Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
23 January 2014
7 Former Bank Officers Plead Guilty in Loan-Fraud Scheme That Preceded Collapse of First National Bank of SavannahRead the Press Release
SAVANNAH, GA: Alan Robert Fleming, 37, from Savannah, Georgia, pled guilty Tuesday before United States District Court Chief Judge Lisa Godbey Wood for his role in a massive loan-fraud scheme against First National Bank of Savannah and other federally-insured banks. Fleming was the last of 7 former officers of First National Bank to plead guilty to charges in a 47-count indictment returned by a federal grand jury sitting in Savannah in January 2013.
The 7 convicted former officers of First National Bank include:
- Heys Edward McMath III, 59, the former President and CEO of First National Bank, pled guilty on November 12, 2013 to conspiring to defraud First National Bank and other federally-insured banks;
- Stephen Michael Little, 65, the former Executive Vice President and CFO of First National Bank, pled guilty on January 15, 2014 to 2 counts of bank fraud;
- Robert Wilson Dailey, 52, the former City President and Senior Lending Officer of First National Bank, pled guilty on January 17, 2014 to 2 counts of bank fraud;
- Jay Patrick Gardner, 63, the former Vice President of Credit Administration of First National Bank, pled guilty on October 25, 2013 to a single count of bank fraud.
- Isaac Jefferson Mulling, 53, a former Senior Vice President and commercial loan officer of First National Bank, pled guilty on January 16, 2014 to 2 counts of bank fraud.
- Alan Robert Fleming, 37, the former City President of the Tybee Island branch and a commercial loan officer of First National Bank, pled guilty on January 21, 2014 to 2 counts of bank fraud;
- Jeffrey Allen Farrell, 45, the former City President of the Richmond Hill branch and a commercial loan officer of First National Bank, pled guilty on January 15, 2014 to a single count of false entries made in bank records.
United States Attorney Edward J. Tarver said, “These Defendants chose to hand out millions of dollars in fraudulent loans and to falsify numerous bank records, all in an effort to gamble with other people’s money and to hide the true condition of the bank that they ran. Their fraudulent conduct put at risk the deposits of those who sought a safe place to keep their money, and ultimately caused a payout of losses by the Federal Deposit Insurance Corporation (FDIC). As the nation continues to recover from a banking crisis of epic proportions, citizens should know this: no matter the complexity of the scheme, bank officers who place FDIC-funds at risk through fraud and other criminal conduct will be brought to justice.”Matt Alessandrino, FDIC Assistant Inspector General for Investigations, stated, “The FDIC Office of Inspector General is proud to join our law enforcement colleagues in announcing the pleas of seven former bank officials for their roles in a complex loan-fraud scheme that contributed to the failure of First National Bank and caused losses to the Deposit Insurance Fund. It is especially important to investigate and prosecute cases where trusted insiders abuse their positions to undermine the integrity of the financial services industry. We are committed to preventing and addressing such threats to the safety and soundness of FDIC-insured banks throughout the country.”
“Bank executives who deliberately falsify and fabricate bank records to fraudulently deceive regulators, bank boards of directors, and the public must be brought to justice for their actions,” said Mark Bialek, Inspector General of the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau. “We will continue to work with our law enforcement partners to vigorously pursue wrongdoers whose fraudulent actions impact any bank or bank-holding company regulated by the Federal Reserve Board’s supervision program.”“The Treasury Office of Inspector General is proud to be a part of this joint effort to combat bank fraud which affects the U. S. Treasury," said John L. Phillips, Assistant Inspector General for Investigations.
According to evidence presented during the guilty plea hearings, as First National Bank’s financial condition began to deteriorate, the Defendants schemed to hide from the bank, members of the bank’s Board of Directors, and from federal regulators millions of dollars in non-performing loans. The Defendants accomplished their scheme by unlawfully loaning money to unqualified nominees to make interest and other payments on other non-performing loans; by enticing others to take over non-performing loans with hidden promises, side deals, and other terms unfavorable to First National Bank; and by recruiting other banks to fund non-performing loans based upon fraudulent misrepresentations about the quality of the loans. To assist in their scheme, the Defendants falsified and fabricated numerous bank documents and records. First National Bank failed and was taken over by the FDIC on June 25, 2010. The FDIC estimates that First National’s failure will cost the Deposit Insurance Fund over $90 million.
The Defendants will be sentenced after the United States Probation Office completes their presentence investigations. All of the Defendants remain on bond pending sentencing.
This case is the result of a joint investigation conducted by Special Agent Amy Whitcomb of the Office of Inspector General of the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau; Special Agent Lance Endy of the FDIC Office of Inspector General; Assistant Special Agent In Charge Anthony Scott of the U. S. Department of Treasury Office of Inspector General; and Forensic Auditor Karen Hartley of the United States Attorney’s Office. First Assistant United States Attorney James Durham and Assistant United States Attorney Jennifer Solari prosecuted the case on behalf of the United States.
10th Street Gang Member Sentenced on RICO and Firearm Charges; Two Associates Plead Guilty to Drug ChargesRead the Press Release
Buffalo, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Justin Augus, of Buffalo, N.Y., who was convicted of Racketeering Influenced Corrupt Organizations (RICO) and possession of a firearm in furtherance of drug trafficking, was sentenced to 228 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Joseph M. Tripi, who handled the case, stated that Augus, a 10th Street Gang member, participated in three shootings. On July 14, 2008, the defendant and another gang member shot a rival member of the 7th Street Gang. On August 11, 2009, Augus and another gang member shot at rival 7th Street Gang associates. And on November 8, 2009, the defendant was in a vehicle being driven by another 10th Street Gang member when he fired several rounds from a semi-automatic weapon which struck a 7th Street Gang member. In addition, Augus distributed marijuana in the territory controlled by the gang between 2000 and 2010. He also possessed firearms during his drug trafficking activities.
Darnell McIntosh, and Jonathan Serrano, both of Buffalo, N.Y., each pleaded guilty before Judge Arcara. Darnell McIntosh pleaded guilty to conspiracy to distribute crack cocaine, cocaine and marijuana, which carries a maximum penalty of 20 years in prison, a $1,000,000 fine, or both. Jonathan Serrano pleaded guilty to conspiracy to distribute marijuana, which carries a maximum penalty of five years in prison, a fine of $250,000, or both.
Between 2006 through 2011, Darnell McIntosh obtained quantities of cocaine and crack cocaine from members of the 10th Street Gang which he then re-distributed in the City of Buffalo. At various times, McIntosh also obtained quantities of marijuana which he also sold.
Jonathan Serrano, along with members and other associates of the 10th Street Gang, sold marijuana in the territory controlled by the gang in 2009.
The defendants are among 44 10th Street Gang members and associates charged in this case. A total of 29 have been convicted.
The pleas are the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig, the New York State Police, under the direction of Major Michael Cerretto, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Frank Christiano.
Jonathan Serrano will be sentenced on April 28, 2014, at 1:00 p.m. before Judge Arcara. Sentencing for Darnell McIntosh is scheduled for July 24, 2014, at 12:30 p.m., also before Judge Arcara.
22 January 2014
pANAMA cITY mAN sENTENCED TO 97 mONTHS ON cHILD eXPLOITATION cHARGESRead the Press Release
PANAMA CITY, FLORIDA – United States Attorney Pamela C. Marsh announced that Daniel Freiwald, 29, was sentenced today by the Honorable Judge Smoak to 97 months in prison for 3 counts of child exploitation offenses.
Between December 7, 2012, and January 23, 2013, Friewald, who was then an active duty Air Force member stationed at Tyndall Air Force Base, knowingly and intentionally possessed and received images and videos of child pornography, the majority of which depicted prepubescent children, including infants and toddlers.
Freiwald was also sentenced to a five-year term of supervised release, which he will be required to serve upon completion of his prison sentence.
Ms. Marsh credited the success of this prosecution to the joint efforts of the agencies participating in the North Florida Internet Crimes Against Children Task Force, particularly agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Pensacola Police Department.
This case was prosecuted by Assistant United States Attorney Kathryn Risinger.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. 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 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.pANAMA cITY mAN sENTENCED TO 97 mONTHS ON cHILD eXPLOITATION cHARGESRead the Press Release
PANAMA CITY, FLORIDA – United States Attorney Pamela C. Marsh announced that Daniel Freiwald, 29, was sentenced today by the Honorable Judge Smoak to 97 months in prison for 3 counts of child exploitation offenses.
Between December 7, 2012, and January 23, 2013, Friewald, who was then an active duty Air Force member stationed at Tyndall Air Force Base, knowingly and intentionally possessed and received images and videos of child pornography, the majority of which depicted prepubescent children, including infants and toddlers.
Freiwald was also sentenced to a five-year term of supervised release, which he will be required to serve upon completion of his prison sentence.
Ms. Marsh credited the success of this prosecution to the joint efforts of the agencies participating in the North Florida Internet Crimes Against Children Task Force, particularly agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Pensacola Police Department.
This case was prosecuted by Assistant United States Attorney Kathryn Risinger.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. 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 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.Yolando Blount Sentenced to 27 Years for Nursing Home Identity TheftRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announces that Yolando Blount, aka Yolanda King, 32, of Macon, Georgia was sentenced on Friday, January 22, 2014, to serve 324 months (27 years) imprisonment in a case of wire fraud, mail fraud, conspiracy, theft of public money, aggravated identity theft and access device fraud. The sentence was handed down by the Honorable Marc T. Treadwell, United States District Court Judge, in Macon, Georgia. The Court also ordered Ms. Blount to pay restitution to the Internal Revenue Service in the amount of $493,506.60.
Ms. Blount entered a plea of guilty to the charges on September 4, 2013. In her plea agreement, the defendant admitted that beginning in 2010, she obtained stolen identities of nursing home patients and used that information to file fraudulent income tax returns. Some federal tax refunds were processed in the names of the patients and mailed to Ms. Blount’s address. Others were directly deposited into a bank account belonging to the defendant.The tax returns found on the Defendant’s laptop computer represent refund claims filed against the Government in the amount of $511,951.00. From those claims, the Internal Revenue Service actually paid out $460,692.00 in false claims. The total amount of actual loss to the United Sates, including the nursing home patient refunds and the Capital City Bank refunds, was $493,506.60. The total amount of fraudulent refund claims is $550,150.60.
U.S. Attorney Michael Moore said, “Ms. Blount’s actions represent the worst kind of greed accompanied by criminal conduct. Not only did she use the stolen identification of nursing home patients to advance her scheme, she stole from the American people when she obtained the fraudulent refunds. Ms. Blount’s fraud was far-reaching, and she is deserving of this harsh sentence. Identity theft and fraud are not victimless crimes; when you want to know who the victims are, all you have to do is look in the mirror.”
“The United States Secret Service and our law enforcement partners work tirelessly to thoroughly investigate cases like this. We will continue to take an aggressive approach to arrest those who violate the faith and trust of victims such as the unsuspecting nursing home patients in this case,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
"Today's sentencing of Ms. Blount should serve as a stark reminder to others that such greed based criminal behavior as seen in this case comes with a cost," stated Special Agent in Charge, Veronica F. Hyman-Pillot. "IRS Criminal Investigation is united with the law enforcement community to continue with the aggressive pursuit of individuals who commit crimes against our society and the United States Treasury."
“The Treasury Office of Inspector General is proud to be a part of this joint effort to combat identity theft and fraud against the U.S. Treasury,” said John L. Phillips, Assistant Inspector General for Investigations.
Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: "The FBI will continue to provide investigative resources toward such cases as this that victimize so many, to include the elderly, through identity theft. Anyone with information regarding such activities should contact their nearest FBI field office."
