Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Friday 29 November 2013
Eagle Butte Man Sentenced for Possession with Intent to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on November 25, 2013 by U.S. District Judge Roberto A. Lange.
Aadam Tiger, age 29, was sentenced to 55 days of custody, 2 years of Supervised Release, a $1,000 fine and $100 to the Federal Crime Victims Fund.
Tiger was indicted for the above charge by a federal grand jury on November 15, 2012. He pled guilty on August 13, 2013.
On December 2, 2011, Cheyenne River Law Enforcement stopped the Defendant’s vehicle for a traffic violation. The officer could smell marijuana coming from inside the vehicle. The officer was given consent to search the vehicle and found marijuana, plastic baggies, a grinder, scale, zig-zag papers, roaches, and $725. Tiger had the intent to distribute some or all of the marijuana that was in his possession.
The investigation was conducted by the Cheyenne River Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Colorado Man Indicted for Conspiracy to Distribute Marijuana and Distribution of MarijuanaRead the Press Release
United States Attorney Brendan V. Johnson announced that Colorado man has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance and Distribution of a Controlled Substance.
Dustin Reller, age 27, was indicted on November 19, 2013. He appeared before U.S. Magistrate Judge Veronica Duffy on November 22, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $500,000 fine, 4 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Beginning no later than August 2013, Reller conspired with others to distribute marijuana in the District of South Dakota and distributed more the 5 grams of marijuana to a person under 21 years of age.
The charge is merely an accusation and Reller is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Unified Narcotic Enforcement Team and the Drug Enforcement Administration. Assistant U.S. Attorney Ted L. McBride is prosecuting the case.
Reller was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for January 28, 2014.
Thursday 28 November 2013
Spearfish Man Sentenced for Mail Fraud and Misbranding of A DrugRead the Press Release
United States Attorney Brendan V. Johnson announced that a Spearfish, South Dakota, man convicted of Mail Fraud and Misbranding of a Drug was sentenced on November 25, 2013, by Chief Judge Jeffrey L. Viken, U.S. District Court.
John Martin, age 74, was sentenced to 9 years in custody, 3 years of supervised release, a $125 special assessment to the Federal Crime Victims Fund, and restitution of at least $209,300. The court deferred a final determination on restitution until a later date.
Martin was indicted for Mail Fraud and Misbranding of a Drug by a federal grand jury on March 20, 2012. He pled guilty on May 9, 2013.
Between February 27, 2007, and December 31, 2011, Martin, who is not a physician, fraudulently claimed he could treat and cure cancer and other diseases. Martin instructed individuals who contacted him to send samples of bodily fluids and hair, along with money, to him in Spearfish. In one instance, he instructed a person to send money and samples of blood, saliva, and hair so that he could test the samples for cancer. Martin then informed the individual of the presence of colon cancer, and that the individual needed to travel to Spearfish for treatment. Martin charged the individual for treatment, prescribed herbal supplements, and later informed the individual that the cancer was cured.
Additionally, in April 2011, Martin directed a person to take herbal supplement pills, which Martin provided, as a treatment for cancer. Martin fraudulently informed that person that he had liver cancer and prescribed 96 herbal supplements to treat the cancer, which caused the supplements to become “drugs” under federal law. The supplements lacked labeling bearing adequate directions for use in the treatment of cancer.
The investigation was conducted by the U.S. Postal Inspection Service, the U.S. Food and Drug Administration-Office of Criminal Investigations, the South Dakota Division of Criminal Investigation, the Spearfish Police Department, the Belle Fourche Police Department, and the Butte County Sheriff's Office. The case was prosecuted by Assistant U.S. Attorney Eric Kelderman.
Martin was immediately turned over to the custody of the U.S. Marshals Service.
Cheektowaga woman pleads guilty to money laudering conspiracyRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Nannette Brown, 44, of Cheektowaga, N.Y., pleaded guilty before Chief U.S. District Judge William M. Skretny to conspiracy to commit money laundering. The charge carries a maximum penalty of 20 years in prison, a $500,000 fine or both.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that the defendant conspired with her son, Tyshawn Bradley, to use the proceeds of Tyshawn Bradley’s cocaine distribution network to purchase real estate located in Buffalo. Brown admitted that her son asked her to purchase the following properties in her name in order to conceal Tyshawn Bradley as being the true owner of the properties: 8 Norway Park; 16 Corwall Avenue; 514 Dodge Street; and 33 Gerhardt Street.
Brown, Tyshawn Bradley and 10 others were arrested in April 2013 and charged with conspiracy to traffic 280 grams or more of cocaine base and 500 grams or more of cocaine within the Perry Housing Projects.
This case resulted from an Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation conducted by the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent in Charge Brian P. Boetig, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Resident Agent in Charge Frank Christiano. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for this nation's illegal drug supply.
Sentencing is set for April 2, 2013 at 9:00 a.m. before Judge Skretny.
Wednesday 27 November 2013
Wisconsin Man Charged with Commercial Sex TraffickingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Milwaukee, Wisconsin, man has been charged in federal court for Transportation for Prostitution, Coercion, and Commercial Sex Trafficking.
Thomas Alexander Roberts, age 33, appeared before U.S. Magistrate Judge John E. Simko on November 26, 2013, and pled not guilty to the charges.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
In November 2013, Roberts allegedly transported an adult female from Wisconsin to South Dakota with the intent to have her engage in prostitution and sexual activity.
The charge is merely an accusation and Roberts is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Sioux Falls Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Roberts was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.White River Man Sentenced for Failing to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a White River, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on November 26, 2013, by Roberto A. Lange.
Nathan First In Trouble, age 34, was sentenced to 12 months and 1 day of custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
First In Trouble was indicted by a federal grand jury on July 17, 2013. He pled guilty on September 16, 2013.
First In Trouble was convicted of Sexual Abuse of a Minor in federal court in April 1998. At that time, he was sentenced to 30 months in prison and ordered to register as a sex offender. From February to April 2013, First In Trouble registered as a sex offender at his father’s residence in Mellette County. However, he was not staying there. First In Trouble was working and staying in Pierre from January to April 2013, when he was arrested. During that time, he failed to register as a sex offender by updating his residence and employment information.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Tim Maher prosecuted the case.
First In Trouble was immediately turned over to the custody of the U.S. Marshals Service.
Week in Review – South BendRead the Press Release
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Darius Witherspoon, 20, of South Bend, Indiana, pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offenses of the armed bank robbery of Key Bank and G.W Jones Bank and carrying and brandishing a firearm during a crime of violence.Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 2/27/14.This charge was filed as a result of an investigation by the Federal Bureau of Investigation.This case is being prosecuted by Assistant United States Attorney Donald Schmid.
Quintien Sinclair Walker, 22, of South Bend, Indiana, pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of making false statements during the acquisition of a firearm.Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 3/5/14.This charge was filed as a result of an investigation by the Federal Bureau of Investigation.This case is being prosecuted by Assistant United States Attorney Donald Schmid.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Week in Review – HammondRead the Press Release
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Duane Spears, Jr., 24, of Gary, Indiana, pled guilty before Chief Judge Philip Simon to the felony offense of making false statements to a licensed firearms dealer in the purchase of firearms.Sentencing has been set for 2/27/14.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task Force.This case is being prosecuted by Assistant United States Attorney Dean Lanter.
Sonyinee Davis Pope, 39, of Hammond, Indiana, pled guilty before District Judge Joseph Van Bokkelen to the felony offense of making false statements to the United States Postal Service.Sentencing has been set for 2/6/14.This charge was filed as a result of an investigation by United States Postal Service-Office of the Inspector General.This case is being prosecuted by Assistant United States Attorney Toi Houston.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Diamond Toney, 19, of Merrillville, Indiana, was sentenced by District Judge Joseph Van Bokkelen to 84 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of use of a firearm during a crime of violence.According to documents filed in this case, Toney established an online relationship with her victim through a dating website. Toney and the victim arranged to meet in Merrillville. Toney and Dedrick Bufkin, armed with a gun, met the victim at the arranged site, tied him up with string and duct tape and ordered him into the trunk of his own vehicle.Toney and Bufkin took money, a cell phone and a wallet from the victim and held him captive in the trunk for approximately 5 hours before letting him go. This case was the result of an investigation by the Federal Bureau of Investigation GRIT Task Force and the Merrillville Police Department.This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Eliezer Campuzano-Flores, 30, of East Chicago, Indiana, was sentenced by Magistrate Judge Paul Cherry to time served (47 days) after pleading guilty to the misdemeanor offense of knowingly eluding examination by immigration officials.This case was the result of an investigation by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.This case was prosecuted by Assistant United States Attorney Nicholas Padilla.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Efren Paniagua-Pizano, 25, of Fort Wayne, Indiana, pled guilty before Magistrate Judge Roger Cosbey to the felony offense of conspiracy to distribute and possess with intent to distribute cocaine.Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation.This case is being prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
Jose Noe Perea Casteneda, 40, of Goshen, Indiana, pled guilty before Magistrate Judge Roger Cosbey to the felony offense of conspiracy to distribute and possess with the intent to distribute cocaine.Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation.This case is being prosecuted by Assistant United States Attorney Lesley Miller Lowery.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITION:
Gerardo Martinez-Gaston, 42, of Fort Wayne, Indiana, was sentenced by District Judge Theresa Springmann to 6 months imprisonment (time served) and 1 year of supervised release after pleading guilty to the felony offense of conspiracy to possess with the intent to distribute cocaine.This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
Washington Park Former Street Superintendent Pleads Guilty to Forging Village CheckRead the Press Release
Douglas T. Knowles, 37, of Washington Park, Il., entered a plea of guilty to a one-count Indictment that charged possessing and uttering a forged check of the Village of Washington Park, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Sentencing is scheduled for March 21, 2014.
In December 2012 Knowles, who is a public works/street superintendent for the Village of Washington Park, purchased and picked up a gas range from Gil Klein TV & Appliance, Inc., a/k/a Klein’s Brand Source, in Fairview Heights. Knowles presented a Village of Washington Park check purported to be signed by the Mayor of Washington Park for payment. It was later learned that Knowles forged the endorsement of the Mayor and used the gas range for his private residence.
The case was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
U.S. Fish and Wildlife Service, U.S. Attorney’s Office and Borger Refinery Owner Agree to Penalty and Compliance Plan Related to August 2012 Migratory Bird Kill at Johnson Tank Farm in Hutchinson CountyRead the Press Release
AMARILLO, Texas — The U.S. Department of the Interior, Fish and Wildlife Service (USFWS), the U.S. Attorney for the Northern District of Texas, Phillips 66 Company and WRB Refining LP, entered into an Agreement and Compliance Plan on November 22, 2013, regarding facilities located near Borger, Texas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Phillips 66 and WRB Refining (Borger) own and/or operate a refinery and related support facilities, including the Johnson Tank Farm Pond in Hutchison County Texas, a three million barrel brine water pond spanning 22 acres.
In August 2012, the USFWS learned of a large migratory bird kill at the Johnson Tank Farm Pond. Approximately 260 waterfowl, mostly teal, were recovered. Borger self-reported the kill and immediately began implementing additional hazing efforts to attempt to keep migratory birds off of the pond. Additionally, Borger established an emergency treatment center to triage injured birds at the Borger facility.
Borger also installed additional bird deterrents and contracted for bird-hazing personnel to deter migratory birds off the Johnson Tank Farm Pond, during daylight hours, using a boat and air horns, provided the weather conditions and personal safety conditions permit the hazing activities.
According to the Agreement, within 30 days,
Borger agrees to pay a $50,000 violations notice;
Borger agrees to pay $10,000 in restitution to the South Plains Wildlife Rehabilitation Center;
Borger agrees to pay $38,820 to the Texas Parks and Wildlife Department for the value of the deceased migratory birds;
Borger agrees to make a $200,000 charitable contribution to the South Plains Wildlife Rehabilitation Center; and
The USFWS will not seek prosecution under the Migratory Bird Treaty Act, or other similar offenses related to Migratory Bird Activity at the Borger facilities, as long as Borger continues to comply with this Agreement and the Compliance Plan contained in this Agreement.
The Compliance Plan requires, among other things, for Borger to deploy the Merlin Detect and Deter Bird-Control Radar System™ at the Pond at the Johnson Tank Farm, to take actions with respect to the 302 Hazardous Waste Impoundment and to submit semi-annual reports to the USFWS in Lubbock. Borger also agrees to train personnel and contractors who work near Surface Waters at Borger Facilities to observe and report any Migratory Bird Activity at Surface Waters other than fresh or raw water and to maintain an on-site bird treatment center to triage injured birds.
The case was handled by Assistant U.S. Attorney Christy Drake of the U.S. Attorney’s Office in Amarillo, Texas.
Two Former Coahuila, Mexico, Politicians Indicted in the Southern District of TexasRead the Press Release
CORPUS CHRISTI, Texas - Two former Mexican politicians from the State of Coahuila have been indicted on charges of conspiring to launder monetary instruments, bank fraud, mail fraud and wire fraud, announced United States Attorney Kenneth Magidson.
The four-count sealed federal indictment was returned Nov. 20, 2013, and unsealed today. It charges Hector Javier Villarreal Hernandez, 42, former Secretary of Finance for the Mexican State of Coahuila, and Jorge Juan Torres Lopez, 59, former Interim Governor and Secretary of Finance for Coahuila with conspiring to launder monetary instruments and bank fraud. In addition, Villarreal Hernandez was also charged separately with mail fraud and Torres Lopez was charged with wire fraud.
Two previously filed civil forfeiture complaints allege Villarreal Hernandez and Torres Lopez sent more than $2 million each to offshore accounts in Bermuda after misrepresenting the source of the funds to a bank on multiple occasions. The complaints further indicate Villarreal Hernandez is facing charges in Mexico regarding an alleged false loan scheme to steal money from the federal government in Mexico. The documents allege there were several large transfers of money between the U.S. bank accounts of Torres Lopez and Villarreal Hernandez.
If convicted of the money laundering conspiracy, Villarreal Hernandez and Torres Lopez each face up to 20 years in federal prison as well as up to 30 years for bank fraud. Upon conviction of mail or wire fraud, respectively, Villarreal Hernandez and Torres Lopez further face another maximum 20-year-sentence. All charges also carry as possible punishment thousands of dollars in fines.
Neither man is in the custody of the United States and warrants remain outstanding for their arrests. Anyone with information about their whereabouts is asked to contact the Drug Enforcement Administration’s High Intensity Drug Trafficking Area Task Force office in San Antonio at 1-210-499-2900.
