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Friday 22 November 2013
Chief Deputy of Bernalillo County Sheriff’s Office Assumes Leadership of Multi-Agency Intelligence Sharing NetworkRead the Press Release
ALBUQUERQUE – Acting U.S. Attorney Steven C. Yarbrough and Bernalillo County Sheriff Dan Houston announced that Jessica A. Tyler, Chief Deputy of the Bernalillo County Sheriff’s Office, has been elected Chairwoman of the Rio Grande Law Enforcement Information Exchange (LInX) Advisory Group. Deputy Chief Tyler replaces Chief Julian Gonzales of the Bernalillo Police Department, who is retiring after 37 years in law enforcement.
Rio Grande LInX is a federal initiative sponsored by the U.S. Attorney’s Office and the Naval Criminal Investigative Service that facilitates electronic sharing of law enforcement information among 41 federal state and local law enforcement agencies in New Mexico and west Texas. The LInX initiative provides participating partner agencies with secure access to regional crime and incident data and the tools needed to process it, enabling investigators to search across jurisdictional boundaries to help solve crimes and resolve suspicious events. There are nine LInX regions, including the Rio Grande LInX, throughout the United States with over 760 partner agencies.
Deputy Chief Tyler is the first woman to hold the rank of Chief Deputy in the Bernalillo County Sheriff’s Office. She began her law enforcement career as a patrol officer with the department in 2000 and was named to her current position earlier this year. In addition to working in the Crimes Against Children Unit, she served as the department’s training coordinator and spent time as a member of the SWAT team as a crisis negotiator. Deputy Chief Tyler also has served as commander of the internal affairs unit, field services division and criminal investigations division during her career with the Bernalillo County Sheriff’s Office.
Acting U.S. Attorney Steven C. Yarbrough praised the selection of Deputy Chief Tyler as the new leader of the Rio Grande LInX Advisory Group and said, “Chief Deputy Tyler has long been a tremendous asset to our law enforcement community. Throughout her distinguished career with the Sheriff’s Office, she has supported numerous local Department of Justice criminal justice initiatives, including Operation Weed and Seed, Project Safe Neighborhoods, and violence reduction training and outreach programs. I am grateful to Sheriff Dan Houston for his support and the nomination of his Chief Deputy to lead the Rio Grande LInX Advisory Group which provides nationwide support to the law enforcement community.”
“It is an honor for the Bernalillo County Sheriff's Office to provide a leader for this important initiative with the appointment of Chief Deputy Tyler,” said Bernalillo County Sheriff Dan Houston. “Her dedication to the profession of law enforcement is evidenced by her level of education as she has a Master’s Degree in Public Administration. I know she will continue to lead this initiative with the same professionalism as her predecessor.”
Cheyenne Man Convicted for Attempted Online Enticement of A MinorRead the Press Release
U.S. Attorney Christopher A. Crofts announced today that Cheyenne resident David Faust has been convicted in federal court. A jury found Faust guilty of attempted online enticement of a minor for sexual purposes after a two-day jury trial in the U.S. District Court in Cheyenne. Faust is scheduled to be sentenced by Federal District Court Judge Johnson on January 30, 2014. The investigation in this case was conducted by the Federal Bureau of Investigation, assisted by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force and Homeland Security Investigations.
Charlotte Jury Finds Former Owner of Mental Health Clinic Guilty of Defrauding Medicaid Using Stolen Identities of Children and CliniciansRead the Press Release
Defendant Submitted Over $700,000 In Fraudulent Reimbursement Claims To Medicaid
CHARLOTTE, N.C. – A federal jury sitting in Charlotte returned a guilty verdict today for a Charlotte man accused of conspiring to defraud Medicaid of at least $700,000, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Calvin Cantrell Estrich, 32, of Charlotte, was convicted following a four-day trial before U.S. District Judge Max O. Cogburn, Jr. Estrich was also found guilty of committing health care fraud, making false statement in connection with a health care program, stealing the identities of children and clinicians to commit the fraud, money laundering and making false statements to investigators.
U.S. Attorney Tompkins is joined in making today’s announcement by Attorney General Roy Cooper, who oversees the North Carolina Medicaid Investigations Division (MID).
“We will not allow the likes of Estrich to use Medicaid or any other taxpayer funded health care program as their personal ATMs,” said U.S. Attorney Tompkins in making today’s announcement of the guilty verdict. “Working together with our state partners we will find and prosecute those who pilfer precious health care resources from patients who need them and use scams to pocket taxpayer dollars.”
“Ripping off Medicaid harms needy patients, wastes tax dollars and contributes to rising health care costs,” North Carolina Attorney General Roy Cooper said. “This conviction sends a strong message that criminals who cheat Medicaid will pay, and it’s a great example of our ongoing partnership to stamp out health care fraud here in North Carolina.”
According to filed court documents and trial proceedings, from October 2009 to November 2010, Estrich and his co-conspirator, Joye Strong, participated in a scheme to defraud Medicaid for medically unnecessary services. Estrich’s company, Everyday’s Blessing, was approved by Medicaid to provide Intensive In-Home Community Intervention Services, which are mental and behavioral services designed to stabilize living arrangements for youth and children and prevent out-of-home therapeutic treatment. Trial evidence showed that Estrich and Strong stole and misused the identities of a nurse practitioner and two therapists in order to complete the necessary paperwork for Medicaid to approve services for Medicaid recipients to receive these services. According to evidence presented at trial, once Medicaid approved Everyday’s Blessing to provide services to these recipients based upon the fraudulent paperwork, Estrich and Strong sought and received payment from Medicaid for the fraudulent services. Evidence presented at trial established that in many instances, the Medicaid recipients did not receive any services at all. For example, evidence presented at trial established that Estrich, aided and abetted by others, used the Medicaid recipient identification number of a juvenile identified as “J.R.” and falsely and fraudulently billed Medicaid for services that J.R. never received. Estrich and Strong, through Everyday’s Blessing, received over $24,000 in payments from Medicaid for these false services.
Evidence presented at trial also showed that Estrich and Strong stole the identity of therapist “J.O.” in order to obtain approval from Medicaid for fraudulent and medically unnecessary services. Trial testimony revealed that J.O. provided her name and credentials to Strong when she sought employment at another company operated by Strong. Thereafter, Estrich and Strong stole and misused J.O.’s identity by forging J.O.’s signature to paperwork for diagnostic and therapeutic services which J.O. did not perform.
According to trial evidence, based on the fraudulent claims Medicaid reimbursed Estrich and Strong $462,178, from which Estrich received $192,000 for his role in the scheme. Trial evidence also showed that when investigators interviewed Estrich about the fraud scheme in December 2012, Estrich made materially false and fraudulent statements to investigators.
Estrich remains free on bond pending sentencing. At sentencing, Estrich faces a maximum term of ten years in prison for the health care fraud conspiracy count and for each of the four counts of health care fraud. Each of the four counts of making false statements in connection with health care matters carries a maximum term of five years in prison. Each of the eight aggravated identity theft counts carries a mandatory prison term of two years. Estrich also faces a maximum of 10 years in prison for the money laundering charge and a maximum of five years in prison for the one count of making false statements to investigators in a federal health care fraud investigation. Each count of conviction carries a maximum fine of $250,000. A sentencing date for Mr. Estrich has not yet been set.
Estrich’s co-conspirator, Joye Strong, pleaded guilty to eight counts of health care fraud and two counts of money laundering on October 4, 2011. Strong is awaiting sentencing on these charges.
The investigation into Estrich and Strong was handled by MID with assistance from the North Carolina Division of Medical Assistance.
The prosecution was handled by Special Assistant United States Attorneys Timothy Rodgers and Laura Lansford of the Western District of North Carolina. Mr. Rodgers is a Special Deputy Assistant Attorney General and Ms. Lansford is an Assistant Attorney General with the North Carolina Department of Justice Medicaid Investigations Division. The SAUSA position is reflection of the partnership between the Medicaid Investigations Division and the United States Attorney that helps ensure the effective and vigorous prosecution of Medicaid fraud.
The investigation and charges are the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil prosecutors, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistle blower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
If you suspect Medicare fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected]. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.
Charges Brought in $7.4 Million Continuing Financial Crimes Enterprise That Targeted Northern Virginia Hispanic CommunityRead the Press Release
ALEXANDRIA, Va. – A twenty-five count superseding indictment was unsealed today charging five defendants—Rosita Vilchez, 39, of Lima, Peru; Armando Pino, 53, of Centerville, Va., currently in Peru; Edgar Vilchez, 38, of Manassas, Va.; Lorene Chittenden, 57, of Centerville, Va.; and Rocio Benavides, 28, of Manassas, Va.—with conspiracy to commit bank fraud and wire fraud affecting a financial institution and operating a continuing financial crimes enterprise. According to the indictment, between August 2005 and August 2007, the conspiracy generated nearly $7.4 million in fraudulent proceeds.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Fred W. Gibson, Acting Inspector General of the Federal Deposit Insurance Corporation, made the announcement.
The indictment alleges that Rosita Vilchez and her brother, Armando Pino, operated a real estate firm (Vilchez & Associates), a title insurance company (Pino Title), and the branch of a loan brokerage business (Mount Vernon Capital Corporation) in Manassas, Va., as a continuing financial crimes enterprise. According to the indictment, the defendants and their co-conspirators submitted fraudulent loan documents that falsified their real estate clients’ income, employment, and assets so that they could obtain loans to buy property through Vilchez & Associates, which received commissions of as much as six percent of the selling price of every home. Many of these transactions involved loans that allegedly were originated fraudulently by Lorene Chittenden, a loan officer who, according to the indictment, received thousands of dollars in loan commissions as a result of the fraud.
The indictment also alleges that the defendants targeted Hispanic clients who were not proficient in spoken or written English and who therefore often were unable to read and were unaware of the false statements made on the loan documents submitted to the lenders on their behalf. According to court filings, the fraudulent loan applications made it possible for the borrowers to qualify for loans they could not afford to repay. Most of these borrowers later lost their homes to foreclosure.
Rosita Vilchez originally was indicted on September 6, 2012, and she remains a fugitive in Peru. On October 31, 2013, the FBI announced a reward of up to $6,000, or up to 15,000 Peruvian soles, for information leading directly to the location and arrest of Rosita Vilchez. Additional information regarding Rosita Vilchez, including a poster with her picture, is available on the FBI’s website at http://www.fbi.gov/wanted/wcc/rosita-vilchez/view.
This case was investigated by the FBI’s Washington Field Office and the FDIC’s Office of Inspector General. Assistant United States Attorney James P. Gillis is prosecuting the case on behalf of the United States.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Charenton Man Pleads Guilty to Assault on Woman and Chitimacha Tribal Police OfficerRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that David Frederick, 38, of Charenton, La., pleaded guilty Wednesday before U.S. District Court Judge Richard T. Haik, to assaulting a woman and a Chitimacha tribal police officer.
According to evidence presented at the guilty plea, on January 27, 2013, Frederick assaulted his girlfriend near her place of employment on Chitimacha tribal lands. After he was arrested and while being booked, Frederick attacked a Chitimacha tribal police officer and attempted to take his handgun. A second officer entered the struggle, and Frederick was subdued after pepper spray and a TASER were deployed. During the investigation, law enforcement agents learned that the defendant also assaulted his girlfriend on January 25, 2013, at her residence on the Chitimacha Tribal Reservation.
Frederick faces 20 years in prison, a $250,000 fine, and three years of supervised release for the assault of the Chitimacha tribal police officer. He also faces a maximum penalty of six months in prison, a $250,000 fine, and one year of supervised release for the assault within Indian Country count.
