federal technical assistance and other resources related to school discipline and climate available to schools and districts; and
· The Compendium of School Discipline Laws and Regulations,prepared by ED, is an online catalogue of the laws and regulations related to school discipline in each of the 50 states, the District of Columbia and Puerto Rico, and compares laws across states and jurisdictions.
“Effective teaching and learning cannot take place unless students feel safe at school,” said U.S. Secretary of Education Arne Duncan. “Positive discipline policies can help create safer learning environments without relying heavily on suspensions and expulsions. Schools also must understand their civil rights obligations and avoid unfair disciplinary practices. We need to keep students in class where they can learn. These resources are a step in the right direction.”
The guidance package is a resource resulting from a collaborative project—the Supportive School Discipline Initiative (SSDI)—between DOJ and ED. The SSDI, launched in 2011, addresses the school-to-prison pipeline and the disciplinary policies and practices that can push students out of school and into the justice system. The initiative aims to support instead school discipline practices that foster safe, inclusive and positive learning environments while keeping students in school. The Department of Justice enforces Title IV of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race or national origin in public schools, and Title VI of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race, color or national origin by schools, law enforcement agencies and other recipients of federal financial assistance.
The guidance package also results from President Obama’s Now is the Time proposal to reduce gun violence. It called on ED to collect and disseminate best practices on school discipline policies and to help school districts develop and equitably implement their policies. To both continue ED and DOJ efforts in connection with SSDI and fulfill the administration’s commitment to “Now is the Time,” the guidance package was developed with additional input from civil rights advocates, major education organizations and philanthropic partners.
To view the resource documents, visit www.ed.gov/school-discipline . State Education Agencies, Local Education Agencies and schools may also request a copy of the package by calling (877) 433-7827.
Court Upholds Sentence of Former Police Officer in Child Pornography CaseRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that the U.S. Court of Appeals for the Third Circuit has upheld the sentence imposed on a former police chief for possession of child pornography.
In October 2012, Blaine R. Handerhan, a former Mount Carmel Borough police officer, was sentenced to serve 96 months in prison after pleading guilty to possession of child pornography. The charges against Handerhan stemmed from an investigation into the distribution of child pornography by the Internet Crimes Against Children Task Force, the Pennsylvania State Police, and the Federal Bureau of Investigation. Handerhan was identified by investigators and a search warrant was executed at his residence. His computer was seized and an analysis of it conducted by the Pennsylvania State Police identified 147,070 images and 1,252 video files of child pornography.
Handerhan appealed his sentence, handed down by Senior U.S. District Judge William W. Caldwell in Harrisburg, to the U.S. Court of Appeals for the Third Circuit in Philadelphia. Handerhan argued on appeal that he should be re-sentenced because the sentencing judge did not properly rule on all of the arguments he made at sentencing. After briefing and oral argument, the Court of Appeals upheld the sentence imposed by Judge Caldwell, finding it to be correct both in procedure and substance.
Assistant U.S. Attorney James T. Clancy handled both the prosecution and appeal of this case.
Court of Appeals Dismisses Federal Appeal of Convicted Former Penn State ProfessorRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that on January 7, 2014, the U.S. Court of Appeals for the Third Circuit dismissed the appeal of Craig A. Grimes, former professor of materials science and engineering at Penn State.
In 2012, Grimes pled guilty to federal charges of wire fraud, false statements and money laundering stemming from Grimes’ misuse of federal grant funds totaling approximately $3 million obtained from the U.S. Department of Energy and the National Institutes of Health.
Grimes pleaded guilty in February 2012 before U.S. Chief Magistrate Judge Martin C. Carlson pursuant to a plea agreement. As part of the agreement, Grimes waived his right to appeal. In November 2012, U.S. District Court Judge Yvette Kane sentenced Grimes to 41 months imprisonment, a sentence at the lower end of the guideline range.
Despite the appeal waiver Grimes appealed, claiming that the waiver was not knowing and voluntary and was a miscarriage of justice based on the argument that a valid waiver could not include potential waiver claims based on ineffective assistance of counsel. Grimes did not challenge the sentence, only the validity of the waiver.
The Court of Appeals held that under the facts of the case, Grimes’ waiver was made knowingly and voluntarily and that the waiver did not constitute a miscarriage of justice, noting that there were no unusual circumstances here, or failure to prove an essential element of the offenses charged, that might require a different result.
The Government’s appeal was argued by Assistant U.S. Attorney Stephen R. Cerutti, II.
Court Finds Musto Not Mentally Competent to Stand TrialRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that after a hearing on January 6, 2014 in Wilkes-Barre, U.S. Senior District Court Judge A. Richard Caputo, issued an 11 page Memorandum and an Order on January 7 finding that former Pennsylvania Senator Raphael Musto is not mentally competent to stand trial, by a fair preponderance of the evidence.
Judge Caputo found that Musto was physically competent to stand trial. The finding of mental incompetency was based on the medical testimony and reports. Under the applicable statute, 18 United States Code Section 4241 (d), the Court noted that it is mandatory that Musto be committed to the custody of the Attorney General and that the question of the permanency of Musto’s condition was not before the Court at this time.
U.S. Attorney Peter Smith stated that given the reports and testimony of experts engaged by the Court, the Government and the defense, the Government does not intend to appeal the Judge’s Order.
Section 4241 (d) requires that the defendant be hospitalized “for treatment in a suitable facility” for a “reasonable time, not to exceed four months, as is necessary to determine whether there is a substantial probability that in the foreseeable future,” the defendant will “attain the capacity” to permit further proceedings.
According to U.S. Attorney Smith, the process of selecting a suitable facility and designating a time for the defendant to go there, is conducted by the U.S. Marshals Service and the Bureau of Prisons and may take approximately four to six weeks.
Corpus Christi Man Sentenced for Possessing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Corpus Christi resident Paul Pittman, 45, has been sentenced to seven years for possessing child pornography, announced United States Attorney Kenneth Magidson. Pittman pleaded guilty Oct. 3, 2013.
