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Wednesday 18 December 2013
2 Cases Closed – Last of 25 Violent Bank Robbers Now Headed to Federal PrisonRead the Press Release
HOUSTON – The final of 25 convicted in two separate, but similar bank robbery cases that gripped the Houston and surrounding areas has now been ordered to prison, announced United States Attorney Kenneth Magidson along with Stephen L. Morris, special agent in charge of the FBI in Houston. The two groups were ultimately held accountable in court for approximately 34 robberies of the area banks in 2010-2011.
“The prosecution of these cases should send a strong message that the penalties for robbing banks in a serial fashion will be swift and severe,” said Magidson. “Whatever criminal role is played, be it getaway driver, lookout, firearms supplier, enforcer or shooter, you will be prosecuted to the fullest extent of federal law.”
A total of 11 defendants were convicted in the first case. They were responsible for approximately 16 intimidating robberies inside grocery stores, including the Aug. 4, 2011, robbery of Wells Fargo Bank in Sugar Land during which an off-duty Harris County Sheriff’s Office (HCSO) sergeant was shot. Anthony Demonde Nowlin and Shelton McGowen, both 24, pleaded guilty before a trial, set to begin May 28, 2013. During jury selection, seven opted to enter guilty pleas – Derrick Williams, 28, Marcus Rosemond Tarpley, 32, Reginald Mosley, 37, Joel Keon Jackson, 33, Hakim Ibn Ahmad, 31, Alonzo Horace Harris, 37, and Patrick Wayne Simmons, 29. Calvin Wesley Gray, 34, pleaded guilty the morning of opening statements, while David Dwayne Holmes, 34, pleaded guilty following the government’s opening remarks and with a witness about to take the stand.
Today, U.S. District Judge David Hittner sentenced Holmes to a total sentence of 346 months in federal prison to be followed by five years of supervised release. In October, Mosley - identified as the shooter of the off-duty deputy – received a sentence of 525 months. Simmons, Tarpley and Harris each were sentenced to 480 months in prison, while Ahmad and Gray will serve 444 and 300 months in prison, respectively. Nowlin was ordered to serve 144 months, while McGowen, Jackson and Williams were convicted of one count of conspiracy and will each serve a sentence of 60 months.
“No one goes into a grocery store expecting to be confronted by a group of masked gunman carrying assault rifles. This is absolutely unacceptable in our community,” said Morris. “Today’s sentencing places the final member of this dangerous crew behind bars and demonstrates that anyone playing any role in these crimes will be held accountable to the fullest extent of the law.”
During the course of the sentencings, additional evidence and testimony was presented including statements from the wounded deputy and another victim. The deputy commented upon his actions and that he would not change anything he did that day. He testified that he saw that something was going to happen and that it was his obligation as a law enforcement officer to step up and act. He further noted the effect the shooting has had on him, his family and well as the sheriff and his family.
These defendants were part of a sophisticated criminal organization that planned and executed violent takeover style bank robberies of banks inside grocery stores. The conspiracy began on May 4, 2007, and ended with the arrest of some of the men on Sept. 16, 2011. They would target banks and credit unions that were located in grocery stores, using force, violence and intimidation to rob them. During the robberies, the defendants wore dark clothing, gloves, material over their faces and were armed with semi-automatic pistols, shotguns and Uzi style firearms to intimidate the bank employees.
The second case involved a separate group of violent armed robbers that have been held responsible by the court for 18 incidents, including the Pearland Chase branch bank on Dec. 31, 2010, which resulted in a nearly six-hour standoff with law enforcement.
Larry Smith, 37, and Raymond Tierra Johnson, 32, were convicted by a federal jury in March 2013 after five days of trial, while Jeremy Benton, 22, Glenn Bonner, 42, Gregory Wayne Ferguson, 21, Arlington Davis Wilkes aka AD, 24, Carl Ray Turner Jr. aka CT, 27, Edward Johnson, 29,John Berley Scott aka Fresh, 32, Derrick Lashon Paley aka Crybaby, 35, Michael Maurice Wilson Jr. aka Blue/Mikey Poo, 26 Roderick Marshall Beagle, 41, Michael Dushon Duncan aka Mikey, 21, and Kelvin Dewayne Thomas aka Little Kevin, 23, each had previously entered guilty pleas.
U.S. District Judge Gray Miller sentenced Smith, found to be the leader of that group, to 1080 months in federal prison - 90 years. Johnson was considered to be the “muscle” of the crew and, on several occasions, assaulted and/or pistol-whipped victims indiscriminately. He will serve 744 months – 62 years in federal prison. Bonner forced a victim to place a 911 call and subsequently told officers during the standoff that he was going to start to kill victims within minutes if his demands weren’t met. Judge Miller imposed a total sentence for him of 257 months. Benton will serve 235 months, while Scott and Wilson received respective sentences of 271 and 288 months. Wilkes was handed a sentence of 120 months for his role in the conspiracy. Ferguson received a sentence of 12 months and a day, while Edward Johnson and Turner each received an 84-month sentence. Thomas, Duncan, Paley and Beagle received sentences of 70, 207, 231 and 220 months, respectively.
This 14-man conspiracy involved the organized recruitment of co-conspirators, who would engage in advanced coordination and planning Evidence at trial indicated the conspirators used lookouts during robberies and used stolen or “hot” cars as get-a-way vehicles to commit the offenses. Most bank robberies were affected through the brandishing and firing of firearms during the course of the robbery to ensure compliance with their demands. Testimony revealed some of the violence witnessed by those in the banks and the threats made to gain compliance.
One victim specifically mentioned the individual trauma she has experienced and admits suffering from post-traumatic stress syndrome as a result of the horrific event. Another victim, also a witness at the trial, described the event as a life changing experience. That victim had been beaten in the course of the robbery and was off work for a great deal of time. Both victims also reported they have been unable to return to the banking industry for work and have even been unable to enter a bank since the violent event. The government also provided evidence to the court that during the course of this bank robbery conspiracy, more than 80 victims have been identified.
“Our office will continue to work with the FBI Bank Robbery Task Force and its state and local partners and utilize all available resources to secure both prosecution and stiff sentences for the perpetrators of such crimes,” Magidson added.
All 25 men will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Both cases were investigated by the FBI Bank Robbery Task Force and included personnel from the FBI, HCSO, police departments in Houston, Pearland, Friendswood, Baytown and Pasadena, Fort Bend County Sheriff’s Office, Harris County Precinct 4 Constable’s Office, District Attorney’s Offices in Harris and Brazoria counties as well as Crimestoppers. The cases were both prosecuted by Assistant U.S. Attorneys Suzanne Elmilady and Kebharu H. Smith.
Tuesday 17 December 2013
Woman Extradited from Hong KongRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana - United States Attorney David Capp announced that Rita Law, 55, of Chicago, Illinois was charged in a sealed Complaint filed on October 17, 2013, now unsealed, with transporting an individual for the purposes of prostitution.
According to the Complaint, Law is suspected of operating a prostitution ring out of three massage parlors in the Northern District of Indiana.Law was arrested on October 18, 2013 after deplaning from a Cathay Pacific airline flight in Hong Kong.HSI’s (“Homeland Security Investigations”) Hong Kong office coordinated with the Hong Kong Department of Justice and the Hong Kong Police Force to both arrest and extradite Ms. Law back to the United States to face the charge contained in the Complaint.
This charge was filed as the result of an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Federal Bureau of Investigation, with the assistance of Homeland Security Investigations Hong Kong.This case has been assigned to and will be prosecuted by Assistant United States Attorney Susan Collins.
The United States Attorney's Office emphasized that a Complaint is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
Waynesboro Man Sentenced to Years for Distribution and Receipt of Child PornographyRead the Press Release
AUGUSTA, GA – Stephen Jeffrey Babb, 28, of Waynesboro, Georgia was sentenced today by United States District Court Judge J. Randal Hall to over 24 years in prison, followed by lifetime of supervised release, for distributing and receiving child pornography. He was also ordered to pay $6,000 in restitution to victims of this offense. Babb had pled guilty to the charges January 2013. Babb will be required to register as a sex offender.According to the evidence presented at Babb’s plea and sentencing hearings in September 2012, Babb was actively trading child pornography images through the use of various email addresses while using the free wireless services of Augusta-area fast food restaurants. Babb also posted information on one or more international websites where he advertised the availability of child pornography. Babb was identified through the combined investigative efforts of Homeland Security Investigations and the Burke County Sheriff’s Office. Following the execution of a search warrant, Babb’s computer was found to contain over 870 still images and 93 video images of child pornography. At the conclusion of the sentencing hearing, Babb was returned to the custody of the United States Marshal Service to serve his sentence.
United States Attorney Edward J. Tarver stated, “It is beyond belief that an adult would create images that show the sexual abuse of innocent children. It is beyond shocking that an adult would take steps to avoid detection so that he could knowingly sell, trade and swap the despicable images with others. Babb committed a serious crime for which lengthy punishment is justified. There is no higher priority than the protection of our nation’s children. This United States Attorney’s Office will continue its efforts to prosecute those who endanger the safety of our children.”
“Despite the defendant’s attempts to cover his tracks by using an open Wi-Fi network at a fast food restaurant, he couldn’t hide from the Homeland Security Investigation special agents who brought him to justice for the crimes he committed against the most innocent,” said Brock D. Nicholson, special agent in charge of HSI Atlanta, who oversees agency operations in Georgia and the Carolinas. “Trafficking in child pornography is an outrageous offense that has no place in our society. This successful prosecution by the U. S. Attorney’s Office and stiff prison sentence sends a strong message to other predators: stop victimizing children or be prepared to spend decades behind bars.”
Burke County Sheriff Gregory Coursey added, “Because this was a joint effort between the Department of Homeland Security and the Burke County Sheriff’s Office, I would like to take this opportunity to thank the Department of Homeland Security for their assistance. This is a prime example of what can be accomplished when agencies come together, share information and work towards a common goal.”
This case was brought as part of Project Safe Childhood, a U. S. Department of Justice initiative designed to protect children from online exploitation and abuse. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.
Assistant United States Attorney Nancy Greenwood, Deputy Criminal Chief in the Augusta U. S. Attorney’s Branch Office and Project Safe Childhood Coordinator, prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.Volusia County Man Sentenced to 10 Years in Prison for Distribution and Possession of Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. yesterday sentenced Tyler Andrew Smith (23, Port Orange) to 10 years in federal prison for distributing and possessing child pornography. As part of his sentence, he was ordered to serve a 15-year term of supervision, following his release from prison, and required to register as a sex offender. The court also ordered Smith to forfeit the devices upon which he used to store the child pornography.
Smith pleaded guilty on August 13, 2013.
According to court documents, on July 31, 2012, Smith used his email account to send an email containing an image of child pornography to an individual in another state. In April 2013, during an investigation into the individual in the other state, law enforcement discovered Smith's email, along with the attached pornographic image. On March 16, 2013, Homeland Security Investigations (HIS) agents interviewed Smith at his residence, in Volusia County. Smith turned over, to agents, a cellular telephone containing a memory card, a netbook computer, and an SD memory card, all three of which contained child pornography. Smith admitted to sending the email with the attached child pornography image, using email accounts and the Internet to collect and trade child pornography, and that the devices containing child pornography belonged to him. Smith was subsequently arrested. Smith’s child pornography collection included images of children less than 12 years of age being sexually abused, exploited, and being subjected to sadistic and masochistic conduct.
"Individuals who download child pornography further the victimization of innocent children who have already experienced horrific abuse," said Susan McCormick, special agent in charge of HSI Tampa. "I issue this warning to child predators – we will find you, arrest you and ensure you are prosecuted to the fullest extent of the law."
This case was investigated by the U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), with assistance from the Brevard County Sheriff's Office. It was prosecuted by Assistant United States Attorney Andrew C. Searle.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Vero Beach Resident Sentenced for Importing Illegal Catch from the BahamasRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Otha Easley, Acting Special Agent in Charge, NOAA Fisheries, Office of Law Enforcement, Southeast Division, and Major Camille Soverel, Regional Commander, South A Region, Florida Fish & Wildlife Conservation Commission (FWC), announce that Toby Lamm, 46, of Vero Beach, was sentenced in Fort Pierce, Florida today for importing illegal catch from the Bahamas.
U.S. District Judge Jose E. Martinez sentenced Lamm to two years’ probation and a $2,500.00 fine. Lamm previously pled guilty to a one-count information, charging him with importing and attempting to import queen conch (Strombus gigus), spiny lobster (Panulirus argus), stone crab (Menippe mercenaria) claws and demersal (fin fish) namely: snapper (Lutjanus) and grouper (Serranidae), in violation of the possession limits for each of the species as set forth in the laws and regulations of the Commonwealth of the Bahamas, specifically, the Fisheries Resources (Jurisdiction & Conservation) Regulations, Part X, Sections 47(1)(a), (b) and 48(1)(f) and the laws and regulations of the State of Florida, specifically 68B-16.003(1), 68B-24.003(4), and 68B-13.005(2) contrary to the federal Lacey Act, Title 16, United States Code, Sections 3371(a)(2)(A) and 3373(d)(1)(A).
According to the allegations in the information and statements made in court, on or about June 23, 2013, in St. Lucie County, Lamm attempted to import from the Bahamas approximately 338 queen conch, 11 spiny lobster tails, 31 stone crab claws, and 140 pounds of snapper and grouper fillets.
Mr. Ferrer commended the investigative efforts of the NOAA, Office of Law Enforcement, FWC, and Customs and Border Protection. The case was prosecuted by Assistant U.S. Attorneys Norman O. Hemming, III and Antonia Barnes.
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.
Unsealed Indictment Charges Pair with ExtortionRead the Press Release
Mohammad Hamdan, a/k/a "Alex Hamdan," 36, of Raleigh, North Carolina and Mohammad Sabbar, a/k/a "Ali," 31, of Schnecksville, Pennsylvania, are charged by indictment , unsealed today, with conspiracy to commit extortion, extortion, and aiding abetting have been arrested, announced United States Attorney Zane David Memeger. The defendants were arrested today.
If convicted, the defendants face a maximum possible sentence of 40 years imprisonment, three years of supervised release, a $500,000 fine and a $200 special assessment.
The case was investigated by the U.S. Department of Transportation's Office of Inspector General and is being prosecuted by Assistant United States Attorney Linwood C. Wright, Jr.
Click here to view the indictment
An Indictment 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, 215-861-8525United States Attorney Announces Conviction and Sentencing of Evansville Man for Tax FraudRead the Press Release
EVANSVILLE – Joseph H. Hogsett, the United States Attorney, announced today that Gregory P. Stodghill, age 46, of Vincennes, has been convicted and sentenced by U.S. District Chief Judge Richard L. Young to 60 months (5 years, the statutory maximum) in federal prison after admitting that he engaged in tax evasion that cost taxpayers more than $407,000. He was remanded into custody immediately.
“Tax evasion schemes make victims of all taxpayers, with millions of dollars in losses every year,” Hogsett said. “That is why our office is working with IRS Criminal Investigations and our law enforcement partners to hold fully accountable those who refuse to play by the rules.”