The case was investigated by the Internal Revenue Service Criminal Investigation, United States Secret Service, Federal Bureau of Investigation, U.S. Treasury Department – OIG, and Macon Police Department. The case was prosecuted by Assistant United States Attorney Graham A. Thorpe.
For additional information please contact Pamela Lightsey, Public Information Officer, United States Attorney’s Office at (478) 621-2603.
Wilkes-Barre Men Charged with Drug Trafficking OffensesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today the filing of criminal informations yesterday charging three men from Luzerne County separately with drug trafficking offenses.
Richard Hall, age 38, of Wilkes-Barre, was charged with conspiracy to distribute cocaine hydrochloride and cocaine base (crack) between 2009 and April 2013. Hall is also charged with distributing marijuana to a seventeen year old.
Alfred Oglesby, age 45, of Wilkes-Barre, was charged with distributing cocaine on numerous occasions between 2010 and April 2, 2013.
Robert Tolbert, age 39, of Wilkes-Barre, was charged with possession with the intent to distribute cocaine hydrochloride and cocaine base (crack) on April 2, 2013.
United States Attorney Peter J. Smith stated that the charges are the result of an investigation conducted by the Federal Bureau of Investigation; the Pennsylvania Attorney General’s Office; and the Luzerne County District Attorney’s Office. Prosecution is assigned to Assistant United States Attorney John Gurganus.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is thirty years’ imprisonment for Richard Hall, and twenty years’ imprisonment for Alfred Oglesby and Robert Tolbert. Each also faces a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
****Wellsville Man Sentenced on Drug ChargesRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Justin J. McPherson, 28, of Wellsville, N.Y., who was convicted of conspiracy to manufacture, possess with intent to distribute and distribute, 50 grams or more of methamphetamine, was sentenced to time served (24 months) in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Thomas S. Duszkiewicz, who handled the case, stated that during the execution of a search warrant on January 26, 2012 at a residence on South Main St. in Wellsville, law enforcement officers discovered items used to manufacture methamphetamine and a quantity of methamphetamine. A search warrant was later executed at a residence on Madison Ave. in Wellsville. During that search, officers discovered an active methamphetamine laboratory.
The defendant was arrested along with Jason Patterson, his wife April Patterson, Anthony Kidd, and John Faber. April Patterson, Kidd and Faber have been convicted and are awaiting sentencing. Charges are pending against Jason Patterson. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Today’s sentencing is the result of an investigation on the part of the New York State Police, under the direction of Major Michael Cerretto, the Wellsville Police Department, under the direction of Chief Timothy Walsh, and the Drug Enforcement Administration, under the direction of Jamie J. Hunt, Acting Special Agent in Charge, New York Field Division.Wellsburg Man Convicted of Heroin DistributionRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WV – A Wellsburg, West Virginia, man has admitted to distributing heroin that caused the death of another.
United States Attorney William J. Ihlenfeld, II, announced that JUSTIN A. WITHERS, 29 years old, entered a plea of guilty to “Aiding and Abetting the Distribution of Heroin.” WITHERS, who is presently in custody, faces a binding term of 150 months in prison. This term of imprisonment must still be approved by Judge Frederick P. Stamp, Jr., who took the plea from WITHERS this week but deferred acceptance of the terms of the plea agreement until the time of sentencing. The sentencing hearing will be scheduled after a pre-sentence report has been prepared by the U.S. Probation Office.WITHERS and his co-defendant Curtis ADAMS were indicted by a federal grand jury last year for allegedly delivering heroin that caused the death of a Brooke County man in 2011. ADAMS pleaded guilty to “Interstate Travel in Aid of Racketeering” after traveling to Steubenville, Ohio, to acquire heroin and then bringing it back to Brooke County to distribute. ADAMS was sentenced to 60 months in prison as a result of his conviction.
The case was prosecuted by Assistant U.S. Attorney Stephen L. Vogrin and investigated by the Hancock-Brooke-Weirton Drug Task Force, Follansbee Police Department, the Wellsburg Police Department and the Brooke County Sheriff’s Department.
Washington, DC Drug Dealer Pleads Guilty to Heroin DistributionRead the Press Release
Defendant sold heroin that resulted in three overdose deaths in northern Virginia
ALEXANDRIA, Va. – Eugene Asomani Williams, also known as “Shine,” 35, of Washington, DC, pleaded guilty today to conspiracy to distribute one kilogram or more of heroin and to using and possessing a firearm during and in furtherance of drug trafficking.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after the plea was accepted by United States District Judge Leonie M. Brinkema.
Williams was indicted on November 21, 2013 by a federal grand jury on the charges to which he entered guilty pleas. Williamsfaces a mandatory minimum term of 15 years of incarceration and a maximum penalty of life in prison when he is sentenced on April 18, 2014.
In a statement of facts filed with the plea agreement, Williams admitted to selling over one kilogram of heroin in the Washington metropolitan area since 2004. Williams further admitted that heroin he distributed in 2012 and 2013 led to three overdose deaths in Virginia. As detailed in the indictment and statement of facts, in January 2012, an Army Private stationed at Fort Belvoir died of an overdose after using heroin sold by the defendant. In February 2012 and April 2013, two other individuals died as a result of using heroin sold by the defendant.
The defendant also admitted to regularly carrying a firearm in furtherance of his heroin trafficking activities. The defendant stated that the firearm he used most recently was a .38 caliber revolver. Additionally, DEA seized .45 caliber ammunition from the defendant’s home during the execution of a search warrant in September 2013.
This case was investigated by the DEA’s Washington Field Division, with assistance from the U.S. Army’s Criminal Investigation Division and the Fairfax County Police Department. Assistant United States Attorneys Michael P. Ben’Ary and Julia K. Martinez are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Visalia Man Sentenced to 10 Years in Prison for Sex Trafficking of a MinorRead the Press Release
FRESNO, Calif. — Alejandro Manuel Perez, 28, of Visalia, was sentenced today by United States District Judge Lawrence J. O'Neill to 10 years in prison for participating in a sex trafficking venture involving a minor, United States Attorney Benjamin B. Wagner announced.
According to court documents, between February 4, 2010, and March 13, 2010, Perez knowingly benefitted, financially or otherwise, from his participation in a sex-trafficking venture which involved a minor female victim. Perez was charged with sex trafficking on March 8, 2012, and pleaded guilty to this charge on October 30, 2013. He has been in custody since March 27, 2012.
“The FBI and its partners work tirelessly to identify and rescue young sex trafficking victims, investigating these deplorable crimes to ensure that those who commercially exploit children face justice,” said Special Agent in Charge Monica M. Miller of the FBI’s Sacramento Field office. “By disrupting these illicit ventures and removing traffickers from our communities, we hope to offer the victims a chance at a normal life and to prevent other children from falling prey to such predators who feed on the vulnerabilities of the young.”
This case was the product of an extensive investigation by the Fresno Office of the FBI and the Visalia Police Department. Assistant United States Attorney Brian W. Enos is prosecuting the case.
Vacaville Man Sentenced for Defrauding Three Federal AgenciesRead the Press Release
SACRAMENTO, Calif. — United States District Judge Lawrence K. Karlton sentenced Robert Daniel Castillo, 50, of Vacaville, today to one year and one day in prison for workers’ compensation and disability benefits fraud, United States Attorney Benjamin B. Wagner announced. Judge Karlton ordered Castillo to pay $138,997 in restitution.
This case was the product of an investigation by the United States Postal Service, Office of Inspector General and the Social Security Administration, Office of Inspector General. Assistant U.S. Attorney Jared C. Dolan prosecuted the case.
“The American public expects Postal Service employees to be diligent and honest. Through its investigations, the Office of Inspector General helps to maintain that integrity. When US Postal Service employees’ actions turn to criminal violations, such as the abuse of the workers’ compensation program, those individuals are aggressively investigated by USPS OIG Special Agents,” said Scott Pierce, Special Agent in Charge, US Postal Service Office of Inspector General, Pacific Area Field Office.”
According to court documents, on October 15, 1998, Castillo, while working for the U.S. Postal Service in Fresno, claimed that he had injured his lower back while on the job. He submitted a claim for workers’ compensation benefits. For more than 10 years, Castillo received federal workers’ compensation benefits based on that injury. Castillo also received Social Security Disability and Veterans Benefits based on claims of 100 percent disability. Altogether, Castillo received more than $6,000 a month based on his claimed disability. Castillo was observed playing basketball and softball, driving, shopping, washing a boat, performing yard work, and performing volunteer work. At doctor’s appointments and meetings with officials from the Department of Labor and Social Security, Castillo claimed an inability to do all of these things.
A federal grand jury indicted Castillo on July 19, 2012, and on April 24, 2013, he pleaded guilty to theft of United States property and false statements made to the government in seeking compensation payments the charges.
United States Attorney for the Western District of Virginia Collects over $500 Million in Civil and Criminal Penalties in 2013Read the Press Release
ROANOKE, VIRGINIA – United States Attorney Timothy J. Heaphy announced today that the United States Attorney’s Office for the Western District of Virginia collected $501,452,563 in criminal and civil penalties in fiscal year 2013. Additionally, the Western District of Virginia worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1,155,045,898 in civil cases pursued jointly with these offices.
Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“In 2013, our office collected more than 75 times our annual budget in criminal and civil penalties and asset forfeitures,” United States Attorney Timothy J. Heaphy said today. “I am proud of the AUSAs and staff in our district, who continue to achieve unprecedented success in recovering assets from those who commit fraud and other crimes. This money helps provide restitution and other victim services, and supports law enforcement activities around the district.”
For Fiscal Year 2013, the United States Attorney’s Office for the Western District of Virginia, collected more criminal, district-only, money than any other United States Attorney’s Office in the country. The $501,333,280, collected in 2013 is the highest total collection money collected to date in the Western District of Virginia. A large portion of this FY13’s collections stem from the criminal fine levied against Abbott Labs, announced in 2012.Our office was again near the top of the list in terms of shared collections in civil cases. The $1.155 billion collected civilly includes $818 million from the Abbott Labs case brought in the Western District of Virginia, as well as $335 million in shared collections in nationwide cases brought by other United States Attorney’s Offices. In these “shared collections” cases, employees of the USAO-WDVA personally contacted local victims to make them aware of prosecutions in other districts and gave them the information they needed to enforce their rights and obtain relief. Our work on these shared collection matters helped ensure that local victims received the restitution they deserve.
“Our participation in these shared collection actions reinforces the notion that we must work with the Department, and other districts, to successfully prosecute some of these large, complex fraud cases,” U.S. Attorney Heaphy said today.
In terms of asset forfeiture, the USAO-WDVA collected assets totaling $6,345,519, more than any other similarly-sized United States Attorney’s Office in the nation. In addition, the USAO-WDVA has more assets under seizure than 91 other districts, with a value of seizures higher than 80 other districts.
“Our asset forfeiture unit does an unbelievable job in identifying and seizing those assets derived from the ill-gotten gains of the convicted,” said Assistant United States Attorney Sharon Burnham, Chief of the Asset Forfeiture Unit. “These forfeited assets help compensate victims and provide a needed supplement to the local law enforcement community. It’s gratifying to use a criminal’s assets to fight crime.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Two Charged with Drug Trafficking OffensesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the Grand Jury in Scranton returned Indictments on January 21, 2014 charging Rasheen Smith, age 25, of Endicott, New York, and Tasmiyah Sharif, age 23, of Wilkes-Barre, Pennsylvania, separately with conspiring to distribution of cocaine, cocaine base and marijuana. The Indictments also charged the each defendant with distributing controlled substances in Luzerne County during 2012 and 2013.
Prosecution is assigned to Assistant United States Attorney John Gurganus.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is forty years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Two Assistant U.S. Attorneys Receive Award from the Drug Enforcement AdministrationRead the Press Release
Montgomery, Alabama - The Drug Enforcement Administration presented Assistant U. S. Attorneys Verne Speirs and Gray Borden the Spartan Award, announced George L. Beck, Jr., United States Attorney Middle District of Alabama. The Spartan award recognizes prosecutors for their dedication and extraordinary effort to investigate and prosecute large-scale drug dealers and money launderers.
