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Thursday 2 January 2014
Registered Sex Offender Living in Palm Beach County, Florida Arrested for Attempting to Entice A Minor to Engage in Unlawful Sexual ActivityRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Dave Aronberg, State Attorney, Office of the State Attorney for Palm Beach County, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, (ICE-HSI), and Jeffrey S. Katz, Chief of Police, Boynton Beach Police Department, (BBPD), announce that Paul David Culbreth, 52, of Loxahatchee, Florida, appeared in federal court today for an initial appearance on the charge of attempting to entice a minor to engage in an illegal sexual activity. If convicted, he faces a 10 year mandatory term of imprisonment and a maximum term of life..
According to the criminal complaint, Culbreth sent numerous sexually explicit messages via a web-based social media application to an undercover officer posing as a 15 year old boy. Culbreth then attempted to meet the minor to engage in illegal sexual activity on New Year’s Eve. Culbreth was arrested by Special Agents from ICE-HSI after he drove to a location where he believed he would pick up the 15 year old boy; lubricant and condoms were found in his vehicle on arrest. Culbreth is a registered sex offender in Palm Beach County, Florida.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. 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 exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Ferrer commended the investigative and cooperative efforts of ICE-HSI and BBPD. The case is being prosecuted by Assistant U.S. Attorney Adam McMichael and Special Assistant U.S. Attorney Gregory Schiller from the Palm Beach County State Attorney’s Office.
A criminal complaint is only an accusation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Plainview, Texas, Man Sentenced to 210 Months in Federal Prison for Producing Child PornographyRead the Press Release
LUBBOCK, Texas—Jose Francisco Madrigal, Jr., 43, of Plainview, Texas, was sentenced last Friday, by U.S. District Judge Sam R. Cummings, to 210 months in federal prison following his guilty plea in August 2013 to one count of production of child pornography. Judge Cummings remanded Madrigal, who had been on bond, into custody. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
In October 2012, according to plea documents filed in the case, Madrigal, using a digital camera and aiming the camera through a hole in a bathroom wall, took sexually explicit videos of a female child, while the child was taking a shower.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Plainview Police Department. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Operator of Meriden Grocery Store Sentenced to 27 Months in Federal Prison for Food Stamp FraudRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MYRACHID ELQUAFAI, 52, a citizen of Morocco last residing in New Haven, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 27 months of imprisonment, followed by three years of supervised release, for defrauding the federal Food Stamp Program while operating a Meriden grocery store.
On April 26, 2013, following a five-day trial, a jury found ELQUAFAI guilty of one count of conspiracy to commit food stamp fraud and one count of food stamp fraud. According to the evidence disclosed during the trial, the federal Food Stamp Program, which is now known as the Supplemental Nutrition and Assistance Program (“SNAP”), is administered by the USDA’s Food and Nutrition Service and utilizes federal tax dollars to subsidize low-income households to provide them with the opportunity to achieve a more nutritious diet by increasing their food-purchasing power. SNAP recipients purchase eligible food items at retail food stores through the use of an EBT card, which is similar to an ATM card. SNAP benefits may be accepted by authorized retailers only in exchange for eligible items. Items such as alcoholic beverages, cigarettes, paper goods and soaps are not eligible for purchase with Food Stamp benefits, and it is a violation of the rules and regulations governing the food stamp program to allow benefits to be used to purchase ineligible items. SNAP benefits may not lawfully be exchanged for cash under any circumstances. The program is designed so that the total amount of each purchase is electronically transferred to the retailer’s designated bank account.
ELQUAFAI operated CJ Express and Groceries, LLC, located at 145 West Main Street in Meriden. From approximately June 2010 to July 2012, ELQUAFAI conspired with Carlos Dominguez, the owner of CJ Express and Groceries, to redeem SNAP benefits at the store at a significantly discounted rate in exchange for cash and cigarettes. The investigation revealed that more than $820,000 in illegal SNAP benefits were redeemed at the store.
ELQUAFAI, who has been detained since his arrest on August 2, 2012, is subject to immigration proceedings after his release from prison.
Dominguez has pleaded guilty and awaits sentencing.
This matter was investigated by the U.S. Department of Agriculture, Office of Inspector General and the Office of the Chief State’s Attorney. The case is being prosecuted by Assistant U.S. Attorneys Neeraj Patel and Anastasia King.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Nebraska U.S. Attorney’s Office Collects $4,588,507.19 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
Nebraska - U.S. Attorney Deborah R. Gilg announced today that the District of Nebraska collected $4,588,507.19 in criminal and civil actions in Fiscal Year 2013. Of this amount, $2,356,773.53 was collected in criminal actions and $2,231,733.66 was collected in civil actions.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration U.S. Department of Agriculture and Department of Education.
Additionally, the U.S. Attorney’s office in Nebraska, working with partner agencies and divisions, collected $1,168,854 in asset forfeiture actions in FY 2013. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Manhattan U.S. Attorney Settles Lawsuit Against Westchester Funeral Home and Its President for Unfair Trade PracticesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today the settlement of a lawsuit against HARRISON FUNERAL HOME, INC. (“HARRISON”), a funeral home in Westchester County, New York, and its President JOHN BALSAMO (“BALSAMO”) for engaging in unfair and deceptive acts or practices in connection with the provision of funeral services. The settlement, in the form of a consent decree, was based on a Complaint filed in May 2012 in White Plains federal court and approved today by U.S. District Judge Nelson Stephen Román.
Manhattan U.S. Attorney Preet Bharara said: “As part of today’s settlement, Harrison Funeral Home admitted that it violated a federal rule designed to ensure that people receive fair pricing information from funeral providers. As this suit and settlement demonstrate, we will continue to use our statutory powers to act against unscrupulous businesses that take advantage of consumers in their most vulnerable moments.”
According to the Complaint filed in White Plains federal court:
The Federal Trade Commission (“FTC”) promulgated what is known as the Funeral Rule to ensure that people inquiring about funeral arrangements receive full and fair pricing information and are not taken advantage of by funeral providers through inflated prices, overcharges, double charges, or unnecessary services. The law requires that information about prices be disclosed to persons inquiring about funeral arrangements and that they be given written price lists and statements of the funeral goods they selected to purchase.
The Complaint alleges that HARRISON committed violations of the Funeral Rule by failing to provide the required price lists to persons inquiring about funeral services on four separate occasions. Although HARRISON and BALSAMO were advised of their violations of the Funeral Rule and given the option of enrolling in a voluntary program aimed at preventing future violations, HARRISON and BALSAMO failed to enroll their employees in the program’s required trainings and continued to violate the Funeral Rule.
In the consent decree, HARRISON and BALSAMO admit that they violated the Funeral Rule. The consent decree permanently enjoins HARRISON and BALSAMO from violating the Funeral Rule in the future, requires defendants to submit compliance notices to the FTC for the next twenty years, and requires defendants to maintain certain records and to submit to compliance reviews. In addition, HARRISON and BALSAMO will pay a $32,000 civil penalty to the United States.
The case is being handled by the Office’s Civil Division. Assistant U.S. Attorneys Natalie N. Kuehler and Ellen Blain are in charge of the case.
Man Arrested on Bus Charged in Kansas City, Kan., Bank RobberyRead the Press Release
KANSAS CITY, KAN. B A man who was arrested on a bus has been charged with robbing a bank in Kansas City, Kan., U.S. Attorney Barry Grissom said today.
Jamarr R. Dale, 29, Kansas City, Kan., was charged Monday in a criminal complaint filed in U.S. District Court in Kansas City, Kan. An affidavit filed in support of the complaint alleges that on Jan. 2, 2014, Dale robbed Security Bank at 10840 Parallel Parkway in Kanas City, Kan. He walked into the bank and gave a teller a note saying, “I need $3,000 or I will start shooting.” The teller emptied a drawer of cash and gave him the money, which he stuffed in his coat pocket before running out the front door of the bank.
Officers of the Kansas City, Kan., Police Department responded to the call and were advised the robber had boarded a city bus at a bus stop in the Wal-Mart parking lot around the corner from the bank. They found Dale sitting on the bus and arrested him.
If convicted, Dale faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. The Kansas City, Kan., Police Department investigated. Assistant U.S. Attorney Kim Martin is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Little Eagle Man Sentenced for Domestic Assault by A Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Little Eagle, South Dakota, man convicted of Domestic Assault by a Habitual Offender was sentenced on December 30, 2013, by U.S. District Judge Charles B. Kornmann.
Chat Moses Bobtail Bear, Sr., a/k/a Chate Moses Bobtail Bear, Sr., age 35, was sentenced to 28 months in custody, 3 years of Supervised Release, and a $100 special assessment to the Federal Crime Victims Fund.
Bobtail Bear was indicted by a federal grand jury on August 21, 2013. He pled guilty on October 7, 2013.
On August 6, 2013, a Bureau of Indian Affairs officer was dispatched to Little Eagle in reference to an unknown person lying in the road. Upon arrival, the officer observed a female sitting on the ground with a male and two children standing near her. The officer noticed several abrasions and lacerations to the female’s face. The victim informed the officer that she awoke that morning to Bobtail Bear stomping on her face. He continued to assault her by punching and kicking her about the head and face. She ran out of the house and made it as far as the street before Bobtail Bear caught up to her and continued to assault her. As a result of the assault, the victim suffered numerous abrasions and lacerations about her face and head, severely swollen lips, a broken nose and a broken hand.
Bobtail Bear has two prior judgments of conviction for domestic abuse of a spouse or intimate partner.
This case was investigated by the Bureau of Indian Affairs. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Bobtail Bear was immediately turned over to the custody of the U.S. Marshals Service.
Little Eagle Man Sentenced for Abusive Sexual Contact and Attempted Aggravated Sexual AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Little Eagle, South Dakota, man convicted of Abusive Sexual Contact and Attempted Aggravated Sexual Abuse was sentenced on December 30, 2013, by U.S. District Judge Charles B. Kornmann.
Ronnie Fire Cloud, a/k/a Ronald Fire Cloud, age 38, was sentenced to 120 months in custody on both counts to run concurrently, 5 years of Supervised Release, $400 in restitution and a $200 special assessment to the Federal Crime Victims Fund.
Fire Cloud was indicted for the above charges and Aggravated Sexual Abuse by Force by a federal grand jury on December 11, 2012. On October 15, 2013, Fire Cloud appeared before the Honorable Charles B. Kornmann for a jury trial. On October 16, 2013, a jury found him not guilty on the charge of Aggravated Sexual Abuse by Force; however they found him guilty on the other two charges.
The conviction stems from an incident occurring on November 2, 2012. Fire Cloud allowed the victim, who was a house guest, to use his shower. While she was showering, Fire Cloud entered the bathroom, fondled her, and attempted to rape her. The victim was able to escape the bathroom, flee the residence and contact the authorities.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency, National Park Service, and the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Fire Cloud was immediately turned over to the custody of the U.S. Marshals Service.
KC Man Charged with Robbing Brookside BankRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man has been charged in federal court with robbing Bank Midwest.
Casey M. Widman, 58, of Kansas City, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo., on Tuesday, Dec. 31, 2013, with stealing $838 from Bank Midwest.
According to an affidavit filed in support of the federal criminal complaint, Widman entered Bank Midwest, 6249 Brookside, Kansas City, at about 1:45 p.m. on Monday, Dec. 30, 2013. Widman allegedly approached one of the tellers, presented a black pistol and said he wanted to make a withdrawal in “all fifties and hundreds.” The teller gave Widman the cash, the affidavit says, and he fled from the bank on foot.
A witness told police officers that he saw a blue Ford Taurus, with a driver and two passengers, parked near the bank for about 15 minutes. The vehicle left the bank immediately after the robbery occurred. An officer saw a vehicle that matched that description and followed it. When the driver stopped at a gas station, all three occupants – including Widman, who was sitting in the back seat – were taken into custody.