Court documents reveal that Stodghill engaged in a series of complicated financial schemes that funneled outside investor funds through a number of off-shore shell companies. As a result of these and other financial transactions including a real estate flipping scheme conducted in Evansville in 2006, Stodghill generated over one million dollars in personal income, although he did not pay income taxes for this income in 2006 or 2008.
When initially interviewed by case agents, Stodghill falsely claimed that his tax preparer had prepared all of his tax returns and that he had filed them. After the interview, the defendant contacted his return preparer and explained that the IRS and FBI had contacted him and he needed to get his delinquent tax returns prepared. The defendant never provided sufficient accurate documentation for the return preparer to complete his returns. Following this scheme, Stodghill filed a false 2006 federal income tax return and never filed one for 2008. Stodghill later filed a number of frivolous documents with the IRS claiming he had no tax liability.
According to Assistant U.S. Attorney James M. Warden, who prosecuted the case for the government, Stodghill was ordered to fully repay the $407324 lost to taxpayers, and must serve three years of federally-supervised release at the end of his prison term. Under federal law, the defendant is required to serve at least 85% of his prison term within a federal correctional facility.
U.S. Attorney Releases Findings Regarding Death of Mr. Sammie Davis, Jr.Read the Press Release
Following an extensive investigation, Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that insufficient evidence exists to support a federal criminal civil rights prosecution in the death of Mr. Sammie Davis, Jr. in December, 2012.
During the federal investigation into the shooting death of Mr. Sammie Davis, Jr., prosecutors and investigators reviewed voluminous materials, including investigative reports generated by the Federal Bureau of Investigation (FBI), the Georgia Bureau of Investigation (GBI), and the Macon Police Department; videotaped and audio-taped witness interviews; DNA evidence reports; the medical examiner’s report; photographs; video footage from the officers’ patrol cars; medical records; and ballistic evidence.The federal investigation into Mr. Davis’ death focused on the possible application of the federal criminal civil rights statute, found in Title 18 of the United State Code, Section 242, which prohibits certain types of official misconduct. “Based upon all of the available evidence, the United Stated Department of Justice’s Civil Rights Division, in conjunction with my office, has determined that the evidence in this case is insufficient to meet the rigorous requirements of a federal criminal civil rights prosecution. Based on the totality of the evidence, including DNA evidence, the government could not prove, beyond a reasonable doubt, that the officer willfully used more force than he believed was necessary under the circumstances,” U.S. Attorney Michael J. Moore stated.
“I have spoken with the Davis family about this decision, and while I know that their hearts remain heavy, I appreciate their cooperation during this investigation. Sheriff David Davis, who will soon assume command of all local law enforcement in Macon and Bibb County, and I have spoken about policies which can be implemented and which will most assuredly encourage public confidence in investigations like this one, where a law enforcement officer is involved in a shooting. While the findings of the local investigation and review were confirmed by our investigation, I am pleased that Sheriff Davis has put in place a policy which will now require that the GBI will immediately be called to assist in any shooting in which an officer is involved. As we approach the anniversary of Mr. Davis’ death, I offer my condolences to the Davis family and remain committed to ensuring that our civil rights laws are enforced,” said United States Attorney Michael Moore.
For additional information please contact Pamela Lightsey, Public Information Officer, United States Attorney’s Office at (478) 621-2603.
Two Northern California Real Estate Investors Agree to Plead Guilty to Bid Rigging at Public Real Estate Foreclosure AuctionsRead the Press Release
Two Northern California real estate investors have agreed to plead guilty for their roles in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Felony charges were filed today in the U.S. District Court for the Northern District of California, in San Francisco, against Florence Fung of Sacramento, Calif, and Michael Navone of San Rafael, Calif. Fung and Navone are the 39th and 40th individuals to plead guilty or agree to plead guilty as a result of the department’s ongoing antitrust investigations into bid rigging and fraud at public real estate foreclosure auctions in Northern California.
According to court documents, Fung and Navone conspired with others, for various lengths of time between February 2009 and January 2011, not to bid against one another, but instead to designate a winning bidder to obtain selected properties at public real estate foreclosure auctions in San Mateo County. Fung and Navone also were charged with conspiring to use the mail to carry out schemes to fraudulently acquire title to selected properties sold at public auctions, to make and receive payoffs and to divert money to co-conspirators that would have gone to mortgage holders and others. Navone was also charged with participating in similar conspiracies in San Francisco County beginning as early as October 2009 until about January 2011.
“Instead of competing at real estate foreclosure auctions, the conspirators agreed not to bid against one another and determined among themselves who would submit the winning bid, stifling honest and fair competition,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The Antitrust Division and its partners at the FBI continue to remain committed to holding accountable investors who attempt to subvert the competitiveness of the bidding process.”
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 Mateo and San Francisco 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.
“The FBI continues to join the Antitrust Division in holding criminals accountable for bid rigging and fraudulent practices at public real estate foreclosure auctions,” said David J. Johnson, FBI Special Agent in Charge of the San Francisco Field Office. “Anticompetitive practices disrupt a fair marketplace and the FBI will investigate these types of crimes.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for the Sherman Act charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either amount is greater than $1 million. A count of conspiracy to commit mail fraud carries a maximum sentence of 30 years in prison and a $1 million fine. The government can also seek to forfeit the proceeds earned from participating in the conspiracy to commit mail fraud.
Today’s charges are the latest filed by the department in its ongoing investigation into bid rigging and fraud at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa, and Alameda counties, Calif. These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-436-6660, visit www.justice.gov/atr/contact/newcase.html or call the FBI tip line at 415-553-7400.
Today’s charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
**The fraud charge(s) referenced in this press release were
subsequently dismissed on the government’s motion.**Two More Retailers Plead Guilty to Food Stamp FraudRead the Press Release
To Date, Four Retailers Have Pleaded Guilty to Food Stamp Fraud
Baltimore, Maryland – Dae Cho, age 66, and her son Hyung Cho, age 40, both of Catonsville, Maryland, and citizens of Korea who are illegally present in the United States, pleaded guilty today to food stamp and wire fraud in connection with a scheme to illegally redeem food stamp benefits in exchange for cash.
The pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William G. Squires, Jr. of the U.S. Department of Agriculture’s Office of Inspector General, Northeast Region; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
Dae Cho co-owned K&S Market, a convenience store located at 3910 West Belvedere Avenue in Baltimore. Dae and Hyung Cho operated the store. According to their plea agreements and court documents, the store participated in the Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program. In Maryland, the program provides eligible individuals with an electronic benefit transfer (EBT) card called the Independence Card, which operates like a debit card. Recipients obtain EBT cards through the state Department of Human Resources, then use the EBT card to purchase approved food items from participating retailers.
Dae Cho completed the required government form in March of 2004 to become an authorized retailer in the program. Dae and Hyung received training and instruction regarding the requirements of the food stamp program, including that it was a violation of SNAP regulations to trade cash for SNAP benefits. Nevertheless, from June 2011 through May 2013, Dae and Hyung Cho exchanged SNAP benefits for cash at less than face value of the EBT benefits, in violation of the food stamp program rules, and kept up to 50 percent of the benefits for themselves, using the cash to pay rent and other bills. Dae Cho has estimated that about $25,000 to $30,000 worth of food stamp benefits were exchanged in this manner per month and that this occurred approximately 50 times a day.
As a result of these unlawful cash transactions, Dae and Hyung Cho obtained more than $1,400,000 in payments for food sales that never occurred.
The defendants face a maximum sentence of 20 years in prison. U.S. District Judge George L. Russell, III scheduled their sentencing for February 21, 2014, at 10:00 a.m. The defendants have agreed to the entry of an order to forfeit $1,400,000. The defendants have further agreed not to object to any removal proceedings that may be brought to remove them from the United States upon completion of their sentence.Amara Cisse, age 50, who owned Simbo Food Mart, located at 2103 West Pratt Street in Baltimore, and his wife Fanta Keita, age 45, who worked at the store, both of Windsor Mill, Maryland, pleaded guilty on December 3, 2013 to food stamp fraud in connection with a similar scheme to illegally redeem food stamp benefits in exchange for cash. They are scheduled to be sentenced on March 6, 2014, at 3:00 p.m.
United States Attorney Rod J. Rosenstein praised USDA’s Office of Inspector General and FBI for their work in the investigation. U.S. Attorney Rosenstein expressed appreciation to Secretary Ted Dallas and the Maryland Department of Human Resources, as well as U.S. Citizenship and Immigration Services - Office of Fraud Detection and National Security for their assistance in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Judson T. Mihok, who is prosecuting the case.
Two Georgetown Men Plead Guilty to Social Security FraudRead the Press Release
BOSTON - Two Georgetown men pleaded guilty today to defrauding the Social Security Administration of $105,158.
Charles Flynn, 35, and Steven Grondell, 44, pleaded guilty to theft of public money. In November 2013, they were charged in a felony Information. Sentencing is scheduled for March 18, 2014.
Flynn began receiving Social Security disability benefits in 2004. In 2008, however, while still collecting disability benefits, Flynn began working at the iParty store in Peabody under the identity of his partner, Steven Grondell. Flynn did not report this work to Social Security. In fact, in a benefits review in November 2012, he falsely stated that he had not worked since about 2003. Flynn’s income from iParty, which totaled about $30,000 to $40,000 per year, would have made him ineligible to receive disability benefits. Grondell aided and abetted this scheme by allowing Flynn to use his identity to work at iParty and by helping to cover up the fraud by claiming the iParty income on his own tax returns.
United States Attorney Carmen M. Ortiz; Scott Antolik, Special Agent in Charge of the Office of Inspector General, Social Security Administration, Office of Investigations – Boston Field Division; and Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston, made the announcement today. The case is being prosecuted by Special Assistant United States Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Trenton Man Admits Possession of Three Guns, Including Loaded Semi-Automatic RifleRead the Press Release
TRENTON, N.J. – A Trenton, N.J., man with a previous conviction for drug distribution today admitted possessing three firearms, including a loaded semi-automatic rifle and a loaded revolver, U.S. Attorney Paul J. Fishman announced.
Isaiah Harris, 26, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of being a convicted felon in possession of firearms and ammunition.
According to documents filed in this case and statements made in court:
At approximately 6:00 a.m. on Nov. 15, 2012, law enforcement officers entered a residence on Stuyvesant Avenue in Trenton to execute an unrelated warrant for Harris’ arrest and encountered Harris in a bedroom on the second floor. They recovered a loaded Taurus .38-caliber revolver from the bed Harris had been occupying and later discovered in the bedroom a loaded Norinco SKS, 7.62 semi-automatic rifle and a partially disassembled second Norinco SKS, 7.62 semi-automatic rifle. Harris admitted at his plea hearing that he possessed these weapons.
The firearms charge to which Harris pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for March 25, 2014.
U.S. Attorney Fishman credited special agents and task force officers of the ATF’s Trenton Field Office, under the direction of Acting Special Agent in Charge George Belsky in Newark, N.J., and law enforcement officers from the Trenton Police Department, under the direction of Police Director Ralph Rivera Jr.; the Mercer County Sheriff’s Office, under the direction of Sheriff John Kemler; and the Mercer County Prosecutor’s Office, under the direction of Prosecutor Joseph L. Bocchini Jr., for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney John E. Clabby of the U.S. Attorney’s Office Criminal Division in Trenton.13-471
Defense counsel: Assistant Federal Public Defender Lisa Van Hoeck Esq., Trenton
Harris, Isaiah Information
Trenton Man Admits Possession of Three Guns, Including Loaded Semi-Automatic RifleRead the Press Release
TRENTON, N.J. – A Trenton, N.J., man with a previous conviction for drug distribution today admitted possessing three firearms, including a loaded semi-automatic rifle and a loaded revolver, U.S. Attorney Paul J. Fishman announced.
Isaiah Harris, 26, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of being a convicted felon in possession of firearms and ammunition.
According to documents filed in this case and statements made in court:
At approximately 6:00 a.m. on Nov. 15, 2012, law enforcement officers entered a residence on Stuyvesant Avenue in Trenton to execute an unrelated warrant for Harris’ arrest and encountered Harris in a bedroom on the second floor. They recovered a loaded Taurus .38-caliber revolver from the bed Harris had been occupying and later discovered in the bedroom a loaded Norinco SKS, 7.62 semi-automatic rifle and a partially disassembled second Norinco SKS, 7.62 semi-automatic rifle. Harris admitted at his plea hearing that he possessed these weapons.
The firearms charge to which Harris pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for March 25, 2014.
U.S. Attorney Fishman credited special agents and task force officers of the ATF’s Trenton Field Office, under the direction of Acting Special Agent in Charge George Belsky in Newark, N.J., and law enforcement officers from the Trenton Police Department, under the direction of Police Director Ralph Rivera Jr.; the Mercer County Sheriff’s Office, under the direction of Sheriff Jeff Gray; and the Mercer County Prosecutor’s Office, under the direction of Prosecutor Joseph L. Bocchini Jr., for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney John E. Clabby of the U.S. Attorney’s Office Criminal Division in Trenton.13-471
Defense counsel: Assistant Federal Public Defender Lisa Van Hoeck Esq., Trenton
Harris, Isaiah Information
Topeka Man Sentenced for Possessing Pipe BombRead the Press Release
TOPEKA, KAN. - A Topeka man has been sentenced for possessing a pipe bomb, U.S. Attorney Barry Grissom said today.
Kyle C. Roe, 29, Topeka, Kan., was sentenced today to 33 months in federal prison. Roe pleaded guilty to one count of receiving and possessing a pipe bomb. In his plea, he admitted that on Nov. 13, 2012, officers of the Topeka Police Department stopped a car in which he was a passenger. Roe was arrested on an active felony warrant. He told officers that he had a bomb in his pocket. An examination showed the device to consist of metal tubing, PVC pipe, a cardboard tube, pyrotechnic fuse, paper and lead end plugs and smokeless powder. Explosion of the device would propel fragments of the tubes and end plugs in all directions at velocities that could cause serious injury or death to anyone near the explosion.
Co-defendant Joseph E. Rogers, who was the driver of the car, is set for sentencing Jan. 27.
Grissom commended the Topeka Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Richard Hathaway for their work on the case.
Topeka Man Sentenced for Possessing Gun During Drug TraffickingRead the Press Release
TOPEKA, KAN. - A Topeka man who pleaded guilty to possessing a .40 caliber pistol in furtherance of drug trafficking has been sentenced to federal prison, U.S. Attorney Barry Grissom said today.
Malik T. Yates, 20, Topeka, Kan., was sentenced Monday to 30 months in federal prison. He pleaded guilty to one count of unlawful possession of a firearm in furtherance of drug trafficking. In his plea, he admitted that on March 1, 2013, members of the Kansas Bureau of Investigation Task Force served a search warrant at his residence in Topeka. They seized methamphetamine, a .40 caliber pistol and $3,000 cash.
Grissom commended the Kansas Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Richard Hathaway for their work on the case.