Jurisdiction in Indian Country is based upon the unique sovereign relationship between the federal government and Indian tribes. Congress has criminalized certain acts that take place in Indian Country, and the U.S. Attorney’s Office is the agency that prosecutes the felony cases where either the defendant or the victim is an Indian or both the defendant and the victim are Indian. The U.S. Attorney’s Office also prosecutes cases involving misdemeanors where the defendant is a non-Indian and the victim is an Indian.
The Federal Bureau of Investigation and Chitimacha Tribal Police Department conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy is prosecuting the case.Bullhead Woman Sentenced for Child AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that Velnita Hairy Chin, age 41, of Bullhead, South Dakota, pled guilty to Child Abuse and was sentenced on November 18, 2013, by U.S. District Judge Charles B. Kornmann.
Hairy Chin was sentenced to 12 months in custody, 1 year of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Hairy Chin was indicted for the above charge by a federal grand jury on December 11, 2012. The conviction stems from an incident occurring between March 30, 2012 and May 20, 2012, in which Hairy Chin neglected the needs of her infant daughter by failing to seek prompt medical attention for her injuries.
The investigation was conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Hairy Chin was immediately turned over to the custody of the U.S. Marshals Service.
Bullhead Man Indicted on Assault ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Bullhead, South Dakota, man has been indicted by a federal grand jury.
Alexander Oka, age 22, was indicted on November 14, 2013, for Assault by Strangulation and Suffocation and Domestic Assault by an Habitual Offender. Oka appeared before U.S. Magistrate Judge William D. Gerdes on November 19, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, an additional 2 years of supervised release upon revocation, and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges are merely accusations, and Oka is presumed innocent until and unless proven guilty.
The Indictment alleges that on August 20, 2013, Oka assaulted his dating partner by strangling and suffocating her.
The investigation is being conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Oka was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Buffalo Woman Sentenced on Drug ChargesRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Tracy D. Anderson, 41, of Buffalo, N.Y., who was convicted of attempting to possess with intent to distribute, and to distribute, cocaine, was sentenced to 30 months in prison by U.S. District Court Judge Richard J, Arcara.
Assistant U.S. Attorneys Timothy C. Lynch and Frank T. Pimintel, who handled the case, stated that on August 8, 2012, the defendant accepted delivery of a package shipped from the U.S. Virgin Islands that she believed contained cocaine. Prior to delivery, the actual cocaine had been seized by law enforcement officers and replaced with something of similar size, shape and weight. After being arrested, Anderson admitted that she agreed to accept delivery of the package in exchange for $200.00.
The sentencing is the culmination of an investigation on the part of the United States Postal Inspection Service, under the direction of Inspector in Charge Kevin Niland of the Boston Division and the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division.Buffalo Man Sentenced for Conspiracy to Commit Money Laundering ChargeRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Montique Shelton, 38, of Buffalo, N.Y., who was convicted of conspiracy to commit money laundering, was sentenced to three years probation by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, stated that Shelton conspired with other individuals who were engaged in drug trafficking, and thereafter purchased real estate in the City of Buffalo in his name using drug proceeds. As a result of the investigation, the property at 341 Hinman Avenue in Buffalo has been forfeited.
The sentencing is 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 Broan P. Boetig.British Actor Sentenced to 25 Years in Federal Prison for Production of Child Pornography over the InternetRead the Press Release
Orlando, Florida – United States District Judge Charlene Edwards Honeywell yesterday sentenced John David Baker (30, resident of Celebration, Florida; citizen of the United Kingdom) to 25 years in prison for using children to produce child pornography over the Internet. He was also ordered to serve a 15-year term of supervised release, following his incarceration, and to register as a sex offender. Baker has been held in the custody of the United States Marshals Service since his arrest on September 7, 2012.
According to court documents, beginning in or about November 2008 through about August 2010, Baker used computers and interactive computer services to engage in online conversations with several minor children. During this period, Baker worked as an actor and helped train and audition adults and children who were attempting to pursue careers in the entertainment business. Baker also served as a talent judge for a talent competition in Florida. In this role, Baker met minor children who were auditioning to obtain work in the art and film industries.
After a complaint by a concerned parent of a child whom Baker had contacted online, Baker was interviewed by law enforcement. Baker acknowledged that he had been confronted by the director of the talent competition about his inappropriate online contact with minors and admitted to sexually-oriented chatting with other minors from the talent competition online. Baker also admitted to having sent or trading sexually- oriented photos of himself or others during chats, and having solicited photos from at least ten children in the talent competition. Baker obtained pornographic images over the Internet of at least one minor female, and used these images to establish a fictitious online personae for himself. Using this false personae, Baker persuaded at least two other minor children to send him, via the Internet, images and videos of themselves engaging in sexually explicit conduct.
During the analysis of Bakers' computer, a forensic examiner located several images and a video of a minor male engaging in sexually explicit conduct.
“Mr. Baker abused his position as a talent judge and acting coach to pursue inappropriate relationships with minors,” said Shane Folden, deputy special agent in charge of Homeland Security Investigations Tampa, which oversees the agency’s Jacksonville office that conducted this investigation. “We urge parents to talk to their children about how to protect themselves from sexual predators, and if they are exploited, they should report it. There are dedicated law enforcement officers and special agents at all levels of government who will do something about it. This case is testament to that. Mr. Baker will spend the next 25 years behind bars due to his actions.”
This case was investigated by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Jacksonville Sheriffs Office, the Orange County Sheriffs Office, the Osceola County Sheriffs Office, and the former Child Predator Cybercrime Unit of the Florida Attorney Generals Office. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Bowie Realtor Sentenced to over 4 Years in Prison in $2 Million Mortgage Fraud SchemeRead the Press Release
Greenbelt, Maryland - U.S. District Judge Peter J. Messitte sentenced Michael Abobor, age 38, of Bowie, Maryland, today to 51 months in prison, followed by five years of supervised release, for wire fraud in connection with a mortgage fraud scheme involving intended losses of at least $2 million. Judge Messitte also entered an order that Abobor forfeit $2,026,205 and pay restitution of $1,832,650.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Inspector General Fred W. Gibson, Jr. of the Federal Deposit Insurance Corporation; Special Agent in Charge Kathy Michalko of the United States Secret Service – Washington Field Office; and Special Agent in Charge Cary A. Rubenstein of the Housing and Urban Development Office of Inspector General - Office of Investigations.
According to his plea agreement, in the Spring and Summer of 2007, Abobor, a licensed realtor, submitted fraudulent loan applications for the purchase of homes in Maryland. Abobor purchased two homes in his own name, and purchased the rest of the homes using the names, and credit, of various friends and family members. Each loan application contained fraudulent information about the borrower’s earnings (including their monthly income and their assets) and employers, of which Abobor had full knowledge. Some of these applications contained fake documents, like doctored W-2s and paystubs; and all of them alleged that the borrower made much more money than he or she really did. Based on these fraudulent application materials, the victim lending institutions funded loans that totaled hundreds of thousands of dollars, resulting in substantial commission payments to Abobor. Eventually, each of these loans fell into default, causing large losses to the victims. Abobor also received large amounts of money that were disguised as “renovation payments” and funded by the mortgagesFor example, on July 25, 2007, Abobor facilitated the purchase of a home in Bowie, and while serving as the buyer’s real estate agent, knowingly submitted a false loan application on the buyer’s behalf. The loan application, among other things, vastly inflated the buyer’s monthly income figures. Relying upon these false representations, the lending institution funded a loan of $375,000. As part of this transaction, Abobor received a commission payment of $5,499, and also received over $37,000 in “renovation” payments.
In all, Abobor arranged at least seven fraudulent real estate transactions, caused more than $2,000,000 in intended losses to victim financial institutions, took in excess of $20,000 in fraudulent real estate commissions, and collected over $270,000 in extra money from the transactions in the form of third party disbursements for renovations that were never completed.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage-Fraud/index.html.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.United States Attorney Rod J. Rosenstein praised the FDIC Office of Inspector General, U.S. Secret Service and the Department of Housing and Urban Development Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Sujit Raman, who prosecuted the case.
Blanchester Man Arrested for Child ExploitationRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Stewart Matthew Kidwell, 36, of Blanchester, Ohio was arrested today on charges that he sought someone online to rape a four-year old family member while he watched, and that he distributed child pornography through a social media website.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Police Chief Jeffrey Blackwell, Hamilton County Sheriff Jim Neil who oversees the Regional Electronics and Computer Investigations Task Force (RECI) and other agencies in the Greater Cincinnati Internet Crimes Against Children Task Force announced the charges today which were unsealed after Kidwell’s arrest.
According to court documents, Kidwell approached a user on a social dating site in October 2013 and said he wanted to see someone rape his four-year old family member. The user reported the exchange to Cincinnati police who referred the case to RECI and the FBI for further investigation.
Investigators worked with the user to continue the conversation. Kidwell sent the investigator sexually explicit photos of the family member and offered to bring the child to a meeting in order to engage in sex.
The two-count complaint charges Kidwell with one count of coercion and enticement of another person to engage in illegal sexual contact with a minor child, a crime punishable by at least ten years and up to life imprisonment, and one count of distribution of child pornography, which is punishable by at least five years and up to 20 years in prison.
Kidwell appeared before U.S. Magistrate Judge Stephanie K. Bowman who ordered him held without bond. The case will be presented to a federal grand jury for possible additional charges.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Stewart commended the investigation by FBI Special Agents, Cincinnati Police officers and investigators with the Greater Cincinnati ICAC as well as Assistant U.S. Attorney Christy Muncy who is representing the United States in this case.
Agencies participating in the Greater Cincinnati ICAC, in addition to the U.S. Attorney’s Office include the FBI, U.S. Marshals Service, U.S. Secret Service, Hamilton County Prosecutor Joe Deters, Hamilton County Sheriff Jim Neil and the police departments in Amberley Village, Blue Ash, Cincinnati, and West Chester.
Charges in a criminal complaint are accusations only. It is the government’s burden to prove the allegations beyond a reasonable doubt.
Blair Chiefstick Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on November 21, 2013, before Chief U.S. District Judge Dana L. Christensen, BLAIR CHIEFSTICK, a 22-year-old resident of Box Elder, was sentenced to a term of:
- ison: 87 months
- ecial Assessment: $100
- pervised Release: 10 years
CHIEFSTICK was sentenced in connection with his guilty plea to aggravated sexual abuse.
In an Offer of Proof filed by Assistant U.S. Attorney Danna R. Jackson, the government stated it would have proved at trial the following:
On September 2, 2012, after a night of huffing gasoline and drinking beer, CHIEFSTICK went to L.C.'s house. L.C.,J.C., and two children were at the home. CHIEFSTICK knocked on J.C.(s door and asked for some beer. CHIEFSTICK then grabbed J.C. by the ankles and drug her to another bedroom. He locked the door, pushed J.C. onto the floor, poured gasoline on J.C., and yelled that they were going to burn and die. CHIEFSTICK then sexually abused J.C.
CHIEFSTICK was arrested the next day. When interviewed, CHIEFSTICK told law enforcement that he knocked on J.C.(s door and asked for beer. He admitted that he pulled J.C. to the master bedroom. CHIEFSTICK recalled an altercation with L.C. and recalled jumping out a window and running away because he did not want to be caught by the police.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that CHIEFSTICK will likely serve all of the time imposed by the court. In the federal system, CHIEFSTICK does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
Arizona Man who Transported Drugs North and Weapons South into Mexico Sentenced to 15 Years in PrisonRead the Press Release
A drug and gun smuggler based in Arizona was sentenced yesterday in U.S. District Court in Seattle to 15 years in prison for his role in a wide ranging international drug conspiracy, announced U.S. Attorney Jenny A. Durkan. RAUL ANCHONDO, 29, was convicted in May 2013, of Conspiracy to Distribute Controlled Substances, Conspiracy to Possess Firearms in Furtherance of Drug Trafficking Crimes & Crimes of Violence, and Possession of Firearms in Furtherance of a Drug Trafficking Crime. Judge Robert S. Lasnik also imposed five years of supervised release as part of the sentence.
“This defendant was personally involved in moving large amounts of heroin and methamphetamine, drug proceeds, and military-style firearms on behalf of a violent drug cartel,” said U.S. Attorney Jenny A. Durkan. “The drugs directly contribute to the cycle of addiction and abuse in Western Washington and the drug proceeds and firearms feed violence and destruction in Mexico.”
ANCHONDO was arrested in March 2012, following a lengthy investigation of the drug trafficking ring. According to records filed in the case, during the investigation, agents seized multiple kilos of heroin, pounds of methamphetamine, and more than a dozen firearms, including military-style assault rifles which were bound for cartel members in Mexico. During the course of the investigation, federal agents were able to interdict a shipment of a dozen weapons to Mexico, preventing high powered firearms from crossing the border. In all, 34 people have been charged in the case. Conspiracy leader Victor Berrelleza-Verduzco was sentenced in September 2013 to 20 years in prison.
According to testimony at trial, ANCHONDO ran a stash house for drugs and bulk cash in Arizona, and later became a courier, bringing multi-pound loads of methamphetamine and kilos of heroin up to Western Washington in hidden compartments of various load vehicles. The compartments would be loaded with cash for the return trip – as much as $100,000 to $300,000 headed back to Mexico. ANCHONDO helped pack and ship the drugs – the packages were wrapped in a distinctive way with the initials of the drug leaders in Mexico responsible for the load noted on the packaging. At the direction of the conspiracy leaders, members of the conspiracy slept with firearms at their sides to protect the drugs and the cash. ANCHONDO also received two high powered weapons for shipment to Mexico, and used other firearms during the course of the conspiracy.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The case was investigated by the ICE’s Homeland Security Investigations, the Bureau of Alcohol, Tobacco and Firearms (ATF), the Drug Enforcement Administration (DEA), the Lake Stevens Police Department, the Snohomish Police Department, Washington State Patrol, the Snohomish Regional Drug Task Force and the Seattle Police Department.
The case is being prosecuted by Assistant United States Attorneys Vince Lombardi and John McNeil.
Albuquerque Man Facing Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Joshua Iben, 21, of Albuquerque, N.M., entered a not guilty plea in federal court this morning on a criminal complaint charging him with distribution, receipt and possession of visual depictions of minors engaged in sexually explicit conduct. Iben will remain in federal custody pending trial.
Iben was arrested yesterday based on an FBI investigation that began in July 2013 and revealed that an IP address subscribed to Iben’s residential address allegedly was being used to share child pornography images. According to the criminal complaint, on Nov. 20, 2013, FBI agents executed a federal search warrant at Iben’s residence and seized computers and computer-related media. A preliminary forensic examination of a laptop computer taken from Iben’s residence revealed that it contains images consistent with child pornography.
If convicted of the charges in the criminal complaint, Iben faces a federal prison term of not less than five years and not more than 20 years. If convicted, Iben also would be required to register as a sex offender. Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.This case was investigated by the Albuquerque office of the FBI and is being prosecuted by Assistant U.S. Attorney Mark T. Baker as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Alabama Sheriff’s Investigator Indicted for Unlawfully Detaining and Assaulting Handcuffed Man at County JailRead the Press Release
The Department of Justice announced today that a federal grand jury in the Middle District of Alabama has returned an indictment against J. Keith McCray, a criminal investigator with the Macon County, Ala., Sheriff’s Office for violating the rights of a man he unlawfully seized and assaulted.
McCray, 41, is charged with two counts of deprivation of rights under color of law and one count of witness tampering. On July 4, 2013, the victim was going door-to-door in McCray’s neighborhood attempting to sell alarm systems. According to the indictment, McCray unlawfully seized the victim using a firearm, and then brought the victim to the county jail. The indictment alleges that at the jail, McCray struck the victim while he was handcuffed, which resulted in bodily injury. The indictment further alleges that McCray engaged in witness tampering when he intimidated the victim and corruptly persuaded him not to file a complaint for the assault.
If convicted, McCray could face a statutory maximum sentence of 10 years in prison and a $250,000 fine for each deprivation-of-rights count. He could face a statutory maximum sentence of 20 years in prison and a $250,000 fine for the witness tampering charge.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
This case is being investigated by the Federal Bureau of Investigation and the Alabama Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Jerusha T. Adams of the Middle District of Alabama and Trial Attorney Chiraag Bains of the department’s Civil Rights Division.
Thursday 21 November 2013
“Biggest Fraud I’ve Ever Seen” Lands Mt. Carmel Accountant in Federal Prison for Ten YearsRead the Press Release
A Mt. Carmel, Ill. tax accountant began serving a10 year sentence in federal prison, on November 21, 2013, Stephen R. Wigginton, announced today. Kevin C. Williams, 53, was sentenced on November 15, 2013, to 120 months (10 years) in prison, to be followed by 3 years of supervised release, and nearly two million dollars in restitution. The sentencing judge ordered Williams to surrender today to begin serving his sentence.
Williams pled guilty on June 5, 2013. In pleading guilty, Williams admitted to having misused his trusted relationship with an elderly Mt. Carmel resident that enabled him to exert influence over the investment and distribution of her income. Williams admitted that he engaged in a lengthy scheme to defraud the victim, by stealing her money while she was alive and forging will and trust documents so that he would stand to inherit more of her money upon her demise.
Testimony at the sentencing hearing established that Williams defrauded a 96-year old victim of nearly $2 million dollars through a series of 476 identified financial transactions over the course of more than 20 years. The sentencing hearing included testimony from an IRS agent who explained how the victim reacted after learning that her once-trusted confidant was actually a con-man. The agent described that the elderly lady sobbed, trembled and said that she wished that she could just die. In a later interview, the victim described Williams’ crime as “the biggest fraud I’ve ever seen, and it happened to me.”
Williams admitted orchestrating the fraud scheme where he transferred the victim’s funds into his personal checking accounts, his personal savings accounts, his business accounts, and to pay his mortgage. Williams provided the victim with phony account statements so that she would believe that her money was safely invested when in truth much of her money had been stolen.
Williams committed money laundering by engaging in a series of financial transactions designed to deceive the victim into believing that she was receiving interest payments from investments when no such investments really existed. Williams misappropriated the victim’s money to buy cashier’s checks, but then later misrepresented those cashier’s checks to be the proceeds of her investments, when in truth and in fact no such investments existed.
According to the terms of the plea, in addition to being ordered to repay the victim $1,719,444, Williams also agreed to pay restitution to the IRS in the amount of $106,438, to a former employer for embezzling $38,547 and to the State of Illinois for fraudulently claiming $16,174 in unemployment benefits.
The investigation was conducted by agents from the Internal Revenue Service / Criminal Investigations, The Illinois Secretary of State Division of Securities, and the US Department of Labor Office of Inspector General. The case was prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
Zander Sentenced to 68 Months in Prison for Fraud, Money Laundering, Tax Charges in Case Involving Scheme to Defraud Paiute TribeRead the Press Release
SALT LAKE CITY - Jeffrey Charles Zander, age 58, a former tribal planner, general counsel and economic development and trust resources director for the Paiute Indian Tribe of Utah, will serve 68 months in federal prison. Zander was convicted of mail and wire fraud, money laundering, and willful failure to file tax returns following a week-long trial in U.S. District Court in March.
U.S. District Judge David Nuffer, who imposed the sentence Wednesday, also ordered Zander to pay $202,543.92 in restitution. Zander will be allowed to self-surrender to begin serving his prison sentence.
Zander was charged with two counts of mail fraud, two counts of wire fraud, one count of money laundering, and three counts of willful failure to file a tax return in a superseding indictment returned in February 2012.
“Prosecuting white collar crime cases is a high priority for our office. This case is particularly egregious because it involves a person in a position of trust with the Paiute Tribe, who diverted funds intended to help the Tribe for his own personal use,” U.S. Attorney David B. Barlow said today.
Zander began working for the Paiute Tribe around October 1998 as its tribal planner. About two years later, he became the Tribe’s economic development director and trust resources director. Around September 2007, Zander convinced the Tribe to hire him as general counsel when, in truth, he did not possess a license to practice law.
Evidence presented at trial showed that beginning in 2005, Zander developed a scheme to divert more than $175,000 for his personal use that had been awarded to the Paiute Tribe through grant proposals the defendant had authored and assisted the tribe in applying for. The grants were awarded for Integrated Resource Management Plans (IRMP), which are long-term plans to balance the use of tribal resources between interests of residents of the reservation and revenue-generating uses of tribal lands. Zander told tribal leaders that he had hired companies in Salt Lake City, Las Vegas, and Provo to act as consultants or facilitators to assist with the creation of the IRMPs. Zander told the tribe that since he would be traveling to work with the consultants or facilitators, he could hand-deliver progress payment checks to the companies.
Evidence at trial showed the companies were bogus – created by the defendant to facilitate the fraud. Zander created fictitious invoices from the companies, submitted them for payment from the Tribe, and then drove to different points between Provo, Utah, and Mesquite, Nevada to deposit the checks into his personal bank accounts. He also drafted quarterly reports for the Bureau of Indian Affairs to show that the money was being spent for facilitators and consultants when, in truth, he had converted grant funds for his own use.
The scheme came to light when a transaction raised a red flag with a bank teller and, at about the same time, tribal leaders started to uncover the defendant’s deceit and misrepresentations. Evidence showed that invoices from all four companies were found on his work computer. Zander was fired from his tribal position and the case was turned over to the FBI.
“This defendant devised a scheme that caused the Paiute Nation to suffer substantial financial losses over a period of many years. I appreciate the IRS Criminal Investigation Division, the FBI special agents, and the United States Attorney’s Office for their dedicated work on this case. I believe this investigation highlights law enforcement’s ongoing commitment to investigating and prosecuting criminal activity on Native American lands in Utah,” Mary F. Rook, Special Agent in Charge of the FBI in Salt Lake City said today.
“This serves as a strong message to those in positions of trust who put greed over duty. All income is reportable including amounts you unlawfully obtain from others. Don't think using bogus entities and shell companies is going to conceal your activities from an agency with over 93 years of refining the art of following the money. Such acts will only serve to incriminate you more,” Paul Camacho, Special Agent in Charge of IRS Criminal Investigation, said.
The case was prosecuted by the U.S. Attorney’s Office in Salt Lake City and investigated by special agents of the FBI and the IRS Criminal Investigation Division.
Wounded Knee Man Sentenced for Assaulting A Woman with A BatRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wounded Knee, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on November 15, 2013, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Lyle Sutton, Jr., age 27, was sentenced to 36 months of imprisonment, 3 years of supervised release, a $100 special assessment to the Federal Crime Victims Fund, and restitution.
Sutton was indicted for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury by a federal grand jury on February 20, 2013. The charges stemmed from an incident that occurred at Wounded Knee on December 28, 2012. Sutton struck a woman with a wooden bat, causing nasal and cheek fractures and severe bruising to her back. Sutton pled guilty to Assault with a Dangerous Weapon on May 3, 2013.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Wayne Venhuizen prosecuted the case.
Sutton was immediately turned over to the custody of the U.S. Marshals Service.
Wounded Knee Man Sentenced for Assaulting A Woman with A BatRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wounded Knee, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on November 15, 2013, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Lyle Sutton, Jr., age 27, was sentenced to 36 months of imprisonment, 3 years of supervised release, a $100 special assessment to the Federal Crime Victims Fund, and restitution.
Sutton was indicted for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury by a federal grand jury on February 20, 2013. The charges stemmed from an incident that occurred at Wounded Knee on December 28, 2012. Sutton struck a woman with a wooden bat, causing nasal and cheek fractures and severe bruising to her back. Sutton pled guilty to Assault with a Dangerous Weapon on May 3, 2013.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Wayne Venhuizen prosecuted the case.
Sutton was immediately turned over to the custody of the U.S. Marshals Service.
Wood River Man Sentenced to 10 Years in Prison for Distribution and Possession of Child PornographyRead the Press Release
Charlie M. Jarrett, 71, of Wood River, Illinois, was sentenced on November 20, 2013, in the United States District Court to 10 years in prison for Distribution and Possession of Child Pornography, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Jarrett was also ordered to pay $10,000 in restitution to the victims of his offenses, a $200 special assessment, and a fine in the amount of $17,500. Following his prison sentence, Jarrett will be on federal supervised release for life and will also be required to register as a sex offender for the remainder of his life.
Court documents establish that in February 2012, during an undercover Internet investigation, agents from the Federal Bureau of Investigation determined that Jarrett was distributing child pornography using a peer-to-peer file sharing network. Agents obtained and executed a search warrant for Jarrett’s residence during which they seized Jarrett’s computer, 25 CD and DVD’s as well as a binder which contained over 200 images of child pornography. Jarrett was interviewed and admitted that he had been downloading child pornography from the internet for approximately 8 years and that he had distributed the images and videos containing child pornography to other individuals. During a forensic examination of Jarrett’s computer, agents recovered 2638 image files and 60 videos containing child pornography.
In pronouncing the sentence, the United States District Judge took note of the shocking content of the images distributed by Jarrett. “The Court just simply cannot get past the images that have been passed around between men,” he remarked. “This is a serious crime. And I hope that in this case that the word gets out . . . because we want them to pause. We want them to stop. And maybe just think that what I’m doing here even though it is at some level gratifying to me can cause me a lot of pain.” Were it not for Jarrett’s advanced age, the Judge noted that Jarrett would have been sentenced to more prison time.
“People need to know that there are men out there, like Mr. Jarrett and many others whom we have prosecuted, who join on-line worldwide secret networks to view, distribute and exchange some of the most shocking and sickening videos and photographs of children, toddlers and infants being raped. In this case our investigation found images and videos of adult males sexually penetrating infants and toddlers as well as toddlers forced to perform sexual acts on adults. Some of the images and videos included bondage and sadistic attacks on children.” said United States Attorney Wigginton. “The general public needs to know that more often than not the phrase ‘child pornography’ really means ‘child rape caught on tape.’ There are groups of adults who are interested in infant pornography, there are other groups of adults interested in toddler pornography, and there are many who are interested in prepubescent pornography. Terms like shocking, appalling, and sickening simply do not accurately describe what we see in these horrific cases.”
This case is part of Project Safe Childhood, a nationwide initiative launched in 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.”
The investigation was conducted by the Federal Bureau of Investigation’s Metro East Cyber Crimes and Analysis Task Force. The case was prosecuted by Assistant United States Attorney Ali Summers.
Wasilla Resident charged with possessing unregistered silencerRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Wasilla resident was charged with the illegal possession of an unregistered silencer.
Wasilla resident, James C. Riggs, 58, was charged by the federal grand jury with illegally possessing an unregistered .22 caliber silencer. In a separate matter, Riggs and three other South-central Alaska men were also charged by the United States Attorney with a violation of the Lacey Act and other crimes in connection with the take and possession of two bull Moose which were illegally taken within Denali National Park in September 2012.
According to Assistant U.S. Attorney Steven Skrocki, who presented the case to the grand jury, the silencer was discovered in Riggs’ home while it was being searched in connection with the Denali moose hunt in September 2012.
Ms. Loeffler commends the National Park Service, the United States Fish and Wildlife Service, the Bureau of Land Management and the Bureau of Alcohol, Tobacco and Firearms and Explosives for their work in the investigation of this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Violent Felon Sentenced to 96-Months for Illegally Possessing A Firearm AgainRead the Press Release
Jeremy Crawford, a 32-year old Venice, Illinois resident, was sentenced today in United States District Court to 96-months in federal prison for illegally possessing a firearm, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
According to court documents, on September 19, 2012, officers with the Venice, Illinois, Police Department noticed that the driver of a black Chevy Silverado, later identified as Jeremy Crawford, was not wearing his seat belt. The officers got behind the truck and attempted to affect a traffic stop. Crawford would not pull over, and when he did, he tried to take off again. A third Venice PD officer arrived at the scene and parked Crawford in, preventing his vehicle from leaving. One officer opened the car door and instructed Crawford to get on the ground. Crawford refused, so he was forced out of the car and onto the ground, where he was handcuffed. The officers then placed Crawford in the back of the patrol car. Another officer checked the Chevy Silverado visually for other passengers and noticed a silver 9mm pistol under the driver’s seat. The officer observed that the gun was loaded with one in the chamber. While waiting in the patrol car, Crawford rolled down the rear passenger window of the patrol unit, climbed out of the window, and attempted to flee. The officers noticed Crawford’s actions and ran over to him. Crawford began kicking the officers. He was returned to the patrol car and arrested on an outstanding warrant.
Noting that Crawford’s criminal actions have “contributed to the atmosphere of fear” experienced in this district and that Crawford is a “danger to law enforcement,” the federal judge imposed a sentence above the recommended range of 57 to 71 months imprisonment. There is no parole in the federal prison system. In addition to the prison sentence, Crawford must also serve 3 years of supervised release and pay a $750 fine. United States Attorney Wigginton noted, “My office remains committed to prosecuting the district’s most violent criminals, especially those who illegally arm themselves with firearms and use them. As the Court recognized, Jeremy Crawford is an exceptionally dangerous and violent man. He’s a danger not just to the community, but also to law enforcement. A sentence like this sends a strong, clear message: stop the violence or pay the price.”
The Venice Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated this case. Assistant United States Attorney Monica A. Stump prosecuted the offense.
Vermont Lake Monsters Take Steps to Comply with the Americans with Disabilities ActRead the Press Release
The United States Attorney’s Office for the District of Vermont announces that the Vermont Lake Monsters have completed specific modifications at Centennial Field to improve accessibility as described in Title III of the Americans with Disabilities Act (“ADA”). Title III of the ADA prohibits a public accommodation from denying an individual or a class of individuals, on the basis of a disability, the opportunity to participate in or benefit from the goods, services, facilities, or accommodations of an entity. Title III requires a public accommodation to remove architectural barriers to access in existing facilities where it is readily achievable to do so. The United States Attorney’s Office’s investigation began following a complaint regarding accessibility at Lake Monsters’ home games played at Centennial Field.
In particular, the United States Attorney’s Office investigated ADA compliance issues related to the Centennial Field’s parking lot, access route, and seating arrangement. The Lake Monsters have completed improvements to Centennial Field making all three of these areas more accessible under the ADA.
Assistant United States Attorney Nikolas P. Kerest, with assistance from the Disability Rights Section of the Civil Rights Division of the Department of Justice, handled this matter on behalf of the United States and is working with other Vermont businesses to resolve their ADA compliance issues. Further information on the ADA and its requirements may be found at www.ada.gov.
Vantage Oncology LLC to Pay More Than $2.08 Million for <br /> False Medicare Claims for Radiation Oncology ServicesRead the Press Release
Vantage Oncology LLC (Vantage) has agreed to pay the government more than $2.08 million to settle allegations that it submitted false claims to Medicare for radiation oncology services performed at its Illinois centers from 2007 through June 2012, the Justice Department announced today. Vantage owns and manages radiation oncology centers in multiple states, including two centers in Spring Valley and Streator, Ill.
“Billing Medicare for patient care that is not necessary or appropriate contributes to the soaring costs of health care,” said Assistant Attorney General for the Civil Division Stuart F. Delery. “The Department of Justice is committed to protecting public funds and guarding against abuse of the Medicare system.”The government alleged that Vantage double billed and overbilled Medicare for certain procedures, billed for services that lacked supporting documentation and improperly billed for radiation treatment provided to patients without proper physician supervision.
“Our office remains committed to ensuring appropriate patient care and protecting the integrity of government insurance programs,” said U.S. Attorney for the Southern District of Ohio C arter M. Stewart .
“Cheating taxpayers by double billing, overbilling and wrongly billing for services without required medical oversight will not be tolerated,” said Special Agent in Charge with the Office of Inspector General of the U.S. Department of Health and Human Services Lamont Pugh III. “The Office of Inspector General is committed to identifying, investigating and holding accountable those who improperly profit at the expense of the Medicare program.”This settlement resolves a lawsuit filed by former Vantage employee Suleiman Refaei under the qui tam, or whistleblower, provisions of the False Claims Act. The Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. Refaei will receive $354,450.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $16.7 billion through False Claims Act cases, with more than $11.9 billion of that amount recovered in cases involving fraud against federal health care programs.
The investigation was jointly handled by the U.S. Attorney’s Office for the Southern District of Ohio; the Justice Department’s Civil Division, Commercial Litigation Branch and the Department of Health and Human Services Office of the Inspector General.
The case is captioned United States ex rel. Suleiman Refaei v. Vantage Oncology, et al., Case No. 1:10-cv-833 (S.D. Ohio). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
United States V. Lacey Jane Hollinger and Elaine Monique Zavala-CharresRead the Press Release
Indictment Filed In Scheme to Defraud The IRS
SYRACUSE, NEW YORK – United States Attorney Richard S. Hartunian announced today that an Indictment was filed in United States District Court for the Northern District of New York charging Lacey Jane Hollinger, 27, of Massena, New York and Elaine Monique Zavala-Charres, 33, of Phoenix, Arizona with seven (7) counts of operating a mail fraud scheme to defraud the Internal Revenue Service and two (2) counts aggravated identity theft. The mail fraud charges carry a maximum sentence of up to twenty (20) years imprisonment, a period of supervised release and a fine of up to $250,000.00. The aggravated identity theft charges carry a sentence of two years imprisonment.
The indictment alleges that Hollinger and Zavala-Charres operated the scheme to defraud the IRS from January 2012 to May 2013 in St. Lawrence County, New York and elsewhere. The scheme involved using personal identification information acquired through fraud used to file tax returns with false income levels to generate fraudulent refunds. The scheme involved the submission of over $500,000.00 in fraudulent tax returns to IRS in tax years 2011 and 2012, primarily in New York and Arizona.
The case was investigated by IRS Criminal Investigations, Syracuse, New York Office.
The charges in the indictment are mere allegations and the defendants are presumed innocent until and unless proven guilty in a court of law.
Two men indicted for conspiracy to distribute methamphetamine and heroinRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that two men have been indicted by a federal grand jury on charges that they conspired to distribute large quantities of methamphetamine and heroin.
Branden Lee Anastasio, 24, of Anchorage, Alaska, and Ernie Benny Juarez, Jr., 34, of Stockton, California, were named in both counts of the two-count indictment. The first count charges Anastasio and Juarez with conspiring to distribute and to possess with the intent to distribute 50 grams or more of actual methamphetamine and 100 grams or more of heroin. The second charges both men with actually possessing the narcotics with the intent to distribute them to others.
Assistant U.S. Attorney Stephanie Courter, who presented the case to the grand jury, indicated that both men face a ten-year mandatory minimum sentence on the methamphetamine charges, with a maximum sentence of up to life in prison. The law also provides for a fine of up to $10 million dollars. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history of the defendant.The United States Postal Inspection Service led the investigation that resulted in the indictment in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Two New York Doctors Admit Taking Bribes in Test-Referrals Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – Two doctors with a practice in New York admitted today to accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, N.J., its president and numerous associates, New Jersey U.S. Attorney Paul J. Fishman announced.