This year’s award is presented to Assistant U.S. Attorneys Speirs and Borden due to the long hours they have invested and the success they achieved in combating the ever-growing scourge of drug dealing in the Middle District of Alabama. The DEA chose Speirs and Borden for this award after examining the work of all federal prosecutors in the State of Alabama.
“The DEA in Alabama was pleased to present the 2013 Spartan Award for Excellence in Drug Investigations to AUSA’s Speirs and Borden,” stated Clay Morris, Assistant Special Agent in Charge of DEA in Alabama. “The award was named after the Spartan Warrior Society. AUSAs Speirs and Borden were selected by DEA management to receive the award because they exhibited many traits of a Spartan Warrior: a relentless pursuit of justice, tenacity, loyalty and dedication. Throughout 2013, AUSA’s Speirs and Borden tirelessly worked alongside our agents and task force officers in many long term and complex investigations. Because of the dedication of AUSAs Speirs and Borden, many drug trafficking organizations were completely dismantled and dangerous criminals were removed from the streets of our communities. I cannot say enough about the outstanding efforts of AUSAs Speirs and Borden and the entire staff of the Unites States Attorney’s Office. One thing is certain, as long as AUSAs Speirs and Borden are prosecuting drug trafficking organizations, those who target and sell poison to our children should be very afraid.”
“I am very pleased that the extraordinary success of AUSAs Speirs and Borden are receiving the recognition they truly deserve,” stated U.S. Attorney George Beck, “They have worked tirelessly to prosecute these criminals. I believe it is essential that these types of crimes be vigorously prosecuted and that we continue to combat the drug problem facing this district and this nation.”
“I am truly humbled to receive this award, but the real credit goes to the DEA Agents and Task Force Officers who risk everything to combat drug traffickers across this country,” stated Verne Speirs, Assistant U.S. Attorney. “The safety of our families and communities depend upon their selfless service.”
“I consider this award to be one of the great achievements in my career in the U.S. Attorney’s Office, but the credit goes to our dedicated and professional staff and the DEA’s stable of tireless agents,” stated Gray Borden, Assistant U.S. Attorney. “I am proud to be associated with a team of this caliber.”
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Troy Man Sentenced to 10 Years in Prison for Attempting to Entice A Minor to Engage in Sexual ActsRead the Press Release
Attempted to Arrange a Sexual Encounter with a Twelve-Year-Old-Girl
ALBANY, NEW YORK – MICHAEL HEPPELLE, age 42, of Troy, New York was sentenced to ten (10) years of imprisonment for attempted online enticement of a minor on January 21, 2014 in Albany by Chief United States District Court Judge Gary L. Sharpe, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent-in-Charge, Federal Bureau of Investigation, Albany Division. HEPPELLE, who had entered a guilty plea on September 19, 2013, was also ordered to serve a 15-year term of supervised release, to have no unsupervised contact with minors, and to register with the New York State Sex Offender Registry Program.
Between September 24, 2012 and October 3, 2012, HEPPELLE called a cooperating witness and offered to pay $500 if the cooperating witness could arrange for HEPPELLE to have a sexual encounter with a twelve-year-old girl. The cooperating witness reported his/her concerns to law enforcement, who in turn, told the cooperating witness to tell HEPPELLE that if he was serious about engaging in sexual acts with the twelve-year-old girl, he could meet the child on October 3, 2012 at a particular time, at a pre-arranged location in Rensselaer County. On October 3, 2012, HEPPELLE arrived at the pre-arranged location at the pre-determined time to meet with and engage in sexual acts with the girl. HEPPELLE was then arrested and was found to be in possession of $500 in U.S. currency, a cellular telephone, two condoms, and a lubricant typically used during sexual intercourse.
This case was investigated by the Federal Bureau of Investigation and the Rensselaer County Sheriff’s Office.
Three-Hour Manhunt Results in Drug ConvictionRead the Press Release
LAREDO, Texas – Rodolfo Aranda, 25, of Laredo, has been ordered to prison for possession with intent to distribute more than 100 kilograms of marijuana, announced United States Attorney Kenneth Magidson. Aranda pleaded guilty Sept. 10, 2013.
Today, U.S. District Judge Diana Saldana ordered Aranda to federal prison for 60 months which will be immediately followed by a five-year-term of supervised release. He was further ordered to pay a $2,000 fine.
On July 11, 2013, U.S. Border Patrol (BP) agents arrested Aranda for absconding from authorities on Highway-44 near Laredo. He had been driving a pick-up truck with tampered oil-field numbers, at times drastically increasing and decreasing his speed. BP requested a registration check of the vehicle and learned the license plates did not match the vehicle. Suspicious of illegal activity, agents initiated an immigration inspection and activated their overhead lights.
Aranda then accelerated his vehicle and abruptly turned off the highway, driving his truck through a ranch fence and into the brush. He exited his vehicle on foot and fled through the ranch.
A three-hour manhunt ensued and involved both air and ground patrol. He was arrested within the brush as a result of the search.
At the time of his arrest, Aranda’s fingerprints were found within the vehicle as well as matching footprints near the crime scene. Agents also discovered 20 bundles of marijuana, weighing 202.8 kilograms and valued at $357,760 within the truck.
Aranda will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by the Drug Enforcement Administration and US Border Patrol. Assistant U.S. Attorney Sanjeev Bhasker prosecuted the case.
Three People Charged in Heroin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that two Philadelphia residents and a state prison inmate were indicted by a federal grand jury yesterday for participating in a drug trafficking conspiracy that distributed heroin during November 2013 to the present.
According to United States Attorney Peter J. Smith, the grand jury alleges that Eudy Gonzalez, age 24, an inmate at State Correctional Institution Waymart, Linda Reyes, age 23, and Luis Morales, age 31, conspired to distribute and possess with intent to distribute more than 100 grams of heroin during a two-month time period.
The Indictment alleges that the defendants arranged to obtain heroin in Philadelphia and had the heroin transported to the Allentown area for further distribution into the Hazleton area. The indictment alleges that the suspects communicated with each other and drug customers by phone and text messages.
The charges stem from an investigation by special agents and task force officers of the Federal Bureau of Investigation and Scranton Police.
If the defendants are convicted of the charges, they each face a mandatory minimum sentence of five years in prison and a possible maximum sentence of 40 years in prison.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 40 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Three Georgia Men Charged in Alleged Widespread <br /> Corruption Schemes at Local Military BaseRead the Press Release
Three Georgia men have been charged in a 51-count indictment for their alleged participation in fraud and corruption schemes at the Marine Corps Logistics Base (MCLB) in Albany, Ga., resulting in the loss of millions of dollars to the United States government.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia made the announcement after the indictment was unsealed in the Middle District of Georgia today.
Christopher Whitman, 48, co-owner of United Industrial of Georgia Inc. (also known as ULOC), an Albany-based trucking company and freight transportation broker , was indicted on 43 counts of money, property and honest services wire fraud, five counts of bribery and one count of theft of government property. Shawn McCarty, 36, of Albany, a former employee at the MCLB-Albany, was charged with 30 counts of money, property and honest services wire fraud and one count of bribery; and Bradford Newell, 43, of Sylvester, Ga., also a former employee at the MCLB-Albany, was charged with 13 counts of money, property and honest services wire fraud, one count of bribery, and one count of theft of government property.
The three men were arrested earlier today and appeared before U.S. Magistrate Judge Thomas Q. Langstaff. Judge Langstaff ordered the three men detained pending further hearings next week.
According to the indictment, Whitman paid nearly $1 million in bribes to Mitchell Potts, the former traffic office supervisor for the Defense Logistics Agency (DLA) at MCLB-Albany, Jeff Philpot, the former lead transportation assistant in the traffic office, and Shawn McCarty, another transportation assistant in the traffic office, to obtain commercial trucking business from the DLA. The indictment alleges that Potts, Philpot and McCarty used their official positions to defraud the government and benefit ULOC by helping ULOC obtain transportation contracts loaded with unnecessary premium-priced requirements – including expedited service; removable gooseneck trailers, which do not require a loading dock and are therefore more expensive than standard trailers; and exclusive use, which requires that freight be shipped separately from other equipment – even if that results in a truck not being filled to capacity. The indictment alleges that Whitman and ULOC brokered these shipments for service without the premium specifications and on fewer trucks than requisitioned by DLA, but they billed the government at rates approved by the corrupt officials. These actions are alleged to have resulted in ULOC profits grossing more than $20 million over less than four years.
Whitman is accused of orchestrating a scheme to steal and sell surplus equipment from MCLB-Albany worth more than $1 million. Whitman allegedly paid approximately $200,000 in total bribes to Shelby Janes, the former inventory control manager of the Distribution Management Center (DMC) at MCLB-Albany, and Newell, an assistant to Janes, who used their official positions to help Whitman steal surplus equipment from the base, including bulldozers, cranes and front-end loaders. The indictment alleges that Whitman improved and painted the stolen equipment.
An indictment is merely a charge and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
If convicted, the defendants face up to 20 years in prison for each wire fraud count and 15 years in prison for each bribery count. The theft count carries a maximum prison term of 10 years. Each charged count carries a maximum fine of $250,000 or twice the gross gain.
Prior to this indictment, one former ULOC employee and three DLA officials pleaded guilty in connection with the fraud and corruption schemes alleged in the indictment. On Oct. 10, 2013, Kelli Durham, ULOC’s former manager, pleaded guilty to conspiracy to commit wire fraud, admitting to intentionally overbilling the United States for services ULOC did not perform, resulting in losses ranging from $7 million to $20 million, and for receiving $905,685 for her role. She faces a maximum penalty of five years in prison. In May 2013, Potts and Philpot pleaded guilty to bribery for collectively accepting more than $700,000 in bribes; and in February 2013, Janes pleaded guilty to bribery for receiving nearly $100,000 in bribes. The three former officials each face up to 15 years in prison.
The case is being investigated by the Naval Criminal Investigative Service, with assistance from the Dougherty County District Attorney’s Office Economic Crime Unit, Defense Criminal Investigative Service, DLA Office of the Inspector General, and the Department of Labor Office of the Inspector General. The case is being prosecuted by Trial Attorneys Richard B. Evans and J.P. Cooney of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia.Three Campaign Workers Charged with Buying Votes<br /> in a Donna, Texas School Board ElectionRead the Press Release
A campaign worker was indicted yesterday by a federal grand jury in the Southern District of Texas for allegedly paying voters to vote in a Donna, Texas school board election. Two other campaign workers were indicted on similar charged last week for alleged vote-buying in the election.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas made the announcement.
The three indictments charge Donna residents Diana Balderas Castaneda, 48; Guadalupe Zapata Escamilla, 72; and Rebecca Gonzalez, 44, with one count each of vote-buying. They face a maximum penalty of five years in prison upon conviction.
According to the indictments, a general election was held in Donna on Nov. 6, 2012, which included candidates for the presidential election, as well as for various state, county and local offices, including Donna School Board. The three defendants are alleged to have assisted in the campaign to elect the Democratic candidates to the Donna School Board. In the course of that work, the three women are accused of knowingly and willfully paying and offering to pay voters for voting in this election.
An indictment is merely an accusation, and a defendant is presumed innocent unless and until proven guilty in a court of law.
This case was investigated by the FBI. Trial Attorneys Monique Abrishami and Jennifer Blackwell of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Leo J. Leo of the Southern District of Texas are prosecuting the case.The Executive Office for Immigration Review to Host Stakeholder Meeting on New Country Conditions ResourceRead the Press Release
SUMMARY: The Executive Office for Immigration Review invites interested parties to participate in a meeting regarding the new Country Pages section of the Virtual Law Library, the agency’s online legal research resource. The new section is an extensive collection of information about the conditions in countries around the world.