Three Defendants Indicted for Allegedly Swindling 54 Victims of $220,000 in Fees in Mortgage “Rescue” Fraud SchemeRead the Press Release
CHICAGO ― Three defendants who operated Washington National Trust, which was not licensed in Illinois as either a trust or a mortgage company, are facing federal fraud charges for allegedly swindling approximately $220,000 from at least 54 homeowners after falsely promising to save their homes from foreclosure and lower their monthly mortgage payments. The alleged mortgage “rescue” fraud scheme primarily preyed upon Hispanic victims in and around Aurora since late 2011.
One defendant, CARLOS RAYAS, 39, of Aurora, whose loan originator license was revoked by state regulators, was arrested today. He pleaded not guilty before U.S. Magistrate Judge Sheila Finnegan and was released on his own recognizance. A status hearing was set for Jan. 10 in U.S. District Court.
Arrest warrants were issued for MELVIN T. BELL, 37, also known as “Alex Crown,” “Minister Bey,” “Sovereign King Bey,” “King Bey,” and “S.K. Bey,” and MONICA HERNANDEZ, 43, Rayas’ cousin and a former licensed real estate broker. Both Bell and Hernandez were last known to reside in Oswego.
Bell and Hernandez were each charged with four counts of mail fraud, and Rayas was charged with two counts of mail fraud, in an indictment that was returned last week by a federal grand jury and unsealed today. The indictment also seeks forfeiture of approximately $220,000.
According to the indictment, the defendants marketed the official-sounding Washington National Trust as a business providing a financial assistance program for homeowners that was operated and controlled by wealthy Native Americans and was exempt from state and federal laws. In exchange for fees ranging between $5,000 and $10,000 per property, the defendants claimed that Washington National Trust would lower the homeowners’ existing mortgage payments by half and defeat any foreclosure. All three defendants knew, however, that Washington National Trust was not licensed to conduct loan originations and modifications in Illinois and could not lower mortgage payments or defeat foreclosure.
Bell, Hernandez, and Rayas allegedly falsely promised that Washington National Trust would pay off and acquire homeowners’ mortgages, and once that happened, the homeowners would owe only half the original mortgage to Washington National Trust, due over five years and free of any interest and property taxes. To effect this so-called “mortgage rescue,” the defendants had homeowners sign documents and deeds purportedly appointing Washington National Trust as trustee and transferring title of their homes to the business, the indictment alleges. As part of the scheme, the defendants recorded fraudulent documents and deeds in Kane, Kendall and other counties to delay foreclosure and to make it appear that their business was the homeowners’ trustee, the charges add.
The indictment also alleges that the defendants falsely promised that the fees paid by homeowners would go toward reducing their principal balance after Washington National Trust acquired the loan from the lender. Instead, Bell and Hernandez used the fees to pay for marketing and operating the business, including making payments to Rayas and others who referred homeowners to them, as well as for various personal expenses, including meals, travel, and merchandise.
All three defendants allegedly concealed from homeowners that the Kane County Circuit Court had issued orders in September and October 2012 barring Washington National Trust from further filing and recording deeds. They also allegedly concealed that the Illinois Department of Financial and Professional Regulation had issued orders in December 2012 and February 2013, first, to Washington National Trust to stop using the word “trust” and, later, to all three defendants to stop engaging in unlawful residential mortgage activity.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Tony Gómez, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. The Illinois State Police also participated in the investigation.
The government is being represented by Assistant U.S. Attorney Jessica Romero.
Each count of mail fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, or an alternative fine totaling twice the gross gain or twice the loss, whichever is greater, and restitution is mandatory. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
An indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Tax Preparer Sentenced for Federal Tax ViolationsRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas - A Tax Preparer has been sentenced to federal prison for tax violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Wellington Mandhlazi pleaded guilty on May 16, 2013 to aiding and assisting in the preparation of fraudulent tax returns and was sentenced to 21 months in federal prison on Dec. 16, 2013 by U.S. District Judge Ron Clark. Mandhlazi was also ordered to pay restitution in the amount of $147,851.00.
According to the court documents, in 2009, Mandhlazi operated an income tax preparation business. Mandhlazi admitted that he assisted in the preparation of false federal income tax returns and included false items for educational expenses and education tax credits. Mandhlazi also admitted that his false statements were made for the purpose of defrauding the Internal Revenue Service.
The estimated tax loss related to the false federal income tax returns prepared as a result of Mandhlazi’s fraudulent conduct, on behalf of himself and other taxpayers, was $147,851.00. Mandhlazi must report on or before Feb. 4, 2014, to begin serving his prison sentence.
This case was investigated by the IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Andy Williams.
St. Louis City Man Sentenced on Charges Involving the Assault of A Federal OfficerRead the Press Release
St. Louis, MO - JAMES EDWARD JONES was sentenced to 20 years in prison. Jones pled guilty in September to federal gun and assault charges involving the April 18, 2013, assault of a federal officer and selling crack cocaine to an undercover officer. He appeared today before United States District Judge Audrey G. Fleissig.
According to court documents, on April 15, 2013, Dwayne Crayton sold crack cocaine to an undercover agent. Three days later on April 18, 2013, his brother Frederick Crayton and James Jones arranged to sell three firearms to an ATF undercover agent and two confidential informants. During a struggle involving several firearms, Frederick Crayton assaulted the undercover agent in an attempt to rob the agent of the money that was to be used to buy the three firearms.
Frederick Crayton, St. Louis City, was sentenced to 168 months in prison on gun and assault charges involving the April 18, 2013, assault of a federal officer. His brother Dwayne Crayton, also of St. Louis City, was sentenced to 32 months in prison on charges of selling crack cocaine to an undercover officer. Both were sentenced on October 23, 2013, by United States District Judge Audrey G. Fleissig.
This case was investigated by the Bureau Alcohol, Tobacco, Firearms & Explosives. Assistant United States Attorney Tom Mehan handled the case for the U.S. Attorney's Office.
Smoke Shop Owner and Realtor Head to Federal Prison for Structuring Financial TransactionsRead the Press Release
CORPUS CHRISTI, Texas – The co-owner of Mr. Nice Guys Smoke Shop and a local real estate agent have been ordered to federal prison following their convictions related to a multi-agency investigation into the structuring of financial transactions, announced United States Attorney Kenneth Magidson. Leroy Mitchan Jr., 34, and Justin Colmenero, 30, previously pleaded guilty as did Mitchan’s wife, Kimberly Davis, 27. All are from Corpus Christi.
Today, U.S. District Judge John D. Rainey, handed Mitchan a sentence of 20 months to be followed by one year of supervised release, while Colmenero will be on probation for three years, but must pay a $6000 fine. In handing down the sentence, Judge Rainey distinguished the roles of all the defendants and noted he had never in his career seen a structuring case this extensive. Davis was sentenced to five months in custody and five months of home confinement on Nov. 18, 2013.
All were arrested in May 2013 on charges relating to their participation in a conspiracy to structure more than $100,000 in cash deposit transactions over a 12-month period with a domestic financial institution in order to avoid the legal reporting requirements of the bank.
The charges came as a result of an investigation in reference to the sale of synthetic marijuana. Mitchan and Davis, who own Mr. Nice Guys, also own another smoke shop located at 5433 S. Staples St. in Corpus Christi as well as a used car dealership located at 5757 Everhart Rd. From February 2012 through January 2013, officers with the Corpus Christi Police Department (CCPD) seized more than 40.93 grams of synthetic marijuana during numerous undercover purchases from both of the smoke shops. On Feb. 1, 2013, CCPD executed state search warrants at the shops and seized a total of 1.5 kilograms of synthetic marijuana as well as various smoking paraphernalia such as pipes, bongs, glassware, grinders and scales. Also seized were detailed drug ledgers and price lists relating to the sale of synthetic marijuana along with documents guiding employees on the proper coded vocabulary to use when describing the illegal items being sold to customers.
The Drug Enforcement Administration (DEA) learned Mitchan and Davis had recently purchased three real estate properties in Corpus Christi and were making payments on these properties with large cash transactions. A preliminary review of bank accounts revealed several cash deposits under $10,000. Internal Revenue Service – Criminal Investigation (IRS-CI) then initiated the financial investigation.
The Bank Secrecy Act of 1970 (BSA) requires financial institutions to file reports with the Treasury Department of cash transactions exceeding $10,000.
As part of the plea, Davis admitted she conducted three separate deposits in one morning at Members First Credit Union. She first deposited $9,000 in the drive-thru at 7:39 a.m., then drove away and immediately re-entered the drive-thru lane and conducted a second cash deposit of $9,000 at 8:17 a.m. She drove away again but returned and conducted a third cash deposit of $8,801 at 9:16 a.m. In another instance, she conducted two separate deposits right after the other – the first in the lobby of the bank and the another in the drive-thru lane approximately 30 minutes later. The total amount for all five deposits was $44,101. All of these deposits did not exceed the $10,000 currency transaction filing requirement for financial institutions and were made in an attempt to avoid the reporting requirements.
Mitchan admitted he worked with Colmenero, a local real estate agent, and provided him with large amounts of cash. Mitchan told Colmenero to deposit it into his personal bank account and later withdraw the money in the form of cashier’s checks or via Moneygram to pay for property he was purchasing. The total amount Colmenero structured at the direction of Mitchan was approximately $461,000. Mitchan directed him and others to structure currency transactions to avoid the threshold reporting requirement and had even asked about the success of structuring the money without having any of the bank tellers ask any questions.
Mitchan and Davis have also agreed to the criminal forfeiture of three pieces of real property located in Nueces County, valued at approximately $1,200,000, approximately $396,000 in cash as well as 42 vehicles valued at approximately $409,000.
Previously released on bond, Mitchan was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the criminal charges was conducted in Corpus Christi lead by IRS-CI, DEA and CCPD. The case is being prosecuted by Assistant Unites States Attorneys Hugo R. Martinez and Lance A. Watt.
Seven Individuals Sentenced in Federal CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
MARTINSBURG, WEST VIRGINIA – Seven individuals have been sentenced by Judge Gina M. Groh in Federal Court.
United States Attorney William J. Ihlenfeld, II announced that:
DANIEL ROBERT MYERS, JR., age 35, and JORDAN BROOKE GAMBRELL, age 20, both of Hedgesville, West Virginia, were sentenced to 46 months in prison and 18 months in prison respectively, for “Possession with Intent to Distribute Heroin” on November 15, 2012. MYERS and GAMBRELL were remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was prosecuted by Assistant United States Attorney Jarod J. Douglas and investigated by the Eastern Panhandle Drug & Violent Crime Task Force, consisting of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, and the Berkeley County Sheriff’s Department.
DANNY RAY TERRY, age 54, of Martinsburg, was sentenced to 37 months in prison for “Failure to Register and Update Registration as a Sex Offender” when he moved to West Virginia in 2011. TERRY was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was prosecuted by Assistant U.S. Attorney Stephen L. Vogrin and investigated by the United States Marshals Service.
BRIAN NICKENS, age 38, of Shenandoah Junction, West Virginia, was sentenced to 30 months in prison for “Drug User in Possession of a Firearm” on March 26, 2012. NICKENS was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was prosecuted by Assistant U.S. Attorney Paul T. Camilletti and investigated by the Jefferson County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
ERIC SCOTT TAYLOR, age 34, of Gerrardstown, West Virginia, was sentenced to 4 months in prison for the “Distribution of Marijuana.” TAYLOR was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was prosecuted by Douglas and investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives.
PERRY JOSEPH JENKINS, age 33, of Martinsburg, was sentenced to 4 years probation for the “Sale of Firearms to a Prohibited Person.” This case was prosecuted by Camilletti and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
BENJAMIN CHAVIS, II, age 54, of Martinsburg was sentenced to 3 years probation for the “Distribution of Heroin.” This case was prosecuted by Douglas and investigated by the Eastern Panhandle Drug & Violent Crime Task Force, consisting of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, and the Berkeley County Sheriff’s Department.
Santa Ana Pueblo Woman Sentenced to Federal Prison for Assault ConvictionRead the Press Release
ALBUQUERQUE – Jayleen Armijo, 30, a member and resident of Santa Ana Pueblo, N.M., was sentenced to 24 months in federal prison followed by two years of supervised release for her conviction on an assault charge.
Armijo was indicted in Feb. 2013, and charged with assault resulting in serious bodily injury. According to the indictment, Armijo assaulted a woman on Dec. 20, 2012, in a location within the Santa Ana Pueblo. The victim sustained a broken orbital socket, a broken nose and over a dozen bite wounds which left permanent scars as a result of the assault.
On August 29, 2013, Armijo entered a guilty plea without the benefit of a plea agreement and admitted assaulting the victim on Dec. 20, 2013. Armijo further admitted that the victim sustained serious injuries as a result of the assault.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services and the Santa Ana Tribal Police Department and was prosecuted by Assistant U.S. Attorney Paul Mysliwiec.
Roswell Man Pleads Guilty to Unlawful Possession of a Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Robert Lopez, 27, of Roswell, N.M., pleaded guilty this morning in Las Cruces federal court to being a felon in possession of a firearm and ammunition. Lopez entered his guilty plea without the benefit of a plea agreement.
Lopez was arrested in June 2013, based on a criminal complaint charging him with being a felon in possession of a firearm and ammunition, and subsequently was indicted on that same charge. The indictment charged Lopez with unlawfully possessing a firearm and ammunition in Chaves County, N.M., on July 19, 2012. At the time, Lopez was prohibited from possessing firearms or ammunition because he previously had been convicted of a felony offense, possession of methamphetamine, in the 5th Judicial District Court for the State of New Mexico.
Court filings reflect that on July 19, 2012, Lopez assaulted a Chaves County Sheriff’s deputy while the deputy was attempting to execute a warrant for Lopez’s arrest. Lopez initially fled from the deputy and then assumed a fighting stance, hitting the deputy in the head and biting the deputy’s right ear. After the deputy subdued and arrested Lopez, Lopez told the deputy that he had a firearm in his vehicle. The Chaves County Sheriff’s Office then obtained a search warrant for the vehicle and recovered a pistol loaded with ten rounds.
During today’s proceedings, Lopez pled guilty to the indictment and admitted that he unlawfully possessed a firearm and ammunition on July 19, 2012. At his sentencing hearing, which has yet to be scheduled, Lopez faces a maximum penalty of ten years in prison.
This case was investigated by the Roswell office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Chaves County Sheriff’s Office, with assistance from the 5th Judicial District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
Resident of Florida and Ohio Admits Defrauding Charter Flight Company and Others of Hundreds of Thousands of DollarsRead the Press Release
NEWARK, N.J. - A resident of Florida and Ohio today admitted his role in defrauding a charter flight company and other merchants of hundreds of thousands of dollars in luxury goods and services, U.S. Attorney Paul J. Fishman announced.