When federal agents searched the vehicle, they found a pellet pistol. When agents searched Widman, they found $389 under his right boot sole. The other occupants of the vehicle have not been charged.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Bruce E. Clark. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Justice Department Requires Heraeus Electro-Nite LLC to Divest Assets Acquired <br /> from Midwest Instrument Company Inc. to Keystone Sensors LLCRead the Press Release
The Department of Justice today announced that it will require Heraeus Electro-Nite LLC to divest certain assets that it acquired from Midwest Instrument Company Inc. (Minco) to Keystone Sensors LLC in order to resolve the department’s competitive concerns. The department said that, without the divestiture, Heraeus’ acquisition of Minco’s assets substantially lessens competition in the market for the development, production, sale and service of single-use sensors and instruments used to measure and monitor the temperature and chemical composition of molten steel in the steel manufacturing process.
The department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia challenging the consummated acquisition. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the competitive concerns alleged in the lawsuit.
Heraeus acquired Minco in September 2012. The department learned of the transaction, which was not required to be reported under the premerger notification law, shortly after it was completed. According to the complaint, prior to the acquisition, Heraeus and Minco competed head-to-head on price, service and innovation in supplying sensors and instruments to steel manufacturers, for whom the reliability and precise performance of these products is of critical importance.“The proposed settlement will benefit consumers in the single-use sensors and instruments market by facilitating the entry of a new competitor into this market,” said Deputy Assistant Attorney General Renata B. Hesse of the Department of Justice’s Antitrust Division. “Today’s enforcement action shows that the department is committed to redressing anticompetitive mergers, including consummated mergers for which reporting is not required under the premerger notification law.”
The department required the divestiture of a package of assets to an identified purchaser, Keystone, that had been evaluated and approved by the department. The department said the proposed settlement will ensure that the assets Keystone requires in order to enter the U.S. market and compete more effectively with Heraeus are readily available to it. In this way, the divestiture to Keystone will promote competition in the sensors and instruments market, which was reduced when Heraeus acquired Minco. Keystone was formed in May 2013 for the purpose of entering the U.S. market for sensors and instruments and to offer customers an additional alternative to Heraeus.
The proposed settlement also requires Heraeus to waive noncompete provisions it had imposed on some former employees. The waiver of these provisions will enable Keystone to hire experienced individuals with expertise in this specialized business. By making experienced individuals available to be hired immediately, Heraeus’ agreement to waive these noncompete provisions will also enhance competition in the single-use sensors and instruments market by facilitating the entry or expansion of other new competitors into the market. Heraeus also is required to provide the department with advance notice of any future acquisition in the market for sensors and instruments in the United States that is not subject to the reporting requirements of the premerger notification law.
Heraeus Electro-Nite Co. LLC is a Delaware corporation with its headquarters in Langhorne, Pa.
The acquirer, Keystone Sensors LLC, is a Delaware corporation headquartered in Cranberry Township, Pa. Its principal place of business will be located in Johnson City, Tenn.
The proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Maribeth Petrizzi, Chief, Litigation II Section, 450 Fifth Street, N.W., Suite 8700, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the proposed settlement upon finding that it is in the public interest.Former Bank Director Charged with Securities and Wire Fraud Captured Following ManhuntRead the Press Release
BROOKLYN, NY – Earlier today, Aubrey Lee Price was presented at the federal courthouse in Brunswick, Georgia, near where he was arrested. The defendant, who sent acquaintances a suicide note stating that he planned to kill himself by throwing himself off a high speed ferry boat in Florida, has been wanted since June 27, 2012, when the Honorable Viktor V. Pohorelsky, United States Magistrate Judge for the Eastern District of New York, issued a warrant for Price’s arrest based on a complaint filed by the United States Attorney for the Eastern District of New York. At the time, Price was charged with wire fraud in connection with his use of brokerage accounts in New York to misappropriate millions of dollars belonging to a bank in southern Georgia where Price was a director. A grand jury in Brooklyn later expanded the charges against Price to include securities fraud in connection with Price’s theft of funds from both the bank and other investors in investment funds controlled by Price. The defendant also faces a charge in the Southern District of Georgia.
The arrest was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
According to the indictment, Price managed investment funds PFG LLC (“PFG”) and the Montgomery Growth Fund (“Montgomery Growth”). Starting in or about June 2009, PFG raised approximately $40 million from approximately 115 investors from across the nation. Price unsuccessfully invested PFG funds in various equity securities, options, and real estate, including farms in South America. To cover up his losses, Price allegedly lied to his investors by posting fake account statements on a secure PFG web site that fraudulently reflected fictitious assets and fabricated investment returns.
The indictment further states that, starting in or about January 2011, Price became a director of Montgomery Bank & Trust (“MB&T”), a financial institution in Ailey, Georgia. After telling MB&T that he would invest the bank’s capital in U.S. Treasury securities, Price instead lost much of the bank’s money by investing in risky equity securities and options. Price also embezzled MB&T money to pay redemptions to some PFG investors. The indictment charges that Price covered up his embezzlement and losses of MB&T’s funds by giving the bank’s management fabricated documents falsely indicating that approximately $17 million was on deposit in the bank’s name at a large financial services firm in New York.
“Aubrey Lee price created a life and death out of whole cloth, telling hundreds of investors and a Georgia bank that their money was safe when he was flying high, and telling the world he was dead when his lies crashed down around him,” stated United States Attorney Lynch. “But Price proved as unsuccessful at faking his own death as he was at faking his victims’ investments. Every person who seeks to harm our financial markets through fraud should be on notice. With the help of our law enforcements partners, both federal and local, we will find you, and we will hold you accountable for your behavior in a court of law.” Ms. Lynch expressed her grateful appreciation to the Securities and Exchange Commission, Atlanta Regional Office, and the Lowndes County Georgia Sheriff’s Department for their cooperation and assistance in the investigation. She also thanked the Glynn County Georgia Sheriff’s Department, who arrested the defendant following a traffic stop.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys David C. Woll, Jr. and Brian Morris.
This prosecution was the result of efforts by President Barack Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants. For more information on the task force, visit http://www.StopFraud.gov.
The Defendant:
AUBREY LEE PRICE
Age: 47
Valdosta, Georgia
E.D.N.Y. Docket No. 13-CR-058
Essex County, N.J., Man Admits Role in “Double-Dipping” SchemeRead the Press Release
NEWARK, N.J. - An Essex County, N.J., man today admitted his role in defrauding Home Depot Inc. out of more than $470,000 through an elaborate “double-dipping” scheme that he committed at various Home Depot locations, including in New Jersey, U.S. Attorney Paul J. Fishman announced.
Daniel Chalet, 28, of Bloomfield, N.J., pleaded guilty before U.S. Magistrate Judge James B. Clark III to an information charging him with conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
From March 2009 through June 2012, Chalet and his conspirators routinely purchased various items from Home Depot locations in New Jersey, New York, Massachusetts, Delaware, Maryland, Connecticut and Pennsylvania. The conspirators would assemble two shopping carts containing identical items. They then purchased the items in one cart (Cart 1) and stashed the other cart in the store (Cart 2). They would typically purchase the items in Cart 1 using cash, fraudulently obtained Home Depot store credit, or some combination thereof. Chalet and his conspirators would then leave the store with the items in Cart 1, as well as the receipt for the purchase, leaving Cart 2 inside the store.
The conspirators would return to the store almost immediately with a receipt corresponding to the items in Cart 1 and retrieve Cart 2, which contained the identical set of items. Under the guise that they had forgotten to purchase an item, usually an inexpensive one, Chalet and his conspirators would return to the register with Cart 2, and purchase only the additional small item. They would present the receipt for the items from Cart 1 and deceive the cashier into believing that the items in Cart 2 had already been purchased.
Chalet and his conspirators would later go back to the same Home Depot store or travel to different Home Depot store locations to return the items. In some instances, they presented a receipt for the return, and in other instances, the defendants obtained a refund for store credit without presenting a receipt.
Chalet and his conspirators carried out the scheme hundreds of times at various Home Depot locations, fraudulently obtaining Home Depot store credit and refunds totaling at least $470,511.66.
The conspiracy count to which Chalet pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for April 15, 2014.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Lakshmi Srinivasan Herman of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
14-001
Defense counsel: Richard Roberts Esq., Newark
Chalet, Daniel Information
Defendants Plead Guilty in Large ATM Skimming OperationRead the Press Release
ATLANTA - Stoyno Filtshev, Plamen Atanasov, Nedyalko Palazov, and WB Wohrman have pleaded guilty in a case involving a scheme to steal the bank debit card numbers and passwords of over 4,700 individuals through the use of a skimming device the defendants connected to ATMs in the metro Atlanta area.
“Victims in this case were devastated to learn that merely by using an ATM, they had unwittingly handed over their debit card information to criminals who in turn used the information to drain their bank accounts,” said United States Attorney Sally Quillian Yates said. “The victims continue to suffer, from having to worry about what else may be done with their personal information to spending valuable time trying to clear their good names and credit. Identity theft takes many forms but always creates havoc in the lives of good people.”
“Technology has forever changed the way we do business. Unfortunately, some endeavor to use those changes to their benefit and others’ detriment,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office. “The Secret Service, in conjunction with our law enforcement partners, will continue to actively investigate and arrest those that commit crimes that prey on unsuspecting victims.”
According to United States Attorney Yates, the charges and other information presented in court: From about August 2011 through January 2013, Filtshev, Wohrman, Atanasov, and Palazov, working with co-defendant Tsvetil Iliev, used illegal skimming devices to steal over $380,000 from bank customers by installing the devices at Bank of America, JP Morgan Chase, and Wells Fargo automated teller machines (ATMs) in the metro Atlanta area. When a customer used the ATM with a skimming device installed, the device would electronically record the customer’s debit card number and a small camera in the device would video record the ATM keyboard as the customer entered his or her password.
The defendants then downloaded the information from the device to a computer. Using a magnetic stripe card reader/writer, they re-encoded gift cards with the stolen account information. They then used the altered gift cards at ATMs to withdraw money from the victims’ bank accounts.
Filtshev, 53, of Atlanta, Ga., and Atanasov, 30, of Sandy Springs, Ga., were arrested in Kennesaw, Ga., in June 2012 using re-encoded gift cards to take money from customers’ accounts at a Bank of America ATM. On them and in their car, which was registered to Filtshev, they had 279 re-encoded cards. Each re-encoded card had the customer’s ATM password written on the front.
On September 27, 2012, Wohrman, 36, of Tennessee, was arrested by the Gwinnett County Police Department pursuant to a federal arrest warrant for violating the terms of his federal supervised release. A search of Wohrman’s vehicle at that time revealed, among other items, a skimming device and several financial transaction cards.
On December 28, 2012, Bulgarian Customs officials notified the Secret Service in Atlanta that they had identified a DHL parcel being shipped to the United States as containing illegal skimming devices. The Secret Service obtained a federal search warrant for the package, found three skimming devices, and then disabled them before returning them to the mail stream. The package went to a UPS Store in Atlanta, Ga. Wohrman and other co-conspirators were listed as authorized recipients of mail to the UPS box. On January 8, 2013, Palazov, 28, of Atlanta, Ga., came to the UPS Store and retrieved the package.
Filtshev, Wohrman, Atanasov, Iliev, and Palazov were indicted by a federal grand jury on January 22, 2013, for conspiracy, access device fraud, and aggravated identity theft. Palazov and Iliev fled Atlanta before they were arrested. Palazov was arrested during a stopover in Munich, Germany after he boarded a plane in Mexico headed for Bulgaria. Palazov was extradited from Germany and is now in custody in Lovejoy, Ga. Iliev, 34, of Atlanta, Ga., remains a fugitive.