The investigation leading to the indictment was conducted through the Organized Crime Drug Enforcement Task Force in San Antonio, Brownsville, Houston and Corpus Christi by agents and officers of Internal Revenue Service - Criminal Investigation, Drug Enforcement Administration, Homeland Security Investigations and the Texas Attorney General’s Office.
The case is being prosecuted by Assistant United States Attorney Julie K. Hampton.
Texas Couple Sentenced to Prison for Conspiracy to Defraud the U.S. and to Engage in Money LaunderingRead the Press Release
PORTLAND, Ore. – A federal judge in Portland has sentenced Hossein Lahiji, 50, and Najmeh Vahid Dasterjerdi a.k.a. Najmeh Lahiji, 33, both of McAllen, Texas, to prison following their June 2013 convictions by a jury in Portland for conspiracy to defraud the United States and to engage in money laundering. Hossein Lahiji is a physician specializing in urology and Najmeh Vahid is an attorney, both practicing in Texas.
On November 19, 2013, Judge Garr M. King sentenced both defendants to serve a year and a day in federal prison. In addition, the defendants were each ordered to pay $200,000 in fines and jointly to pay restitution in the amount of $973,503.00 to the Internal Revenue Service for back taxes owed. The court also confirmed the jury’s verdict forfeiting an additional $600,000 which was involved in the money laundering offense to the United States.
The indictment alleged that defendants conspired to impede and impair the functions of the Internal Revenue Service in the collection of income taxes and the Office of Foreign Assets Control of the Treasury Department in the enforcement of the Presidential Embargo against Iran.
Trial evidence showed that defendants provided funds to a Portland charity, the Child Foundation, between 1998 and 2006. The Child Foundation, in turn, gave the defendants charitable donation receipts and transferred the funds to Iran. Defendants claimed charitable deductions from their income taxes for these payments. Some of the funds were used to purchase a building in Tehran in the name of Hossein Lahiji’s sister. Additional funds were used to invest in an interest-bearing account in an Iranian bank. Yet additional funds were committed to be spent at the discretion of an Iranian Ayatollah. Some of the payments were backdated to facilitate claims of charitable donations for a year prior to the year of actual payment. Many of the uses of the funds violated the Presidential embargo against Iran, instituted in 1995. Co-conspirators Child Foundation and Mehrdad Yasrebi were separately prosecuted and sentenced in March 2012. Child Foundation has since reorganized and continues to operate under the supervision of U.S. Probation officers.
The Presidential Embargo against financial transactions with Iran was first imposed by President Clinton in 1995. Those sanctions have been renewed annually by both Presidents Bush and Obama. U. S. Attorney Amanda Marshall stated that “The enforcement of the sanctions in place against financial transactions with Iran is an important priority of the Department of Justice. Those who would evade those sanctions while cheating on their taxes should expect to be prosecuted.”
Defendants are charged in a separate federal indictment in the Houston Division of the Southern District of Texas with conspiracy to commit health care fraud, health care fraud, conspiracy to violate the Iranian Embargo, and failure to file a report of foreign bank and financial accounts. Trial in the Houston case is currently scheduled for April 2014.
These cases were investigated by the FBI and the IRS - Criminal Investigations Division, and prosecuted by Assistant U.S. Attorneys David Atkinson and Charles Gorder.
Sylvia Canales-Pierson Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on November 26, 2013, before Chief U.S. District Judge Dana L. Christensen, SYLVIA CANALES-PIERSON, a 50-year-old resident of Seattle, Washington, was sentenced to a term of:
- ison: 24 months
- ecial Assessment: $100
- pervised Release: 5 years
CANALES-PIERSON was sentenced in connection with her guilty plea to conspiracy to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Tara J. Elliott, the government stated it would have proved at trial the following:
On October 28, 2011, during the execution of a Montana state search warrant, a Montana Highway Patrol Trooper and a Special Agent with the DEA seized $175,060 and approximately one half pound of methamphetamine from a concealed aftermarket compartment of a Toyota truck driven by CANALES-PIERSON. Donald Leroy Rickards was a passenger in the vehicle. The drugs were later tested by the DEA laboratory which indicated that they contained well over 50 grams of pure methamphetamine.
The agent detained CANALES-PIERSON and her sister, Maria Dolores Ramsdell, after they attempted to retrieve the truck from the Montana Highway Patrol. When interviewed, CANALES-PIERSON indicated that, under the direction of her niece she had been transporting bulk currency and/or methamphetamine about every two weeks since approximately October of 2010 between Kelso, Washington; Minneapolis, Minnesota; and San Jose, California. CANALES-PIERSON stated that her niece had made arrangements on this most recent trip for her to take the Toyota truck. CANALES-PIERSON stated that her niece paid $7,000 on average to her for making each trip, that her boyfriend Rickards had traveled with her during a majority of the trips to keep her company and to share the driving, and that CANALES-PIERSON paid Rickards about $2,000 for taking the trips with her. CANALES-PIERSON stated that she had taken her first trip in October of 2010 with her sister, Ramsdell, who had made prior trips at CANALES-PIERSON's niece's direction from Kelso, Washington, to Minneapolis, Minnesota, then to San Jose, California, back to Minneapolis, and then back to Kelso.
When interviewed, Ramsdell provided statements that were consistent with CANALES-PIERSON's statement, confirming her own involvement in and knowledge of the transportation of methamphetamine and/or bulk currency at the direction of CANALES-PIERSON's niece.
Rickards also made a statement which was consistent with CANALES-PIERSON's statement and confirmed his involvement in and knowledge of the transportation of methamphetamine and/or bulk currency at the direction of the niece.
Ramsdell and Rickards pled guilty to federal charges.
Because there is no parole in the federal system, the truth in sentencing guidelines mandate that CANALES-PIERSON will likely serve all of the time imposed by the court. In the federal system, CANALES-PIERSON does have the opportunity to earn a sentence reduction for good behavior. However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the High Intensity Drug Task Force and the Drug Enforcement Administration.
Stanley Electric Co. Ltd. Agrees to Plead Guilty to Price Fixing on Automobile Parts Installed in U.S. CarsRead the Press Release
Stanley Electric Co. Ltd., a Tokyo-based company, has agreed to plead guilty and to pay a $1.44 million criminal fine for its participation in a conspiracy to fix prices of lamp ballasts installed in cars sold in the United States and elsewhere, the Department of Justice announced today.
According to a one-count felony charge filed today in U.S. District Court for the Eastern District of Michigan in Detroit, Stanley Electric engaged in a conspiracy to rig bids for, and to fix, stabilize and maintain the prices of, automotive high-intensity discharge (HID) lamp ballasts sold to automakers in the United States and elsewhere. Stanley Electric has also agreed to cooperate with the department’s ongoing investigation. The plea agreement is subject to court approval.The department said that Stanley Electric and its co-conspirators sold or supplied the ballasts at noncompetitive prices to automakers in the United States and elsewhere. Stanley Electric’s involvement in the conspiracy to fix prices of automotive HID lamp ballasts lasted from as early as July 1998 until at least February 2010.
Stanley Electric manufactures and sells automotive HID headlamps, which contain automotive HID lamp ballasts. An automotive HID lamp ballast is an electrical device that is essential for the operation of an HID headlamp. It regulates the electrical current used to ignite and control the electrical arc that generates the intensely bright light emitted by an automotive HID headlamp fixture.
The department said the company and its co-conspirators carried out the conspiracy through meetings and conversations in which they discussed and agreed upon bids, price quotations and price adjustments and agreed to allocate among the companies certain sales of HID lamp ballasts sold to automobile and component manufacturers.
Including Stanley, 23 corporations have been charged in the department’s investigation into price fixing and bid rigging in the auto parts industry. Those companies have agreed to pay a total of over $1.8 billion in fines. Additionally, 26 individuals have been charged.
Stanley Electric Co. Ltd. is charged with price fixing in violation of the Sherman Act, which carries a maximum penalty of a $100 million criminal fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s prosecution arose from an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charges were brought by the National Criminal Enforcement Section, with the assistance of the Detroit, Michigan Field Office of the FBI and the FBI headquarters’ International Corruption Unit. Anyone with information concerning the focus of this investigation should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html, or call the Detroit Field Office of the FBI at 313-965-2323.
Springfield Man Sentenced to Ten Years in Prison for Distributing Child PornographyRead the Press Release
EUGENE, Ore. – On Tuesday, November 26, 2013, Chief U.S. District Judge Ann Aiken sentenced Kenneth Nin Chin, 53, of Springfield, Oregon, to a prison term of ten years and one month for distributing child pornography. Following an investigation by the Federal Bureau of Investigation and the Department of Homeland Security, a search warrant was executed at Chin’s residence. On Chin’s computer, agents discovered thousands of images depicting child exploitation, including the sexual abuse of infants and toddlers, and it was determined that Chin was also involved in distributing these images online to others. In addition, Chin engaged in online chats in which he wrote about his desire to engage in sexual activity with minor boys.
“Images of child exploitation cause tremendous harm to the victims-not just by the horrible abuse involved in creating the images but in the perpetuation of the abuse every time these images are shared,” stated U.S. Attorney Amanda Marshall. “Those involved in possessing and distributing these horrific images help fuel the market for such depravity, and my office is committed to doing everything we can to put a stop to it.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Federal Bureau of Investigation and Department of Homeland Security, and was prosecuted by Assistant U.S. Attorney Jeffrey S. Sweet.
Parmelee Man Sentence for Child AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Parmelee, South Dakota, man convicted of Child Abuse was sentenced on November 26, 2013, by Roberto A. Lange.
Morrisette was immediately turned over to the custody of the U.S. Marshals Service.
Joseph Morrisette, age 43, was sentenced to 9 months of custody, 18 months of supervised release, and $100 special assessment to the Federal Crime Victims Fund.
Morrisette was indicted for Child Abuse by a federal grand jury on August 21, 2013. He pled guilty on September 16, 2013.
Morrisette’s conviction was the result of a July 9, 2013, incident when Morrisette was babysitting several children at his home while he was drinking. While he was intoxicated, he struck the victim and gave the child a black eye.
This case was investigated by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher prosecuted the case.
Nine Defendants, Including Title Company Owners and Lawyers, Indicted in Two Separate Mortgage Fraud SchemesRead the Press Release
CHICAGO — A couple who owned a now-defunct suburban title company, a disbarred attorney, and an attorney are among nine defendants who have been indicted in two separate mortgage fraud cases, federal law enforcement officials announced today. Seven defendants were charged together in one case, and two in the second case, together alleging schemes to fraudulently obtain at least four residential mortgage loans totaling more than $1 million from lenders.
Both indictments allege that the mortgages were obtained to finance the purchase of properties on Chicago’s south side, using fraudulent means such as straw purchasers, short sales, inflated prices, and unqualified buyers, while the defendants allegedly profited. As a result, the lenders incurred losses because the mortgages were not fully recovered through subsequent sale or foreclosure.
Seven defendants were charged in an indictment that was unsealed on Monday following the arrest of HARVEY WRIGHT, 46, of Chicago, a disbarred South Holland attorney, and PRECIOUS HOUSE, 47, of Chicago. Also indicted, but not arrested, were DAVID GUEL, 60, and his wife, MARY GLEASON, 48, both of Blue Island; MUNTAZER ALI SAIYED, also known as “Monty Saiyed,” 37, of Bartlett; SAGED ANSARI, 32, of Hanover Park; and AZEEM SYED, 30, of Bolingbrook. All seven were charged with two counts of wire fraud and House, Syed, Saiyed, and Ansari were also charged with one count each of identity theft. The indictment seeks forfeiture of more than $800,000.
Guel and Gleason owned and operated the former U.S. Worldwide Title Services LLC, a title company located in Downers Grove.
All seven defendants pleaded not guilty yesterday or Monday in U.S. District Court and were released on bond. A status hearing was scheduled for Jan. 13.
According to the indictment, between September 2008 and March 2009, the defendants caused two fraudulent mortgage loans to be issued by lenders for properties at 4823 South Racine Ave., and 6738 South Marshfield Ave. The alleged fraud involved false representations in documents, including real estate contracts, loan applications, title commitments, and HUD-1 settlement statements concerning sales prices, the true disbursement of the loan proceeds at closing, the buyer’s assets, employment, and income.
The defendants allegedly used straw buyers who had no intention of residing in the property and making mortgage payments, as well as stolen identities of individuals who did not know that their identities were being used to purchase property. Guel, Gleason, Wright, and House allegedly conducted “double closings” at Worldwide Title in which a single property was sold twice through a short sale of the property from an owner to a buyer, who only temporarily took ownership before immediately re-selling to a second buyer at an inflated sales price using a fraudulently obtained mortgage to finance the purchase.
House allegedly facilitated the double closings by recruiting individuals to pose as the first and second buyers and arranging for them to use stolen identities provided by Syed, Saiyed, and Ansari, in connection with the transactions, the indictment alleges.
Guel, Gleason, and Wright allegedly prepared fraudulent documents stating that the properties had been transferred into a trust approximately a year before the double closing to conceal from the lender that the property was being sold twice, including on the same day. These three defendants and House allegedly obtained loan proceeds for their own personal benefit.
This case is part of Operation Mad House, an undercover investigation designed to combat mortgage and real estate fraud in the Chicago area with a focus on professionals in the real estate industry. Since 2009, more than 50 defendants have been convicted, including title company operators, mortgage brokers, licensed appraisers, and attorneys.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Barry McLaughlin, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development Office of Inspector General in Chicago; and James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.
The government is being represented by Assistant U.S. Attorneys Sunil Harjani and Kathryn Malizia.
In an unrelated case, GEORGE KOUVELIS, 39, of Bloomingdale, who bought and sold residential properties, and KARIM DURE, 39, of Chicago, an Evanston attorney, were each charged with two counts of wire fraud in an indictment that was unsealed on Nov. 14 after Kouvelis was arrested. Kouvelis and Dure, who was not arrested, both pleaded not guilty and were released on bond. Their next court date is Jan. 6. The indictment seeks forfeiture of $521,250.
According to the indictment, between November 2008 and March 2009, Kouvelis and Dure caused a buyer to obtain two fraudulent mortgage loans to purchase Kouvelis’ properties at 5804 South Princeton Ave., and 5563 South Shields Ave. The defendants allegedly made false representations in documents, including real estate contracts, loan applications, and HUD-1 settlement statements concerning inflated sales prices, money paid to the buyer for purchasing the properties, the buyer’s assets, liabilities, and source of down payment.