Today, U.S. District Judge Nelva Gonzalez Ramos handed Pittman a total sentence of 84 months in federal prison to be followed by a 15-year-term of supervised release. In handing down the sentence, the court considered the need to protect the public and deter future criminal behavior by Pittman and others. Pittman will also be required to register as a sex offender.
Pittman came to the attention of law enforcement following a complaint at a Wal-Mart in Corpus Christi alleging an unknown male had inappropriate contact with a minor female. Pittman was identified as the suspect by witnesses to the incident and he was arrested. At that time, he was in possession of a cell phone which was subsequently searched, resulting in the discovery of numerous images of child pornography.
Homeland Security Investigations and the Corpus Christi Police Department's Internet Crimes Against Children Task Force investigated.
This case, prosecuted by Assistant United States Attorney Lance Duke, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Commercial Fisherman Sentenced to 15 Months for Obstruction and False StatementsRead the Press Release
PANAMA CITY, FLORIDA – United States Attorney Pamela C. Marsh announced thatThomas Zachary Breeding, 29, of Panama City, Florida, was sentenced today by U.S. District Court Judge Richard Smoak to 15 months in prison for obstruction of justice and making false statements to the National Oceanic and Atmospheric Administration (“NOAA”).
In October, Breeding pleaded guilty to the charges, which related to his illegal commercial fishing in The Edges Closed Area of the Gulf of Mexico (the “Edges”). The Edges is an area of the Gulf southwest of Panama City that is closed to commercial fishing annually from January 1 to April 30. The Edges is closed to commercial fishing to protect the spawning season for gag grouper and ensure the continued viability of the grouper fishery in the Gulf.
Breeding was the captain of The Wolf commercial fishing vessel, based out of Panama City. On January 9, 2012, NOAA’s Vessel Monitoring System (“VMS”) in St. Petersburg, Florida detected The Wolf inside The Edges. NOAA immediately notified Breeding that he had unlawfully entered The Edges, warned him not to again breach the area, and reminded him of The Edges coordinates.
Just one week later, on January 17, 2012, a VMS technician again detected The Wolf inside The Edges. A Coast Guard plane immediately flew over The Wolf and confirmed that it was inside The Edges and was commercial fishing.
The Coast Guard pilot made radio contact with Breeding and advised him that he was inside The Edges. Breeding told the Coast Guard pilot that, according to his GPS system, he was outside of the restricted area. The Coast Guard pilot instructed Breeding and his crew to cease fishing and return to home port in Panama City.
The Wolf returned to Panama City the next morning, at which time Breeding falsely told authorities that he was fishing in The Edges by accident because the GPS device and plotter on The Wolf were inaccurate.
At his plea hearing, Breeding admitted that he had intentionally breached The Edges to fish commercially and that, to conceal his actions, he manually altered the GPS device to render it inaccurate by approximately three nautical miles to allow him to claim the breach was accidental.
At the sentencing hearing, NOAA Assistant Special Agent in Charge Gregg Houghaboom testified that, in addition to fishing in The Edges Closed Area on January 9, 2012, and January 17, 2012, Breeding was cited by the Coast Guard in 2005 for fishing inside the Madison-Swanson Closed Area, which is an area of the Gulf south of Panama City that is closed year-round to commercial fishing to protect the spawning of reef fish, including grouper. Breeding and the boat’s owner were fined $25,000 for this incident, but Breeding never paid his portion of the fine.
Agent Houghaboom also testified that Breeding was cited by NOAA in 2007 for commercial fishing in a longline and buoy-gear restricted area of the Gulf. He was fined $17,500 for this violation, a fine that he also never paid.
The case was prosecuted by Assistant U.S. Attorney Gayle Littleton.
This case was investigated by the National Oceanic and Atmospheric Administration.Colorado Woman Sentenced for Conspiracy to Provide Material Support to TerroristsRead the Press Release
PHILADELPHIA - Jamie Paulin-Ramirez, 35, a U.S. citizen and former resident of Colorado, was sentenced today to eight years in prison for one count of conspiracy to provide material support to terrorists. Ramirez, a co-defendant of Colleen LaRose, a/k/a “Jihad Jane,” pleaded guilty to the charge on March 8, 2011. In addition to the prison term, U.S. District Court Judge Petrese B. Tucker ordered three years of supervised release and ordered Ramirez to pay a fine of $2,500 and a $100 special assessment.
The sentence was announced by United States Attorney Zane David Memeger, Acting Assistant Attorney General for National Security John Carlin, and FBI Special Agent-in-Charge Ed Hanko.
According to documents filed with the court, Ramirez, LaRose and others conspired to obtain military-style training in South Asia and then traveled to and around Europe to participate in, and in support of, violent jihad. In a series of electronic communications dated July 19, 2009, one co-conspirator (identified as CC#2 in the superseding indictment) directed another to recruit online "some brothers that can travel freely . . . with eu passports . . . [A]nd I also need some sisters too." The co-conspirator further explained that "sister fatima will be in charge of other sister care. . . .[W]e have already organized everything for her. . . . [W]e are will[ing] to die in order to protect her no matter what the risk is."
Ramirez exchanged email messages with LaRose during the summer of 2009, in which LaRose invited Ramirez to join her in Europe to attend a training camp. For example, on Aug. 1, 2009, LaRose sent electronic communications to Ramirez stating that "soon i will be moving to Europe to be with other brothers & sisters . . . . when i get to europe, i will send for you to come be with me there . . . . [T]his place will be like a training camp as well as a home." In electronic communications dated on or about August 7, 2009, CC #2 recruited another individual to find brothers and sisters to go to a "camp for [military-style] training . . . and th[e]n come back to europe to do the job . . . . [T]he job is to [k]nock down some individual[s] that are harming islam." CC#2 goes on to explain that he is structuring "an ORGANIZATION" divided into a "plan[n]ing team . . . research team . . . action team . . . recruitment team . . . finance team."