The investigation has identified over 4,700 bank customers whose account information was stolen by the five defendants. The defendants withdrew over $380,000 from these customers’ accounts.
On December 18, 2013, Wohrman pleaded guilty to one count each of conspiracy, access device fraud, and aggravated identity theft. On December 27, 2013, Filtshev and Atanasov pleaded guilty to one count each of conspiracy, access device fraud, and aggravated identity theft. Palazov pleaded guilty on January 2, 2013, to one count of conspiracy, access device fraud, and aggravated identity theft. The conspiracy charge carries a maximum sentence of five years in prison, the access device fraud count carries a maximum sentence of 15 years in prison, and the aggravated identity theft charge carries a mandatory two-year sentence. The two-year sentence for aggravated identity theft must run consecutively to any other sentence imposed. Each count also carries a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
In a related case, on November 19, 2013, a federal grand jury returned an indictment against Zira M. Bailey, 26, of Picayune, Miss., Michael J. Ellis, 35, of Atlanta, Ga., and Bryan S. Kees, 36, of Savannah, Ga., for participating in an ATM skimming operation and targeting SunTrust ATMs in metro Atlanta, Savannah, Ga., and Florida. Bailey and Ellis received mail at the UPS Store box where the skimming equipment arrived from Bulgaria. The investigation also determined that these three defendants assisted Palazov and Iliev in fleeing the United States after their indictment. An additional 500 victims are linked to Bailey, Ellis, and Kees from the SunTrust ATMs.
Sentencing for Filtshev, Atanasov, Palazov, and Wohrman is scheduled for March 26, 2014, at 2 p.m. before United States District Judge Orinda D. Evans.
This case is being investigated by Special Agents of the United States Secret Service.Assistant United States Attorneys Stephen H. McClain and Christopher C. Bly are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Clinton Drug Dealer Exiled to over 29 Years in PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Alexander Williams, Jr. sentenced Shaun Orlando Grier, age 46, of Clinton, Maryland, today to 350 months in prison followed by eight years of supervised release for possession with intent to distribute phencyclidine, commonly referred to as PCP; possession with intent to distribute cocaine base, commonly referred to as crack; being a felon in possession of a firearm; and possession of a firearm in furtherance of a drug trafficking offense. Judge Williams enhanced Grier’s sentence upon finding that he is an armed career criminal based on five previous drug, gun and violent crime offenses.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; Chief Mark A. Magaw of the Prince George's County Police Department; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Prince George's County State’s Attorney Angela D. Alsobrooks.
According to evidence presented at his six day trial, on February 27, 2013, after a K-9 dog alerted to a package Grier sent and a search warrant was obtained, U.S. Postal Inspection Service opened the package and found $30,000. A search warrant was obtained for Grier’s residence and agents seized 21.6 grams of PCP; 54.6 grams of crack; numerous Ziploc bags containing a total of .78 grams of cocaine hydrochloride, 0.76 grams of heroin, 0.43 grams of crack, 1.44 grams of heroin and marijuana; drug paraphernalia; a loaded pistol; and a box of bullets. From Grier’s car, agents also seized a back pack containing a bottle which contained 24.2 grams of PCP, a plastic bag containing approximately 164.2 grams of marijuana, a scale, a revolver and a loaded pistol.
United States Attorney Rod J. Rosenstein commended the DEA, U.S. Postal Inspection Service - Washington Division, the Prince George's County Police Department, IRS- Criminal Investigation and Prince George's County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Deborah A. Johnston and Thomas P. Windom, who prosecuted the case.
Child Sex Trafficker Sentenced to over 21 Years in PrisonRead the Press Release
Prostituted a 13 Year Old Girl and Gave Her Alcohol and Drugs
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Daniel Burton, a/k/a Snoop, age 30, of Capitol Heights, Maryland today to 262 months in prison followed by lifetime supervised release. Judge Chasanow ordered that upon his release from prison, Burton must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief Mark A. Magaw of the Prince George’s County Police Department.
“This is an egregious case because the ‘prostitute’ was a 13- year old child,” said U.S. Attorney Rod J. Rosenstein. “The lengthy sentence should send a powerful message that sex trafficking of children will not be tolerated in Maryland.”
According to his plea agreement, in March 2008, Burton asked a 13 year old girl walking near her home for her phone number, which she provided. Burton began calling the girl and eventually recruited her to work as a prostitute. Burton drove her to hotels, photographed her in lingerie, and advertised her on Craigslist for sexual services. The girl had sex with many clients that responded to the ads and Burton kept all the money she earned. Burton provided the girl with alcohol, marijuana and ecstasy.
On April 1, 2008, police responded to a complaint at a hotel where they found Burton and the girl in a room. Burton claimed the girl was a relative and police arranged for the girl to return home. Burton subsequently picked the girl up at her home and continued prostituting her.
On April 8, 2008, law enforcement saw a Craigslist ad for the girl’s sexual services and arranged a “date.” Law enforcement arrived at the hotel and arrested Burton who was sitting outside.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Rod J. Rosenstein commended the FBI and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas of the U.S. Justice Department, Criminal Division, Child Exploitation and Obscenity Section, and Assistant U.S. Attorney Kristi N. O’Malley who prosecuted the case.
Beckley Man Enters Federal Guilty Plea in Connection with Arson SchemeRead the Press Release
Defendant Antonio Wade set fire to apartment stairway; the residence was occupied by his acquaintance and a child
CHARLESTON, W.Va. – A 29-year-old man who in August 2013 deliberately set fire to clothing located beneath the entrance of a Charleston apartment where his acquaintance and a child resided at the time pleaded guilty to a federal arson charge, U.S. Attorney Booth Goodwin announced today. Antonio LeJune Wade, of Beckley, pleaded guilty today in front of United States District Court Judge John T. Copenhaver, Jr. in Charleston. Wade was charged in a one-count indictment in October.
On August 25, 2013, Wade intentionally set fire to clothing that he placed beneath a wooden staircase, causing the steps connected to a 6th Avenue apartment in Charleston to catch fire. The staircase served as the sole entrance and exit to the residence. Wade told police that he knew the apartment was occupied by his acquaintance and a toddler at the time he set the blaze.
Members from the Charleston Police Department and the Charleston Fire Department responded to the scene and contained the fire. The individuals who were inside of the apartment at the time were uninjured.
Wade faces a mandatory minimum of five years in prison when he is sentenced on April 2, 2014.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Charleston Police Department conducted the investigation. Assistant United States Attorney Blaire Malkin is in charge of the prosecution.
Atlanta Man Charged in Nationwide Identity Theft SchemeRead the Press Release
Shabazz Deceived Prisoners into Applying for “Prisoner Benefits” and Used Their Information to Seek Over $12 Million in False Tax Refunds
ATLANTA - Qadir Shabazz had his initial appearance today on federal charges of conspiracy to defraud the Internal Revenue Service, wire fraud, aggravated identity theft, and theft of government funds.
United States Attorney Sally Quillian Yates said, “This defendant is charged with concocting a scheme that used the identities of inmates in prisons across the country to file fraudulent tax returns that in total sought millions of dollars in tax refunds. With the tax filing season rapidly approaching, identity thieves like him should be aware that there are severe consequences for those who seek to steal government funds using stolen identities.”
“Individuals who commit refund fraud and identity theft of this magnitude will be prosecuted to the fullest extent of the law,” stated Veronica F. Hyman-Pillot, IRS Special Agent in Charge of the Atlanta Field Office. “We, along with our law enforcement partners and the United States Attorney’s Office, will continue to do our part in protecting the sanctity and integrity of the tax system and those individuals whose identities were stolen.”
“The U.S. Postal Inspection Service is committed to bringing to justice those who use the U.S. mail to commit identity theft and defraud the government of money that rightfully belongs to taxpayers,” said George Frazier, Assistant Postal Inspector in Charge of the Atlanta Field Office.
According to United States Attorney Yates, the charges, and other information presented in court: From November 2009 through May 2012, Shabazz orchestrated a nationwide scheme to file thousands of false and fraudulent federal income tax returns that claimed millions of dollars in fraudulent refunds. Shabazz, and others conspiring with him, operated a business named “Indigent Inmate” in the state of Georgia. Working through Indigent Inmate, Shabazz distributed literature and applications to prisoners located in incarceration facilities throughout the United States. Prisoners were told that if they submitted their names, social security numbers, and dates of birth to Indigent Inmate they would be eligible for prisoner benefits. As a result, prisoners submitted over 13,000 applications to Indigent Inmate seeking these benefits.
Shabazz, and others working with him, used the prisoners’ personal information to file over 2,000 false federal income tax returns that claimed over $12,000,000 in fraudulent refunds. These tax returns listed addresses in Georgia, Pennsylvania, and Tennessee that were under the control of Shabazz and others working with him.
Shabazz, 38, of Atlanta, Georgia, was indicted by a federal grand jury on November 5, 2013. The indictment charges one count of conspiracy to defraud the IRS, 15 counts of wire fraud, 15 counts of aggravated identity theft, and two counts of theft of government funds. Each wire fraud count carries a maximum sentence of 20 years in prison, each theft of government funds count carries a maximum sentence of 10 years in prison, and the conspiracy count carries a maximum sentence of 5 years of incarceration. The aggravated identity theft charges carry at least one mandatory two-year consecutive sentence to any other sentence imposed. Each count also carries a fine of up to $250,000. The United States is also seeking the forfeiture of all funds derived from or involved in this scheme.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Internal Revenue Service Criminal Investigation, United States Postal Inspection Service, and Georgia Department of Revenue, Office of Special Investigations. The Office of the Attorney General for the Commonwealth of Pennsylvania and the Office of Pennsylvania Department of Revenue, Bureau of Criminal Tax Investigations uncovered this scheme and launched a separate state investigation.
Assistant United States Attorneys Thomas J. Krepp and Mary L. Webb are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
2013 WAY Inauguration at John F. Kennedy High SchoolRead the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands, was the guest speaker on October 12, 2013 at the Inauguration and Swearing-in Ceremony of the “We Are You” (WAY) Officers of John F. Kennedy High School.
U.S. Attorney Limtiaco congratulated the newly admitted officers and acknowledged their families and friends who continue to support them as they pursue their educational, professional and personal aspirations and, as they embark on their journey as WAY officers to represent and serve their fellow students, and collaborate with the administration, faculty and Parent Teacher School Association of John F. Kennedy High School.
U.S. Attorney Limtiaco encouraged the students to realize that “there is a larger value to learn about the world we live in – that it is a world full of different cultures, customs, economies, political and legal systems. And, most of all, a world of different, unique people all trying to carve out their own independent lives in their own unique societies. How people interact and relate to each other matters.”
She shared, “Each one of you is embarking on your next journey as a leader and representative of your fellow students – to serve and engage your fellow students in the dialogue of issues that affect and have an impact – on each one of you as students, on your school, on your community, on humanity and on the world.” She quoted President John F. Kennedy, “Leadership and learning are indispensable to each other.” “Change is the law of life and those who look only to the past or the present are certain to miss the future.”
U.S. Attorney Limtiaco encouraged the WAY officers to “represent, serve and lead their follow students with integrity, dignity, and respect. Stay grounded – listen and learn from those you represent – your fellow students; and from each other. Ask yourselves what you and WAY can do to make a positive impact – to make a positive change – in the lives of your fellow students, our community and the world; that will be your legacy and make a difference for future generations of students at John F. Kennedy High School and our island.”
Photo of U.S. Attorney Alicia Limtiaco, together with one of the newly admitted officers, Pim Limtiaco is attached.