The indictment alleges that Kouvelis fraudulently obtained mortgage loan proceeds through false closing documents, which concealed that the buyer was being paid to purchase the properties; concealed that the funds being used for down payments were provided by another individual; inflated purchase prices; and concealed that the buyer was contributing little or no equity to the transactions. Dure allegedly represented the buyer knowing that the loans were being funded based on false information about the buyer’s qualifications, including a will submitted by the buyer and a letter that Dure submitted to the lender verifying that the buyer had received $200,000 from his grandfather’s estate.
Mr. Fardon announced the Kouvelis / Dure charges with Mr. McLaughlin, Mr. Holley, and Tony Gómez, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. The government is being represented by Assistant U.S. Attorney Jason Yonan.
Each count of wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, and restitution is mandatory. The identity theft count against defendants House, Syed, Saiyed, and Ansari carries a maximum of 15 years in prison and a $250,000 fine. If convicted, the Court may impose an alternate fine totaling twice the loss to any victim or twice the gain to the defendant, whichever is greater. The Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that indictments contain only charges and are 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.
Since 2008, several hundred defendants have been charged in Federal Court in Chicago and Rockford with engaging in various mortgage fraud schemes involving more than 1,000 properties and more than $300 million in potential losses, signifying the high priority that federal law enforcement officials give mortgage fraud in an effort to deter others from engaging in crimes relating to residential and commercial real estate.
Today’s announcement is part of efforts underway by the Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has facilitated increased investigation and prosecution of financial crimes; enhanced coordination and cooperation among federal, state and local authorities; addressed discrimination in the lending and financial markets, and conducted outreach to the 6 public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants. For more information on the task force, visit stopfraud.gov.
Kouvelis Indictment
Guel IndictmentNew Haven Man Sentenced to 46 Months in Federal Prison for Distributing Crack CocaineRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ERICK EVANS, also known as “E.J.” and “Hoov,” 23, of New Haven, was sentenced today by Senior U.S. District Judge Ellen Bree Burns in New Haven to 46 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.
EVANS is one of more than 100 individuals charged as a result of “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants, and seizures of narcotics and firearms.
EVANS was arrested on May 17, 2012, after he was found in possession of crack cocaine that he intended to distribute. On September 4, 2013, he pleaded guilty to one count of possession with intent to distribute and to distribute cocaine base (“crack cocaine”). This is his first felony conviction.
EVANS was remanded to federal custody on November 14, 2013, after he violated the conditions of bond.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Marc Silverman.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Navajo Woman Pleads Guilty to Involuntary Manslaughter Charge Arising Out of Death of Isleta Pueblo ManRead the Press Release
ALBUQUERQUE – Julisa Raelynn Sanchez, 20, an enrolled member of the Navajo Nation who resides in Peralta, N.M., pleaded guilty today to an involuntary manslaughter charge under a plea agreement with the U.S. Attorney’s Office.
Sanchez was arrested on May 22, 2013, on a criminal complaint charging her with involuntary manslaughter and assault charges arising out of a May 11, 2013, single car motor vehicle crash occurring on Isleta Pueblo lands. She subsequently was indicted and charged with involuntary manslaughter and assault resulting in serious bodily injury.
Court filings reflect that in the early hours of May 11, 2013, Sanchez lost control of the vehicle she was driving, drove the vehicle into a water-filled irrigation ditch, and slammed into a cement pillar in the Chicala lateral ditch bank in Isleta Pueblo. At the time of the crash, there were three passengers in Sanchez’s vehicle, two of whom were seriously injured, and a third, a 26-year-old Isleta Pueblo man (victim), who was pronounced dead at the scene. Sanchez was driving while intoxicated when the crash occurred.
Today, Sanchez entered a guilty plea to Count 1 of the indictment charging her with involuntary manslaughter. Sanchez admitted that she killed the victim while driving while under the influence of alcohol on May 11, 2012.
Sanchez remains on conditions of release pending her sentencing hearing, which has yet to be scheduled. Sanchez faces a maximum penalty of eight years of imprisonment followed by three years of supervised release and restitution as ordered by the Court.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Kyle T. Nayback.
Lockport man pleads guilty to drug conspiracy chargeRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Alfonzo Maye a/k/a “Fonzo,” 41, of Lockport, N.Y., pleaded guilty before U.S. Magistrate Judge Leslie G. Foschio, to conspiracy to possess with intent to distribute, and to distribute, cocaine. The charge carries a maximum penalty of 20 years in prison, a $1,000,000 fine, or both.
Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, stated that Maye distributed cocaine and cocaine base in the Lockport area from June, 2009 through August, 2010, which was supplied to him by co-defendant Eric Williams. Maye is one of 22 defendants convicted as a result of this drug investigation.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig, and the Niagara County Drug Task Force, under the direction of Sheriff James Votour.Lansing Man Sentenced to 25 Years in Federal Prison for Role in Drug Dealing in Mount Vernon Area of Northwest LansingRead the Press Release
Lansing and ATF Investigation Results in 80% Decrease in Calls for Service in Area
GRAND RAPIDS, MICHIGAN – Merza Mizori, 24, of Lansing, Michigan was sentenced to 300 months (25 years) in federal prison for distributing over 28 grams of crack cocaine, U.S. Attorney Patrick A. Miles, Jr., Acting Special Agent in Charge (SAC) Daryl R. McCrary, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Michael Yankowski, Lansing Police Department (LPD), announced today. In addition to the prison term, U.S. Chief District Judge Paul L. Maloney imposed five years of supervised release that commences once Mizori is released from imprisonment.
In 2010, LPD and ATF initiated a joint investigation into criminal activity in the Mount Vernon Public Housing area as a result of a large volume of calls for service in the area for drug trafficking and firearm violence. The joint investigation identified Mizori, who lived in a Mount Vernon unit, as one of the individuals responsible for dealing crack cocaine in the area. In January 2013, a federal grand jury indicted Mizori, his brother Serwan Mizori, 23; Christapher Jones, 22; Gregory Dalton, 24; and DeShun Dalton, 22, with multiple drug charges.
Mizori pled guilty to the distribution charge and the others pled guilty to various charges. Chief Judge Maloney sentenced the others to federal prison as follows: Serwan Mizori to 240 months (20 years) in prison and five years’ supervised release for his conviction of distribution of crack cocaine; Jones to 120 months (10 years) in prison and five years’ supervised release for his conviction of distribution of over 28 grams of crack cocaine; Gregory Dalton to 106 months in prison and four years’ supervised release for his conviction of distribution of crack cocaine and possession of a firearm in furtherance of drug trafficking; and DeShun Dalton to 51 months in prison and three years’ supervised release for his conviction of distribution of crack cocaine.
U.S. Attorney Miles noted the “investigation and prosecution were a perfect example of how federal and local authorities can work together to address specific problems in our communities, especially firearm violence and drug trafficking.” Acting SAC McCrary noted that “ATF values the strong working relationship with the Lansing Police Department that makes this type of community impact possible.” Lansing Police Department Chief Yankowski stated, “The community is in fact safer as proven by departmental crime analysis that reveals an 80% decrease in calls for service to the Mount Vernon area after this group was arrested from the area in January 2013.”.
END
Justice Department Reaches Agreement with Oklahoma Child Care Center to Ensure Equal Rights for Children with DisabilitiesRead the Press Release
The Justice Department announced today that it has reached a settlement with Camelot Child Development Center of Oklahoma City and Edmond, Okla., under the Americans with Disabilities Act (ADA). The settlement resolves allegations that Camelot violated the ADA by prohibiting a child with Down syndrome from field trips, and threatening to expel her, because of her developmental delays. Because the child is not fully toilet-trained, she wears pull-up diapers and requires help with toileting. Camelot provides toileting assistance to younger children, but Camelot refused to provide such assistance to the child with Down syndrome during field trips. As a result, the child could not join in these outings with the other children. In addition, at one point, Camelot threatened to expel the child because of her need for toileting assistance.
Title III of the ADA prohibits discrimination on the basis of disability in child care centers. Under the ADA, child care centers must make reasonable modifications to their policies, practices or procedures when necessary to provide equal access to a child with a disability, unless a modification would fundamentally alter the nature of the goods and services. Personal services, such as diapering or toileting assistance, may be required for children who need it due to a disability, regardless of age, when such personal services are provided to other children.
Camelot worked cooperatively with the Justice Department throughout the investigation to change its policies to ensure the center will treat children with disabilities fairly and equally. Under the agreement, Camelot will also pay $3,000 to the family and provide one full year of child care services free of charge to compensate the child and the mother for the harm they have endured as a result of Camelot’s actions. In addition, Camelot will train its staff on the ADA and develop and implement an anti-discrimination policy. The department will monitor Camelot’s compliance for three years.
“Equal access to school and after-school programs is essential to children and parents across the country,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “School and after-school programs allow children with disabilities to learn and play with their peers and develop important social skills. The Civil Rights Division takes disability discrimination in child care settings very seriously and will not allow the exclusion of children with developmental delays.”
“Children are our most valuable resource and must be afforded equal opportunities to grow, learn, and develop,” said U.S. Attorney Sanford C. Coats. “The Americans with Disabilities Act ensures that a child with a disability has the same access to those opportunities as a child who is not disabled.”
The enforcement of the ADA is a top priority of the department’s Civil Rights Division. Those interested in finding out more about this settlement or the obligations of child care centers under the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov . ADA complaints may be filed by email to [email protected] .
Isabel Woman Sentenced for Simple Assault of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that an Isabel, South Dakota, woman convicted of Simple Assault of a Minor was sentenced on November 25, 2013, by U.S. Magistrate Judge Mark A. Moreno.
This case was investigated by the Federal Bureau of Investigation and the Cheyenne River Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Crystal Lee Reeder, a/k/a Crystal Taylor, age 29, was sentenced to 6 months of probation and a $25 special assessment to the Federal Crime Victims Fund.
Reeder was indicted for Child Abuse by a federal grand jury on June 12, 2013. She pled guilty on September 19, 2013, to Simple Assault of a Minor.
In May 2012, the victim went to Reeder’s home to visit. During the visit, Reeder asked the victim, who was under the age of 16, inappropriate questions and offered alcohol to the victim, which she refused. While the victim was sitting on the couch, Reeder engaged in offensive touching of the victim and a Simple Assault of the victim’s person.
Former Suppliers of Beef to National School Lunch Program<br /> Settle Allegations of Improper Practices and Mistreating CowsRead the Press Release
Several California companies and individuals that formerly supplied beef to the National School Lunch Program have agreed to settle allegations of inhumane handling of cattle, circumventing appropriate inspection of nonambulatory disabled (“downer”) cattle and false representations regarding their eligibility to process beef, the Justice Department announced today. The announcement follows approval of the last of these settlements by a California probate court.
“Children across the country depend on the National School Lunch Program to provide them with a healthy meal each day, so we all depend on companies providing food to the program to follow the rules designed to ensure those meals are safe to eat,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “The Justice Department will pursue aggressively anyone whose unlawful conduct puts the safety of our food at risk.”
“The contractors who supply beef and other meat products to schools and child-care facilities have a responsibility to provide our nation’s young people with products that come only from healthy and humanely handled animals,” said U.S. Attorney for the Central District of California André Birotte Jr. “This settlement holds accountable businesses that mistreated cows on a regular basis and routinely evaded a critically important USDA inspection procedure that allowed ‘downer cows’ to be processed into food.”
The settlements will conclude a lawsuit initiated by the Humane Society of the United States (HSUS) under the whistleblower provisions of the False Claims Act (FCA) after an HSUS investigator videotaped alleged inhumane cattle handling and improper downer cattle inspection practices at the slaughterhouse and meat processing facility of Westland Meat Co. and Hallmark Meat Packing Co. in Chino, Calif. The government later joined the lawsuit and brought additional claims that the defendants concealed their ineligibility to process beef because a convicted felon, Aaron “Arnie” Magidow, was a partner in and otherwise responsibly connected with the facility’s operations. U.S. Department of Agriculture (USDA) regulations applicable to suppliers of the National School Lunch Program prohibit the inhumane handling of cattle, require the proper inspection and disposition of downer cattle and require suppliers to identify convicted felons who are responsibly connected to the suppliers’ operations.
The National School Lunch Program, administered by the USDA, is a federally assisted meal program operating in public and nonprofit private schools and residential child-care institutions. The program provides nutritionally balanced, low-cost or free lunches to children each school day. All ground beef containing the defendants’ products was recalled as of Feb. 16, 2008, and the defendants no longer supply beef to the National School Lunch Program.
“A top priority for USDA’s Office of Inspector General (OIG) is protecting the integrity of America’s food supply by investigating violations of the Federal Meat Inspection Act,” said USDA-OIG Western Region Special Agent in Charge Lori Chan. “Agents from OIG’s Diamond Bar, Calif., office conducted an extensive investigation of the Hallmark/Westland facility, which supplied ground beef to schools through USDA’s National School Lunch Program. The government’s joint investigation led to one of the largest civil settlements in OIG’s history.”
Under the settlements, Westland Meat Co., based in Corona Del Mar, Calif., and its owner Steve Mendell will pay $240,000, and Westland will enter into a consent judgment for $155.68 million. M&M Management, also based in Corona Del Mar, Calif., and Cattleman’s Choice, based in Commerce, Calif., and the estate of Cattleman’s deceased owner, Arnie Magidow, and Magidow’s surviving spouse will pay a total of approximately $2.45 million. Magidow’s surviving spouse was named in the lawsuit as a successor in interest to Magidow and is not alleged to have engaged in any wrongdoing. In October 2012, defendants Donald R. Hallmark and Donald W. Hallmark settled allegations for $304,130.The FCA’s whistleblower provisions, under which HSUS filed the lawsuit, permit a private entity to bring a lawsuit on behalf of the government and to share in any proceeds from the suit. The FCA also allows the government to intervene in the lawsuit, as it has done in this case. As a result of the settlements announced today, HSUS will receive approximately $600,000.
The case was handled by the U.S. Attorney’s Office for the Central District of California and the Justice Department’s Civil Division, Commercial Litigation Branch; in cooperation with the USDA Office of Inspector General. The claims resolved by the settlement are allegations only; there has been no determination of liability.
Former Supplier of Beef to National School Lunch Program Settle Allegations of Improper Practices and Mistreating CowsRead the Press Release
LOS ANGELES -- Several California companies and individuals that formerly supplied beef to the National School Lunch Program have agreed to settle allegations of inhumane handling of cattle, circumventing appropriate inspection of nonambulatory disabled (“downer”) cattle and false representations regarding their eligibility to process beef, the Justice Department announced today. The announcement follows approval of the last of these settlements by a California probate court.
The settlements will conclude a lawsuit initiated by the Humane Society of the United States (HSUS) under the whistleblower provisions of the False Claims Act (FCA) after an HSUS investigator videotaped alleged inhumane cattle handling and improper downer cattle inspection practices at the slaughterhouse and meat processing facility of Westland Meat Co. and Hallmark Meat Packing Co. in Chino. The government later joined the lawsuit and brought additional claims that the defendants concealed their ineligibility to process beef because a convicted felon, Aaron “Arnie” Magidow, was a partner in and otherwise responsibly connected with the facility’s operations. U.S. Department of Agriculture (USDA) regulations applicable to suppliers of the National School Lunch Program prohibit the inhumane handling of cattle, require the proper inspection and disposition of downer cattle and require suppliers to identify convicted felons who are responsibly connected to the suppliers’ operations.
“The contractors who supply beef and other meat products to schools and child-care facilities have a responsibility to provide our nation’s young people with products that come only from healthy and humanely handled animals,” said United States Attorney André Birotte Jr. “This settlement holds accountable businesses that mistreated cows on a regular basis and routinely evaded a critically important USDA inspection procedure that allowed ‘downer cows’ to be processed into food.”
Stuart F. Delery, the Assistant Attorney General for the Justice Department’s Civil Division, said: “Children across the country depend on the National School Lunch Program to provide them with a healthy meal each day, so we all depend on companies providing food to the program to follow the rules designed to ensure those meals are safe to eat. The Justice Department will pursue aggressively anyone whose unlawful conduct puts the safety of our food at risk.”
The National School Lunch Program, administered by the USDA, is a federally assisted meal program operating in public and nonprofit private schools and residential child-care institutions. The program provides nutritionally balanced, low-cost or free lunches to children each school day. All ground beef containing the defendants’ products was recalled as of Feb. 16, 2008, and the defendants no longer supply beef to the National School Lunch Program.
“A top priority for USDA’s Office of Inspector General (OIG) is protecting the integrity of America’s food supply by investigating violations of the Federal Meat Inspection Act,” said USDA-OIG Western Region Special Agent in Charge Lori Chan. “Agents from OIG’s Diamond Bar office conducted an extensive investigation of the Hallmark/Westland facility, which supplied ground beef to schools through USDA’s National School Lunch Program. The government’s joint investigation led to one of the largest civil settlements in OIG’s history.”
Under the settlements, Westland Meat Co., based in Corona Del Mar, and its owner, Steve Mendell, will pay $240,000, and Westland will enter into a consent judgment for $155.68 million. M&M Management, also based in Corona Del Mar; Cattleman’s Choice, based in Commerce; the estate of Cattleman’s deceased owner, Arnie Magidow; and Magidow’s surviving spouse will pay a total of approximately $2.45 million. Magidow’s surviving spouse was named in the lawsuit as a successor in interest to Magidow and is not alleged to have engaged in any wrongdoing. In October 2012, defendants Donald R. Hallmark and Donald W. Hallmark settled allegations for $304,130.
The FCA’s whistleblower provisions, under which HSUS filed the lawsuit, permit a private entity to bring a lawsuit on behalf of the government and to share in any proceeds from the suit. The FCA also allows the government to intervene in the lawsuit, as it has done in this case. As a result of the settlements announced today, HSUS will receive approximately $600,000.
The case was handled by the U.S. Attorney’s Office for the Central District of California and the Justice Department’s Civil Division, Commercial Litigation Branch; in cooperation with the USDA Office of Inspector General. The claims resolved by the settlement are allegations only; there has been no determination of liability.
Release No. 13-136
Former DEA Pilot Sentenced for Lying About Number of Missions FlownRead the Press Release
DENVER – Jeremy S. Peres, age 44, of Denver, Colorado, and a former DEA pilot, was sentenced by U.S. District Court Judge Robert E. Blackburn to serve 1 years’ probation, and was ordered to pay restitution totaling $4,368 to the federal government for making and using a false document knowing it contains false statements, the Department of Justice announced. Specifically, Peres lied about the number of missions he flew while working for the DEA. Certain missions earn law enforcement pilot hazard pay, which in this case Peres received. Peres no longer works for the DEA.
Peres was indicted by a federal grand jury in Denver on February 26, 2013. He pled guilty to making and using false documents on August 15, 2013. He was sentenced today, November 27, 2013.
According to court documents, including the stipulated facts in the plea agreement, the defendant was a Drug Enforcement Administration (DEA) pilot. The DEA maintained aircraft at a Metro Denver airport, and the defendant was a DEA pilot based in Colorado. The DEA paid the defendant a salary, and the defendant was also entitled to receive hazard pay when he flew missions under specified hazardous conditions. In order to receive the supplemental hazard pay, the defendant was required to submit a Flight Hazard Pay Certificate (FHPC) to the DEA for each qualifying flight.
Between November 2011 and July 2012, Peres submitted 44 false and fraudulent FHPCs for missions he did not actually pilot or co-pilot. When he was contacted by his supervisor, he stated that there were discrepancies in the DEA paperwork because he was actually flying a Federal Bureau of Investigation (FBI) plane for those instances. The defendant, in fact as he knew, had not flown a FBI plane in those instances, and in fact had not flown any plane. The defendant’s submission of the false FHPCs caused the DEA to pay the defendant hazard pay equal to approximately 25 percent of his daily salary, totaling $4,368.
This case was investigated by the Department of Justice Office of the Inspector General. Peres was prosecuted by Assistant U.S. Attorney Anna Edgar.
####
Emmonak Woman sentenced to prison for theft of cash from registered mailRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that an Emmonak woman who pled guilty was sentenced in federal court in Anchorage for four felony violations of theft of mail by an officer or employee of the U.S. Postal Service.
Sharon Andrews, 54, of Emmonak, Alaska, admitted to stealing nine registered mail packages containing a total of $174,000 in cash. Andrews was sentenced today by Chief U.S. District Court Judge Ralph R. Beistline to 4 months in prison, three years of supervised release, and was ordered to repay $164,700 in restitution.
According to Assistant U.S. Attorney Bryan Schroder, who prosecuted the case, in 2010 Andrews was the Postmaster in Emmonak, Alaska. In May 2010, Andrews illegally took possession of three registered mail packages containing a total of $44,000 in cash. The packages were supposed to be forwarded to Kotlik, Alaska, but Andrews stole them instead. In September 2010, she illegally took possession of an additional registered mail package containing $25,000 in cash. That package was also addressed to Kotlik, Alaska. Finally, in October 2012, Andrews again illegally took possession of five additional packages containing a total of $93,100 in cash, also addressed to Kotlik.
Ms. Loeffler commends the U.S. Postal Service Office of Inspector General, and the U.S. Postal Inspection Service for the investigation of this case.
East St. Louis Post Office Supervisor Indicted for Stealing PackagesRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Jane Johanna Emily, a/k/a Jane Moeller, 41, of St. Louis, Missouri, was arraigned on November 26, 2013, at the East St. Louis federal courthouse on three charges that she stole packages from the U.S. Mail.
The indictment alleges that in March and April 2013, Emily, who was working as a supervisor in the East St. Louis Post Office, opened and stole mail packages.
The federal grand jury indictment charges Emily with Obstruction of Mail in violation of Title 18, United States Code, Section 1702; Theft of U.S. Mail by a Postal Employee in violation of Title 18, United States Code, Section 1709; and Opening of Mail in violation of Title 18, United States Code, Section 1703(a). Each charge carries a maximum penalty of 5 years in prison, a $250,000 fine, and up to 3 years of supervised release.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
The case was investigated by agents of the U.S. Postal Service, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Liam Coonan.
Dustin Berg Panian Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on November 26, 2013, before Chief U.S. District Judge Dana L. Christensen, DUSTIN BERG PANIAN, a 25-year-old resident of Missoula, was sentenced to a term of:
- ison: 12 months and 1 day
- ecial Assessment: $100
- pervised Release: 5 years
PANIAN was sentenced in connection with his guilty plea to conspiracy to distribute cocaine and heroin.
In an Offer of Proof filed by Assistant U.S. Attorney Tara J. Elliott, the government stated it would have proved at trial the following:
Beginning in approximately the spring of 2011 and continuing through February of 2013, PANIAN, Mackenzie Richard Keene Joiner, and Austin Leo Timothy Hagman distributed cocaine throughout the Missoula area. A CI (CI 1) would have testified that each defendant received more than 500 grams of cocaine from him/her during this period for redistribution in Missoula. A second CI (CI 2) would have testified and confirmed this information.
Finally, a third CI (CI 3) would have testified to receiving narcotics from Joiner and would have further testified that s/he knew that Joiner and Hagman worked together and that they and PANIAN received their drugs from CI 1.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that he will likely serve all of the time imposed by the court. In the federal system, they do have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
District Man Sentenced to 15 Years in Prison on Federal Narcotics ChargesDefendant Fled Area After Pleading Guilty to Crimes in 2009; Later Captured by the U.S. Marshals ServiceRead the Press Release
WASHINGTON – Deandre Kelly, 31, formerly of Washington, D.C., has been sentenced to 15 years in prison on federal narcotics charges, announced U.S. Attorney Ronald C. Machen Jr., Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD) and Mark A. Magaw, Chief of the Prince George’s County, Md. Police Department.
Kelly pled guilty in July 2009 in the U.S. District Court for the District of Columbia to charges filed in two separate cases. In one, he pled guilty to conspiracy to distribute and possess with intent to distribute PCP. In the other, he pled guilty to possession with intent to distribute cocaine base. While awaiting sentencing and other hearings in that case, Kelly disappeared. A warrant was issued for his arrest in September 2009 after he failed to appear for a court hearing.
Kelly remained a fugitive until Jan. 22, 2011, when he was arrested in Garrett County, Md., after leading police on a high-speed car chase. During that chase, he lost control of a vehicle several times, striking a guardrail and a bridge pillar, before ultimately becoming disabled in a snow embankment. Law enforcement discovered marijuana and a loaded firearm in the vehicle, and Kelly was arrested. However, the following evening, he made an armed escape from the Garrett County Detention Center, aided by associates waiting for him in the parking lot.
The U.S. Marshals Service arrested Kelly on May 13, 2011 in Lynchburg, Va., and he has been in custody ever since. The actions in Maryland remain under investigation.
The 15-year sentence, imposed Nov. 14, 2013 by the Honorable Emmet G. Sullivan, was made public by the Court this week. The sentence was for the earlier drug offenses, involving crimes in the District of Columbia and Maryland. One case involved a search of Kelly’s residence in February 2009 that led to the recovery of PCP, a revolver and ammunition. As part of his plea, Kelly admitted to possessing the narcotics, firearm and ammunition, and to conspiring with others to distribute PCP. The second case, transferred to the District of Columbia from Maryland, involved the recovery of crack cocaine from Kelly’s vehicle following a traffic stop in Prince George’s County in July 2008.
Kelly has three previous convictions involving narcotics, as well as a conviction for conspiracy to commit robbery.
In announcing the sentence, U.S. Attorney Machen, Chief Lanier and Chief Magaw commended the work of those who investigated the drug offenses for the MPD and Prince George’s County Police Department. They also expressed appreciation to the U.S. Marshals Service for its work in locating and arresting the defendant, as well as the U.S. Attorney’s Office for the District of Maryland for its work on the case. Finally, they acknowledged the efforts of Assistant U.S. Attorney Kathleen A. Connolly and former Assistant U.S. Attorney Patrick Costello, Jr., who investigated and prosecuted the case.
13-408Clay County Jail Administrator Indicted for Violating Inmates' Civil RightsRead the Press Release
BIRMINGHAM -- A federal grand jury today indicted the former jail administrator of the Clay County Detention Center for violating the civil rights of four inmates by using his authority to sexually abuse or otherwise deprive the inmates of their constitutional rights, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
An indictment filed in U.S. District Court charges JEFFREY SCOTT COTNEY, 48, of Ashland, with eight counts of deprivation of rights under color of law between May 2009 and spring 2010 while he worked as Clay County's jail administrator.
"It is unacceptable for law enforcement officers who are entrusted with police powers to sexually abuse inmates," Vance said. "People convicted of crimes are to be punished by the justice system according to the rule of law. They should not be subjected to a deprivation of their constitutional rights by one who abuses the power of his badge for personal gratification."
The first four counts of the indictment charge Cotney with coercing an inmate to submit to a sexual act on four separate dates between May 2009 and September 2009. Count Five charges Cotney with depriving that same inmate of his liberty, without due process of law, by withdrawing the inmate's application for acceptance into a community corrections program in Barbour County in order to keep the man confined in the Clay County Detention Center. Cotney falsely represented the inmate's interest in the community corrections program and withdrew his application for the program without the inmate's knowledge, according to the indictment.
Counts Six and Seven charge Cotney with directing two inmates, one in August 2009 and the other in spring 2010, to disrobe and then rubbing the tattoos on their bodies, thereby depriving them of their constitutional rights to be free from unreasonable searches and to possess bodily privacy and integrity.
Count Eight charges Cotney with depriving a fourth inmate of his right to be free from cruel and unusual punishment by falsely accusing the inmate of possessing contraband, ordering him into lockdown for 45 days and having him transferred to a state prison, all in retaliation for the man rejecting a sexual proposition from Cotney.
Cotney could face a total of eight years in prison on all counts charged.
The FBI and the Alabama Bureau of Investigation investigated the case, which Assistant U.S. Attorney Tamarra Matthews Johnson is prosecuting.
The public is reminded that an indictment contains only charges. A defendant is presumed innocent and it is the government's responsibility to prove guilt beyond a reasonable doubt at trial.
Camden County, N.J., Man Convicted for $1.2 Million Phony Pizza Shop Investment Scam, Other OffensesRead the Press Release
CAMDEN, N.J. — A federal jury convicted a Camden County, N.J., man today for allegedly defrauding an investor out of approximately $1.2 million he claimed would be invested in a pizza shop, then laundering that money, failing to report it to the IRS and threatening the victim to keep quiet about his crimes, U.S. Attorney Paul J. Fishman announced.
Giovanni Arena, 58, of Laurel Springs, N.J., was found guilty of 15 counts of mail fraud, eight counts of money laundering, three counts of failure to file income tax returns and one count of tampering with witnesses following a seven-day trial before Chief U.S. District Judge Jerome B. Simandle in Camden federal court. The jury deliberated less than four hours before delivering the guilty verdicts. Arena was acquitted on seven counts of mail fraud and one count of money laundering.
According to documents filed in this case and the evidence at trial:
Arena’s scheme defrauded a single investor of approximately $1.2 million from 2004 through 2008. Arena, who had operated pizza restaurants in the past, enticed the victim to send checks and cash through the U.S. mail to invest in the purchase of a pizza shop in southern New Jersey. Rather than using the money to buy a restaurant, Arena purchased luxury automobiles – including a Maserati Coupe and Chevrolet Camaro – gambled at Atlantic City Casinos and paid his living expenses.The jury reviewed casino records that showed the defendant spent many hours at the gaming tables, losing more than $700,000 in four years of Atlantic City gambling. During the trial, the jury watched surveillance video of the defendant buy in at a black jack table using $81,000 in cash he brought to the table in a shopping bag.
In addition, Arena willfully did not file his individual tax returns for tax years 2006, 2007
and 2008, failing to report hundreds of thousands of dollars in income to the IRS. After federal agents served search warrants on Arena’s property during the course of the investigation, Arena instructed the victim investor to lie to federal investigators and made threatening statements, saying, “you better not put me in trouble because if you put me in trouble, I’ll put you in trouble.”Each mail fraud count carries a maximum potential penalty of 20 years in prison and a $500,000 fine. Each money laundering count carries a maximum potential penalty of 10 years in prison and a $250,000 fine or twice the value of the property involved in the transaction. Each failure to file tax returns count carries a maximum potential of one year in prison and a $100,000 fine or twice the gain resulting from the offense or twice the loss to any victim. The tampering with a witness or victim count carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is currently scheduled for March 18, 2014.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen in Newark, and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge David W. Bosch, Philadelphia Division, with the investigation leading to today’s verdict.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden.13-453
Defense counsel: Brian S. O’Malley Esq., Haddon Heights, N.J.
Bristol, Tennessee, Couple Sentenced in Connection with Meth Lab ExplosionRead the Press Release
GREENEVILLE, Tenn. – James Hulon Steadman, 41, and Amanda Beth Kiser Steadman, 32, both of Bristol, Tenn., were sentenced on Nov. 26, 2013, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 77 months in prison, to be followed by four years of supervised release, for conspiring to manufacture methamphetamine and creating a substantial risk of harm to human life while manufacturing methamphetamine. The Steadmans were also ordered to pay $98,911.13 in restitution for clean-up costs and damage to an apartment building as a result of multiple explosions and a fire caused by a methamphetamine laboratory.
The Steadmans and Jason Anthony Carter were indicted in November 2012 for conspiring to manufacture methamphetamine, possessing equipment, chemicals, materials, and products to be used in the manufacture of methamphetamine, and creating a substantial risk of harm to human life. Carter was convicted on Oct. 31, 2013, following a two-day jury trial, and is scheduled for sentencing on Mar. 3, 2014. He faces a possible sentence of up to 40 years in federal prison and up to $1,500,000 in fines.
According to the evidence presented at Carter’s trial, the Steadmans and Carter planned to manufacture methamphetamine at an apartment building where the Steadmans resided in Bristol, Tenn., in August 2012. They purchased the supplies needed to manufacture methamphetamine at various businesses in Bristol before returning to the apartment to begin cooking methamphetamine utilizing the “one-pot” or “shake and bake” method. Once at the apartment, they prepared the materials to manufacture methamphetamine and began cooking methamphetamine. The evidence further reflected that while the methamphetamine was cooking, several explosions occurred, resulting in a fire in the apartment, extensive damage to the apartment building, and serious injuries to Amanda Steadman.
“Manufacturing methamphetamine is an inherently dangerous process and can result in explosions, fires, and serious injuries, as evidenced by this case. Our office takes cases involving the manufacture of methamphetamine very seriously and will continue aggressively prosecute these offenses. Public safety is our highest priority,” stated United States Attorney William C. Killian.
This investigation was a joint effort of the Bristol Tennessee Police Department, Tennessee Methamphetamine Task Force, Drug Enforcement Administration, 2nd Judicial District Drug Task Force, and Sullivan County Sheriff’s Office. Assistant U.S. Attorney Suzanne Kerney-Quillen represents the United States.
Berks County Man Charged with Distribution of Child PornographyRead the Press Release
Edward Hill, 27, of Robesonia, PA, was charged today by information with distribution of child pornography and possession of child pornography, announced United States Attorney Zane David Memeger. According to the information, between May 3, 2013 and July 10, 2013, Hill distributed over the Internet pictures that depicted children being sexually abused, and he possessed in excess of 600 images of child pornography.
If convicted, Hill faces a maximum possible sentence of 30 years’ imprisonment, which includes a mandatory minimum 5 year term of imprisonment, a mandatory minimum 5 years up to a lifetime of supervised release, a $500,000 fine and a $200 special assessment.
The case was investigated by Immigration and Customs Enforcement Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Jeffery W. Whitt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division=s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Bahamian National Arrested After Boat Capsizes and Marijuana Bales Wash AshoreRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Mark R. Trouville, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, announce the arrest of Quinton Mitchell, 31, from Sweeting’s Cay Settlement, Green Turtle Cay, Bahamas. Mitchell made his initial appearance today before U.S. Magistrate Judge Frank J. Lynch, Jr. A pre-trial detention hearing is scheduled for December 6, 2013.
Mitchell is charged with importation of controlled substances involving 100 kilograms or more of marijuana, in violation of with Title 21, United States Code, Sections 952 (a) and 960(b)(2)(G). If convicted, Mitchell faces a mandatory minimum of five years in prison and up to a maximum of 40 years, four years to a lifetime of supervised release, and a maximum fine of $5,000,000.
According to the allegations in the criminal complaint, a vessel capsized in the waters off Jupiter Island, Florida, and three males swam to shore, including Mitchell. Upon arriving to shore, Mitchell ran away from the scene. A second male, later identified as LeRoy Edwards, a Jamaican national, was rescued from the surf and resuscitated by a good samaritan. Quinton Mitchell, was identified as the boat captain. Before running off, Mitchell told the good samaritan that there had been a total of four males on the boat.
Mitchell was later captured by Jupiter Island Police Department Officers and Martin County Sheriff’s Office Deputies, who responded to the area and found the beach littered with white bales and blue gas cans, and the partially submerged boat approximately 200 feet from the shoreline.
Martin County Sheriff’s Office Crime Scene investigators found that the recovered bales contained marijuana, weighing approximately 236 kilograms. Authorities are still searching for the other passengers that were on-board the boat.
Mr. Ferrer commended the investigative efforts of ICE-HSI, DEA, the Jupiter Island Police Department, the Martin County Sheriff’s Office, U.S. Customs and Border Protection, and Florida Fish and Wildlife. The case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
A complaint is only an accusation, and 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 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.
Allen Man Charged with Burglarizing A HomeRead the Press Release
United States Attorney Brendan V. Johnson announced that an Allen, South Dakota, man has been indicted by a federal grand jury for First Degree Burglary.
George Cortier, age 26, was indicted on November 19, 2013. He appeared before U.S. Magistrate Judge Veronica L. Duffy on November 26, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 25 years in custody and/or a $250,000 fine, 5 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The indictment charges that in July 2013, near Allen, Cortier broke into a man’s home and stole three television sets.
The charge is merely an accusation and Cortier is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Cortier was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Tuesday 26 November 2013
Woodstock Man Charged with Producing and Collecting Child PornographyRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that RYAN HARDING, 28, of Woodstock, was arrested today on a federal criminal complaint charging him with production, receipt, and possession of child pornography.
The criminal complaint alleges that, on October 14, 2013, HARDING drove a male child to a convenience store, accompanied the child into the store’s restroom, and then used his iPhone to take sexually explicit photographs of the child. The victim is autistic and was approximately 13 years old when the pictures were taken. The defendant had access to the child through his employment at an organization that provides services to people with intellectual and developmental disabilities.
In addition, the complaint alleges that between July 16, 2013 and October 30, 2013, HARDING received and possessed other images and videos of child pornography that he downloaded from individuals via the Internet using a peer-to-peer file sharing program. Through a forensic examination of HARDING’s computer equipment, law enforcement officers found approximately 1,043 images and 144 videos of child pornography on HARDING’s laptop and thumb drive.
HARDING appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford and was ordered detained.
If convicted of the charge of production of child pornography, HARDING faces a mandatory minimum term of imprisonment of 15 years, a maximum term of imprisonment of 30 years and a fine of up to $250,000. If convicted of the charge of receiving child pornography, HARDING faces a mandatory minimum term of imprisonment of five years, a maximum term of imprisonment of 20 years and a fine of up to $250,000. If convicted of the charge of possession of child pornography, HARDING faces a maximum term of imprisonment of 20 years and a fine of up to $250,000. The penalties for the possession charge are enhanced because it is alleged that the defendant possessed depictions of prepubescent minors and minors under the age of 12.
Acting U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Homeland Security Investigations and the Connecticut State Police Computer Crimes Unit. The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Waco Couple Admit to Robbing Local BankRead the Press Release
In Waco, 32-year-old Wendy Chudej (pronounced “Hoo-jay”) faces up to 20 years in federal prison after pleading guilty this afternoon to robbing a Waco bank in August 2013 announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent In Charge Armando Fernandez, San Antonio Division.
Appearing before United States District Judge Walter S. Smith, Chudej pleaded guilty to one count of bank robbery. By pleading guilty, Chudej admitted that she wrote the demand note and served as the getaway driver for her husband who robbed the First National Bank of Central Texas branch on North Valley Mills Drive in Waco on August 9, 2013. According to court records, 26-year-old Matthew Chudej entered the bank and presented a note to a teller demanding cash. The teller complied with Chudej’s request and handed him approximately $8,000 in U.S. currency.
Both Wendy and Matthew Chudej remain in federal custody pending sentencing. Wendy Chudej is scheduled to be sentenced on January 22, 2014. Matthew Chudej, who pleaded guilty to the same charge on October 17, 2013, is scheduled to be sentenced on December 4, 2013.
This investigation was conducted by the Federal Bureau of Investigation and the Waco Police Department. This case is being prosecuted by Assistant United States Attorney Greg Gloff.
United States Attorney William C. Killian Participates in Awareness and Knowledge Building Conference on Counterfeit Household Products and Fake Automotive Parts in Alicante, SpainRead the Press Release
U.S. Attorney William C. Killian, Eastern District of Tennessee, was featured on a panel discussing counterfeit automotive parts at the Awareness and Knowledge Building Conference on Counterfeit Household Products and Fake Automotive Parts, held November 4-6, 2013, in Alicante, Spain.
(Click Here For More Information)
Union County, N.J., Man Sentenced to 33 Months in Prison for Impersonating A Federal Officer to Defraud Illegal AliensRead the Press Release
NEWARK, N.J. - A Union County, N.J., man was sentenced today to 33 months in prison for pretending to be an Immigration and Customs Enforcement officer to defraud illegal aliens seeking to apply for legal status in the United States, U.S. Attorney Paul J. Fishman announced.
Ruben Alvarado, 28, of Elizabeth, N.J. previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging him with impersonation of a federal officer and identity fraud. Judge Hayden imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From September 2009 through May 2011, and again from February 2013 through March 2013, Alvarado pretended to be an employee and officer of the Department of Homeland Security, Immigration and Customs Enforcement (DHS-ICE), and the Transportation Safety Administration (TSA). Alvarado demanded and obtained money from his victims after promising to help them, through his purported government employment at DHS-ICE, to obtain legal, or more permanent, status in the United States. He wore clothing bearing the letters “I.C.E.,” carried handcuffs, what appeared to be a holstered gun, a false photo identification card identifying him as a “TSA Air Marshall” and a badge that read, “Official Court Officer.” Alvarado recruited victims in New Jersey through in-person contact and victims in Florida via Facebook.
When Alvarado’s “customers” realized he was a fraud and demanded their money back, he would threaten and intimidate them, claiming to have the power to have them and their children deported. After his initial appearance on these charges in October 2012, Alvarado was released on bail. During a routine vehicle stop in March 2013, the Elizabeth Police Department found Alvarado again to be in possession of false immigration applications, a fingerprinting kit, clothing bearing the letters “I.C.E.,” a holster and blank pistol, and a fake “I.C.E.” badge.
Alvarado admitted in court that he has never been employed by any federal agency, but had produced false identification badges for himself and worn clothing and accessories suggestive of employment at ICE in order to solicit payments from illegal aliens for immigration assistance. He also admitted to having defrauded 33 victims in both New Jersey and Florida out of a total of $33,459, both before his federal arrest and while on pretrial release for these charges.
In addition to the prison term, Judge Hayden sentenced Alvarado to serve three years of supervised release and ordered him to pay $33,459 in restitution to his victims.
U.S. Attorney Fishman credited special agents of the Department of Homeland Security, Office of Professional Responsibility, under the direction of Special Agent in Charge Terence S. Opiola; the Department of Homeland Security, Office of Inspector General in Miami, Fla., under the direction of Special Agent in Charge David Nieland; the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Grace H. Park; and the Elizabeth Police Department, under the direction of Police Director James Cosgrove, for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office Healthcare and Government Fraud Unit in Newark.
13-451Defense counsel: Kevin Carlucci Esq., Assistant Federal Public Defender, Newark
Two Michigan Hunters sentenced for illegally taking Grizzly Bear in closed season on Arctic National Wildlife RefugeRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that two Michigan residents were sentenced in U. S. District Court in Fairbanks for a 2009 unlawful taking of a grizzly bear during closed season, making false records to conceal the illegal kill, and transporting the bear parts out of Alaska.
Mark A. Peyerk, 40, of Mio, Michigan, and his mother, Charlotte M. Peyerk, 66, of Shelby Township, Michigan, pled guilty in September 2013 to charges of conspiracy to violate federal wildlife laws, taking grizzly bear out of season in the Arctic National Wildlife Refuge, and making a false record of wildlife shipped interstate. Both defendants were sentenced yesterday by U.S. Magistrate Judge Scott A. Oravec, in Fairbanks, Alaska. The court fined each defendant $20,000, ordered defendants M. Peyerk and C. Peyerk to pay $10,000 and $5,000 dollars respectively in community service payments to the National Fish and Wildlife Foundation, required each defendant to write a public letter of apology to Safari Club International for submitting the fraudulent entry of the illegally taken bear, and ordered forfeiture of the hunting rifle and the bear. The court also prohibited the defendants from hunting during Mark Peyerk’s 5-year and Charlotte Peyerk’s 4-year terms of probation.