Ramirez accepted LaRose's invitation to travel to Europe and asked to bring along her minor male child. On Sept, 12, 2009, Ramirez traveled to Ireland with her child with the intent to live and train with jihadists. The day after she arrived in Ireland, Ramirez married CC#2, whom she had never before met in person, in an Islamic ceremony, knowing and intending that her presence in Europe, her marriage to CC#2, and her future actions would provide support for the conspiracy.
This case was investigated by the FBI Field Division in New York, the FBI's Joint Terrorism Task Force in Philadelphia, the FBI Field Division in Denver, and the FBI Field Office in Washington, D.C. Authorities in Ireland also provided assistance in this matter.
The case is being prosecuted by Assistant U.S. Attorney Jennifer Arbittier Williams, and Matthew F. Blue, a Trial Attorney from the Counterterrorism Section in the Justice Department's National Security Division. The Office of International Affairs in the Justice Department's Criminal Division also provided assistance.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Colorado Big Game Outfitter and Assistant Guide Charged with Conspiracy for Illegal Capture and Maiming of Mountain Lions and Bobcats in Colorado and UtahRead the Press Release
Christopher W. Loncarich, 55, of Mack, Colo., and Nicholaus J. Rodgers, 30, of Medford, Ore., were charged yesterday in the District of Colorado with conspiracy to violate the Lacey Act, interstate felony transportation and sale of unlawfully taken wildlife, and felony creation of false records concerning wildlife that was sold in interstate commerce. The 17-count indictment was based on the pair’s practice between 2007 and 2010 of illegally capturing and maiming mountain lions and bobcats as part of a scheme to make hunting the cats easier for their clients.
The indictment alleges Christopher Loncarich is a big game outfitter and hunting guide who operates mainly in western Colorado on the border with Utah. Mr. Loncarich outfits and guides hunts for mountain lions and bobcats in the Bookcliffs Mountains, which span the Colorado-Utah border. Mountain lion and bobcat hunting are labor-intensive pursuits. The hunting seasons for the cats stretch from November to March when snow is likely to be on the ground. Guides commonly release highly-trained dogs on the track of the cats after the guides discover a track in the snow. The process is for the hunting dogs to follow the cat’s scent in the snow, then tree, corner or bay the pursued cat. At that point a hunter arrives and kills the treed cat.
The allegations include that Mr. Loncarich and his assistant guides devised a scheme whereby they would trap the cats in cages prior to hunts and release the cats when the client was nearby. Mr. Loncarich, Mr. Rodgers and other guides would communicate by radio to ensure that they took their clients to the location where the cats had been released. In order to keep the cats in the areas of potential hunts Mr. Loncarich, Mr. Rodgers and other guides would sometimes shoot the cats in the paws or legs or attach leghold traps to them. Many of the clients Mr. Loncarich and Mr. Rodgers guided did not have proper tags or licenses to take mountain lions or bobcats in Utah. Despite knowing that the clients were hunting in Utah without proper licenses or tags, the pair continued to guide the hunts. Ultimately, Mr. Loncarich, Mr. Rodgers and other guides brought the animals taken in Utah back to Colorado. Mr. Loncarich often took the client to “check in” the illegally taken mountain lions with the Colorado Division of Wildlife (now “Colorado Parks and Wildlife”) where Mr. Loncarich would provide false records to obtain seals for the hides. Many of the cats were then transported back to the clients’ home states. To date, four assistant guides have pleaded guilty to offenses arising from the conspiracy.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The case was investigated by the U.S. Fish and Wildlife Service Office of Law Enforcement, Colorado Parks and Wildlife, and Utah Division of Wildlife Resources, and is being prosecuted by the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.Business Owner Charged in $1.2 Million Procurement FraudRead the Press Release
Claimed Her Business Was Owned and Operated by a Service-Disabled Veteran
NEWARK, N.J. – A Bergen County, N.J., woman was arrested this morning on charges that she fraudulently represented her company as a service-disabled veteran-owned small business in order to obtain more than $1.2 million worth of government contracts set aside for disabled veterans, U.S. Attorney Paul J. Fishman announced.
Miriam Friedman, 54, of Teaneck, N.J., surrendered to special agents from the U.S. Department of Veterans Affairs (VA), Office of the Inspector General, as a result of a federal criminal complaint charging her with wire fraud. She is scheduled to make her initial appearance today before U.S. Magistrate Judge James B. Clark III in Newark federal court.
According to the complaint unsealed today:
Friedman is the owner of Office Dimensions Inc., a company in Teaneck that sells furniture and design services to industrial and government customers. Friedman and her husband control Office Dimensions and all its revenues, as well as run the company’s daily operations. Neither served in the U.S. military, but Friedman’s father-in-law is a retired U.S. military veteran.
On Nov. 23, 2009, Friedman certified in a central registry for government contractors that Office Dimensions was a service-disabled veteran-owned small business. In her certification, she allegedly falsely claimed that her father-in-law was the owner and operator, even though he had very little involvement with Office Dimensions and was not service-disabled. Friedman then bid for VA contracts set aside for service-disabled veterans who own their businesses.
From January 2010 through November 2011, the VA paid Office Dimensions more than $1.2 million on fraudulently obtained contracts to which Friedman was not entitled.
The wire fraud count with which Friedman was charged is punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000 or twice the gross loss or gain cause by the offense.
U.S. Attorney Fishman credited special agents of the U.S. Department of Veterans Affairs, Office of the Inspector General, under the direction of Special Agent in Charge Jeffrey G. Hughes; the U.S. General Services Administration, Office of the Inspector General, under the direction of Special Agent in Charge James E. Adams; and IRS - Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, for the investigation leading to today’s arrest.The government is represented by Assistant U.S. Attorney Scott B. McBride of the U.S. Attorney’s Office’s Health Care and Government Fraud Unit in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
14-008Defense counsel: Brian J. Neary Esq., Hackensack & Hoboken, N.J.
Friedman Complaint
Browning Man Sentenced to Prison for StrangulationRead the Press Release
(GREAT FALLS) A Browning man has been sentenced to prison following a guilty verdict in a September 2014 trial. Jordan James Lamott was sentenced to 32 months in prison followed by 3 years supervised release for strangling his girlfriend. This is the first case in the District of Montana that a defendant has been convicted at trial for strangulation in federal court since the inception of the statute. It is also one of the first such cases in the entire country.