Wednesday 1 January 2014
Tax Preparers Indicted for Stolen Identity Refund FraudRead the Press Release
January 1, 2014Montgomery, Alabama - Two women from Phenix City, Alabama, were indicted yesterday for their involvement in a stolen identity refund fraud scheme (SIRF), U.S. Attorney George L. Beck Jr. for the Middle District of Alabama, and Acting Deputy Assistant Attorney General Larry J. Wszalek for the Justice Department's Tax Division announced today following the unsealing of the indictment.
Teresa Ann Floyd (52) and her daughter, Lasondra Miles Davis (37), were charged with conspiracy to submit false claims, wire fraud, and aggravated identity theft. Floyd was also charged with theft of public money.
According to the superseding indictment, Floyd and Davis operated several tax preparation businesses in the Phenix City area, including T & L Tax Service and T & C Used Cars & Tax Service. Floyd and Davis obtained stolen identities and used those identities to file more than 900 federal income tax returns that claimed more than $2.5 million in tax refunds. To obtain the money from the scheme, the defendants applied for bank products from various financial institutions, which provided to the defendants blank check stock. The bank products allow a tax preparer to deduct their fees directly from a tax refund and then print out the remainder of the refund as a check. Floyd and Davis created fictitious identification documents and bills to provide to the financial institutions in an attempt to verify that the returns were filed in the names of legitimate customers. The defendants then had those fraudulent checks cashed at several businesses in Alabama and Georgia. Floyd also deposited fraudulent income tax refund checks into her bank account.
An indictment merely alleges that crimes have been committed and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, the defendants face a statutory maximum sentence of 10 years in prison for the conspiracy to file false claims count, a statutory maximum sentence of 20 years in prison for each wire fraud count, a statutory maximum sentence of 10 years in prison for each theft of public money count, and a mandatory sentence of two years in prison for the aggravated identity theft counts. The defendants are also subject to fines, forfeiture and mandatory restitution if convicted.
The case was investigated by special agents of the Internal Revenue Service - Criminal Investigation. Trial Attorney Michael Boteler of the Tax Division and Assistant U.S. Attorney Todd Brown for the Middle District of Alabama 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) 223-7617Odebolt Man Sentenced for Methamphetamine ConspiracyRead the Press Release
Text of the pA man who conspired to distribute methamphetamine was sentenced on December 19, 2013, to more than twelve years in federal prison.
Kevin Schimerowski, 46, from Odebolt, Iowa, received the prison term after an August 28, 2013, guilty plea to conspiring to distribute methamphetamine.
At the plea hearing, Schimerowski admitted his involvement in a conspiracy from about 2012 through April 2013 that distributed more than five grams of actual (pure) methamphetamine. On three occasions in February 2013, Schimerowski distributed over five grams actual (pure) methamphetamine to individuals cooperating with law enforcement.
Schimerowski was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Schimerowski was sentenced to 144 months’ imprisonment. A special assessment of $100 was imposed. He must also serve an eight-year term of supervised release after the prison term. There is no parole in the federal system.
Schimerowski must also serve an additional 6 months’ imprisonment for revocation proceedings on a prior federal conviction of conspiracy to distribute at least 50 grams of methamphetamine.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Iowa Division of Narcotics Enforcement, Shelby County Sheriff’s Office, Denison Police Department, Harrison County Sheriff’s Office, Sac County Sheriff’s Office, and the Iowa Division of Criminalistics Laboratory.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-4038.
Man Pleads Guilty for Involvement in Identity Theft SchemeRead the Press Release
January 1, 2014Montgomery, Alabama - Robert Bernard Walker (33), of Columbus, Georgia, pleaded guilty yesterday to one count of conspiracy to file false claims and one count of aggravated identity theft for his involvement in a stolen identity tax refund fraud (SIRF) scheme, announced U.S. Attorney George L. Beck Jr. for the Middle District of Alabama, and Acting Deputy Assistant Attorney General Larry J. Wszalek for the Justice Department's Tax Division.
According to the court documents, between January 2011 and December 2013, Walker and his co-conspirators filed false tax returns using stolen identities. One co-conspirator obtained stolen identities from various sources, including the identities of employees from a Columbus, Georgia, company. In order to file the false tax returns, Walker and his co-conspirators obtained Electronic Filing Identification Numbers (EFIN) in the names of several sham tax businesses. The co-conspirators applied for bank products from various financial institutions, which mailed blank check stock and prepaid debit cards. The anticipated tax refunds were directed to financial institutions, which in turn issued the refunds using checks or prepaid debit cards. Walker and his co-conspirators cashed the fraudulent checks at several businesses located in Alabama. Walker also deposited fraudulent refund checks into a bank account he controlled.
Walker’s sentencing is scheduled for Feb. 5, 2015 where he will face a maximum sentence of 10 years in prison for the conspiracy to file false claims count, and a mandatory sentence of two years in prison for the aggravated identity theft counts. Walker is also subject to fines, forfeiture, and restitution.
The case was investigated by special agents of the Internal Revenue Service - Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Postal Service’s Office of the Inspector General. Trial Attorneys Michael Boteler, Charles M. Edgar Jr. and Gregory Bailey of the Tax Division are prosecuting the case with the assistance from Assistant U.S. Attorney Todd Brown for the Middle District of Alabama.
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) 223-7617Former Woodruff Arts Center Employee Sentenced for EmbezzlementRead the Press Release
ATLANTA - Ralph Clark has been sentenced for embezzling more than $1.1 million from the Woodruff Arts Center while serving as the Center’s Director of Facilities.
“When the defendant embezzled over $1 million from the Woodruff Arts Center, he not only stole from the Arts Center, but the entire community served by the Center,” said United States Attorney Sally Quillian Yates. “His greed and betrayal has fairly landed him in prison.”Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s sentencing brings to close an unfortunate tale of betrayal and greed. This case, in addition, illustrates the FBI’s responsiveness to assist those non-profit organizations, such as the Woodruff Arts Center, when needed.”
According to United States Attorney Sally Quillian Yates, the charges and other information presented in court: In June 2006, Clark was promoted to Director of Facilities at the Woodruff Arts Center. He had been acting in this capacity for several months before he was promoted. His duties included ensuring that the Arts Center was properly maintained. As Director of Facilities, he was authorized to approve vendor contracts up to $50,000. While carrying out these duties between November 2005 and October 2012, Clark embezzled more than $1.1 million from the Woodruff Arts Center.
Clark, 42, of Ellenwood, Ga., embezzled the money by submitting invoices for bogus expenses to Woodruff Arts Center’s accounts payable department. The bogus invoices included invoices from his wife’s business - Lowe’s Services - which was an apartment cleaning business set up by his wife in 2003. The bogus Lowe’s Services invoices were for goods and services that were never provided to the Woodruff Arts Center, or were performed by Clark himself. After the accounts payable department received an invoice, it generated checks from Woodruff’s checking account. Clark would then pick the checks up in person, and deposit them into accounts on which he had signatory authority.
Clark was sentenced by United States District Judge Julie E. Carnes to two years, six months in prison to be followed by three years of supervised release, and was ordered to pay approximately $1 million in restitution. Clark was convicted of these charges on April 23, 2013, upon his plea of guilty.This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Bernita B. Malloy prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Arizona Systems Administrator Pleads Guilty to Sabotaging Ex-Employer’s Cloud-Computing ServerRead the Press Release
ALEXANDRIA, Va. – Jonathan Hartwell Wolberg, 31, of Tucson, Az., pleaded guilty today to intentionally causing damage to a protected computer.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by United States District Judge Liam O’Grady.
Wolberg was indicted on August 22, 2013 by a federal grand jury on charges related to computer hacking. Wolberg faces a maximum penalty of 10 years’ imprisonment when he is sentenced on April 11, 2013.
According to the indictment and a statement of facts filed with the plea agreement, Wolberg formerly worked as a systems administrator for a company identified as “Company A,” a cloud-computing services provider headquartered in the Eastern District of Virginia. After resigning, Wolberg continued to enter the networks of Company A for the purpose of damaging its servers, its reputation, and its business. From about March 16, 2012 through about August 1, 2012, Wolberg encouraged Company A’s customers to leave and secretly logged into Company A’s server to issue a shutdown command to a key data server. As a result, he shut down Company A’s customer networks, making key information – including that of hospitals responsible for surgery and other urgent patient care – unavailable for at least several hours. Wolberg caused hundreds of thousands of dollars of damage as a result.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Alexander T.H. Nguyen and Trial Attorney Richard D. Green, on detail from the Justice Department’s Computer Crime and Intellectual Property Section, are 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.Alabama Woman Convicted of Stolen Identity Refund FraudRead the Press Release
January 1, 2014Montgomery, Alabama - A jury found a Dothan, Alabama woman guilty of conspiring to defraud the government through the filing of false tax returns, Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama announced today.
Nina Macena, 32, was also found guilty of three counts of wire fraud and three counts of aggravated identity theft.
According to evidence from the trial, Macena provided stolen identities to Ivory Bolen, also of Dothan, who used the identities to file false tax returns that fraudulently requested refunds from the government. Bolen would attempt to have the refunds deposited onto prepaid debit cards, which would be mailed to addresses controlled by Bolen and Macena. Macena obtained the identities from Roderick Neal, a former bail bondsman in Dothan, who had access to the personal information of individuals who had been detained at the Dothan City Jail. Both Bolen and Neal previously pleaded guilty to their involvement in the scheme.
The evidence from the trial also showed that Bolen, acting at the direction of law enforcement, made several phone calls to Macena asking her to obtain more identities. Macena agreed to do so and said she would attempt to get more identities from a “friend” at “the bonding company.” Macena also stated in the calls that she had stolen identities in a storage unit. The next day federal agents executed a search warrant at Macena’s storage unit and seized stolen identities and prepaid debit cards in the names of victims of the scheme. Altogether, Bolen filed tax returns claiming more than $300,000 in refunds using the stolen identities provided by Macena. The Internal Revenue Service (IRS), however, successfully stopped a number of the fraudulent returns.
Macena testified in her own defense at trial and admitted that she had obtained information from Neal for Bolen, but claimed that she was unaware of the nature of the information. She also testified that she stored items for Bolen in her storage unit, but that she was unaware of what she was storing.
Macena was ultimately convicted by the jury on all counts in the indictment. At sentencing Oct. 23, she faces a statutory maximum sentence of 10 years in prison for the conspiracy count, a statutory maximum sentence of 20 years in prison for the three wire fraud convictions and a mandatory sentence of two years in prison for the aggravated identity theft convictions. Her actual sentence, however, will be decided by a federal judge after considering the federal sentencing guidelines and statutory sentencing factors.
This case was investigated by special agents of the IRS - Criminal Investigation. Trial Attorneys Jason Poole and Charles Edgar of the Tax Division prosecuted the case with the assistance of the U.S. Attorney’s Office for the Middle District of Alabama.
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) 223-7617
Tuesday 31 December 2013
White County Man Arrested on Child Exploitation ChargesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on December 28, 2013, Gary Richard Walters, 39, of Norris City, Illinois, was charged by the United States Attorney in a two-count Criminal Complaint, filed in United States District Court, with child exploitation.
Count 1 of the Complaint charged Walters with Production of Child Pornography. Count 1 charged that on or about July 6, 2013, in White County, Walters did knowingly employ, use, persuade, induce, entice, and coerce a minor to engage in sexually explicit conduct for the purpose of producing any visual depiction of such conduct, and the visual depiction was transported or transmitted using any means and facility of interstate.
Count 2 of the Complaint charged Walters with Distribution of Child Pornography. Count 2 charged that on or about July 6, 2013, in White County, Walters did knowingly distribute child pornography that has been shipped or transported in or affecting interstate commerce by any means, including by computer, to-wit: a video file of an adult male performing oral sex on a prepubescent male's penis.