In imposing sentence, Magistrate Judge Oravec commented that besides the illegal taking of wildlife, the more aggravated criminal conduct was the defendants’ multiple written false statements to cover up the illegal kill. According to Assistant U. S. Attorney Stephen Cooper, who prosecuted the case, Mark and Charlotte Peyerk admitted in their plea agreements that they and their assistant guides agreed they should take the bear the day before the season opened. The Peyerks’ cameras had the date indicator altered to make it appear the bear was killed on opening day. They also falsified the date of kill on a State of Alaska record and on a Safari Club International trophy entry form. Believing the false statements, Safari Club International awarded Charlotte Peyerk the “Diana Award” for “ethics in hunting.” The court ordered Ms. Peyerk to offer the return of the award to the Safari Club International.
This hunt was commercially guided by Fair Chase Hunts operated by Registered Guide Christopher Cassidy and Master Guide Joe Hendricks. Investigation of Fair Chase Hunts led to convictions of Cassidy, Hendricks and nearly a dozen other Fair Chase Hunts’ employees and clients for conduct described by Stan Pruszenski, Special Agent in Charge, U. S. Fish &Wildlife Service, Office of Law Enforcement in Alaska, as examples of “illegal commercialization of wildlife resources.”
Ms. Loeffler commends the United States Fish & Wildlife Service Office of Law Enforcement for Northern Alaska, Arctic National Wildlife Refuge officials, and the Alaska Wildlife Troopers for the investigation of this case.Twenty-Two Individuals Sentenced During the Months of September, October and November for Federal Supervised Release ViolationsRead 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
WHEELING, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II, announced that during the months of September, October and November twenty-two individuals had their supervised release revoked for violating terms and conditions imposed by the United States District Court.
CLARKSBURG DIVISION REVOCATIONS
(Judge Irene M. Keeley)
STEVE HALLER, age 45, of Fairmont, West Virginia, was sentenced to 24 months in prison for attempting to defeat drug tests and failure to submit fine payments. HALLER was originally sentenced on June 18, 1996, to 188 months in prison and five years of supervised release for distribution of cocaine within 1,000 feet of a school. On October 19, 2011, HALLER’s supervised release was revoked and he was sentenced to 6 months in prison and 54 months of supervised release for testing positive for the use of a controlled substance. HALLER self-reported to the designated Federal institution on November 18, 2013.
FRANK LAWRENCE, age 38, of Fairmont, was sentenced to 24 months in prison for testing positive for the use of controlled substances, failure to report for drug screens, unauthorized contact with a convicted felon, and failure to report income. LAWRENCE was originally sentenced on August 4, 2005, to 77 months in prison and 3 years of supervised release for conspiracy to possess oxycodone and morphine. LAWRENCE self-report to the designated Federal institution on September 30, 2013.
HARRY PAUL HERSHMAN, age 57, of Tunnelton, West Virginia, was sentence to 24 months in prison for convicting a new offense of burglary. HERSHMAN was originally sentenced on March 1, 2011, to 21 months in prison and 3 years of supervised release for felon in possession of a firearm. HERSHMAN was remanded to the custody of the United States Marshal pending designation to a Federal institution.MARK WILLIAM CANO, age 56, of Clarksburg, was sentenced to 12 months and 1 day in prison for testing positive for the use of cocaine. CANO was originally sentenced on May 22, 2007, to 57 months in prison and 6 years of supervised release. In February of 2009, CANO’s sentence was reduced to 46 months in prison pursuant to the crack resentencing guidelines. CANO was remanded to the custody of the United States Marshal pending designation to a Federal institution.
DEBRA LYNN BOLDEN, age 43, of Morgantown, West Virginia, was sentenced to 10 months in prison for failure to provide urine tests, failure to attend counseling session, failure to enroll in a treatment program, possession of a controlled substance and use of a controlled substance. BOLDEN was originally sentenced on October 4, 2011, to 3 years probation for the distribution of heroin. On December 8, 2011, BOLDEN’s supervised release was revoked and she was sentenced to 10 months in prison and 3 years of supervised release for testing positive for the use of controlled substances. BOLDEN was remanded to the custody of the United States Marshal pending designation to a Federal institution.
NANCY JO NICHOLAS, age 48, of Clarksburg, was sentenced to 6 months in prison and 66 months of supervised release for possession of a controlled substance and testing positive for the use of a controlled substance. NICHOLAS was originally sentenced on October 11, 2011, to 12 months and 1 day in prison and 6 years of supervised release for the distribution of heroin within 1,000 feet of a protected location. NICHOLAS will self-report to the designated Federal institution.
SHAWN LONG, age 45, of Clarksburg, was sentenced to 6 months in prison and 66 months of supervised release for possession of marijuana, testing positive for the use of marijuana, and a new arrest for driving on a revoked license for DUI and no proof of insurance. LONG was originally sentenced on September 21, 2011, to 12 months and 1 day in prison and 6 years of supervised release for the distribution of cocaine within 1,000 feet of a protected location. LONG will self-report to the designated Federal institution on January 3, 2014.
RYAN DREW TAYLOR, age 33, of Morgantown, was sentenced to 6 months in prison for possession of a controlled substance, use of a controlled substance and possession of a weapon. TAYLOR was originally sentenced on October 17, 2003, for distribution of crack cocaine. In February of 2009, TAYLOR’s sentence was reduced to 87 months in prison pursuant to the crack resentencing guidelines. TAYLOR self-report to the designated Federal institution on October 9, 2013.
TIMOTHY ROBERT WILSON, age 27, of Clarksburg, was sentenced to 4 months in prison and 48 months of supervised release for possession and use of controlled substances and alcohol. WILSON was originally sentenced on October 8, 2009, to 71 months in prison and 6 years of supervised release for the distribution of crack cocaine within 1,000 feet of a protected location. In October of 2011, WILSON’s sentence was reduced to 46 months in prison pursuant to the crack resentencing guidelines. WILSON self-report to the designated Federal institution on October 11, 2013.
BOBBY JAMES VANNOY, age 39, of Philippi, West Virginia, was sentenced to 58 days in prison and lifetime supervision for failure to file reports with the probation office, failure to truthfully answer inquiries of the probation officer; and, associating with persons engaged in criminal activity. VANNOY was originally sentenced on March 18, 2009, to 37 months in prison and lifetime supervision for possession of child pornography. VANNOY will self-report to the designated Federal institution on January 6, 2014.
The United States was represented at the Clarksburg revocation hearings by Assistant
U.S. Attorneys Shawn A. Morgan, Andrew R. Cogar, Brandon S. Flower and Zelda E. Wesley.MARTINSBURG DIVISION REVOCATIONS
(Judge Gina M. Groh)
WILLIAM GREENE, age 40, of Martinsburg, was sentenced to 36 months in prison for new arrest for the distribution of crack cocaine. GREENE was originally sentenced on September 20, 2000, to 140 months in prison and 3 years of supervised release for conspiracy to distribute crack cocaine. In April of 2008, GREENE’s sentence was reduced to 116 months pursuant to the crack resentencing guidelines. GREENE was remanded to the custody of the United States Marshal pending designation to a Federal institution.
DWAYNE DANA LEWIS, age 37, of Charles Town, West Virginia, was sentenced to 18 months in prison for the distribution of heroin, possession of suboxone and being untruthful with the probation office. LEWIS was originally sentenced on January 25, 2011, to 33 months in prison and 3 years of supervised release for the distribution of crack cocaine. LEWIS was remanded to the custody of the United States Marshal pending designation to a Federal institution.
JAVIER HOWARD, age 31, of Martinsburg, was sentenced to 13 months in prison for testing positive for the use of heroin and oxycodone. HOWARD was originally sentenced on August 9, 2006, to 84 months in prison and 3 years of supervised release. In June of 2009, HOWARD’s sentence was reduced to 68 pursuant to the crack resentencing guidelines. On November 9, 2012, HOWARD was sentenced to 9 months in prison and 18 months of supervised release for violations of his supervised release. HOWARD was remanded to the custody of the United States Marshal pending designation to a Federal institution.
CHALDIN POINT DU JOUR, age 27, of Shepherdstown, West Virginia, was sentenced to 9 months in prison and 26 months of supervised release for failure to perform work release, failure to pay restitution, being untruthful with the probation office, and failure to timely file monthly reports. DU JOUR was originally sentenced on October 19, 2011, to 10 months in prison and 3 years of supervised release the unauthorized use of access devices. DU JOUR was remanded to the custody of the United States Marshal pending designation to a Federal institution.
ROBERT KENNETH KACKLEY, age 41, of Martinsburg, was sentenced to 8 months in prison and 52 months of supervised release for possession of controlled substances, testing positive for the use of controlled substances, failure to follow probation officer’s instructions and associating with known felons. KACKLEY was originally sentenced on July 6, 2011, to 27 months in prison and 6 years of supervised release for the distribution of crack cocaine. KACKLEY was remanded to the custody of the United States Marshal pending designation to a Federal institution.
CHARLES COLLIN PETTY, age 32, of Martinsburg, was sentenced to 8 months in prison and 40 months of supervised release for associating with known felons, use of suboxone and a DUI conviction. PETTY was originally sentenced on October 22, 2008, to 60 months in prison and 4 years of supervised release for possession with intent to distribute crack cocaine. PETTY was remanded to the custody of the United States Marshal pending designation to a Federal institution.
JARRED BARCLAY, age 29, of Martinsburg, was sentenced to 8 months in prison and 25 months of supervised release for associating with known felons, DUI conviction, failure to submit monthly reports, testing positive for the use of marijuana and failure to be truthful with probation office. BARCLAY was originally sentenced on February 7, 2012, to 6 months in prison and 3 years of supervised release for the distribution of crack cocaine. BARCLAY was remanded to the custody of the United States Marshal pending designation to a Federal institution.
BRIDGET DEMINDS, age 28, of Martinsburg, was sentenced to 4 months in prison and 32 months of supervised release for use of suboxone, shoplifting and failure to be truthful with probation officer. DEMINDS was originally sentenced on July 28, 2010, to 37 months in prison and 3 years of supervised release for the possession with intent to distribute heroin. DEMINDS was remanded to the custody of the United States Marshal pending designation to a Federal institution.
BRANDY NETZ, age 28, of Martinsburg, was sentenced to 4 months in prison and 18 months of supervised release for possession of cocaine, destruction of property, traffic violations and failure to follow probation officer’s instructions. NETZ was originally sentenced on August 5, 2008, to 18 months in prison and 3 years of supervised release for possession with intent to distribute crack cocaine. NETZ was remanded to the custody of the United States Marshal pending designation to a Federal institution.
ANDREW SEMAN, age 58, of Martinsburg, was sentenced to 4 months in prison and 12 months of supervised release for failure to report police contact to probation office, failure to submit monthly reports to probation office, and leaving the district without permission from the probation office. SEMAN was originally sentenced on October 26, 2010, to 18 months in prison and 3 years of supervised release for the distribution of heroin. SEMAN will self-report to the designated Federal institution on December 2, 2013.
The United States was represented at the Martinsburg revocation hearings by Assistant U.S. Attorneys Paul T. Camilletti and Jarod J. Douglas.
WHEELING DIVISION REVOCATIONS
(Judge Frederick P. Stamp, Jr.)
MATTHEW IAN HAUGHT, age 31, of Colliers, West Virginia, was sentenced to 9 months in prison for possession and use of a controlled substance, failure to report to the probation office as instructed, failure to report for scheduled drug treatment and absconding. HAUGHT was originally sentenced on August 14, 2009, to 33 months in prison and 3 years of supervised release for possession of a firearm by a drug addict. On April 15, 2013, HAUGHT’s supervised release was revoked and he was sentenced to 3 months in prison and 33 months of supervised release for use and possession of heroin and alcohol and failure to report for scheduled drug screens. HAUGHT was remanded to the custody of the United States Marshal pending designation to a Federal institution.
STEVEN KLOH, age 36, of Columbus, Ohio, was sentenced to 8 months in prison and 16 months of supervised release for possession of drug paraphernalia. KLOH was originally sentenced on October 22, 2012, to 24 months in prison and 2 years of supervised release for interstate transportation of controlled substances. KLOH was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The United States was represented at the Martinsburg revocation hearings by Assistant U.S. Attorneys Randolph J. Bernard and John C. Parr.
The United States Probation Office carries out probation and pretrial services functions throughout the Northern District of West Virginia. With locations in Wheeling, Clarksburg, Martinsburg, and Elkins, the office works to assist the federal courts in the fair administration of justice, to protect the community, and to bring about long-term positive change in individuals under supervision. Jeff Givens is the Chief Probation Officer for the Northern District.
Toyo Tire & Rubber Co. Ltd. Agrees to Plead Guilty to <br /> Price Fixing on Automobile Parts Installed in U.S. CarsRead the Press Release
Osaka, Japan-based Toyo Tire & Rubber Co. Ltd. has agreed to plead guilty and to pay a $120 million criminal fine for its role in two separate conspiracies to fix the prices of automotive components involving anti-vibration rubber and driveshaft parts installed in cars sold in the United States and elsewhere, the Department of Justice announced today.
According to a two-count felony charge filed today in U.S. District Court for the Northern District of Ohio in Toledo, Toyo engaged in a conspiracy to allocate sales of, to rig bids for, and to fix the prices of automotive anti-vibration rubber parts it sold to Toyota Motor Corp., Nissan Motor Corp., Fuji Heavy Industries Ltd. – more commonly known by its brand name, Subaru – and certain of their subsidiaries, affiliates and suppliers, in the United States and elsewhere. According to the charge, Toyo and its co-conspirators carried out the anti-vibration rubber parts conspiracy from as early as March 1996 until at least May 2012.
In addition, according to the charge, Toyo engaged in a separate conspiracy to allocate sales of, and to fix, raise and maintain the prices of automotive constant-velocity-joint boots it sold to U.S. subsidiaries of GKN plc, a British automotive parts supplier . According to the charge, Toyo and its co-conspirators carried out the constant-velocity-joint boots conspiracy from as early as January 2006 until as late as September 2010.
Toyo, which has subsidiaries based in Franklin, Ky., and White, Ga., has agreed to cooperate with the department’s ongoing investigation. The plea agreement is subject to court approval.
“Today’s charge is the latest step in the Antitrust Division’s effort to hold automobile part suppliers accountable for their illegal and collusive conduct,” said Renata B. Hesse, Deputy Assistant Attorney General for the Department of Justice’s Antitrust Division. “The division continues to vigorously prosecute companies and individuals that seek to maximize their profits through illegal and anticompetitive means.”
Automotive anti-vibration rubber parts are comprised primarily of rubber and metal, and include engine mounts and suspension bushings. They are installed in automobiles for the purpose of reducing road and engine vibration. Automotive constant-velocity-joint boots are composed of rubber or plastic, and are used to cover the constant-velocity-joints of an automobile to protect the joints from contaminants.
The department said the company and its co-conspirators carried out the conspiracies through meetings and conversations, discussed and agreed upon bids, price quotations and price adjustments, and agreed to allocate among the companies certain sales of the anti-vibration rubber and constant-velocity-joint boots parts sold to automobile and component manufacturers.
Including Toyo, 22 companies and 26 executives have been charged in the Justice Department’s ongoing investigation into the automotive parts industry. All 22 companies have either pleaded guilty or have agreed to plead guilty and have agreed to pay more than $1.8 billion in criminal fines. Of the 26 executives, 20 have been sentenced to serve time in U.S. prisons or have entered into plea agreements calling for significant prison sentences.
Toyo is charged with price fixing in violation of the Sherman Act, which carries a maximum penalty of a $100 million criminal fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
The charges are the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charges were brought by the Antitrust Division’s Chicago Office and the FBI’s Cleveland Field Office, with the assistance of the FBI headquarters’ International Corruption Unit and the U.S. Attorney’s Office for the Northern District of Ohio. Anyone with information concerning the focus of this investigation should contact the Antitrust Division’s Citizen Complaint Center at 1–888–647–3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Cleveland Field Office at 216-522-1400.Toyo Tire & Rubber Co. Ltd. Agrees to Plead Guilty to Price Fixing on Auto Parts and to Pay $120 Million Criminal FineRead the Press Release
Osaka, Japan-based Toyo Tire & Rubber Co. Ltd. has agreed to plead guilty and to pay a $120 million criminal fine for its role in two separate conspiracies to fix the prices of automotive components involving anti-vibration rubber and driveshaft parts installed in cars sold in the United States and elsewhere, the Department of Justice announced today.
According to a two-count felony charge filed today in U.S. District Court for the Northern District of Ohio in Toledo, Toyo engaged in a conspiracy to allocate sales of, to rig bids for, and to fix the prices of automotive anti-vibration rubber parts it sold to Toyota Motor Corp., Nissan Motor Corp., Fuji Heavy Industries Ltd. – more commonly known by its brand name, Subaru – and certain of their subsidiaries, affiliates and suppliers, in the United States and elsewhere. According to the charge, Toyo and its co-conspirators carried out the anti-vibration rubber parts conspiracy from as early as March 1996 until at least May 2012.
In addition, according to the charge, Toyo engaged in a separate conspiracy to allocate sales of, and to fix, raise and maintain the prices of automotive constant-velocity-joint boots it sold to U.S. subsidiaries of GKN plc, a British automotive parts supplier. According to the charge, Toyo and its co-conspirators carried out the constant-velocity-joint boots conspiracy from as early as January 2006 until as late as September 2010.
Toyo, which has subsidiaries based in Franklin, Ky., and White, Ga., has agreed to cooperate with the department’s ongoing investigation. The plea agreement is subject to court approval.
“Today’s charge is the latest step in the Antitrust Division’s effort to hold automobile part suppliers accountable for their illegal and collusive conduct,” said Renata B. Hesse, Deputy Assistant Attorney General for the Department of Justice’s Antitrust Division. “The division continues to vigorously prosecute companies and individuals that seek to maximize their profits through illegal and anticompetitive means.”
Automotive anti-vibration rubber parts are comprised primarily of rubber and metal, and include engine mounts and suspension bushings. They are installed in automobiles for the purpose of reducing road and engine vibration. Automotive constant-velocity-joint boots are composed of rubber or plastic, and are used to cover the constant-velocity-joints of an automobile to protect the joints from contaminants.
The department said the company and its co-conspirators carried out the conspiracies through meetings and conversations, discussed and agreed upon bids, price quotations and price adjustments, and agreed to allocate among the companies certain sales of the anti-vibration rubber and constant-velocity-joint boots parts sold to automobile and component manufacturers.
Including Toyo, 22 companies and 26 executives have been charged in the Justice Department’s ongoing investigation into the automotive parts industry. All 22 companies have either pleaded guilty or have agreed to plead guilty and have agreed to pay more than $1.8 billion in criminal fines. Of the 26 executives, 20 have been sentenced to serve time in U.S. prisons or have entered into plea agreements calling for significant prison sentences.
Toyo is charged with price fixing in violation of the Sherman Act, which carries a maximum penalty of a $100 million criminal fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
The charges are the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charges were brought by the Antitrust Division’s Chicago Office and the FBI’s Cleveland Field Office, with the assistance of the FBI headquarters’ International Corruption Unit and the U.S. Attorney’s Office for the Northern District of Ohio. Anyone with information concerning the focus of this investigation should contact the Antitrust Division’s Citizen Complaint Center at 1–888–647–3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Cleveland Field Office at 216-522-1400.
Three Subsidiaries of Weatherford International Limited<br /> Agree to Plead Guilty to FCPA and Export Control ViolationsRead the Press Release
Three subsidiaries of Weatherford International Limited (Weatherford International), a Swiss oil services company that trades on the New York Stock Exchange, have agreed to plead guilty to anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) and export controls violations under the International Emergency Economic Powers Act (IEEPA) and the Trading With the Enemy Act (TWEA). Weatherford International and its subsidiaries have also agreed to pay more than $252 million in penalties and fines.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement.
Weatherford Services Limited (Weatherford Services), a subsidiary of Weatherford International, today agreed to plead guilty to violating the anti-bribery provisions of the FCPA. As part of a coordinated FCPA resolution, the department today also filed a criminal information in U.S. District Court for the Southern District of Texas charging Weatherford International with one count of violating the internal controls provisions of the FCPA. To resolve the charge, Weatherford International has agreed to pay an $87.2 million criminal penalty as part of a deferred prosecution agreement with the department.
“Effective internal accounting controls are not only good policy, they are required by law for publicly traded companies – and for good reason,” said Acting Assistant Attorney General Raman. “This case demonstrates how loose controls and an anemic compliance environment can foster foreign bribery and fraud by a company’s subsidiaries around the globe. Although Weatherford’s extensive remediation and its efforts to improve its compliance functions are positive signs, the corrupt conduct of Weatherford International’s subsidiaries allowed it to earn millions of dollars in illicit profits, for which it is now paying a significant price.”“When business executives engage in bribery and pay-offs in order to obtain contracts, an uneven marketplace is created and honest competitor companies are put at a disadvantage,” said Assistant Director in Charge Parlave. “The FBI is committed to investigating corrupt backroom deals that influence contract procurement and threaten our global commerce.”
In a separate matter, Weatherford International and four of its subsidiaries today agreed to pay a combined $100 million to resolve a criminal and administrative export controls investigation conducted by the U.S. Attorney’s Office for the Southern District of Texas, the Department of Commerce’s Bureau of Industry and Security, and the Department of the Treasury’s Office of Foreign Assets Control. As part of the resolution of that investigation, Weatherford International has agreed to enter into a deferred prosecution agreement for a term of two years and two of its subsidiaries have agreed to plead guilty to export controls charges.
“The resolution today of these criminal charges represents the seriousness that our office and the Department of Justice puts on enforcing the export control and sanctions laws,” said U.S. Attorney Magidson.
In a related FCPA matter, the U.S. Securities and Exchange Commission ( SEC) filed a settlement today in which Weatherford International consented to the entry of a permanent injunction against FCPA violations and agreed to pay $65,612,360 in disgorgement, prejudgment interest, and civil penalties. Weatherford International also agreed with the SEC to comply with certain undertakings regarding its FCPA compliance program, including the retention of an independent corporate compliance monitor.
The combined investigations resulted in the conviction of three Weatherford subsidiaries, the entry by Weatherford International into two deferred prosecution agreements and a civil settlement, and the payment of a total of $252,690,606 in penalties and fines.
FCPA Violations
According to court documents filed by the department, prior to 2008, Weatherford International knowingly failed to establish an effective system of internal accounting controls designed to detect and prevent corruption, including FCPA violations. The company failed to implement these internal controls despite operating in an industry with a substantial corruption risk profile and despite growing its global footprint in large part by purchasing existing companies, often themselves in countries with high corruption risks. As a result, a permissive and uncontrolled environment existed within which employees of certain of Weatherford International’s wholly owned subsidiaries in Africa and the Middle East were able to engage in corrupt conduct over the course of many years, including both bribery of foreign officials and fraudulent misuse of the United Nations’ Oil for Food Program.
Court documents state that Weatherford Services employees established and operated a joint venture in Africa with two local entities controlled by foreign officials and their relatives from 2004 through at least 2008. The foreign officials selected the entities with which Weatherford Services would partner, and Weatherford Services and Weatherford International employees knew that the members of the local entities included foreign officials’ relatives and associates. Notwithstanding the fact that the local entities did not contribute capital, expertise or labor to the joint venture, neither Weatherford Services nor Weatherford International investigated why the local entities were involved in the joint venture. The sole purpose of those local entities, in fact, was to serve as conduits through which Weatherford Services funneled hundreds of thousands of dollars in payments to the foreign officials controlling them. In exchange for the payments they received from Weatherford Services through the joint venture, the foreign officials awarded the joint venture lucrative contracts, gave Weatherford Services inside information about competitors’ pricing, and took contracts away from Weatherford Services’ competitors and awarded them to the joint venture.
Additionally, Weatherford Services employees in Africa bribed a foreign official so that he would approve the renewal of an oil services contract, according to court documents. Weatherford Services funneled bribery payments to the foreign official through a freight forwarding agent it retained via a consultancy agreement in July 2006. Weatherford Services generated sham purchase orders for consulting services the freight forwarding agent never performed, and the freight forwarding agent, in turn, generated sham invoices for those same nonexistent services. When paid for those invoices, the freight forwarding agent passed at least some of those monies on to the foreign official with the authority to approve Weatherford Services’ contract renewal. In exchange for these payments, the foreign official awarded the renewal contract to Weatherford Services in 2006.
Further, according to court documents, in a third scheme in the Middle East, from 2005 through 2011, employees of Weatherford Oil Tools Middle East Limited (WOTME), another Weatherford International subsidiary, awarded improper “volume discounts” to a distributor who supplied Weatherford International products to a government-owned national oil company, believing that those discounts were being used to create a slush fund with which to make bribe payments to decision-makers at the national oil company. Between 2005 and 2011, WOTME paid approximately $15 million in volume discounts to the distributor.
Weatherford International’s failure to implement effective internal accounting controls also permitted corrupt conduct relating to the United Nations’ Oil for Food Program to occur, according to court documents. Between in or about February 2002 and in or about July 2002, WOTME paid approximately $1,470,128 in kickbacks to the government of Iraq on nine contracts with Iraq’s Ministry of Oil, as well as other ministries, to provide oil drilling and refining equipment. WOTME falsely recorded these kickbacks as other, seemingly legitimate, types of costs and fees. Further, WOTME concealed the kickbacks from the U.N. by inflating contract prices by 10 percent.
According to court documents, these corrupt transactions in Africa and the Middle East earned Weatherford International profits of $54,486,410, which were included in the consolidated financial statements that Weatherford International filed with the SEC .
In addition to the guilty plea by Weatherford Services, the deferred prosecution agreement entered into by Weatherford International and the Department requires the company to cooperate with law enforcement, retain an independent corporate compliance monitor for at least 18 months, and continue to implement an enhanced compliance program and internal controls designed to prevent and detect future FCPA violations. The agreement acknowledges Weatherford International’s cooperation in this matter, including conducting a thorough internal investigation into bribery and related misconduct, and its extensive remediation and compliance improvement efforts.
Export Control Violations
According to court documents filed today in a separate matter, between 1998 and 2007, Weatherford International and some its subsidiaries engaged in conduct that violated various U.S. export control and sanctions laws by exporting or re-exporting oil and gas drilling equipment to, and conducting Weatherford business operations in, sanctioned countries without the required U.S. Government authorization. In addition to the involvement of employees of several Weatherford International subsidiaries, some Weatherford International executives, managers, or employees on multiple occasions participated in, directed, approved, and facilitated the transactions and the conduct of its various subsidiaries.
This conduct involved persons within the U.S.-based management structure of Weatherford International participating in conduct by Weatherford International foreign subsidiaries, and the unlicensed export or re-export of U.S.-origin goods to Cuba, Iran, Sudan, and Syria. Weatherford subsidiaries Precision Energy Services Colombia Ltd. (PESC) and Precision Energy Services Ltd. (PESL), both headquartered in Canada, conducted business in the country of Cuba. Weatherford’s subsidiary Weatherford Oil Tools Middle East (WOTME), headquartered in the United Arab Emirates (UAE), conducted business in the countries of Iran, Sudan, and Syria. Weatherford’s subsidiary Weatherford Production Optimisation f/k/a eProduction Solutions U.K. Ltd. (eProd-U.K.), headquartered in the United Kingdom, conducted business in the country of Iran. Weatherford generated approximately $110 million in revenue from its illegal transactions in Cuba, Iran, Syria and Sudan.
To resolve these charges, Weatherford and its subsidiaries will pay a total penalty of $100 million, with a $48 million monetary penalty paid pursuant to a deferred prosecution agreement, $2 million paid in criminal fines pursuant to the two guilty pleas, and a $50 million civil penalty paid pursuant to a Department of Commerce settlement agreement to resolve 174 violations charged by Commerce’s Bureau of Industry and Security. Weatherford International and certain of its affiliates are also signing a $91 million settlement agreement with the Department of the Treasury to resolve their civil liability arising out of the same underlying course of conduct, which will be deemed satisfied by the payments above.
The FCPA case was investigated by the FBI’s Washington Field Office and its team of special agents dedicated to the investigation of foreign bribery cases. The case is being prosecuted by Trial Attorney Jason Linder of the Criminal Division’s Fraud Section, with the assistance of Assistant U.S. Attorney Mark McIntyre of the Southern District of Texas. The case was previously investigated by Fraud Section Trial Attorneys Kathleen Hamann and Allan Medina, with assistance from the Criminal Division’s Asset Forfeiture and Money Laundering Section. The Justice Department also acknowledges and expresses its appreciation for the significant assistance provided by the SEC’s FCPA Unit.
The export case was investigated by the Department of Commerce’s Bureau of Industry and Security, Office of Export Enforcement, and the Department of the Treasury’s Office of Foreign Assets Control. The case is being prosecuted by Assistant U.S. Attorney S. Mark McIntyre and was previously investigated by Assistant U.S. Attorney Jeff Vaden.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa .Three Subsidiaries of Weatherford International Limited Agree to Plead Guilty to FCPA and Export Control ViolationsRead the Press Release
Weatherford International and Subsidiaries Agree to Pay $252 Million in Penalties and Fines
HOUSTON – Three subsidiaries of Weatherford International Limited (Weatherford International), a Swiss oil services company that trades on the New York Stock Exchange, have agreed to plead guilty to export controls violations under the International Emergency Economic Powers Act (IEEPA) and the Trading with the Enemy Act (TWEA) and anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA). Weatherford International and its subsidiaries have also agreed to pay more than $252 million in penalties and fines.
U.S. Attorney Kenneth Magidson of the Southern District of Texas, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement.
Weatherford International and four of its subsidiaries today agreed to pay a combined $100 million to resolve a criminal and administrative export controls investigation conducted by the U.S. Attorney’s Office for the Southern District of Texas, the Department of Commerce’s Bureau of Industry and Security and the Department of the Treasury’s Office of Foreign Assets Control. As part of the resolution of that investigation, Weatherford International has agreed to enter into a deferred prosecution agreement for a term of two years and two of its subsidiaries have agreed to plead guilty to export controls charges.
“The resolution today of these criminal charges represents the seriousness that our office and the Department of Justice puts on enforcing the export control and sanctions laws,” said U.S. Attorney Magidson.
In a separate matter, Weatherford Services Limited (Weatherford Services), a subsidiary of Weatherford International, today agreed to plead guilty to violating the anti-bribery provisions of the FCPA. As part of a coordinated FCPA resolution, the department today also filed a criminal information in U.S. District Court for the Southern District of Texas charging Weatherford International with one count of violating the internal controls provisions of the FCPA. To resolve the charge, Weatherford International has agreed to pay an $87.2 million criminal penalty as part of a deferred prosecution agreement with the department.
“Effective internal accounting controls are not only good policy, they are required by law for publicly traded companies – and for good reason,” said Acting Assistant Attorney General Raman. “This case demonstrates how loose controls and an anemic compliance environment can foster foreign bribery and fraud by a company’s subsidiaries around the globe. Although Weatherford’s extensive remediation and its efforts to improve its compliance functions are positive signs, the corrupt conduct of Weatherford International’s subsidiaries allowed it to earn millions of dollars in illicit profits, for which it is now paying a significant price.”
“When business executives engage in bribery and pay-offs in order to obtain contracts, an uneven marketplace is created and honest competitor companies are put at a disadvantage,” said Assistant Director in Charge Parlave. “The FBI is committed to investigating corrupt backroom deals that influence contract procurement and threaten our global commerce.”
In a related FCPA matter, the U.S. Securities and Exchange Commission (SEC) filed a settlement today in which Weatherford International consented to the entry of a permanent injunction against FCPA violations and agreed to pay $65,612,360 in disgorgement, prejudgment interest and civil penalties. Weatherford International also agreed with the SEC to comply with certain undertakings regarding its FCPA compliance program, including the retention of an independent corporate compliance monitor.
The combined investigations resulted in the conviction of three Weatherford subsidiaries, the entry by Weatherford International into two deferred prosecution agreements and a civil settlement and the payment of a total of $252,690,606 in penalties and fines.
Export Control Violations
According to court documents filed today in a separate matter, between 1998 and 2007, Weatherford International and some its subsidiaries engaged in conduct that violated various U.S. export control and sanctions laws by exporting or re-exporting oil and gas drilling equipment to, and conducting Weatherford business operations in, sanctioned countries without the required U.S. government authorization. In addition to the involvement of employees of several Weatherford International subsidiaries, some Weatherford International executives, managers or employees on multiple occasions participated in, directed, approved and facilitated the transactions and the conduct of its various subsidiaries.
This conduct involved persons within the U.S.-based management structure of Weatherford International participating in conduct by Weatherford International foreign subsidiaries and the unlicensed export or re-export of U.S.-origin goods to Cuba, Iran, Sudan and Syria. Weatherford subsidiaries Precision Energy Services Colombia Ltd. (PESC) and Precision Energy Services Ltd. (PESL), both headquartered in Canada, conducted business in the country of Cuba. Weatherford’s subsidiary Weatherford Oil Tools Middle East (WOTME), headquartered in the United Arab Emirates (UAE), conducted business in the countries of Iran, Sudan and Syria. Weatherford’s subsidiary Weatherford Production Optimisation f/k/a eProduction Solutions U.K. Ltd. (eProd-U.K.), headquartered in the United Kingdom, conducted business in the country of Iran. Weatherford generated approximately $110 million in revenue from its illegal transactions in Cuba, Iran, Syria and Sudan.
To resolve these charges, Weatherford and its subsidiaries will pay a total penalty of $100 million, with a $48 million monetary penalty paid pursuant to a deferred prosecution agreement, $2 million paid in criminal fines pursuant to the two guilty pleas and a $50 million civil penalty paid pursuant to a Department of Commerce settlement agreement to resolve 174 violations charged by Commerce’s Bureau of Industry and Security. Weatherford International and certain of its affiliates are also signing a $91 million settlement agreement with the Department of the Treasury to resolve their civil liability arising out of the same underlying course of conduct, which will be deemed satisfied by the payments above.
FCPA Violations
According to court documents filed by the department, prior to 2008, Weatherford International knowingly failed to establish an effective system of internal accounting controls designed to detect and prevent corruption, including FCPA violations. The company failed to implement these internal controls despite operating in an industry with a substantial corruption risk profile and despite growing its global footprint in large part by purchasing existing companies, often themselves in countries with high corruption risks. As a result, a permissive and uncontrolled environment existed within which employees of certain of Weatherford International’s wholly owned subsidiaries in Africa and the Middle East were able to engage in corrupt conduct over the course of many years, including both bribery of foreign officials and fraudulent misuse of the United Nations’ Oil for Food Program.
Court documents state that Weatherford Services employees established and operated a joint venture in Africa with two local entities controlled by foreign officials and their relatives from 2004 through at least 2008. The foreign officials selected the entities with which Weatherford Services would partner, and Weatherford Services and Weatherford International employees knew that the members of the local entities included foreign officials’ relatives and associates. Notwithstanding the fact that the local entities did not contribute capital, expertise or labor to the joint venture, neither Weatherford Services nor Weatherford International investigated why the local entities were involved in the joint venture. The sole purpose of those local entities, in fact, was to serve as conduits through which Weatherford Services funneled hundreds of thousands of dollars in payments to the foreign officials controlling them. In exchange for the payments they received from Weatherford Services through the joint venture, the foreign officials awarded the joint venture lucrative contracts, gave Weatherford Services inside information about competitors’ pricing and took contracts away from Weatherford Services’ competitors and awarded them to the joint venture.
Additionally, Weatherford Services employees in Africa bribed a foreign official so that he would approve the renewal of an oil services contract, according to court documents. Weatherford Services funneled bribery payments to the foreign official through a freight forwarding agent it retained via a consultancy agreement in July 2006. Weatherford Services generated sham purchase orders for consulting services the freight forwarding agent never performed, and the freight forwarding agent, in turn, generated sham invoices for those same nonexistent services. When paid for those invoices, the freight forwarding agent passed at least some of those monies on to the foreign official with the authority to approve Weatherford Services’ contract renewal. In exchange for these payments, the foreign official awarded the renewal contract to Weatherford Services in 2006.
Further, according to court documents, in a third scheme in the Middle East, from 2005 through 2011, employees of Weatherford Oil Tools Middle East Limited (WOTME), another Weatherford International subsidiary, awarded improper “volume discounts” to a distributor who supplied Weatherford International products to a government-owned national oil company, believing that those discounts were being used to create a slush fund with which to make bribe payments to decision-makers at the national oil company. Between 2005 and 2011, WOTME paid approximately $15 million in volume discounts to the distributor.
Weatherford International’s failure to implement effective internal accounting controls also permitted corrupt conduct relating to the United Nations’ Oil for Food Program to occur, according to court documents. Between in or about February 2002 and in or about July 2002, WOTME paid approximately $1,470,128 in kickbacks to the government of Iraq on nine contracts with Iraq’s Ministry of Oil, as well as other ministries, to provide oil drilling and refining equipment. WOTME falsely recorded these kickbacks as other, seemingly legitimate, types of costs and fees. Further, WOTME concealed the kickbacks from the U.N. by inflating contract prices by 10 percent.
According to court documents, these corrupt transactions in Africa and the Middle East earned Weatherford International profits of $54,486,410, which were included in the consolidated financial statements that Weatherford International filed with the SEC.
In addition to the guilty plea by Weatherford Services, the deferred prosecution agreement entered into by Weatherford International and the Department requires the company to cooperate with law enforcement, retain an independent corporate compliance monitor for at least 18 months and continue to implement an enhanced compliance program and internal controls designed to prevent and detect future FCPA violations. The agreement acknowledges Weatherford International’s cooperation in this matter, including conducting a thorough internal investigation into bribery and related misconduct, and its extensive remediation and compliance improvement efforts.
The export case was investigated by the Department of Commerce’s Bureau of Industry and Security, Office of Export Enforcement and the Department of the Treasury’s Office of Foreign Assets Control. The case is being prosecuted by Assistant U.S. Attorney S. Mark McIntyre and was previously investigated by Assistant U.S. Attorney Jeff Vaden.
The FCPA case was investigated by the FBI’s Washington Field Office and its team of special agents dedicated to the investigation of foreign bribery cases. The case is being prosecuted by Trial Attorney Jason Linder of the Criminal Division’s Fraud Section, with the assistance of Assistant U.S. Attorney Mark McIntyre of the Southern District of Texas. The case was previously investigated by Fraud Section Trial Attorneys Kathleen Hamann and Allan Medina, with assistance from the Criminal Division’s Asset Forfeiture and Money Laundering Section. The Justice Department also acknowledges and expresses its appreciation for the significant assistance provided by the SEC’s FCPA Unit.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Three Hostage Takers Sentenced to at Least A Decade in PrisonRead the Press Release
PHOENIX – On Nov. 25, 2013, Francisco Javier Astorga-Velarde, 23, and Jose Pedro Soto-Valdez, 24, were sentenced by U.S. District Judge Susan R. Bolton to 12 years imprisonment. The third co-defendant, Noel Galindez-Marmolejo, 33, received a sentence of 10 years. All three defendants are citizens of Mexico and pleaded guilty in August 2013 to using a firearm during a crime of violence which, in this case, was hostage taking.
In late 2012, the defendants held undocumented aliens hostage at a residence in Phoenix while waiting for the aliens’ smuggling fees to be paid. The defendants increased the aliens’ smuggling fees and held them at gun point. The captors beat, pistol whipped and threatened to kill the hostages as well as broke one of the hostage’s fingers. One hostage stated a sexual assault occurred at the house.
The investigation in this case was conducted by the U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations and the Phoenix Police Department. The prosecution was handled by Lisa E. Jennis, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-12-02104-PHX-SRB
RELEASE NUMBER: 2013-089_Astorga-VelardeFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Tampa Man Pleads Guilty to Stolen Identity Refund FraudRead the Press Release
Tampa, FL – Acting United States Attorney A. Lee Bentley, III announces that Brian E. Simmons today pleaded guilty to wire fraud and aggravated identity theft. He has also agreed to forfeit $790,421.28 to the United States, as proceeds of the offense. Simmons faces up to 22 years in prison. He is scheduled to be sentenced on February 13, 2014. A co-defendant Tressa V. Guy pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft on October 16, 2013. She is scheduled to be sentenced on January 9, 2014.
According to the plea agreement, Simmons, a resident of the Tampa area, and others, including Tressa V. Guy, orchestrated a scheme to defraud the United States Treasury by causing fraudulent federal income tax returns to be filed. To facilitate the scheme, they used stolen identities, solicited personal identifying information and addresses from co-conspirators in Florida and Georgia, and coordinated the withdrawal of fraudulently obtained tax refund amounts from prepaid debit cards.
In April 2012, Monroe County Sheriff's Office ("MCSO") conducted a traffic stop of a car driven by Simmons, in which Guy was the only passenger. MCSO discovered medical office patient roster screen prints and handwritten notes containing at least twenty-eight names, social security numbers (SSN) and dates of birth (DOB), cash in the amount of $10,818.00, and nine prepaid debit cards in the names of individuals other than Guy or Simmons. Deputies also discovered three cell phones; two apparently belonging to Simmons and one belonging to Guy. Photos of personal identifying information and hundreds of text messages between Guy, Simmons, and others discussing the fraudulent scheme were discovered on these cell phones. Photos of approximately thirty-three names, SSNs and DOBs were found on one of Simmons' cell phones.
In May 2012, the Tampa Police Department performed a traffic stop of a vehicle driven by Brian Simmons. Tressa Guy and another individual were passengers in the vehicle. In the vehicle were fourteen prepaid debit cards in the names of individuals other than Guy or Simmons, cash in the amount of $1,300, and multiple Walmart receipts. Guy’s purse contained one Turbo Tax debit card in the name of another individual.
This case was investigated by the Internal Revenue Service – Criminal Investigation, the Tampa Police Department, and the Monroe County, Georgia Sheriff’s Office, with assistance from the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Matthew J. Mueller and Trial Attorney Jason H. Poole of the Department of Justice, Tax Division.
St. Francis Man Sentenced for LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota, man convicted of Larceny was sentenced on November 25, 2013, by U.S. District Judge Roberto A. Lange.
John Swift, age 55, was sentenced to 2 years’ probation, a $500 fine, $9,458.49 in restitution, and $100 to the Federal Crime Victims Fund.
Swift was indicted by a federal grand jury on February 13, 2013, and pled guilty to the charge on July 23, 2013.
The conviction stems from incidents that took place between August 2009 and December 2010, when Swift was the Chief of the St. Francis Volunteer Fire Department. Swift wrote himself 9 checks from the St. Francis Volunteer Fire Department’s checking account totaling $5,200, which he had countersigned by co-defendant Harvey LaPointe. Swift countersigned 12 checks for other members of the fire department totaling $2,800. These 21 checks were issued to Swift and others who were not entitled to those funds, which were designated by the Todd County Treasurer to pay for insurance premiums for the fire department. Swift also took and carried away property that belonged to the St. Francis Volunteer Fire Department.
The investigation was conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.