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20 February 2014
Physician Arrested for Allegedly Illegally Dispensing Oxycodone and Falsely Billing Medicare in Undercover ProbeRead the Press Release
CHICAGO — A southwest suburban physician was arrested yesterday on federal charges for allegedly conspiring to illegally dispense a prescription medication and health care fraud, federal law enforcement officials announced today. The defendant, SATHISH NARAYANAPPA BABU, the owner of Anik Life Sciences Medical Corp., allegedly conspired to illegally dispense oxycodone and fraudulently billed Medicare for services he purportedly provided.
Federal agents with the Drug Enforcement Administration, the U.S. Department of Health and Human Services Office of Inspector General, and the FBI yesterday executed federal search and seizure warrants at Bubu’s residence in Bolingbrook and Anik’s offices in Darien in connection with the ongoing investigation of alleged prescription drug diversion and health care fraud. Agents seized more than $100,000 from Anik’s bank accounts. Anik Life Sciences was located in Arlington Heights before relocating to Darien last fall.
Babu, 47, was charged with one count each of conspiracy to illegally dispense a controlled substance and health care fraud in a criminal complaint. He was released on a $100,000 unsecured bond and prohibited from writing any prescriptions or submitting any claims to Medicare by U.S. Magistrate Judge Sheila Finnegan. Babu was ordered to return for a status hearing at 9:15 a.m. next Tuesday in U.S. District Court.
According to the complaint, between November 2012 and December 2013, Babu issued five prescriptions, each for 60 doses of 80mg strength OxyContin, to a patient who was actually an undercover agent, despite never having seen or examined the patient, and Babu permitted unlicensed personnel associated with Anik Life Sciences to issue prescriptions to the patient. During the same period, Babu allegedly submitted false claims to Medicare for services purportedly provided to the patient that were not rendered by Babu or another medical professional licensed in Illinois.
The undercover agent posed as a healthy individual purportedly covered by Medicare and seeking physician services to obtain prescription medication, including oxycodone. The agent further purported to have shoulder pain from a previous injury and to be on disability. On approximately 10 occasions, representatives from Anik Life Sciences, none of whom were licensed as physicians, nurses, or other medical professionals in Illinois, visited the undercover agent in his purported apartment.
Babu allegedly caused unlicensed personnel from Anik Life Sciences to provide purported medical care ― including prescriptions issued under Babu’s name and DEA registration number for controlled substances ― to the undercover agent and then billed Medicare for that purported care. Furthermore, the approximately 300 OxyContin pills that Babu allegedly prescribed to the undercover agent were paid for in large part by Medicare.
The arrest and charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Jack Riley, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration; Lamont Pugh III, Special Agent-in-Charge of the Chicago Regional Office of the HHS-OIG; and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government is being represented by Assistant U.S. Attorney Sarah Streicker.
Conspiracy to illegally dispense oxycodone carries a maximum penalty of 20 years in prison and a $1 million fine, and health care fraud carries a maximum penalty of 10 years in prison and a $250,000 fine, and restitution is mandatory. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Complaint
Ottawa, Illinois Man Sentenced to 7½ Years in Federal Prison for Receiving Child PornographyRead the Press Release
CHICAGO — An Ottawa, Ill., man was sentenced yesterday to 7½ years in federal prison for amassing a large collection of child pornography over more than four years. The defendant, JAY ARTHUR WIDEMANN, 57, of Ottawa, pleaded guilty last October to receiving child pornography, admitting that he had collected more than 10,500 illicit images and videos.
Widemann formerly owned an appliance store in Ottawa and there were no allegations or indications of any sexual contact with minors.
Widemann was also ordered to pay $70,000 in restitution ― $10,000 to each of seven identified victims ― and he was placed on supervised release for five years following his prison term by U.S. District Chief Judge Ruben Castillo. Widemann was ordered to surrender on April 2 and must serve at least 85 percent of his sentence before he is eligible for release. There is no parole in the federal prison system.
In imposing the sentence, Judge Castillo said it sends a message that such collections of child pornography must be stopped.
According to court documents, Widemann was charged after the Ottawa Police Department received information from the Dutch National Police in Holland that a computer in Ottawa had been used to download child pornography from a Dutch website with massive collections of child pornography. The internet protocol address of that computer was traced to Widemann’s store in Ottawa. After further investigation, Ottawa police learned that Widemann maintained a large collection of child pornography on his computers at his store and residence, which he had accumulated between 2004 and 2009.
Widemann’s “collection of child pornography contained approximately 10,532 images and videos of child pornography, including acts of penetration, extreme degradation, bestiality, and bondage,” Assistant U.S. Attorney Jennie Levin wrote in a sentencing memo.
The federal investigation was conducted by the FBI's Child Exploitation Task Force. The task force is part of a nationwide effort known as the Innocence Lost National Initiative targeting those involved in the commercial sexual exploitation of children in the United States. In Chicago, the CETF is comprised of FBI special agents and officers and investigators from the Chicago Police Department, the Cook County Sheriff's Office, and the Cook County State's Attorney's Office.
The sentence was announced today by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
Ocean Springs Businessman Pleads Guilty to Federal Program FraudRead the Press Release
Hattiesburg, Miss - Scott Walker, 34, of Ocean Springs, pled guilty today in U.S. District Court to one count of federal program fraud and one count of conspiracy to commit federal program fraud, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen.
Walker admitted creating and submitting a false invoice in the amount of $180,000 to the City of D’Iberville for payment of consulting services that were never performed in connection with a $3 million grant issued to the City of D’Iberville by the Mississippi Department of Environmental Quality.
Additionally, Walker admitted conspiring with his father, William Walker, to divert federal grant monies in a scheme that resulted in the federal grant monies being used to unlawfully purchase Scott Walker’s personal property in Ocean Springs, Mississippi.
"Today's guilty plea concludes a significant case of fraud committed against the City of D'Iberville," said U.S. Attorney Gregory K. Davis. "Today's guilty plea also takes us one step closer to holding accountable those who, through the Mississippi Department of Marine Resources, fraudulently diverted and misused both federal grants and money belonging to the State of Mississippi."
Daniel McMullen, Special Agent in Charge of the FBI in Mississippi, stated: “I’d like to recognize and commend the investigators whose tenacious pursuit of the truth resulted in this guilty plea. Scott Walker has admitted to and is taking responsibility for conspiring with others, including other public officials, to defraud the United States government for personal gain, validating the case the investigators had built against him. Crimes of this nature do not affect just one person or one community. Public corruption is just that – a corruption that affects everyone, if only by undermining their trust.”
Walker will be sentenced on May 6, 2014 at 1:30 p.m. by U.S. District Judge Keith Starrett in Hattiesburg. The maximum penalty for theft of government funds is ten years in prison and a $250,000 fine. The maximum penalty for conspiracy is five years in prison and a $250,000 fine.
This case was investigated by the Federal Bureau of Investigation with assistance from the Mississippi State Auditor’s Office. Criminal Division Chief John Dowdy, Assistant U.S. Attorney Jerry Rushing and Assistant U.S. Attorney Jay Golden 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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New Bedford Man Indicted for Armed Bank RobberyRead the Press Release
BOSTON – A New Bedford man was charged today with the armed robbery of a New Bedford credit union.
David A. Frates, 36, was charged with armed bank robbery. The indictment alleges that on Sept. 24, 2013, an individual, later determined to be Frates, entered the St. Anne’s Credit Union in New Bedford. Once inside, Frates, who was wearing a translucent mask and gloves, brandished what appeared to be a black semi-automatic firearm and demanded cash. The tellers handed Frates $1,098 which he stuffed inside an orange bag before fleeing the bank. A witness stated that Frates was wearing a gray sweatshirt with the words, “Bristol Community College” imprinted on the front. Following an investigation, Frates was arrested and officers recovered the gray sweatshirt, the translucent mask, an orange bag, and a black BB gun.
If convicted, Frates faces a maximum sentence of 25 years in prison, five years of supervised release, a $250,000 fine and $1,098 in restitution to St. Anne’s Credit Union.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Chief David Provencher of the New Bedford Police Department, made the announcement today. The case is being prosecuted by Kenneth G. Shine of Ortiz’s Major Crimes Unit.The details contained in the Indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Muskogee Man Pleads Guilty to Possession of Material Involving Sexual Exploitation of MinorsRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that MARCUS WAYNE HALL, age 42, of Muskogee, Oklahoma, pled guilty to Possession of Certain Material Involving the Sexual Exploitation of Minors, in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and 2252(b)(2).
Charges arose from an investigation by the Colorado Springs Police Department and the Federal Bureau of Investigation. The defendant was indicted in June, 2013.
The Indictment alleged that between in or about November 2011 and March 1, 2012, in the Eastern District of Oklahoma, the defendant, did knowingly possess and attempt to possess matters which contained visual depictions, as that term is defined in Title 18, United States Code, Section 2256(5), the production of said visual depictions involved the use of minors engaging in sexually explicit conduct, as that term is defined in Title 18, United States Code, Sections 2256(2)(A)-(B), and said visual depictions were of such sexually explicit conduct, and had been transported in interstate commerce by computer.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
The statutory range of punishment is up to 10 years imprisonment and/or up to a $250,000 fine.
Assistant United States Attorney Edward Snow represented the United States.
More Than 20 People Arrested Following Investigations into Widespread Health Care Fraud in D.C. Medicaid ProgramCharges Unsealed in Largest Health Care Fraud Takedown in D.C. HistoryRead the Press Release
WASHINGTON - More than 20 people, including operators of home care agencies and nurse staffing agencies, office workers, and personal care assistants, were arrested today following investigations into fraudulent billing practices in the home health care industry.
The arrests -- marking the largest health care fraud takedown in the history of the District of Columbia -- followed a multi-year effort by federal and local law enforcement agencies to target widespread fraud in the District of Columbia Medicaid program. More than 200 law enforcement agents fanned out across the region early today to make arrests, execute search warrants at 10 locations, and seize dozens of bank accounts and property.
The charges were announced by U.S. Attorney Ronald C. Machen Jr.; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Nicholas DiGiulio, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), for the region that includes Washington, D.C.; Kathy A. Michalko, Special Agent in Charge, Washington Field Office, U.S. Secret Service; Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI), and Charles J. Willoughby, Inspector General for the District of Columbia.
The investigation uncovered numerous, separate schemes involving fraud, kickbacks, and false billings in the growing field of home care services for D.C. Medicaid patients. Medicaid provides for such services to be performed by personal care aides, working for home care agencies. The aides assist Medicaid beneficiaries in performing activities of daily living, such as getting in and out of bed, bathing, dressing, keeping track of medication, and so forth. In order to be covered for such benefits, the beneficiaries must get a doctor’s prescription.
In one alleged scheme, the owner of three home care agencies, who was barred from participating in federal health care programs after her nursing license was revoked, is accused of collecting more than $75 million through the District of Columbia and Maryland Medicaid programs. In other alleged schemes, individuals are accused of recruiting and teaming up with Medicaid beneficiaries, who faked or exaggerated symptoms so they could sign up for home health care and then received cash payments of approximately $200 every two weeks to sign timesheets falsely stating that they received home care services when they did not. Bills were submitted on behalf of these individuals for services that never were provided, costing D.C. Medicaid hundreds of thousands of dollars. Finally, one scheme involves a woman accused of selling counterfeit home health care aide certificates.
“This investigation has revealed that Medicaid fraud in the District of Columbia is at epidemic levels,” said U.S. Attorney Machen. “This fraud diverts precious taxpayer dollars, drives up the cost of health care, and jeopardizes the strength of a program that serves the most vulnerable members of our society. However, as today’s arrests, searches, and seizures demonstrate, we are aggressively fighting back to protect the U.S. taxpayer and the integrity of our federal health care programs.”
“Medicaid fraud rings are criminal enterprises that threaten our health care system and our public safety, and they will not be tolerated,” said Assistant Director in Charge Parlave. “Today’s arrests are part of a well-coordinated action with our law enforcement partners that puts criminals on notice that we are actively working to identify, arrest and prosecute anyone who participates in defrauding government programs designed to assist truly deserving patients.”
“Criminal organizations that steal from the District of Columbia Medicaid program are robbing the bank of health care money and cheating honest citizens of resources needed for their care,” said Special Agent in Charge DiGiulio. “We will work tenaciously with our law enforcement partners to fully investigate these disturbing allegations.”
“While it cannot be overly emphasized that this is an announcement of the charging of individuals for alleged criminal conduct with respect to the Medicaid program, the bringing of the charges demonstrates how the District of Columbia Office of the Inspector General continues to work with its law enforcement partners and District agencies to safeguard the District’s residents and treasury, collaborations that I continue to be proud of,” said Inspector General Willoughby.
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The various investigations were conducted by the FBI’s Washington Field Office; the U.S. Department of Health and Human Services, Office of Inspector General; the U.S. Secret Service; the Medicaid Fraud Control Unit of the District of Columbia’s Office of the Inspector General; the Internal Revenue Service-Criminal Investigation; the U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations (HSI); the Office of Labor Racketeering and Fraud Investigations, Office of Inspector General, Department of Labor; the Social Security Administration, Office of Inspector General, and the Medicaid Fraud Control Unit of the Maryland Attorney General’s Office. Assistance was provided by the District of Columbia’s Department of Health Care Finance and other agencies.
Twelve defendants were named in a total of five indictments that were unsealed today in the U.S. District Court for the District of Columbia. Each of the indictments includes a forfeiture allegation seeking a money judgment representing the proceeds of the alleged scheme.
An additional 13 defendants were charged in the Superior Court of the District of Columbia with first-degree fraud.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws. Every defendant is presumed innocent until, and unless, proven guilty.
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The following charges were unsealed today:
- United States v. Florence Bikundi
Bikundi, the owner of three home care agencies, is charged in a federal indictment with health care fraud, Medicaid fraud, and other charges in a scheme to secure more than $75 million in D.C. Medicaid payments, even though she was barred from participating in any federal health care programs. The charges include multiple counts of money laundering for the manner in which she allegedly conducted financial transactions to conceal the nature, source, and location of her illegal proceeds.
Bikundi 51, also known as Florence Ngwe and Florence Igwacho, of Bowie, Md., owns two entities named Global Healthcare, Inc., and one named Flo-Diamond Inc. In April 2000, according to the indictment, HHS-OIG notified Bikundi in writing that she was excluded from participation in Medicare, Medicaid, and all federal health care programs. This notice was based on the revocation the previous year of Bikundi’s nursing license in Virginia. The exclusion was issued against Bikundi under her name of Florence Igwacho.
Bikundi subsequently concealed her past when she secured Medicaid provider numbers for her businesses using the name of Florence Bikundi, the indictment alleges. She also did not disclose that her nursing licenses were revoked in Virginia, South Carolina and the District of Columbia, the indictment alleges.
In violation of the terms of her exclusion, between July 2007 and the present, according to the indictment, Bikundi’s entities received more than $78 million in payments from Medicaid; of this, $75 million came from the District of Columbia program and the rest from Maryland.
-United States v. Arrey Kingsly Etchi-Banyi, et al
Five individuals, including the owner of a nurse staffing agency, are charged in a federal indictment with conspiracy to commit health care fraud, health care fraud, and other charges in a scheme that allegedly defrauded D.C. Medicaid out of more than $498,000.
Etchi-Banyi, 30, of College Park, Md., owns Ultimate Goal Home Care Agency, Inc., a nurse staffing agency based in Maryland. Ultimate Goal Home Care Agency contracted with home care agencies to provide personal care aides. He is accused of conspiring with four named defendants to get Medicaid payments for personal care services that never were provided.