Walters had an initial appearance in United States District Court in Benton, Illinois, on December 30, 2013. The Magistrate Judge ordered that Walters be held in custody pending further proceedings in this matter.
A Criminal Complaint is simply a charge filed against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt.
If convicted of Count 1, Walters faces from 15 to 30 years in prison, up to a $250,000 fine, and up to lifetime supervised release. If convicted of Count 2, Walters faces from 5to 20 years in prison, up to a $250,000 fine, and up to lifetime supervised release.
The investigation in this case was conducted by the Federal Bureau of Investigation. This case is part of Project Safe Childhood, in which the United States Attorney=s Office, in conjunction with federal and state law enforcement authorities, is actively investigating and prosecuting individuals who are involved in the exploitation of children. The case is being prosecuted by Assistant United States Attorney George A. Norwood.
Pierre Man Indicted on Controlled Substance ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pierre, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance Near a School and Distribution of a Controlled Substance Near a School.
Juan Howell, age 29, was indicted on December 10, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 20, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $500,000 fine, 4 years of supervised release, and $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that in 2012, Howell conspired to and did distribute marijuana, a Schedule I controlled substance, within 1,000 feet of an elementary school.
The charges are merely an accusation and Howell is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Howell was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
North Dakota Man Sentenced for Possession of A Firearm by A Prohibited PersonRead the Press Release
United States Attorney Brendan V. Johnson announced that a North Dakota man convicted of Possession of a Firearm by a Prohibited Person was sentenced on December 30, 2013, by U.S. District Judge Charles B. Kornmann.
Virgil Running Bear, Jr., age 40, was sentenced to 57 months of imprisonment, 3 years of Supervised Release, and a $100 special assessment to the Federal Crime Victims Fund.
Running Bear was indicted by a federal grand jury on May 15, 2013. He pled guilty on September 23, 2013.
The conviction stems from a December 10, 2012, incident wherein the Edmunds County Sheriff’s Office was called to investigate a report of a vehicle in a ditch near Ipswich, South Dakota. When a deputy sheriff reviewed Running Bear’s driver’s license and registration, he learned that Running Bear had a revoked license and was on federal probation. After receiving permission, the deputy searched Running Bear’s vehicle and found three firearms and assorted ammunition, which he was prohibited from possessing. The weapons had been transported through interstate commerce and functioned properly.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Edmunds County Sheriff’s Office. Assistant U.S. Attorney Kathryn Rich and First Assistant U.S. Attorney Randolph Seiler prosecuted the case.
Running Bear was immediately turned over to the custody of the U.S. Marshals Service.
Mission Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Eugene Featherman, age 25, was indicted by a federal grand jury on September 17, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 24, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, a term of supervised release of at least 5 years up to life, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The indictment alleges that on or about between June 13, 2013, and September 17, 2013, Featherman, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under federal law, knowingly failed to register and update his registration.
The charge is merely an accusation and Featherman is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
Featherman was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Missing Georgia Bank Director, Accused of Embezzling More Than $20 Million, Arrested in BrunswickRead the Press Release
SAVANNAH, GA: AUBREY LEE PRICE, 47, originally from Lyons, Georgia, who was indicted in July 2012 by a federal grand jury sitting in the Southern District of Georgia on a charge that he defrauded the Montgomery Bank & Trust, Ailey, Georgia, of over $21 million, was arrested today by members of the Glynn County Sheriff’s Department conducting a random vehicle and traffic stop.
According to the allegations in the Indictment against PRICE, in 2010, an investment group controlled by PRICE invested approximately $10 million in the failing Montgomery Bank & Trust (“MB&T”). PRICE was then made a director of MB&T and put in charge of investing the bank’s capital. Over the next eighteen months, PRICE stole, misappropriated and embezzled over $21 million from MB&T. To cover up his fraud, PRICE provided MB&T officials with bogus account statements which falsely indicated the bank’s capital was safely held in an account at a financial services firm.
Before today’s arrest, PRICE was last seen in June 2012, boarding a ferry terminal in Key West, Florida, bound for Fort Myers, Florida. PRICE disappeared after writing a letter to acquaintances and regulators that he had lost a large amount of money, and that he planned to take his own life.
The FBI has been actively searching for PRICE since the date of his disappearance. PRICE was arrested by deputies from the Glynn County Sheriff’s Department on Interstate 95 in Brunswick, Georgia, for a vehicle and traffic violation. When deputies learned of PRICE’s true identity, he was taken into custody.
PRICE will make his initial appearance on the federal arrest warrants on January 2, 2013, at 10:00 a.m., at the federal courthouse in Brunswick, Georgia.
In the Southern District of Georgia, PRICE is charged with one count of bank fraud, which carries a maximum sentence of 30 years in prison and a fine of up to $1,000,000. PRICE faces additional charges in New York. U. S. Attorney Edward Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The defendant is entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.The indictment of PRICE arises out of an ongoing and joint investigation by FDIC-OIG Special Agent John Crawford; Federal Reserve Board OIG Special Agent Amy Whitcomb; and, FBI Special Agent Ed Sutcliff. First Assistant United States Attorney James Durham and Assistant United States Attorney Brian Rafferty are prosecuting the case for the United States.
Marion Man Sentenced in Methamphetamine Conspiracy CaseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Marion, South Dakota, man convicted of conspiracy to distribute 500 grams or more of methamphetamine was sentenced on December 30, 2013, by U.S. District Court Judge Karen E. Schreier.
Larry Wayne Alver, age 37, was sentenced to 120 months in custody to be followed by 5 years of supervised release. He was also ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Alver was indicted by a federal grand jury on May 8, 2013, of Conspiracy to Distribute a Controlled Substance. He pled guilty on September 9, 2013.
During his involvement in the conspiracy, Alver purchased methamphetamine from a co-conspirator and distributed it. He also facilitated the distribution of methamphetamine by introducing his source of supply to another dealer.
This case was investigated by the Sioux Falls Police Department, the South Dakota Division of Criminal Investigation, and the U.S. Drug Enforcement Administration. Assistant U.S. Attorney John E. Haak prosecuted the case.
Alver was immediately turned over to the custody of the U.S. Marshals Service.
Lower Brule Man Sentenced for Possession of A Controlled Substance AnalogueRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man convicted of Possession of a Controlled Substance Analogue was sentenced on December 23, 2013, by U.S. Magistrate Judge Mark A. Moreno.
Joshua Brouse, age 30, was sentenced to 4 months in custody, 1 year of Supervised Release, a $1,000 fine, and a $25 special assessment to the Federal Crime Victims Fund.
Brouse was indicted by a federal grand jury on May 15, 2013. He pled guilty on November 26, 2013.
On February 22, 2013, a package addressed to Brouse was delivered by FedEx to the Lower Brule Tribal Building. Brouse attempted to retrieve the package from law enforcement by personally coming to the tribal building and by sending others to retrieve the package. After obtaining a search warrant, law enforcement discovered the package contained 24 sealed plastic bottles containing approximately 4 grams each of XLR-11. XLR-11 is a Schedule I controlled substance analogue. Brouse knowingly purchased and attempted to possess the XLR-11 substance.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Brouse is to self-report to the custody of the U.S. Marshals Service by noon on December 30, 2013.
Irene Man Sentenced in Methamphetamine Distribution ConspiracyRead the Press Release
United States Attorney Brendan V. Johnson announced that an Irene, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on December 23, 2013, by U.S. District Judge Karen E. Schreier.
Zurcher was immediately turned over to the custody of the U.S. Marshals Service.
Jeremy Eric Zurcher, age 24, was sentenced to 168 months in custody to be followed by 5 years of supervised release.
Zurcher was indicted by a federal grand jury on July 9, 2013, for conspiracy to distribute 500 grams or more of a mixture or substance containing methamphetamine. He pled guilty on October 4, 2013.
As his part in the conspiracy, Zurcher purchased over 500 grams of methamphetamine and distributed it to customers in Sioux Falls.
This case was investigated by the Sioux Falls Police Department, the Nebraska State Patrol, and the U.S. Drug Enforcement Administration. Assistant U.S. Attorney John E. Haak prosecuted the case.
Colorado Health Care Organization and One of Its Montana Hospitals to Pay $3.85 Million for <br /> Allegedly Providing Financial Benefits to Referring Physicians and Physician GroupsRead the Press Release
St. James Healthcare (St. James), a hospital located in Butte, Mont., and its parent company, Sisters of Charity of Leavenworth Health System (Sisters of Charity), a health care organization based in Denver, Colo., have agreed to pay $3.85 million to resolve allegations that they violated the Anti-Kickback Statute, the Stark Law and the False Claims Act by improperly providing financial benefits to physicians and physician groups that made referrals to the hospital, the Justice Department announced today.
The Anti-Kickback Statute prohibits the provision of remuneration with the intent to induce referrals of government health care program business. The Stark Law restricts financial relationships that hospitals may enter into with physicians who refer patients to them. Federal law prohibits payment by federal health care programs of medical claims that result from arrangements that violate the Anti-Kickback Statute or the Stark Law.
“Improper financial arrangements between hospitals and physicians not only undermine the integrity of the decisions that doctors make, they raise the cost of health care for all of us,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “The department has longstanding concerns about such conduct and is committed to working with health care providers that come forward to disclose their misconduct.”The settlement announced today resolves allegations that St. James and Sisters of Charity provided various improper financial incentives to physicians and physician groups that were involved in a joint venture with St. James to own and operate a medical office building on the St. James campus. These incentives included a payment to the joint venture that increased the share values for the physicians and physician groups in the joint venture and resulted in below fair market value lease rates for the physicians renting space in the medical office building. Additional incentives provided by St. James and Sisters of Charity included below fair market value lease rates for the land upon which the medical office building was constructed and other below fair market value arrangements related to shared facilities, use and maintenance. These issues were disclosed by St. James and Sisters of Charity to the government.
“This matter is of great significance to Montanans because it helps ensure federal health care programs deliver services in a cost-effective and efficient manner,” said U.S. Attorney for the District of Montana Michael W. Cotter. “We are encouraged that hospitals like St. James Healthcare are taking these issues seriously by reviewing their operations and making disclosures to the government where necessary.”
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused on efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $17 billion through False Claims Act cases, with more than $12.2 billion of that amount recovered in cases involving fraud against federal health care programs.
This case was handled by the U.S. Attorney’s Office for the District of Montana, the Department of Justice Civil Division, Commercial Litigation Branch and the Department of Health and Human Services Office of Inspector General. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Monday 30 December 2013
United States Attorney's Office Recovers $94,000,000 in Fiscal Year 2013 - A Record for this DistrictRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that the Western District of New York Office secured the highest amount of money for a given year in the Office’s history. Specifically, in Fiscal Year 2013, the Office recovered $94,220,047 as a result of wide-ranging efforts in criminal, civil and forfeiture cases. This money was used to repay victims of crime, provided as aid to law enforcement agencies, and in largest part, provided to taxpayers as a result of being transmitted to the United States Treasury.
In making the historic announcement, U.S. Attorney Hochul praised the hard work and dedication of Office attorneys and support staff that sought not only to put convicted defendants in jail, but took the profit out of crime in a more literal sense. “This Office strives mightily to protect the public from those who would cause it harm. From violent gang members to child predators, cyber criminals, and major fraudsters, we seek to ensure that the worst of the worst are identified and prosecuted to the fullest extent of the law. But our Office also protects taxpayers. By using civil law and forfeiture, we recover money that helps repay victims of crime, aids local law enforcement, and fills the American Treasury. In other words, we don’t just take the profit out of crime, we use it for the public good.”
U.S. Attorney Hochul stated that in order to put the $94 million recovered by his Office into proper perspective for the public, the recovered money represents more than nine times the amount of money it took to operate the entire United States Attorney’s Office for the year. “Because our budget is approximately $10 million,” said Hochul, “the recovered money in reality means taxpayers spent nothing for the protection and safety provided by this Office, and still also obtained an additional $84 million in money it did not anticipate receiving through other means.”
As for how the record recoveries came about, the Office collected $75,146,101 in criminal and civil actions. Criminal actions, which include fines and restitution, totaled $20,142,677.26, $20,004,017 of which was returned to victims of crime. The Office also collected $55,003,424 in civil actions, which include proceedings involving health care fraud, government fraud, foreclosures and more.
In addition, the Office collected $19,073,946 in criminal and civil forfeitures. Forfeitures generally involve proceeds of crime, as well as property used to commit crime. Of that amount, $3,481,607 was shared with state and local law enforcement partners who work with the U.S. Attorney’s Office and the Department of Justice.Hochul also stated that in the four years of the current administration, the amount of money recovered by the Office exceeded $208,900,000. This is a result of the Office recovering in Fiscal Year 2010, $31,800,000, in 2011, $29,300,000, and in 2012, $53,600,000.
Beyond recovering money, Hochul also reported that 109 dangerous firearms, along with ammunition, and 56 computers were forfeited in FY 2013.
In addition to the $94,220,047 collected locally, Hochul also noted that the WDNY worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional amount of over $534,500,000.00 in cases pursued jointly with these offices including:
The following cases are an example of a successful forfeiture and affirmative civil enforcement concluded this past year in the Western District of New York:
United States vs. Zaveri:
Ashvin Zaveri of Honeoye Falls, N.Y. was indicted on 16 counts of mail fraud, wire fraud and money laundering. Between April 2003 and March 2009, Zaveri was accused of defrauding investors who had invested approximately $35,000,000 in Aoil and natural gas exploration partnerships in Tennessee and Kentucky through his company Zaveri Oil & Gas, Ltd. Over 40 partnerships were offered for investment by Zaveri. The defendant died on August 27, 2010, a week before his plea was scheduled and the criminal case was abated. As a result, the United States government filed a civil forfeiture complaint against 11.5 million dollars in life insurance proceeds, $541,395.06 contained in an M&T Bank account and other assets as property involved in the offense or traceable to the entire Ponzi scheme. The government forfeited $8,938,322.93, most of which was returned to victims.United States vs. Ista Pharmaceuticals:
ISTA Pharmaceuticals, Inc. paid $33,500,000 to resolve criminal liability and false claims act allegations. The company was convicted of conspiracy to introduce a misbranded drug into interstate commerce and conspiracy to pay illegal remuneration in violation of the Federal Anti-Kickback Statute for misbranding the drug Xibrom, an anti-inflammatory drug approved by the FDA used to treat pain and inflammation following cataract surgery. Ista employees promoted Xibrom for unapproved new uses.
United States vs. Gizzi:
In July 2013, John P. Gizzi was convicted of filing false tax returns in 2008 and 2009. In addition, a corporation owned by Gizzi, Rochester Machinery Suppliers, Inc., was convicted of aiding and abetting the preparation of a false tax return. The defendant paid $1,901,633 in criminal restitution for taxes he owed and forfeited $1,500,000 to the Government in a related proceeding brought by the United States Attorney's Office. Rochester Machinery Suppliers, Inc., Gizzi's corporation paid a $500,000 fine for its role in assisting Gizzi's tax crimes. Finally, the defendant paid $7,623,431 to settle related civil claims with the Internal Revenue Service. This brings the total paid by Gizzi to the Government to $11,525,064.
The following is an example of a case that the Western District of New York worked with other U.S. Attorney’s Offices and components of the Justice Department to bring to a successful conclusion:United States vs. Countrywide Mortgage:
The Affirmative Civil Enforcement and Asset Forfeiture Financial Litigation units participated in a shared recovery of $335,194.878.10 between the Civil Rights Division of Main Justice, along with numerous other districts across the country in a settlement in the United States vs. Countrywide case. This settlement resolved allegations that Countrywide Financial Corporation and its subsidiaries engaged in a widespread pattern or practice of discrimination against qualified African-American and Hispanic borrowers in their mortgage lending from 2004 through 2008. The settlement provides compensation for victims of Countrywide’s discrimination during a period when the company originated millions of residential mortgage loans as one of the nation’s largest single-family mortgage lenders. There were over 40 victims in the Western District of New York.
For further information, the United States Attorneys’ Annual Statistical Reports can be found on the internet at:
http://www.justice.gov/usao/resources/reports/.
Shooter Sentenced to 10 Years in Federal Prison on Federal Firearm ConvictionRead the Press Release
Defendant Shot an Individual at Stripes Convenience Store in Lubbock in April 2013
LUBBOCK, Texas — Jarrod Charles Gauna, 23, of Lubbock, Texas, was sentenced, by U.S. District Judge Sam R. Cummings, to 10 years in federal prison on a federal firearm conviction stemming from his shooting and injuring an individual during a drug transaction at a convenience store in Lubbock this past spring. The announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Gauna pleaded guilty to one count of using, carrying, and discharging a firearm during and in relation to a drug trafficking crime and aiding and abetting. According to documents filed in the case, during a methamphetamine trafficking crime on April 20, 2013, Gauna shot and injured an individual with a Sig Sauer 9mm semi-automatic pistol at the Stripes convenience store on 50th Street in Lubbock.
The investigation revealed that Gauna told an individual that he needed to get out of town because he’d shot someone who had stolen methamphetamine from him. Gauna told another individual that he was getting ready to sell one-eighth of an ounce of methamphetamine to individual when that individual grabbed the drugs and ran. Gauna said he fired at the individual and possibly hit him in the foot.
The investigation also revealed that Gauna and others had disposed of the firearm by burying it in cement, but in May 2013, investigators were able to retrieve the firearm from a bucket of cement and identified it as the one used in the shooting.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lubbock Police Department. Assistant U.S. Attorney Jeffrey Haag prosecuted.
Sentencing of eBay RICO DefendantRead the Press Release
MOBILE, AL-- United States Attorney Kenyen R. Brown announced that Jason Spellen, an Atlanta, Georgia area resident, was sentenced today by Chief United States District Judge William Steele for conspiracy to commit a RICO violation. Spellen received a sentence of 84 months and was ordered to make restitution in the amount of $1,691,509.51. The Court also ordered the forfeiture of assets seized from Spellen’s residence and storage unit.
Spellen previously entered a guilty plea to the conspiracy charge and admitted his involvement in selling stolen and fraudulently-procured electronics on eBay and by other means. Although Spellen did not steal the electronics or procure them by fraud himself, he purchased the electronics from other members of the conspiracy knowing them to have been stolen or fraudulently-procured.
The case arose from an investigation by the United States Secret Service and was prosecuted by Assistant United States Attorney Deborah Griffin.
Philadelphia Woman Charged with Theft of Government FundsRead the Press Release
PHILADELPHIA - Mary Joyner, 25, of Philadelphia, PA, was charged today by Information with theft of public funds from the Department of Veterans Affairs (“VA”), announced United States Attorney Zane David Memeger. It is alleged that the defendant submitted fraudulent time sheets while she was assigned to the VA Medical Center in Philadelphia, Pennsylvania, and took compensation for nursing aide services that she had not rendered. The VA paid approximately $87,000 for such services that it never received.
If convicted, the defendant faces 10 years of imprisonment, a term of supervised release after imprisonment of three years, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Veteran’s Affairs Office of Inspector General and is being prosecuted by Assistant United States Attorney M. Beth Leahy.
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Lee's Summit Man Pleads Guilty to Cyberstalking, Possessing Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Lee’s Summit, Mo., man pleaded guilty in federal court today to cyberstalking one victim and possessing child pornography images of another victim.
August W. Jentsch, 25, of Lee’s Summit, pleaded guilty before U.S. District Judge Gary A. Fenner to cyberstalking and possessing child pornography. Jentsch was taken into federal custody at the conclusion of the hearing.
According to today’s plea agreement, the first victim notified the police department at the University of Minnesota (where she was attending school) that Jentsch had broken into her e-mail account and obtained nude images of her that were taken when she was 16 years old. The victim had briefly dated Jentsch in December 2007. The victim stated the 20-day relationship was not romantic and never physically intimate.
Jentsch stalked the victim from Jan. 2, 2008, to Aug. 29, 2011, by showing up at her work and residence, texting and e-mailing her, and leaving gifts for her. Beginning in September 2011, Jentsch set up fictitious Facebook profiles of the victim and posted the nude photos and video he had obtained from her e-mail account. This happened four or five times and each time the victim contacted Facebook to have the accounts taken down. Jentsch hacked into the victim’s gmail, Yahoo! E-mail, and Facebook accounts and assumed control of the accounts by changing the passwords. He sent random e-mails with the nude photos of the victim to people in her e-mail contacts. Jentsch also used the victim’s nude images and identity to set up another social media account to invite others to get in touch with the victim through Facebook for sexual activity.
A restraining order was served on Jentsch on Oct. 13, 2011. When a state search warrant was executed at Jentsch’s residence, officers found the images and video of the victim on an SD card that was in his computer. Investigators also discovered a video of child pornography on Jentsch’s computer that involved a second victim. The video portrayed the second victim, who was 15 years old, engaged in sexual activity with Jentsch.
Under the terms of today’s plea agreement, Jentsch is subject to a sentence between five years and 10 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Teresa Moore. It was investigated by the University of Minnesota Police Department and the Lee’s Summit, Mo., Police Department.Eastern California Real Estate Investor Pleads Guilty to Bid Rigging and Fraud at Public Real Estate Foreclosure AuctionsRead the Press Release
An Eastern California real estate investor pleaded guilty today to conspiring to rig bids and commit mail fraud at public real estate foreclosure auctions in Eastern California, the Department of Justice announced.
Anthony B. Joachim of Stockton, Calif., entered his guilty plea in U.S. District Court for the Eastern District of California in Sacramento. Joachim was originally indicted by a federal grand jury in Sacramento on Dec. 7, 2011, along with three other investors – Andrew B. Katakis, Donald M. Parker and Wiley C. Chandler – and one auctioneer – W. Theodore Longley. All five individuals were charged with conspiring with other unnamed co-conspirators to rig bids and commit mail fraud when purchasing selected properties at public real estate foreclosure auctions in San Joaquin County, Calif. The indictment was superseded on May 8, 2013, to include an obstruction of justice charge against Katakis. Chandler pleaded guilty on Feb. 24, 2012, and trial is scheduled to begin against the remaining individuals on Jan. 28, 2014.
According to court documents, Joachim conspired with others not to bid against one another and to instead designate a winning bidder to obtain selected properties at public real estate foreclosure auctions in San Joaquin County. Joachim was also charged with conspiring to use the mail to carry out a scheme to fraudulently acquire title to selected San Joaquin County properties sold at public auctions, to make and receive payoffs and to divert money to co-conspirators that would have otherwise gone to mortgage holders and others by holding second, private auctions open only to members of the conspiracy. The department said that the selected properties were then awarded to the conspirators who submitted the highest bids in the second, private auctions. The private auctions often took place at or near the courthouse steps where the public auctions were held. According to Joachim’s plea agreement, he participated in the conspiracies between about April 2009 until about October 2009.
“Today’s plea is the 11th in the Antitrust Division’s ongoing investigation of bid rigging and fraud involving real estate foreclosure auctions in the Eastern District of California,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The division has uncovered similar schemes across the country and continues to prosecute those who profit by undermining competition at real estate foreclosure auctions.”
The department said that the primary purpose of the conspiracies was to suppress and restrain competition and to conceal payoffs in order to obtain selected real estate offered at San Joaquin County public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner. According to court documents, these conspirators paid and received money that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties, and in some cases, the defaulting homeowner.
“My office will continue to fight real estate fraud in all its forms, including bringing to justice those who would subvert public foreclosure auctions for their own personal gain,” said United States Attorney Benjamin B. Wagner of the Eastern District of California.
Joachim pleaded guilty to bid rigging, a violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million fine. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either of those amounts is greater than the statutory maximum fine. Joachim also pleaded guilty to conspiracy to commit mail fraud, which carries a maximum sentence of 30 years in prison and a $1 million fine.
The guilty plea entered today is the latest in the department’s ongoing federal antitrust investigation of fraud and bidding irregularities in certain real estate auctions in San Joaquin County. The investigation is being conducted by the Antitrust Division’s San Francisco office, the U.S. Attorney’s Office for the Eastern District of California, the FBI’s Sacramento Division and the San Joaquin County District Attorney’s Office. Anyone with information concerning bid rigging or fraud related to real estate foreclosure auctions should contact the Antitrust Division’s San Francisco office at 415-436-6660, visit www.justice.gov/atr/contact/newcase.htm, contact the U.S. Attorney’s Office for the Eastern District of California at 916-554-2700 or contact the FBI’s Sacramento Division at 916-481-9110.
Today’s action was 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.Defendants sentenced in $25 Million Tax Fraud and Drug ConspiracyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Joel Santana-Pierna and Abel Santana-Pierna, citizens of the Dominican Republic residing in Alaska, were sentenced to 135 months and 72 months imprisonment, respectively, for their roles in masterminding and perpetrating large drug trafficking and tax fraud conspiracies.
Joel Santana-Pierna pled guilty to conspiracy to distribute cocaine and conspiracy to defraud the government with respect to claims on May 2, 2013. His brother, Abel Santana-Pierna, pled to the same charges on July 23, 2013. In addition to their prison sentences, the Santana-Pierna brothers were ordered to pay restitution to the Internal Revenue Service in the amount of $559,755. Both brothers also agreed to forfeit to the United States approximately $130,000 obtained as part of their drug trafficking activities.
In sentencing the Santana-Pierna brothers, U.S. District Court Judge Timothy M. Burgess repeatedly emphasized the seriousness of the offenses committed by both men and noted the need to protect the public while also deterring others from committing these types of crimes in the future.
According to court documents, from January 2010 to March 2012, Joel Santana-Pierna led his conspirators, including his brother Abel Santana-Pierna and others, in distributing cocaine in the Anchorage area. He also arranged to import over two kilograms of cocaine into Alaska for distribution. In addition to their cocaine smuggling scheme, the Santana-Pierna brothers conspired to use stolen Puerto Rican identities to file false income tax returns and obtain large income tax refunds to which they were not entitled.
Conspirators in the income tax fraud scheme obtained the identities of more than 3,000 individuals, including names and social security numbers. Most of these stolen identities were from citizens of Puerto Rico. Using this stolen information, the brothers and their co-conspirators completed false returns and submitted them to the IRS. Altogether, the United States estimates that the total loss intended by members of the conspiracy exceeded $25 million.
“The sheer greed of these drug traffickers is clear; they wreaked havoc on the innocent to bolster their personal wealth,” said Drug Enforcement Administration Special Agent in Charge Matthew G. Barnes. “This is an example of the multiple layers of criminal activity involved in a drug investigation. The extraordinary coordination between the law enforcement community has put these criminals where they belong.”
“The Santana-Piernas’ multi-layered identity theft and fraud scheme to divert taxpayer dollars from the U.S. Treasury to themselves victimized many innocent people, and today’s sentence is an appropriate outcome,” said Richard Weber, Chief of Internal Revenue Service Criminal Investigation. “Investigating tax return fraud through identity theft remains a top priority for criminal investigators of the Internal Revenue Service, and we will relentlessly pursue those who choose to defraud the government and disrupt the lives of innocent taxpayers.”Ten other individuals were also indicted as part of the drug trafficking and fraud conspiracies.
For his role in the conspiracy, co-defendant Isaac Amparo-Vazquez was sentenced on February 1, 2013, to 57 months in prison. Another co-defendant, Misael Polanco-Villa, who was instrumental in the drug trafficking conspiracy, was sentenced to 46 months in prison. Two former Wells Fargo Bank employees, Melissa Duran-Muniz and Hilda Josephine Hernandez McMullen, have also been sentenced. Multiple other co-conspirators await sentencing. One remains a fugitive.The case was jointly prosecuted by Assistant U.S. Attorneys Thomas C. Bradley, James Barkeley, and Stephanie C. Courter of the U. S. Attorney’s Office for the District of Alaska. The case was investigated by the Drug Enforcement Administration (DEA), Internal Revenue Service Criminal Investigation (IRS-CI), U.S. Immigration and Customs Enforcement (ICE), which oversees Homeland Security Investigations (HSI), the U.S. Postal Inspection Service (USPIS), and the U.S. State Department’s Diplomatic Security Service. Additional assistance was provided by the Tax Division of the United States Department of Justice as well as the U.S. Attorney’s Offices for the District of New Jersey, the Eastern District of Pennsylvania, and the Southern District of New York.
Charleston Crack Cocaine Dealer Enters Guilty Plea to Federal Drug ChargeRead the Press Release
Defendant William Richmond charged as part of Charleston’s West Side Drug Market Intervention initiative
CHARLESTON, W.Va. – A Charleston man faces up to 20 years in prison after pleading guilty today in federal court to crack cocaine distribution, U.S. Attorney Booth Goodwin announced. Thirty-one-year-old William Edward Richmond sold crack cocaine to a police informant on June 7 in exchange for cash. The illegal drug transaction took place near the intersection of Park Avenue and Central Avenue on Charleston’s West Side.
Richmond is scheduled to be sentenced on March 27, 2014, by United States District Judge John T. Copenhaver, Jr.
Richmond is being prosecuted as part of the Charleston area’s Drug Market Intervention (DMI) initiative.
The defendant was designated a member of the DMI A-list, which comprises the most serious offenders identified in the initiative.
The Charleston Police Department Special Enforcement Unit conducted the investigation. Assistant United States Attorney Joshua Hanks is in charge of the prosecution.
The DMI initiative was launched in February 2012 by U.S. Attorney Booth Goodwin and Charleston Police Chief Brent Webster, in collaboration with other federal, state, local law enforcement agencies and leaders representing several West Side community development organizations. A continuation of the DMI initiative was announced earlier this month in Charleston.
Over the past several months, the Charleston Police Department and other law enforcement agencies have conducted undercover operations and completed investigations culminating in federal charges being filed against thirteen individuals.
Drug Market Intervention, first implemented in High Point, North Carolina, and replicated with success in several other cities, including Huntington, W.Va., is a strategic problem-solving initiative aimed at closing down drug markets that breed crimes of violence and disorder.
The DMI strategy also included a staged community intervention that was held earlier this month at New Covenant Missionary Baptist Church on Charleston’s West Side. The community intervention meeting offered a rare second chance for five low-level, non-violent offenders to end their criminal activity and avoid being prosecuted, if they obey a set of strict guidelines established by law enforcement. The Dec. 12 community intervention call-in meeting was attended by offenders’ relatives, concerned citizens, and faith-based leaders from the West Side community. The call-in meeting was organized and attended by federal, state and local law enforcement officials.
Buffalo Man Sentenced on Gun and Drug ChargesRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Tyrone Nance, 32, of Buffalo, N.Y., who was convicted following a jury trial of being a felon in possession of a firearm and possession of marijuana, was sentenced to 36 months in prison by Chief U.S. District Court Judge William M. Skretny. The defendant was also sentenced to another 18 months in prison for a violation of supervised release.
Assistant U.S. Attorneys Frank T. Pimentel and Mary Catherine Baumgarten, who handled the case, stated that in November 2011, federal probation officers conducted a search of the defendant’s residence and car on Timon Avenue in Buffalo. Nance was on supervised release as a result of a 2009 conviction for conspiracy to distribute marijuana. During the search, officers recovered a shotgun hidden under the hood of the defendant’s car. They also recovered a quantity of marijuana from the freezer in the defendant’s residence. DNA analysis performed by the Erie County Forensics Laboratory tied the shotgun to the defendant.
The sentencing is the culmination of an investigation on the part of the United States Probation Department, under the direction of Anthony SanGiacomo, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Frank Christiano.
Friday 27 December 2013
“Joint Interagency Task Force West Transnational Crime Workshop” U.S. Attorney’s Office for the Districts of Guam and the Northern Mariana Islands Provides TrainingRead the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands, announced that her office conducted training to law enforcement on human trafficking investigations at the “Joint Interagency Task Force West Transnational Crime Workshop” held in the Republic of Palau on July 26, 2013. U.S. Attorney Limtiaco, Assistant U.S. Attorney (AUSA) Rosetta San Nicolas and AUSA Rami Badawy, also conducted training and presentations at the 2nd Pacific Regional Response to Combat Human Trafficking International Conference held on July 22-26, 2013, in the Republic of Palau.
The “Joint Interagency Task Force West Transnational Crime Workshop” was attended by approximately 30 officers of the Pacific regional community, some of whom are in the photos below.
Wausa Man Sentenced for Sale of Misbranded Meat to Omaha Public SchoolsRead the Press Release
United States Attorney Deborah R. Gilg announced that Paul Rosberg, age 63, of Wausa, Nebraska, was convicted of the Sale of Misbranded Meat, a felony. Senior United States District Judge Richard Kopf sentenced Rosberg to eighteen months imprisonment, a term of supervised release of one year and imposed a fine of $8,450.
In October of 2011 Rosberg while owner of Nebraska Finest Meats, a meat locker in Randolph, Nebraska, supplied the Omaha Public School system with approximately 2,650 pounds of ground beef certifying that the meat was federally inspected when in fact it was not inspected. Agents of the U.S. Department of Agriculture (USDA) were able to intercept all of the uninspected meat before it was served to the student population.
The case was investigated by the USDA Office of Inspector General with the assistance of the USDA Food Safety Inspection Service.U.S. Attorney Alicia Limtiaco Talks with Students at Vicente S.A. Benavente Middle SchoolRead the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), was invited to speak at Vicente S.A. Benavente Middle School on October 28, 2013. She addressed and shared with over 430 eighth grade students the significance of Red Ribbon Week and being healthy and drug free. U.S. Attorney Limtiaco also talked with the students about preventing and stopping bullying and cyber-bullying, and how to be safe on the Internet.
The first Red Ribbon Celebration was organized in 1986 by a grassroots organization of parents concerned about the destruction caused by alcohol and drug abuse. The red ribbon was adopted as a symbol of the movement in honor of Enrique “Kiki” Camarena, an agent with the U.S. Drug Enforcement Administration who was kidnapped and killed while investigating drug traffickers. The Campaign has reached millions of children and has been recognized by the U.S. Congress. Red Ribbon Week is a chance to be visible and vocal in our desire for a drug-free community. The Campaign provides communities with a forum to bring together parents, schools and businesses to find new and innovative ways to keep kids drug free.
Attached are photos taken at the school.
Left to Right, U.S Attorney Alicia Limtiaco, Myles Macaraig (student), Victoria Ananich (student),
Chona Eco (PFC-Outreach Social Worker), and Kin Fernanez (Asst. Principal).
Students listening to U.S. Attorney Alicia Limtiaco.U.S. Attorney Alicia A.G. Limtiaco Speaker at FBI’s Citizens AcademyRead the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), was invited to speak on November 6, 2013 at the Federal Bureau of Investigation’s (FBI) Citizens Academy. This is the 6th FBI Citizens Academy held in Guam. U.S. Attorney Limtiaco has previously presented at the FBI Citizens Academy on topics related to the Department of Justice and U.S. Attorney’s Office.
U.S. Attorney Limtiaco discussed the mission and priorities of the Department of Justice and U.S. Attorney’s Office, the type of cases handled by the Criminal and Civil Divisions of the U.S. Attorney’s Office, and the various initiatives of the Department and U.S. Attorney’s Office including the “Smart on Crime Initiative” announced by Attorney General Eric Holder in August 2013.
The FBI offers members of the community an up close and personal look at how it operates through their Citizens Academy program. The program brings the community’s civic, business, and religious leaders together to experience firsthand how the FBI investigates crimes and threats to our national security and learn about the various tools and techniques we employ to carry out our mission.
FBI Citizens Academy class members are nominated by a Bureau employee or a previous academy graduate. To be eligible, you must be at least 21 years old, with no felony convictions, and because of the classified investigative techniques discussed, nominees must also undergo a background check and get an interim security clearance. The FBI Citizens Academy curriculum mirrors new-agent training. That means class members get plenty of hands-on instruction — from shooting firearms and learning how to fingerprint and handcuff suspects to collecting evidence from a crime scene and operating vehicles under emergency situations.
Three Local 17 Defendants Plead Guilty to Extortion and Agree to Testify in Upcoming TrialRead the Press Release
BUFFALO, N.Y. -- The United States Attorney’s Office announced today that three members of Local 17 of the International Union of Operating Engineers pleaded guilty before United States District Judge William M. Skretny to violations of the federal Hobbs Act Extortion statute and agreed to testify in the upcoming trial of their seven co-defendants.
Pleading guilty were:
CARL A. LARSON, 50, of Boston New York. LARSON formerly worked as an organizer for Local 17.
MICHAEL EDDY, 44, of Gowanda, New York, a member of Local 17
GEORGE DEWALD, 50 of Springville New York. DEWALD, also a member of Local 17.
Each defendant faces a sentence of up to twenty years in federal prison and a fine of up to $250,000 when he is sentenced in May of 2014.
In pleading guilty, each of the defendants admitted that he participated in a campaign of threats, violence and property destruction against non-union contractors in an effort to force those contractors to enter into a collective bargaining agreement with Local 17.
LARSON pled guilty to trying to force an Orchard Park contractor and its owner to sign with Local 17 by both threatening the owner personally and after the contractor’s owner was stabbed by another Local 17 member and, on February 5, 2003, asked Larson, “What are the positives [to signing with the union]? You guys slash my tires, stab me in the neck, try to beat me up in a bar. What are the positives to signing? There are only negatives,” Larson responded by telling the owner that “The positives are that the negatives you are complaining about would go away.”
EDDY pled guilty to being part of a campaign of violence and intimidation against a Latham, New York contractor while the contractor was removing soil contaminated with coal tar from under the Waterfront School in downtown Buffalo during the summer of 2005. EDDY admitted to being present when members of Local 17 damaged a pickup truck being driven by the contractor’s project manager as he tried to enter the worksite and then “belly bumping” the project manager when got out of his truck to investigate. During this campaign, a Local 17 organizer obtained the project manager’s home address and his wife’s name and sent his wife a letter saying “We would like for the job to run as smoothly as your wedding day did at [your wedding venue] and as smooth as [your husband’s] nights are in the Western New York region.
DEWALD pled guilty to being a part of campaign designed to force a Frankfort, New York contractor which was the low bidder on the 2003 expansion of the Chaffee Landfill in Chaffee, New York, to sign a collective bargaining agreement with Local 17. DEWALD admitted that May 7 or 8 of 2002, he and several other Local 17 members went to the Chaffee Landfill under the cover of darkness where they put sand used for sandblasting into the engines and hydraulic lines of nine separate pieces of heavy equipment causing significant delays in finishing the job and over $240,000 in damage to the equipment.
All three defendants agreed to testify in the trial of seven remaining defendants including former business manager and president Mark Kirsch, former business agents Jeffrey Peterson, Gerald Bove, and Thomas Freedenberg, and Local 17 members Michael Caggiano, Jeffrey Lennon and Kennth Edbauer, which is scheduled to commence on Janaury 7, 2014, before Judge Skretny. The trial will be handled by Assistant United States Attorneys Anthony M. Bruce and Edward H. “Ned” White and Department of Justice Attorney Robert Tully.
The investigation of this case is being handled by the United States Department of Labor, Office of Inspector General, under the direction of Department of Labor Inspector General Scott Dahl and the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig.
Sentencing is scheduled for May 7, 2014 (LARSON), May 8, 2014 (EDDY) and May 9, 2014 (DEWALD) at 9:00 a.m. before Judge Skretny.Southern California Man Pleads Guilty to Attempting to Assist Al-Qai'da by Providing Weapons Training to Fighters in PakistanRead the Press Release
LOS ANGELES -- An Orange County man pleaded guilty this morning to a federal terrorism offense, admitting that he intended to assist al-Qai'da by traveling to Pakistan, where he would provide weapons training to members of the terrorist group.
Sinh Vinh Ngo Nguyen, 24, of Garden Grove, California, pleaded guilty this morning to one count of attempting to provide material support to a designated foreign terrorist organization.
Nguyen, who also used the name Hasan Abu Omar Ghannoum, pleaded guilty this morning before United States District Judge John F. Walter, who is scheduled to sentence the defendant on March 21. At the time of sentencing, Nguyen faces a statutory maximum penalty of 15 years in federal prison.
In a plea agreement filed last Friday in United States District Court, Nguyen admitted that approximately one year ago he travelled to Syria where he joined opposition forces. Using a social network site during a four-month period he was in Syria, Nguyen told people that he was fighting against the Assad regime and that he had had a "confirmed kill." After he returned to the United States, Nguyen told associates that he had offered to train al-Qai'da forces in Syria, but his offer had been turned down.
Between August 3 and October 11, Nguyen met with a man he thought was an al-Qai'da recruiter, but who in fact was working with the FBI. Within the first few minutes of their first meetings, Nguyen began questioning the man to determine if he was a fellow jihadist, according to the plea agreement. Nguyen told the man about his exploits in Syria and said he wanted to return to jihad because "this was what he was born to do."
During their meetings, Nguyen and the man he thought was an al-Qai'da recruiter discussed how Nguyen could travel to Pakistan under a fraudulently obtained United States passport. After Nguyen gave the purported recruiter a photo of himself and a passport application with bogus information, Nguyen agreed to travel to Pakistan, where he would train 30 al-Qai'da fighters for 5 or 6 weeks to prepare them "for a guerilla warfare ambush attack on coalition forces" that would take place this month, according to the plea agreement.
With the intention to travel to Pakistan to train al-Qai'da forces for the ambush, Nguyen on October 1 purchased a plane ticket to travel from Mexico to Peshawar, Pakistan, he admitted in the plea agreement. On October 11, Nguyen went to a bus station in Santa Ana where he purchased a ticket to Mexico. On this date he was arrested by FBI agents. When he was taken into custody, Nguyen had in his possession the false passport and a computer hard drive that contained "over 180 training videos on shooting firearms."
Nguyen has been in federal custody since his arrest.
The case against Nguyen is the product of an investigation by the Federal Bureau of Investigation.
Release No. 13-152
Social Security Customer Service Employee Indicted for Stealing Information and Money from AgencyRead the Press Release
BIRMINGHAM -- A federal grand jury today indicted a Social Security Administration telephone service center employee for using his position to steal identifying information and benefits from Social Security beneficiaries, announced U.S. Attorney Joyce White Vance and Social Security Administration, Office of Inspector General, Special Agent in Charge Guy Fallen.
A 14-count indictment filed in U.S. District Court charges TABARIS ARCHIE BROWN, 35, of Montgomery, with wire fraud, theft of government property and aggravated identity theft in a scheme to obtain money and property fraudulently from the SSA.
Brown was a teleservice representative in the SSA Teleservice Center in Birmingham between April 2013 and July 2013 when the crimes occurred. The administration's teleservice centers across the United States accept toll-free calls from the public. In Brown's job as a customer service representative, he received calls and answered inquiries from SSA beneficiaries. His job responsibilities required that he have access to SSA databases, including the National Computer Center, which houses the Master Beneficiary Record for Social Security beneficiaries.
According to the indictment, Brown used his access to accounts and identifying information of beneficiaries, including Social Security numbers, contained in the NCC to alter bank deposit information for particular beneficiaries and to change the information for 11 beneficiaries so that each person's benefits would be paid into accounts that he controlled.
The indictment charges Brown with 11 counts of wire fraud for each interstate communication he made to change bank information in the Social Security Master Beneficiary Record. He faces one count of theft of government property for embezzling money from the SSA, and two counts of aggravated identity theft for unlawfully using someone else's Social Security number in relation to the wire fraud and government property theft.
The maximum penalty for wire fraud is 20 years in prison and a $250,000 fine. The maximum penalty for theft of government property is 10 years in prison and a $250,000 fine. Aggravated identity theft carries a minimum two-year prison term and a $250,000 fine.
SSA-OIG investigated the case, which Assistant U.S. Attorney Tamarra Matthews Johnson is prosecuting.
The public is reminded that an indictment contains only charges. A defendant is presumed innocent and it will be the government's responsibility to prove guilt beyond a reasonable doubt at trial.
Rockford Man Sentenced to 113 Months in Federal Prison for the Robbery of Rockford Area Banks and Credit UnionRead the Press Release
ROCKFORD — A Rockford, Ill. man was sentenced today in federal court before U.S. District Judge Frederick J. Kapala to 113 months in prison without parole, to be followed by 3 years of supervised release, for robbing two Rockford area banks and a credit union. DELANIO BENFORD, 34, pled guilty on March 22, 2013, to the robbery of: Associated Bank, 3333 N. Rockton Ave., on June 22, 2010; PNC Bank, 6709 E. Riverside Blvd., on July 15, 2010; and Members Alliance Credit Union, 6951 Olde Creek Rd., on July 28, 2010 and Sept. 11, 2010. Benford was also ordered to pay restitution of $38,771 to the banks and credit union. Benford will not be eligible for parole.
Two other individuals have also pled guilty and been sentenced in related cases:
Prince Williams, 27, of Rockford, pled guilty on April, 19, 2012, to six counts of bank/credit union robbery and one count of armed bank robbery, all in Rockford, including: First Northern Credit Union, 2235 12th St., Rockford, on May 3, 2010; National City Bank (now PNC Bank), 1551 Sandy Hollow Rd., on June 10, 2010, while armed with a handgun; Associated Bank, 3333 N. Rockton Ave., on June 22, 2010; PNC Bank, 6709 E. Riverside Blvd., on July 15, 2010; Harris, N.A., 1275 Bennington Rd., on July 22, 2010; and Members Alliance Credit Union, 6951 Olde Creek Rd., on July 28, 2010, and on Sept. 11, 2010, while using and carrying a firearm during a crime of violence. Williams was sentenced by Judge Kapala on Dec. 4, 2013, to 128 months in federal prison without parole, 5 years of supervised release following imprisonment, and ordered to pay restitution of $56,644.35 to the banks and credit unions.
Michael Buck, 28, also of Rockford, pled guilty on Oct. 3, 2013, to the robbery of Members Alliance Credit Union on Sept. 11, 2013, and was sentenced by U.S. District Judge Philip G. Reinhard to 125 months in federal prison without parole, 3 years of supervised release following his release from prison, and ordered pay restitution of $12,180 to Members Alliance.
The sentencing today was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Rockford Police Department and Rockton Police Department assisted in the investigation.
The government was represented by Assistant U.S. Attorney Joseph C. Pedersen.