Dante G. Dixon, 45, of Miami, Fla., and Akron, Ohio, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with conspiracy to commit wire fraud.According to documents filed in this case and statements made in court:
From May through June of 2013, Dixon and others conspired to fraudulently obtain at least three private charter flights from Jet Aviation, an international business aviation services company, with U.S. headquarters in Teterboro, N.J., which provides charter flight services. Dixon and others also conspired to obtain tens of thousands of dollars in other luxury goods and services, all via sham lines of credit issued to a well-known financial institution, for the defendants and others’ use by misrepresenting that they were employees at the financial institution.
On May 5, 2013, an individual using the name “Josh Stevens” called Jet Aviation=s offices in Chicago, Ill., and Van Nuys, Calif., to inquire about its private charter flight services. That individual identified himself as being employed as a senior vice president at a well-known financial institution and provided an email address purporting to be affiliated with the financial institution. A Jet Aviation employee sent a draft Charter Services Agreement to the provided email address. The agreement was signed by “Josh Stevens” and returned to Jet Aviation on May 9, 2013, falsely listing “Josh Stevens” as a senior vice president and Dixon as a vice president at the well-known financial institution. The aviation company established an account and a line of credit for $350,000, which the defendants and others used to take four private charter flights.
As a result of their misrepresentations to Jet Aviation, Dixon and others fraudulently obtained private high-end charter flights and limousine car services, with a total value of $175,790, for which Jet Aviation never received payment.
Dixon and others made similar misrepresentations about their purported employment at the financial institution to other luxury service providers and obtained approximately $20,000 in luxury watches, sunglasses, and sterling silver and leather business cardholders, and approximately $25,500 in hotel stays at a luxury hotel in Miami.
As a result of their scheme, Dixon and others fraudulently obtained more than $220,000 in luxury goods and services.The conspiracy to commit wire fraud to which Dixon pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000. Sentencing is scheduled for April 23, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today=s guilty plea.
The government is represented by Assistant U.S. Attorney Aaron Mendelsohn of the U.S. Attorney=s Office Economic Crimes Unit in Newark.
This case was brought in coordination with President Barack Obama’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’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 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
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Defense counsel: Lorraine Gauli-Rufo Esq., Verona, N.J.Dixon, Dante Information
Resident of Florida and Ohio Admits Defrauding Charter Flight Company and Others of Hundreds of Thousands of DollarsRead the Press Release
NEWARK, N.J. - A resident of Florida and Ohio today admitted his role in defrauding a charter flight company and other merchants of hundreds of thousands of dollars in luxury goods and services, U.S. Attorney Paul J. Fishman announced.
Dante G. Dixon, 45, of Miami, Fla., and Akron, Ohio, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with conspiracy to commit wire fraud.According to documents filed in this case and statements made in court:
From May through June of 2013, Dixon and others conspired to fraudulently obtain at least three private charter flights from Jet Aviation, an international business aviation services company, with U.S. headquarters in Teterboro, N.J., which provides charter flight services. Dixon and others also conspired to obtain tens of thousands of dollars in other luxury goods and services, all via sham lines of credit issued to a well-known financial institution, for the defendants and others’ use by misrepresenting that they were employees at the financial institution.
On May 5, 2013, an individual using the name “Josh Stevens” called Jet Aviation=s offices in Chicago, Ill., and Van Nuys, Calif., to inquire about its private charter flight services. That individual identified himself as being employed as a senior vice president at a well-known financial institution and provided an email address purporting to be affiliated with the financial institution. A Jet Aviation employee sent a draft Charter Services Agreement to the provided email address. The agreement was signed by “Josh Stevens” and returned to Jet Aviation on May 9, 2013, falsely listing “Josh Stevens” as a senior vice president and Dixon as a vice president at the well-known financial institution. The aviation company established an account and a line of credit for $350,000, which the defendants and others used to take four private charter flights.
As a result of their misrepresentations to Jet Aviation, Dixon and others fraudulently obtained private high-end charter flights and limousine car services, with a total value of $175,790, for which Jet Aviation never received payment.
Dixon and others made similar misrepresentations about their purported employment at the financial institution to other luxury service providers and obtained approximately $20,000 in luxury watches, sunglasses, and sterling silver and leather business cardholders, and approximately $25,500 in hotel stays at a luxury hotel in Miami.
As a result of their scheme, Dixon and others fraudulently obtained more than $220,000 in luxury goods and services.The conspiracy to commit wire fraud to which Dixon pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000. Sentencing is scheduled for April 23, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today=s guilty plea.
The government is represented by Assistant U.S. Attorney Aaron Mendelsohn of the U.S. Attorney=s Office Economic Crimes Unit in Newark.
This case was brought in coordination with President Barack Obama’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’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 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
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Defense counsel: Lorraine Gauli-Rufo Esq., Verona, N.J.Dixon, Dante Information
Repeat Fraudster Sentenced for Falsely Claiming over $23 Million in Tax Refunds and Scheming to Defraud Credit UnionsRead the Press Release
IRS Paid More Than $12 Million in “Refunds” to Illegal Alien Previously Convicted of Fraud
Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Makushamari Gozo, age 41, a native of Zimbabwe residing in Baltimore, Maryland, to 11 years in prison, followed by five years of supervised release, for filing claims for more than $23 million in fraudulent alternative fuel tax credits and refunds and personal tax refunds, as well as engaging in schemes to fraudulently obtain more than $3 million in loans from credit unions. Judge Blake also ordered Gozo to pay restitution totaling $202,667.23.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
Gozo previously was convicted of mortgage fraud in 2004 and sentenced to serve 57 months in federal prison. He was determined to be a deportable alien, but was not deported because of issues related to his travel documents.
“Makushamari Gozo was convicted of mortgage fraud in 2004, sentenced to serve 57 months in federal prison, and escaped deportation only because of a technicality,” said U.S. Attorney Rod J. Rosenstein. “He responded by filing fabricated tax returns claiming refunds, which caused the IRS to issue checks for more than $12 million in fraudulent refunds. Mr. Gozo also attempted to obtain over $3 million in fraudulent loans from credit unions.”
According to evidence presented at his one week trial, beginning in 2010, Gozo used several entities he controlled to file fraudulent claims for tax refunds. Gozo filed individual income tax returns falsely claiming that from 2007 to 2011, he earned wages from two of his companies and was entitled to tax refunds totaling more the $417,000. In addition, Gozo filed tax returns falsely claiming that a third company had sustained losses in 2007 through 2009 which entitled Gozo to more than $76,000 in tax refunds. From October 31, 2011 to February 17, 2012, Gozo also filed false excise tax returns claiming that a fourth company was entitled to approximately $22,657,137 in alternative fuel tax refunds and credits based on having purchased or used over 39 million gallons of alternative fuel. In fact, the entities were all sham businesses that existed in name only.
Trial evidence also showed that between July and September 2010, Gozo defrauded several credit unions to obtain fraudulent automobile and business loans. Gozo submitted four loan applications to the credit unions in which he misrepresented his income and employment in order to buy luxury automobiles that Gozo never actually purchased. Gozo also submitted a fraudulent loan application for a $3 million business loan in the name of another one of his sham companies. On the business loan application, Gozo made fraudulent statements about the financial and business affairs of the company in order to make it appear financially successful, and submitted several false corporate tax returns claiming that the company controlled millions of dollars in assets.
United States Attorney Rod J. Rosenstein praised the IRS Criminal Investigation for its work in the investigation and thanked Assistant United States Attorneys David I. Sharfstein and Peter M. Nothstein, who prosecuted the case.
Raymore Man Sentenced for Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Raymore, Mo., man was sentenced in federal court today for possessing thousands of images of child pornography.
Malcolm J. Wolf, 33, of Raymore, was sentenced by U.S. District Judge Dean Whipple to seven years in federal prison without parole. According to court documents, Wolf legally changed his name on April 8, 2011, from Jose Lorenzo Lopez.
On Feb. 4, 2013, Wolf pleaded guilty to one count of attempting to receive child pornography and one count of possessing child pornography.
Federal agents, while conducting an undercover investigation of a Web site sharing child pornography, identified Wolf’s computer as having accessed images of child pornography from the site in January 2011. When agents executed a search warrant at Wolf’s residence, they found six computers and seven loose hard drives that contained thousands of images of child pornography, including hundreds of movies of child pornography. The children depicted in those images and movies ranged in age from babies to teens.
Under the terms of his plea agreement, Wolf must pay a total of $10,000 in restitution to two of the victims portrayed in those images and movies, or $6,000 if he pays the restitution within 30 days of his sentencing date.
This case was prosecuted by Assistant U.S. Attorney Teresa Moore. It was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Queens Man Sentenced to 15 Years in PrisonFor Attempting to Rob and Extort A Bedford FamilyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that BARTEK ZAJKOWSKI, a Polish national, who resided in Queens, New York, was sentenced today by U.S. District Judge Kenneth M. Karas in White Plains federal court to 15 years in prison, consecutive to any sentence imposed in his pending state case in Connecticut, where he is charged with participating in a home invasion. ZAJKOWSKI’s criminal conduct included the attempted extortion of a family by whom he was previously employed and attempted robbery of them in their home in Bedford, Westchester County, New York.
U.S. Attorney Preet Bharara stated: “Bartek Zajkowski became one family’s nightmare of terror and violence. Now, thankfully, the nightmare is over, and we hope his victims can breathe easier. Mr. Zajkowski will be locked up for a long time. The conclusion of this case is a tribute to the cooperative and devoted efforts of law enforcement at every level.”
According to public documents filed in White Plains federal court, and related court proceedings:
ZAJKOWSKI, 23, a Polish citizen living in the United States illegally, had previously worked for a contractor in 2010 at the victims’ residence in Bedford Hills, New York.
On the evening of May 5, 2012, ZAJKOWSKI, dressed in black and armed with a gun, approached the victims’ house. He encountered Victim-1(“the Husband”), bound him with duct tape and plastic ties, and demanded to know where money and valuables were located in the house. The Husband told ZAJKOWSKI that he had expensive paintings and gold and silver items in the residence. ZAJKOWSKI then entered the house, encountered and struggled with Victim-2 (“the Wife”), ultimately shooting her in the stomach with a BB gun. ZAJKOWSKI bound Victim-2 with duct tape and plastic ties, and asked her to direct him to the expensive paintings. After ZAJKOWSKI left the Wife to look for the paintings, she was able to free herself and trigger the house’s alarm. ZAJKOWSKI escaped with no property other than the Husband’s wallet.
Two days later, in the early morning hours of May 7, 2012, ZAJKOWSKI burned down a barn located on the victims’ property. One week later, on May 14, 2012 and May 17, 2012, the victims received two extortion letters from an individual later determined to be ZAJKOWSKI. The letters demanded that the victims pay ZAJKOWSKI $3 million ($1 million for each of their three children) to ensure their family’s safety. In the letters, ZAJKOWSKI also discussed his struggle with the Wife, claimed responsibility for the barn fire, detailed what he had learned about the family through his surveillance of their home, and threatened harm to the victims’ children. ZAJKOWSKI also demanded that the victims deposit the money into a bank account in the Netherlands – a bank account that law enforcement officials later determined to be held by ZAJKOWSKI’s mother’s partner.
On June 1, 2012, the FBI and other law enforcement agents arrested ZAJKOWSKI pursuant to an arrest warrant stemming from a September 2011 home invasion in Ridgefield, Connecticut. Those Connecticut charges are still pending.
Mr. Bharara praised the outstanding investigative work of the FBI’s Westchester County Violent Crimes Task Force, the Westchester County District Attorney’s Office, the Bedford Police Department, the New York State Police, the Westchester County Department of Public Safety and the United States Marshals Service, NY/NJ Regional Fugitive Task Force.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Andrew Bauer and Michael Gerber are in charge of the prosecution.
Prison Sentences Imposed on Three Former Owners of Summt Accommodators in Bend for $13.7 Million FraudRead the Press Release
PORTLAND, Ore. –Yesterday, U.S. District Court Judge Anna J. Brown imposed prison sentences on Mark Neuman (78 months), Tim Larkin (54 months), and Lane Lyons (54 months), for lying to and misleading clients about how they held and used millions in client funds while operating Summit Accommodators, Inc., previously headquartered in Bend, Oregon. In addition to their prison sentences, the defendants must each serve three years of supervised release.
“Attorneys, certified public accountants and business executives who, motivated by greed, lie to clients to gain use of their money for personal purposes are especially deserving of prosecution and punishment,” said U.S. Attorney Amanda Marshall. “This office and our federal and state partners will do whatever it takes to bring dishonest professionals to justice. Besides seeking tough sentences for white-collar fraudsters, we will continue to go after their ill-begotten assets to compensate victims of these schemes.”
On July 3, 2013, on the 17th day of trial, a jury in federal court in Portland convicted the three former owner/operators of Summit Accommodators, Inc., of Bend, of conspiracy to commit mail fraud and conspiracy to commit money laundering in connection with a 10-year fraud scheme. About 10,000 clients entrusted them with almost $1 billion from 1999 to 2008, when the business closed and filed for bankruptcy. The defendants used $75 million of client funds for undisclosed personal investments in real estate, investments in businesses in the Bend area, and loans to business associates and family members.
Neuman and his business partner Brian Stevens, both Certified Public Accountants, created Summit in 1991 to help customers take advantage of lawful federal income tax deferral transactions. In a typical transaction, a customer would sell income producing property, allow Summit to hold the proceeds of the sale, and then buy another income producing property within 180 days. Federal income tax laws then allowed the customer to defer paying taxes on the profits from sale of the first property. Summit eventually opened affiliate offices in Texas, Washington, Utah, Montana, Wyoming, Nevada, and Lake Oswego, Oregon.
In 2002, Neuman and Stevens hired Larkin as Summit’s Chief Operating Officer. In 2005, Neuman and Stevens hired Lyons as Summit’s in-house counsel. In 2006, Larkin and Lyons became equal partners in Summit with Neuman and Stevens.
The trial evidence showed that although Neuman and Stevens began using their clients’ exchange funds for personal investments before 1999, they promised their clients their exchange funds would remain in Summit bank accounts and would only be used to complete their tax deferral exchanges. Neuman was responsible for language in Summit marketing brochures and Summit’s website. Both falsely promised Summit would maintain client funds in bank accounts or in government securities.
From 2004 through October 2008, Summit held between $49 million and $109 million of its customers’ money in a typical month. The defendants routinely transferred large amounts of client money to Inland Capital Corp., another company they owned and controlled. Through Inland, the conspirators used client funds for over 100 real estate projects in Central Oregon in which one or more of them had direct personal interests.
In 2006, defendant Lyons warned his partners in a confidential memo that “the use of exchange funds by Inland constitutes … a misrepresentation to our clients under their exchange agreements” and further stated if the use of client funds came to light “fraud charges will be leveled” against each owner. Despite this warning, the defendants continued to solicit and take in new client funds until days before shutting their doors.
The co-conspirators hid the fraud scheme by concealing from most of Summit’s employees and from most of the owner-operators of Summit’s branch offices that the conspirators were using Summit customer money to invest in real estate and for loans to themselves and others. In February 2007, when Summit’s clients and branch owner-operators began to express concern about the safety of Summit client money, the conspirators lied by saying that all Summit client money was deposited and maintained in financial institutions or invested in highly-secured short term notes.