DATE: Friday, Jan. 31, 2014, at 2 p.m.
MEETING LOCATION: 5107 Leesburg Pike, Suite 1800, Falls Church, VA.
RSVP: To RSVP for the meeting, please contact Lauren Alder Reid, Counsel for Legislative and Public Affairs, 703-305-0289, [email protected], by noon on Jan. 30, 2014. Attendance will be limited to the first forty (40) individuals to RSVP. Those who are unable to attend in person will be able to participate via teleconference. Call-in information will be available to those who RSVP. To attend the meeting via conference call, please RSVP with the name(s) of the attendee(s), the attendee’s organization, and an email address where instructions may be sent for accessing the conference call.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Stockton Man Pleads Guilty to Being A Felon in Possession of Firearms, Bank and Credit Card Fraud, and Identity TheftRead the Press Release
SACRAMENTO, Calif. — Antwane Pierre Burrise, 33, of Stockton, pleaded guilty today to being a felon in possession of firearms, possessing unauthorized access devices, possessing identifications of others, possessing stolen U.S. mail, bank fraud and aggravated identity theft, United States Attorney Benjamin B. Wagner announced.
This case is the product of an investigation by the United States Postal Inspection Service and the Stockton Police Department. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.
According to court documents, on October 24, 2013, the Stockton Police Department received reports of a suspicious vehicle in a Stockton neighborhood. The responding officer later identified Burrise as the only occupant of the vehicle. Burrise possessed a fully loaded extended magazine Glock pistol in the driver's floor area where he sat in the vehicle. Also found in the car were hundreds of items of stolen U.S. Mail bearing the names of at least 300 different San Joaquin County victims. Burrise also possessed an extended magazine AK-47 in the trunk of his vehicle and ammunition for his assault rifle. Burrise further possessed more than 15 identifications of others, more than 25 credit and debit cards of others, and merchandise purchased using the credit and debit cards of others.
Burrise is scheduled to be sentenced on April 9, 2014, by United States District Judge Kimberly J. Mueller. He faces up to 10 years in prison for the felon in possession of charge, up to 30 years in prison for bank fraud, two years in prison consecutive to any other sentence for aggravated ID theft, up to 10 years in prison for access device fraud, up to 15 years in prison for possession of ID documents of others, and up to five years for possession of stolen U.S. Mail. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Stella Man Indicted for Transporting a Minor for Illicit SexRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Stella, Mo., man has been indicted by a federal grand jury for transporting a minor across state lines for illicit sex.
Tong Yang, 45, of Stella, was charged in an indictment returned by a federal grand jury in Springfield, Mo., on Tuesday, Jan. 21, 2014.
The federal indictment alleges that Yang transported a minor across state lines to Newton County, Mo., on Dec. 7, 2013, with the intent to engage in illicit sexual activity.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Cassville, Mo., Police Department and the Neosho, Mo., Police Department.
Stamford Resident Pleads Guilty to Running $800,000 Fraudulent Computer Networking Parts SchemeRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CRAIG A. STANLAND, 40, of Stamford, waived his right to indictment and pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to one count of mail fraud arising from a scheme in which STANLAND obtained hundreds of computer networking parts from Cisco Systems, Inc. through the use of multiple aliases, business entities, and post office boxes and shipping addresses.
According to court documents and statements made in court, from October 2012 until he was arrested on October 1, 2013, STANLAND operated a service contract fraud scheme in which he purchased or controlled approximately 18 service contracts for Cisco networking parts. Pursuant to these service contracts, STANLAND – using the aliases “Alan Johnston” of Opex Solutions, “Kyle Booker” of KLB Networks, “Steve Jones” of SHO Networks, “Robert Johnson” of Adaptations, and “Paul Smith” of PS Solutions, among others – made hundreds of false service requests to Cisco to replace purportedly defective computer networking parts. Based on these requests, Cisco shipped replacement parts to various addresses at STANLAND’s direction, including to his home in Stamford, to his wife’s business in Brooklyn, N.Y., and to two post office boxes in Greenwich.
STANLAND sold the new parts to third parties to enrich himself. Although he was supposed to return the allegedly defective part to Cisco, he either returned no parts at all or instead sent to Cisco third-party, off-brand parts.
Through this scheme, STANLAND fraudulently obtained nearly 600 parts from Cisco. The retail cost of the parts ranged from approximately $500 to $8,600, and the total loss to Cisco was approximately $834,307.
STANLAND is scheduled to be sentenced by Judge Arterton on April 21, 2014, at which time he faces a maximum term of imprisonment of 20 years. He has been released on a $100,000 bond since his arrest on October 1, 2013.
This case was investigated by the Federal Bureau of Investigation with valuable assistance from the Greenwich Police Department. The case is being prosecuted by Assistant U.S. Attorney David T. Huang.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Stafford Woman Sentenced to Three Years in Prison for Drug ConspiracyRead the Press Release
ALEXANDRIA, Va. – Patricia Mae Huntt, 52, of Stafford, Virginia, was sentenced today to 36 months in prison, followed by three years of supervised release for conspiracy to distribute controlled substances.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; and Charles E. Jett, Stafford County Sheriff, made the announcement after sentencing by U.S. District Judge James C. Cacheris.
Huntt pleaded guilty on November 4, 2014. According to court documents, Huntt is a former patient of Dr. Nibedita Mohanty, a Stafford, Virginia, medical doctor who was indicted on July 24, 2014, on charges of conspiracy to distribute controlled substances, distribution of controlled substances, aiding and abetting health care fraud, and aiding and abetting money laundering. Mohanty is scheduled for a jury trial on February 24, 2015.
Beginning in January 2010, Huntt and other conspirators began seeing Dr. Mohanty to obtain large quantities of oxycodone and Dilaudid to distribute for profit. Huntt admitted to selling approximately 3,600 oxycodone pills and 1,200 Dilaudid pills over the previous year. Throughout the conspiracy Huntt was personally involved in the distribution of an amount of oxycodone and Dilaudid that is equivalent to at least 700 kilograms but less than 1,000 kilograms of marijuana.
The case was initiated and investigated by the FBI’s Washington Field Office, the FBI’s Richmond Field Office, and the Stafford County Sheriff’s Office. Assistant U.S. Attorney Gene Rossi and Special Assistant U.S. Attorneys Jennifer Ballantyne and Nicole Grosnoff prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-190.Tweet
Southeastern Illinois Man Enters Guilty Plea, Sentenced for Misdemeanor Trespass and Damage to PropertyRead the Press Release
Springfield, Ill. – A southeastern Illinois man, Jordan L. Clark, 23, of Marshall, Ill., appeared in federal court this afternoon and pled guilty to misdemeanor charges of trespassing and damage to property of the National Park Service on Jan. 18, 2014. U.S. Magistrate Judge Byron Cudmore sentenced Clark to time served and ordered that Clark pay restitution in the amount of $3,000.
Clark, who was living temporarily in the 800 block of North 6th Street, in Springfield, was charged in an information filed today by the U.S. Attorney’s Office. Clark admitted that on Jan. 18, 2014, he trespassed upon property of the National Park Service, specifically the Abraham Lincoln Home, and that he caused damage to the property by forced entry and damage to interior structures causing flooding. Clark was arrested on Jan. 18, on the property of the National Park Service.
The National Park Service investigated the incident. The government was represented by Assistant U.S. Attorney John E. Childress.
Service Station Owner Sencenced for Extortion and Mail FraudRead the Press Release
BOSTON – An automobile service station owner, who conspired with a Massachusetts Registry of Motor Vehicle (RMV) project manager to extort other service station owners who wanted to obtain a license to conduct vehicle safety inspections, was sentenced today.
Simon Abou Raad, 51, of Tyngsborough, was sentenced by U.S. District Court Judge George A. O’Toole to three years in prison, two years of supervised release, a $10,000 fine and ordered to forfeit $360,000 in illegal proceeds. In December 2013, Abou Raad pleaded guilty to mail fraud and conspiracy to extort money under color of official right.
Abou Raad owned service stations in Tewksbury and Tyngsboro. His co-defendant, Mark LaFrance, project manager for Vehicle Safety and Compliance Services at the RMV, had oversight responsibilities for the entire motor vehicle inspection program within Massachusetts. In Massachusetts, applications to obtain a license to conduct motor vehicle safety inspections are intended to be granted off a waiting list with consideration given to geographic location. An applicant for a vehicle inspection license must pay a $100 fee and the actual equipment costs about $2,500. The inspection network was at its capacity, therefore the RMV was not granting new licenses off the waiting list.LaFrance and Abou Raad operated what was essentially “a black market” for such licenses through the use of LaFrance’s official position. LaFrance provided to Abou Raad a list of vehicle inspection stations that had a low volume of inspections and/or were planning to surrender their license and sell the inspection equipment. Abou Raad then contacted the service station owner and offered to buy the inspection license and equipment for prices usually in the range of $5,000 to $6,000. Abou Raad offered for sale such licenses and equipment to service station owners desirous of acquiring a license for prices between $50,000 to $75,000. Abou Raad then arranged the transaction to appear as if the service station owners selling and buying the license were merging as a new business entity or with a change in ownership. Although he was aware that these purported mergers were not bona fide, LaFrance either approved the issuing of a new license or permitted others in the RMV to approve the new license. After the fraudulent transaction resulting in the issuance of a vehicle inspection licenses was completed and payment was made to Abou Raad, he split the illegal proceeds with LaFrance. Through this illegal scheme, Abou Raad sold at least 10 inspection licenses and/or machines for approximately $657,000 in total.
In November 2013, LaFrance was sentenced to three years in prison.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys S. Theodore Merritt and Robert Fisher of Ortiz’s Public Corruption Unit.Second Man Pleads Guilty to Fraud Involving Real Estate LoanRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Dwayne H. Means, 46, of Cincinnati pleaded guilty in U.S. District Court to conspiracy to commit bank fraud in connection with a loan to buy a lot in the Villages of Sugar Ridge subdivision in Lawrenceburg, Indiana in 2007.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati (FBI), and Dugan Wong, Inspector in Charge, U.S. Postal Inspection Service announced the plea entered yesterday before Senior U.S. District Judge Herman Weber.
According to court documents, Means and Thomas Reusch, 60, Florence, Kentucky, formed TBS Development LLC and applied for a loan to develop a lot in the subdivision. The price of the lot was $1,200,000. Reusch and Means convinced the seller to artificially increase the sale price and TBS obtained a $2,170,000 loan from Central Bank. Means and Reusch did not disclose to the bank that the additional funds included three years’ worth of pre-payment of rent for Gimmies Restaurant, which was located at Sugar Ridge Golf Course, and payments to others including cash back to themselves. TBS submitted false invoices to Central Bank purportedly showing expenditures on development of the lot. The defendants fraudulently obtained $558,446.81 in loan proceeds.
Reusch pleaded guilty on January 8, 2014 to one count of conspiracy to commit bank fraud, which is punishable by up to 30 years in prison and a fine of $1 million. Reusch’s sentencing is scheduled for April 29. Means’ sentencing is scheduled for April 30.
U.S. Attorney Stewart commended the investigation by FBI special agents and Postal Inspectors and Senior Litigation Counsel Anne Porter, who represented the United States in the case.