On March 7, 2013, President Obama signed into law the reauthorization of the Violence Against Women Act (VAWA). This law contains provisions that significantly improve the safety of Native women and that importantly allow federal and tribal law enforcement agencies to hold more perpetrators of domestic violence accountable for their crimes. Many of these critical provisions were drawn from the U.S. Department of Justice’s July 2011 proposal for new Federal legislation to combat violence against native women.
The tribal provisions in VAWA address three significant legal gaps by: (1) recognizing certain tribes’ power to exercise concurrent criminal jurisdiction over domestic violence cases, regardless of whether the defendant is Indian or non-Indian; (2) clarifying that tribal courts have full civil jurisdiction to enforce protection orders involving any person, Indian or non-Indian; and (3) creating new federal statutes to address crimes of violence, such as strangulation, committed against a spouse or intimate partner and providing more robust federal sentences for certain acts of domestic violence in Indian country.
These steps have been taken, at least in part, because a recent Center for Disease Control and Prevention survey found that 46% of Native American women have experienced rape, physical violence, or stalking by an intimate partner in their lifetime.
Lamott was indicted on July of 2014 by a federal grand jury. At trial, Assistant U.S. Attorney Ryan G. Weldon presented evidence that Lamott’s girlfriend wore a skirt to impress him. Lamott became angry, and he strangled his girlfriend three times. The final time, Lamott’s girlfriend lost consciousness. In the morning, Lamott requested that his girlfriend have sex with him, and when she refused, he kicked her out of the house. When arriving at the hospital a few hours later, Lamott’s girlfriend explained that she had been strangled. Medical professionals testified that the bruising around the neck of Lamott’s girlfriend was consistent with strangulation.
Lamott was interviewed by federal agents. He claimed that he remembered everything on the night of the assault. When confronted with evidence that his girlfriend had strangulation marks on her neck, Lamott ultimately admitted that it was “possible” that he strangled his girlfriend.
U.S. Attorney Mike Cotter said the trial in this case represents the office’s dedication to working with reservations to ensure that Native American women and families are protected from domestic violence. “The strangulation statute and VAWA offers the U.S. Attorney’s Office a critical weapon to ensuring that domestic violence is dealt with swiftly and with harsh consequences. Victims of one episode of strangulation are six times more likely to be a victim of attempted homicide by the same partner. These same victims are seven times more likely to actually die at the hands of their loved ones. It is this type of violence that tears apart families, damages children, and can have lethal consequences. The ability to proceed to trial on strangulation cases has proven effective, and we are proud to be one of the first districts to ensure this statute is vigorously enforced.”
The investigation was conducted by the Bureau of Indian Affairs.Broward Resident Pleads Guilty in Treasury Check Cashing and Stolen Identity SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, U.S. Secret Service, announce that defendant Ronald Walker, 36, of Fort Lauderdale, pled guilty today for his participation in a check cashing and stolen identity scheme. Sentencing is scheduled for March 21, 2014 at 9:00 a.m. before U.S. District Judge James I. Cohn.
Specifically, Walker pled guilty to one count of theft of public money, a United States income tax refund check, in violation of Title 18, United States Code, Section 641, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). At sentencing, the defendant faces a maximum term of ten years in prison for the theft of public money charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charge.
According to court documents, a confidential informant (CI) told federal agents that Walker routinely received stolen or fraudulently obtained U.S. Treasury checks and negotiated them at a check cashing store called American Quick Cash (AQC) located in Broward County, which was owned by Wilson and Kate Lau. The CI also stated that Walker forged the payees’ endorsements on the back of the checks and provided Wilson Lau with the payees’ social security numbers and copies of altered Florida driver’s licenses.
Court documents state that during two undercover operations, Walker was given genuine, unendorsed treasury checks created specifically for this investigation. During another undercover operation, Walker was given three genuine, unendorsed treasury tax refund checks, which resulted from fraudulent tax returns filed by unknown persons in the names and social security numbers of real people. Walker was also provided with driver’s license numbers, social security numbers, and dates of birth for all of the payees on the checks. Walker went to AQC, and then gave the CI and/or undercover agent their portion of the cashed checks. After clearing the banking system, the checks that were created for this investigation included endorsements on the back, but the payees were fictitious and could not have endorsed the checks.
From February 2010 through May 2011, the total amount of U.S. Treasury checks cashed by Walker at AQC is approximately $1,234,114. The number of victims involved is greater than 50, but fewer than 250.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Secret Service. The case is being prosecuted by Assistant U.S. Attorney Alicia E. Shick.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Brother and Sister Charged with Conspiring to Unlawfully Import Rare White Boa Constrictor into the United States from BrazilRead the Press Release
SALT LAKE CITY - A federal grand jury returned an indictment Wednesday afternoon charging two Utah residents with conspiring to unlawfully import a rare white leucistic boa constrictor from Brazil into the United States for the purpose of breeding it with other boa constrictors and selling its offspring for a profit.
Jeremy Stone, age 39, of Lindon, and his sister, Keri Ann Stone, age 34, of Midvale, are charged in the four-count indictment with conspiracy to unlawfully import the snake into the United States; unlawfully importing the snake into the country; transporting the snake knowing it was imported into the United States contrary to law; and making and submitting false records for wildlife imported into the United States.
According to the indictment, Jeremy Stone is the owner of Jeremy Stone Reptiles, which is a business located in Lindon. In the course of its operations, Stone Reptiles bred and sold boa constrictors to customers in the United States and foreign countries.
The international trade of boa constrictors is regulated under the Convention on International Trade in Endangered Species (CITES) through the Endangered Species Act. Regulations require that those exporting wildlife through CITES to, among other things, obtain a certificate of origin from the governmental authority in the exporting country showing that the specimen to be exported originated in the country that issued the certificate of origin. Additionally, the U.S. Fish and Wildlife Service (USFWS) requires that those exporting or importing wildlife disclose the country of origin for the imported specimen, the total monetary value of the specimen, and the source of the specimen – whether it was “wild caught” or “bred in captivity,” the indictment says.
The indictment alleges that around December 2006, Jeremy Stone became aware of the existence of a rare white boa under the care of the Niteroi Zoo near Rio de Janeiro, Brazil. From 2007 until 2009, Stone sent thousands of dollars to the administrator of the zoo as payment for the white boa. The indictment alleges he knew that the boa was caught in the wild in Brazil and given to the zoo. He also knew that Brazil did not allow the export of wild-caught boa constrictors.
The indictment alleges the Stones and others committed several overt acts in furtherance of the conspiracy to import the snake to the United States. For example, from 2007 to 2009, Jeremy Stone sent or had others send emails to the zoo administrator discussing how he could obtain the white boa and leave Brazil without obtaining the proper export permits from Brazil. These emails included photos demonstrating how the administrator should pack the white boa in her luggage. In January 2009, Jeremy Stone paid for travel for himself and Keri Ann Stone to travel to Brazil and meet with the zoo administrator to obtain the white boa.
According to the indictment, a few days later the Stones attempted to leave Brazil on a cruise ship back to the United States, but they were denied permission to board the cruise ship because Kari Ann Stone appeared to be in the late months of pregnancy. They also attempted to board a flight to the United States. Airport security temporarily detained them upon finding that Keri Ann Stone was wearing a hollow, false pregnancy belly and brassiere. The indictment alleges they were testing airport security in Brazil.
The indictment alleges the Stones ultimately transported the white boa from Brazil into Guyana where a veterinarian was used to generate a certificate of origin falsely claiming that the white boa had been caught in the wild in Guyana. With a certificate of origin from Guyana, Jeremy Stone was able to facilitate the export of the white boa with other snakes from Guyana to the United States. The indictment alleges Jeremy Stone caused a U.S. Fish and Wildlife Service form to state that the value of the shipment of snakes was $220 and that the shipped snakes, including the white boa, had been caught in the wild in Guyana. The snakes were cleared for entry into the United States based on the false information on the form on about Jan. 29, 2009. Travel was then facilitated from Miami to Stone Reptiles in Lindon.
The indictment alleges Jeremy Stone bred the white boa with other boa constrictors at the business and sold the offspring for tens of thousands of dollars to buyers in the United States, Canada, and Italy, among other places.
Summonses will be issued to Jeremy and Kari Ann Stone to appear for an arraignment in federal court. The maximum potential penalty for the conspiracy count is five years in prison. The potential penalty for importing merchandise contrary to law count is 20 years and submitting false information on a USFWS form carries a potential penalty of five years in federal prison.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
Braddock Woman Charged with Stealing Mail from Shadyside and Southside MailboxesRead the Press Release
PITTSBURGH – A Braddock woman has been indicted by a federal grand jury in Pittsburgh on charges of theft of mail and destruction of letter/mail boxes, United States Attorney David J. Hickton announced today.
The 33-count indictment named Carolyne Korotko, aka Carolyne Elizabeth Golosky, 40, of Braddock, Pa., as the sole defendant.
According to the indictment, from March 2013, through December 2013, Korotko forcibly opened multiple mail boxes and stole the mail from victims in the Shadyside and Southside sections of Pittsburgh.
The law provides for a maximum total sentence of not more than 133 years in prison, a fine of $8,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. The defendant is presumed innocent unless and until proven guilty.
Bismarck Man Pleads Guilty to Killing His Brother on the Spirit Lake Indian ReservationRead the Press Release
FARGO – U.S. Attorney Timothy Q. Purdon announced that on Jan. 7, 2014, Orlen Francis Smith, Jr., 26, of Bismarck, N.D., pleaded guilty before U.S. District Judge Ralph R. Erickson to charges of voluntary manslaughter, assault resulting in serious bodily injury and assault with a dangerous weapon.
On Feb. 25, 2013, Smith, Jr., an enrolled member of the Fort Berthold Indian Reservation, went to the home of his brother, Daniel Smith, located in St. Michael, N.D., on the Spirit Lake Indian Reservation. An altercation occurred between Smith, Jr. and his brother Daniel. Smith, Jr. armed himself with a switchblade knife and swung at his brother, striking Daniel in the side of his chest, piercing his heart. Daniel died at the scene. Smith, Jr. then attacked two others in the residence, puncturing one person in the forearm with the knife and another individual suffered a laceration on the forehead.
The charge of voluntary manslaughter carries a maximum penalty of 15 years’ imprisonment. The charges of assault resulting in serious bodily injury and assault with a dangerous weapon each carry a maximum penalty of 10 years’ imprisonment.
The case was investigated by the Federal Bureau of Investigation.
Sentencing for Smith, Jr. has been set for April 7, 2014, at 1:30 p.m.
Assistant U.S. Attorney Janice M. Morley is prosecuting the case.
Beaumont ISD Employees Charged with Stealing over $4 MillionRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – The Director of Finance and Comptroller of the Beaumont Independent School District (BISD) have been indicted on federal charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Devin Wayne McCraney, 35, and Sharika Baksh Allison, 43, both of Beaumont, were named in a 19-count indictment returned by a federal grand jury today charging them with conspiracy and 18 counts of fraud.
According to the indictment, beginning in 2010, McCraney, Director of Finance for BISD, and Allison, Comptroller for BISD, are alleged to have devised schemes in which they embezzled $4,041,705.27 from BISD by means of 18 separate wire transfers to bank accounts under their personal control.
“FDR famously said, ‘The school is the last expenditure upon which America should be willing to economize’,” said U.S. Attorney Bales. “And the truth is that the citizens of Beaumont have heeded that wise advice and have spent lavishly on their public schools for the sake of the city’s children. But as this indictment illustrates, there are individuals at BISD who have corruptly embezzled from that generous provision by stealing over $4 million dollars that was intended to underwrite excellent schools in Beaumont. The Grand Jury has alleged that Devin McCraney and Sharika Allison have been caught red-handed and if convicted, they will face justice. In the same way, federal agents and prosecutors will remain vigilant to detect, investigate and hold accountable other so-called public servants who are abusing the public trust.”
"The FBI recognizes that fighting public corruption is vital to preserving our democracy," said SAC Stephen L. Morris. "Our public officials have and always will be held to a higher standard to maintain their positions of trust. These indictments today signify a violation of the public trust given to Devin McCraney and Sharika Allison."
If you have any information related to this matter, please call the Federal Bureau of Investigation at 409-832-8571.
“Today’s indictment alleges that these two public officials knowingly and willfully abused their positions of trust to steal funds from the very ones they promised to serve – the children of the Beaumont Independent School District. That is completely unacceptable,” said Neil Sanchez, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Southwest Regional Office. “OIG Special Agents will continue to aggressively pursue those who seek to enrich themselves at the expense of our nation’s students. America’s students, their families, and taxpayers deserve nothing less.”
The defendants each face up to 10 years in federal prison.
This investigation was conducted by the Federal Bureau of Investigation and the U.S. Department of Education Office of Inspector General. This case is being prosecuted by Assistant U.S. Attorneys Christopher T. Tortorice and Joseph R. Batte.
A grand jury indictment is not evidence of guilt and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Artesia Man Pleads Guilty to Federal Firearms ChargesRead the Press Release
ALBUQUERQUE – Anthony Herrera, 23, of Artesia, N.M., pleaded guilty this morning in Las Cruces federal court to firearms charges under a plea agreement with the U.S. Attorney’s Office.
Herrera was arrested in July 2013, based on a criminal complaint charging him with being a felon in possession of a firearm and ammunition, and was indicted in Oct. 2013 on that same charge and for unlawfully possessing an unregistered short-barreled shotgun on April 10, 2012 . At the time, Herrera was prohibited from possessing firearms or ammunition because he previously had been convicted of a felony offense of criminal solicitation.
Court filings reflect that the investigation leading to the charge against Herrera arose out of a drive-by shooting incident on Aug. 5, 2012. On that day, Eddy County Sheriff’s Office responded to a call regarding a drive by shooting during which numerous shots were fired at a residence and a vehicle. After Herrera was identified as the individual who fired the shots by witnesses, Eddy County Sheriff’s deputies executed a search warrant at his home on Aug. 10, 2012, at Herrera’s residence and found a .45 Caliber, semi-automatic pistol and ammunition. They also located a .12 gauge short-barreled shotgun and ammunition inside of Herrera’s truck.
During today’s proceedings, Herrera pled guilty to the indictment and admitted that he unlawfully possessed firearms, including an unregistered short-barreled shotgun, and ammunition in Aug. 2012.
Herrera has been in custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At his sentencing hearing, which has yet to be scheduled, Herrera faces a maximum penalty of ten years in prison.
This case was investigated by the Roswell office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Eddy County Sheriff’s Office with assistance from the Artesia Police Department and is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.Armed Career Criminal Sentenced to 18 Years in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Aaron Young, 37, of Providence, an armed career criminal previously convicted and sentenced in state court on felony assault, robbery and drug trafficking charges, was sentenced today in federal court to 216 months in federal prison on federal drug trafficking and firearms charges, announced United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.
Young was arrested by Providence Police in January 2013 during an investigation into his drug trafficking activities. Young has been held in state custody since his arrest by Providence Police as a parole violator on his previous state convictions.
At sentencing, U.S. District Court Judge Mary M. Lisi also ordered Young to serve 5 years of supervised release upon completion of his prison term. Young pleaded guilty on October 28, 2013, to one count each of possession with intent to distribute cocaine and being a felon in possession of a firearm.
According to information presented to the court, on January 7, 2013, Providence Police and R.I. DEA drug task force agents executed court authorized search warrants at Young’s Providence residence. As officers and agents entered Young’s second floor apartment through a front door, officers outside the rear of the building watched as Young exited his apartment through a rear door, discarded a bag and exited the building. Young was detained as he left the building and the bag discarded by Young, which contained a total 2.1 grams of cocaine in five packets, was recovered. A search of Young’s apartment resulted in the seizure of a loaded 9mm handgun with 15 live rounds in the magazine and items used in the sale and distribution of cocaine.
The case was prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr., with the assistance of R.I. Assistant Attorney General Jim Baum.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the R.I. DEA drug task force assisted Providence Police in the investigation of this matter.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]19th Micronesian Chief Executives Summit Invites U.S. Attorney to Speak on “Preventing Human Trafficking in the Pacific Region”Read the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), and Sarah Thomas-Nededog, Vice-President, West Care Pacific Islands, were invited to speak at the Micronesian Chief Executives Summit (MCES) held on December 4-6, 2013, in Saipan, NMI. The MCES is composed of the Chief Executives of the Territory of Guam, the Commonwealth of the NMI, the Republic of Palau, the Republic of the Marshall Islands, and the Federated States of Micronesia. The Governors of each of the Federated States of Micronesia -- Chuuk, Yap, Pohnpei, and Kosrae, are also members. The primary purpose of the MCES is to coordinate and implement regional strategies to assist its member jurisdictions.
U.S. Attorney Limtiaco and Ms. Thomas-Nededog spoke on the topic of “Preventing Human Trafficking in the Pacific Region,” and shared information on the Pacific Regional Response to Combat Human Trafficking initiative, which is a collaborative effort among the U.S. Attorney’s Office for the Districts of Guam and the NMI, the National District Attorneys Association, the Department of State, the Department of the Interior, Guam Human Trafficking Task Force, NMI Human Trafficking Intervention Coalition, and other community partners. U.S. Attorney Limtiaco and Ms. Thomas-Nededog also discussed the intersection and relationship between human trafficking, sexual assault, child abuse and domestic and family violence, and prevention and enforcement efforts in the Pacific region.The Pacific Regional Response to Combat Human Trafficking initiative employs a multidisciplinary model, including participation, coordination, and collaboration among law enforcement; prosecution; victim service providers; social services; medical, mental and public health professionals; faith based organizations; educational institutions; Consulates; and other community stakeholders. The response calls for the establishment and provision of victim services, investigation and prosecution of human trafficking, training opportunities, community outreach/ public awareness and prevention programs, and creation of human trafficking task forces and coalitions in the Pacific region island communities. Providing fundamental training in human trafficking, including victimization, investigation and prosecution, prevention efforts, and other related topics, to law enforcement; prosecution; victim service providers; social services; medical, mental and public health professionals; faith based organizations; educational institutions; Consulates; and other community stakeholders, in our Pacific region island communities, is critical to effective prevention and enforcement efforts in the region.
Photos of the summit are attached.
U.S. Attorney Alicia Limtiaco
Sarah Thomas-Nededog, Vice President,
West Care Pacific Islands
Tuesday 7 January 2014
“Duffel Bag Bandit” Pleads Guilty to Bank RobberyRead the Press Release
BOISE – Gerald Edward Massey, 56, formerly of Boise, Idaho, pleaded guilty today in United States District Court to bank robbery, U.S. Attorney Wendy J. Olson announced. Massey was indicted by a federal grand jury in Boise on August 14, 2013, for one count of bank robbery. He was living in Shreveport, Louisiana, at the time of his arrest in August 2013.
According to the plea agreement, Massey admitted that on March 6, 2013, he walked into a U.S. Bank branch located at 10700 Ustick Road in Boise. Massey admitted that he used intimidation to coerce the bank manager to let him into the vault. Massey took $64,500 in U.S. currency. Massey also admitted that he attempted to obstruct or impede the investigation by counseling a witness to lie to FBI agents regarding his knowledge of Massey’s crimes. Massey agreed to pay restitution of $84,627.73, an amount equal to the loss caused to U.S. Bank and the loss caused to the victims of three additional bank robberies not charged.
Massey faces up to 20 years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for April 1, 2014, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case is being investigated by the Federal Bureau of Investigation and Boise Police Department.
United States Government Settles False Claims Act Allegations Against Florida Vein Clinic and Its OwnerRead the Press Release
A Florida-based physician, Dr. Ravi Sharma, has agreed to pay $400,000 to resolve allegations that he and his clinics violated the False Claims Act by knowingly billing Medicare for vein injections and physician office visits performed by unqualified personnel, the Justice Department announced today.
“Vein injections and other invasive procedures should be performed by appropriately qualified personnel,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “We will not tolerate those who put patients’ health at risk for their personal gain and convenience.”
The government alleged that, between 2009 and 2010, Sharma owned and operated a clinic in the Tampa area called Premier Vein Centers. Beginning in 2009, Sharma allegedly sent text messages to his office manager instructing her to perform varicose vein injections on patients when he was not in the office. The government further alleged that, when Sharma was in the office, he performed unnecessary vein injections and unnecessary ultrasound imaging procedures associated with those vein injections.
Sharma also owned and operated, between 2009 and 2010, a weight loss clinic in the Tampa area called Life’s New Image. Allegedly, unqualified personnel met with patients of the clinic, but Sharma billed those visits as physician office visits using his own Medicare provider number. Sharma closed Premier Vein Centers and Life’s New Image in 2010.
“We are pleased to announce this very favorable resolution of our claims against this provider,” said Acting U.S. Attorney for the Middle District of Florida A. Lee Bentley III. “Again, it demonstrates our commitment to civil health care fraud enforcement in our district.”
The allegations covered by the settlement were originally raised in a lawsuit filed by Patti Lovell, the former office manager for Sharma, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for the submission of false claims and to receive a share of any recovery. Lovell will receive $72,000.
As part of the settlement, Sharma entered into a three-year Integrity Agreement with the Office of Inspector General of the Department of Health and Human Services. The agreement requires Sharma to attend training courses provided by the Centers for Medicare and Medicaid Services and provides for an independent external review of his federal health care program coding and billing procedures.This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $17 billion through False Claims Act cases, with more than $12.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The investigation of this matter reflects a coordinated effort among the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Middle District of Florida and the Department of Health and Human Services Office of Inspector General.
The lawsuit is captioned U.S. ex rel. Lovell v. Ravi Sharma, M.D. and Premier Vein Centers, 12-CV-133 (M.D. Fla.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
United States Government Settles False Claims Act Allegations Against Florida Vein Clinic and Its OwnerRead the Press Release
WASHINGTON – A Florida-based physician, Dr. Ravi Sharma, has agreed to pay $400,000 to resolve allegations that he and his clinics violated the False Claims Act by knowingly billing Medicare for vein injections and physician office visits performed by unqualified personnel, the Justice Department announced today.
“Vein injections and other invasive procedures should be performed by appropriately qualified personnel,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “We will not tolerate those who put patients’ health at risk for their personal gain and convenience.”
The government alleged that, between 2009 and 2010, Sharma owned and operated a clinic in the Tampa area called Premier Vein Centers. Beginning in 2009, Sharma allegedly sent text messages to his office manager instructing her to perform varicose vein injections on patients when he was not in the office. The government further alleged that, when Sharma was in the office, he performed unnecessary vein injections and unnecessary ultrasound imaging procedures associated with those vein injections.
Sharma also owned and operated, between 2009 and 2010, a weight loss clinic in the Tampa area called Life’s New Image. Allegedly, unqualified personnel met with patients of the clinic, but Sharma billed those visits as physician office visits using his own Medicare provider number. Sharma closed Premier Vein Centers and Life’s New Image in 2010.
“We are pleased to announce this very favorable resolution of our claims against this provider,” said Acting U.S. Attorney for the Middle District of Florida A. Lee Bentley III. “Again, it demonstrates our commitment to civil health care fraud enforcement in our district.”
The allegations covered by the settlement were originally raised in a lawsuit filed by Patti Lovell, the former office manager for Sharma, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for the submission of false claims and to receive a share of any recovery. Lovell will receive $72,000.
As part of the settlement, Sharma entered into a three-year Integrity Agreement with the Office of Inspector General of the Department of Health and Human Services. The agreement requires Sharma to attend training courses provided by the Centers for Medicare and Medicaid Services and provides for an independent external review of his federal health care program coding and billing procedures.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $17 billion through False Claims Act cases, with more than $12.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The investigation of this matter reflects a coordinated effort among the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Middle District of Florida and the Department of Health and Human Services Office of Inspector General.
The lawsuit is captioned U.S. ex rel. Lovell v. Ravi Sharma, M.D. and Premier Vein Centers, 12-CV-133 (M.D. Fla.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
United States Department of Justice and the State of Washington Announce Successful Health Care Fraud Settlement with Dr. Abhijit Deshpande and Pinnacle Health CareRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that the United States and the State of Washington have reached a civil settlement on behalf of the United States Department of Health and Human Services which administers the Medicare program and the Washington State Health Care Authority which administers the Medicaid program in the amount of $89, 965.38 for claims that Dr. Abhijit Deshpande and his clinics, the Yakima Sleep Center in Yakima, Washington, and the Pinnacle Sleep & Wake Disorder Center in Kennewick, Washington, both operating under the umbrella of his business Pinnacle Health Care, incorrectly overbilled the federal and state health care programs between January 1, 2009 through August 31, 2011. The settlement amount represents twice the amount of compensation received by Dr. Deshpande and Pinnacle Health Care for the alleged improper billing.
The settlement agreement between the United States Department of Justice, the State of Washington, Dr. Deshpande and Pinnacle Health Care secured the United States agreement to abstain from filing an affirmative civil enforcement lawsuit against the doctor and his company under the False Claims Act, Title 31 United States Code, Sections 3729 -3733 on the grounds of alleged fraudulent and false Medicare and Medicaid billings. Under the False Claims Act, parties who submit false claims to the Medicare and Medicaid programs can be held liable for triple the amount paid to the party through the false claim and subjected to civil penalties of $5,500 to $11,000 for each false claim submitted to the government. By accepting responsibility for their billing errors, Dr. Deshpande and Pinnacle avoided these potentially harsh penalties and worked with the United States and the State of Washington to obtain a mutually agreeable resolution to the claims.
As stipulated in the settlement agreement, the United States and the State of Washington alleged that from January 1, 2009, to November 30, 2009, Dr. Deshpande and/or Pinnacle Health Care submitted claims for nerve conduction studies, needle electromyography testing, and h-reflex testing when the services were not provided by a licensed physician; and that from January 1, 2009, through August 31, 2011, Dr. Deshpande and/or Pinnacle Health Care submitted claims for both the professional and technical component for polysomnographic testing when Dr. Deshpande and/or Pinnacle Health Care performed the technical component of the test, but the professional component was completed and billed for by a physician not associated with Dr. Deshpande and/or Pinnacle Health Care; the professional component of the testing was not provided in the United States; and/or the claims were duplicative (double-billing)
United States Attorney Michael C. Ormsby said: "Fraud against programs that fund health care in our community will not be tolerated and will not pay off for those who don't follow the rules. This matter is a superb example of the successful outcomes made possible by the collaborative efforts of our state and federal partners to investigate, combat, and resolve health care fraud."
"When providers commit Medicaid and Medicare fraud, less money is available for health care," said Attorney General Bob Ferguson. "Our Medicaid Fraud Control Unit collaborated with state and federal partners to crack down on fraud and recover funds for taxpayers."
The combined efforts of the United States Departments of Justice and Health and Human Services' in health care fraud prevention and enforcement have recovered $14.9 billion since January 2009 in cases involving fraud against federal health care programs.
The settlement with Dr. Deshpande and Pinnacle Health Care was the result of a coordinated effort among the United States Attorney's Office for the Eastern District of Washington, the United States Department of Health and Human Services Office of Inspector General and Office of Counsel to the Inspector General, the State of Washington Attorney General's Medicaid Fraud Control Unit, and the State of Washington Health Care Authority.
This matter was handled by K. Jill Bolton, an Assistant United States Attorney, and Marty Raap, an Assistant Attorney General with Medicaid Fraud Control Unit.
Two Men Indicted for Sex Trafficking of A MinorRead the Press Release
Baltimore, Maryland – A federal grand jury returned a superseding indictment today charging Rodney Hubert, a/k/a “Noah,” age 38, of Baltimore and New York, New York, and Charles Hufton, a/k/a “CJ,” age 25, of Cockeysville, Maryland, with conspiring to traffic a minor to engage in commercial sex acts and with sex trafficking of a minor.
The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to the indictment, from December 2012 through February 22, 2013, Hubert, a registered sex offender and Hufton, a bouncer at a lounge in Baltimore City, recruited and transported females, some of whom were minors, to engage in commercial sex acts for money. The defendants allegedly offered a “finders fee” to female prostitutes if they found additional females to work for them and took provocative or explicit photographs of the females and posted them to websites that host advertisements for commercial sex. According to the indictment, Hubert and Hufton provided a residence in Parkville, Maryland, for the females to host “in-call” prostitution and drove the females to “out-call” prostitution locations. Hubert and Hufton allegedly collected a large percentage of the females’ earnings.
Specifically, the indictment alleges that Hubert recruited a 19 year old associate to work for him as a prostitute beginning in December 2012. Hubert offered the 19 year old a commission to recruit the 16 year old victim to perform prostitution for Hubert. Hubert invited the minor victim to live with him, offered $400 to take provocative photographs of the victim wearing lingerie, and offered her $1,000 to make a pornographic film. According to the indictment, Hubert and Hufton created a pseudonym for the minor victim, “Ashley,” and advertised online that she would prostitute at both the Parkville “in-call” location and at “out-call” locations of prospective clients. Hufton allegedly used his phone to create and post the prostitution advertisements online and drove the prostitutes, including the minor victim, to “out-call” locations and collected a portion of their earnings.
The defendants face a maximum sentence of life in prison.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Mark W. Crooks, who is prosecuting the case.