“Summit clients lost millions while the owners of Summit Accommodators tried to make easy money,” said Kevin Rickett, Acting Special Agent in Charge of the FBI in Oregon. “While today’s sentencing brings about closure to this criminal investigation, we should remember the long-term toll that such scams can have on the victims.”
“Fraud, like many financial crimes, threatens the financial health of our communities,” stated Tamera Cantu, Assistant Special Agent in Charge of IRS Criminal Investigation. “IRS Criminal Investigation is committed to ensure that those who engage in these illegal activities are investigated and brought to justice.”
Summit co-owner Brian Stevens previously pleaded guilty to identical charges and testified against his former partners at trial.
This case was investigated by the Federal Bureau of Investigation; IRS, Criminal Investigation; the United States Postal Inspection Service; and the Oregon Division of Finance and Corporate Securities. Assistant U.S. Attorneys Seth D. Uram and Donna Maddux handled the prosecution of the case.
Phoenix Drug Trafficker Sentenced to 25 Years PrisonRead the Press Release
PHOENIX – On Dec. 16, 2013, Ralph C. Moreno, 53, of Phoenix, was sentenced by Senior U.S. District Judge Roslyn O. Silver to 300 months (25 years) in prison followed by 10 years supervised release, and a $3000 fine. Judge Silver further ordered forfeiture of Moreno’s interest in a Stoeger .40 caliber handgun, a Bushmaster .223 caliber rifle, and $75,366 in U.S. currency. Moreno was found guilty by a federal jury on Sept. 18, 2013, of three felonies - conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and felon in possession of a firearm.
At trial, it was proven that Moreno sold methamphetamine at his Phoenix residence to persons who ultimately intended it to reach associates of the Arizona “Mexican Mafia,” a prison based gang. After a search warrant was obtained for Moreno’s residence, law enforcement found the two firearms listed above and drug proceeds amounting to $75,366 in cash. At the time he committed the offenses, Moreno had two prior state felony convictions for drug trafficking.
The investigation in this case was conducted by the Federal Bureau of Investigation, the Federal Bureau of Prisons, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Arizona Department of Public Safety, and the Arizona Department of Corrections. The prosecution was handled by Michael Lee and Brian Larson, Assistant U.S. Attorney’s, District of Arizona, Phoenix.
CASE NUMBER: CR-11-1865-PHX-ROS
RELEASE NUMBER: 2013-097_MorenoFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Parkersburg Man Sentenced to 2 ½ Years in Prison for Violating Federal Sex Offender Registration LawRead the Press Release
HUNTINGTON, W.Va. – A Parkersburg man was sentenced yesterday to two and a half years in federal prison, followed by 10 years of supervised release for failing to update his sex offender registration as required by the Sex Offender Registration and Notification Act, U.S. Attorney Booth Goodwin announced. Dwaine Allen Collins, also known as “Dwaine Allen Cline,” 54, previously was convicted after a bench trial in September.
“Just last week, I joined fellow law enforcement officials in Beckley to announce the results of a blitz that netted 54 sex offenders who were out of compliance with the law,” U.S. Attorney Booth Goodwin said. “Our message was straightforward: If you are out of compliance, we will track you down and we will bring you to justice.” Goodwin added, “This sentencing helps underscore that sex offender registration is not optional.”
On July 8, 1998, Collins was convicted of two counts of indecent liberties with a child in the Cumberland County Superior Court, in Cumberland, North Carolina. As a result of this sex offense conviction, Collins was required to register as a sex offender for 15 years under federal law.
An investigation conducted by the United States Marshals Service revealed that Collins registered as a sex offender in Ohio on August 22, 2001.The investigation further revealed that on or after February 23, 2011, Collins traveled from Ohio to West Virginia, where he resided in Parkersburg, Wood County, W.Va. Collins was found to have not his sex offender registration in West Virginia as required by the Sex Offender Registration and Notification Act.
As a result of three law enforcement-led regional sweeps, a combined total of more than 1000 sex offender compliance checks have completed over the past year.
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006 (Public Law 109-248). SORNA provides a comprehensive set of minimum standards for sex offender registration and notification in the United States.
The United States Marshals Service conducted the investigation. Assistant United States Attorney Jennifer Rada handled the prosecution. The sentence was imposed by Chief United States District Court Judge Robert C. Chambers.
This case was prosecuted as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
Parkersburg Man Sentenced to 2 ½ Years in Prison for Violating Federal Sex Offender Registration LawRead the Press Release
HUNTINGTON, W.Va. – A Parkersburg man was sentenced yesterday to two and a half years in federal prison, followed by 10 years of supervised release for failing to update his sex offender registration as required by the Sex Offender Registration and Notification Act, U.S. Attorney Booth Goodwin announced. Dwaine Allen Collins, also known as “Dwaine Allen Cline,” 54, previously was convicted after a bench trial in September.
“Just last week, I joined fellow law enforcement officials in Beckley to announce the results of a blitz that netted 54 sex offenders who were out of compliance with the law,” U.S. Attorney Booth Goodwin said. “Our message was straightforward: If you are out of compliance, we will track you down and we will bring you to justice.” Goodwin added, “This sentencing helps underscore that sex offender registration is not optional.”
On July 8, 1998, Collins was convicted of two counts of indecent liberties with a child in the Cumberland County Superior Court, in Cumberland, North Carolina. As a result of this sex offense conviction, Collins was required to register as a sex offender for 15 years under federal law.
An investigation conducted by the United States Marshals Service revealed that Collins registered as a sex offender in Ohio on August 22, 2001.The investigation further revealed that on or after February 23, 2011, Collins traveled from Ohio to West Virginia, where he resided in Parkersburg, Wood County, W.Va. Collins was found to have not his sex offender registration in West Virginia as required by the Sex Offender Registration and Notification Act.
As a result of three law enforcement-led regional sweeps, a combined total of more than 1000 sex offender compliance checks have completed over the past year.
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006 (Public Law 109-248). SORNA provides a comprehensive set of minimum standards for sex offender registration and notification in the United States.
The United States Marshals Service conducted the investigation. Assistant United States Attorney Jennifer Rada handled the prosecution. The sentence was imposed by Chief United States District Court Judge Robert C. Chambers.
This case was prosecuted as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
Olmsted Falls Man Sentenced to Two Years in Prison for Copper TheftRead the Press Release
An Olmsted Falls man was sentenced to two years in prison today, the fifth person sentenced to prison for their roles in a conspiracy to steal copper from two dozen substations in Northeast Ohio owned by First Energy or Cleveland Public Power, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office.
William Bertini, 26, was also ordered to pay more than $206,000 in resitution to First Energy Corp. by U.S. District Judge Benita Pearson.
Bertini and six other men pleaded guilty earlier this year to conspiracy to damage energy facilities. Previously sentenced are:
Christopher M. Butts, 27, of Cleveland, to four years and seven months in prison.
Jason B. Kauffman, 35, of Cleveland, to three years and one month in prison.
Julio Torres, 46, of Cleveland, to two year and three months in prison.
Jon T. Lefort, 26, of Cleveland, to one year and three months in prison
Keven Wenson, 22, of Lakewood, to two years of supervised release.
Michael T. Butts, 33, of Brooklyn, is scheduled to be sentenced early next year.
“These sentences should send a message that the theft of copper and other scrap metal is a serious problem in our region, and the targeting of energy facilities additionally poses a significant threat to our national security infrastructure.” Dettelbach said.
“The potential of harm posed by these individuals to enrich themselves while risking lives and posing serious threats to our community will not be tolerated. The FBI and our law enforcement partners will aggressively pursue and bring to justice those individuals who place our community in harm’s way.”
The thefts took place between January and May 2013 and included substations in Brooklyn, Parma, Brecksville, Fairlawn, Medina, Cleveland, Wadsworth, Lakewood, Cuyahoga Heights, Independence, Vermillion, Lorain, Avon Lake, Westlake and Valley View, according to court documents.The 24 substations listed in the indictment have copper material around their bases that facilitated the transmission of electricity. Removal of the copper material from a substation causes a substantial risk of electrical blackouts as well as possible injury or death to utility company employees responsible for maintaining, servicing and repairing the substations, according to court documents.
Christopher and Michael Butts instructed Lefort, Bertini, Kauffman, Wenson and Torres how to remove the copper material from the substation in a way that would minimize the risk of physical harm to the person cutting the wire or cable. The defendants used bolt cutters to cut fencing and/or locks protecting the substations, according to court records.
The defendants then unlawfully extracted the copper wire and materials from the substations, manually carrying it in garbage cans, duffel bags, contractor bags and other containers to “staging areas.” From there, the copper material was transported to scrap yards, where it was sold for cash, according to court documents.
Court documents detail 25 copper thefts and five attempted thefts. It also lists 53 instances where at least some of the defendants sold stolen copper to area scrap yards between January and April 2013.
The defendants collectively sold the stolen copper for more than $15,000. They have collectively been ordered to pay $242,626 to First Energy Corp. for the cost of repairs to the substations.
This case is being prosecuted by Assistant U.S. Attorneys Thomas E. Getz and M. Kendra Klump following an investigation by the Federal Bureau of Investigation, Avon Lake Police Department, Brecksville Police Department, Medina County Sheriff’s Office, Middleburgh Heights Police Department, Valley View Police Department and Northeast Ohio Regional Fusion Center, and assistance from the Medina County Prosecutor’s Office.
Ocean County, N.J., Woman Sentenced to Two Years in Prison for Bankruptcy FraudRead the Press Release
TRENTON, N.J. - An Ocean County, N.J., woman was sentenced today to 24 months in prison for concealing from a bankruptcy trustee profits she had made on a Ponzi scheme investment, U.S. Attorney Paul J. Fishman announced.
Marjorie Parise, 51, of Manahawkin, N.J., previously pleaded guilty before U.S. District Judge Freda L. Wolfson to one count of bankruptcy fraud. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
In 2003, Parise and her husband invested approximately $115,750 with a company known as Global Trading Investments LLC and received in return profits totaling $429,154.91. However, the owners of Global Trading were operating a Ponzi scheme and the profits that Parise received were actually the investments of other individuals. Global Trading subsequently filed for Chapter Seven bankruptcy protection.
On Aug. 24, 2006, a judgment was entered against Parise requiring her to return the profits she had made from her investments in the scheme. Parise instead took numerous steps to fraudulently conceal a significant amount of funds and assets from the trustee, including making false statements and omissions during a deposition in the bankruptcy proceeding.
From Sept. 14, 2006, through Dec. 8, 2006, she also withdrew at least $455,850 in cash from the bank accounts that had not been disclosed to the trustee. Parise made 67 currency withdrawals, none of which exceeded the $10,000 threshold for the filing of Currency Transaction Reports. In November 2006, Parise transferred ownership of her residence from her name only to the names of both her and her husband and increased the home equity line of credit on the home.
On July 7, 2008, Parise filed for individual Chapter Seven bankruptcy protection. On her bankruptcy petition, she fraudulently failed to report millions of dollars in real estate holdings plus hundreds of thousands of dollars in personal assets.
In addition to the prison term, Judge Wolfson sentenced Parise to three years of supervised release and ordered her to pay $353,404 in restitution.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen in Newark, for the investigation.
The government is represented by Assistant U.S. Attorney R. Joseph Gribko of the U.S. Attorney=s Office in Trenton.
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Defense counsel: Michael Pinsky Esq., Haddon Township, N.J.North Port Couple Charged with Conspiring to Defraud the IRS and Filing False Tax Refund ClaimsRead the Press Release
Tampa, FL – Acting United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging James Dee Jaeger (62) and Lora Anne Jaeger (50), both of North Port, with one count of conspiracy to defraud the Internal Revenue Service (“IRS”) and seven counts of causing false and fraudulent claims for tax refunds to be filed with the IRS. If convicted on all counts, each faces a maximum penalty of five years in federal prison for the conspiracy charge and five years’ imprisonment for each false claim charge.
According to the indictment, the Jaegers devised and participated in a scheme to help “taxpayers,” including themselves, obtain fraudulent tax refunds from the IRS. The scheme was premised upon the “redemption theory,” which is a fraudulent notion that individuals are not responsible for their common personal debt obligations such as home mortgages, unpaid credit card bills, and lines of credit, and may instead seek money from the IRS to repay these outstanding obligations. Collectively, at least fifteen tax returns were filed as part of the scheme, seeking refunds totaling $2,583,207.70. The indictment further alleges that the Jaegers instructed taxpayers on how to conceal fraudulent tax refunds and how to frustrate the lawful collection efforts of the IRS.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It will be prosecuted by Assistant United States Attorney Matthew J. Mueller.
New Orleans Elevation Company and Its Owner, Ramon Santos, Sentenced for Conspiracy to Commit Money LaunderingRead the Press Release
RENDON CONSTRUCTION, LLC, a New Orleans-based house raising, leveling, and foundation repair company, and its owner, RAMON SANTOS, age 43, a resident of Kenner, were sentenced today in federal court today before U. S. District Judge Jay C. Zainey for conspiring to commit money laundering, announced U.S. Attorney Kenneth Allen Polite, Jr. RENDON was sentenced to two years of organizational probation and a special assessment of $400. SANTOS was sentenced to three years of probation and a $100 special assessment. The Court declined to impose a fine on either defendant because they had agreed to forfeit $281,810 to the United States.
According to court documents, between April 2011 and July 2011, RENDON and SANTOS conspired with each other to conduct financial transactions designed to conceal and disguise the nature and source of the proceeds of harboring, encouraging and inducing aliens to reside in the United States, and to promote the harboring, encouraging and inducing aliens. In furtherance of the conspiracy, RENDON, through SANTOS, issued checks amounting to approximately $281,810 to Diablo Construction, a shell company. Those checks, which represented the proceeds of harboring, encouraging and inducing aliens to reside in the United States through employment at RENDON job sites, were cashed by SANTOS, and the cash was used to pay RENDON's illegal alien workers.
"The use of illegal labor and schemes to obscure such conduct prevents honest businesses from competing on a level playing field against those who break the law," stated U. S. Attorney Polite.
"Companies that violate federal law by employing workers illegally 'under the table' gain an unfair advantage over businesses that play by the rules," said Raymond R. Parmer Jr., special agent in charge of HSI New Orleans. "HSI is committed to investigating and seeking prosecution of illegal employment practices to protect the legitimate workers and businesses that support our nation’s economy."
The case was investigated by Homeland Security Investigations (HSI), with the assistance of the Internal Revenue Service (IRS). The case was prosecuted by Special Assistant U. S. Attorney Robert Weir and Assistant U.S. Attorney David Haller.
New Jersey Ophthalmologist Admits Lying to Federal Agents During Fraud Investigation About Reuse of Lucentis VialsRead the Press Release
NEWARK, N.J. - An ophthalmologist with a medical practice in Englewood, N.J., admitted today to lying to federal agents during a health care fraud investigation into the reuse of single-use vials of prescription Lucentis medication for multiple patients, U.S. Attorney Paul J. Fishman announced.