Second Guilty Plea in Child Support Collection Business and in Drug ConspiracyRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Mark C. Simpson, 51, of Lake Park, Georgia, entered pleas of guilty on January 22, 2014, to conspiracy to commit mail fraud and wire fraud and conspiracy to commit money laundering in one case and to conspiracy to possess with intent to distribute cocaine and crack cocaine in a separate case. Mr. Simpson entered his pleas of guilty before Senior U.S. District Court Judge Hugh Lawson in Macon, Georgia.As a part of his plea, Mr. Simpson admitted that from September 2007 through August 2009, he, his co-defendant Stuart C. Cole, and others conspired to operate a fraudulent private child support collection business in Lake Park, Georgia and in other locations known as Child Support Services of Atlanta and Child Support Services. Mr. Simpson, Mr. Cole and their associates defrauded custodial parents who were to receive child support payments by inducing them to sign collection agreements with their company and offering to assist them in collecting child support payments from non-custodial parents, claiming that all fees connected with the collections would be the responsibility of the non-custodial parent. Mr. Simpson and Mr. Cole would then use fraud, deception and coercion to get non-custodial parents and their employers to send funds for “child support” to their business. Only a portion of the funds was ever given to the parents for the use of the children. The remainder was retained by Mr. Simpson, Mr. Cole and their associates to fund their lifestyles including leases of homes, cars and boats. The conspiracy collected more than $2.3 million and retained approximately $1.2 million. Additionally, Mr. Simpson admitted to laundering the collected funds through bank accounts including an account for a corporation, purported to be a church, as “love gifts”. Mr. Cole entered a plea of guilty to the same charges on January 17, 2014 in Valdosta, Georgia, and is also currently serving a federal sentence for a drug distribution conviction in the Southern District of Texas.
In a separate case, Mr. Simpson admitted to conspiring with a number of other individuals, including Cole, between 2007 and October 21, 2011, to distribute cocaine in Georgia. Simpson was stopped on I-85 in Troup County, Georgia on December 15, 2010, carrying approximately 13 kilograms of cocaine in furtherance of the conspiracy. The drugs were found in a hidden compartment around the transmission of the vehicle he was driving, which had Texas tags and had crossed the border into Mexico as recently as the day before the stop. The Defendant and the Government stipulated that Mr. Simpson would be sentenced based on the possession with intent to distribute between 15 and 50 kilograms of cocaine hydrochloride as a part of the drug distribution conspiracy.
The Court has scheduled sentencing in both cases for April 4, 2014 in Albany, Georgia. Mr. Simpson faces a maximum possible sentence of up to twenty (20) years imprisonment and a maximum fine of $250,000, or both, on the mail and wire fraud conspiracy count and up to twenty (20) years imprisonment, a maximum fine of $500,000.00 or twice the value of the property involved in the money laundering, whichever is greater, or both on the money laundering conspiracy. Mr. Simpson also agreed to forfeit all assets obtained directly or indirectly through his criminal activity in that case. In the cocaine conspiracy case, Mr. Simpson faces an additional sentence of a mandatory minimum 10 years to life imprisonment and a maximum fine of $10,000,000.U.S. Attorney Michael Moore said, “Mr. Simpson and Mr. Cole took advantage of victims who needed help the most. These were parents trying to raise children on their own and having to do it without the financial support these children were due from parents who were not living up to their financial obligations. On the one hand, Mr. Simpson and Mr. Cole offered hope to the custodial parents, and then with the other hand, they snatched the money that they were counting on to support their children away from them. While Mr. Simpson was taking money meant for children, he was also involved in putting cocaine on the street. He may have been able to hide his drug stash, but he can’t hide from the law.”
“The actions committed by Mr. Simpson and Mr. Cole are especially troubling, given that ultimately the victims were children. The Governor’s Office of Consumer Protection is pleased to have initiated this investigation more than five years ago and to see these individuals finally brought to justice,” said John D. Sours, Administrator, Georgia Governor’s Office of Consumer Protection.“Those individuals who line their pockets with money gained through deceiving others should know they will not go undetected and will be held accountable," stated Special Agent in Charge, Veronica F. Hyman-Pillot. “IRS Criminal Investigation is committed to ‘following the money trail’ to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice”.
“U.S. Postal Inspectors have protected the sanctity of the U.S. mails for over 200 years. Working closely with our law enforcement partners, we were persistent in our investigative efforts to bring to justice those responsible for victimizing the families in this particular case. The use of U.S. mail to defraud the American public cannot and will not be tolerated,” said Keith A. Fixel, Inspector in Charge, Charlotte Division.
Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division stated, “Drug traffickers who distribute illegal and dangerous drugs are a true menace to society. These crack distributors have now been removed from the streets, largely because of the true spirit of cooperation that exists between all of the law enforcement agencies involved.”
The money and wire fraud and money laundering conspiracy case was investigated by the Internal Revenue Service Criminal Investigations, United States Postal Inspection Service and the Georgia Governor’s Office of Consumer Protection. Assistant United States Attorney Robert D. McCullers is handling that prosecution for the Government. The drug conspiracy case was investigated by the Drug Enforcement Administration and the Georgia Bureau of Investigation. Assistant United States Attorney Leah E. McEwen is handling that prosecution for the Government.For additional information please contact Pamela Lightsey, Public Information Officer, United States Attorney’s Office at (478) 621-2603.
Scott Man Pleads Guilty to Making False Statements in Order to Steal Social Security BenefitsRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that William Joseph Folse, Jr., 51, of Scott, La., pleaded guilty before U.S. Magistrate Judge C. Michael Hill, to making false statements to the Social Security Administration (SSA) concerning his disability status in order to receive nearly $200,000 in fraudulent benefits.
According to evidence presented at the guilty plea, Folse applied for and was granted benefits for total disability in the 1990s for a slip and fall accident. He also signed paperwork acknowledging that he would report his change in job status should he return to work. Investigators later determined that Folse worked at a restaurant in Lafayette since 1998 and earned more than $12,000 per year plus tips. It is estimated that he improperly received $199,007.80 from the SSA.Folse faces a maximum penalty of five years in prison, a $250,000 fine, restitution, and three years of supervised release. A sentencing date of May 16, 2014 was set.
The Social Security Administration conducted the investigation. Assistant U.S. Attorney Howard C. Parker is prosecuting the case.San Francisco Man Sentenced to 40 Months in Prison for FraudRead the Press Release
SAN FRANCISCO – Blessed Marvelous Herve (aka Herve Rodrigue Ndandou, aka Blessed Roll Herve) was sentenced today to 40 months in federal prison after pleading guilty to defrauding two victims out of more than $1.6 million over the course several years, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
Herve pleaded guilty to wire fraud on September 6, 2013. According to the Plea Agreement, Herve admitted to executing a scheme to defraud two victims out of approximately $1.6 million through a series of false statements and promises. Among other false statements, Herve falsely stated that his father was a foreign dignitary and a multibillionaire, and that the United States government had seized millions of dollars belonging to Herve. Herve claimed that he needed money from his victims to prevail in a secret federal case to gain access to these funds, which he would then use to repay his victims.
Herve, 41, of San Francisco, was arrested on April 24, 2013, after a Criminal Complaint was filed against him. He was indicted by a federal grand jury on May 7, 2013. The Indictment charged Herve with one count of wire fraud, in violation of Title 18, United States Code, Section 1343.
The sentence was handed down by the Honorable Charles R. Breyer, United States District Court Judge. Judge Breyer also sentenced the defendant to a three-year period of supervised release following his prison term and ordered him to pay $1,605,926 in restitution to the victims of his fraudulent scheme. Herve has been in custody since his arrest on April 24, 2013.
Hallie Hoffman and Doug Sprague are the Assistant United States Attorneys who are prosecuting the case with the assistance of Muffy Mallory, Rayneisha Booth, and Rawaty Yim. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
(Herve Indictment)
San Diego Lobbyist Makes Initial Appearance for Role in Campaign Finance CrimesRead the Press Release
San Diego, CA – Marco Polo Cortes, a San Diego-based lobbyist, made an initial appearance in federal district court today on charges that he conspired to finance political campaigns using money from an illegal foreign source.
Cortes was arrested by FBI Agents on Tuesday, January 21, 2014 in the Little Italy section of San Diego, pursuant to an arrest warrant. According to the complaint, filed by an FBI Special Agent and unsealed by U.S. Magistrate Judge William V. Gallo, Cortes conspired with Ravneet Singh and Ernesto Encinas—each of whom were named in a similar complaint unsealed yesterday—to funnel more than $500,000 of illegal foreign money into San Diego municipal and federal campaigns, primarily in 2012 and 2013. The source of the illegal foreign money, the complaint stated, was a person referred to as “the Foreign National.”
As set forth in the complaint, Cortes has lobbied San Diego Police Department officials, city council members and mayoral staff. In 2012, Cortes and a coconspirator approached a representative of a person running for federal elective office during the 2012 general election cycle. But one of the candidate’s representatives informed Cortes that the Foreign National would need to at least show proof of a green card, and emailed Cortes a link to the Federal Election Commission’s rules on foreign contributions. Despite this, Cortes and a coconspirator helped the Foreign National contribute in the Straw Donor’s name instead.
Later, Cortes joined together with Singh and other coconspirators to facilitate illegal in-kind contributions to a candidate for the office of mayor during the 2012 general election cycle. Finally, in September 2013, Cortes met with a confidential informant to discuss the possibility of arranging additional contributions from the Foreign National to a candidate for the office of mayor during the 2013 special election.
Acting United States Attorney Cindy M. Cipriani praised the continuing efforts of 3 the FBI and IRS, noting “we will not tolerate fraud in our elections at any level, and we will root out the influence of foreign money in our electoral processes and on our elected leaders.”
Complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
DEFENDANT Case Number:Marco Polo Cortes
14MJ0171 SUMMARY OF CHARGES AND MAXIMUM PENALTIES
Age: 44
San Diego, CACount 1: Conspiracy to Commit Offenses against the United States – 18 U.S.C. § 371.
INVESTIGATING AGENCIES
Maximum penalties: 5 years in prison, 3 years of supervised release, $250,000 fine and a $100 special assessmentFederal Bureau of Investigation
Internal Revenue Service
San Diego Police DepartmentProperty Owner and Maintenance Supervisor Plead Guilty in Albany to Crimes Relating to Illegal Handling and Disposal of AsbestosRead the Press Release
John Mills and Terrance Allen, both of Malone, New York, pleaded guilty yesterday in federal court in Albany, New York, to conspiracy to violate the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) and substantive CERCLA counts in relation to the illegal removal, handling, and disposal of asbestos from properties owned and operated by John Mills, announced Robert G. Dreher, Acting Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice.
Mills and Allen were charged in an 11-count indictment alleging a conspiracy to impede the functions of the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Labor, Occupational Safety and Health Administration, and to violate the Clean Air Act and CERCLA, along with substantive violations of the Clean Air Act and CERCLA. The indictment further charged Mills and Allen with making false statements to law enforcement officers and Mills with retaliating against a witness. CERCLA requires that owners and operators of regulated facilities notify the National Response Center immediately after becoming aware of the release of more than one pound of asbestos into the environment.
Mills and Allen pleaded guilty to one count of conspiracy to violate CERCLA. Mills also pleaded guilty to two counts of knowingly violating CERCLA for failing to immediately report the release of more than a pound of asbestos from properties owned by Mills. In addition to the conspiracy, Allen pleaded guilty to one count of knowingly violating CERCLA.
In open court Tuesday, Mills and Allen admitted that they knowingly failed to report to the National Response Center the release of asbestos, in the form of thermal system insulation, or “pipe wrap,” that had been removed from the basement of buildings owned and operated by John Mills, as soon as they knew of the release. According to the indictment, the defendants illegally removed and disposed of more than 260 linear feet of pipe wrap containing asbestos. The defendants directed an employee to remove the asbestos containing pipe wrap without warning him or giving him adequate personal protective equipment. They transported and caused others to transport that pipe wrap, which was in open bags, in the open bed of a pickup truck.
They further admitted that they conspired together to violate CERCLA. The asbestos pipe wrap was deposited by the defendants in a UHaul-style box truck owned by Mills and a shed maintained by the Malone Department of Public Works in an effort to conceal the material from authorities.
Conspiracy to violate CERCLA carries a maximum penalty of five years in prison and a $250,000 fine. The defendants are scheduled to be sentenced by in Albany on May 12, 2014.
The investigation was conducted by the Environmental Protection Agency Criminal Investigation Division and the New York State Department of Labor Asbestos Control Bureau with assistance from the New York State Department of Environmental Conservation, the Malone Police Department, and the Malone Department of Public Works. The case is being prosecuted by Trial Attorneys Gary N. Donner and Lana N. Pettus, paralegal Puja Moozhikkattu, and litigation support specialist Elga Ozols of the Environmental Crimes Section of the U.S. Department of Justice’s Environment and Natural Resources Division.Pittsford Man Sentenced for Child PornographyRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul Jr. announced today that Michael Mercadel, 21, of Pittsford, N.Y., who was convicted of possessing child pornography, was sentenced to 10 years supervised release by U.S. District Court Judge David G. Larimer. The defendant had been subject to a recommended sentencing guideline range of 97 to 120 months in prison.
Assistant U.S. Attorney Marisa J. Miller, who handled the case, stated that the defendant downloaded and distributed child pornography, via a peer-to-peer file sharing network. Mercadel came to the attention of law enforcement during an undercover FBI investigation during which agents downloaded images of child pornography from the defendant. A search warrant was then executed at the defendant’s home in Pittsford. Agents recovered items of digital media which contained images of children, many of whom were under the age of 12, engaged in sexually explicit conduct, and many of which depicted acts of violence.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The conviction was the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig.Pearland Man Gets Nearly 30 Years for Producing and Distributing Child PornographyRead the Press Release
GALVESTON, Texas – Travis James McReynolds, 32, of Pearland, has received a significant sentence following his two convictions of production and distribution of child pornography, announced United States Attorney Kenneth Magidson. McReynolds pleaded guilty Nov. 7, 2013.
Today, U.S. District Judge Gregg Costa handed McReynolds 351 and 60 months for the production and distribution convictions, respectively. The sentences will run concurrently. At the hearing, the victim’s mother testified about the impact this has had on her daughter and described how McReynolds took her innocence away. In handing down the sentence, Judge Costa took the crimes into consideration and noted how the defendant exploited someone who trusted him. Following completion of his prison term, McReynolds will be on supervised release for the rest of his life and will also be ordered to register as a sex offender.
McReynolds was chatting online with an undercover officer in New Mexico, during which the undercover officer received three images and several videos of child pornography. One of the videos appeared to be a webcam video of a minor female under the age of 13 who is seen lewdly displaying her genitals for the camera and digitally penetrating herself. Still images depicting minor girls displaying their genitals were also emailed to the undercover officer. The officer was able to determine the Internet Service Provider and traced the user to McReynold’s address in Pearland. The undercover officer received from McReynolds a short video clip of what turned out to be a young teen girl that McReynolds had produced himself. Based on this, the undercover officer contacted Galveston area law enforcement with the information.
On Oct. 20, 2012, a state search warrant was executed at the defendant?s apartment in Pearland, at which time two laptop computers were seized which revealed child pornography. Upon questioning, McReynolds admitted to obtaining child pornography by chatting with others over the Internet. Forensic analysis resulted in the discovery of approximately 132 images and 35 videos of child pornography on the two computers.
McReynolds will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.The charges against McReynolds were the result of an investigation conducted by the Galveston and Albuquerque offices of Homeland Security Investigations and the Pearland Police Department as part of the Houston Metro Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Robert Stabe, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Parole Officer Sentenced to Federal Prison for BriberyRead the Press Release
HOUSTON – April Carson, 35, of Houston, has been ordered to federal prison for accepting payoffs from parolees, announced United States Attorney Kenneth Magidson. Carson was employed as a Texas Department of Criminal Justice (TDCJ) parole officer and pleaded guilty Aug. 27, 2013.
Today, U.S. District Judge Lee H. Rosenthal accepted arguments of counsel and a plea for leniency by the defense based on Carson’s lack of criminal record and sentenced Carson to 18 months in federal prison. She will also have to serve a term of three years of supervised release following her release from prison.
Carson was responsible for the supervision of state inmates. As part of her duties, she supervised parolees, their travel between the states as well as their activities to ensure they did not engage in criminal conduct. Carson was found guilty of accepting $2000 from a parolee on Oct. 15, 2012, to allow him to travel while under her supervision.
She was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The operation was a combined public corruption task force effort conducted by the FBI, Texas Rangers, Houston Police Department and TDCJ - Office of Inspector General. The case is being prosecuted by Assistant United States Attorney James McAlister with the assistance of the Harris County District Attorney’s Office.
Oakland Woman Pleaded Guilty for Bringing Illegal Wildlife into the United StatesRead the Press Release
OAKLAND – Patty Chen pleaded guilty in federal court on Friday, January 17, 2014, to False Statement and Lacey Act violations for her involvement in illegally bringing wildlife into the United States from Ecuador, United States Attorney Melinda Haag announced.
In pleading guilty, Chen admitted to bringing wildlife products including shark fins, shark fin noodles, sea horses, dried conch, dried fish and eel maw, valued at $29,760 from Ecuador into the United States. Chen admitted that on each occasion that she illegally brought wildlife into the United States, she falsified the United States Customs Service Declaration by falsely stating that she was not transporting wildlife products into the United States.
Chen, 67 of Oakland, was indicted by a federal Grand Jury on July 25, 2013, in the Southern District of Florida, with two counts of violating the Lacey Act, in violation of 16 U.S.C. § 3372(d)(1), and two counts of violating the False Statement Statute, in violation of 18 U.S.C. § 1001(a)(3). The case was transferred to the Northern District of California on November 22, 2013. Chen pleaded guilty to all counts.
Chen’s sentencing is scheduled for May 9, 2014, before the Honorable Jon S. Tigar, United States District Court Judge in Oakland. The maximum statutory penalty for each count of the Lacey Act, 16 U.S.C. § 3372(d)(1) is 5 years imprisonment, 3 years supervised release, a fine of $250,000, plus restitution; for each count of the False Statement Statute, 18 U.S.C. § 1001(a)(3), is 5 years imprisonment, three years supervised, a $250,000 fine, plus restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Maureen Bessette and Thomas Watts-FitzGerald are the Assistant U.S. Attorneys prosecuting the case with the assistance of Janice Pagsanjan. The prosecution is the result of an investigation by the National Oceanic Atmospheric Administration, Office for Law Enforcement, assisted by Homeland Security Investigations.
(Chen Indictment)
North Tonawanda Man Sentenced for Selling Cocaine and Setting a Car on FireRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that William Hutchins, 37, of North Tonawanda, N.Y., who was convicted of conspiracy to possess with intent to distribute, and to distribute 500 grams or more of cocaine, and maliciously destroying a vehicle by means of a fire, was sentenced to 37 months in prison by U.S. District Judge Richard J. Arcara.
According to Assistant U.S. Attorney Timothy C. Lynch, who handled the case, between January 2009 and July 27, 2009, the defendant conspired with others to distribute cocaine to customers in Niagara and Northern Erie Counties. Hutchins obtained the cocaine and then sold it at, among other places, a restaurant on Niagara Falls Boulevard in Niagara Falls, N.Y. In addition, on May 23, 2008, the defendant poured gasoline in the back seat of a 1998 Mazda and ignited it, causing damage. At the time, the vehicle was used by another person for drug trafficking.
The sentencing is the culmination of an investigation on the part of Special Agents from the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig, the Niagara County Drug Task Force, under the direction of Sheriff James Votour, the Niagara Falls Police Department, under the direction of Chief John Chella and the Amherst Police Department, under the direction of Chief John AskeyNorth Texas Man Sentenced to One Year and One Day in Federal Prison for Preparing and Filing Fraudulent Tax ReturnsRead the Press Release
Defendant to Pay $102,836 in Restitution
DALLAS — Adnan Z. Khan was sentenced this afternoon by U.S. District Judge Jorge A. Solis to 12 months and one day in federal prison and ordered to pay $102,836 in restitution, following his guilty plea in October 2013 to one count of aiding and assisting in the preparation of fraudulent tax returns. Khan was arrested in June 2013 but was later released on bond. According to the order setting conditions for his release, Khan resides in Wylie, Texas. He must surrender to the Bureau of Prisons on February 26, 2014. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the factual resume filed in the case, Khan used his parents’ residence in Dallas to prepare federal tax returns and supporting schedules and forms for clients. However, Khan falsified items on the clients’ returns, without their knowledge, to obtain large tax returns.
For example, according to the factual resume, Khan would falsify Schedule A medical expenses, moving expenses, job expenses, education credits and residential energy credits to increase the tax refunds, and instead of providing clients with a copy of the filed return, he would provide them with another tax return that reflected a smaller refund. On many of the filed returns, Khan listed one of his personal bank accounts and many of the tax refunds were paid to those accounts, and Khan kept a large portion of the refund, without the client’s knowledge. On several returns, Khan changed the taxpayer’s address to his address so that any IRS correspondence would be mailed to him and not the client. The copy of the return Khan provided to the client, however, reflected the client’s correct address.
The case was investigated by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney J. Nicholas Bunch was in charge of the prosecution.
New Haven Man Sentenced to More Than Five Years in Prison for Role in Heroin Trafficking RingRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that NELSON RIOS, also known as “Pito,” 37, of New Haven, was sentenced yesterday by Senior U.S. District Judge Ellen Bree Burns in New Haven to 63 months of imprisonment, followed by five years of supervised release, for his role in a heroin trafficking ring.
According to court documents and statements made in court, RIOS and more than one hundred other individuals were 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. The investigation revealed that RIOS assisted a co-defendant’s heroin trafficking operation by helping to package heroin into bundles for street-level distribution, testing the quality of the heroin and distributing the drug to customers.
RIOS was arrested on May 17, 2012. On August 14, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin. He is currently detained.
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]Mexican National Sentenced to 10 Months for Conspiring to Produce False Identification DocumentsRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Roman
Garcia-Lopez, also known as Romeo Bartalon, 57, a Mexican citizen who formerly lived in
Portland, was sentenced today in U.S. District Court by Judge Nancy Torresen to 10 months imprisonment for conspiring to produce and transfer false Permanent Resident cards and Social
Security cards. Garcia-Lopez pleaded guilty to the charge on September 25, 2013.According to court records, Garcia-Lopez sold false Permanent Resident cards and Social
Security cards to individuals in the Portland area who were in the United States illegally.
Individuals seeking to buy the false documents would provide biographical information, and
Garcia-Lopez would take their photograph with his telephone and forward the picture and the information to another individual who actually created the fraudulent documents. The documents would later arrive in Maine via the U.S. Postal Service from the Atlanta, Georgia area.It was disclosed during the sentencing hearing that Garcia-Lopez was ordered removed from the United States in 1997 but remained in the country. Judge Torresen ordered that after
Garcia-Lopez completes serving his sentence, he is to be turned over to immigration authorities for removal proceedings.The investigation was conducted by U.S. Immigration and Custom Enforcement’s
Homeland Security Investigations.Martinez Man Sentenced to 24 ½ Years for Attempted Online Enticement of A Minor and Destruction of EvidenceRead the Press Release
AUGUSTA, GA – Fawad Shah Syed, 47, of Martinez, Georgia, was sentenced yesterday by United States District Court Judge J. Randal Hall to over 24 years in prison, followed by ten years of supervised release, for the Attempted Online Enticement of a Minor to Engage in Sexual Activity, Destruction of Records in a Federal Investigation, and Attempted Destruction of Records in a Federal Investigation. He was also ordered to pay a $6,000 fine, and will be required to register as a sex offender. Syed had been convicted of those crimes by a federal jury in September 2013.
United States Attorney Edward Tarver said, “The online solicitation of minors for sexual purposes is deplorable, and the U. S. Attorney’s Office aggressively prosecutes individuals, like this defendant, who are involved in such predatory acts towards our children. This defendant committed a serious crime for which lengthy punishment is justified.”
Evidence presented during the trial and sentencing hearing revealed that Syed, posing as a man in his twenties named “Daniel,” engaged in online communications with a person he believed to be a 14-year-old girl who he initiated contact with online. After four days of text messaging and several attempts to meet the girl, Syed showed up at what he believed to be the girl’s residence with condoms and alcohol. He was immediately arrested by law enforcement officers. Shortly thereafter, he contacted his wife from jail, and before telling her what charges he faced, instructed her to delete his email account and remotely wipe his phone. He also asked her to wipe his computer. Mrs. Syed cooperated with law enforcement thereafter, providing an investigator with Syed’s computer and testifying at trial. Syed’s computer was searched, and revealed online texts that Syed had last summer with a 13-year-old girl in the Evans, Georgia area. The Court cited to Syed’s pattern of predatory behavior as one of the many disturbing components of his criminal conduct when imposing the lengthy sentence.
This prosecution was the result of a joint investigation of the Richmond County Sheriff’s Office and the FBI’s Computer Crime Child Exploitation Task Force. This case was brought as part of Project Safe Childhood, which is a nationwide U. S. Department of Justice initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.
Assistant United States Attorney Nancy Greenwood, Deputy Criminal Chief in the Augusta U. S. Attorney’s Branch Office and Project Safe Childhood Coordinator, prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Man Sentenced to 52 Months in Prison for Swindling Churches and Business Owners Nationwide in Advance-Fee Fraud SchemeRead the Press Release
CHICAGO — A man who victimized small businesses and churches nationwide, including three churches in Chicago, in a so-called “advance-fee” fraud scheme, was sentenced today to more than four years in federal prison after being convicted at trial last summer. Prosecutors said that the defendant, JAMAL E. LAWSON, Sr., “fleeced noble church pastors and hard-working businessmen” of more than $225,000 by repeatedly telling lies about his credentials, experience, and ability to obtain loans on their behalf. Over 18 months in 2009 and 2010, Lawson promised more than $650 million in loans to more than 30 victims and never funded a single loan.
Lawson, 44, of Duluth, Ga., and formerly of Dayton, Ohio, was sentenced to 52 months in prison and ordered to pay $227,252 in restitution by U.S. District Judge James Zagel. Lawson, who was convicted of three counts of mail fraud after a trial last August, was ordered to begin serving his sentence on March 31.
“The victim churches lost money obtained from parishioners, wasted their time and efforts dealing with [Lawson], and missed opportunities to pursue funding through other legitimate sources. In addition, the pastors and business owners suffered losses to their reputations and, in some case, suffered extreme hardships,” the government argued at sentencing.
In return for pledging to obtain loans, Lawson collected advance fees from his victims and used the money for personal expenses, such as travel, clothing, food, and cars, instead of securing the loans as he had promised. Additional churches and small businesses victimized by the scheme were located in Georgia, New Jersey, North Carolina, Ohio, Oregon, and Virginia.
As part of the scheme, Lawson offered to provide loans to pastors of churches and owners of small businesses through one of his companies: Evangel Capital Group LLC and Evangel Capital Partners Ltd., Ascendant Capital Partners LLC and Ascendant Commercial Mortgage, and Destiny Capital Group LLC and Destiny Capital Partners Ltd. Lawson advertised low-interest loans to churches and small businesses and, after receiving a loan application, advised the borrowers that his companies had approved loans in amounts ranging from approximately $300,000 to $206 million and that firm closing dates had been set. Lawson knew that he lacked the ability to fund the loans through his companies and he had not secured funding or closing dates from other outside lenders.
Lawson further told the borrowers that, before any loans would be disbursed, they were required to pay certain advance fees, in amounts ranging from approximately $1,250 to $35,000, that would be used to obtain appraisals, loan documents, title reports, and audited financial statements. Lawson directed the borrowers to pay the advance fees by mailing checks or transferring funds to accounts that he controlled.
Lawson told borrowers that he would refund their application fees if they did not receive the loans, knowing that he never intended to provide the actual loans. In Chicago, he defrauded a former west side branch of a Kankakee, Ill., church of $3,950 in fees for a purported $742,000 mortgage loan; a far south side church of $4,000 in fees to provide a mortgage loan of $1,546,000; and another far south side church of $3,950 in fees for a $3,045,000 mortgage loan.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Tony Gómez, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.
The government was represented by Assistant U.S. Attorneys Christopher R. McFadden and Kathryn Malizia.
Man Convicted of New Britain Shooting Sentenced to Prison for Illegally Reentering U.S. After DeportationRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ARMANDO BERMEJO, 27, a citizen of Mexico last residing in New Britain, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport, to four months of imprisonment for illegally reentering the U.S. after he was deported.
According to court documents and statements made in court, BERMEJO has never held legal status in the U.S. In June 2008, he was deported to Mexico after his arrest by the New Britain Police Department and subsequent conviction of possession of marijuana. At the time of his arrest on March 22, 2008, BERMEJO, who had been operating a vehicle without a license and had been drinking, possessed false identification, a “butterfly” knife, brass knuckles, and marijuana.
On March 11, 2009, BERMEJO was encountered by ICE agents in the area of Naco, Ariz., and he was again removed to Mexico.
BERMEJO again illegally entered the U.S. On October 3, 2010, in a residential neighborhood in New Britain, he shot a victim multiple times at point-blank range, causing life threatening injuries. BERMEJO was arrested and, on January 12, 2012, he was sentenced in New Britain Superior Court to eight years of incarceration.
On October 9, 2013, BERMEJO pleaded guilty to one count of illegal reentry of a removed alien. Judge Underhill ordered BERMEJO to serve his four-month federal sentence after he is released from state custody.
This matter was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations. The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Man Arrested on Federal Charges in USPS Shooting Second Suspect Still at LargeRead the Press Release
Boston – One Dorchester man was arrested this morning and another remains a fugitive in connection with the attempted robbery, assault and kidnapping of a U.S. Postal letter carrier that took place just before Christmas. The federal criminal complaint was filed in U.S. District Court in Boston yesterday and was unsealed today.
Maurice Williams Miner-Gittens, 23, and Keyon Taylor, 21, were charged with conspiracy to rob, attempted robbery and kidnapping of a federal employee.
The government is seeking the public’s assistance in locating Keyon Taylor. Anyone with information regarding Taylor’s whereabouts should contact the U.S. Postal Inspectors at 877-876-2455 (option 2). Taylor may be armed and should be considered dangerous; no one should attempt to apprehend him.
Gittens and Taylor were charged in connection with the Dec. 20, 2013 attempted robbery, shooting and kidnapping of a U.S. Postal letter carrier in Dorchester. While the letter carrier was delivering holiday packages, Taylor allegedly jumped into the postal truck and put a pistol to the letter carrier’s head. A scuffle ensued and the letter carrier was shot in the wrist and was subsequently beaten with the pistol and kicked, told to take off his postal uniform and lie face down.
It is alleged that Taylor took the letter carrier’s keys and started to drive the postal truck away. According to the affidavit, the letter carrier, who was bleeding extensively and who feared for his life, escaped by jumping out of the back door of the truck and running away. Taylor drove the truck a short distance further before abandoning it and fleeing on foot, leaving a trail of boot prints in the snow and his blood on a chain link fence from a cut or puncture wound on his hand. The trail of boot prints led through several back yards to a trash or recycling bin, which also had his blood on the handle.
The letter carrier's uniform, cell phone and personal keys were found in the bin.
Gittens, meanwhile, was the renter and driver of a U-Haul van that was used during the attempted robbery, which had the letter carrier’s blood on the outside.The charges were made after an extensive investigation by the U.S. Postal Inspection Service and the Boston Police Department. The Boston Police Department’s crime laboratory also provided exceptional assistance in analyzing forensic evidence within a very short time period.
The defendants each face a maximum sentence of life in prison on the kidnapping charges; five years on the conspiracy charges; and 25 years on the robbery of federal property.
United States Attorney Carmen M. Ortiz; Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service; and Boston Police Commissioner William Evans made the announcement today. The case is being prosecuted by Thomas E. Kanwit of Ortiz’s Major Crimes Unit.
The details contained in the complaint are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Local Bookkeeper/Office Manager Sentenced on $2 Million EmbezzlementRead the Press Release
St. Louis, MO - ELIZABETH BYRNE was sentenced to 41 months in prison for embezzling more than $2 million over the course of about ten years.
According to court documents, between 1997 and February 2013, Elizabeth Earnest, a/k/a Elizabeth Byrne, a/k/a Elizabeth Johnson, worked as an office manager and assistant for various businesses owned by an individual referred to in court documents as Employer. Her duties included managing and paying the Employer's personal bills and attending to the Employer's personal schedule. Earnest admitted with her plea that from 2003 to February 2013, she abused her position of trust to embezzle funds from her Employer and to cover up her embezzlement. Earnest made blank checks signed by the Employer payable to herself instead of paying the Employer's personal expenses. After making the checks payable to herself, she deposited the checks into one of her personal bank accounts and used the funds to pay her personal bills and to send funds to family members. In order to conceal the scheme, Earnest intercepted Employer's monthly bank statements and removed and shredded the incriminating checks that she had made payable to herself. To further cover her tracks, Earnest falsified bookkeeping entries she prepared for the Employer and falsely classified the expenses.
Her scheme was uncovered in February 2013 when she was out of the office for a vacation and someone else was able to receive, open and review the true bank information.
Earnest, St. Louis, MO, pled guilty last July to one felony count of mail fraud and appeared today for sentencing before United States District Judge Jean C. Hamilton. Additionally, as part of her earlier plea, Earnest has agreed to the forfeiture to the government all money and property derived from her illegal activity.
This case was investigated by the United States Postal Inspection Service. Assistant United States Attorney John Bodenhausen handled the case for the U.S.Leichester Man Pleads Guilty to Recruiting A Minor for PrositutionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Jacob Shamp, 23, of Leichester, NY, pleaded guilty to conspiring to recruit an underage girl to commit a commercial sex act before Chief U.S. District Judge Frank P. Geraci. The charge carries a mandatory minimum sentence of 10 years in prison, a maximum of life and a $250,000 fine.
Assistant U.S. Attorney Melissa Marangola, who is handling the case, stated that Shamp and his girlfriend, Ashlee Cook, 24, posted an ad on Backpage.com, advertising a minor victim for prostitution. Law enforcement officers conducted an undercover operation and arranged to meet the girl in Gates, NY. When officers arrived, they took a statement from the minor victim.
Charges are still pending against Ashlee Cook. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation on the part of the Federal Bureau of Investigation, the New York State Police, under the direction of Major Craig Hanesworth, and the Gates Police Department, under the direction of Chief James VanBrederode.
Lawrenceville Tax Return Preparer Sentenced for Filing False Tax ReturnsRead the Press Release
ATLANTA - Roberta L. Allen has been sentenced for filing false tax returns that claimed over $600,000 in fraudulent refunds.
"The millions of honest, hard-working taxpayers who prepare and file their tax returns should be assured that those who evade their civic duty or try to 'game the system' will be investigated by the IRS and, where appropriate, criminally prosecuted," said United States Attorney Sally Quillian Yates.
“IRS does not endorse or recommend tax preparers but we do offer guidelines to help the public choose a reliable tax professional,” stated IRS Criminal Investigation, Special Agent in Charge, Veronica F. Hyman-Pillot, “these guidelines are available on the IRS website (irs.gov). Taxpayers should choose carefully when hiring a tax preparer. As the old saying goes, ‘If it sounds too good to be true, it probably is’.”
According to United States Attorney Yates, the charges and other information presented in court: Allen prepared fraudulent federal income tax returns at a tax preparation business named Refund Now Tax Services from 2009 through 2010. On the tax returns, Allen claimed fictitious capital losses and taxes paid which resulted in her clients receiving fraudulent tax credits. Allen also charged her clients exorbitant fees for preparing the returns. In total, Allen's preparation of false income tax returns resulted in over $600,000 in tax losses to the Department of the Treasury.
Allen, 49, of Lawrenceville, Ga., was sentenced to two years, nine months in prison to be followed by one year of supervised release, 100 hours of community service, and ordered to pay restitution in the amount of $641,421. Allen was convicted on these charges on October 8, 2013 after she pleaded guilty.
This case was investigated by the Internal Revenue Service Criminal Investigation.
Assistant United States Attorney Bernita B. Malloy prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao/gan/.
Lake County Man Indicted in Alleged $3.2 Million Mortgage Fraud Scheme Involving Properties in Chicago’s Englewood CommunityRead the Press Release
CHICAGO — A Lake County man who operated two real estate–related firms was indicted on federal mortgage fraud charges. The defendant, CONRAD ULZ, allegedly engaged in a scheme to fraudulently obtain 13 residential mortgage loans, totaling approximately $3.2 million, from lenders to purchase properties in Chicago’s Englewood neighborhood. The indictment alleges that Ulz paid buyers to purchase the properties and promised them no out-ofpockets costs, and then made false statements to lenders on their behalf. As a result, the lenders incurred losses totaling more than $3.1 million because the amount of the mortgage loans was not fully recovered through subsequent sale or foreclosure.
Ulz, 73, of Libertyville, who operated Citywide Financial Group and Metro Realty Services, was charged with five counts of wire fraud and three counts of making false statements to financial institutions in an indictment that was returned by a federal grand jury yesterday and announced today. The indictment also seeks forfeiture of at least $3.1 million. Ulz will be arraigned on a date to be determined in U.S. District Court.
According to the indictment, between August 2007 and May 2009, Ulz caused buyers to fraudulently obtain 13 mortgage loans from various lenders for properties on South Sangamon, South Carpenter, South Morgan, South May, and South Ada streets, among others, in Englewood on the city’s south side. The alleged fraud involved false representations in documents, including loan applications and HUD-1 settlement statements concerning sales prices and the buyers’ employment, assets, income, and intention to occupy the property.
Ulz allegedly recruited buyers with good credit, promising to pay them for purchasing the properties, and promising that they would not have to pay any of their own money toward the purchases, including down payments and mortgage payments.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government is being represented by Assistant U.S. Attorney Renai Rodney.
Each count of wire fraud affecting a financial institution and making false statements on loan applications carries a maximum penalty of 30 years in prison and a $1 million fine, and restitution is mandatory. The Court may impose an alternate fine totaling twice the loss to any victim or twice the gain to the defendant, whichever is greater. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Justice Department Releases Findings Showing That the Alabama Department of Corrections Fails to Protect Prisoners from Sexual Abuse and Sexual Harassment at the Julia Tutwiler Prison for WomenRead the Press Release
Today the Justice Department’s Civil Rights Division announced its letter of findings determining that prison officials at the Alabama Department of Corrections (ADOC) and the Julia Tutwiler Prison for Women (Tutwiler) violate women prisoners’ constitutional rights by failing to take reasonable steps to protect them from harm due to sexual abuse and sexual harassment caused by correctional staff. Specifically, the Justice Department found that prison officials have long been on notice of the risks to women prisoners and have chosen to ignore them. The findings also included a notice that the investigation will be expanded to examine allegations of additional constitutional violations.
The department found that women prisoners at Tutwiler live in a toxic environment with repeated and open sexual behavior. The conduct to which women are exposed includes: officers forcing women to engage in sexual acts with officers in exchange for basic sanitary supplies; male officers openly watching women shower or use the toilet; a staff facilitated “strip show”; a constant barrage of sexually offensive language; punishment of prisoners who report improper conduct; and encouraging improper sexual contact between prisoners. The sexual abuse and harassment is grossly underreported due to insufficient staffing and supervision, inadequate policies and procedures, a heightened fear of retaliation and an inadequate investigative process.
“Our investigation has revealed serious systemic operational deficiencies at Tutwiler that have exposed women prisoners to harm and serious risk of harm from staff-on-prisoner sexual abuse and sexual harassment,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “These problems have been festering for years, and are well known to Alabama prison officials. Remedying these deficiencies is critical to ensuring constitutionally protected treatment of women prisoners at Tutwiler and will promote public safety.”
The department’s comprehensive investigation involved an in-depth review and analysis of documents, including policies and procedures, incident reports, investigative reports, orientation materials and staff training materials. The department also interviewed prison officials and administrative and security staff, as well as current and former women prisoners.
The expanded investigation will examine allegations of excessive use of force, constitutionally inadequate conditions of confinement, constitutionally inadequate medical and mental health care and discriminatory treatment based on national origin, sexual orientation and gender identity. The department’s decision to expand its investigation of conditions at Tutwiler stemmed from the department’s review of information suggesting that the systemic deficiencies at Tutwiler that facilitated staff sexual misconduct may also lead to constitutionally inadequate conditions of confinement.
“The department stands ready to work with the state of Alabama on solving the problems at Tutwiler,” said U.S. Attorney George L. Beck Jr. for the Middle District of Alabama. “The report has identified a very serious and troubling situation at the facility. Action needs to be taken immediately. I am certain that Commissioner Thomas and the governor’s office will continue to cooperate in eradicating these deplorable conditions.”
The department commends Commissioner Kim Thomas and his staff for the cooperation they have shown, and for their receptivity to concerns raised, and looks forward to continuing to work with ADOC and Tutwiler officials in a collaborative manner on the expanded investigation and to resolve the existing findings expeditiously and under mutually agreeable terms.
For more information on the Civil Rights Division, please visit www.justice.gov/crt
Jury Finds Pill-Mill Doctor Guilty of 51 CountsRead the Press Release
In total, 10 defendants convicted and $2 million forfeited relating to the prosecution of a phony pain clinic in Garden City, Georgia
SAVANNAH, GA – DR. NAJAM AZMAT, 57, of Waycross, Georgia, was found guilty by a federal jury on last week of all charges relating to his role the running of East Health Center, a pill-mill clinic that operated in Garden City in 2011. United States District Court Judge William T. Moore, Jr. presided over AZMAT’s five-day jury trial. AZMAT was found guilty of conspiring to dispense oxycodone and other drugs without legitimate medical purpose, 49 counts of dispensing without legitimate medical purpose, and conspiracy to launder money. He will be sentenced at a future date and faces up to 20 years imprisonment on each count.
According to evidence presented at the trial, AZMAT worked at East Health Center from February 21 to March 18, 2011. During that time, AZMAT wrote prescriptions for 196 patients, 96% of whom received prescriptions for oxycodone, a powerful and highly addictive pain killer. Nearly two-thirds of the patients seen by AZMAT traveled long distances to receive their prescriptions, often coming from Kentucky, Ohio, and Florida. Patients typically paid $300 to be seen by AZMAT or one of the other doctors who worked at East Health Center following AZMAT’s departure on March 18, 2011. During the trial, patients testified that they were addicted to oxycodone and learned of the clinic through aggressive marketing techniques conducted by the clinic organizers at rival pill-mill clinics in Florida. AZMAT was paid $2,000 per day, typically in cash, at the end of each day he worked.
AZMAT had been indicted with five co-defendants. The following pleaded guilty to related offenses before trial:
Sean Michael Clark, age 34, Boca Raton, Florida (Conspiracy)
Adelaida M. Lizama, age 28, Boca Raton, Florida (Conspiracy)
Daniel John Wise, age 35, West Palm Beach, Florida (Conspiracy)
Candace Anne Carreras, age 26, Boca Raton, Florida (Misprision of Felony)
Shelly Lynn Morford, age 31, Fort Lauderdale, Florida (Misprision of Felony)None of these other five defendants, who either organized or worked for the clinic, had any medical education, training or experience aside from having been associated with earlier pill-mill operations in South Florida. The organizers decided to open the clinic in Garden City because of changes in Florida law which restricted non-medical doctors from owning pain clinics. None of the other defendants had any connection to the State of Georgia before opening the clinic.
In addition to the defendants named in the indictment, other targets of the investigation previously pleaded guilty to offenses related to the phony pain clinic operation and are awaiting sentencing. Adelard LeFrancois, III, 44, of Boca Raton, Florida and Francis J. Barbuscia, 37, of Plantation, Florida, entered guilty pleas on August 3, 2012. Each pleaded guilty to conspiring to knowingly and intentionally distribute and dispense, and cause to be distributed and dispensed, quantities of controlled substances, including oxycodone, not for a legitimate medical purpose. Konstantinos Afthinos, 32, of Florida pleaded guilty to misprision of felony on November 5, 2012. On November 7, 2012, Dr. Kenneth Gossett, age 52, of Rome, Georgia, pleaded guilty to conspiring to knowingly and intentionally dispense controlled substances not for a legitimate medical purpose. These defendants have not yet been sentenced. Nuvest LLC, a Florida corporation which financed the startup costs for East Health Center, pleaded guilty to maintaining a drug-involved premises. The corporation, which provided the funds used to launch and operate the clinic, admitted that the clinic was opened for the purpose of dispensing oxycodone, hydrocodone, and other drugs without legitimate medical purpose. As part of a plea agreement, the corporation forfeited the sum of $2,000,000, representing proceeds of unlawful activity laundered by the corporation.
United States Attorney Edward Tarver said, “The United States Attorneys’ Office, in partnership with federal, state, and local investigative agencies, has demonstrated time and again that illegitimate pain clinics such as East Health Center will be shut down, the participants prosecuted, and their money forfeited if they open in our neighborhoods. During the last two years, we have seen a number of pill-mills relocate their unlawful businesses to the State of Georgia. These pill-mills prey upon their so-called ‘patients’ by draining them of time and assets, fueling their drug addictions, and depriving them of legitimate medical treatment. This case sends a strong message to would-be clinic operators that they are not welcome in the Southern District of Georgia and will be prosecuted.”
Harry S. Sommers, Special Agent in Charge of the DEA’s Atlanta Field Division, stated, “The dispensing of addictive prescription pain medication under the guise of a doctor’s care is not about the good of the community or an individual’s specific health needs; it is about greed and those involved in pill-mill activity are in fact drug dealers. This investigation was a success because of the cooperative spirit between all agencies involved.”
Veronica F. Hyman-Pillot, IRS Special Agent in Charge, added, “We are proud to work with our law enforcement partners at the local, county, state, and federal levels, to bring to justice individuals who use their knowledge and power to commit crimes for their own personal gain. IRS Criminal Investigation is committed to ‘following the money trail’ to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice.”
“The conviction of Dr. Najam Azmat is a good example of positive results that occur when state and federal agencies combine efforts in addressing the illegal distribution of narcotics,” said Scott Whitley, Special Agent in Charge of the GBI Southeastern Regional Drug Enforcement Office. “The GBI remains committed to addressing pharmaceutical diversion and other drug crimes in the State of Georgia.”
The investigation of East Health Center resulted from a joint investigation by the Drug Enforcement Administration (DEA), Georgia Bureau of Investigation (GBI), Chatham Savannah Counter Narcotics Team (CNT), the Internal Revenue Service (IRS), and the United States Marshals Service.
Assistant United States Attorneys Karl Knoche, Greg Gilluly, and Jeffrey Buerstatte prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.