Richard Goldberg, 60, of Weston, Conn., and Gary Leeds, 60, of Greenwich, Conn., each pleaded guilty today before U.S. District Judge Stanley R. Chesler in Newark federal court to one count of accepting bribes.
Including Goldberg and Leeds, 20 people have now pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies.
According to documents filed in this and related cases and statements made in court:
During today’s guilty plea proceedings, Goldberg and Leeds admitted to accepting thousands of dollars per month in cash between September 2010 and April 2013 in return for referring patient blood specimens to BLS. The pair acknowledged they each accepted more than $100,000 in cash from BLS in exchange for referring at least a combined $1.8 million in lab business from their joint practice, Family Medical Group of Manhattan.
As part of their guilty pleas, Goldberg and Leeds each agreed to forfeit $108,000.
On April 9, 2013, federal agents arrested David Nicoll, 39, of Mountain Lakes, N.J., Scott Nicoll, 33, of Wayne, N.J., a senior BLS employee and David Nicoll’s brother, and Craig Nordman, 35, of Whippany, N.J., a BLS employee and the CEO of Advantech Sales LLC – one of several entities used by BLS to make illegal payments. They were charged by federal complaint with the bribery conspiracy, along with the BLS company and Frank Santangelo, 44, of Boonton, N.J. In June 2013, David and Scott Nicoll, Nordman and four other associates of BLS pleaded guilty to charges related to their involvement. Santangelo, a doctor, pleaded guilty in August 2013 to charges relating to his role in the scheme.
So far, 11 employees or associates of BLS, and 9 physicians have pleaded guilty to their roles in the bribery scheme. The investigation has recovered more than $6.5 million to date through forfeiture.
The bribery count to which Goldberg and Leeds pleaded guilty is punishable by a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing for both defendants is scheduled for April 1, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Thomas O’Donnell; IRS–Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Joseph Minish, Senior Litigation Counsel Andrew Leven and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $500 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
13-445Defense counsel:
Richard Goldberg: Aidan P. O’Connor Esq., Hackensack, N.J.
Gary Leeds: E. Scott Morvillo Esq., New YorkGoldberg, Richard Information
Leeds, Gary InformationTwo Men Who Operated Credit Card Fraud Rings Based in San Gabriel Valley Sentenced to Federal PrisonRead the Press Release
LOS ANGELES – A San Gabriel Valley man involved in credit card fraud was sentenced this morning to 87 months in federal prison for heading a credit card fraud ring that used stolen credit card numbers from around the world to buy hundreds of thousands of dollars of luxury goods, cosmetics, electronics and other merchandise at retail stores.
With the 7¼-year sentence, Zhanghang Wu (吳章航) becomes the second man this month sentenced to prison in federal court in Los Angeles for operating a fraudulent credit card ring.
Wu, 38, who at the time of the offenses was residing in Alhambra, was sentenced by United States District Judge John A. Kronstadt. Wu, who was also known as "Leo Han," pleaded guilty in December 2012 to conspiracy and credit card fraud.
The second credit card scammer, Xiaoliang Chen (陳曉亮), 27, of Monterey Park, was sentenced on November 4 to 51 months in federal prison for leading a similar operation that used stolen credit card numbers and counterfeit cards to bilk financial institutions from around the world.
The operations involving Wu and Chen involved losses that are estimated to be approximately $1.5 million, with Wu being responsible for just over $1 million of those losses.
Wu and Chen each led rings that received credit card numbers that had been stolen from bank customers around the world. That stolen information was used to manufacture counterfeit credit cards that bore the names of “runners” -- co-conspirators who went to retails stores, including Nordstrom, Macy’s, Apple, and Abercrombie & Fitch -- who used the fake cards to make fraudulent transactions. After the runners purchased items with the counterfeit credit cards, they either returned the goods for credit, or the goods were sold to other parties.
An investigation into fraudulent credit card use in the San Gabriel Valley led by the United States Secret Service generated information that Wu and Chen may be involved in organized fraud rings. Wu had earlier been associated with a credit card fraud operation that had been uncovered during an investigation by Chinese authorities. In March 2012, Secret Service agents searched the homes of Wu and Chen, where they discovered machines for making credit cards and computers containing credit card information.
In July 2012, Secret Service agents arrested Wu in Las Vegas, Nevada, where he had fled after the search of his residence and where he continued to engage in credit card fraud. Wu had been living in casino hotels for several weeks, and at the time of his arrest was in the process of sending a group of runners to Chicago to continue the scheme.
Chen was arrested in August 2012, also in Las Vegas, by Secret Service agents.
During the course of the investigation, the Secret Service received information from the Chinese Ministry of Public Security, Economic Crimes Investigation Division, about their investigation of credit card fraud in China.
Joseph Beaty, the special agent in charge of the United States Secret Service, Los Angeles District, acknowledged the cooperation provided by the Chinese Ministry of Public Security and the People’s Republic of China. Without the assistance of the Chinese authorities, the complete investigation and prosecution of this case would not have been possible, Beaty said.
This case is the product of an investigation by the U.S. Secret Service, which also received assistance from the United States Postal Inspection Service.
Release No. 13-133a
Two Louisville Men Charged in String of Armed Robberies Federal Charges Result from “Project Recoil”Read the Press Release
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LOUISVILLE, Ky. – David J. Hale, United States Attorney for the Western District of Kentucky, announced the federal indictment this week, of two Louisville men, one a convicted felon, charged with robbing nine businesses located in Jefferson County, Kentucky. These federal charges stem from “Project Recoil,” the on-going partnership of multiple Jefferson County, Kentucky law enforcement agencies, developed by U.S. Attorney Hale, Jefferson County Commonwealth’s Attorney Tom Wine, Jefferson County Attorney Mike O’Connell, LMPD Chief Steve Conrad, ATF Special Agent in Charge Stuart Lowrey, FBI Special Agent in Charge Perrye Turner, and United States Marshal James Clark to maximize penalties for the most violent offenders and to reduce violent crime in our community.
The eighteen-count indictment charges Xavier Demetrius Porter, age 39, with nine counts of obstructing interstate commerce through robbery, eight counts of brandishing a firearm during a robbery, and one count of being a felon in possession of a firearm. Dmitry Kontarovich, age 31, is charged with three counts of obstructing interstate commerce through aiding and abetting a robbery.
Porter is charged with robbing Spinelli’s Pizza located at 2905 Goose Creek Road on March 5, 2013, the Subway located at 3503 South Hurstbourne Parkway on March 7, 2013, the Subway located at 8056 New LaGrange Road on March 17, 2013, Circle K located at 4600 Wattbourne Lane on April 15, 2013, the White Castle located at 3705 Bardstown Road on April 16, 2013, and the Thornton’s located at 3909 Taylorsville Road on April 17, 2013. Porter and Kontarovich are charged with robbing the Subway located at 4214 Bishop Lane on April 17, 2013, JC’s Cigarette Outlet located at 6620 Six Mile Lane on April 18, 2013, and Adam and Eve Store located at 3862 South Hurstbourne Parkway on April 18, 2013. The federal robbery charges are brought pursuant to the Hobb’s Act, which criminalizes robberies that affect interstate commerce.
According to court records, on May 30, 1996, Porter was convicted of three counts of armed robbery in Dougherty County Superior Court located in Georgia.
If convicted at trial, Porter faces a mandatory minimum sentence of 197 years in prison and a maximum potential penalty of life in prison, a fine of $4,5000,000 and up to and including a life term of supervised release. Kontarovich faces a maximum potential penalty of 60 years in prison, a fine of $750,000 and a period of supervised release.
This case is being prosecuted by Assistant United States Attorney Jo E. Lawless and is being investigated by the Louisville Metro Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.Two Executives Indicted for Roles in Fixing Prices<br /> on Automobile Parts Sold to Toyota<br /> to Be Installed in U.S. CarsRead the Press Release
A Cleveland federal grand jury returned an indictment against two executives of a Japanese automotive supplier for their roles in an international conspiracy to fix prices of automotive anti-vibration rubber parts sold to Toyota and installed in U.S. cars, the Department of Justice announced today.
The indictment, filed yesterday in U.S. District Court for the Northern District of Ohio in Toledo, charges Masao Hayashi and Kenya Nonoyama, both Japanese nationals, with participating in a conspiracy to suppress and eliminate competition in the automotive parts industry by agreeing to allocate the supply of, to rig bids for and to fix, raise and maintain the prices of anti-vibration rubber parts sold to Toyota Motor Corp., Toyota Motor Engineering & Manufacturing North America Inc. and affiliated companies (collectively Toyota) for installation in automobiles manufactured and sold in the United States and elsewhere.
Automotive anti-vibration rubber products are comprised primarily of rubber and metal, and include engine mounts and suspension bushings. They are installed in automobiles for the purpose of reducing road and engine vibration.
The indictment alleges, among other things, that from as early as March 1996 until at least December 2008, Hayashi and Nonoyama and their co-conspirators conducted meetings and communications in Japan to reach collusive agreements. The indictment alleges that the conspiracy involved agreements affecting the Toyota Corolla, Avalon, Tacoma, Camry, Tundra, Sequoia, Rav4, Sienna, Venza and Highlander.
“Today’s indictment reaffirms the Antitrust Division’s commitment to hold executives accountable for actions that corrupt the competitive landscape and harm consumers,” said Renata B. Hesse, Deputy Assistant Attorney General for the Department of Justice’s Antitrust Division. “The Antitrust Division continues to work closely with its fellow competition enforcers abroad to ensure that there are no safe harbors for executives who engage in international cartel crimes.”
Hayashi and Nonoyama are charged with a violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Including Hayashi and Nonoyama, 21 companies and 26 executives have been charged in the Justice Department’s ongoing investigation into the automotive parts industry. To date, more than $1.6 billion in criminal fines have been obtained and seventeen of the charged executives have been sentenced to serve time in U.S. prisons or have entered into plea agreements calling for significant prison sentences.
The charges are the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charges were brought by the Antitrust Division’s Chicago Office and the FBI’s Cleveland Field Office, with the assistance of the FBI headquarters’ International Corruption Unit and the U.S. Attorney’s Office for the Northern District of Ohio. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at (888) 647–3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Cleveland Field Office at (216) 522-1400.Two Executives Indicted for Roles in Fixing Prices on Auto Parts Sold to ToyotaRead the Press Release
A Cleveland federal grand jury returned an indictment against two executives of a Japanese automotive supplier for their roles in an international conspiracy to fix prices of automotive anti-vibration rubber parts sold to Toyota and installed in U.S. cars, the Department of Justice announced today.
The indictment, filed yesterday in U.S. District Court for the Northern District of Ohio in Toledo, charges Masao Hayashi and Kenya Nonoyama, both Japanese nationals, with participating in a conspiracy to suppress and eliminate competition in the automotive parts industry by agreeing to allocate the supply of, to rig bids for and to fix, raise and maintain the prices of anti-vibration rubber parts sold to Toyota Motor Corp., Toyota Motor Engineering & Manufacturing North America Inc. and affiliated companies (collectively Toyota) for installation in automobiles manufactured and sold in the United States and elsewhere.
Automotive anti-vibration rubber products are comprised primarily of rubber and metal, and include engine mounts and suspension bushings. They are installed in automobiles for the purpose of reducing road and engine vibration.
The indictment alleges, among other things, that from as early as March 1996 until at least December 2008, Hayashi and Nonoyama and their co-conspirators conducted meetings and communications in Japan to reach collusive agreements. The indictment alleges that the conspiracy involved agreements affecting the Toyota Corolla, Avalon, Tacoma, Camry, Tundra, Sequoia, Rav4, Sienna, Venza and Highlander.
“Today’s indictment reaffirms the Antitrust Division’s commitment to hold executives accountable for actions that corrupt the competitive landscape and harm consumers,” said Renata B. Hesse, Deputy Assistant Attorney General for the Department of Justice’s Antitrust Division. “The Antitrust Division continues to work closely with its fellow competition enforcers abroad to ensure that there are no safe harbors for executives who engage in international cartel crimes.”
Hayashi and Nonoyama are charged with a violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Including Hayashi and Nonoyama, 21 companies and 26 executives have been charged in the Justice Department’s ongoing investigation into the automotive parts industry. To date, more than $1.6 billion in criminal fines have been obtained and seventeen of the charged executives have been sentenced to serve time in U.S. prisons or have entered into plea agreements calling for significant prison sentences.
The charges are the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charges were brought by the Antitrust Division’s Chicago Office and the FBI’s Cleveland Field Office, with the assistance of the FBI headquarters’ International Corruption Unit and the U.S. Attorney’s Office for the Northern District of Ohio. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at (888) 647–3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Cleveland Field Office at (216) 522-1400.
Two Defendants Admit Roles in $65 Million Stolen Identity Income Tax Refund Fraud SchemeRead the Press Release
NEWARK, N.J. – Two defendants have admitted their roles in one of the nation’s largest and longest running stolen identity refund fraud schemes ever identified, U.S. Attorney Paul J. Fishman announced today.
The scheme caused more than 8,000 fraudulent U.S. income tax returns to be filed, which sought more than $65 million in tax refunds, and which resulted in the losses to the United States of more than $12 million.
Michael Senatore, 43, of Moscow, Pa., and David Pinski, 75, of Fort Lee, N.J., both pleaded guilty before U.S. District Judge Claire C. Cecchi to informations charging them with conspiracy to defraud the United States and theft of government property. Senatore entered his plea today, Pinkski entered his plea Nov. 20, 2013.
The conspiracy count is punishable by a maximum potential penalty of five years in prison and up to a $250,000 fine. The substantive count of theft of government property carries a maximum potential penalty of 10 years in prison and up to a $250,000 fine.
According to documents filed in this case and statements made in court:
Stolen Identity Refund FraudStolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that results in more than $2 billion in losses annually to the United States Treasury. SIRF schemes generally share a number of hallmarks:
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- SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico.
- SIRF perpetrators complete Individual Income Tax Return Form 1040s using the fraudulently-obtained information, and falsifying wages earned, taxes withheld and other data. Perpetrators use data to make it appear that the “taxpayers” listed on the fraudulent 1040 forms are entitled to tax refunds – when in fact, the various tax withholdings indicated on the fraudulent 1040s have not been paid by the listed “taxpayers,” and no refunds are due.
- SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico.
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- Perpetrators direct the U.S. Treasury Department to issue the refunds through checks (Tax Refund Treasury Checks) generated by the fraudulent 1049 forms to locations they control or can access, in various ways.
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- With Tax Refund Treasury Checks now in hand, SIRF perpetrators generate cash proceeds. Certain SIRF perpetrators sell refund checks at a discount to face value. In turn, the buyers then cash the checks, either themselves or using straw account holders, by cashing checks at banks or check cashing businesses, or by depositing checks into bank accounts. When cashing or depositing checks, SIRF perpetrators often present false or fraudulent identification documents in the names of the “taxpayers” to whom the checks are payable.
The Investigation
Federal law enforcement agencies created a multi-agency task force in New Jersey composed of investigators from the IRS and the U.S. Postal Inspection Service, along with the U.S. Secret Service, and with assistance from the Drug Enforcement Administration (the “New Jersey Task Force”).
An investigation led by the New Jersey Task Force, with assistance from U.S. Immigration and Customs Enforcement, Homeland Security Investigations, revealed that from at least 2007, dozens of individuals in the New Jersey and New York area have been engaged in a large-scale, long running SIRF scheme that caused more than 8,000 fraudulent 1040 forms to be filed, seeking more than $65 million in tax refunds, with more than $12 million in losses to the U.S. Treasury.
Pinski, Senatore and others obtained personal identifiers, such as dates of birth and Social Security numbers, belonging to Puerto Rican citizens. They used those identifiers to create fraudulent 1040 forms, which falsely reported wages purportedly earned by the “taxpayers” and taxes purportedly withheld, to create the appearance that the “taxpayers” were entitled to tax refunds. The returns were filed electronically. By tracing the specific IP addresses that submitted the electronically-filed 1040s, law enforcement officers learned that just a handful of IP addresses created many of the fraudulent 1040 forms that lead to the issuance of tax refund checks.
Conspirators purchased mail routes, that is, lists of addresses covered by a single mail carrier. Conspirators applied for refunds, inserted addresses along the mail route as the purported home addresses of the “taxpayers,” and obtained the refund checks sent to the addresses. They also applied for checks using addresses otherwise controlled by, or accessible by, certain conspirators, and collected the checks after they were delivered to those addresses. During the course of the scheme, hundreds of refund checks were mailed to just a few different addresses in a few different towns, including Nutley, Somerset and Newark, N.J., and Shirley, N.Y.
After receiving the refund checks, Pinski, Senatore and others caused the checks to be cashed at check cashing institutions, and then causing the proceeds to be divided among the conspirators.
During the course of the investigation, members of the task force identified certain “hot spots” of activity and intercepted more than $22 million in refund checks – that had been applied for fraudulently – before they were delivered to members of the conspiracy.
Sentencing for Pinski is scheduled for March 3, 2014, and sentencing for Senatore is scheduled for March 5, 2014.
U.S. Attorney Fishman praised special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; the U.S. Secret Service, under the direction of Special Agent In Charge James Mottola; and the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl Kotowski, for the investigation leading to today’s this week’s guilty pleas.
The government is represented by Assistant U.S. Attorneys Mala Ahuja Harker, Lakshmi Srinivasan Herman, Zach Intrater, and Danielle Walsman of the U.S. Attorney’s Office Criminal Division in Newark.
13-447
Defense Counsel:
David Pinski: Samuel DeLuca Esq., Jersey City, N.J.
Michael Senatore: Christopher Patella Esq., Bayonne, N.J.Pinski, David Information
Senatore, Michael Information-
Two Alaska Men indicted for drug and gun crimes, including conspiracy to distribute heroinRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that two men have been indicted by a federal grand jury on charges that they conspired to distribute large quantities of heroin. One was also indicted on related gun charges.
James Gwaltney and Baretta Faatafuga, both 37, and residents of the State of Alaska, were charged with conspiring to distribute and to possess with the intent to distribute 1 kilogram or more of heroin. They were also charged in a separate count with attempting to actually possess the narcotics with the intent to distribute them to others. Faatafuga, a convicted felon, also faces a charge of being a felon in unlawful possession of multiple firearms.
Assistant U.S. Attorney Stephanie Courter, who presented the case to the grand jury, indicated that both men face a ten-year mandatory minimum sentence on the drug charges, with a maximum sentence of up to life in prison. The law also provides for a fine of up to $10 million dollars. Faatafuga faces a separate sentence of up to 10 years in prison on the gun charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history of the defendant.The United States Postal Inspection Service, the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that resulted in the indictment in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Three Takata Corp. Executives Agree to Plead Guilty to Participating in Global Seatbelt Price Fixing ConspiracyRead the Press Release
Three high-level executives of Tokyo-based Takata Corp. have agreed to plead guilty for their participation in a conspiracy to fix prices of seatbelts installed in cars sold in the United States, the Department of Justice announced today. The executives have also agreed to serve time in a U.S. prison.
According to the one-count felony charges filed separately against each of the executives today in the U.S. District Court for the Eastern District of Michigan in Detroit, Yasuhiko Ueno, Saborou Imamiya and Yoshinobu Fujino participated in a conspiracy to rig bids for, and to fix, stabilize and maintain the prices of seatbelts sold to Toyota Motor Corp., Honda Motor Co. Ltd., Nissan Motor Co. Ltd., Fuji Heavy Industries Inc. – more commonly known by its brand name, Subaru – and Mazda Motor Corp. in the United States and elsewhere. The three executives have agreed to serve prison sentences ranging from 14 to 19 months, and to cooperate with the department’s ongoing investigation.
Ueno was employed by Takata’s Auburn Hills, Mich.-based U.S. subsidiary, TK Holdings Inc., in the United States as senior vice president for sales for Japanese manufacturers from at least January 2006 through December 2007. From early 2008 through June 2009, Ueno was employed by Takata in Japan as deputy division director of the customer relations division, and as director of the customer relations division from June 2009 through at least February 2011. According to the charge, Ueno’s involvement in the conspiracy lasted from at least as early as January 2006 until at least February 2011. Ueno has agreed to serve 19 months in prison and to pay a $20,000 criminal fine.
Imamiya was employed by Takata in Japan as general manager for Toyota sales from at least January 2008 to July 2009, and as director of the customer relations division from July 2009 through at least February 2011. According to the charge, Imamiya’s involvement in the conspiracy lasted from at least as early as January 2008 until at least February 2011. Imamiya has agreed to serve 16 months in prison and to pay a $20,000 criminal fine.
Fujino was employed by Takata in Japan as the manager of the Toyota group within the customer relations division from at least January 2004 through June 2005, and as the manager of the Mazda group within the customer relations division from June 2005 through the end of 2007. From the beginning of 2008 through at least February 2011, Fujino was employed by TK Holdings in the United States as assistant vice president for sales for Japanese manufacturers. According to the charge, Fujino’s involvement in the conspiracy lasted from at least as early as January 2004 until at least February 2011. Fujino has agreed to serve 14 months in prison and to pay a $20,000 criminal fine.
Takata Corp. is a manufacturer of automotive occupant safety systems, including seatbelts. Seatbelts are safety strap restraints designed to secure an occupant in position in a vehicle in the event of an accident, and may be sold bundled with related parts according to the needs of the automobile manufacturer. According to the charges, the Takata executives and their co-conspirators carried out the conspiracy by, among other things, agreeing during meetings and communications to coordinate bids submitted to the automobile manufacturers.
On Sept. 26, 2013, Gary Walker, an executive of TK Holdings Inc., agreed to plead guilty and serve a sentence of 14 months in prison for his involvement in the same conspiracy. On Oct. 9, 2013, Takata Corp. agreed to plead guilty for its involvement in the conspiracy and to pay a criminal fine of $71.3 million.
Each of the executives is charged with price fixing in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Including today’s charges, 24 individuals have been charged in the department’s investigation into price fixing and bid rigging in the auto parts industry. Additionally, 21 corporations have been charged.
The current prosecution arose from an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charges were brought by the National Criminal Enforcement Section, with the assistance of the Detroit, Michigan, Field Office of the FBI. Anyone with information concerning the focus of this investigation should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html, or call the Detroit Field Office of the FBI at 313-965-2323.
Three More Eagle Pass Businessmen Indicted in Connection with Maverick County Bribery, Kickback and Bid-Rigging SchemeRead the Press Release
In Eagle Pass this morning, Federal Bureau of Investigation agents along with Texas Department of Public Safety investigators arrested 64-year-old Saul Lombrana, owner and operator of Fiesta Contractors based in Eagle Pass, in connection with an alleged bribery, kickback and bid-rigging scheme announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.
Lombrana is charged by a federal grand jury indictment returned yesterday with one count of paying a bribe to an agent of an organization receiving federal funds. According to the indictment, in March 2011, Lombrana submitted a $14,500 bid to construct 155 linear feet of concrete drain swell on Rafael Street in Precinct 1. Lombrana was awarded the contract. The indictment alleges that Lombrana never constructed the concrete drain swell, but requested and received full payment for the project. The indictment also alleges that in exchange for being awarded the contract, Lombrana paid a monetary bribe to a Maverick County employee.
In addition to indicting Lombrana, the federal grand jury sitting in Del Rio returned separate indictments against 46–year-old Alejandro Wheeler, owner and operator of TVAW, a media outlet based in Eagle Pass, and 55–year-old Marcelo Alvarez, a surveyor and consultant in Maverick County. Alvarez surrendered to federal authorities this morning. Authorities are still looking for Wheeler.
Wheeler is charged with one count of aiding and abetting paying a bribe to an agent of an organization receiving federal funds and one count of aiding and abetting theft concerning programs receiving federal funds. According to his indictment, in 2010 and 2011, Wheeler and Maverick County commissioners devised a scheme to have two contractors awarded Maverick County construction contracts. As part of the scheme, Wheeler allegedly received money from the contractors and the commissioners received bribes from the construction funds as well as discounted campaign advertising and media time.
Alvarez is charged with one count of paying a bribe to an agent of an organization receiving federal funds. According to his indictment, from 2010 to 2012, Alvarez corruptly paid money to Maverick County officials, including two county commissioners, in order to guarantee that engineering, project management and consulting services contracts valued at approximately $800,000 were awarded to a specific company. Alvarez, in turn, was designated as the Resident Project Representative on those projects and received payment for his services.
Upon conviction each charge calls for up to ten years in federal prison and a maximum $250,000 fine.
This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety. Individuals who have first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741. Assistant United States Attorneys Michael Galdo and Bryan Reeves are prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Three Aryan Brotherhood of Texas Gang Members <br /> Plead Guilty to Federal Racketeering ChargesRead the Press Release
Three members of the Aryan Brotherhood of Texas (ABT) gang have pleaded guilty to racketeering charges related to their membership in the ABT’s criminal enterprise, announced 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.
Sammy Keith Shipman, aka “Stubby,” 31, of Houston, pleaded guilty today before U.S. Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity.
William David Maynard, aka “Baby Huey,” 43, of Houston, pleaded guilty Nov. 20, 2013, and Dustin Lee Harris, aka “Lightning,” 29, of Dallas, pleaded guilty Nov. 19, 2013. Each defendant pleaded guilty to one count of conspiracy to participate in racketeering activity.
According to court documents, Shipman, Maynard, Harris and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. The defendants and numerous other ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.By pleading guilty to racketeering charges, Shipman, Maynard and Harris admitted to being members of the ABT criminal enterprise and to committing multiple acts of violence and/or narcotics trafficking on behalf of the ABT.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforces its rules and promotes discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, are required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
At sentencing, scheduled for Feb. 20, 2014, Shipman, Maynard and Harris each face a maximum penalty of life in prison.
Shipman, Maynard and Harris are three of 36 defendants charged with, among other things, conducting racketeering activity through the ABT criminal enterprise. To date, 17 defendants have pleaded guilty.This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Mesquite, Texas, Police Department; Montgomery County District Attorney’s Office; and the Atascosa County District Attorney’s Office.
The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office for the Southern District of Texas.Three Aryan Brotherhood of Texas Gang Members Plead Guilty to Federal Racketeering ChargesRead the Press Release
HOUSTON – Three members of the Aryan Brotherhood of Texas gang (ABT) pleaded guilty to racketeering charges related to their membership in the ABT’s criminal enterprise, announced United States Attorney Kenneth Magidson and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
Sammy Keith Shipman, aka “Stubby,” 31, of Houston, pleaded guilty today before U.S. Judge Sim Lake to one count of conspiracy to participating in racketeering activity.
William David Maynard, aka “Baby Huey,” 43, of Houston, pleaded guilty Nov. 20, 2013. Dustin Lee Harris, aka “Lightning,” 29, of Dallas, pleaded guilty Nov. 19, 2013. Each defendant pleaded guilty to one count of conspiracy to participating in racketeering activity.
According to court documents, Shipman, Maynard, Harris and other ABT gang members and associates, agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. The defendants and numerous other ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
By pleading guilty to racketeering charges, Shipman, Maynard and Harris admitted to being members of the ABT criminal enterprise and committing multiple acts of violence and/or narcotics trafficking on behalf of the ABT.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
At sentencing, scheduled for Feb. 20, 2014, Shipman, Maynard and Harris each face a maximum penalty of life in prison.
Shipman, Maynard and Harris are four of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. To date, 18 defendants have pleaded guilty.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; sheriff’s offices in Harris, Tarrant, Atascosa, Orange and Waller Counties; police departments in Alvin, Carrollton and Mesquite Texas; as well as the Montgomery and Atascosa County District Attorney’s Offices.
The case is being prosecuted by the U.S. Attorney’s Office of the Southern District of Texas and the Criminal Division’s Organized Crime and Gang Section.
Ten San Jose Gang Members and Associates Arrested on Federal Drug Trafficking ChargesRead the Press Release
SAN JOSE – Raul Morfin was arraigned today in federal court in San Jose on methamphetamine distribution charges, United States Attorney Melinda Haag announced.
Morfin represents the tenth defendant arrested on federal drug trafficking charges as part of a proactive operation by the Federal Bureau of Investigation’s Santa Clara County Violent Gang Task Force targeting gang members selling methamphetamine in Santa Clara County.
The defendants include the reputed “matriarch” of the Sureño gang “8th Street Gilroy” (Maria Salinas), alleged co-conspirator brothers affiliated with the Sureño gang “Varrio Mexicanos Locos” (Jairo and Filiberto Quintana), an alleged co-conspirator mother and daughter combination associated with the Sureño gang “Varrio Sur Town” (Laura Garcia and Vanessa Pulido), and known members and associates of the Sureño gangs “Colonias,” “Poco Way,” and “Varrio Paisanos Locos.” All but one of the defendants has thus far been detained pre-trial, thereby disrupting a substantial gang presence within Santa Clara County.
As set forth below, the ten defendants are charged in eight separate indictments with distributing and conspiring to distribute methamphetamine and, in one case, possessing a firearm in furtherance of drug trafficking.
Defendant Charges Docket Number Next Court Appearance EDUARDO ARRIAGA a/k/a “Moreno” Distribution of Methamphetamine and Possession of a Firearm in Furtherance of Drug Trafficking CR 13-00510 EJD 12/02/2013 LAURA GARCIA
a/k/a “Blinky” and
VANESSA PULIDO
a/k/a “Bunny” Distribution of Methamphetamine and Conspiracy to Distribute Methamphetamine CR 13-00508 LHK 12/04/2013 RAFAEL MEDINA
a/k/a “Conejo” Distribution and Conspiracy to Distribute Methamphetamine CR 13-00507 LHK 12/04/2013 RAUL VALLE MORFIN a/k/a “Green Eyes” Distribution of Methamphetamine CR 13-00509 DLJ 11/26/2013 JESUS QUINONES
a/k/a “Canas” Distribution of Methamphetamine CR 13-00503 DLJ 01/09/2014 JAIRO QUINTANA
a/k/a “Hido” and FILIBERTO QUINTANA a/k/a “Peewee” Distribution of Methamphetamine and Conspiracy to Distribute Methamphetamine CR 13-00506 LHK 12/18/2013 MARIA SALINAS
a/k/a “Grumpy” Distribution of Methamphetamine CR 13-00504 LHK 02/12/2014 ULYSSES VASQUEZ a/k/a “Dreamer” Distribution and Conspiracy to Distribute Methamphetamine CR 13-00502 RMW 11/25/2013The maximum penalty that defendants Vasquez and Arriaga face upon conviction is life imprisonment. At this time, the other eight defendants face a maximum penalty of 40 years in prison. 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.
Assistant U.S. Attorney Stephen Meyer and Special Assistant U.S. Attorney Casey O’Neill are prosecuting these cases with the assistance of Nina Burney, Tracey Andersen and Susan Kreider. The prosecution is the result of an investigation by the Federal Bureau of Investigation’s Santa Clara County Violent Gang Task Force.
Please note, an indictment contains only allegations against an individual and, as with all defendants, these defendants must be presumed innocent unless and until proven guilty.
(Arriaga indictment )(Garcia & Pulido indictment )(Morfin indictment )
(Medina indictment )(Quinones indictment )(Quintana indictment )
(Salinas indictment )(Vasquez indictment )
Superseding Indictment Returned Charging Father and Son with Sex Trafficking OffensesRead the Press Release
A federal grand jury in Milwaukee has returned an 11-count superseding indictment adding David B. Moore, 45, as a defendant in the federal sex trafficking case involving his son, Najee Moore, 22.
Both men are charged with conspiracy to engage in the sex trafficking and forced labor of a minor and sex trafficking of a minor. David Moore is also charged with soliciting his son to engage in sex trafficking. Najee Moore is charged with an additional conspiracy to engage in sex trafficking and forced labor, two counts of sex trafficking of an adult, attempted sex trafficking of a minor, attempted forced labor, evidence tampering and attempted witness tampering. The previous indictment in the case, returned on June 18, 2013, charged only Najee Moore with sex trafficking, attempted forced labor and related offenses.
According to the superseding indictment, between February 2008 and December 2009 David Moore and Najee Moore conspired to compel a minor to engage in prostitution and strip club dancing and caused that minor to engage in acts of prostitution. In July 2011, David Moore allegedly solicited his son to engage in further acts of sex trafficking. Between 2011 and 2013, Najee Moore allegedly engaged in the conduct charged in the remaining counts.
Both Moores face a statutory maximum sentence of life imprisonment.
An indictment is merely an accusation. All defendants are presumed innocent until proven guilty.
The case is being investigated by the FBI, the Milwaukee Police Department, DHS Homeland Security Investigations and the Wisconsin Department of Criminal Investigation. The case is being jointly prosecuted by Assistant U.S. Attorney Karine Moreno-Taxman and Trial Attorney Daniel H.Weiss of the Civil Rights Division's Human Trafficking Prosecution Unit.
Superceding Indictment Charges Two Six Gang Members with Murder in Aid of RacketeeringRead the Press Release
DESK: (219) 937-5603
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana - United States Attorney David Capp announced that a Superseding Indictment was returned yesterday charging Jesus Valentin Fuentes, 39, of Chicago and East Chicago, Kiontay Kyare Pennington, 34, of Gary, Indiana, Oscar Cosme, 41, of East Chicago, Indiana andAdron Herschel Tancil, 36, of East Chicago, Indiana,for the May 16, 2003 murder of Julio Cartagena in East Chicago, Indiana.
The indictment alleges that Fuentes was one of the local leaders of the Two Six Nation, a violent criminal enterprise.In November 2003, Fuentes directed members of the Two Six to kidnap the family of Julio Cartagena (Cartagena was also a member of the Two Six), in an effort to recover a large quantity of cocaine stolen by Cartagena from Fuentes.Henderson, Pennington and other Two Six members allegedly kidnapped Cartagena’s children and mother of his children at gunpoint from their home in Hammond, Indiana.Hammond Police soon were able to rescue the family, none were harmed.
Thereafter, the indictment alleges that Fuentes directed Two Six members to kidnap Julio Cartagena.On May 16, 2003, Louis Henderson, Pennington, and Tancil, all alleged Two Six members, and Oscar Cosme, an associate of Henderson, shot and killed Cartagena in East Chicago during an attempted kidnapping.After the shooting these four individuals sped away in a vehicle driven by Henderson.The vehicle crashed and Henderson was killed.
Count 1 of the indictment charges Pennington, Tancil and Fuentes with murder in aid of racketeering and kidnapping.
Count 2 of the indictment charges Pennington, Cosme, Tancil and Fuentes with the use of a firearm during and in relation to a drug trafficking crime (distribution of cocaine) and crimes of violence (murder and kidnapping).
These charges were filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives Merrillville Field Office, the Bureau of Alcohol Tobacco Firearms and Explosives HIDTA Taskforce, the Federal Bureau of Investigation, the East Chicago Police Department and the Hammond Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney David J. Nozick.
The United States Attorney's Office emphasized that an indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
Statement Regarding Marijuana Enforcement ActionRead the Press Release
In response to multiple media questions regarding today’s drug enforcement action, the U.S. Attorney’s Office issued the following updated statement:
“While the investigation is ongoing, there are strong indications that more than one of the eight federal prosecution priorities identified in the Department of Justice’s August guidance memo are potentially implicated.”
Jeff Dorschner, Spokesman, U.S. Attorney’s Office
The initial statement issued regarding today’s enforcement action follows:
“The Drug Enforcement Administration, Internal Revenue Service Criminal Investigations, the Denver Police Department and state and local law enforcement are today executing lawfully obtained search warrants and seizure warrants. One important note: Although we cannot at this time discuss the substance of this pending investigation, the operation under way today comports with the Department’s recent guidance regarding marijuana enforcement matters. As this is an on-going investigation, no additional information will be made available.”
Jeff Dorschner, Spokesman, U.S. Attorney’s Office
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St. Francis Man Charged with Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, Opposing, and Impeding a Federal Officer.
Cyrus Black Spotted Horse, age 32, was indicted on November 14, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 19, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation and Black Spotted Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Black Spotted Horse was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Souderton Man Charged in Child Pornography IndictmentRead the Press Release
Ian H. Ranberg, 47, of Souderton, PA, was charged today by Indictment1 with receipt, distribution and possession of child pornography, announced United States Attorney Zane David Memeger. According to the indictment, Ranberg received images of child pornography between May 23, 2012 and May 29, 2012, and between August 19, 2012 and September 19, 2012. It is further alleged that on February 2, 2013, Ranberg distributed a video containing child pornography. The indictment also alleges that on August 21, 2013, Ranberg was in possession child pornography on his computers and external hard drives.
If convicted of all charges, Ranberg faces a maximum possible sentence of 70 years in prison, including a five year mandatory minimum, a minimum of five years but up to a lifetime of supervised release, fines of up to $1 million, and $400 in special assessments.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Jessica Natali.
Click here to view the indictment
1An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Sentences for November 18– 20, 2013Read the Press Release
Amanda Rae Torres, 38, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on November 20, 2013, for conspiracy to possess with intent to distribute, and to distributing approximately 140 grams of methamphetamine. Torres was arrested in Cheyenne, Wyoming. She received 36 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Christy Speaker, 34, of Eaton, Colorado, was sentenced by Federal District Court Judge Alan B. Johnson on November 19, 2013, for conspiracy to possess with intent to distribute, and to distributing at least 1.5 but no more than 5 kilograms of a mixture or substance containing a detectable amount of methamphetamine. Speaker was arrested in Cheyenne, Wyoming. She received 168 months imprisonment, to be followed by five months of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Kerina Willson, 28, of Casper, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on November 19, 2013, for conspiracy to possess with intent to distribute, and to distributing at least 500 grams but not more than 1.5 kilograms of a mixture or substance containing a detectable amount of methamphetamine. Willson was arrested in Casper, Wyoming. She received 78 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment and a $200.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
John Wayne Thomas, 40, of Torrington, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on November 18, 2013, for conspiracy to possess with intent to distribute, and to distributing at least 200 but less than 350 grams of methamphetamine. Thomas was arrested in Torrington, Wyoming. He received 151 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Second Superseding Indictment Returned Charging Former Pennsylvania State Senator Raphael J. MustoRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a second superseding indictment has been returned against former State Senator Raphael J. Musto, Pennsylvania 14th Senatorial District. This new indictment amends previous charges brought against Senator Musto, who is currently scheduled for trial on January 6, 2014.
According to United States Attorney Peter J. Smith, Senator Musto, age 85, of Pittston, was originally charged in an indictment in November 2011. Those charges alleged that Senator Musto accepted $25,000 cash payment from a construction contractor whom had developed various properties in Lackawanna and Luzerne Counties. Senator Musto accepted the $25,000 in cash, as well as other things of value from the contractor, as part of a stream of benefits designed to secure Senator Musto’s continued support of various construction projects which were to the financial benefit of the company.In addition, Senator Musto was alleged to have accepted thousands of dollars in cash from another individual affiliated with Northeast Pennsylvania municipal authorities. That cash payment was accepted by Senator Musto as a reward for prior official action taken by the senator where he assisted the municipal authorities obtain loans and grants. In addition, Senator Musto accepted these funds intending to be influenced in his future official decisions.
In October 2012, the original indictment was superseded by a grand jury to include two new charges of public corruption. In 2006, Senator Musto is alleged to have accepted $1,000 and other benefits from an individual affiliated with a municipality in return for his assistance with passing through a loan application for the municipality. Senator Musto is alleged to have done the same, for the same individual, in 2008, again in return for his assistance with the passage of a loan application for local municipalities.The Indictment returned Wednesday amended portions of this indictment to include a broader array of things of value provided to Senator Musto and changed one of the charges in the indictment.
In October 2012, attorneys for Senator Musto filed a motion with the court to dismiss the pending charges, or to indefinitely postpone the trial, because of Senator Musto’s physical health. The government objected to this request and Senior United States District Court Judge A. Richard Caputo agreed. The defense appealed this decision to the Third Circuit Court of Appeals. The appeals court denied the appeal and on October 22, 2013, the case was returned to Judge Caputo who scheduled it for trial on January 6, 2014.
On November 15, 2013, Senator Musto filed a renewed motion with the court to indefinitely postpone the trial. In this latest motion, the defense has identified the senator’s deteriorating physical health as well was his mental competency to stand trial as reasons for the trial postponement. The United States has not agreed with this request and will be filing a response asking Judge Caputo to schedule a hearing where the defense will be required to prove that Senator Musto is unable to withstand trial and/or assist his attorneys.This case is part of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service and is being prosecuted by a team of federal prosecutors led by Senior Litigation Counsel Gordon Zubrod and includes Assistant U.S. Attorneys William Houser, Michael Consiglio, Amy Phillips John Gurganus and Criminal Division Chief Christian Fisanick.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
San Antonio Businessman Pleads Guilty to Role in $133 Million Real Dollar Loss Fraud and Tax CaseRead the Press Release
In San Antonio this morning, 61-year-old businessman Charles Pircher pleaded guilty to his role in what is believed to be the largest real dollar loss fraud and tax related case ever prosecuted in the Western District of Texas announced United States Attorney Robert Pitman, FBI Special Agent in Charge Armando Fernandez and IRS-Criminal Investigation Special Agent In Charge Steve McCullough.
“This was a wide ranging and complex scheme, whose simple purpose was to steal money from company payroll by diverting tax and insurance payments all for personal enrichment. Pircher cheated clients and the taxpayers for years,” stated United States Attorney Robert Pitman.
Appearing before United States Chief District Judge Fred Biery, Pircher pleaded guilty to a Klein tax fraud conspiracy charge and a mail fraud conspiracy charge. According to the factual basis filed in this case, from 2002 to 2008, Pircher managed a series of Professional Employer Organizations (PEOs) based in San Antonio, including Service Professionals, which entered into staff leasing agreements with various client companies to manage their payroll and insurance programs. By pleading guilty, Pircher admitted that he and other co-conspirators stole more than $133 Million directly from their client companies’ programs.
Pircher faces up to 20 years in federal prison on the mail fraud conspiracy charge and up to five years in federal prison on the Kline tax fraud conspiracy charge. Sentencing has yet to be scheduled.
This investigation, conducted by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation, has resulted in guilty pleas by five defendants—Pircher; John D. Walker, II; John Bean; Mike Solis; and Pat Mire. A sixth defendant, San Antonio businessman Larry W. Kimes, is scheduled for jury selection and trial on January 23, 2014. Kimes is charged by federal grand jury indictment with one count of Klein tax fraud conspiracy, two counts of mail fraud conspiracy, one count of money laundering conspiracy and one substantive count of money laundering.
Assistant United States Attorney Thomas J. McHugh is prosecuting this case on behalf of the Government.
Russellville, Kentucky Convicted Felon Charged with Distribution of A Controlled Substance and Possession of A FirearmRead the Press Release
– Formerly convicted of first-degree murder, promoting contraband and trafficking in a controlled substance
BOWLING GREEN, Ky. – A Logan County, Kentucky man formerly convicted of facilitation to murder, promoting contraband, and trafficking in a controlled substance was indicted by a federal grand jury in Bowling Green, Kentucky this week, on multiple charges of distribution of a controlled substance and possession of a firearm by a convicted felon, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Kelly Dewayne Morris, a/k/a Kelly Crenshaw, age 35, was charged with being a felon in possession of a Taurus, model 856, .38 Special revolver, and five rounds of .38 Special ammunition, possession of body armor, and three counts of possession and distribution of crack cocaine.
According to the indictment, between August 1, 2013 and October 18, 2013, in Logan County, Kentucky, Morris is alleged to have possessed the firearm and body armor, and distributed crack cocaine to a confidential informant.
Morris was convicted of robbery and facilitation to murder in Todd County, Kentucky, Circuit Court on January 21, 2009. Further, Morris was convicted of promoting contraband in Warren County, Kentucky, Circuit Court on July 5, 2001, and Trafficking in cocaine in Logan Circuit Court on February 15, 1999.
If convicted at trial, Morris faces a term of 133 years in prison, a fine of $4.5 million, and a 30 year term of supervised release.
This case is being prosecuted by Assistant United States Attorney Mac Shannon and is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the South Central Kentucky Drug Task Force.
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.Rosebud Man Charged with Possession of Child PornographyRead the Press Release
United States Attorney Brendan V. Johnson announced that Jeremy Gunhammer, age 20, of Rosebud, South Dakota, appeared before U.S. District Judge Roberto A. Lange on November 19, 2013, and pled guilty to Possession of Child Pornography.
The maximum penalty upon conviction is 10 years in custody and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund.
The conviction stems from incidents that took place between January 1, 2013, and May 31, 2013, when Gunhammer would use the internet to receive and possess images of child pornography. Gunhammer knew that the child pornography images were produced using material that had been mailed and shipped and transported in interstate and foreign commerce by means of computer, cellular phone, Facebook, and other online services.
The investigation was conducted by the Federal Bureau of Investigation, South Dakota Division of Criminal Investigation, South Dakota Internet Crimes Against Children Task Force, Rosebud Sioux Tribe Law Enforcement Services, Bureau of Indian Affairs, Pennington County Sheriff’s Office, Rapid City Police Department, Sioux Falls Police Department and the U.S. Marshals Service. Assistant U.S. Attorneys Tim Maher and Sarah Collins are prosecuting the case.
A presentence investigation was ordered and a sentencing date was set for January 27, 2013. The defendant was released on conditions pending sentencing.
Rosebud Man Charged with Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that Jason Riley, age 36, of Rosebud, South Dakota, appeared before U.S. District Judge Roberto A. Lange on November 19, 2013, and pled guilty to Assault Resulting in Serious Bodily Injury.
The maximum penalty upon conviction is 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund.
On October 13, 2010, Jason Riley was at the Sicangu Village Housing on the Rosebud Sioux Indian Reservation. The victim approached Riley and asked for a cigarette. A verbal disagreement ensued and Riley struck the victim in the face and kicked the victim with shod feet while the victim was on the ground. The victim suffered multiple abrasions, soft tissue bruising, and a nose bone fracture.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Tim Maher.
A presentence investigation was ordered and a sentencing date was set for February 10, 2014. Riley was released pending sentencing.