Bernard J. Fowler, 68, of Mahwah, N.J., pleaded guilty to an information charging him with making false statements to federal agents with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). He entered his plea before U.S. District Judge Susan D. Wigenton in Newark federal court.
According to documents filed in this case and statements made in court:
Fowler was a licensed and board-certified ophthalmologist, operating his own medical practice called Retina Vitreous Consultants, when he was interviewed by HHS-OIG special agents on July 27, 2011. Fowler no longer operates the practice.
During his guilty plea, Fowler admitted that in 2008 and 2009, he had administered injections from one vial of Lucentis to more than one patient on multiple occasions, but told the investigating agents that he had not. Fowler admitted he knew the statement was false and he intended to deceive the agents.
In addition to the potential health risks of reusing single-use vials on multiple individuals, such reuse can generate fraudulent billings to patients and insurers based on the approximately $2,000 cost of a full vial.
The false statements charge carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is scheduled for March 24, 2014.
U.S. Attorney Fishman credited special agents of HHS-OIG, under the direction of Special Agent in Charge Thomas O’Donnell, and the FBI, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorneys Scott B. McBride and R. David Walk of the U.S. Attorney’s Office’s Health Care and Government Fraud Unit.
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Defense counsel: David M. Laigaie Esq., PhiladelphiaFowler, Bernard Information
New Jersey Doctor Sentenced to More Than 11 Years for Writing Illegal Oxycodone Prescriptions in Drug Distribution ConspiracyRead the Press Release
Also Ordered to Pay Approximately $630,000 in Fines and Forfeiture
NEWARK, N.J. - An internal medicine specialist who wrote illegal prescriptions for oxycodone was sentenced today to 136 months in prison for his role in a conspiracy that put tens of thousands of prescription pills on the streets for resale, U.S. Attorney Paul J. Fishman announced.
Michael Durante, 59, of Montclair, N.J., was previously convicted at trial of 16 of the 17 counts in the superseding indictment against him: one count of conspiracy to distribute oxycodone and 15 counts of unlawful distribution of the drug. The jury returned the verdict on the second day of deliberations following a nearly three-month trial before U.S. District Judge Stanley R. Chesler. Judge Chesler imposed the sentence today in Newark federal court.
According to the evidence at trial:
Between July 2009 and March 2011, Durante sold prescriptions for more than 80,000 oxycodone pills to patients who were engaged in drug trafficking. The street-level redistribution of the pills prescribed by Durante was accomplished primarly by two “crews,” one headed by Andre Domando, 49, of Belleville, N.J., and the other by Dennis Abato, 61, of Lakewood, N.J., who each had a stable of patients they brought to Durante’s medical practice in Nutley, N.J. Durante gave them prescriptions for large quantities of oxycodone that would ultimately be sold through the redistribution network.
Recordings played at trial illustrated Durante’s understanding of the illegal distribution he facilitated. For example, in an February 2011 recording, Durante said he knew Domando was reselling the prescriptions for a large profit, stating, “I just know because my friend does the same thing you do. He sells these for a thousand to twelve hundred dollars a bottle.” Durante, referring to prescriptions he provided to Domando over the previous week, then stated “[s]o two last week, four this week – you should have six thousand dollars in your pocket,” adding, “I know what people do with these things. You gotta have at least twelve, fifteen thousand dollars a month of income here.”
Durante was also captured on tape accepting $300 from Domando in exchange for prescriptions, as well as $100 for an extra prescription he sold to an undercover agent. At trial, a witness testified that he delivered envelopes of cash to Durante in exchange for extra prescriptions.
Additionally, Durante falsified medical records in the files of the patients who received the oxycodone prescriptions. For example, Durante falsely documented physical exams, including blood pressure and heart rates, of a patient who was in Florida at the time of Durante’s purported exam. Durante repeatedly omitted from the progress notes for patients many of the additional prescriptions he had sold, or falsely wrote that prescriptions had been provided to replace lost prescriptions – including one note that a dog may have eaten replacement prescriptions he provided to Domando.
In addition to the prison term, Judge Chesler sentenced Durante to three years of supervised release and ordered him to pay $629,461 in restitution. Durante is also required to pay a $4,000 fine. Judge Chesler sentenced Domando to 48 months in prison in November 2013. Abato awaits sentencing.
U.S. Attorney Fishman credited the New Jersey DEA Tactical Diversion Squad, made up of DEA special agents, diversion investigators and intelligence analysts; FBI and IRS-Criminal Investigation special agents; and law enforcement officers from the Essex County Sheriff’s Department and the Elizabeth, Clinton Township (Hunterdon County), Toms River and Newark Police Departments with the investigation.The government is represented by Assistant U.S. Attorneys Anthony Mahajan and Osmar J. Benvenuto of the U.S. Attorney’s Office Criminal Division, and Marion Percell of the Office’s Asset Forfeiture and Money Laundering Unit, in Newark.
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Defense counsel: Cathy Fleming and Harold Ruvoldt Esqs., New YorkNcis Agent Pleads Guilty in International Navy Bribery Scandal; Admits Acting as Mole for Foreign Defense Contractor in Asia PacificRead the Press Release
SAN DIEGO, CA – A special agent with the Naval Criminal Investigative Service (NCIS) pleaded guilty today to participating in a massive international fraud and bribery scheme, admitting he shared with a foreign Navy contractor confidential information about ongoing criminal probes into the contractor’s billing practices in exchange for prostitutes, cash and luxury travel.
U.S. Attorney Laura E. Duffy of the Southern District of California and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division made the announcement after the plea was entered before U.S. Magistrate Judge Jan Adler. The plea is subject to acceptance by U.S. District Judge Janis Sammartino. Sentencing was set for March 7 at 9 a.m. before Judge Sammartino.
In his plea agreement, Supervisory Special Agent John Bertrand Beliveau Jr., 44, pleaded guilty to conspiracy to commit bribery, which carries a maximum penalty of five years in prison, and bribery, which carries a maximum penalty of 15 years in prison. In his plea agreement, Beliveau acknowledged that he regularly searched confidential NCIS databases for reports of investigations related to the contractor, Leonard Glenn Francis, chief executive of Singapore-based Glenn Defense Marine Asia (GDMA). Beliveau admitted that, over the course of years, he helped Francis dodge multiple criminal investigations by providing copies of these reports plus advice and counsel on how to respond to, stall, and thwart the NCIS probes.
Beliveau is one of five Navy officials and civilian contractors who are implicated so far in the widening corruption case involving hundreds of millions of dollars of Navy contracts. In addition to Beliveau and Francis, also charged are U.S. Navy Commanders Michael Vannak Khem Misiewicz and Jose Luis Sanchez and GDMA executive Alex Wisidagama. The charges against Francis, Misiewicz, Sanchez and Wisidagama are merely allegations, and the defendants are presumed innocent until and unless proven guilty.
“Instead of doing his job, John Beliveau was leaking confidential details of investigations to the target himself,” said U.S. Attorney Laura Duffy. “This is an audacious violation of law for a decorated federal agent who valued personal pleasure over loyalty to his colleagues, the U.S. Navy and ultimately his own country. His admissions are a troubling reminder that corruption may exist even among those entrusted with protecting our citizens and upholding our laws.”
U.S. Attorney Duffy praised law enforcement partners, and in particular she acknowledged Defense Criminal Investigative Service, NCIS and the Navy for taking extraordinary measures to weed out corruption from its ranks. “The Navy has extended enormous cooperation and assistance in this investigation, and we have worked closely to achieve justice, to protect national security and to safeguard American defense dollars.”
“Today, John Beliveau has admitted to accepting lavish gifts in exchange for revealing sensitive law enforcement information to a primary target of this massive bribery investigation," said Acting Assistant Attorney General Raman. “For nearly two years, Beliveau deliberately leaked the names of cooperating witnesses, reports of witness interviews, and plans for future investigative steps. Through his corrupt conduct, Beliveau helped the target of the investigation evade the reach of law enforcement, and cost the U.S. Navy millions of dollars. Thanks to the Navy's extensive cooperation and assistance, and the hard work of the NCIS and DCIS agents assigned to this ongoing investigation, we have now been able to hold him to account.”
“John Beliveau's reprehensible actions, providing sensitive information to the targets of ongoing fraud investigations and accepting bribes, tragically tarnished his NCIS badge,” said NCIS Director Andrew Traver. “Nevertheless, the tireless and dedicated work of NCIS and DCIS effectively brought this to a halt, and these agencies continue to vigilantly protect Department of Navy personnel and resources.”
“Today's guilty plea of former NCIS Special Agent John Beliveau is part of an ongoing joint effort by the Defense Criminal Investigative Service, the Naval Criminal Investigative Service and our enforcement partners to identify, investigate and bring to justice those seeking to enrich themselves at the expense of U.S. taxpayers,” said James B. Burch, Deputy Inspector General for Investigations, Office of the Inspector General, Department of Defense. “While the conduct of a vast majority of those in the U.S. Navy and law enforcement community is beyond reproach, we will vigorously pursue those individuals who put the safety and security of U.S. Navy personnel at risk. The conduct of former Special Agent Beliveau is reprehensible and today's guilty plea demonstrates the Defense Criminal Investigative Service will continue to pursue allegations of fraud and corruption that puts the Warfighter at risk.”
According to the plea agreement, Beliveau’s criminal conduct began in January of 2011 when he was stationed in Singapore, and continued for more than two years, even after Beliveau returned to the NCIS office in Quantico, Virginia, in April of 2012.
Among the law enforcement-sensitive information provided by Beliveau to Francis were the identities of the subjects of the investigations; information about witnesses, including identifying information about cooperating witnesses and their testimony; the particular aspects of GDMA’s billings that were of concern to the investigations; the fact that the investigations had obtained numerous email accounts and the identities of those accounts; the particulars about bank records and financial information sought by the investigations; the reports to prosecutors and their interactions with the investigations; and planned future investigative activities.
According to information provided in court, when authorities became aware of Beliveau’s duplicity, they began planting bogus reports in the system, including one that falsely indicated the investigations of Francis were going to be closed. Soon after that, an emboldened Francis came to San Diego from Singapore for a meeting with Navy brass, and Francis was arrested. Beliveau was taken into custody the same day in Virginia.
All told, Beliveau leaked information to Francis about criminal investigations into GDMA’s overbilling scheme that cost the Navy at least $7 million in fraudulent overpayments for “husbanding” services such as food, fuel and other supplies and services to the ships, according to the plea agreement.
In return for leaks of internal NCIS information and advice from Beliveau, Francis allegedly provided the agent with envelopes containing cash on at least five occasions, along with luxury travel from Virginia to Singapore, the Philippines and Thailand, the plea agreement stated. On many occasions, beginning in 2008 and continuing through 2012 while Beliveau was posted in Singapore, Francis allegedly provided the NCIS agent with prostitutes, lavish dinners, entertainment and alcohol at high-end nightclubs. The tab for each of these outings routinely ran into the thousands of dollars.
According to court records, in April of 2012 Beliveau complained to Francis, saying, “You give whores more money than you give me,” and, “I can be your best friend or worst enemy.”
Beliveau admitted that he and Francis tried to hide their illicit activity by employing techniques that Beliveau had learned from his specialized training as a law enforcement agent. These steps included deleting emails, changing email accounts, creating covert email accounts shared by Beliveau and Francis, not transferring funds through the normal banking channels, and using Skype chat and calls to transmit information.
This ongoing investigation is being conducted by NCIS, the Defense Criminal Investigative Service (DCIS) and the Defense Contract Audit Agency. Significant assistance was provided by the Drug Enforcement Administration, Homeland Security Investigations and the DOJ Criminal Division’s Office of International Affairs, the Royal Thai Police and the Corrupt Practices Investigation Bureau Singapore. This case is being prosecuted by Assistant U.S. Attorneys Mark Pletcher and Robert Huie of the Southern District of California and Director of Procurement Fraud Catherine Votaw and Trial Attorney Brian Young of the Criminal Division’s Fraud Section, as well as Special Trial Attorney Wade Weems on detail to the Fraud Section.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tipline at www.ncis.navy.mil, or the DoD Hotline at www.dodig.mil/hotline or should call (800) 424-9098.
DEFENDANT Case Number: 13-MJ-3456
John Bertrand Beliveau II SUMMARY OF CHARGESConspiracy to Commit Bribery in violation of 18 U.S.C. § 371
Maximum of 5 years in prison; a maximum $250,000 fine, or twice the gross gain or loss from the
offense, whichever is greaterBribery in violation of 18 U.S.C. § 201
INVESTIGATING AGENCIES
Maximum of 15 years in prison; a maximum fine of $250,000, twice the gross gain or loss from the
offense, or three times the monetary equivalent of the thing of value, whichever is greater.Defense Criminal Investigative Service
Naval Criminal Investigative Service
Homeland Security InvestigationsNavajo Man Sentenced to Federal Prison for Child Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – George Nez, 71, an enrolled member of the Navajo Nation who resides in Mexican Springs, N.M., entered a guilty plea this morning to a child sex abuse charge and was sentenced to 30 months in federal prison to be followed by ten years of supervised release. Nez will be required to register as a sex offender when he completes his prison sentence.
Nez was indicted in March 2011 and charged with three counts of abusive sexual contact of a child under the age of 12. The indictment alleged that Nez had sexual contact with a child under the age of 12 on three occasions at a location within the Navajo Indian Reservation between June 2009 and Sept. 2009. Court filings reflect that the child victim reported the abuse to a parent in Jan. 2011, and the parent contacted law enforcement authorities prompting the investigation that led to the filing of charges against Nez.
This morning, Nez pled guilty to Count 1 of the indictment charging him with abusive sexual contact and admitted knowingly engaging in sexual contact with a child under the age of 12 years by touching the child’s genitals. Nez acknowledged that he committed this offense between June 1, 2009 and Sept. 1, 2009. Nez was sentenced immediately after entering his guilty plea.
This case was investigated by the Gallup office of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorney Charles L. Barth.
NCIS Agent Pleads Guilty in International Navy Bribery ScandalRead the Press Release
A special agent with the Naval Criminal Investigative Service (NCIS) pleaded guilty today to participating in a massive international fraud and bribery scheme, admitting he shared with a foreign Navy contractor confidential information about ongoing criminal probes into the contractor’s billing practices in exchange for prostitutes, cash and luxury travel.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Laura E. Duffy of the Southern District of California, Director Andrew Traver of the Naval Criminal Investigative Service, and Deputy Inspector General for Investigations James B. Burch of the U.S. Department of Defense Office of the Inspector General made the announcement after the plea was accepted by U.S. Magistrate Judge Jan Adler of the Southern District of California. The plea is subject to acceptance by U.S. District Judge Janis Sammartino. Sentencing is set for March 9, 2014, before Judge Sammartino.