According to the indictment, from February 2012 to October 2013, Etchi-Banyi and others recruited at least 19 D.C. Medicaid beneficiaries to sign up for personal care and other services that they actually would not receive. The beneficiaries were paid kickbacks to sign up, the indictment alleges, and coached by Etchi-Banyi on what to tell doctors in order to justify their entitlement for personal home care.
The defendants then allegedly paid additional kickbacks to the beneficiaries to prepare false timesheets for home care services that were not provided. These timesheets were used to bill D.C. Medicaid at least $498,000 for services not provided, the indictment alleges.
In addition to Etchi-Banyi, those indicted include three purported personal care aides who worked for Utlimate Care: Oyebola Hammed Babarinde, 25, of Forestville, Md.; Oluwatoyin Bakare, 25, of Laurel, Md., and Cecilia Acquah, 32, of Silver Spring, Md., who also was the office manager. Also indicted was Oyebisi Zaart Babarinde, 31, of Forestville, Md., the sister of Oyebola Hammed Babarinde; she worked for a home care agency.
-United States v. Felix Aburi Fon, et al
Two individuals, both personal care aides, are charged in a federal indictment with conspiracy to commit health care fraud, health care fraud, and other charges in a scheme that allegedly defrauded D.C. Medicaid out of more than $124,000.
Felix Aburi Fon, 41, and his wife, Mirabel Tenjoh Mukum, 32, both of Takoma Park, Md., were personal care aides for Immaculate Health Care Services, a home care agency operating out of the District of Columbia. Mukum also worked for Nursing Unlimited Services, Inc., a home care agency operating out of the District of Columbia.
According to the indictment, from April 2012 through September 2013, Fon and Mukum recruited two D.C. Medicaid beneficiaries into the scheme by offering kickbacks to sign up for personal care services and help submit false timesheets for work that was not performed. Fon and Mukum allegedly carried out this scheme with an unnamed co-conspirator, who worked as a personal care aide for the Vizion One home care agency.
The indictment provides details about $124,000 in allegedly fraudulent claims submitted to D.C. Medicaid and paid to Nursing Unlimited Services, Inc. and Vizion One.
-United States v. Ernest N. Nkongsah, et al
Three individuals, including two personal care aides, are charged in a federal indictment with conspiracy to commit health care fraud and health care fraud in a scheme that allegedly defrauded D.C. Medicaid out of more than $54,000.
From March 2013 until October 2013, according to the indictment, Ernest N. Nkongsah, 38, of New Carrollton, Md., recruited two people to sign up for personal care and other services that they did not receive; one was an undercover law enforcement agent purporting to be a D.C. Medicaid beneficiary. These people were paid kickbacks to sign up, according to the indictment, and then coached by Nkongsah and co-defendant Elizabeth E. Arung on how to make false representations to doctors and nurses so that they could be made eligible for personal care.
Nkongsah and Arung allegedly worked with co-defendant Emiline Desiree Nkemera Besong to prepare false timesheets. The Medicaid claims were submitted on behalf of Vizion One, a home care agency based in the District of Columbia, even though no services were provided. The indictment provides details about more than $54,000 in fraudulent claims.
Arung, 41, of Silver Spring, Md., was a personal care aide at Vizion One, as was Besong, 35, of Hyattsville, Md.
-United States. v. Adoshia L. Flythe
Flythe, a personal care aide, is charged in a federal indictment with health care fraud and aggravated identity theft for her role in a scheme that involved counterfeit health certificates.
Flythe, 36, of Washington, D.C., worked for a home care agency in the District of Columbia. She is accused of selling counterfeit documents to help enable people to become personal care aides, making them eligible for Medicaid reimbursement.
Flythe allegedly sold packages that included a counterfeit “Home Health Care Aide” certificate from the University of the District of Columbia and a counterfeit “Health Certificate for Staff” that contained the forged name and signature of at least one doctor, to two individuals. The individuals purportedly wanted to apply for employment with a home care agency and to cause Medicaid to be billed for personal care services.
Superior Court Cases
Four separate cases were filed in the Superior Court of the District of Columbia, involving a total of 13 defendants and more than $35,000 in D.C. Medicaid payments.
The cases involve separate schemes in which D.C. Medicaid beneficiaries were induced with kickbacks to participate in home health care frauds. As in some of the federal cases, D.C. Medicaid was billed for services that never were provided.
Those charged with first-degree fraud in the Superior Court of the District of Columbia include: Cedonne Ngwilefem Alemnji, 28, of Hyattsville, Md.; Dennis Allen, 56, of Washington, D.C.; Niba Ayinwingong, 49, of Glenarden, Md.; Etienne Boussougou, 34, of Hyattsville, Md.; Ulric Ayo Boyle, 47, of Silver Spring, Md.; Rose Epse-Acha, 53, of Greenbelt, Md.; Brandon Chenwi Shu Fobeth, 28, of Greenbelt, Md.; Michael Fomundam, 38, of Greenbelt, Md.; Eric Mukala, 47, of Bladensburg, Md.; Michael Nyantakyi, 32, of Lanham, Md.; Eliane Poungoum, 47, of Bladensburg, Md.; Victor Tarkeh, 47, of Bowie, Md., and Paul Tengwei, 31, of Takoma Park, Md.
In addition to the arrests, 55 federal seizure warrants were executed today. The contents of 46 bank accounts associated with Bikundi that contained funds received from D.C. Medicaid were seized, as were the contents of three bank accounts associated with Etchi-Banyi’s alleged fraud. In addition, six vehicles purchased with proceeds from the various schemes were seized. A Cadillac Escalade, a Mercedes Benz, a Porsche Panamera, a Land Rover, a Range Rover, and a BMW were seized from Bikundi, and a Toyota Highlander was seized from Etchi-Banyi.
The indictment against Bikundi also alleges that her residence is subject to forfeiture, as it was purchased with funds she received from D.C. Medicaid.
The FBI has set up a hotline number to report suspected incidents of Medicaid fraud: 855-281-1242. People can also provide information by e-mail to [email protected].
HHS-OIG also has a hotline that can be reached at 800-HHS-TIPS or by visiting the agency’s website at http://oig.hhs.gov/ and clicking on the “Report Fraud” tab.
The cases are being prosecuted by Special Assistant U.S. Attorney Dangkhoa Nguyen and Assistant U.S. Attorneys Ted Radway, Michael Friedman, and David Johnson, the office’s health care fraud coordinator, all of the Fraud and Public Corruption Section, and Assistant U.S. Attorney Anthony Saler of the Asset Forfeiture and Money Laundering Section.
Assistance was provided by Forensic Accountant Maria Boodoo; Paralegal Specialists Toni Donato, Donna Galindo, Krishawn Graham, Tasha Harris, Shanna Hays, Corinne Kleinman, and Nicole Wattelet; Legal Assistants Angela Lawrence, Jessica McCormick, and Christopher Samson; Litigation Support Specialist Ron Royal; Criminal Investigator Matthew Kutz; Law Clerk Anne Ben-Ami; former Paralegal Specialists Lenisse Edloe and Diane Hayes; and former Assistant U.S. Attorney Angela Saffoe.
14-042Michigan Men Charged with Bank Robbery of Bradford National Bank in HighlandRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Ramsey Z. Fakhouri, 22, and Alexander P. Gerth, 18, both of Troy, Michigan, were indicted by a federal grand jury on February 20, 2014, with bank robbery.
Documents filed with the court allege that on February 14, 2014, the defendants robbed the Bradford National Bank in Highland, Illinois, of $25,780.00 in United States currency, which they obtained by force, violence, and intimidation from a bank employee as the bank employee was re-stocking the bank’s ATM machine.
Note: A defendant is presumed innocent of a charge unless proven guilty beyond a reasonable doubt.
The bank robbery statute carries maximum possible penalties of 20 years in federal prison, a $250,000 fine, or both, and three years’ supervised release.
The case is being prosecuted by Assistant U.S. Attorney Stephen B. Clark. The case was investigated by the Highland Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Federal Bureau of Investigation.
Mexican Businessman Indicted in Broadening Campaign Finance InvestigationRead the Press Release
San Diego – Mexican businessman Jose Susumo Azano Matsura was charged in an indictment unsealed today with making an illegal campaign contribution to a San Diego mayoral candidate.
Azano, 48, was arrested by FBI agents at his Coronado home Wednesday morning. He was arraigned in federal court this afternoon before U.S. Magistrate Judge Mitchell D. Dembin.
Today’s indictment makes it clear that Azano was the foreign national responsible for the $120,000 illegal campaign contribution to a San Diego mayoral candidate referred to in prior court records. According to federal law, it is illegal for a foreign national to donate to political campaigns in the U.S. Also charged in related cases are San Diego lobbyist Marco Polo Cortes, former San Diego Police detective Ernesto Encinas and Ravneet Singh, owner of the campaign services company known as ElectionMall Inc., which is also charged as a corporate entity.
According to court documents, Cortes, Singh and Encinas conspired to funnel more than $500,000 of illegal foreign money into San Diego municipal and federal campaigns, primarily in 2012 and 2013. The source of the illegal foreign money, the court records said, was a person referred to as “the Foreign National.”
The $120,000 sum in the Azano indictment is the same transaction described in a January 21, 2014 complaint that charges Cortes with conspiracy to finance political campaigns using money from an illegal foreign source. That complaint says: “Using money that the Foreign National had given him, the straw donor wrote a $120,000 check from one of his corporation’s bank accounts to an independent expenditure committee that favored Candidate 3.”
The “straw donor” is still identified in court records only as a La Jolla businessman who acted as a conduit for large campaign donations from the Foreign National.
According to a February 18 grand jury indictment charging Cortes, Singh and his company, ElectionMall Inc., “After directing the Straw Donor to write checks in favor of certain campaigns, the Foreign National would reimburse him.”
That indictment also describes a “war room” created by Singh, Cortes and another coconspirator within the campaign offices of an unidentified mayoral candidate, “for the purpose of making unreporterd inkind contributions financed by the Foreign National.”
The straw donor and candidates are not identified because they have not been charged as members of the conspiracy.
DEFENDANT Case Number: 14cr388MMAJose Susumo Azano Matsura
Age: 48 Coronado, CA SUMMARY OF CHARGESCount 1: Campaign Contribution by a Foreign National – Title 2, U.S.C., Sections 437g (d) (1) (A) (i) and 441e (A) (1).
INVESTIGATING AGENCIES
Maximum Penalties: Up to five years in prison and $250,000 fineFederal Bureau of Investigation
Internal Revenue Service
San Diego Police Department*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Medicine Bow Resident Convicted of Federal Firearms ViolationsRead the Press Release
U.S. Attorney Christopher A. Crofts announced today that Medicine Bow resident Robert James Truby has been convicted in federal court. Truby was charged in a two count indictment with violations of 18 U.S.C. § 922(g)(1), felon in possession of a firearm, and 26 U.S.C. § 5861(d), possession of an unregistered firearm, that being a sawed off shot-gun with a barrel less than 18 inches. A jury found Truby guilty on both counts after a two-day jury trial in the U.S. District Court in Casper. Truby is scheduled to be sentenced by Federal District Court Judge Skavdahl on April 29, 2014.
The investigation in this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, assisted by the Wyoming Highway Patrol, Albany County Sheriff’s Office, and the Wyoming Division of Criminal Investigation Crime Lab.
Massachusetts Man Admits Role in Robbery Spree of Southern New England PharmaciesRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DALBERT RODRIGUEZ, 30, formerly of Holyoke, Mass., pleaded guilty today before U.S. Magistrate Judge Donna F. Martinez in Hartford to his role in a robbery spree of pharmacies in Connecticut, Massachusetts and Rhode Island.
According to court documents and statements made in court, on November 13, 2013, RODRIGUEZ was arrested on a criminal complaint charging him with the armed robbery of a CVS store located at 972 Silver Lane in East Hartford. At approximately 9:00 p.m. on October 18, 2013. RODRIGUEZ entered the CVS, proceeded to the pharmacy counter, passed through a swinging door and approached the pharmacist who was behind the counter. RODRIGUEZ displayed a handgun to the pharmacist and instructed him to open the safe. RODRIGUEZ then removed numerous pill bottles from the safe, placed them in a plastic bag and exited the store.
In pleading guilty to one count of conspiracy to interfere with commerce through robbery, RODRIGUEZ admitted his role in the robbery of the East Hartford CVS. RODRIGUEZ also admitted to participating in 10 additional pharmacy robberies between June 2013 and November 2013, including robberies of a Rite Aid on Northampton Street in Holyoke, Mass., on June 19; a Rite Aid on Meadow Street in Chicopee, Mass., on June 30; a CVS on Longmeadow Street in Longmeadow, Mass., on July 13; a Rite Aid Pharmacy on Bridge Street in East Windsor, Conn., on August 8; a Walgreens on Deming Street in Manchester, Conn., on August 15; a CVS on Hazard Avenue in Enfield, Conn., on August 25; a Walgreens on the Berlin Turnpike in Newington, Conn., on September 10; a Rite Aid Pharmacy on East Street in Plainville, Conn., on September 27; a Walgreens on West Street in Cromwell, Conn., on October 4, and a Walgreens on North Main Street in Providence, R.I., on November 9.
Controlled substances, including oxycodone, were stolen during each of the robberies, and what appeared to be a firearm was displayed or possessed during several of the robberies.
RODRIGUEZ, who has been detained since his arrest, is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on May 16, 2014, at which time he faces a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stated that the investigation is ongoing.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration, the Massachusetts State Police, and the police departments in each town where the robberies occurred. The case is being prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Maker of Erectile Dysfunction Products Admits to Misbranding and Selling Drugs as "All-Natural" Herbal SupplementsRead the Press Release
“Mojo Risen” And Other Pills Contained Pharmaceutical Compounds Smuggled From China
CHARLOTTE, N.C. – An Ashe County man pleaded guilty in federal court today to defrauding consumers of nearly $5 million by misbranding erectile dysfunction drugs and selling them as “all natural” herbal supplements, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
David W. Bourne, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), Miami Field Office, and Keith Fixel, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS), join U.S. Attorney Tompkins in making today’s announcement.
Kamran Rezapour, 52, of Creston, N.C. pleaded guilty before U.S. Magistrate Judge David C. Keesler to one count of wire fraud and two counts of drug misbranding. At today’s plea hearing, Rezapour admitted that from 2009 through April 2013, he defrauded consumers of nearly $5 million, by fraudulently and falsely claiming that his erectile dysfunction products were “100 % safe and natural.” Rezapour admitted that his products, in fact, contained ingredients similar to prescription drugs such as Viagra, which require FDA approval to market and distribute. According to court documents, Rezapour was the owner and operator of Nutrition for Health, Inc. and Mojo Risen, LLC. Through these companies, Rezapour sold dietary supplements, male enhancement drugs and erectile dysfunction drugs, including Mojo Risen, Mojo Sensation and VajiVedic. Court documents indicate that Rezapour advertised Mojo Risen and the other erectile dysfunction pills as non-prescription, “all natural” herbal supplements. As part of his plea, Rezapour admitted that in order to induce consumers to purchase his Mojo Risen, Rezapour made multiple and repeated false claims that the sexual enhancement products were “100% safe and natural” and without “harsh and dangerous side effects.”
Rezapour admitted in court today that these claims were false. Court documents indicate that Mojo Risen, Mojo Sensation and VajiVedic contained pharmaceutical and prescription compounds, including sildenafil (the active ingredient in Viagra) and its chemical analogue noracetildinafil, which Rezapour smuggled into the United States from China. Rezapour did not list sildenafil, noracetildenafil or any another prescription ingredient in the packaging and advertising material for the supplements and did not provide any warnings about the possible adverse side effects of sildenafil and noracetildenafil. Court documents indicate that these products also did not bear the symbol “Rx only” on their labels, as is required for all prescription drugs.
According to court records, Rezapour and his Chinese supplier evaded detection of the pharmaceutical and prescription compounds by U.S. Customs authorities and the FDA by falsely labeling the packages as “paint products,” “care product[s]” and “gift[s].” Rezapour ultimately distributed his products nationwide, including to customers located in Charlotte, and received approximately $4,944,939 in payments for the fraud scheme.
During the course of the investigation, law enforcement agents seized approximately $1.5 million in funds, and gold and silver coins in connection with the fraud. Rezapour has agreed to forfeit all of these assets as part of his plea agreement in this case.
“Rezapour’s customers bought his mislabeled drugs as safe alternatives to prescription medications,” said U.S. Attorney Tompkins. “What’s particularly troubling is that Rezapour knew his products contained certain ingredients that could cause serious health consequences, yet he marketed and sold his supplements without appropriate warning labels. My office and our federal partners will prosecute those who profit from the reckless sale of misbranded drugs to unsuspecting consumers.”
“Protecting the American public from those utilizing the mail for illegal purposes is of primary concern to the Postal Inspection Service,” said Keith Fixel, Inspector in Charge of USPIS’s Charlotte Division. “Working with our law enforcement partners, we will vigorously pursue those who attempt to use the mail for unlawful gain and who prey upon unsuspecting consumers.”
At sentencing, Rezapour faces a maximum prison term of 20 years and a $250,000 fine for the wire fraud charge and a maximum prison term of three years and a $250,000 fine for each count of misbranding drugs. In his plea agreement, Rezapour has agreed to pay full restitution for any losses resulting from his criminal scheme. The final restitution amount will be determined by the Court at Rezapour’s sentencing hearing, which has not been scheduled yet. Rezapour has been detained since April 17, 2013.
The investigation into Rezapour was conducted by FDA-OCI and USPIS, with the assistance of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution is handled by Assistant U.S. Attorney Kelli Ferry and Special Assistant U.S. Attorney Erin Comerford of the U.S. Attorney’s Office in Charlotte.
In June 2013, the FDA issued a warning against Mojo Risen, advising consumers not to purchase or to discontinue using this product immediately. The FDA also advised consumers who have experienced any negative side effects as a result of using this product to consult a health care professional as soon as possible. For more information please visit:
https://www.fda.gov/drugs/resourcesforyou/consumers/buyingusingmedicinesafely/medicationhealthfraud/ucm355904.htm.
Los Alamos Man Pleads Guilty to Bank Robbery and Fleeing from an Immigration CheckpointRead the Press Release
ALBUQUERQUE – Anthony P. Chavez, 32, of Los Alamos, N.M., entered a guilty plea to an indictment charging him with bank robbery and high speed flight from an immigration checkpoint. In entering his guilty plea, Chavez admitted robbing Wells Fargo Bank branch located at 5555 Montgomery Blvd. NE in Albuquerque, N.M., on June 29, 2013, and engaging in a high speed flight while trying to evade the Interstate 10 U.S. Border Patrol checkpoint near Deming, N.M., the following day.
Court records reflect the bank was robbed shortly after noon on June 29, 2013, by two men, one of whom approached the bank tellers with a demand note and the other who remained near the door as a lookout. The demand note claimed that there were two others involved in the robbery and that the robbers were armed. After the tellers complied with the robber’s demand for cash, the robber and his lookout fled from the bank.
Shortly before 6:00 a.m. on June 30, 2013, Chavez sought to evade the Interstate 10 U.S. Border Patrol checkpoint near Deming by driving his vehicle at speeds up to 110 miles per hour. Customs and Border Protection (CBP) agents and New Mexico State Police officers pursued and stopped Chavez’s vehicle after a ten minute pursuit and arrested Chavez for the felony offense of high speed flight from an immigration checkpoint. While being placed in a CBP vehicle, Chavez spontaneously stated that he had robbed a bank the day before. After viewing surveillance camera photographs of the bank robber who approached the tellers with the demand note, CBP agents determined that Chavez was one of the two individuals who robbed the Wells Fargo Bank branch in Albuquerque the day before.
Chavez has been in federal custody since his arrest and remains detained pending sentencing. At sentencing, Chavez faces a maximum sentence of 20 years in prison on each of the two charges to which he pleaded guilty.
This case was investigated by the Albuquerque office of the FBI, the Customs and Border Protection, U.S. Border Patrol El Paso Sector, and the New Mexico State Police, and is being prosecuted by Assistant U.S. Attorney Charles L. Barth.
Local Woman Indicted on Fraud Related ChargesRead the Press Release
St. Louis, MO – JILLIAN NICHOLS, a local paralegal, was indicted on charges involving her attempt to defraud a law firm client by falsely representing that the prosecutor on the client’s criminal case had solicited a bribe. Nichols is also charged with lying to the FBI about her illegal conduct.
According to the indictment, Jillian Nichols worked for a local law firm, assisting one of the firm’s attorneys on his legal cases. She had no formal legal training and was paid hourly. While she was working at the firm, she worked on the defense of a state felony criminal case pending in St. Louis County Circuit Court against a firm client. As part of her duties, she worked closely with the client in investigating and helping prepare his defense, often meeting with him, as well as speaking with him on the telephone and texting, outside the presence of the defense attorney. Nichols left the defense attorney’s firm in September, 2013. After Nichols left the law firm, she continued to meet with the client and discuss his criminal case with him. There was an assistant prosecuting attorney in St. Louis County assigned to the client’s criminal case. The indictment states that between June and December 2013, Nichols engaged in a scheme to defraud the client by falsely telling him that the prosecutor had solicited a payment of $10,000 in order to give favorable consideration in his pending criminal case. She falsely represented that she had favorable evidence “planted” on the client’s cell phone in order to support his defense. She also allegedly falsely represented that she had paid the forensic expert hired by the defense attorney to analyze his cell phone so that the expert would validate and verify the “planted” evidence. On December 10, in response to Nichols’ false statements about the $10,000, the client agreed to give her an initial $5,000 in cash for her to pay the bribe to the prosecutor, and then an additional $5,000 after the prosecutor gave him favorable consideration in his pending criminal case. In order to conceal the scheme, she told the client not to tell his defense attorney of their discussions about purportedly bribing the prosecutor or planting evidence on his cellular phone.Finally, the indictment alleges that Nichols lied repeatedly to the FBI about her involvement in the scheme when interviewed as part of their investigation in December 2013.
Nichols, St. Louis, Missouri, was indicted by a federal grand jury on one felony count of wire fraud and one felony count of making false statements. She is expected to appear in federal court today.
If convicted, wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000; making false statements carries 5 years and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation-Public Corruption Task Force, including officers of the St. Louis Metropolitan Police Department. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Local Tax Preparer ArrestedRead the Press Release
HOUSTON - Diane Caldwell Larry has been charged in a 21-count indictment alleging 19 counts of preparing false client tax returns and two counts of interfering with the enforcement of tax laws, announced United States Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of Internal Revenue Service-Criminal Investigation.
“Those who might consider preparing false tax returns this filing season should be aware of the consequences of their actions,” said Cruz. “This indictment emphasizes that the Internal Revenue Service and U.S. Attorney’s office will continue their aggressive pursuit of those who attempt to defraud America's tax system. Taxpayers should also be very cautious when selecting someone to prepare their returns because ultimately they are responsible for what gets filed with the IRS.”
The indictment was returned Feb. 12, 2014, and unsealed yesterday upon her arrest. She is expected to make an initial appearance before U.S. Magistrate Judge George C. Hanks Jr. at 10:00 a.m. today.
According to the indictment, Larry operated a tax return preparation business in Houston under the name Paradise South Tax Services. She allegedly prepared dozens of materially false client tax returns during calendar years 2008 through 2011. The indictment also alleges she included in these tax return bogus “side business” losses and false and excessive itemized deductions and credits in order to generate excessive refunds totaling approximately $200,000. The indictment further alleges that when some of these tax returns were audited, Larry made up false documents to create an illusion of legitimacy for some of the false and excessive itemized deductions.
If convicted, Larry faces up to three years in federal prison and a possible $250,000 fine on each count.
The case, investigated by IRS-CI, is being prosecuted by Assistant United States Attorney Jimmy Sledge Jr.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Lewiston Man Sentenced for Pharmacy RobberyRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that
Anthony W. Post, 19, of Lewiston, Maine, was sentenced today in U.S. District Court in Bangor to two years in prison and three years of supervised release for robbing a pharmacy. He pleaded guilty to that crime on March 12, 2013. He was also ordered to pay restitution in the amount of
$1,587.51.Court records reveal that on January 22, 2013, the defendant entered a CVS in Augusta wearing sunglasses with a scarf across his face. He presented a note at the pharmacy counter that demanded oxycodone, claimed he had a gun, and threatened to shoot if his demand was not met.
Candace Eaton and Stephanie McCormick were in a car waiting for Post. McCormick had planned the robbery and authored the demand note. McCormick was sentenced in December
2013 by Chief U.S. District Judge John A. Woodcock, Jr. to three years and ten months in prison, three years of supervised release, a fine of $1,000, and a restitution obligation. Eaton was the getaway driver and she took a share of the stolen pills. She was sentenced in December 2013 to one and one half years of imprisonment and three years of supervised release for being an accessory after the fact to the robbery of a pharmacy. She was also fined $5,000 and ordered to pay restitution.
The investigation was conducted by the Federal Bureau of Investigation and the Augusta
Police Department.Lafayette Woman Pleads Guilty to Stealing More Than $500,000 from EmployerRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that Bunnie Morris, 60, of Lafayette, entered a guilty plea Wednesday before U.S. Magistrate Judge C. Michael Hill, to defrauding more than a half million dollars from the Lafayette company where she worked.
According to evidence presented at the guilty plea, Morris was employed as a financial accountant/bookkeeper for Waste Auditors Inc. from 2001 to 2009. During that time, she forged signatures on numerous payroll, bonus, and expense account corporate checks processed through two banks totaling $579,050. Not only did she forge checks and expense account information, she negotiated and received unauthorized payments in the form of pay raises and bonuses. In order to disguise her actions, she voided all fraudulent checks that she had cashed or deposited, when in fact she negotiated and received benefits from those checks. Morris also was not a signatory on any corporate checking account and was required to obtain signatures from supervisors before executing a transaction.
Morris faces up to 30 years in prison, five years of supervised release, and a $1 million fine for one count of bank fraud. Sentencing is set for June 11, 2014.The U.S. Secret Service conducted the investigation. Assistant U.S. Attorney Howard C. Parker is prosecuting the case.
Justice Department Files Lawsuit to Stop Tennessee Man from Preparing Tax ReturnsRead the Press Release
The Department of Justice filed a civil lawsuit today in the federal court in Nashville, Tenn., to stop Gilberto Cortes and his business, Mundo Hispano Services, from preparing federal tax returns. According to the complaint, Cortes and his business have prepared more than 7,000 tax returns since 2010.
The complaint filed with the U.S. District Court in the Middle District of Tennessee alleges that Cortes understates his customers’ federal tax liabilities or generates larger than warranted refunds by improperly claiming the additional child tax credit on their income tax returns. According to the complaint, thousands of Cortes’ customers have improperly claimed the additional child tax credit. As a result, his customers have received, on average. over $2,300 in improper benefits per return. In total, the complaint alleges that Cortes’ activities over the last three years have potentially cost the U.S. Treasury $12.8 million or more in lost income tax revenue.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2013 . The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website . An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found at this website . If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Related Materials:
United States v. Gilberto Cortes, etc.
ComplaintJury Convicts Rochester Woman of Threatening to Kill the President and Lying to the United States Secret ServiceRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today Christine Wright-Darrisaw, 38, of Rochester, N.Y., was convicted of making a direct threat to kill the President of the United States, and for lying to United States Secret Service Agents investigating the case, following a jury trial before U. S. District Court Judge Frank P Geraci. Each charge carries a maximum sentence of five years in prison and a $250,000 fine.
Assistant U.S. Attorneys Craig R. Gestring and Grace M. Carducci, who handled the prosecution of the case, stated that the defendant threatened to kill President Barack Obama during a telephone call to the White House on February 24, 2012. The Government called the White House Operator who took the call as a witness in the one-day trial. The operator graphically described the “brutality” and the “violence” of the defendant’s words during her testimony. The Operator stated that she has answered thousands of calls while serving as an operator with the White House Comments Line, but that this call still stands out in her memory, almost two years later.
Secret Service Agents from Washington and Rochester were also called to testify by the Government about their investigation and how they were able to identify the defendant as a suspect. Agents in Rochester linked Wright-Darrisaw to the cellular telephone used to make the threat to kill the President, and conducted an interview with her. During that interview, the defendant made several false statements to the Secret Service which were material to and impacted their investigation.
The guilty verdict is the culmination of an investigation on the part of Special Agents of the United States Secret Service, under the direction of Special Agent in Charge, Tracy Gast.
Sentencing is scheduled for May 14, 2014 before Judge Geraci.Indiana Man Pleads Guilty to Possession of Counterfeit United States CurrencyRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on February 20, 2014, Dana L. Causey, 24, of Fort Wayne, Indiana, pled guilty to possession of counterfeit United States Currency with intent to defraud as alleged in an indictment returned by a Federal Grand jury sitting in East St. Louis, Illinois on April 18, 2013. The plea in the case came one year to the day from the date he was arrested by the Fairview Heights Police and United States Secret Service. The arrest occurred on February 20, 2013.
At his sentencing Causey will face up to 20 years in federal prison, a fine of up to $250,000 and up to 3 years of supervised release. Sentencing has been set for June 19, 2014, at 10:00 a.m. in United States District Court in East St. Louis, Illinois.
During his plea hearing, Causey admitted that he intended to pass the counterfeit currency in the Fairview Heights, Illinois area.
The investigation in this case was conducted by United States Secret Service and is being prosecuted by Assistant United States Attorney Ranley R. Killian.
Human Trafficking Awareness Day: JFW CommentsRead the Press Release
[Thank you, Gov Hickenlooper] I would like to thank the organizers of today’s events, including event Chair Tamra Farah, and the many representatives of law enforcement who are here today and committed to fighting human trafficking, ranging from Colorado Attorney General John Suthers, to key federal law enforcement officials, elected officials and and members of victim communities.
Human trafficking is a crime that hides in plain sight, all around us. Women, children and men from the United States and around the world, are kidnapped, coerced or tricked into working in conditions that are little different than slavery or indentured servitude. They are forced to work in the sex industry, but also in other jobs where they are forced to pay their captors much of their earnings – construction, or other jobs where they are left with barely enough to eat.
Due to the hard work of community groups and law enforcement, this terrible, insidious crime is being fought and victims rescued every day.
Just last week, the U.S. Attorney’s Office, working with Homeland Security and the State Department, obtained a stiff sentence in federal court against one trafficker – Kizzy Kalu. With false promises of university teaching jobs, Kalu enticed hundreds of foreign nurses to come to Colorado. Once they arrived here, however, they found the promised jobs did not exist. Instead, Kalu forced them to find and work at menial jobs and pay him tens of thousands of dollars -- or face deportation on his accusation.
I am proud to say that the hard work of the U.S. Attorney’s Office and federal law enforcement – and the bravery of the nurses who testified -- resulted last week in Kalu receiving a nearly 13 year federal prison sentence.
But victories like this are just one step. Today in Colorado, thousands of women, children and men remain the victims of human trafficking, forced labor and sexual exploitation. We in federal law enforcement pledge our continued determined efforts to rescue them and prosecute their tormentors.
Thank you very much.
Howard County Bloods Gang Member Exiled to over 17 Years in Prison for Racketeering Conspiracy, Robbery and Gun OffensesRead the Press Release
Nine Bloods Gang Members and Three Other Defendants Have Pleaded Guilty to Date to Federal Racketeering and Drug Conspiracies
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Michael Dominique Johnson, a/k/a "Ace", age 20, of Columbia, Maryland to 205 months in prison followed by five years of supervised release for conspiring to participate in a racketeering conspiracy, conspiring to commit robbery and using a gun during a crime of violence. The sentence resulted from the consolidation of two federal cases in which Johnson pleaded guilty.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Howard County Police Chief William McMahon; and Howard County State’s Attorney Dario Broccolino.
According to his plea agreements, since at least 2011, Johnson was a member of the Bloods, a national criminal street gang with members operating in and around Howard County, Maryland. Johnson was initially charged with the robbery of an individual on November 8, 2011. The ATF had arranged for the individual to buy guns from Johnson. After Johnson scheduled a meeting to sell the guns, Johnson instead had two associates rob the individual, rather than sell the guns. After the armed robbery, the two associates fled and met up with Johnson who was waiting nearby. The three men shared the proceeds of the armed robbery.
Johnson was subsequently arrested for the robbery in March 2012 and incarcerated at the Chesapeake Detention Facility (CDF). During his incarceration at CDF, ATF agents and Howard County Police detectives intercepted Johnson discussing gang business over the jail phones. He also enlisted gang members to smuggle drugs and cellphones into the facility. Johnson is intercepted admitting to the possession of contraband, drug trafficking, and illegal activities on jail calls from CDF to gang members. Several of these calls provided the investigative foundation for law enforcement to obtain court-ordered wiretaps on fellow gang members’ telephones, and ultimately led to the indictment of 17 defendants on racketeering charges, and three additional defendants on drug trafficking conspiracy charges.
Among his criminal activities as a gang member, Johnson admitted that he: committed at least three armed robberies of individuals in which drugs, cash and/or other items were stolen; assaulted others; and sold crack cocaine, oxycodone and other drugs. Johnson also prostituted females, including a minor. The minor stated that she during the time she worked for Johnson as a prostitute in the summer of 2011, she made approximately $5,000 to $6,000, half of which was paid to Johnson. Johnson regularly carried a gun in connection with these activities.
In addition to Johnson, eight other defendants have pleaded guilty to the racketeering conspiracy and face a maximum sentence of 20 years in prison:
Heather Carter, a/k/a "Hunnilynn," age 29, of Columbia, Maryland
James Bieryla, a/k/a "Brea," and "Braze," age 21, of Ellicott City, Maryland; Russell Canty, a/k/a "Rek," age 20, of Baltimore; Adrian Freeman, a/k/a "Sleep," age 23, of Laurel, Maryland; Kevin Jarrell, a/k/a "K-Dog," 25, of College Park, Maryland; Christopher Lloyd McGann, a/k/a “Toker,” age 22, of Columbia; David Jerome Robertson; age 23, of Columbia; and
Bamba Omar Saine, age 23, of Columbia.Each of these defendants, except Jarrell, also pleaded guilty to using or possessing firearms in furtherance of the racketeering conspiracy, and face a mandatory minimum sentence of five years’ incarceration up to life in prison.
Three other defendants have pleaded guilty to conspiring to sell drugs and also face a maximum sentence of 20 years in prison: Wendy Farhat, age 39, of Gaithersburg, Maryland; Anthony Louis Jones, age 27, of Columbia; and Troy Fowler, age 23, of Laurel.
Mr. Rosenstein commended the ATF, Howard County Police Department and Howard County State’s Attorney’s Office for their work in this investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Rachel M. Yasser and Sandra Wilkinson, who are prosecuting the case.
Houston Physician Arrested in Health Care Fraud ConspiracyRead the Press Release
HOUSTON – Dr. Enyibuaku Rita Uzoaga, 41, and Charles Harris, 53, have been indicted on charges of conspiracy to commit health care fraud and health care fraud, announced United States Attorney Kenneth Magidson.
The seven-count indictment was returned Feb. 12, 2014, and unsealed this morning as Uzoaga surrendered to federal authorities. She is expected to make an initial appearance before U.S. Magistrate Judge George C. Hanks Jr. at 10:00 a.m. today.
Harris, aka Celestine Nwajfor and Okechi Nwajiofor, is a fugitive and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact the FBI at 713-693-5000.
The indictment alleges that from approximately 2006 through 2010, Uzoaga, Harris and others falsely billed Medicare and Medicaid for numerous unnecessary vestibular diagnostic tests. Some patients were allegedly tested more than 1,000 times. According to the indictment, the testing was either not performed, not medically necessary and/or not performed by licensed individuals.
Harris had allegedly operated Cevine Health Care and Rehabilitation Center in the Houston area and performed the tests, according to the charges.
Vestibular diagnostic testing is used to diagnose a person for vertigo or dizziness. Upon diagnosis, patients usually undergo physical therapy, take medication or undergo surgery as treatment.
As a result of this allegedly unlawful scheme, Medicare and Medicaid were billed approximately $653,970 in submitted, fraudulent vestibular diagnostic claims, and paid approximately $389,285 on those claims. From 2006 to 2010, vestibular testing comprised approximately 25 percent of Uzoaga’s income from Medicare and Medicaid.
If convicted, both face up to 10 years in federal prison and a $250,000 maximum fine on the conspiracy charge as well as the substantive counts of health care fraud.The charges are the result of the investigative efforts of the Texas Attorney General’s Medicaid Fraud Control Unit, Department of Health and Human Services - Office of Inspector General, Office of Investigations, FBI and the United States Attorney’s Office. Special Assistant United States Attorney (SAUSA) Suzanne Bradley and AUSA Kebharu Smith are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Houston Man Gets 14 Years for Possessing MethamphetamineRead the Press Release
HOUSTON – Houston resident Francisco Rodriguez, 22, has been sentenced to a total of 168 months for possessing with the intent to distribute multiple kilograms of methamphetamine, announced United States Attorney Kenneth Magidson. Rodriguez pleaded guilty Feb. 13, 2013, to possessing a gross weight of more than five kilograms of 90% pure methamphetamine.
According to court records, Rodriguez negotiated a deal for the purchase of methamphetamine with undercover Homeland Security Investigations (HSI) agents. On Nov. 9, 2012, Rodriguez met with an undercover officer in a Houston area business parking lot to complete the transaction. Rodriguez pulled a backpack out of the toolbox of the truck that he had driven to the meeting, opened it and showed the agent several plastic containers. According to court records, he opened one of the containers and revealed a crystal-like substance, at which time he was arrested.
The substance tested positive for the presence of methamphetamine with 90% purity. The methamphetamine had a gross weight of 5.54 kilograms.
U.S. District Judge David Hittner, who handed down the sentence today, further ordered he serve five years of supervised release following completion of the prison term. He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by HSI, Customs and Border Protection Air Unit, Houston Police Department and the Harris County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Richard J. Magness as part of the Organized Crime Drug Enforcement Task Force.
Holyoke Man Pleads Guilty to Embezzlement from Veteran's Administration OrganizationRead the Press Release
BOSTON – A Holyoke man pleaded guilty today to embezzling $60,000 from the Boston Veteran’s Administration Research Institute (BVARI).
Riccardo D'Orsainville, 48, pleaded guilty to embezzlement and misuse of a passport. Sentencing is scheduled for May 8, 2014 before U.S. District Court Judge Rya W. Zobel. As part of the plea agreement, D'Orsainville has agreed to repay BVARI $57,479 in restitution.
In August 2011, D'Orsainville was hired by the BVARI as a temporary employee. BVARI is non-profit, tax-exempt institute whose purpose is to conduct the medical research and educational activities of the U.S. Veteran’s Affairs healthcare system. D'Orsainville's responsibilities included helping BVARI’s CEO with administrative duties, such as preparing for meetings, writing the minutes for each meeting, collecting the mail, and depositing certain checks payable to BVARI into BVARI's business bank accounts.
In July 2012, D'Orsainville forged the signatures of two BVARI employees to open an unauthorized corporate Citizens bank account in the name of BVARI. Between July 2012 and January 2013, D'Orsainville embezzled approximately $68,336 in checks made out to BVARI by depositing them into the Citizens bank account from which he ultimately withdrew approximately $60,000 for his personal use.
When D'Orsainville was arrested on July 17, 2013, he was in possession of a European Union passport belonging to a British national. D’Orsainville had altered the passport by replacing the passport photograph of the British national with his own. The investigation determined that on June 29, 2013, D'Orsainville used the altered passport to obtain employment at D. Hotel in Holyoke using the name of the British national.
United States Attorney Carmen M. Ortiz; Jeffrey Hughes, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston; David W. Hall, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; and Scott Antolik, Special Agent in Charge of the U.S. Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; made the announcement today. The case is being prosecuted by Maxim Grinberg of Ortiz’s Health Care Fraud Unit.
Hampton Man Sentenced to 61 Months for Stealing Government Money and Identity TheftRead the Press Release
NORFOLK, Va. – Steven Jay Perrino, 58, of Hampton, Va., was sentenced today to 61 months in prison, followed by 3 years of supervised release, for theft of government money and aggravated identity theft. He was ordered to pay $122,134.45 in restitution to the United States Department of Veterans Affairs.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Niall E. Meehan, Special Agent in Charge of the U.S. Department of State’s Bureau of Diplomatic Security’s Washington Field Office, made the announcement after sentencing by United States District Judge Arenda L. Wright Allen.
On September 4, 2013, after Diplomatic Security investigative analysts discovered possible fraudulent passport applications, DS special agents, in conjunction with the Department of Veterans Affairs’ Office of the Inspector General, U.S. Postal Inspector’s Office, and the Hampton and Virginia Beach Police Departments executed search and arrest warrants, which resulted in Perrino’s arrest. On November 20, 2013, Perrinopled guilty to one count of theft of government money and one count of aggravated identity theft. According to court documents, Perrino assumed the identities of at least 5 different individuals dating back to 1986. Perrino was able to assume these identities by obtaining personal information and associated documents and then using that information to apply for official forms of identification such as United States passports and driver’s licenses. Perrino also enlisted in the Navy and Army under stolen identities. Following a 10-year fraudulent enlistment in the Army, Perrino applied for and received VA benefits in that person’s name. He was able to obtain more than $138,000 in benefits via the Montgomery and Post 9/11 GI Bills and federal student loans and grants.
This case was investigated by the U.S. Department of State, Diplomatic Security Service’s Washington Field Office. Assistant United States Attorney Randy Stoker is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.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.Mexican citizen charged with illegal re-entry into U.S.
Jose De Jesus Sanchez, age 44, a citizen of Mexico, is charged with one count of illegally re-entering the United States after previously being deported subsequent to a conviction for a felony.
If convicted, Sanchez 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 Manda M. Sertich.Red Lake man charged with assault
Donald Scott Whitefeather, age 65, of Red Lake, was charged with one count of assault resulting in serious bodily injury and one count of assault with a dangerous weapon.
If convicted, the defendant faces a potential maximum penalty of ten years in prison on each count. This case is the result of an investigation by the Red Lake Tribal Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Katharine T. Buzicky.Georgia Real Estate Investor Pleads Guilty to Bid Rigging and Fraud at Public Real Estate Foreclosure AuctionsRead the Press Release
A Georgia real estate investor pleaded guilty today for her role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Georgia, the Department of Justice announced.
Felony charges were filed on Dec. 19, 2013, in the U.S. District Court for the Northern District of Georgia in Atlanta, against Amy James. According to court documents, from as early as Dec. 6, 2005, until at least Jan. 23, 2009, James conspired with others not to bid against one another, but instead to designate a winning bidder to obtain selected properties at public real estate foreclosure auctions in DeKalb County, Ga. James was also charged with a conspiracy to commit mail fraud by fraudulently acquiring title to selected DeKalb County properties sold at public auctions and making and receiving payoffs and diverting money to co-conspirators that would have gone to mortgage holders and others by holding second, private auctions open only to members of the conspiracy. The department said that the selected properties were then awarded to the conspirators who submitted the highest bids in the second, private auctions.
“Today’s guilty plea is the third in the Antitrust Division’s ongoing investigation into anticompetitive behavior at real estate foreclosure auctions in the state of Georgia,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The Antitrust Division remains committed to holding accountable individuals who conspire to defraud distressed homeowners and lendersin Georgia and elsewhere.”
The department said that the primary purpose of the conspiracies was to suppress and restrain competition and to conceal payoffs in order to obtain real estate offered at DeKalb County public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner. According to court documents, the conspirators paid and received money that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties, and, in some cases, the defaulting homeowner.
“Today's guilty plea reflects the FBI's commitment toward enforcement of federal antitrust laws that are designed to provide a level playing field among businesses and individuals as they engage in competition for commerce,” said Ricky Maxwell, Acting Special Agent in Charge of the FBI’s Atlanta Field Office. “The FBI will continue to work with its various law enforcement partners regarding these enforcement matters and asks that the public contact their nearest FBI field office regarding such unfair and illegal business practices.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for a Sherman Act charge may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine. A count of conspiracy to commit mail fraud carries a maximum penalty of 20 years in prison and a fine of $250,000 for individuals. The fine may be increased to twice the gross gain the conspirators derived from the crime or twice the gross loss caused to the victims of the crime.
The investigation is being conducted by Antitrust Division attorneys in Atlanta and the FBI’s Atlanta Division, with the assistance of the Atlanta Field Office of the Housing and Urban Development Office of Inspector General and the U.S. Attorney’s Office for the Northern District of Georgia. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions in Georgia should contact Antitrust Division prosecutors in Atlanta at 404-331-7113, call the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.htm.
Today’s charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
Former Reserve Airman Pleads Guilty to Theft of Government Property and Burglarizing A Del Rio PharmacyRead the Press Release
In Del Rio today, 20-year-old Simon Robert Barron, a former reserve U.S. Airman temporarily assigned to Laughlin Air Force Base, pleaded guilty federal charges of stealing Government property and burglary of a pharmacy announced United States Attorney Robert Pitman.
According to court records, on May 20, 2013, Barron attempted to purchase cough syrup at the LifeChek Pharmacy located on North Bedell Avenue, but was turned away for not having a prescription. That evening, Barron returned to the pharmacy where he used a rock to smash a window, entered the pharmacy, and then stole an assortment of narcotics with a retail value of more than $63,000. Two days later, while at Laughlin AFB, Barron was ordered to undergo a medical evaluation after he appeared intoxicated. A urinalysis revealed the presence of marijuana, Xanax, cocaine, codeine, and several opiates in his system. During a subsequent search authorization, issued by a military magistrate and executed at the Barron’s barracks room, Air Force OSI investigators discovered over 6,300 pills and liquid narcotics stolen from the LifeChek pharmacy along with stolen Government property including seven GPS units, two digital cameras, a power drill, an LED flashlight and a Motorola Radio Base Station. Authorities also recovered an Air Force air compressor from Barron’s vehicle and a Government chainsaw Barron pawned at a local pawn shop on the day of the pharmacy burglary. The value of the stolen Government property is estimated to be more than $5,500.
Barron faces up to twenty years in federal prison on the pharmacy burglary charge and up to ten years in federal prison on the theft of Government property charge. He remains on bond pending sentencing which has yet to be scheduled.
This investigation was conducted by agents with the Air Force Office of Special Investigations together with the Del Rio Police Department. Assistant United States Attorney Patrick Burke is prosecuting this case on behalf of the Government.Former Maryland Corrections Officer Convicted for Beating Inmate and Ensuing Cover-UpRead the Press Release
The Justice Department announced that James Kalbflesh, a former correctional officer at the Roxbury Correctional Institution (RCI) in Hagerstown, Md., was convicted today by a federal jury on three civil rights and conspiracy counts related to his participation in the beating of an RCI inmate in 2008 and the cover-up that followed. A second defendant, Lt. Jason Weicht, was acquitted on one charge of conspiring to help cover up the assault.
Kalbflesh was one of numerous RCI officers who participated in a series of retaliatory beatings against an inmate as their form of punishment for the inmate’s prior misconduct. Kalbflesh was convicted of conspiring with other officers to violate the civil rights of the inmate; with violating the inmate’s rights; and with conspiring to obstruct justice after the assault.
In related cases, 12 former RCI officers have pleaded guilty to various charges, and one has been convicted by a jury, in connection with a series of three separate beatings of the same inmate that occurred over the course of three consecutive shifts at the prison, and the cover-up that followed. Two other former RCI officers involved in the assaults pleaded guilty in state court.
“Sixteen former corrections officials from RCI now stand convicted for their various roles in three brutal assaults against an inmate and in coordinated cover-ups that followed each assault,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “These officers betrayed the public trust by using their official positions to commit violent civil rights abuses and then to try to hide what they had done. The Department of Justice will continue to prosecute vigorously law enforcement officers who use their power to violate federal law.”
These cases were investigated by the Frederick Resident Agency of the FBI, and were prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorney Sanjay Patel for the Civil Rights Division.
Former Fresno Resident Extradited from South Korea Pleads Guilty to Money Laundering Illegal Proceeds Generated by Investment Fraud SchemeRead the Press Release
FRESNO, Calif. — Kwan Yong Choi, 73, pleaded guilty on Monday, February 10, 2014 to six counts of money laundering of illegal proceeds generated by his investment fraud scheme, United States Attorney Benjamin B. Wagner announced.
According to court documents, in 2002, Choi, formerly of Daejeon City, South Korea, began marketing an investment scheme whereby investors could invest money into his company, Sun Min Trading Inc. Choi told investors that the company bought souvenirs and sold them to the White House. He claimed that the venture would make 30 percent profit with 10 percent going to a purported charity named “International Christian Mission Center,” and 20 percent going to investors every quarter. He specifically targeted persons of Korean descent and marketed investment opportunities to potential clients in California and elsewhere by making various false representations, including that the “International Christian Mission Center” was an extension of the CIA, that he was an ordained minister, that he had a history of investment successes, and that the investments were secure.
“This week’s guilty plea is particularly gratifying for the HSI special agents in Seoul and Fresno who worked tirelessly for seven years to see this defendant returned to the U.S. to answer for his crimes,” said Clark Settles, special agent in charge for HSI San Francisco, which oversees the agency’s investigative activities in Fresno. “This development should also provide some solace to Mr. Choi’s victims, knowing that the man who defrauded them, in some cases of their life savings, is being held accountable for his actions.”
As alleged in the indictment, instead of investing the money as promised, Choi spent the funds on his own personal and business expenses, including payments for homes, cars, and credit card bills. He lulled investors into thinking that their investments were making a return by sending false account statements, sending payments, or giving excuses as to why payments were delayed. As admitted by Choi at the time of his plea, investors lost approximately $2 million as a result of the scheme.
This case is the product of extensive investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Mark Cullers and Assistant United States Attorney Heather Mardel Jones are prosecuting the case.
Choi is scheduled to be sentenced on April 21, 2014 by United States District Judge Anthony W. Ishii. Choi faces a maximum penalty of 20 years in prison, a $500,000 fine or twice the value of the property involved in the transaction, whichever is greater, restitution to the victims, and forfeiture of assets. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Director of VA Medical Center Pleaded Guilty to Taking Money from Firm Bidding on JobsRead the Press Release
The former director of the Cleveland and Dayton VA Medical Center pleaded guilty today to a scheme to enrich himself by working as a consultant for, and taking money and other things of value from a design firm bidding on VA jobs and sharing confidential information about construction projects while still employed by the VA, law enforcement officials said.
William D. Montague, 61, of Brecksville, pleaded guilty to 64 counts, including Hobbs Act conspiracy, conspiracy to commit honest services mail fraud, violating the Hobbs Act, money laundering, multiple counts of wire fraud, mail fraud, disclosing public contract information and other charges.”
Montague is scheduled to be sentenced on May 20. He agreed to pay more than $390,000 to satisfy restitution and forfeiture requirements
“As a Veterans Affairs Medical Center Director, William Montague misled staff and misused his position to enrich himself and businesses pursuing contracts with the agency,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office. “We are pleased with the acceptance of responsibility by Mr. Montague, along with the significant forfeiture amount to be returned to the Department of Veteran's Affairs.”
“Today's guilty plea is the result of a two-year investigation conducted by Special Agents of the Cleveland Veterans Affairs Office of Inspector General and the Federal Bureau of Investigation," said Gavin McClaren, U.S. VA OIG, Resident Agent in Charge, Cleveland. “We will continue to protect taxpayers against those who would enrich themselves at the expense of our nation’s veterans.”
Montague served as director of the Cleveland VA Medical Center from 1995 until Feb. 3, 2010. On March 11, 2011, Montague began working as director of the Dayton VA Medical Center, a position he held through Dec. 17, 2011, according to the indictment.The superseding indictment details interactions between Montague and a company identified as Business 75, an integrated design firm with offices throughout the United States, including New York, Illinois, Virginia, Missouri and California. The company performed work for the VA directly and through its participation in joint ventures and other teaming agreements, according to the indictment.
From January 2010, Montague, Business 75 and employees of the company conspired to defraud the VA of its right to the honest and faithful service of Montague through bribery and kickbacks, and to defraud the VA and other potential VA contractors by means of false and fraudulent pretenses, according to the indictment.
Montague secretly used his position as Dayton VA Medical Center director to enrich himself and his designees (including House of Montague, a financial services company Montague operated) by soliciting and accepting gifts, payments and other things of value from Business 75 in exchange for favorable official actions, according to the indictment.
Montague solicited money and a consulting contract from Business 75 in exchange for information related to VA contracts and projects, which would benefit Business 75, Business 75’s principal and their designees, according to the indictment.
This was done to give Business 75 an advantage in obtaining VA contracts and projects. Montague gave false and misleading information to VA employees about his reasons for requesting VA documents and information, according to the indictment.
For example, on March 1, 2011, Business 75 issued a $20,000 check payable to Montague, which he deposited into the House of Montague’s account. Ten days later, Business 75’s principal sent an email to some employees with Montague’s consulting agreement explaining: “His job is to help us bring in more work from the VA, in part by helping us access key decision makers,” according to the indictment.
On March 14, 2011, Business 75’s principal sent another email to some employees stating that Business 75 will end the currect “$15 [million VA] IDIQ contract with just slightly over $12M in sales. $3M in fee, therefore, will be left on the table…[O]ne of MONTAGUE’s jobs will be to fill up the bucket by directing task orders toward our contract, Going forward, we have two $15M buckets to fill (Central and Eastern regions). That’s a lot of shoveling to get to $30M…BILL has the relationships to help us maximize the contracts…On the VA ‘major construction’ front here is the list of medical centers and their approximate construction cost in the pipeline: West Los Angeles, CA: $750M; San Francisco, CA: $125M, Reno, NV: $115M, Alameda, CA: $225M. Montague told us about these before they were advertised, which has allowed us to get an early start in developing the team. If we bring him on board, he can help us pull in one or two of these large projects,” according to the indictment.
On May 26, 2011, Montague travelled to Washington DC on official VA business. On June 17, 2011, he caused to be submitted a government expense report seeking reimbursement for $1,204 for hotels, parking, per diems and other expenses. On June 12, 2011, Montague caused to be sent a $2,741 invoice to Business 75 for “consulting services” for work performed at “Wash/Cleve/Dayton.” The invoice included $211 for hotel and $30.60 for hotel taxes incurred on May 26, 2011, according to the indictment.
The case was prosecuted by Assistant United States Attorneys Antoinette T. Bacon and Justin J. Roberts following an investigation by the FBI and United States Department of Veterans Affairs – Office of Inspector General.
Former Denso Corp. Executive Agrees to Plead Guilty <br /> to Obstructing Automotive Parts InvestigationRead the Press Release
A former executive of Japan-based Denso Corp. has agreed to plead guilty to obstruction of justice charges in connection with the Antitrust Division’s investigation into a conspiracy to fix the prices of heater control panels installed in cars sold in the United States and elsewhere, the Department of Justice announced today. The executive has also agreed to serve one year and one day in a U.S. prison.A one-count felony charge was filed today in U.S. District Court for the Eastern District of Michigan in Detroit against Kazuaki Fujitani, a former director of Denso Corp. in Japan. According to the charge, Fujitani, who was general manager of the Toyota Sales Division at the time of the offense, deleted numerous e-mails and electronic documents in February and March 2010 upon learning that the FBI had executed a search warrant on Denso’s U.S. subsidiary. The deleted documents contained communications between Denso and one or more of its competitors regarding requests for price quotation made by Toyota for heater control panels for the Toyota Avalon. The plea agreement is subject to court approval.
“Today’s charge demonstrates the Antitrust Division’s commitment to protecting the integrity of grand jury investigations,” said Brent Snyder, Deputy Assistant Attorney General of the Antitrust Division’s criminal enforcement program. “The division will vigorously prosecute individuals who destroy evidence in an attempt to conceal their participation in illegal conspiracies.”
In March 2012, Denso pleaded guilty and was sentenced to pay a $78 million criminal fine for its role in conspiracies to fix the prices of heater control panels and electronic control units.
Including Fujitani, 29 individuals have been charged in the department’s ongoing investigation into price fixing and bid rigging in the auto parts industry. Additionally, 26 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of over $2.25 billion in fines.
Fujitani is charged with obstruction of justice, which carries a maximum penalty of 20 years in prison and a criminal fine of $250,000 for individuals.
Today’s charge arose from an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charge was brought by the National Criminal Enforcement Section and the San Francisco Office of the Antitrust Division, with the assistance of the Detroit Field Office of the FBI. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html, or call the Detroit Field Office of the FBI at 313-965-2323.Former CEO of Technology Start-Up Charged in Investment SchemeRead the Press Release
SAN FRANCISCO – Jonathan Edward (“Jon”) Mills, the former Chief Executive Officer of a San Francisco-based technology company, has been charged with wire fraud, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
An affidavit filed by FBI Special Agent Brian Weber alleges that Mills, 30, of San Francisco, falsely represented that Motionloft, Inc., a company he founded and served as its CEO, was going to be acquired by Cisco, Inc., and that Cisco already had paid a good faith deposit of millions of dollars toward that acquisition. According to court documents, one victim invested $210,000 relying on Mills’ claims that this victim would obtain shares in Motionloft in return and huge profits when the acquisition closed. Mills allegedly made these false representations just days before Motionloft’s stockholders terminated him as CEO on or about December 1, 2013. According to court documents, representatives of Cisco and Motionloft’s largest investor have both stated there was no possible acquisition of Motionloft by Cisco. Furthermore, court documents reflect that Motionloft’s largest investor has been contacted by several victims of Mills, and that Mills has claimed he is trying to pay back those victims.
Mills was arrested yesterday in San Francisco, and he made his initial appearance in federal court in San Francisco this morning. Mills is in custody, at least until his next scheduled court appearance, tomorrow, February 21, 2014, at 9:30 a.m. before the Honorable Maria-Elena James, United States Magistrate Court Judge in San Francisco.
The maximum statutory penalty for wire fraud, in violation of Title 18, United States Code, Section 1343, is 20 years in prison, a fine of $250,000, plus restitution. Any sentence following conviction, however, would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Authorities believe there are several additional victims of Mills’ alleged fraud. Anyone with information about Mills should contact the FBI in San Francisco at 415-553-7400.
Doug Sprague is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Rayneisha Booth. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Please note that a criminal complaint contains only allegations against an individual and, as with all defendants, Jonathan Edward (“Jon”) Mills must be presumed innocent unless and until proven guilty.
(Mills criminal complaint )
Former CEO of Luggage Manufacturer Charged in Manhattan Federal Court for Multimillion-Dollar Bank Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that MARVIN JEMAL, the former Chief Executive Officer of a Manhattan-based company that designed, imported and distributed luggage, business bags, backpacks, and accessories (the “Company”), was arrested today for a fraudulent scheme to obtain millions of dollars in loans by making false statements and providing false and fraudulent documents to a commercial bank based in New York (the “Bank”). JEMAL was arrested this afternoon at John F. Kennedy International Airport in New York, and is expected to be presented later today in Manhattan federal court before United States Magistrate Judge Gabriel W. Gorenstein.
MARK BERNSTEIN, the former Chief Financial Officer of the Company, was previously arrested in August 2013 and pled guilty in October 2013 before U.S. District Judge Robert P. Patterson for his role in the scheme.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, former CEO Marvin Jemal and another executive at his luggage company set out to fleece a bank into lending their company millions of dollars by submitting documents loaded with lies and backing them up with false statements. Those millions were then allegedly funneled to Jemal’s personal accounts and used for mortgage payments and payments on a Porsche, among other things.”
FBI Assistant Director-in-Charge George Venizelos said: “As alleged in the indictment, the defendant thought he could ‘beat the bank’ with lies and misrepresentations to support a lavish lifestyle. He obtained millions of dollars in loans by submitting falsified and fraudulent documents to his commercial lender, then diverted that money to his personal accounts. Bank fraud is a serious crime that weakens the economic integrity of our financial institutions. The defendant’s arrest today should send a clear message to the public that bank fraud cases such as this one are, and will continue to be, a high priority for the FBI. Individuals who try to line their pockets by engaging in financial fraud schemes should be reminded that their criminal activity will not go undetected and they will be held accountable.”
According to the allegations contained in the Indictment unsealed today and other documents previously filed in Manhattan federal court:
From 2007 through October 2009, JEMAL and BERNSTEIN engaged in a scheme to fraudulently induce the Bank to lend millions of dollars to the Company. Among other things, JEMAL and BERNSTEIN knowingly made false representations to the Bank, concealed material facts from the Bank, and submitted false and fraudulent documents to the Bank, including fabricated invoices and shipping documents. In total, the Company obtained approximately $6.9 million in loans from the Bank and defaulted on approximately $6 million of those loans.
Further, although the loans were purportedly for the benefit of the Company’s business, in fact, JEMAL diverted approximately $3.5 million of the loan proceeds to personal bank accounts and used the money to pay for various personal expenses, including mortgage payments on properties he owned, credit card bills, and payments on his Porsche.
The Factoring Agreement
The Company obtained the loans from the Bank as part of a secured credit facility, pursuant to a factoring agreement between the Company and the Bank. Under the terms of the factoring agreement, the Company would assign and sell the Company’s interest in its accounts receivable to the Bank and, in exchange, the Company could borrow from the Bank up to 85% of the value of those receivables. In addition, the Company could borrow up to 50% of the value of its inventory. In order to draw down on its secured credit facility, however, the Company was required to provide the Bank with, among other things, an accurate listing of all accounts receivable, as well as supporting documentation, including copies of (i) relevant underlying invoices and (ii) shipping documents or other proof of delivery.
The Scheme to Fraudulently Obtain Loans
To fraudulently obtain loans from the Bank under the factoring agreement, JEMAL and BERNSTEIN made false statements and submitted false and fraudulent documents to the Bank, including the following:
- JEMAL and BERNSTEIN sent duplicate and/or fabricated invoices to the Bank that purported to reflect the sale of certain products by the Company and, thus, an outstanding receivable for the Company. In truth, however, the sales reflected on those invoices were false, as those sales either had never occurred or had already been invoiced separately.
- JEMAL and BERNSTEIN provided fraudulent shipping documents to the Bank to substantiate the purported sales of products by reflecting that those products had been shipped to customers. In truth, however, those shipping documents were false and fraudulent, as the products had not, in fact, been shipped to the customers as reflected in the shipping documents.
- JEMAL and BERNSTEIN concealed material facts from the Bank, including credits that the Company had provided to certain of its customers (which thereby reduced the total accounts receivable associated with those customers) and instances in which the Company had directly collected and deposited payments from its customers on the same invoices the Company assigned to the Bank.
- JEMAL and BERNSTEIN provided inaccurate monthly inventory spreadsheets to the Bank which overstated the Company’s existing inventory.
Further, in order to conceal the scheme, JEMAL made various oral misrepresentations to certain representatives of the Bank when those representatives confronted him about irregularities and other issues that the Bank had discovered with respect to the Company’s assignment of its accounts receivable.
The Money Laundering Scheme
Between approximately May 2007 and February 2012, after fraudulently inducing the Bank to loan millions of dollars to the Company, JEMAL and BERNSTEIN arranged to divert more than $3.5 million in loan proceeds to personal bank accounts controlled by JEMAL. To conceal that the money was being diverted to JEMAL’s personal accounts, the defendants first moved the funds through bank accounts in the name of two shell corporations that JEMAL controlled. From those accounts, the money was transferred to JEMAL’s personal accounts and used to pay for personal expenses, including, among other things, mortgage payments on properties owned by JEMAL, bills from credit cards in the name of JEMAL and his wife, and payments on a Porsche driven by JEMAL.
JEMAL, 60, of Brooklyn, New York, is charged with one count of conspiracy to commit bank fraud, one count of bank fraud, and one count of making a false statement to influence bank action, each of which carries a maximum sentence of 30 years in prison, and one count of money laundering, which carries a maximum sentence of 20 years in prison. U.S. District Judge Valerie E. Caproni is assigned to the case.
BERNSTEIN, 63, of Belle Harbor, New York, pled guilty to one count of conspiracy to commit bank fraud, one count of bank fraud, and one count of making a false statement to influence bank action, each of which carries a maximum sentence of 30 years in prison. He also pled guilty to one count of wire fraud and one count of money laundering, each of which carries a maximum sentence of 20 years in prison. BERNSTEIN awaits sentencing.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the FBI.
The case is being prosecuted by the Office’s Complex Frauds Unit. Assistant U.S. Attorney Christopher D. Frey is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and JEMAL is presumed innocent unless and until proven guilty.
U.S. Marvin Jemal Indictment
Former Bayonne Official Admits Accepting $65,000 in Bribes for Awarding HUD Grant FundsRead the Press Release
TRENTON, N.J. - A Hudson County, N.J. man, who served as the senior accountant of the City of Bayonne Department of Community Development (CBDCD) today admitted accepting $65,000 in bribe payments in exchange for his assistance in awarding projects funded by U.S. Department of Housing and Urban Development grants, U.S. Attorney Paul J. Fishman announced.
Anselmo Crisonino, 53, of Bayonne, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to a four-count information charging him with one count of accepting bribe payments totaling approximately $65,000 from Joseph Arrigo, the owner of a contracting company in Bayonne. Crisonino also pleaded guilty to one count of theft and conversion of federal funds ($422,360), one count of conducting an illegal gambling business, and one count of submitting a false tax return for tax year 2011.According to documents filed in this case and statements made in court:
The CBDCD was an agency that received funds from the U.S. Department of Housing and Urban Development (HUD) under a federal program that provided grants up to $20,000 to low income families to rehabilitate their homes and to repair conditions affecting health and safety, accessibility, energy efficiency or code compliance. The CBDCD also provided these HUD funds under the same federal program to nonprofit organizations. Crisonino was responsible for reviewing applications and awarding such funds to qualified applicants.
In September 2010, Crisonino solicited cash bribe payments from Arrigo in exchange for Crisonino’s assistance in awarding HUD grant funds from the CBDCD to Arrigo as the owner of Shadow Contracting LLC. From September 2010 to February 2013, Crisonino received cash payments from Arrigo totaling approximately $65,000 in exchange for Crisonino’s assistance in awarding HUD grant funds from the CBDCD to Arrigo that totaled approximately $426,000.
Between September 2010 and February 2013, Crisonino awarded HUD grant funds to several contractors and plumbers in Bayonne through the CBDCD, despite the fact that Crisonino knew that the submitted bids for the projects were fraudulent and were the result of collusion by the contractors and plumbers. Crisonino also approved change orders on projects where little to no legitimate work had been done by the contractors and plumbers at the job sites. The approved change orders allowed the CBDCD to disperse additional HUD grant funds to the projects that had already reached the maximum $20,000 grant allotment.
Crisonino also pleaded guilty to conducting an illegal gambling business in northern New Jersey. The illegal gambling business was administered and managed through a website that Crisonino and others accessed through usernames and passwords.
He admitted making and subscribing a U.S. Individual Tax Return, Form 1040, for tax year 2011 filed with the IRS, which he did not believe to be true and correct as to every material matter, including approximately $65,000 in unreported income through the bribe payments.
The bribery and theft of government funds charges to which Crisonino pleaded guilty are each punishable by a maximum potential penalty of 10 years in prison. The charge of conducting an illegal gambling business is punishable by a maximum potential penalty of five years in prison. The charge of filing a false tax return is punishable by a maximum potential penalty of three years in prison. All of four charges are also punishable by a $250,000 fine. Sentencing is currently scheduled for June 4, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark: special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen in Newark, with the continuing investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jacques S. Pierre of the Special Prosecutions Division and Assistant U.S. Attorney Steven G. Sanders of the Appeals Division.
14-056
Defense counsel: Daniel J. Welsh Esq., Jersey City, N.J.
Crisonino, Anselmo Information
Former Alabama Bank Employee Sentenced to Prison for Role in Tax Refund FraudRead the Press Release
Montgomery, Alabama - LaQuanta Clayton, a resident of Montgomery, Ala., and a former bank teller employed by the Community Bank and Trust, was sentenced on February 19, 2014 to serve 21 months in prison to be followed by three years of supervised release for participating in a fraudulent tax refund scheme, announced U.S. Attorney George L. Beck Jr. for the Middle District of Alabama. Clayton previously pleaded guilty to theft of government property in July 2013.
According to court documents and statements made in open court, Clayton used her position as a bank teller to open bank accounts in the name of another individual without his knowledge and bank accounts in the name of fictitious individuals for the purpose of receiving fraudulent tax refunds. It is further alleged that Tarrish Tellis, also from Montgomery, directed Clayton to open multiple bank accounts in order to receive electronic deposits of fraudulent tax refunds. Clayton would facilitate the withdrawal of this money and would give the money deposited into these accounts to Tellis and other individuals involved in the scheme. A final disposition concerning Mr. Tellis’ involvement in this case is still pending.
Clayton opened a total of at least five bank accounts at Community Bank and Trust, which she used to receive fraudulent tax refunds. Approximately $452,225 in fraudulent tax refunds were directed to be deposited into these accounts and the Internal Revenue Service (IRS) paid approximately $185,730 in fraudulent refunds, which were deposited into accounts Clayton opened and controlled. At her sentencing, Clayton was also ordered to pay restitution in this amount.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Trial Attorneys Michael Boteler and Charles Edgar, Jr. of the Justice Department’s Tax Division, and Assistant U.S. Attorney Todd Brown are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Five NDCA Assistant United States Attorneys Among Fifty Seven Recipients of the California Lawyer Attorneys of the Year AwardRead the Press Release
SAN FRANCISCO – San Francisco Office, Assistant United States Attorneys Hartley M.K. West, Philip J. Kearney, John H. Hemann, Susan E. Badger, and Stacey P. Geis, have been chosen among 57 attorneys around the state to receive the 18th Annual California Lawyer Attorneys of the Year Award. The honored attorneys include prosecutors, public-interest lawyers, and attorneys from regional and international law firms. The recipients of the CLAY Awards will be featured in the March 2014 issue of California Lawyer.
“Federal prosecutors work hard every day to keep the public safe. We are proud of the accomplishments of these Assistant United States Attorneys and congratulate them and all the other honorees for this well-deserved award,” said United States Attorney, Melinda Haag.
Regarding the CNET/Butler cases for which AUSAs West, Kearney, Hemann and Badger were honored, Ms. Haag said: “Color of law civil rights cases are difficult to investigate and prove, but AUSAs take their responsibility for enforcing our civil rights laws seriously. These four AUSAs all worked extraordinarily hard to see that justice was done, and to send the message that we cannot tolerate corrupt law enforcement officers who bring dishonor to the badge and cavalierly violate the rights of people they are sworn to defend and protect.”
Regarding the Wal-Mart case for which Ms. Geis was honored (along with Central District of California AUSA Joseph O. Johns), Ms. Haag added: “The Wal-Mart case resolution provided the seed money for the creation of the San Francisco Bay Estuary Conservation Fund that will fund Bay Area environmental projects going forward. Wal-Mart’s guilty plea shows Ms. Geis’ dedication to bringing one of the largest retailers in the United States to justice for failing to comply with regulations designed to ensure the proper handling, storage, and disposal of hazardous materials and waste.”
The Assistant United States Attorneys and their achievements are briefly described below.
Hartley M.K. West, Philip J. Kearney, John H. Hemann, and Susan E. Badger, U.S. Attorney’s Office, San Francisco
Category: Criminal LawThis team of federal prosecutors brought dozens of civil rights and corruption charges against the Central Contra Costa Narcotics Enforcement Team and four police officers which resulted in several convictions.
This team of federal prosecutors brought dozens of civil rights and corruption charges against the Central Contra Costa Narcotics Enforcement Team and four police officers which resulted in several convictions. This included the prosecutions of former CNET Commander Norman Wielsch and private investigator Christopher Butler for civil rights and narcotics conspiracies, narcotics distribution, extortion, and robbery; former Richmond Police Officers Danny Harris, Jr. and Raymond Thomas, Jr. on firearms and obstruction of justice charges in connection with running a private security business on the side; former San Ramon Police Officer Louis Lombardi for stealing money and property during searches that he performed as a law enforcement officer; and former Contra Costa County Deputy Sheriff Stephen Tanabe for honest services fraud and extortion for arranging “stings” against men involved in child custody disputes in exchange for cocaine and a firearm provided by private investigator Butler. As a result of these prosecutions, these corrupt law enforcement officers sustained felony convictions, lost their jobs, and are serving sentences imposed by the Court.
Stacey P. Geis, U.S. Attorney’s Office, San Francisco
Joseph O. Johns, U.S. Attorney’s Office, Los Angeles
Category: Environmental LawJohns and Geis successfully prosecuted Walmart Stores Inc. for illegally handling and disposing of hazardous waste throughout the country, resulting in the company pleading guilty to violating the Clean Water Act and paying more than more than $81 million, with $20 million used to fund various community service projects, including opening a $6 million Retail Compliance Assistance Center that will help retail stores across the nation learn how to properly handle hazardous waste and $4.5 million to go to the newly-created San Francisco Bay Estuary Conservation Fund that will fund Bay Area environmental projects. According to documents filed in U.S. District Court in San Francisco, from a date unknown until January 2006, Wal-Mart did not have a program in place and failed to train its employees on proper hazardous waste management and disposal practices at the store level. As a result, hazardous wastes were either discarded improperly at the store level – including being put into municipal trash bins or, if a liquid, poured into the local sewer system – or they were improperly transported without proper safety documentation to one of six product return centers located throughout the United States.
Final Defendants Sentenced in Colombia/Texas Drug Trafficking ConspiracyRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – Four members of a Colombian drug trafficking organization have been sentenced to prison for federal violations after being convicted in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jaime Gonzalo Castiblanco Cabalcante, 58, of Bogota, Colombia, was found guilty by a jury on Oct. 19, 2012 of conspiracy to import cocaine into the United States for distribution and manufacturing cocaine for distribution into the United States and was sentenced to 360 months in federal prison for each charge to be served concurrently. The defendant was sentenced on Feb. 18, 2014 by U.S. District Judge Marcia A. Crone.
Julio Hernando Moya Buitrago, 49, of Bogota, Colombia, was found guilty by a jury on Oct. 19, 2012 of conspiracy to import cocaine into the United States for distribution and manufacturing cocaine for distribution into the United States and was sentenced to 292 months in federal prison for each charge to be served concurrently. The defendant was sentenced on Feb. 18, 2014 by U.S. District Judge Marcia A. Crone.
Oscar Orlando Barrera Pineda, 37, of Bogota, Colombia, was found guilty by a jury on Oct. 19, 2012 of manufacturing cocaine for distribution into the United States and was sentenced to 292 months in federal prison on Feb. 18, 2014 by U.S. District Judge Marcia A. Crone.
Roberth William Villega Rojas, 40, of Florencia, Caqueta, Colombia, was found guilty by a jury on Oct. 19, 2012 of conspiracy to import cocaine into the United States for distribution and manufacturing cocaine for distribution into the United States and was sentenced to 235 months in federal prison for each charge to be served concurrently. The defendant was sentenced on Sep. 9, 2013 by U.S. District Judge Marcia A. Crone.
The defendants were indicted by a federal grand jury on Oct. 15, 2009, along with 21 others charged with drug trafficking crimes, including conspiracy to import cocaine into the United States and manufacturing and distribution of cocaine to be imported into the United States. According to the indictment, the defendants are members of a drug trafficking organization responsible for sending cocaine from Colombia to the United States using Central America and Mexico as a transshipment point.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
This case was investigated by the Direccion de Investigacion Criminal e Interpol (DIJIN) of the Colombian National Police (CNP), Fiscalia General de la Nacion (Office of the Attorney General of Colombia), Cuerpo Tecnico de Investigacion (CTI), Fuerza Aerea Colombiana (Colombian Air Force), U.S. Drug Enforcement Administration (DEA) Panama Country Office, DEA Houston Field Division, DEA Bogota, Colombia, DEA Dallas Field Division, Federal Aviation Administration (FAA), the Honduran National Police and the U.S. Coast Guard. This case was prosecuted by Assistant U.S. Attorneys Heather Rattan, Jay Combs, and Camelia Lopez.
####Federal Law Enforcement Targets Child PredatorsRead the Press Release
SACRAMENTO, Calif. — United States Attorney Benjamin B. Wagner announced the following prosecutions for violations of federal child exploitation laws.
A grand jury in Fresno returned a one-count indictment today against Tyler Certuche, 20, of Bakersfield, charging him with receiving and sharing child pornography in August and September 2013. According to a previously filed criminal complaint, an FBI agent in Oklahoma City obtained several child pornography video files through a file-sharing program from a computer subsequently traced to Certuche. When a search warrant was executed at Certuche’s residence in Bakersfield on February 12, 2014, Certuche admitted that he had used the file sharing program to obtain and view child pornography videos in 2013. Certuche is out of custody and scheduled for arraignment on February 26, 2014.
This case is the product of an investigation by the FBI. Assistant U.S. Attorney David L. Gappa is prosecuting the case. (1:14-cr-032-AWI-BAM)
Yuba City Defendant Sentenced to More Than 8 Years in Prison
Derrick Jason Pair, 29, of Yuba City, was sentenced on February 11, 2014, by United States District Judge John A. Mendez to eight years and one month in prison, to be followed by a lifetime period of supervised release. According to court documents, Pair came to the attention of law enforcement during the investigation of another defendant. A search warrant executed at Pair’s residence located approximately 2,000 images of child pornography and 50 videos on his computer. Some of the images and videos showed prepubescent children and toddlers and sadistic and masochistic conduct. (2:12-cr-422 JAM)
Oroville Defendant Sentenced to 10 Years in Prison
Michael Adam Cruz, 23, of Oroville, was sentenced on February 12, 2014, by United States District Judge Kimberly J. Mueller to 10 years in prison, to be followed by a 10-year term of supervised release. According to court documents, in May 2012, Cruz posted an advertisement on Craigslist seeking a young-looking female. He arranged to meet a minor for the purpose of having sex with her and was arrested upon his arrival at the designated meeting point. (2:11-cr-239 KJM)
Chico, Rocklin and Roseville Defendants Indicted on February 12, 2014
A federal grand jury returned a one-count indictment charging John Franklin Bye, 45, of Chico, with receiving images of child pornography between 2011 and 2012. Bye was arraigned on February 14, 2014 and pleaded not guilty. He is in custody, and his next court date is April 1, 2014. (2:14-cr-034 JAM)
A federal grand jury returned a one-count indictment charging Paul Ross Pacini, 45, of Rocklin, with receiving images of child pornography between December 28, 2009, and October 13, 2013. At his arraignment on February 12, 2014, Pacini pleaded not guilty. He is in custody, and his next court date is March 11, 2014. (2:14-cr-033 LKK)
Robert Jones, 49, of Roseville, was indicted for receiving images of child pornography between October 23, 2011, and October 27, 2011. Jones pleaded not guilty at his arraignment on February 18, 2014. He was released on $50,000 bond. (2:14-cr-037 KJM)
The maximum statutory penalty for each violation of distributing or receiving child pornography is 20 years in prison and a $250,000 fine. A conviction for the violation would also carry a mandatory minimum term of five years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The charges in the indictments are only allegations; each defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
These cases, other than the Bakersfield case, were investigated by the Sacramento Internet Crimes Against Children (ICAC) task force. ICAC is a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant United States Attorney Kyle Reardon is prosecuting the cases other than the Bakersfield case
These cases were 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
February Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 24 indictments charging 28 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Tempest Amerson, age 23, of Lincoln, Nebraska; Yolanda Clemons, age 46, of Kansas City, Kansas; Isys Jordan, age 23, of Marietta, Georgia; Rosland Starks, age 44, of Council Bluffs, Iowa; and Thomas Whitlow, age 52, of Kansas City, Kansas are charged in a twelve-count Indictment. Beginning at least on or about May 31, 2011, and continuing through on or about November 1, 2013, the defendants allegedly devised a scheme to solicit money from elderly individuals under false pretenses. The defendants called elderly individuals and claimed to be family relatives or persons acting on their behalf. The caller claimed that the family member needed money immediately due to exigent circumstances. The elderly individual would then wire money immediately to the defendants. In all, these elderly individuals wired approximately $20,000. If convicted each of the twelve counts is punishable by 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Richard D. Avila, Jr., age 50, of Omaha, is charged with conspiring with others to distribute and possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine beginning on or about May 1, 2013 and continuing to on or about November 21, 2013. The maximum possible penalty if convicted is imprisonment of not less than 10 years and up to life, a $10 million fine, a 5 year term of supervised release, and a $100 special assessment.
* Lamar Bertucci, age 45, of Walthill, Nebraska, is charged in a two-count indictment. Count I of the indictment alleges Bertucci shot and killed a bald eagle on or about February 10, 2014. The maximum possible penalty, if convicted, is 2 years imprisonment , a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment. Count II of the indictment alleges Bertucci shot and killed a rough-legged hawk on or about February 20, 2014. The maximum possible penalty, if convicted, is 6 months imprisonment, a $5,000 fine and a $10 special assessment.
* Carlos Francisco-Hernandez, age 22, is charged in a three-count Indictment. Count I of the Indictment charges the defendant with misuse of a Social Security Number on or about February 9, 2014. The maximum possible penalty for this count is imprisonment of 5 years, a fine of $250,000, 3 years supervised release, and a special assessment of $100. Count II of the Indictment alleges on or about February 9, 2014, Francisco-Hernandez made a false statement claiming to be a United States citizen with the intent to receive Federal and State benefits or to otherwise obtain employment in the United States. The maximum possible penalty for this count is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. Count III of the Indictment alleges that on or about February 9, 2014, Francisco-Hernandez misused a Social Security Card and a State of Missouri Identification Card knowing that said documents were not issued lawfully for his use. The maximum possible penalty for this count is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Jose Fuentes-Urbina, age 31, of Omaha, is charged with illegal reentry into the United States on or about September 24, 2013, following deportation as an aggravated felon. The maximum possible penalty if convicted is imprisonment of 20 years, a $250,000 fine, 5 years of supervised release, and a $100 special assessment.
* Jazmin Gallardo-Luna, age 27, is charged in a three-count Indictment. Count I of the Indictment charges the defendant with misuse of a Social Security Number on or about December 10, 2009. The maximum possible penalty for this count is imprisonment of 5 years, a fine of $250,000, 3 years supervised release, and a special assessment of $100. Count II of the Indictment alleges on or about December 10, 2009, Gallardo-Luna made a false statement claiming to be a United States citizen with the intent to receive Federal and State benefits or to otherwise obtain employment in the United States. The maximum possible penalty for this count is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. Count III of the Indictment alleges that on or about December 10, 2009, Gallardo-Luna misused a Social Security Card and a State of Illinois Identification Card knowing that said documents were not issued lawfully for his use. The maximum possible penalty for this count is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Alfa Juarez-Miranda, age 45, is charged in a three-count Indictment. Count I of the Indictment charges the defendant with misuse of a Social Security Number on or about August 28, 2009. The maximum possible penalty for this count is imprisonment of 5 years, a fine of $250,000, 3 years supervised release, and a special assessment of $100. Count II of the Indictment alleges on or about August 28, 2009, Juarez-Miranda made a false statement claiming to be a United States citizen with the intent to receive Federal and State benefits or to otherwise obtain employment in the United States. The maximum possible penalty for this count is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. Count III of the Indictment alleges that on or about August 28, 2009, Juarez-Miranda misused a Social Security Card and a State of Minnesota Identification Card knowing that said documents were not issued lawfully for his use. The maximum possible penalty for this count is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Jose Antonio Lopez-Salas, age 26, of Omaha, is charged with illegal reentry into the United States on or about January 17, 2014, following deportation as a felon. The maximum possible penalty if convicted is imprisonment of 10 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Christo Lorenzo-Ortiz, age 30, is charged in a three-count Indictment. Count I of the Indictment charges the defendant with misuse of a Social Security Number on or about March 12, 2009. The maximum possible penalty for this count is imprisonment of 5 years, a fine of $250,000, 3 years supervised release, and a special assessment of $100. Count II of the Indictment alleges on or about March 12, 2009, Lorenzo-Ortiz made a false statement claiming to be a United States citizen with the intent to receive Federal and State benefits or to otherwise obtain employment in the United States. The maximum possible penalty for this count is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. Count III of the Indictment alleges that on or about March 12, 2009, Lorenzo-Ortiz misused a Social Security Card and a State of Missouri driver’s license knowing that said documents were not issued lawfully for his use. The maximum possible penalty for this count is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Deysi Magana-Flores, age 23, is charged in a three-count Indictment. Count I of the Indictment charges the defendant with misuse of a Social Security Number on or about July 27, 2011. The maximum possible penalty for this count is imprisonment of 5 years, a fine of $250,000, 3 years supervised release, and a special assessment of $100. Count II of the Indictment alleges on or about July 11, 2011, Magana-Flores made a false statement claiming to be a United States citizen with the intent to receive Federal and State benefits or to otherwise obtain employment in the United States. The maximum possible penalty for this count is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. Count III of the Indictment alleges that on or about July 11, 2011, Magana-Flores misused a Social Security Card and a State of Missouri Identification Card knowing that said documents were not issued lawfully for his use. The maximum possible penalty for this count is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Francisco C. Marin, age 24, of Offutt AFB, Nebraska, is charged with possession with intent to distribute 50 grams or more of actual methamphetamine on or about January 31, 2014. The maximum possible penalty if convicted is imprisonment of not less than 10 years and up to Life, a $10 million fine, a 5 year term of supervised release and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in Count I of the indictment, including but not limited to: United States currency seized on January 31, 2014, should be forfeited to the United States.
* James F. Parks, age 65, of Alliance, Nebraska, is charged in a two-count indictment. Count I of the Indictment charges Parks with receipt and distribution of child pornography from at least on or about June 9, 2013 and continuing to on or about June 10, 2013. The maximum possible penalty if convicted is imprisonment of 20 years, a $250,000 fine, supervised release for Life, and a $100 special assessment. Parks is charged in Count II of the Indictment with possession of child pornography on or about August 8, 2013. The maximum possible penalty if convicted is imprisonment of 10 years, a $250,000 fine, supervised release for life, and a $100 special assessment.
* Ryan William Perich, age 29, of Woodbridge, California, is charged with traveling in interstate commerce from on or between about March 1, 2013 through about January 24, 2014, to distribute the proceeds and to promote the carrying on of an illegal activity. The maximum possible penalty if convicted is 5 years imprisonment, a fine of $250,000, 3 years of supervised release and a $100 special assessment.
* Lewis E. Phoenix, age 21, of Arlington, Texas, is charged with possession with intent to distribute 28 grams or more of a mixture or substance containing a detectable amount of cocaine base on or about October 30, 2013. The maximum possible penalty if convicted is imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 4 year term of supervised release, and a $100 special assessment.
* Rudy Alexander Reyes, age 32, of Fremont, Nebraska, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with illegal reentry into the United States on or about January 17, 2014, following deportation as an aggravated felon. The maximum possible penalty if convicted is imprisonment of 20 years, a $250,000 fine, 5 years of supervised release, and a $100 special assessment. Count II of the indictment charges Reyes with failure to register as a sex offender from on and before January 17, 2014. The maximum possible penalty if convicted is imprisonment of 10 years, a $250,000 fine, 5 years up to Life supervised release, and a $100 special assessment.
* Wesley A. Roberts, age 62, of Bridgeport, Nebraska, is charged in a two-count indictment. Count I of the Indictment charges Roberts with receipt and distribution of child pornography from at least on or about September 17, 2013, and continuing to on or about January 7, 2014. The maximum possible penalty if convicted is imprisonment of 20 years, a $250,000 fine, supervised release for Life, and a $100 special assessment. Roberts is charged in Count II of the Indictment with possession of child pornography on or about January 7, 2014. The maximum possible penalty if convicted is imprisonment of 10 years, a $250,000 fine, supervised release for life, and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violations, including but not limited to: One Samsung Tracphone, should be forfeited to the United States.
* Adrian Salgado-Sandoval, age 42, of Omaha, is charged with illegal reentry into the United States on or about September 11, 2013, following deportation. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Inocencio Segura Jimenez, also known as Inocencio Segura, age 32, of Lincoln, Nebraska, is charged with possession with intent to distribute 50 grams or more of methamphetamine on or about September 5, 2013. The maximum possible penalty if convicted is imprisonment of not less than 10 years and up to Life, a $10 million fine, a 5 year term of supervised release and a $100 special assessment.
* Amen Sheridan, age 53, and Julie L. Whiteskunk, age 53, both of Walthill, Nebraska, are charged in a two-count Indictment. Counts I and II of the Indictment charge Sheridan and Whiteskunk with theft of funds from the Omaha Tribal Housing Authority for their own personal use on or about November 24, 2009 and on and before August 5, 2009. The maximum possible penalty for both Counts if convicted is imprisonment of 5 years, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment.
* Anthony Slizoski, a 31, of Columbus, Nebraska is charged in a two-count indictment. Count I charges Slizoski with conspiring with others to distribute and possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine beginning on or about July 17, 2013 and continuing to on or about January 17, 2014. The maximum possible penalty if convicted is imprisonment of not less than 10 years and up to life, a $10 million fine, a 5 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges the defendant with distribution of a mixture or substance containing a detectable amount of methamphetamine on or about January 17, 2014. The maximum possible penalty if convicted is imprisonment of 20 years, a $1 million fine, a 3 year term of supervised release, and a $100 special assessment.
* Camilo Solorzano-Ramirez, also known as Victor Solorzano-Ramirez, age 43, is charged with illegal reentry into the United States on or about January 13, 2014, following deportation as an aggravated felon. The maximum possible penalty if convicted is imprisonment of 20 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Maria Solis_Lorenzo, age 24, is charged in a three-count Indictment. Count I of the Indictment charges the defendant with misuse of a Social Security Number on or about March 10, 2009. The maximum possible penalty for this count is imprisonment of 5 years, a fine of $250,000, 3 years supervised release, and a special assessment of $100. Count II of the Indictment alleges on or about March 10, 2009, Solis-Lorenzo made a false statement claiming to be a United States citizen with the intent to receive Federal and State benefits or to otherwise obtain employment in the United States. The maximum possible penalty for this count is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. Count III of the Indictment alleges that on or about March 10, 2009, Solis-Lorenzo misused a Social Security Card and a State of Missouri Identification Card knowing that said documents were not issued lawfully for his use. The maximum possible penalty for this count is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Pablo Vasquez Alvarado, also known as Juan Pablo Abrajan-Marino, age 38, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with misuse of a Social Security Number on or about March 20, 2013. The maximum possible penalty for this count is imprisonment of 5 years, a fine of $250,000, 3 years supervised release, and a special assessment of $100. Count II of the Indictment alleges on or about March 20, 2013, Alvarado made a false statement claiming to be a United States citizen with the intent to receive Federal and State benefits or to otherwise obtain employment in the United States. The maximum possible penalty for this count is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Israel Vicente-Ordonez, 25, is charged in a three-count Indictment. Count I of the Indictment charges the defendant with misuse of a Social Security Number on or about December 14, 2010. The maximum possible penalty for this count is imprisonment of 5 years, a fine of $250,000, 3 years supervised release, and a special assessment of $100. Count II of the Indictment alleges on or about December 14, 2010, Vicente-Ordonez made a false statement claiming to be a United States citizen with the intent to receive Federal and State benefits or to otherwise obtain employment in the United States. The maximum possible penalty for this count is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. Count III of the Indictment alleges that on or about December 14, 2010, Vicente-Ordonez misused a Social Security Card and a State of Missouri Identification Card knowing that said documents were not issued lawfully for his use. The maximum possible penalty for this count is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.Fayetteville Resident Sentenced for Receipt of Child PornographyRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that yesterday in federal court Chief United States District Judge James C. Dever III, sentenced DONALD HIGGINS , 64, originally from Rochester, New York, to 180 months imprisonment, followed by 10 years of supervised release and he is required to register as a Sex Offender.
A Federal Grand Jury returned a Criminal Indictment on July 17, 2013. On October 28, 2013, HIGGINS pled guilty to one count of receipt of child pornography.
According to the investigation, during the execution of a search warrant on August 6, 2012, agents located several books containing child pornography along with two computers, a hard drive multiple media storage devices and documentation giving instructions on how to sexually molest children. Forensic examination of the seized items revealed more than 60,000 images and an undetermined number of videos depicting child pornography.
Investigation of this case was conducted by the Fayetteville Police Department. Assistant United States Attorney Ethan Ontjes prosecuted the case for the United States.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Ex-BLM Employee Sentenced for Theft of Government FundsRead the Press Release
PORTLAND, Ore. – Today, U.S. District Judge Michael H. Simon sentenced Maria Lana Gilbert for embezzling funds from her employer, the Bureau of Land Management (BLM), Salem District Office (SDO), between 2007 and 2011. A felony information, dated September 13, 2013, charged Gilbert with one count of theft of government funds. On November 13, 2013, pursuant to a plea agreement, Maria Gilbert pleaded guilty to the single count of theft of government funds. U.S. District Judge Simon sentenced Gilbert to two years of probation, including six months of home detention, and full restitution to BLM in the amount of $41,276.33.
In pleading guilty, Gilbert admitted that between September 1, 2007 and May 1, 2011, she knowingly stole and converted to her own use BLM funds using her government issued credit card to purchase items and gift cards for her personal use.
Historically, supervisors in the BLM and the SDO provided employees with gift cards as performance awards. BLM awards included gift cards for specific merchants and general use gift cards that could be used with any merchant capable of processing debit or credit card purchases. SDO authorized defendant Gilbert to purchase gift cards with her government credit card from merchants in Oregon and from retail Internet sites to be used as part of the reward program.
BLM undertook an agency-wide audit of the gift card program in 2010, including a review of Gilbert’s purchases, which resulted in the suspension of Gilbert’s government credit card in May 2011. The BLM investigation into Gilbert’s purchases revealed that she used her government issued credit card to buy items and gift cards totaling at least $41,276.33 for her personal use. Records from merchants confirmed that Gilbert submitted fraudulent receipts to her supervisor in an effort to hide the items she purchased for personal use.
According to the terms of the plea agreement, in addition to her sentence and restitution order, Gilbert resigned from the BLM effective November 13, 2013, and if Gilbert seeks future employment with any other federal agency, she must disclose the facts and details of this conviction. Also pursuant to the plea agreement, Gilbert paid the full amount of restitution to BLM at the time of sentencing.
BLM’s Office of Law Enforcement and Security investigated this case. Assistant U. S. Attorney Donna Brecker Maddux handled the prosecution.
Eagle Pass Businessman Pleads Guilty to Role in Maverick County Bribery, Kickback and Bid-Rigging SchemeRead the Press Release
In Del Rio today, 64-year-old Saul Lombrana, owner and operator of Fiesta Contractors based in Eagle Pass, admitted to paying a bribe in order to receive a Maverick County construction contract announced United States Attorney Robert Pitman and Acting FBI Special Agent in Charge Aaron C. Rouse, San Antonio Division.
Appearing before United States District Judge Alia Moses this afternoon, Lombrana pleaded guilty to one count of paying a bribe to an agent of an organization receiving federal funds. By pleading guilty, Lombrana admitted that in March 2011, he submitted a $14,500 bid to construct 155 linear feet of concrete drain swell on Rafael Street in Precinct 1. After being awarded the contract, Lombrana never constructed the concrete drain swell, but requested and received full payment for the project. Of the $14,500 he received, Lombrana admittedly only kept $5,000 while giving the rest to a Maverick County employee as a bribe.
Lombrana faces up to ten years in federal prison, a maximum $250,000 fine and restitution to be determined by the Court. He remains on bond pending sentencing which has yet to be scheduled.
This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety. Individuals who have first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741. Assistant United States Attorneys Michael Galdo and Bryan Reeves are prosecuting this case on behalf of the Government.
Division of Highways Supervisor Indicted on False Statement ChargeRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistELKINS, WEST VIRGINIA – A supervisor with the state Division of Highways has been charged with making a false statement to a federal agent.
United States Attorney William J. Ihlenfeld, II, announced that Barry D. THOMPSON, 48 years old, of Mount Clare, West Virginia, was indicted by a federal grand jury yesterday on one count of "False Statement to a Federal Agent." THOMPSON is charged with making materially false statements last month to an F.B.I. agent who questioned him as part of an ongoing federal investigation into the Equipment Division of the West Virginia Division of Highways. THOMPSON works as a supervisor at the Buckhannon office of the DOH.
An indictment is merely an accusation and THOMPSON is presumed innocent until and unless proven guilty. THOMPSON faces up to five years in prison and a fine of up to $250,000 if he is convicted. Under the Federal Sentencing Guidelines the actual sentence imposed will be based upon the seriousness of the offense and his prior criminal history, if any.
This case is being prosecuted by Assistant United States Attorney John C. Parr and was investigated by the U.S. Attorney’s Office Public Corruption Unit. Agents and officers from the Federal Bureau of Investigation, the West Virginia State Police, and the State Commission on Special Investigations are leading the inquiry.
Defendants Sentenced to Lengthy Federal Prison Terms for Roles in Major Methamphetamine Distribution ConspiracyRead the Press Release
Defendants Obtained Meth from Supply Sources in the DFW Metroplex and Distributed it to Customers in Wichita Falls
DALLAS — Two defendants, who pleaded guilty in 2013 to their respective roles in a major methamphetamine distribution conspiracy operating in Wichita Falls, Texas, have been sentenced to lengthy prison terms, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Yesterday, in federal court in Dallas, U.S. District Judge Reed C. O’Connor sentenced Steve Ysasaga, 41, of Arlington, Texas, to 240 months in federal prison. Earlier this week, Judge O’Connor sentenced Roberto Macias, 34, of El Paso, Texas, to 180 months in federal custody.
According to documents filed in the case, on multiple occasions between mid-October 2010 and August 23, 2012, Ysasaga received multi-ounce quantities of methamphetamine from supply sources in the Dallas-Fort Worth (DFW) metroplex, which he then delivered and distributed to numerous customers in the Wichita Falls area. He also coordinated the manufacturing, or cooking, of the methamphetamine and supplied the individuals who cooked it with the chemical precursors, such as pseudoephedrine tablets, which were needed to manufacture it. Ysasaga admits that during the conspiracy, he possessed with intent to distribute and distributed more than one kilogram of methamphetamine.
On one occasion, in August 2012, when Ysasaga was transporting methamphetamine from his home to Wichita Falls, he was stopped by a Trooper with the Texas Department of Public Safety (DPS). After a drug-detection dog alerted on Ysasaga’s truck, a search resulted in DPS seizing nearly 530 grams of methamphetamine that was concealed in a Portable 12v power source.
Macias admitted that on multiple occasions between August 24, 2011 and February 29, 2012, he also received multi-ounce quantities from supply sources in the DFW metroplex and distributed quantities of the methamphetamine to numerous customers in the Wichita Falls area. He further admitted transporting and arranging for others to transport methamphetamine from the DFW area to Wichita Falls.
To date, all 39 defendants charged in this conspiracy have entered guilty pleas; all but two defendants have been sentenced.
This Organized Crime and Drug Enforcement Task Force (OCDETF) case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Texas DPS; and the Wichita Falls Police Department. Assistant U.S. Attorney Mary F. Walters is in charge of the prosecution.
Convicted Felon Sentenced to Serve A Total of 120 Months in Federal Prison on Firearm and Drug ConvictionsRead the Press Release
DALLAS — A convicted felon from Wichita Falls, Texas, was sentenced today by U.S. District Judge Reed C. O’Connor on firearm and drug convictions, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Juan Derrick Martinez, 32, was sentenced to 120 months in federal prison on each count of conviction, to run concurrently. He pleaded guilty in July 2013 to an indictment charging one count of being a felon in possession of a firearm and one count of possession with intent to distribute methamphetamine.
According to documents filed in the case, on June 1, 1012, a Wichita Falls Police officer initiated a traffic stop on a pickup truck after observing a traffic violation on Iowa Park Road in Wichita Falls. Martinez was the third passenger in the car, seated next to the passenger side door.
A narcotics detection canine alerted on the truck’s right front floorboard. A plastic bag containing three smaller plastic bags was located under the passenger seat. The contents of one plastic bag tested positive for cocaine while the contents of the other two bags tested positive for methamphetamine. Inside of a backpack, which was between Martinez’s legs when the truck was stopped, were several small plastic bags, a small plastic scale, and a loaded 9mm semi-automatic pistol.
This case was investigated by the Texas Department of Public Safety, the Wichita Falls Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Mary F. Walters prosecuted.
Computer Networking Expert Sentenced to 8 Years in Prison for Receipt and Possession of Child PornographyRead the Press Release
Orlando, FL – U.S. District Judge Roy B. Dalton, Jr. sentenced Juan Gonzalez (60, Palm Bay) earlier this week to 8 years in federal prison for receipt and possession of child pornography. As part of his sentence, he was also ordered to serve a 10-year term of supervision, following his incarceration. Gonzalez pleaded guilty on July 8, 2013.
According to court documents, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) began investigating an Internet Protocol (IP) address that was located at a home in Palm Bay, Florida, where images of child pornography were available for download via a peer-to-peer file sharing program. HSI agents then executed a search warrant at the Palm Bay residence. However, after searching the residence and speaking to the home’s occupant, the agents learned that the occupant’s former neighbor, Juan Gonzalez, had been using the occupant’s wireless signal to download and view child pornography, without the occupant’s permission.
Further investigation identified numerous IP addresses, through different Internet service providers, that Gonzalez used to download and view child pornography. Employing his knowledge of computers, Gonzalez used Internet service providers that allowed him to direct his Internet traffic through Virtual Private Network services to obtain IP addresses, which may geo-locate to a different part of the country or the world. On December 13, 2013, agents connected to Gonzalez’s assigned IP address at his new home in Palm Bay and found dozens of files indicative of child pornography. During an interview with agents, Gonzalez admitted to having a large amount of child pornography on his computers. He also stated that he had been viewing child pornography for more than ten years. A forensic analysis of Gonzalez’s computers and electronic equipment revealed 174 movies and more than 1,200 still images of child pornography.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Joseph M. Schuster.It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Charges Filed Against Vendor Using Silk Road Website to Sell Drugs and GunsRead the Press Release
Baltimore, Maryland – Sheldon Kennedy, age 26, of Lincoln, Nebraska was charged by complaint on charges arising from the sale of drugs, guns and counterfeit currency on an online site known as Silk Road. The complaint was filed on January 31, 2014 and unsealed today after his arrest yesterday in Miami, Florida.
The complaint was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to the affidavit in support of the complaint and court documents, an online, international marketplace known as Silk Road, operated from January 2011 through September 2013. Silk Road allowed users to anonymously buy and sell illegal drugs, false identifications, counterfeit currency, guns and other contraband over the Internet. In September 2011, HSI Baltimore special agents initiated an investigation into the Silk Road website. Thereafter, the Baltimore Silk Road Task Force was created to address the contraband being sold on Silk Road.
The complaint alleges that on January 6, 2012, a USPS express mail package from China was opened in San Francisco pursuant to a border search. The package was being sent to Kennedy in Nebraska and was found to contain 55 grams of 4-fluoroamphetamine, a psychoactive drug and research chemical similar to MDMA, also known as ecstasy. Agents began investigating Kennedy. Thereafter, undercover agents in Baltimore bought contraband from Kennedy on Silk Road, who used aliases to sell cocaine and a pistol. Further investigation revealed that Kennedy was not licensed to sell firearms.
According to the complaint, Kennedy also sold counterfeit currency to another individual in Maryland on Silk Road. And in May 2012, agents intercepted a package Kennedy mailed to an individual in England. The package was found to contain 110 grams of DMT, a controlled substance. Kennedy also posted pictures online, such as on Facebook and Google+, of firearms, firearm accessories and large amounts of U.S. currency, which he advertised for sale.
On June 28, 2013, a search warrant was executed at Kennedy’s home. Ten firearms were seized, along with ammunition and illegal drugs.
A complaint is not a finding of guilt. An individual charged by complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
Kennedy faces a maximum sentence of 20 years in prison for conspiracy to traffic controlled substances; and five years in prison each for possession of a firearm in furtherance of a drug trafficking offense, interstate sale or transfer of a firearm without a license to another unlicensed person and conspiracy to pass counterfeit money.
In related cases, Curtis Green, a/k/a “Flush,” and “chronicpain,” age 47, of Utah, previously pleaded guilty to conspiracy to distribute and possess with attempt to distribute cocaine. Green admitted to being an administrator of the Silk Road website. Jacob Theodore George IV, age 32, of Edgewood, Maryland, also previously pleaded guilty to conspiracy to distribute and possess with intent to distribute drugs, including heroin. George admitted to selling drugs on Silk Road. Green faces a maximum sentence of 40 years in prison and George faces a maximum sentence of 20 years in prison for conspiracy to distribute and possess with intent to distribute cocaine. U.S. District Judge Catherine C. Blake scheduled sentencing for Green on July 11, 2014. No sentencing date is scheduled for George.
Ross Ulbricht, a/k/a “Dread Pirate Roberts,” a/k/a “DPR,” age 29, of San Francisco, California, has been indicted in Maryland on charges of conspiracy to distribute a controlled substance, attempted witness murder and using interstate commerce facilities in the commission of murder-for-hire. Silk Road was allegedly created and operated by Ross Ulbricht, a/k/a “Dread Pirate Roberts,” who collected a fee for each transaction on the website. Ulbrecht faces a maximum of 40 years in prison for the drug distribution conspiracy; a maximum sentence of 30 years in prison for attempted witness murder; and a maximum of 10 years in prison for using interstate commerce facilities in the commission of murder-for-hire. No court appearance in Maryland has been scheduled.
Ulbricht faces a related indictment in the U.S. District Court for the Southern District of New York. 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.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, DEA, ATF, U.S. Postal Inspection Service, U.S. Secret Service and IRS-Criminal Investigation for their work in the investigation. U.S. Attorney Rosenstein recognized U.S. Attorneys Preet Bharara and Gary S. Shapiro of the Southern District of New York and the Northern District of Illinois, respectively, and their offices; the FBI; and Senior Trial Counsel James Silver of the U.S. Department of Justice Computer Crimes and Intellectual Property Section for their assistance in the case. Mr. Rosenstein thanked Assistant United States Attorney Justin S. Herring, who is prosecuting this Organized Crime Drug Enforcement Task Force case.
Ceres Mortgage Broker Pleads Guilty to Filing A False Tax ReturnRead the Press Release
FRESNO, Calif. — Maria Vega, 53, a mortgage broker and real estate agent in Ceres, pleaded guilty today to filing a false tax return, United States Attorney Benjamin B. Wagner announced.
According to her plea agreement, Vega owned and operated Vega's Financial Services and was licensed as a broker by the California Department of Corporations. Vega earned income from working as a loan officer on mortgage transactions at Vega's Financial Services, and she also earned income as real estate agent in connection with the purchase, sale, and refinancing of residential properties. Although Vega received substantial income in tax years 2005, 2006 and 2007, she did not file federal income tax returns for tax years 2005 and 2006, until 2008. When Vega did file federal income tax returns in April 2008 for tax years 2005, 2006, and 2007, she substantially underreported both her income and tax due for those tax years. For example, Vega admitted that she underreported taxable income on her income tax return for the 2006 tax year of approximately $415,235.
According to IRS-Criminal Investigation Special Agent in Charge José M. Martinez, "All Americans have a duty to pay their fair share. The prosecution of individuals who intentionally conceal income and evade taxes is a vital element in maintaining public confidence in our tax system. We should not expect the honest taxpayer to foot the bill for those who hide income from the IRS."
This case is the product of an investigation by the Internal Revenue Service – Criminal Investigation. Assistant United States Attorneys Kirk E. Sherriff and Michael G. Tierney are prosecuting the case.
Vega is scheduled to be sentenced by U.S. District Judge Lawrence J. O'Neill on June 9, 2014. The maximum statutory penalty for filing a false tax return is three years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.Career Offender Charged with Illegally Possessing Weapons and DrugsRead the Press Release
PITTSBURGH – A Pittsburgh man with multiple state court convictions has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, United States Attorney David J. Hickton announced today.
The two-count indictment, returned on Feb. 18, named Jeremiah Pashuta, 35, as the sole defendant.
According to court filings, on Aug. 6, 2013, Pashuta possessed a sawed-off shotgun and two semi-automatic pistols on the day Pittsburgh Police Officers executed a search warrant at his residence. Police also located approximately 649 stamp bags containing a total of 49.84 grams of heroin, thousands of dollars in cash, a drug scale and records of drug debts. Pashuta has had multiple state court convictions for drug dealing, illegal gun possession and threats in the past. Federal law makes it illegal for a person to possess a firearm or ammunition after a state court conviction for an offense carrying a maximum penalty of more than one year in prison.
The law provides for a maximum total sentence of not less than 15 years and up to life in prison, a fine of $2,250,000 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 of the defendant.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case. This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.