Supervisory Special Agent John Bertrand Beliveau Jr., 44, pleaded guilty to conspiracy to commit bribery, which carries a maximum penalty of five years in prison, and bribery, which carries a maximum penalty of 15 years in prison. In his plea agreement, Beliveau acknowledged that he regularly searched confidential NCIS databases for reports of investigations related to the contractor, Leonard Glenn Francis, chief executive of Singapore-based Glenn Defense Marine Asia (GDMA). Beliveau admitted that, over the course of years, he helped Francis avoid multiple criminal investigations by providing copies of these reports plus advice and counsel on how to respond to, stall and thwart the NCIS probes. This duplicity began while Beliveau was stationed in Singapore and continued for more than a year after Beliveau returned to the NCIS office in Quantico, Va.
Beliveau is one of five Navy officials and civilian contractors who are implicated so far in the widening corruption case involving hundreds of millions of dollars in Navy contracts. In addition to Beliveau and Francis, also charged are U.S. Navy Commanders Michael Vannak Khem Misiewicz and Jose Luis Sanchez and GDMA executive Alex Wisidagama. The charges against Francis, Misiewicz, Sanchez and Wisidagama are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
“Today, John Beliveau has admitted to accepting lavish gifts in exchange for revealing sensitive law enforcement information to a primary target of this massive bribery investigation,” said Acting Assistant Attorney General Raman. “For nearly two years, Beliveau deliberately leaked the names of cooperating witnesses, reports of witness interviews, and plans for future investigative steps. Through his corrupt conduct, Beliveau helped the target of the investigation evade the reach of law enforcement, and cost the U.S. Navy millions of dollars. Thanks to the Navy’s extensive cooperation and assistance, and the hard work of the NCIS and DCIS agents assigned to this ongoing investigation, we have now been able to hold him to account.”
“Instead of doing his job, John Beliveau was leaking confidential details of investigations to the target himself,” said U.S. Attorney Duffy. “This is an audacious violation of law for a decorated federal agent who valued personal pleasure over loyalty to his colleagues, the U.S. Navy and ultimately his own country. His admissions are a troubling reminder that corruption may exist even among those entrusted with protecting our citizens and upholding our laws.”
“John Beliveau's reprehensible actions, providing sensitive information to the targets of ongoing fraud investigations and accepting bribes, tragically tarnished his NCIS badge,” said NCIS Director Traver. “Nevertheless, the tireless and dedicated work of NCIS and DCIS effectively brought this to a halt, and these agencies continue to vigilantly protect Department of Navy personnel and resources.”
“Today’s guilty plea of former NCIS Special Agent John Beliveau is part of an ongoing joint effort by the Defense Criminal Investigative Service, the Naval Criminal Investigative Service and our enforcement partners to identify, investigate and bring to justice those seeking to enrich themselves at the expense of U.S. taxpayers,” said Deputy Inspector General for Investigations Burch. “While the conduct of a vast majority of those in the U.S. Navy and law enforcement community is beyond reproach, we will vigorously pursue those individuals who put the safety and security of U.S. Navy personnel at risk. The conduct of former Special Agent Beliveau is reprehensible and today’s guilty plea demonstrates the Defense Criminal Investigative Service will continue to pursue allegations of fraud and corruption that puts the Warfighter at risk.”
Among the law enforcement-sensitive information provided by Beliveau to Francis were the identities of the subjects of the investigations; information about witnesses, including identifying information about cooperating witnesses and their testimony; the particular aspects of GDMA’s billings that were of concern to the investigations; the fact that the investigations had obtained numerous email accounts and the identities of those accounts; the reports to prosecutors and their interactions with the investigations; and planned future investigative activities.
According to information provided in court, when authorities became aware of Beliveau’s duplicity, they began tracking Beliveau’s efforts to misappropriate information from the criminal investigation and then provide it to Francis. Soon after that, Francis came to San Diego from Singapore for a meeting with Navy brass, where Francis was arrested. Beliveau was taken into custody the same day in Virginia.
All told, Beliveau leaked information to Francis about criminal investigations into GDMA’s overbilling scheme that cost the Navy at least $7 million in fraudulent overpayments for “husbanding” services such as food, fuel and other supplies and services to the ships, according to the plea agreement.
In return for leaks of internal NCIS information and advice from Beliveau, Francis allegedly provided the agent with envelopes containing cash on at least five occasions, along with luxury travel from Virginia to Singapore, the Philippines and Thailand, the plea agreement stated. On many occasions, beginning in 2008 and continuing through 2012 while Beliveau was posted in Singapore, Francis allegedly provided the NCIS agent with prostitutes, lavish dinners, entertainment and alcohol at high-end nightclubs. The tab for each of these outings routinely ran into the thousands of dollars.
According to court records, in April of 2012 Beliveau complained to Francis, saying, “You give whores more money than you give me,” and, “I can be your best friend or worst enemy.”
Court records state that Beliveau and Francis tried to hide their illicit activity by employing techniques that Beliveau had learned from his specialized training as a law enforcement agent. These steps included deleting emails, changing email accounts, creating covert email accounts shared by Beliveau and Francis, not transferring funds through the normal banking channels and using Skype chat and calls to transmit information.
This ongoing investigation is being conducted by NCIS, the Defense Criminal Investigative Service (DCIS) and the Defense Contract Audit Agency. Significant assistance was provided by the Drug Enforcement Administration, Homeland Security Investigations and the DOJ Criminal Division’s Office of International Affairs, the Royal Thai Police and the Corrupt Practices Investigation Bureau Singapore. This case is being prosecuted by Assistant U.S. Attorneys Mark Pletcher and Robert Huie of the Southern District of California and Director of Procurement Fraud Catherine Votaw and Trial Attorney Brian Young of the Criminal Division’s Fraud Section, as well as Special Trial Attorney Wade Weems on detail to the Fraud Section from the Special Inspector General for Afghan Reconstruction.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tipline at www.ncis.navy.mil or the DoD Hotline at www.dodig.mil/hotline , or call (800) 424-9098.Morris County, N.J., Doctor Admits Taking Cash Kickbacks for Patient ReferralsRead the Press Release
NEWARK, N.J. – A Morris County, N.J., doctor practicing internal medicine admitted today to taking cash kickbacks for making referrals to a diagnostic testing lab in Orange, N.J., U.S. Attorney Paul J. Fishman announced.
Mahesh Patel, 64, of Florham Park, N.J., a board-certified physician, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark to an information charging him with soliciting and receiving more than $6,000 in illegal cash kickbacks for patient referrals in violation of the federal health care anti-kickback statute.
Patel is the 15th individual to be convicted in connection with the government’s ongoing investigation of illegal payments made by Orange Community MRI LLC (Orange MRI), a diagnostic testing facility, U.S. Attorney Paul J. Fishman announced.
According to documents filed in this case and statements made in court:
Patel operated his own medical practice in Orange. From 2010 through November 2011, Patel agreed to take cash payments from Orange MRI in exchange for MRI scans he referred to the diagnostic testing facility. Patel admitted to receiving cash on a per-patient basis for nearly two years, and that on one of the occasions on which he received cash, Oct. 13, 2011, he received $375 in exchange for his prior referral of Medicare and Medicaid patients.
The anti-kickback charge carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is scheduled for April 8, 2014.Twelve health care providers, including Patel, have agreed to forfeit $360,510 in illegal cash kickbacks. Also, Ashokkumar Babaria, 63, of Moorestown, N.J., Orange MRI’s former medical director, agreed to forfeit his revenue from corrupt referrals, which the government estimates is in excess of $2 million. Chirag Patel, 38, of Warren, N.J., Orange MRI’s former executive director, also agreed to forfeit $89,180 in corrupt gains.
U.S. Attorney Fishman credited special agents of the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Tom O’Donnell, who investigated the case with criminal investigators from the U.S. Attorney’s Office.The government is represented by Assistant U.S. Attorneys Deputy Chief Joseph Mack and Scott B. McBride of the U.S. Attorney’s Office’s Health Care and Government Fraud Unit in Newark.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $500 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
13-472Defense counsel: Robert J. Cleary Esq. and William C. Komaroff Esq., New York
Patel, Mahesh Information
Members of "Black P-Stones" Gang IndictedRead the Press Release
NEWPORT NEWS, Va. – An eighteen-count superseding indictment was unsealed yesterday charging seven defendants—Justin Jerrell Brown, a.k.a. “Jus Money,” 22; Michael Ledale Hopson, a.k.a. “O.G.,” “Hop,” “Big Homie,” 36; Marcellus N. Williams Jr., a.k.a. “Math,” “P-Shooter,” “Manny,” 26; Darius Durel Crenshaw, a.k.a. “D-Block,” “Block,” “Block Head,” 27; Desmond Rishaad Finnell, a.k.a. “Dez,” “Jimmy Mac,” 23; Enrique Omar Hinton, a.k.a. “Rico,” 26; and Chadrick Derrell Lard, 23—with racketeering conspiracy, murder and attempted murder in aid of racketeering, robbery, conspiracy to distribute marijuana, and related firearms crimes. According to the indictment, the defendants were high-ranking members and associates of a violent street gang called the Black P-Stones, also referred to as the P-Stone Bloods and Cobra Stones.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Mythili Raman, Acting Assistant Attorney General for the Justice Department’s Criminal Division; and Royce E. Curtin, Special Agent in Charge of the Federal Bureau of Investigation’s Norfolk Field Office, made the announcement.
The indictment alleges that from approximately 2005 to the present the Black P-Stones operated as a criminal enterprise located primarily in the Beechmont, Courthouse Green, and Woodview neighborhoods in the Denbigh area of Newport News. The Black P-Stones engaged in various criminal activities including murders, robberies, illegal drug trafficking, and obstruction of justice. Membership in the Black P-Stones often entailed being “jumped in,” during which the new member was surrounded and beaten. To remain in good standing with the gang, members were required to comply with the gang’s rules, attend gang meetings, and pay monthly “dues.” Failing to follow the rules or pay dues resulted in “violations” that ranged from being beaten to being killed. Lower-ranking members of the Black P-Stones often received orders or approval from high-ranking members to carry out criminal activities, which were sometimes referred to as getting the “green light.” The Black P-Stones signified their membership by wearing clothing, hats, and bandannas with the colors red, black, and yellow, and by displaying distinctive tattoos, burns, hand signs, and handshakes. The indictment also alleges the Black P-Stones clashed with rival gangs including the 10-1 Mafia Crips, Folks, and Thug Relations, which was also referred to as TR, and Duct to the Lawnz.
According to the indictment, the defendants’ respective roles in the Black P-Stones gang were the following in descending order: Hopson served as the leader known as the Big Homie or O.G., which is an acronym for “original gangster”; Williams and Crenshaw held the rank of “Superior”; Finnell and Brown held the rank of “Lieutenant”; Hinton was a member; and Lard was an associate.
Hopson and Finnell were arrested yesterday, and Brown and Hinton are also currently in federal custody. Hopson, Finnell, and Hinton will make their initial appearances in federal court in Norfolk today. Brown will be arraigned in federal court in Newport News on Dec. 19, 2013. Williams and Crenshaw are currently in state custody and will make their initial appearances in federal court on a later date.
The investigation of this case was led by the FBI’s Safe Streets Peninsula Task Force, with the assistance of the Newport News Police Department and the James City County Police Department. Assistant United States Attorney Eric M. Hurt and Trial Attorney Louis A. Crisostomo of the Organized Crime and Gang Section in the Justice Department’s Criminal Division are prosecuting the case on behalf of the United States.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the 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.Maryland Man Sentenced to Five Years in Prison for Traveling into the District of Columbia to Engage in Illicit Sexual Conduct with A Minor and Possession of Child PornographyRead the Press Release
WASHINGTON – Akshay Rajashekar, 19, of Salisbury, Md., has been sentenced to a five-year prison term on federal charges of traveling interstate to engage in illicit sexual conduct with a minor and possession of child pornography, U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD) announced today.
Rajashekar pled guilty to the charges in June 2013 in the U.S. District Court for the District of Columbia. The Honorable Thomas F. Hogan sentenced him on Dec. 16, 2013. Upon completion of his prison term, Rajashekar will be placed on 10 years of supervised release. He also will be required to register as a sex offender for a period of 15 years.
According to the government's evidence, on March 18, 2013, Rajashekar contacted an undercover officer with the FBI's Child Exploitation Task Force, who had posted an ad on a social network site. Over the next few days, the defendant engaged in online e-mail and instant messaging with the undercover officer, who the defendant believed was the father of an under-aged girl. During this period of time, Rajashekar arranged with the undercover officer to meet for the purpose of engaging in sexual acts with that child.
During the communications, Rajashekar also sent the undercover officer six images of child pornography. On March 25, 2013, Rajashekar traveled from College Park, Md. to a pre-arranged meeting place in Washington, D.C. When he arrived, he was arrested.
At the time of his arrest, Rajashekar had a pending case in Wicomico County, Md. for possession of child pornography. One of the two child pornography counts in the plea agreement covers that matter, and the Office of the State’s Attorney for Wicomico County Md. agreed to dismiss the pending case in Wicomico County at the time of the defendant’s sentencing.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also expressed appreciation for the assistance of Assistant State's Attorney Pamela Correa of the Office of the State’s Attorney for Wicomico County, Md. Finally they commended the efforts of Assistant U.S. Attorney Ari Redbord, who prosecuted the case.
13-423Manhattan U.S. Attorney Announces Filings and Discovery Requests Seeking Forfeiture of Pension Benefits of Four Former Officials Convicted of Corruption OffensesRead the Press Release
Discovery Requests Seek to Locate Benefits Paid to Convicted Former New York City Council Member Hiram Monserrate and Former Yonkers City Council Member Sandy Annabi
Preet Bharara, the United States Attorney for the Southern District of New York, announced today the filing of applications for orders forfeiting pension benefits, and the service of discovery requests seeking to locate benefits paid, regarding four former New York City Council and Yonkers City Council officials convicted of corruption offenses.
Manhattan U.S. Attorney Preet Bharara said: "With today's actions, we aim to prevent corrupt elected officials from continuing to benefit from pensions paid for by the very people they betrayed in office. As I announced this fall, we are committed to using every legal tool to take the profit out of crime, and that includes preventing public money from being used to fund the comfortable retirement of corrupt officials. This is what justice and common sense require."
As alleged in the applications and other court documents:
Former New York City Council members MIGUEL MARTINEZ, LARRY SEABROOK, and HIRAM MONSERRATE, and former Yonkers City Council member SANDY ANNABI, were convicted of corruption offenses between 2009 and 2012. On December 15, 2009, MARTINEZ was sentenced to 60 months’ imprisonment and ordered to forfeit $106,000. On January 8, 2013, SEABROOK was sentenced to 60 months’ imprisonment and ordered to forfeit $418,252.53. On December 11, 2012, MONSERRATE was sentenced to 24 months’ imprisonment and ordered to forfeit $79,434.49. On November 19, 2012, ANNABI was sentenced to 72 months’ imprisonment and ordered to forfeit $1,270,302.99. To date, none of these defendants has made a single payment toward their respective forfeiture obligations.
MARTINEZ and SEABROOK are currently vested members of the New York City Employee Retirement System. SEABROOK currently receives benefits, while MARTINEZ will be eligible to receive benefits when he reaches the age of 57. The Office has filed applications for orders forfeiting MARTINEZ and SEABROOK’s right to pension benefits until their forfeiture judgments are fully paid. MONSERRATE and ANNABI are believed to have terminated their pension memberships and received payments as a result. The Office has served discovery requests on MONSERRATE and ANNABI seeking to locate benefits that have been paid to them in order to satisfy the outstanding forfeiture judgments against them.
The prosecutions of these officials were handled by the Office’s Public Corruption Unit and its White Plains Division. The forfeiture of the defendants’ pensions is being handled by the Office’s Asset Forfeiture Unit. Assistant United States Attorney Paul Monteleoni is in charge of the forfeitures.
US v. Miguel Martinez Substitute Asset Application
US v. Larry Seabrook Substitute Asset Application
US v. Sandy Annabi Letter to Judge McMahon
US v. Hiram Monserrate Letter to Judge McMahonLawrence Woman Indicted for Misusing A Social Security NumberRead the Press Release
BOSTON - A Lawrence woman was charged today with misusing a social security number.
Kernia Avalo De Mejia, 28, was indicted for misusing a social security number in connection with renting apartments in the greater Lawrence area under a stolen identity. This indictment was part of a larger investigation into drug trafficking by illegal aliens in the Lawrence-Methuen area.
If convicted, Avalo faces a maximum sentence of five years in prison, three years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston, made the announcement today. The case is being prosecuted by Thomas E. Kanwit of Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lake Charles Doctor Sentenced to 12 Months in Prison for Health Care FraudRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that Dr. Lynn E. Foret, 64, of Lake Charles, La., was sentenced by U.S. District Court Judge Richard T. Haik to 12 months in prison and three years of supervised release for defrauding Medicare, Medicaid and private insurance companies out of close to $1 million. He was ordered serve 12 months of home confinement with the use of electronic monitoring while on supervised release and also ordered to pay $878,328.98 restitution and a $25,000 fine. Foret pleaded guilty April 18, 2013.
According to evidence presented at the guilty plea, from 2003 to 2009, Foret injected his patients’ knees with a steroid solution while falsely billing and receiving payments from Medicare, Medicaid and private insurance companies for a more costly drug called Hyalgan. During the time period outlined in the bill of information, he received reimbursements totaling $878,328.98. Foret is a Lake Charles medical doctor who specialized in orthopedic surgery since 1976. He closed his practice in December of 2012.
Various types of steroids are often used to treat osteoarthritis of the knee. Hyalgan is another more costly type of medication that is used to treat osteoarthritis. It contains a natural substance called Hyaluronate, which is normally found in the fluid that lubricates and cushions knee joints and is injected directly into a patient’s knee to relieve inflammation.
“This defendant used his trusted position as a physician to steal,” Finley stated. “He lied about the treatments he administered and drained money from private insurers and federal programs intended for those in need who depend on health care. The agencies and prosecutors who worked in this case are to be commended for their outstanding work in uncovering this fraud.”
The FBI, U.S. Food and Drug Administration, the Department of Health and Human Services - Office of Inspector General (OIG), and the Medicaid Fraud Control Unit (MFCU) of the Louisiana State Attorney General’s Office conducted the investigation. Assistant U.S. Attorney Kelly P. Uebinger prosecuted the case.
Kuchera Brothers Sentenced for Fraud Against the Government and ConspiracyRead the Press Release
JOHNSTOWN, PA. - Two brothers who owned a major defense contracting firm have been sentenced in federal court on charges of major fraud against the government and conspiracy, United States Attorney David J. Hickton announced today. U.S. District Judge Kim Gibson sentenced William Kuchera, 58, of Summerhill, Pa., and Ronald Kuchera, 52, of Johnstown, Pa., each to five years’ probation, the first 18 months on home detention with electronic monitoring, 1,000 hours of community service, and a fine of $500,000.
According to the information presented to the court, William and Ronald Kuchera owned and managed Kuchera Defense Systems, Inc. (KDS), a contractor for the Department of Defense. KDS submitted cost certifications to the government containing unallowable expenses that inflated costs for overhead and general and administrative expenses. These unallowable expenses included the leasing of a private airplane, vacations to Jamaica, personal car leases, improvements on a private residence and lobbying fees.
The Kuchera brothers also submitted a false invoice for $650,000 to Coherent Systems International, Inc. (Coherent), a defense contractor owned by Richard S. Ianieri. As the prime contractor, Coherent was responsible for an $8 million Department of Defense contract for the Ground Mobile Gateway Systems, which involved the development of a new prototype unmanned vehicle that was designed to prevent friendly-fire incidents. The invoice sought payment for a component that had never been manufactured or delivered to Coherent. After receiving the $650,000 payment from Coherent, the Kuchera brothers kicked back to Ianieri approximately $200,000.
The court was further advised that each of the Kuchera brothers filed false income tax returns for themselves and KDS. Their personal tax returns were false because they failed to disclose as income certain personal expenses paid for by their companies. The KDS tax returns were false because they included as business deductions certain expenses that were personal expenditures of the two brothers. The brothers also caused the submission of a false corporate tax return which illegally claimed the kickback to Ianieri as a legitimate business expense.
In July 2009, Ianieri waived indictment and pleaded guilty to a one-count criminal information charging him with soliciting kickbacks and filing false purchase orders related to an Air Force contract in Florida. In February 2010, he was sentenced to five years’ probation and was ordered to pay a $200,000 fine.
As part of their plea agreement, each brother agreed to pay a $50,000 criminal fine to the United States. Judge Gibson will apply this payment toward the $500,000 criminal fine imposed today, for a total additional fine of $450,000 for each of the brothers. Ronald Kuchera agreed to the civil forfeiture of an additional $450,000 and agreed to make payment to the Internal Revenue Service in the amount of $121,313, which represents taxes owed due to his filing of false personal tax returns and his share of the taxes owed by KDS. William Kuchera similarly agreed to the civil forfeiture of $450,000, and to pay restitution to the IRS in the amount of $257,168.
The Kuchera brothers and KDS also paid $2.7 million to resolve their civil liabilities with the United States Department of Defense under the False Claims Act. Ronald Kuchera paid $950,000 and William Kuchera paid $829,566. KDS, now doing business as Currency, Inc., paid $920,434 as a result of an audit conducted by the Defense Contract Audit Agency, which uncovered inflated billings for overhead.
“The Kucheras cheated the government by claiming improper reimbursements, submitting a false invoice, and then kicking back monies to the prime contractor,” said U.S. Attorney Hickton. “Such blatant and outrageous fraud against the United States cannot and will not be tolerated.”
Assistant United States Attorneys Nelson P. Cohen and Paul E. Skirtich prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Defense Criminal Investigative Service, the Defense Contract Audit Agency, the U.S. Internal Revenue Service - Criminal Investigation, and the Federal Bureau of Investigation, for the investigation leading to the successful prosecution of William Kuchera and Ronald Kuchera.
Justice Department Files Fair Housing Lawsuit Against Owner and Manager of Rental Housing in New Hampshire for Discrimination Against Families with ChildrenRead the Press Release
The Justice Department today filed a lawsuit against the owner and manager of rental apartments in Jaffrey, N.H., for violating the Fair Housing Act by discriminating against families with children.
The lawsuit, filed in the U.S. District Court for the District of New Hampshire, alleges that Bruce R. Edwards, as Trustee of the Bruce R. Edwards Revocable Trust of 2004 and in his personal capacity, engaged in a pattern or practice of violating the Fair Housing Act or denied rights protected by the Act. According to the complaint, the defendant allegedly established and implemented a discriminatory “no children” policy for prospective tenants in a boarding house that he owned and managed. The suit also alleges that the defendant violated the Fair Housing Act by enforcing the “no children” provision of the lease against a tenant and requiring the tenant to immediately find other housing arrangements for his daughter, who visited the boarding house on weekends.
“The Fair Housing Act protects tenants with children from facing unfair terms and conditions of rental that do not apply to tenants without children,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Justice Department will continue its vigorous enforcement of fair housing laws that ensure that tenants can secure rental housing for their families without fear of discrimination.”
“This lawsuit demonstrates the Department of Justice’s commitment to ensuring fair and equal access to housing for all New Hampshire citizens and attempts to erect discriminatory barriers to this fundamental civil right will not be tolerated,” said U.S. Attorney John P. Kacavas for the District of New Hampshire.
This lawsuit arose as a result of a complaint filed with the Department of Housing and Urban Development (HUD) by a tenant who lived in the defendant’s boarding house and had joint custody of his minor daughter. The defendant’s lease stated that no children were allowed in the building, and the defendant made additional oral statements to the tenant that children were not permitted. After receiving noise complaints about the tenant’s child, the defendant notified the tenant in a letter marked “Eviction Notice” that he was enforcing the “no children” provision of the lease and that the tenant had to immediately find other arrangements for his daughter on the weekends. As a result, the tenant began taking his daughter to stay with family members, which resulted in both economic and emotional costs. After HUD investigated the complaint, it issued a charge of discrimination and the matter was referred to the Justice Department.
“It’s surprising that 25 years after Congress outlawed housing discrimination against families with children, many landlords don’t know it’s illegal or don’t take the law seriously,” said Acting Assistant Secretary Bryan Greene for HUD’s Office of Fair Housing and Equal Opportunity. “HUD will continue work alongside the Department of Justice in educating people on the law and obtaining housing relief for families denied housing."
The lawsuit seeks a court order prohibiting future discrimination by the defendant, monetary damages for those harmed by the defendant’s actions and a civil penalty. Any individuals who have information relevant to this case are urged to contact the Housing and Civil Enforcement Section of the Civil Rights Division at 1-800-896-7743, ext. 3.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt . Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact HUD at 1-800-669-9777.
The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
Imprisoned Sex Offender Sentenced to 10 Years in Prison for New OffenseRead the Press Release
Began with Anonymous Contact on Facebook
BOISE — Jeremy E. Durkin, 35, of Coeur d’Alene, Idaho, was sentenced today to 120 months in federal prison, with credit for time served, for use of a facility of interstate commerce to transmit information about a minor, with the intent to entice the victim into criminal sexual activity, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Durkin to serve ten years of supervised release following his release from prison. Durkin pleaded guilty on September 19, 2013.
According to the plea agreement, the matter came to the attention of law enforcement on September 23, 2010, when, during routine cell search at the Idaho State Correctional Institution, a corrections officer found a letter on Durkin's bunk which referenced a Yahoo e-mail account. The letter, written by Durkin, referred to the intended recipient as “you sexy sixteen-year-old.” In the letter, Durkin is asking someone he referred to in the greeting as “my Love,” to keep his (Durkin’s) Yahoo e-mail account active by logging on to it once a month and deleting all incoming mail. The letter further states: “This way I wont loose [sic] all the photos have up there. I don't really want to ask anybody else cuz there is naked photos of you that I don't want anybody to see.” Department of Corrections officials referred the matter to the FBI.
The FBI identified the victim as a high school student in Oregon. When interviewed, the youth told agents that Durkin initiated contact with him in December 2009 on Facebook. The victim further stated that Durkin (whom the victim did not know prior to that time) persuaded him to call a telephone number in Idaho. The two spoke telephonically and “hit it off,” according to the youth. Durkin initially gave the youth a false name, but not long after they met online, he gave the youth his true name. According to the victim, Durkin knew the victim was 15 years old at the time.
According to the plea agreement, from December 2009 until the summer 2010 Durkin was in constant contact with the victim via e-mail, telephone and U.S. Mail. The youth described their relationship as being almost immediately romantic and sexual, and said they exchanged sexually explicit photos. A search of Durkin’s Yahoo! account confirmed these allegations. The two never met in person. Their relationship was entirely via Facebook, telephone, e-mail and U.S. Mail.
Durkin is a previously convicted sex offender. In 2005, Durkin pleaded guilty in Kootenai County, Idaho, to one count of lewd conduct with a child under age 16. He was on parole at the time the incidents occurred that resulted in the federal charge. Durkin’s parole was revoked in the summer of 2010 and he was returned to prison. He is currently serving a prison his sentence on the Kootenai County case at the Idaho Department of Correction and is scheduled for release in 2016.
The charge of use of a facility of interstate commerce to transmit information about a minor, with the intent to entice the victim into criminal sexual activity, when committed by a person with a prior sex offense conviction, is punishable by up to ten years in prison, a maximum fine of $250,000.00, and up to lifetime supervised release.
The Federal Bureau of Investigation and the Idaho Department of Correction investigated the case. Both agencies are members of the Idaho Internet Crimes Against Children (ICAC) Task Force, a statewide coalition of local, state and federal law enforcement and prosecution agencies, focused on apprehending and prosecuting individuals who use the Internet to criminally exploit children. For more information about the Idaho ICAC Task Force and a list of all the participating agencies, visit www.icacidaho.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Houston Doctor Indicted for HerAlleged Role in $158 Million Medicare Fraud SchemeRead the Press Release
A Houston doctor has been arrested on charges related to her alleged participation in a $158 million Medicare fraud scheme involving false claims for mental health treatment.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Stephen L. Morris of the FBI’s Houston Field Office, Special Agent in Charge Mike Fields of the Dallas Regional Office of the Department of Health and Human Services Office of the Inspector General (HHS-OIG) and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
Sharon Iglehart, 56, of Houston, was charged in an indictment, filed in the Southern District of Texas and unsealed today, with one count of conspiracy to commit health care fraud and four counts of health care fraud. If convicted, Iglehart faces a maximum penalty of 10 years in prison on each count. Iglehart was arrested on Dec. 16, 2013, and made her initial appearance in federal court in Houston today.
According to the indictment, Iglehart allegedly participated in a scheme to defraud Medicare beginning in 2005 and continuing until May 2012. The defendant allegedly caused the submission of false and fraudulent claims for partial hospitalization program (PHP) services to Medicare through a Houston hospital. A PHP is a form of intensive outpatient treatment for severe mental illness.
The indictment alleges that the defendant and her co-conspirators submitted or caused to be submitted approximately $158 million in claims to Medicare for PHP services purportedly provided by the hospital, when in fact the PHP services were medically unnecessary or never provided.
In February 2012, Mohammad Khan, an assistant administrator at the hospital who managed many of the hospital’s PHPs, was indicted for his role in the scheme. Khan pleaded guilty to one count of conspiracy to commit health care fraud, one count of conspiracy to pay illegal kickbacks, and five counts of paying illegal kickbacks. Khan has not yet been sentenced.
In October 2012, Earnest Gibson III, the administrator of the hospital, along with Earnest Gibson IV, William Bullock III, Robert Ferguson, Regina Askew, Leslie Clark and Robert Crane, were indicted for their roles in the scheme. Leslie Clark pleaded guilty to one count of conspiracy to pay and receive illegal kickbacks. Clark has not yet been sentenced.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI, HHS-OIG, MFCU, Internal Revenue Service’s Houston Field Office, the Chicago Field Office of the Railroad Retirement Board’s Office of Inspector General, and the Office of Personnel Management’s Office of Inspector General and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas. The case is being prosecuted by Assistant Chief Laura M.K. Cordova of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov .