Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Monday 18 November 2013
High-Ranking Bank Official at Venezuelan State Development Bank Pleads Guilty in Manhattan Federal Court to Participating in Bribery SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Mythili Raman, the Acting Assistant Attorney General for the Criminal Division of the United States Department of Justice (“DOJ”), announced today that MARIA DE LOS ANGELES GONZALEZ DE HERNANDEZ (“GONZALEZ”) pled guilty in Manhattan federal court to charges relating to a scheme in which GONZALEZ, formerly a foreign official at Banco de Desarrollo Económico y Social de Venezuela (“BANDES”), a state economic development bank in Venezuela, accepted bribes from officers and agents of a New York-based broker-dealer (the “Broker-Dealer”) in exchange for GONZALEZ directing BANDES’s security-trading business to the Broker-Dealer. GONZALEZ pled guilty today before U.S. District Judge Paul A. Engelmayer to conspiring to violate the Travel Act and to commit money laundering, as well as substantive counts of these offenses.
According to the Information against GONZALEZ, the allegations in a previously filed criminal Complaint, statements made during the plea proceedings, and other documents filed in Manhattan federal court:
At all times relevant to the charges, BANDES was a state-run economic development bank in Venezuela. The Venezuelan government had a majority ownership interest in BANDES and provided it with substantial funding. GONZALEZ was an official at BANDES and oversaw the development bank’s overseas trading activity. At her direction, BANDES conducted substantial trading through the Broker-Dealer. Most of the trades executed by the Broker-Dealer on behalf of BANDES involved fixed income investments for which the Broker-Dealer charged the bank a mark-up on purchases and a mark-down on sales.
From early 2009 through 2012, GONZALEZ participated in a bribery scheme in which she directed trading business she controlled at BANDES to the Broker-Dealer, and in return, agents and employees of the Broker-Dealer shared the revenue the Broker-Dealer generated from this trading business with GONZALEZ. During this time period, the Broker-Dealer generated over $60 million in mark-ups and mark-downs from trades with BANDES. Agents and employees of the Broker-Dealer devised a split with GONZALEZ of the commissions paid by BANDES to the Broker-Dealer. Emails, account records, and other documents collected from the Broker-Dealer and other sources reveal that GONZALEZ received a substantial share of the revenue generated by the Broker-Dealer for BANDES-related trades. Specifically, GONZALEZ received millions in bribe payments from Broker-Dealer agents and employees.
In addition, GONZALEZ paid a portion of the bribe payments she received to another BANDES employee who was also involved in the scheme.
To further conceal the scheme, the kickbacks to GONZALEZ were often paid using intermediary corporations and offshore accounts that GONZALEZ and others held in Switzerland, among other places.
GONZALEZ, 55, of Caracas, Venezuela, pled guilty to five offenses. A chart containing the charges and maximum penalties is attached. Sentencing for GONZALEZ is scheduled for August 15, 2014 before Judge Engelmayer.
Previously, three former officers or employees of the Broker-Dealer, Ernesto Lujan, Jose Alejandro Hurtado, and Tomas Alberto Clarke Bethancourt, each pled guilty in Manhattan federal court to conspiring to violate the Foreign Corrupt Practices Act (the “FCPA”), to violate the Travel Act, and to commit money laundering, as well as substantive counts of these offenses relating, among other things, to the scheme involving bribe payments to GONZALEZ. Sentencing for Lujan and Clarke is scheduled for February 11, 2014, before U.S. District Judge Paul G. Gardephe. Hurtado is scheduled for sentencing before U.S. District Judge Harold Baer, Jr., on October 30, 2014.
Mr. Bharara praised DOJ’s Criminal Division Fraud Section and Office of International Affairs, and the Federal Bureau of Investigation, for their work in the investigation. Mr. Bharara also thanked the U.S. Securities and Exchange Commission for its assistance in this case, and noted that the investigation is continuing.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force and the Fraud Section of the DOJ Criminal Division. Assistant United States Attorneys Harry A. Chernoff and Jason H. Cowley, and Fraud Section Assistant Chief James Koukios and Trial Attorney Maria Gonzalez Calvet, are in charge of the prosecution. Assistant United States Attorney Carolina Fornos is responsible for the forfeiture aspects of the case.
Additional information about the Justice Department’s FCPA enforcement efforts can be
found at www.justice.gov/criminal/fraud/fcpa.
Click here to view chart(s)
US v Maria Gonzalez 13 Cr 901 (PAE) Criminal Information
Gregory Man Charged with Second Degree Burglary and ForgeryRead the Press Release
United States Attorney Brendan V. Johnson announced that a Gregory, South Dakota, man has been indicted by a federal grand jury.
Roger B. King, age 45, was indicted on April 12, 2013, for Second Degree Burglary and Forgery. King appeared before U.S. Magistrate Judge Mark A. Moreno on November 13, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 15 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 on each count to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges are merely accusations, and King is presumed innocent until and unless proven guilty.
The Indictment alleges that on June 9, 2012, King unlawfully entered a residence and wrote stolen checks to different entities.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
King was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Gladstone Man Indicted for Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Gladstone, Mo., man has been indicted by a federal grand jury for producing, distributing and possessing child pornography.
Barry Alan Darlington, 73, of Gladstone, was charged in a five-count indictment returned under seal by a federal grand jury on Thursday, Nov. 14, 2013. That indictment was unsealed and made public upon Darlington’s arrest and initial court appearance on Friday, Nov. 15, 2013. Darlington remains in federal custody pending a detention hearing on Nov. 20, 2013.
Darlington is charged with three counts of producing child pornography over a three-year period. The federal indictment alleges that Darlington used a minor, identified as “Jane Doe,” to produce child pornography between June 1, 2001, and May 1, 2004.
The indictment also alleges that Darlington distributed child pornography over the Internet in September 2005 and that he was in possession of child pornography on July 18, 2013.
In seeking to have Darlington detained without bail, the government contends that he has indicated a continuing sexual interest in other children and has destroyed evidence.
According to the government’s detention motion, Darlington furthered the exploitation of his child victim by distributing some of the images he produced over the Internet. Investigators also found in Darlington’s possession multiple additional images and movies of the sexual abuse of other children, including babies. Online chat logs indicate that Darlington distributed other, “commercial” (that is, not self-produced) child pornography to others over the Internet.
The detention motion also cites online chats in which Darlington admitted he had been ogling a young neighbor girl and tried to arrange for her to spend the night at his house. Darlington says in those chats that he loves to go to malls and look at “young folks,” and that he “checks out the kids” when he’s at the grocery store.
The government will produce evidence that Darlington destroyed a computer hard drive after being confronted by law enforcement with evidence that he possessed child pornography.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Katharine Fincham. It was investigated by the Gladstone, Mo., Police Department and the Western Missouri Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."FreshPoint, Inc. Pays $4.2 Million to Settle False Claims LitigationRead the Press Release
SAVANNAH, GA: FreshPoint, Inc. a wholly owned subsidiary of Sysco Corporation, has paid the United States $4.2 million to settle allegations that it submitted false claims to the United States in connection with the sales of fresh fruit and vegetables to the Department of Defense and other Department of Defense customers.
The settlement resolves allegations that during the period of December 17, 2007 through September 11, 2009, FreshPoint over-charged the government on thousands of sales by improperly adding random price mark-ups known as “marketing earned income” or “MEI” to invoices submitted by FreshPoint to the Department of Defense. These invoices were submitted pursuant to contracts that FreshPoint had with Department of Defense to supply fresh fruits and vegetables to its customers, including military troops. MEI was added to bring the price of those fresh fruits and vegetables to the perceived market value of the products. The United States contends that this addition of MEI was a violation of the contracts in place between FreshPoint and Department of Defense.
United States Attorney Edward J. Tarver said, “This settlement demonstrates the commitment of the United States Attorney’s Office to the vigorous enforcement of the False Claims Act. All contractors who do business with the Government are expected to abide by the rules, no matter who you are. Enforcement actions such as this are necessary to protect American taxpayers and to protect our troops.”
The civil settlement announced today resolves allegations against FreshPoint and Sysco that were originally part of a qui tam or whistleblower lawsuit, filed by Charles Hall, a former FreshPoint employee. As a result of today’s settlement, Mr. Hall will receive a share of the settlement proceeds. Under the qui tam provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of any recovery.
United States Attorney Tarver praised the hard work of Defense Criminal Investigative Services Special Agent Heather Hamed and Retired Defense Criminal Investigative Services Special Agent Chip Curington, along with Defense Contract Audit Agency Auditor Keith Melville. The United States was represented by Assistant United States Attorneys Shannon Heath Statkus and Edgar D. Bueno, and Trial Attorney Kelley Hauser from the Department of Justice, Civil Frauds Division. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Former Watertown Town Councilman and Ex-Wife Plead Guilty to Marijuana Distribution and Money LaunderingRead the Press Release
BOSTON – A former Watertown Town Councilman and his ex-wife pleaded guilty today to marijuana distribution and money laundering charges in a case that arose from a law enforcement seizure of more than 1,000 marijuana plants found in the former councilman’s warehouse in 2011.
Thomas Gus Bailey, 51, pleaded guilty to conspiracy to manufacture and distribute marijuana, distribution of marijuana, and conspiracy to commit money laundering. Barbara Waldman, 49, pleaded guilty to conspiracy to commit money laundering.
From at least 2001 through October 2011, Bailey ran a marijuana cultivation and distribution business which overlapped with the time he served on Watertown’s Town Council (2002 to 2006). Over this 10-year period, Bailey gradually expanded his lucrative marijuana business by moving his operation to successively larger indoor grow locations and hiring more workers to trim his marijuana plants and prepare the marijuana for sale. Further, beginning in at least 2006, he orchestrated a money laundering scheme where he and his co-conspirators, including his ex-wife, as well as his former mistress, laundered more than $1 million in drug proceeds. At Bailey’s direction, his co-conspirators made hundreds of separate cash deposits in amounts of $5,000 or less into their bank accounts, and then provided checks to Bailey in furtherance of his marijuana operation. Waldman was responsible for laundering at least $900,000 as part of this scheme. All of Bailey’s and Waldman’s co-defendants have also pleaded guilty in this case.
On the charge of conspiracy to manufacture and distribute marijuana, Bailey faces a maximum sentence of a lifetime in prison, lifetime of supervised release, and a $10 million fine; on the charge of distribution of marijuana, Bailey faces a maximum sentence of five years in prison, a lifetime of supervised release, and a $250,000 fine; on the charge of conspiracy to commit money laundering, Bailey and Waldman face a maximum sentence of 20 years in prison, a lifetime of supervised release, and a $500,000 fine or twice the value of the property involved in the money-laundering transactions, whichever is greater. Both defendants will be sentenced on Feb. 27, 2014.
United States Attorney Carmen M. Ortiz; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; John G. Collins, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Acting Chief Keith MacPherson of the Waltham Police Department, made the announcement today. The Suburban Middlesex County Drug Task Force also provided assistance to the investigation. The case is being prosecuted by Young Paik of Ortiz’s Drug Task Force Unit.
Former Puerto Rico Police Officers Sentenced for Roles in Scheme to Extort a State Defendant for $50,000Read the Press Release
Two former police officers with the Police of Puerto Rico were sentenced to serve 63 and 60 months in prison for attempting to extort a defendant and soliciting bribe payments of $50,000.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Rosa Emilia Rodriguez of the District of Puerto Rico made the announcement.
Abimael Arroyo-Cruz, 30, of Rio Grande, Puerto Rico, was convicted by a jury on May 29, 2013, of conspiracy to commit federal programs bribery, bribery, conspiracy to commit extortion and attempted extortion. Josue Becerril-Ramos, 36, of Carolina, Puerto Rico, pleaded guilty to all four counts on May 17, 2013, midway through his trial. Arroyo was sentenced to serve 63 months in prison, and Becerril was sentenced to serve 60 months in prison.
Arroyo and Becerril arrested eight individuals for possessing unregistered firearms and marijuana on Aug. 2, 2012. The officers then solicited from one defendant a bribe payment of $50,000 to have his case dismissed. Beginning on Sep. 11, 2012, both officers spoke with the defendant multiple times over the telephone, discussing payment details and strategies for dismissing the defendant’s case.
Arroyo and Becerril collected approximately $35,000 of the $50,000 demanded from the defendant in two different payment installments. Unbeknownst to the officers, however, the individuals who dropped off the payments were cooperating with federal law enforcement.In exchange for the bribes, Arroyo and Becerril devised a plan whereby the officers would misidentify a co-defendant in court, leading to the dismissal of the defendant’s case. When asked under oath at the preliminary hearing to identify the defendant, Arroyo instead identified a co-defendant. Arroyo confirmed to the defendant following the hearing that he deliberately misidentified the co-defendant as part of the plan to have the defendant’s case dismissed.
The case was investigated by the FBI’s San Juan field office. The case was prosecuted by Trial Attorneys Menaka Kalaskar and Marquest J. Meeks of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Timothy Henwood of the District of Puerto Rico.
Former Puerto Rico Police Officers Sentenced for Roles in Scheme to Extort A State Defendant for $50,000Read the Press Release
WASHINGTON – Two former police officers with the Police of Puerto Rico were sentenced to serve 63 and 60 months in prison for attempting to extort a defendant and soliciting bribe payments of $50,000.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Rosa Emilia Rodriguez of the District of Puerto Rico made the announcement.
Abimael Arroyo-Cruz, 30, of Rio Grande, Puerto Rico, was convicted by a jury on May 29, 2013, of conspiracy to commit federal programs bribery, bribery, conspiracy to commit extortion and attempted extortion. Josue Becerril-Ramos, 36, of Carolina, Puerto Rico, pleaded guilty to all four counts on May 17, 2013, midway through his trial. Arroyo was sentenced to serve 63 months in prison, and Becerril was sentenced to serve 60 months in prison.
Arroyo and Becerril arrested eight individuals for possessing unregistered firearms and marijuana on Aug. 2, 2012. The officers then solicited from one defendant a bribe payment of $50,000 to have his case dismissed. Beginning on Sep. 11, 2012, both officers spoke with the defendant multiple times over the telephone, discussing payment details and strategies for dismissing the defendant’s case.
Arroyo and Becerril collected approximately $35,000 of the $50,000 demanded from the defendant in two different payment installments. Unbeknownst to the officers, however, the individuals who dropped off the payments were cooperating with federal law enforcement.
In exchange for the bribes, Arroyo and Becerril devised a plan whereby the officers would misidentify a co-defendant in court, leading to the dismissal of the defendant’s case. When asked under oath at the preliminary hearing to identify the defendant, Arroyo instead identified a co-defendant. Arroyo confirmed to the defendant following the hearing that he deliberately misidentified the co-defendant as part of the plan to have the defendant’s case dismissed.
The case was investigated by the FBI’s San Juan field office. The case was prosecuted by Trial Attorneys Menaka Kalaskar and Marquest J. Meeks of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Timothy Henwood of the District of Puerto Rico.
Former Mingo Co. Prosecuting Attorney Pleads Guilty to Federal Rights ViolationRead the Press Release
Michael Sparks is the third former Mingo official to plead guilty in connection with federal corruption probe
*Audio clip included*
CHARLESTON, W.Va. - Former Mingo County Prosecuting Attrorney C. Michael Sparks entered a guilty plea in federal court in connection with a conspiracy to deprive a Mingo County resident of his constitutional rights, U.S. Attorney Booth Goodwin announced today. Sparks, 44, is the third former Mingo County official to plead guilty to federal charges involving a scheme to cover up evidence of illegal drug use and other misconduct by late Mingo County Sheriff Eugene Crum.
U.S. Attorney Booth Goodwin said, “Prosecutors are the representatives of the people. Instead of advancing the interests of the good people of Mingo County, Mr. Sparks chose to roll over for the special interests of a corrupt political faction.”
Earlier this year, a Mingo County drug defendant, identified as “G.W.,” began to provide the Federal Bureau of Investigation (FBI) with information about misconduct by then Sheriff Crum, including illegal drug use and election law violations. Crum learned that G.W., along with G.W.’s attorney, were providing information about Crum to the FBI. Crum and other Mingo elected officials, including Sparks and former Mingo Co. Circuit Judge Michael Thornsbury, carried out a plan to protect Crum and to stop G.W. from informing to the FBI. They arranged to offer G.W. a favorable plea deal if he would fire his attorney, identified as “C.W.,” who was assisting G.W.’s communication with federal authorities, and replace him with an attorney chosen by Crum and the other elected officials.
After G.W. fired C.W., Mr. Sparks entered into a plea agreement with G.W. under which three of five criminal counts pending against G.W. were dismissed. As part of the plea agreement, Mr. Sparks also accepted a forfeiture from G.W. of $10,000, which was $10,000 less than the forfeiture Mr. Sparks originally intended to seek from G.W. Moreover, as part of the agreement, Mr. Sparks agreed to recommend that the sentences for the two counts to which G.W. would plead guilty would run concurrently rather than consecutively. Mr. Sparks negotiated this plea agreement in part with former Mingo County Commissioner David Baisden himself and, at Baisden's behest, entered into a plea agreement more favorable that he otherwise would have. Mr. Sparks did these acts knowing that a more favorable agreement for G.W. was a necessary part of the scheme to coerce G.W. into firing C.W. in order to protect the Sheriff. Because Mr. Sparks was the county's Prosecuting Attorney, his cooperation in this regard was necessary to the scheme's success.
In the face of this coercion, G.W. fired his attorney, which the Mingo officials involved believed would protect Crum from federal investigation and public embarrassment.
United States District Court Judge Thomas E. Johnston presided over today’s plea hearing and will sentence Sparks on February 24, 2014. Sparks faces a year in prison. Sparks previously resigned as Prosecuting Attorney of Mingo County in late October. As part of his federal guilty plea, Sparks' plea agreement with the Office of the U.S. Attorney required him to resign as Mingo County’s Prosecuting Attorney and never seek elected office again. Sparks is also required to voluntarily surrender his license to practice law in every state in which he holds a law license, and withdraw his opposition to the petition seeking the immediate suspension of his law license in the State of West Virginia. Sparks also agrees not to contest disbarment proceedings in any state in which he is licensed to practice law.
Former Mingo County Circuit Judge Michael Thornsbury, 57, previously pleaded guilty in October for his role in the scheme to protect Crum and deprive G.W. of his rights. Thornsbury faces up to 10 years in prison when he is sentenced on January 13, 2014.
Former County Commissioner David Baisden pleaded guilty to an unrelated federal charge in connection with a scheme to illegally extort a discount from a Mingo County tire store. Baisden, 66, resigned from the Mingo County Commission in October. Baisden faces up to 20 years in prison when he is sentenced on January 14, 2014.
The investigation is being conducted by the FBI and the West Virginia State Police. Counsel to the United States Attorney Steven Ruby and Assistant United States Attorney Haley Bunn are handling the prosecution.
Click here to listen to an audio sound clip from U.S. Attorney Booth Goodwin
Former Marin County Mortgage Brokers Indicted for $2.4 Million FraudRead the Press Release
SAN FRANCISCO – A federal Indictment charging Diane Cobb and Paul Sloane Davis with fifteen counts of conspiracy, mail fraud, and wire fraud, and charging Diane Cobb with five counts of aggravated identity theft, was unsealed today in federal court, announced United States Attorney Melinda Haag.
Cobb, 56, and Davis, 74, were indicted by a federal grand jury on October 31, 2013. According to the Indictment, Cobb and Davis operated a financial services company in Marin County known as DM Financial. Through DM Financial, Cobb and Davis offered investors the opportunity to fund purported short-term “bridge loans” to borrowers who, according to Cobb and Davis, needed short-term financing for residential real estate transactions. Cobb and Davis allegedly fraudulently provided to these investors, among other things, the identity of the purported borrower, a promissory note reflecting the amount and terms of the loan, and a deed of trust securing the loan to the borrower’s real property. Based upon these documents and other representations made by Cobb and Davis, the investors believed that Cobb and Davis were directing their funds into secured loans with borrowers.
The Indictment further alleges that, in fact, the purported borrowers received none of the investors’ money, and did not even know that their identities were being used to solicit investments. Instead, Cobb and Davis allegedly diverted substantially all the money—approximately $2.4 million—for their own personal use or to make interest payments to prior investors to keep them from discovering the true nature of the scheme.
Cobb and Davis were arrested on November 13, 2013, in Las Vegas, Nevada. They both made their initial appearances in federal court in Las Vegas on that day, when they were released on bond. Bail was set at $100,000. Cobb and Davis are next scheduled to appear on November 26, 2013, at 9:30 a.m., for their initial appearance in the Northern District of California, before The Honorable Jacqueline Scott Corley, United States Magistrate Court Judge, in San Francisco.
The maximum statutory penalty for each count of mail fraud, wire fraud, and conspiracy, in violation of Title 18, United States Code, Sections 1341, 1343, and 1349, respectively, is 20 years’ imprisonment and a fine of $250,000 or twice the gross gain or loss from the offense, plus restitution. The statutory penalty for each count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1), is two years’ imprisonment. 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.
Thomas Stevens and Benjamin Kingsley are the Assistant United States Attorneys who are prosecuting the case, with the assistance of Phillip Villanueva and Rayneisha Booth. The prosecution is the result of a one year investigation by the Federal Bureau of Investigation.
Please note, an indictment contains only allegations against an individual and, as with all defendants, Diane Cobb and Paul Davis must be presumed innocent unless and until proven guilty.
(Cobb and Davis unsealed indictment )
Former Atlanta Investment Advisor Sentenced to Federal Prison for Embezzling More Than $2.5 Million from ClientsRead the Press Release
ATLANTA – Benjamin Daniel DeHaan has been sentenced on charges arising out of a scheme to defraud more than 50 clients.
“This defendant may have started out as a legitimate investment advisor, but he got greedy and began stealing from those who trusted him with their investments,” said United States Attorney Sally Quillian Yates. “He diverted money from his clients’ accounts and used it to fund a lavish lifestyle. Now he is headed to prison and will never work in the securities industry again.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “The level of greed and disregard for his clients earns this defendant a place in prison. While the FBI will continue to go after such individuals for investor related fraud, the damage to those investing is already done and all that is often left is the solace provided by a stiff prison sentence.”
According to United States Attorney Yates, the charges and other information presented in court: DeHaan owned and operated Lighthouse Financial Partners, LLC, an investment advisory service in Atlanta, Ga. He recruited investors by posting a series of videos on Lighthouse’s website and on YouTube. DeHaan told investors that he had developed a proprietary software program that allowed him to determine when to buy and when to sell a particular stock. Approximately 114 people entrusted him with money to invest on their behalf. At its peak, Lighthouse had approximately $6.7 million in assets under management.
From January 2010 through May 2012, DeHaan misappropriated and converted to his own use more than $2.5 million of his clients’ money. He used the fraud proceeds to purchase a new house for himself in Memphis, Tenn., and to purchase partial ownership of a restaurant and bar in Memphis. DeHaan also used his clients’ money to fund an investment account in his own name and to pay Lighthouse’s overhead and operating expenses. He attempted to cover-up his theft by emailing fraudulent account statements to investors. This provided victims a false sense of security and delayed their complaints to law enforcement.
Benjamin Daniel DeHaan, 37, of Decatur, Ga., was sentenced by United States District Judge Steve C. Jones to seven years and three months in federal prison, and was remanded immediately to the custody of the U.S. Marshal. He will serve three years of supervised release following his prison term, and was ordered to pay $6,931,619.13 in restitution to the victims. On February 1, 2013, DeHaan pleaded guilty to a Criminal Information charging him with wire fraud.
This case was investigated by Special Agents of the Federal Bureau of Investigation.
Assistant United States Attorney Russell Phillips prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Five New Arrests in $45 Million International Cyberheist CaseRead the Press Release
BROOKLYN, NY – Earlier today, five defendants were arrested in connection with their participation in the massive cyberheist campaign that inflicted $45 million in losses on the global financial system in a matter of hours in early 2013. Defendants Anthony Diaz, Saul Franjul, Saul Genao, Jaindhi Polanco and Jose Angeley Valerio were members of the New York-based cell of the international cybercrime organization, which used sophisticated intrusion techniques to hack into the systems of financial institutions, steal prepaid debit card data, and make fraudulent ATM withdrawals on a global scale. Newly seized photographic evidence reveals that the defendants sent the lion’s share of the proceeds to the organization’s leaders – including $800,000 of criminal cash proceeds sent in luggage and transported to Florida by bus for delivery to a cyberheist organizer.
The superseding indictment unsealed today charges the five arrested defendants with conspiracy to commit access device fraud. They will be arraigned at 2 p.m. today before United States Magistrate Judge Robert M. Levy at the U.S. District Court in the Eastern District of New York.1 Three of the original defendants, Jael Collado, Jose Familia Reyes and Chung Yu-Holguin, are also charged in the superseding indictment unsealed today. Four other defendants, Joan Luis Minier Lara, Evan Jose Peña, Elvis Rodriguez and Emir Yasser Yeje have pleaded guilty to charges resulting from the cyberheist. The eighth original defendant, Alberto Yusi Lajud-Peña, is deceased.
The charges and arrests were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Steven G. Hughes, Special Agent in Charge, United States Secret Service, New York Field Office.
“As alleged, just a few months ago, after exploiting cyber-weaknesses in the financial system to steal millions from ATMs, these defendants were packing bags to the brim with stolen cash, destined for the cybercriminal organizers of these attacks,” stated United States Attorney Lynch. “Today, we have sent them packing once again – but this time, to jail. We will not relent until all those responsible for these financially devastating cybercrimes are brought to justice.”
“This case is another example of the ability of cybercriminals to inflict significant damage to world financial systems. This investigation and the resulting indictments should serve as a reminder to cybercriminals that law enforcement will continue to utilize cutting-edge investigative techniques, traditional tactics and hard work to thwart complex transnational cybercriminal activity. We are grateful to our many law enforcement partners for their assistance in this investigation, in particular the U.S. Attorney’s Office in the Eastern District of New York, DHS Homeland Security Investigations, and our foreign law enforcement partners,” stated Secret Service Special Agent in Charge Hughes.
As alleged in the superseding indictment and other court filings, the defendants arrested today and their co-conspirators in this case engaged in cyberattacks known in the cyber underworld as “Unlimited Operations” – through its hacking “operation,” the cybercrime organization can access virtually “unlimited” criminal proceeds.
Defendants Anthony Diaz, Saul Franjul, Saul Genao, Jaindhi Polanco and Jose Angeley Valerio allegedly participated in two recent “Unlimited Operations” of staggering size. During the first operation, on December 22, 2012, hackers penetrated a credit card processor’s computer network, compromised prepaid debit card accounts of the National Bank of Ras Al-Khaimah PSC, also known as RAKBANK, and operated a coordinated ATM withdrawal campaign. In total, more than 4,500 ATM transactions were conducted in approximately 20 countries around the world, resulting in approximately $5 million in losses. In the second and even more damaging Unlimited Operation, which occurred on February 19-20, 2013, the hackers compromised prepaid debit card accounts associated with Bank Muscat, and operated a coordinated ATM withdrawal campaign. Over the course of approximately 10 hours, cybercells in 24 countries withdrew about $40 million from ATMs.
As alleged, as part of the RAKBANK and Bank Muscat campaigns, Diaz, Franjul, Genao, Polanco and Valerio operated the New York cell of “cashers,” who fanned out across the New York area to make thousands of withdrawals from ATMs. During the two operations, over the course of a few hours, the defendants and their co-conspirators withdrew approximately $2.8 million at over 140 different ATM locations in New York City. The defendants sent the bulk of the cash proceeds back to the organizers of the attacks.
As alleged in court filings and captured in a photograph seized from a conspirator’s iPhone, on March 2, 2013, just days after the Bank Muscat Unlimited Operation, defendant Franjul packed approximately $800,000 in cash into luggage destined for the late Alberto Yusi Lajud-Peña, who was then in Miami. Franjul’s co-conspirators took the cash-filled luggage on a bus to Florida, where they gave the cash to Lajud-Peña, who later fled to the Dominican Republic. New York cell members also used the funds to celebrate at high-priced nightclubs and go on shopping sprees for luxury goods, such as expensive watches and cars, many of which have been seized in the course of this investigation.
In announcing the arrests and charges, United States Attorney Lynch praised the extraordinary efforts of the Secret Service in responding to these attacks and investigating both the complex network intrusions that occurred overseas and the criminal activity occurring locally, and also expressed gratitude to U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) in New York, and the Yonkers Police Department for their assistance in this investigation. Ms. Lynch also thanked MasterCard, RAKBANK and Bank Muscat for their cooperation with this investigation.
Diaz, Franjul, Genao, Polanco and Valerio face up to 7.5 years in prison on the charge of access device fraud conspiracy, as well as forfeiture and a fine of up to $250,000.
The government’s case is being prosecuted by Assistant United States Attorneys Cristina Posa, Hilary Jager, David Sarratt, and Brian Morris.
The Defendants:
ANTHONY DIAZ
Age: 24
Residence: Yonkers, New YorkSAUL FRANJUL, also known as “Conejo”
Age: 23
Residence: Yonkers, New YorkSAUL GENAO, also known as “Cocolito” and “Ely Genao”
Age: 24
Residence: Yonkers, New YorkJAINDHI POLANCO
Age: 29
Residence: Yonkers, New YorkJOSE ANGELEY VALERIO, also known as “Zikkytakki”
Age: 25
Residence: Yonkers, New York_____________________________
1 A sixth defendant, Franklyn Ferreira, is a fugitive from justice. The charges contained in the indictment are merely allegations, and the defendants, including those charged today, are presumed innocent unless and until proven guilty.
Cyberheist Indictment
First of Five "NifyFifty's" Owners Sentenced for Tax Evasion SchemeRead the Press Release
PHILADELPHIA - Robert Mattei, (75), of Del Ray Beach, Florida, a co-owner of the ANifty Fifty=s@ restaurant chain, was sentenced today to 15 months in prison for his role in a tax evasion conspiracy that cheated the Internal Revenue Service by failing to properly account for more than $15 million in gross receipts. Mattei pleaded guilty in May of 2012 to conspiracy, tax evasion, and bank fraud. Mattei, along with co-defendants Leo McGlynn, Brian Welsh, Joseph Donnelly, and Elena Ruiz, all of whom also pleaded guilty, constructed a long-running scheme to avoid paying millions of dollars in personal and employment taxes as related to their restaurant chain. The defendants not only evaded paying the taxes they owed, they filed income tax returns claiming they were due refunds based on the erroneous reporting of their incomes.
The restaurant owners evaded paying taxes since the restaurant was established in 1986 by, among other things, paying employees a portion of their wages with unreported cash in order to evade payroll taxes; paying suppliers with unreported cash; and having false tax returns prepared that under-reported income and falsely inflated expenses and deductions. Just between the years 2006 and 2010, the defendants deliberately failed to properly account for $15.6 million in gross receipts, thereby evading $2.2 million in federal employment and personal taxes. In the course of their conspiracy, Mattei, McGlynn, Donnelly, and Welsh committed bank fraud by submitting to the bank bogus income tax returns in order to secure several business loans.
In addition to the prison term, U.S. District Court Judge Mary McLaughlin ordered restitution. To date, the IRS has received $4,336,871 in tax payments and an additional $205,300 in forfeiture payments.
Co-defendant Leo McGlynn will be sentenced on November 19, 2013; co-defendant Joseph Donnelly will be sentenced November 20, 2013; co-defendants Elena Ruiz and Brian Welsh will be sentenced November 21, 2013.
This case was investigated by the Internal Revenue Service Criminal Investigation Division and the FBI. It is being prosecuted by Assistant United States Attorneys Nancy E. Potts and Paul G. Shapiro.
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Federal False Claims Complaint Filed Against Former Blackfeet Tribal ChairmanRead the Press Release
The United States Attorney's Office announced that it has filed a False Claims Act complaint against former Blackfeet Tribal Chairman Patrick Charles Thomas in federal court. The civil complaint seeks over $944,000 in damages.
Thomas, a lifelong resident of the Blackfeet Reservation, served on the Blackfeet Tribal Business Council, the governing body of the Blackfeet Tribe, from 2004 to 2008; first in the position of Vice Chairman and then as Chairman.
The complaint relates to a December 2011 claim by Thomas against the Keepseagle v. Vilsak settlement fund. In Keepseagle v. Vilsak, Civil Action No. 1:99 CV 03119 (DDC) (EGS), a class action lawsuit was pursued by Native American farmers and ranchers who alleged that they had been discriminated against by the U.S. Department of Agriculture (USDA) and that they had been denied equal access to credit in the USDA Farm Loan Program. As a result of that lawsuit, on April 28, 2011, a $760 million settlement with the USDA was approved, a settlement fund was established, and claims were entertained from individual Native American producers who asserted that they had been discriminatorily aggrieved by the USDA in the lending process.
The Native American farmers and ranchers entitled to file a claim and receive relief under the settlement were producers who:
Farmed or ranched or attempted to farm or ranch between January 1, 1981 and November 24, 1999;
Sought, or attempted to seek, a farm loan from the USDA during that period;
Had their application denied, provided late, approved for a lessor amount than asked, was encumbered by restrictive conditions, or failed to have appropriate loan servicing;
Complained about discrimination to the USDA during the same time period; and
Suffered economic harm attributable to USDA actions.
Successful claimants were eligible to receive a payment of up to $50,000 and forgiveness of some or all outstanding USDA loans.
In its civil complaint, the United States seeks damages from Thomas based upon his claim that he was discriminated against by the Farm Service Agency (FSA) and that he had met the criterion relating to complaining to USDA about discrimination during the time period. The United States alleges that the claims were untrue and that Thomas would not have been able to share in the settlement if he had been honest.
As a result of his successful claim, the complaint alleges, the FSA forgave $201,917.53 in agricultural loan indebtedness, paid him a $50,000 award, and then paid Thomas's income tax liability on the loan forgiveness and the cash award in the amount of $62,979.38, for a total loss to the United States of $314,896.91. The False Claims Act allows the United States to recover three times the actual loss amount so the total demand is $944,690.73.
United States Attorney Mike Cotter stated:
The Keepseagle settlement fund was established by the Department of Agriculture to remedy a bona fide complaint that Native American producers had been treated unfairly in agricultural lending practices. Like all fraud, waste, and abuse in government programs, a fraudulent claim to a share of that fund diminishes the opportunity for the truly aggrieved to be properly compensated. And it undermines the integrity of the judicial system. This office is committed to holding false actors accountable and maintaining the confidence of the public in our ability to stem the tide of litigation fraud."
Englishtown, N.J., Pharmacy Burglar Sentenced to 63 Months in Prison for Conspiracy to Sell Stolen OxycodoneRead the Press Release
TRENTON, N.J.– A Brooklyn, N.Y., man was sentenced today to 63 months in prison for his involvement in a plot to burglarize a pharmacy in Englishtown, N.J., and sell the stolen narcotics for cash, U.S. Attorney Paul J. Fishman announced.
James Zarbailov, 23, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with one count of conspiracy to distribute and possess with intent to distribute oxycodone. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
The Union Hill-Supremo Pharmacy in Englishtown was burglarized shortly after 4:00 a.m. on June 17, 2012. Zarbailov and his fellow conspirators filled 17 garbage bags and two cardboard boxes with merchandise from the pharmacy, including approximately 1,988 dosage units of methylphenidate, 500 dosage units of hydromorphone, 300 dosage units of Opana (a trade name for oxymorphone) and 3,800 dosage units of oxycodone – all Schedule II controlled substances.
The stock lost by the pharmacy was valued at approximately $350,000.
Zarbailov admitted that he stole the drugs, and that he did so knowing they would be sold for profit.
In addition to the prison term, Judge Wolfson sentenced Zarbailov to serve three years of supervised release and ordered him to pay $334,722.12 in restitution.
Two of Zarbailov’s conspirators, David Mordukhaev, 22, and Dzheykhun Avshalumov, 24, both of Brooklyn, have previously pleaded guilty to the same charge. Mordukhaev’s sentencing is scheduled for Dec.3, 2013, and Avshalumov’s sentencing is scheduled for Dec. 19, 2013.
U.S. Attorney Fishman credited special agents of the FBI’s Red Bank Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and law enforcement officers from the Marlboro Township Police Department, under the direction of Police Chief Bruce E. Hall, for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney John E. Clabby of the U.S. Attorney’s Office Criminal Division in Trenton.13-439
Defense counsel: Sanford Talkin Esq., New YorkEight Individuals Sentenced in Federal CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
MARTINSBURG, WEST VIRGINIA – Eight individuals were sentenced by Judge Gina M. Groh according to United States Attorney William J. Ihlenfeld, II.
DONALD TILLOTSON, age 36, of Burlington, West Virginia, was sentenced to 96 months in prison and three years of supervised release for “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine.” TILLOTSON’s sentence reflects an enhancement for using a shake and bake method to manufacture methamphetamine, which caused a substantial risk to four minor children. The Court also ordered TILLOTSON to make restitution in the amount of $1,050.31 to the West Virginia Department of Environmental Protection for the cleanup. TILLOTSON was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was prosecuted by Assistant U.S. Attorney Stephen D. Warner and investigated by the Potomac Highlands Drug & Violent Crime Task Force, consisting of officers from the Federal Bureau of Investigation, and the West Virginia State Police - Bureau of Criminal Investigations.
DERRICK STANFORD SPENCER, age 35, of Martinsburg, was sentenced to 84 months in prison and three years of supervised release for “Possession with Intent to Distribute Crack Cocaine.” SPENCER was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was prosecuted by Assistant U.S. Attorney Paul T. Camilletti and investigated by the Eastern Panhandle Drug & Violent Crime Task Force, consisting of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, the Berkeley County Sheriff’s Department, and the Jefferson County Sheriff’s Department.
MICHAEL SHAVAR PAYTON, age 28, and DEHAVEN DARNELL CRAIG, age 28, both of Martinsburg, were each sentenced to 60 months in prison and four years of supervised release for “Distribution of Crack Cocaine.” PAYTON and CRAIG were remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was prosecuted by Assistant U.S. Attorney Jarod J. Douglas and investigated by the Eastern Panhandle Drug & Violent Crime Task Force.
DORIAN WILSON, age 25, of Martinsburg, was sentenced to 57 months in prison and three years of supervised release for “Possession with Intent to Distribute Crack Cocaine.” WILSON was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was prosecuted by Assistant U.S. Attorney Brandon S. Flower and investigated by the Eastern Panhandle Drug & Violent Crime Task Force.
FRANK BRINKMEYER, age 43, of Falling Waters, West Virginia, was sentenced to 41 months in prison and three years of supervised release for “Distribution of Heroin.” BRINKMEYER was remanded to the custody of the United States Marshal pending designation to a Federal institution.
MICHAEL SMITH, age 39, of Falling Waters, was sentenced to 37 months in prison and three years of supervised release for “Distribution of Heroin.” SMITH was remanded to the custody of the United States Marshal pending designation to a Federal institution.
PATRICIA BRINKMEYER, age 43, of Falling Waters, was sentenced to three years of probation for “Distribution of Heroin.”
This case was prosecuted by Assistant U.S. Attorney Robert H. McWilliams, Jr. and investigated by the Eastern Panhandle Drug & Violent Crimes Task Force.
Eagle Butte Woman Sentenced for Accessory After the FactRead the Press Release
United States Attorney Brendan V. Johnson announced that Alex White Eyes, a 24-year-old woman from Eagle Butte, South Dakota, pled guilty to Accessory After The Fact and was sentenced on November 14, 2013, by U.S. Magistrate Judge Mark A. Moreno.
White Eyes was sentenced to 3 years of probation and a $10 assessment to the Federal Crime Victims Fund
In September 2012, White Eyes, knowing that an offender had committed the crime of Assault of a Minor in Indian country, hindered and prevented the offender’s apprehension for trial and punishment by failing to provide this information to the Cheyenne River Sioux Tribal Law Enforcement Department and the South Dakota Department of Social Services.
The investigation was conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribal Law Enforcement Department. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Eagle Butte Man Charged with Assaulting Federal Officers and Firearm Possession ViolationsRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury.
Jason Todd Garreau, age 27, was indicted by a federal grand jury on November 5, 2013, for Assaulting, Resisting, and Impeding Federal Officers; Possession of a Firearm During a Crime of Violence; and Felon in Possession of a Firearm.
Garreau appeared before U.S. Magistrate Judge Mark A. Moreno on November 8, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life of imprisonment and/or a $250,000 fine, 5 years of supervised release, an additional 3 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 Garreau is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and several other law enforcement agencies. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Garreau was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Dustin Jay After Buffalo Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on November 14, 2013, before Chief U.S. District Judge Dana L. Christensen, DUSTIN JAY AFTER BUFFALO, an enrolled member of the Blackfeet Tribe, was sentenced to a term of:
- ison: 12 months and 1 day
- ecial Assessment: $100
- pervised Release: 3 years
AFTER BUFFALO was sentenced in connection with his guilty plea to burglary.
In an Offer of Proof filed by Assistant U.S. Attorney Ryan G. Weldon, the government stated it would have proved at trial the following:
On February 4, 2012, "Jane Doe" was in Great Falls because her father was in the hospital. Three individuals walked by her residence in Browning, which was located within the exterior boundaries of the Blackfeet Indian Reservation.
On February 4, 2012, a neighbor was out on his porch and observed three male individuals walking by his neighbor(s residence. While he saw the three individuals walking by the residence, he did not see them pass by. He then heard three kicks and he knew that someone was breaking into "Jane Doe's" residence. He told his wife to call their son who is an officer with the Blackfeet Law Enforcement Services.
His wife called their son and then she grabbed her camera. When their son, the officer, pulled up, the officer and the neighbor went into "Jane Doe's"s residence. The neighbor's wife then took pictures of all three individuals running out of the house. The burglary occurred in broad daylight.
The individuals who broke into the house then climbed the fence, and one escaped. AFTER BUFFALO and Michael Bad Old Man were caught. Bad Old Man had items in his pockets. While waiting for law enforcement to arrive, Bad Old Man stated that he was going to kill the neighbor and the officer when he gets out of jail.
After backup arrived, the officer took pictures of "Jane Doe's" front door to the residence. The door was damaged. The officer stated that he was able to identify all three defendants by name when he saw them in the residence. In particular, the one who had escaped because he is aware of and knows the individual.
When questioned, AFTER BUFFALO stated that he did not remember the incident because he was high on methamphetamine. AFTER BUFFALO however acknowledged that he "come to" while he was in the house. He stated that after entering the house, the other two individuals started throwing things in their pockets and ordering AFTER BUFFALO to do the same. AFTER BUFFALO stated that Bad Old Man kicked the door in and he claimed that the other two were going to beat him up if he did not go in there with them. AFTER BUFFALO stated that when the cops showed up he ran outside the back door, jumped a fence, and that the officer "beat him up with a bat." AFTER BUFFALO then identified all 3 individuals in the photos the neighbor's wife had taken. AFTER BUFFALO claimed that he never took anything from the house but stated that he did eat a sandwich in the house.
Bad Old Man pled guilty to federal charges.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that he will likely serve all of the time imposed by the court. In the federal system, he 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.
Dominican Doctor and Assistant Arrested for Conspiring to Alter Fingerprints of Previously Deported AliensRead the Press Release
BOSTON – A Dominican doctor and his assistant were arrested for conspiring to harbor illegal aliens by altering their fingerprints through a surgical process.
Danilo Montero Ramirez, 61, and Teresa Araujo Martinez, 40, were arrested on November 16 for conspiracy to harbor illegal aliens and conspiracy to distribute controlled substances.
Earlier this month, federal agents became aware that Montero Ramirez, a licensed medical doctor in the Dominican Republic, was coming in the United States to meet with previously deported aliens and perform surgery on their hands to alter their fingerprints. Convicted criminals alter their fingerprints to help conceal their true identities from law enforcement and to disassociate themselves from their prior criminal history.
During the week of November 12, Montero Ramirez arrived in the United States from the Dominican Republic and arranged to perform surgery on individuals for $4,500. Montero Ramirez and Araujo Martinez made arrangements to perform the surgery on Nov. 16. Montero Ramirez and Araujo Martinez were arrested before the surgery began. Had the surgery taken place, these individuals would have been given controlled substances by Araujo Martinez. At the time of the arrests, agents seized surgical cutting equipment, gauze, bandages, syringes and prescription medication from the defendants. Araujo Martinez, also a Dominican citizen, was found to be in possession of a large quantity of pain medication, including Oxycodone and other substances.
If convicted on the charge of conspiracy to distribute a controlled substance, the defendants face a maximum of 20 years in prison, a fine of $1 million and three years of supervised release. If convicted on the charge of conspiracy to harbor aliens, the defendants face a maximum sentence of 10 years in prison, three years of supervised release, and a fine of $250,000.
United States Attorney Carmen M. Ortiz and Bruce Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston, made the announcement today. The case is being prosecuted by Kenneth G. Shine of Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Dodge City Gang Member Sentenced in Racketeering CaseRead the Press Release
WICHITA, KAN. – A Dodge City man has been sentenced to 21 months in federal prison for assault with a dangerous weapon in connection with a federal racketeering case, U.S. Attorney Barry Grissom said today
Andrew Gusman, 21, Dodge City, Kan., pleaded guilty to assault with a dangerous weapon, which was a violent crime in aid of racketeering. In his plea, Gusman admitted that on March 30, 2011, he was with fellow Norteno gang members including co-defendants Alfonso Banda-Hernandez, Enrique Gobin and Jesus Sanchez.At a Love=s convenience store in Dodge City, they encountered George Gonzalez, who was a member of the rival Sureno gang. They threw gang signs at Gonzales and attempted to start a fight.
Later that day, they again encountered Gonzalez and began chasing his car. Gusman and Banda-Hernandez were in one car, and Gobin and Sanchez were in another car. During the case, Sanchez fired shots at Gonzalez. After the shooting, the four defendants met outside of town.
Gusman was one of 23 Norteno members to be indicted in May 2012. It was only the second time a federal RICO Act indictment (Racketeer Influenced and Corrupt Organizations Act) had been filed in Kansas. Twenty defendants have been convicted so far.
Grissom commended the Dodge City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ford County Sheriff's Office, the Kansas Bureau of Investigation, Assistant Aaron Smith and Assistant U.S. Attorney Lanny Welch for their work on the case.
District Man Sentenced to Six Years in Prison for Pair of Violent Crimes in Northeast WashingtonDefendant Assaulted Man at Bus Stop; Weeks Later, He Forced His Way into an Apartment at GunpointRead the Press Release
WASHINGTON – Steven Warren, 20, of Washington, D.C., has been sentenced to six years in prison on charges stemming from an assault that took place in June 2013 and a home invasion that occurred several weeks later, U.S. Attorney Ronald C. Machen Jr. announced.
Warren pled guilty in September 2013, in the Superior Court of the District of Columbia, to first-degree burglary, carrying a pistol outside the home or place of business, and assault with significant bodily injury. He was sentenced on Nov. 15, 2013 by the Honorable Patricia A. Broderick. Following his prison term, Warren will be placed on five years of supervised release.
According to the government’s evidence, the first crime took place about 3:20 a.m. on June 9, 2013, when Warren and two other men assaulted two people who were waiting at a bus stop in the 1900 block of West Virginia Avenue NE. While the assault was taking place, officers from the Metropolitan Police Department (MPD) entered the block, and Warren and the others fled on foot. The officers caught Warren about a block away. Warren punched one of the victims during the attack. The victim suffered a fracture of the left orbital bone of his eye.
Following his arrest, Warren was placed on high-intensity release pending further court proceedings. He was on release on Aug. 1, 2013, when he staged the home invasion. That day, at about 10:30 a.m., Warren attacked a man as he was leaving an apartment in the 1600 block of Montello Avenue NE. The man had been visiting another man, still inside the apartment.
Warren, who was standing in the foyer with a handgun by his waist, ordered the man back into the apartment. Once inside, he pointed the gun at the man’s face, and demanded money. The man handed over some cash, but Warren demanded more.
At that point, Warren forced the man into a bedroom. The second victim, meanwhile, had been hiding in this room, and he had managed to call 911 to report the break-in. Warren encountered this man in the bedroom, and he forced both of the victims to sit on the bed. Warren’s cellphone then rang and the victims heard Warren talking to an unknown individual about the fact that the police were surrounding the premises. Warren put the gun in the waist of his pants and went out of the back door, only to be arrested by quick-responding officers from the MPD. He has been in custody ever since.
In announcing the sentence, U.S. Attorney Machen recognized the outstanding efforts of the detectives and officers from the Metropolitan Police Department who investigated the case, as in both instances the quick actions of the first arriving officers were critical. He also acknowledged the efforts of Paralegal Specialist Todd McClelland. Finally, he commended the work of Assistant U.S. Attorney James Ewing, who prosecuted the case.
13-398Director Indicted for Stealing $385,000 from Home for Disabled PersonsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the director of a program that provided a home for disabled persons in Higginsville, Mo., has been indicted by a federal grand jury for embezzling more than $385,000 from the organization.
Terri Arlene Marr, 50, of Warrensburg, was charged in a 22-count indictment returned by a federal grand jury in Kansas City, Mo., on Friday, Nov. 15, 2013.
Marr was the director of the Progressive Alternative Living, Inc. (PAL) from 1991 through 2013. PAL is an organization that operates a home in Higginsville for disabled persons in need of assistance. PAL receives reimbursement for many of these individuals from Medicaid. Marr was responsible for keeping strict and accurate accounts of all money received by and disbursed for and on behalf of PAL.
The indictment alleges that Marr made payments on her personal credit cards out of the PAL bank account and issued payroll checks to an unindicted co-conspirator (who is not identified in the indictment) who had not performed any work or services for PAL. These payroll checks total approximately $175,400 from 2001 through 2013. PAL also paid approximately $10,600 in taxes (Social Security, Medicare, Missouri unemployment, and Federal unemployment) on behalf of the unindicted co-conspirator.
The federal indictment charges Marr with 16 counts of stealing from a health care benefit program by issuing checks for personal expenses to which she was not entitled from Progressive Alternative Living. Marr is also charged with six counts of stealing from a health care benefit program by issuing payroll checks to the unindicted co-conspirator from Progressive Alternative Living.
The indictment also contains a forfeiture allegation, which would require Marr to forfeit to the government any property derived from the proceeds of the offenses, including a money judgment of $385,218, which represents the proceeds of the alleged offenses.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the FBI and the Higginsville, Mo., Police Department.Department of Justice Announces Investigation of the St. Louis County Family CourtRead the Press Release
The Justice Department announced today that it has opened a pattern or practice investigation of the Family Court of St. Louis. The investigation will focus on whether the court provides constitutionally required due process to all children appearing for delinquency proceedings and whether the court’s administration of juvenile justice provides equal protection to all children regardless of race.
This investigation will include a comprehensive review of policies, procedures, court documents and statistical data. As part of this investigation, the department will reach out to juvenile justice stakeholders, including community members and groups with knowledge of the Family Court’s processes.
“Protecting the constitutional rights of all children appearing in court is critical to achieving our goals of improving juvenile courts, increasing the public’s confidence in the juvenile justice system and maintaining public safety,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “During the course of this investigation, we will consider all relevant information, particularly any efforts the court has undertaken to ensure compliance with the Constitution and federal law.”
The department will conduct the investigation using its authority under Section 14141 of the Violent Crime Control and Law Enforcement Act of 1994, which prohibits a pattern or practice of deprivation of civil rights for juveniles in the administration of juvenile justice, and Title VI of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race, color or national origin by recipients of federal financial assistance. The department has conducted similar investigations in other jurisdictions, and most recently obtained important reforms in its investigation of the Juvenile Court of Memphis and Shelby County, Tennessee.
The Special Litigation Section of the Civil Rights Division is conducting this investigation. Individuals with relevant information are encouraged to contact the department via email at [email protected] or by phone at 855-228-2151.
Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt .
Contractor Pleads Guilty to Securities and Commodities FraudRead the Press Release
DALLAS — On the day his trial was to begin in federal court in Dallas, Brian Marshall, 49, of Tampa, Fla., pleaded guilty to one count of securities and commodities fraud, stemming from his scheme to defraud investors in connection with the sale of Home Solutions of America, Inc. stock, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Marshall was a vice-president and a member of the board of Home Solutions of America, Inc., a NASDAQ-traded company that was based in Dallas before it relocated to New Orleans, La. in July 2008. Home Solutions was in the business of construction and restoration, including new construction and restoration following natural disasters such as hurricanes. Home Solutions conducted some of its business through its largest subsidiary, Fireline Restoration, Inc., which was based in Tampa. Marshall was the president of Fireline. Frank J. Fradella of Covington, Louisiana, who was the CEO of Home Solutions, pleaded guilty to securities fraud in the Eastern District of Louisiana, and is awaiting sentencing.
In plea documents filed last week, Marshall admitted that between December 2006 and August 15, 2007, he ran a scheme to defraud public investors by fabricating false and fictitious revenue, operating income and costs in connection with a series of construction contracts in Tampa. Marshall caused Fireline to enter into construction contracts with private companies that he wholly or partially owned, including a $4 million contract for the construction of his ersonal residence.
Marshall admitted that he also caused Fireline to record revenue and income from the construction contracts that were false, because little, if any, work had actually been performed. Even though Marshall knew that the revenue, costs and income on the construction projects were false, he caused Home Solutions to report it to public investors in Home Solutions’ 2Q 2007 10-Q.
According to the plea agreement filed, if the Court accepts the plea, the parties agree that a sentence of no more than 60 months is the appropriate custody disposition of Marshall’s case. A sentencing date was not set.
Today’s conviction 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. attorney’s offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The investigation was conducted by the FBI and the FDIC Office of Inspector General, with substantial assistance from the Enforcement Division staff of the Securities and Exchange Commission. Assistant U.S. Attorneys J. Nicholas Bunch and Andrew Wirmani are in charge of the prosecution.
Business Owner Admits to Failing to Pay Taxes to IRSRead the Press Release
LAREDO, Texas - Leticia Reyna has entered a plea of guilty to failing to pay over employment taxes to the Internal Revenue Service (IRS), announced United States Attorney Kenneth Magidson.
According to the written plea agreement filed in the record of the case, Reyna admitted she and Jorge Montemayor operated Professional Skilled Services Inc., a home health care business that provided basic skilled care. She acknowledged that in her role as president, she had authority to conduct financial transactions on behalf of Professional Skilled Services Inc. and exercised signatory authority on the company's bank accounts. The indictment had alleged Reyna was required to collect, truthfully account for, and pay over employment taxes to the United States which include federal income tax, Social Security and Medicare taxes.
As part of the plea, Reyna admitted she knowingly and willfully failed to pay over to the IRS approximately $48,562.44 of federal income and FICA and Medicare taxes withheld from the taxable wages of employees of Professional Skilled Services Inc., for the fourth quarter of 2008. Reyna admitted that had different business expense and personal choices been made, funds would have been available to pay these taxes.
A sentencing date has not yet been set. She faces a statutory maximum penalty of five years in prison and a $250,000 fine. She was permitted to remain on bond pending the sentencing hearing.
The investigation resulting in the charges against Reyna was conducted by IRS - Criminal Investigation and FBI. Assistant United States Attorney Elizabeth R. Rabe is prosecuting the case.
Baptist Health Systems Settles Federal False Claims Act Civil LawsuitRead the Press Release
Baptist Health Systems, one of the largest health care providers in San Antonio, has paid $3,675,000 to the United States Department of Justice to settle allegations that it violated the federal False Claims Act by filing false claims for reimbursement under the Medicare program United States Attorney Robert Pitman announced today.
The federal investigation was triggered by allegations contained in a whistleblower lawsuit filed by Norma Rivera in United States District Court in San Antonio. The lawsuit alleged that Baptist Health Systems improperly filed claims with the Medicare program by failing to disclose on the claim that the patient receiving treatment had another insurance policy that covered the care at Baptist. The suit further alleged the Medicare program overpaid Baptist Health Systems on claims from 2003 through 2007. Under the law, a health care provider is required to disclose the fact that a patient has other insurance when it files its claim with Medicare. The claim is processed under the other insurance policy and, in most cases, Medicare pays whatever the patient was out of pocket (such as a deductible or copayment). If the health care provider receives a double payment because the insurance company is slow to pay, then the health care provider must reimburse Medicare.
United States Attorney Pitman stressed that Baptist Health Systems cooperated with the investigation, including conducting an audit of claims going back to January 2003. The audit was disclosed to the United States Attorney’s Office, allowing the government and Baptist to reach an acceptable settlement. Assistant United States Attorney Harold E. Brown, Jr., from the Affirmative Civil Enforcement Unit investigated the case and negotiated the settlement.
The False Claims Act provides that a whistleblower will receive a portion of the settlement for bringing the problem to the attention of the government. In this case, Norma Rivera received $661,500 as her share of the settlement. In addition to paying $3,675,000 to the Government, Baptist Health Systems paid Rivera’s attorneys’ fees and expenses.
Individuals who suspect Medicare fraud, waste or abuse are encouraged to report this information to the United States Department of Health and Human Services. Information on how to make this report is online at http://www.medicare.gov/forms-help-and-resources/report-fraud-and-abuse/report-fraud/reporting-fraud.html. You can also report Medicare fraud by calling 1-800-MEDICARE.
2013 CNMI Women’s SummitRead the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands, was invited to speak at the Commonwealth of the Northern Mariana Islands (CNMI) Women’s Summit held in Susupe, Saipan, on August 1-2, 2013. The CNMI Women’s Summit was sponsored by the CNMI Women’s Association.
U.S. Attorney Limtiaco provided an overview of “Human Trafficking”, including how to identify victims, and ways in which the community can assist and provide for the needs of victims. U.S. Attorney Limtiaco also discussed issues relating to “Drug Abuse”, including public awareness and prevention efforts addressing drug abuse among youth and the elderly, such as the Red Ribbon Campaign and National Prescription Drug Take Back initiative.
Approximately one hundred participants attended the CNMI Women’s Summit which also included workshops on various topics, such as Leadership and Women; Education & Training; Effective Communication; Women in the Labor Force; Business Opportunities; Writing Business Plans; and Language & Culture.
U.S. Attorney Limtiaco was also invited and conducted outreach on human trafficking issues in an interview by Glenn Manglona, host of the Marianas Agupa Chamorro Radio talk show.
Attached are photos taken at the CNMI Women’s Summit.
Friday 15 November 2013
Zwolle Man Sentenced to 10 Years in Federal Prison for Firearm Possession ChargeRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced thatScott William Wood, 31, of Zwolle, La., was sentenced Wednesday by U.S. District Judge Maurice S. Hicks to 10 years in federal prison and three years of supervised release for possession of a firearm by a convicted felon. Woods pleaded guilty on July 29, 2013.
According to evidence presented at the guilty plea, members of the U.S. Marshal’s Service Task Force arrested Woods and three others at a casino hotel in Shreveport on June 20, 2012. During his arrest, agents discovered methamphetamine, drug paraphernalia, two handguns, ammunition and body armor in the hotel room. Wood admitted to bringing the guns into the hotel. The defendant has previously been convicted on drug possession and drug distribution charges.The Louisiana State Police, U.S. Marshal’s Service Task Force, U.S. Drug Enforcement Administration and the ATF conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
Wilmington Man Sentenced for Drug Sale and Using Firearm During and in Relation to the Drug SaleRead the Press Release
RALEIGH- United States Attorney Thomas G. Walker announced that in federal court todayChief United States District Judge James C. Dever III, sentenced WILLIS SARVIS, 35, of Wilmington, North Carolina to life imprisonment followed by 5 years of supervised release.
On January 16, 2013, SARVIS was found guilty by a federal jury of the distribution of a quantity of phencyclidine in violation of Title 21, United States Code, Section 841(a)(1) and the possession of a firearm in furtherance of a drug trafficking crime in violation of Title 18, United States Code, Section 924(c). On February 21, 2012, SARVIS pled guilty to being felon in possession of a firearm in violation of Title 18, United States Code, Sections 922(g)(1) and 924.
On March 18, 2011, in Wilmington, officers responded to the Hillcrest Housing Community regarding a man that was shot, and ultimately died from his injuries. The investigation revealed that during the course of a drug deal, the victim had been shot twice with a Romarm/Cugir, WASR, 7.62 x 39 mm assault rifle. There were numerous shell casings from the rifle in the area and the investigation revealed two homes were also struck with bullets. The investigation quickly focused on Mr. SARVIS who had left the rifle with a friend who gave the rifle over to law enforcement. Police located SARVIS and took him into custody where he confessed to selling the deceased two small bags of PCP and shooting him when an altercation arose between them. SARVIS claimed the shooting was in self-defense.Investigation of this case was conducted by the Wilmington Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Special Assistant United States Attorney Charity Wilson served as prosecutor for the government. Ms. Wilson is a prosecutor with the New Hanover County District Attorney's Office. District Attorney Ben David has assigned her to the United States Attorney's Office to prosecute federal Project Safe Neighborhood cases and other violent crime cases.
West Virginia Woman Sentenced to 27 Months in Prison for Embezzling $1 Million from Cincinnati CompanyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Melissa Trenary Grove, 41, of Bunker Hill, West Virginia was sentenced to 27 months in prison for embezzling more than $1 million from her employer in Cincinnati.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation Cincinnati Field Office (FBI) announced the sentence handed down today by U.S. District Judge Michael R. Barrett.
According to court documents, Grove was the chief financial officer for a computer consulting company called Collaborative Systems Group (CSG) in Cincinnati from 2007 through December 2009. Working from her home in West Virginia, she used a variety of schemes to embezzle approximately $1 million from the company.
During her three-year employment, Grove used a company credit card to pay for numerous personal items, all of which were unauthorized purchases. Grove also wired funds and wrote checks from the company accounts into her personal accounts. Grove also stole money from the company by secretly adding a relative to the company payroll. Eventually, the company management removed Grove from her position and the embezzlement was discovered. Most of the money she embezzled was used for personal expenses and family members. She also used the money to start her own spa business in West Virginia, which eventually failed.
“In terms of promoting respect for the law and affording adequate deterrence, the sentence should make clear to the person on the street that financial crimes do indeed have consequences, including imprisonment,” Assistant U.S. Attorney Tim Mangan told the court.
Grove was ordered to pay $1,065,092.99 in restitution to CSG, and ordered to forfeit any assets she has that were purchased with proceeds of the crime. She will report to prison in January 2014. She will be under court supervision for three years following her prison term.
Grove pleaded guilty on June 20, 2013 to one count of wire fraud.
U.S. Attorney Stewart commended the investigation by the FBI and Assistant U.S. Attorney Mangan, who represented the United States in the case.
West Monroe Man Sentenced to 18 Months in Prison for Bank FraudRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced today that Glen A. “Andy” Miller, 48, of West Monroe, was sentenced by U.S. District Court Judge Robert G. James to 18 months in prison and five years of supervised release for bank fraud. The defendant was also ordered to pay $97,413 in restitution.Miller was found guilty August 14, 2013 after a three-day jury trial. Witness testimony and documents admitted at trial revealed that from September 24, 2010 until January 25, 2011 Miller, an independent IT contractor, stole $97,413 from Will Transport, a Monroe company, where he was working at the time. Miller stole blank Will Transport company checks, made them payable to himself and then used the company’s stamp to put signatures on the checks. Miller deposited these checks into his account at Capital One Bank and withdrew the funds shortly thereafter. The trial evidence also revealed that Miller was previously terminated from the city of West Monroe for the fraudulent use of a city issued credit card.
“This defendant used his position to steal money from his employer,” Finley stated. “They trusted him to conduct his work honestly, but instead betrayed them and broke the law. Theft from employers and bank fraud are serious crimes and disruptive to members of the business community. We are committed to aggressively prosecuting this type of financial crime.”
The U.S. Secret Service conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
Warrant Officer Sentenced in Theft of Government Property CaseRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that in federal court today United States District Judge Terrence W. Boyle sentenced KURT ALLEN BENNETT, 41, of Fort Bragg, North Carolinato 36 months imprisonment followed by 3 years of supervised release.
The criminal investigation of this case was conducted by United States Defense Criminal Investigative Service; the Federal Bureau of Investigation; the United States Department of Army – Criminal Investigation Command, and the Defense Logistics Agency. Assistant United States Attorney Banumathi Rangarajan is handling the prosecution on behalf of the Eastern District of North Carolina.
U.S. Attorney Walker stated, “This officer sought to achieve financial gain to the detriment of our war fighting efforts. We will aggressively prosecute those stealing from the taxpayers and putting our armed forces in conflict at risk.“
A Criminal Information was filed on January 3, 2013, charging conspiracy to steal and convert property belonging to the United States Government, in violation of Title 18, United States Code, Section 371, and two counts of theft and conversion of government property, in violation of Title 18, United States Code, Sections 641. On June 4, 2013, he pled guilty to the charges.
According to information presented in open court, at the time of the offense, BENNETT was an Apache helicopter pilot in the United States Army assigned to the 1st Battalion, 3rd Aviation Regiment, at Hunter Army Air Field in Savannah, Georgia. From October 18, 2008, through October 18, 2009, BENNETT was deployed with his unit to Contingency Operating Base (COB) Speicher in Iraq. During his deployment, BENNETT stole government property, concealed the stolen items in military connexes, and then shipped the stolen goods back to the United States along with the rest of his unit’s property to Fort Drum, New York.
After BENNETT returned to the United State from Iraq, he traveled to Fort Drum and transported the connex and its contents of stolen items with his personal vehicle back to Georgia. In total, BENNETT stole nearly $1.3 million worth of government property.
“This sentencing of a US Army officer highlights the effectiveness of aggressive investigative efforts by the Defense Criminal Investigative Service (DCIS) and other law enforcement partners,” stated Special Agent in Charge John F. Khin, DCIS-Southeast Field Office. “Chief Warrant Officer Kurt Bennett conspired with others to steal over $1 million worth of military property, in self-serving crimes that undermined our war fighting efforts in Iraq. DCIS’ top priority is to protect precious resources needed for military operations, especially in these times of reduced Defense budgets.”
“Kurt Bennett dishonored his country and put the lives of his fellow soldiers at risk by stealing property intended to further our war efforts in Iraq and Afghanistan. His sentence should reassure the public the FBI and our outstanding military partners will make sure those who betray our trust are held accountable,” said John Strong, Special Agent in Charge of the FBI in North Carolina.
BENNETT’s co-conspirator was Sergeant First Class Robert Alan Walker. Walker was sentenced on September 25, 2013, and received 18 months imprisonment.Vancouver, Washington Gang Member Convicted of Being a Felon in Possession of FirearmRead the Press Release
A repeat offender who used recorded jail telephone lines to try to get his girlfriend to hide his gun from law enforcement, was convicted late yesterday of being a felon in possession of a firearm. HERBERT D. ZENO, 33, a known gang member from the Vancouver, Washington area was convicted following a three day jury trial. ZENO was arrested and booked into the Clark County Jail on January 31, 2013. ZENO was charged federally February 19, 2013. When sentenced by U.S. District Judge Ronald B. Leighton on January 31, 2014 , ZENO faces up to ten years in prison.
According to testimony presented at trial, on the same day of his arrest on state charges, ZENO used the jail telephone system to attempt to get his girlfriend to hide a firearm he possessed. The jail calls were monitored and recorded. The recorded phone calls resulted in a court authorized search for the firearm. It was discovered hidden under a dresser in ZENO’s mother’s home. ZENO has prior convictions for drug possession (2003, 2005), robbery (2002) and illegal firearm possession (2002). ZENO’s prior convictions bar him from possessing firearms. ZENO has tattoos identifying him as a Bloods gang member and the firearm was found wrapped in a red Bloods bandana – a sign of his ownership.
The case was investigated by the FBI’s Safe Streets Gang Task Force which contains officers from the Vancouver Police Department and Clark County Sheriff’s Office. The Bureau of Alcohol, Tobacco, Firearms & Explosives assisted with the investigation.
The case was prosecuted by Assistant United States Attorneys Michael Dion and Thomas Bates.
U.S. Attorney Goodwin, Child Advocates Announce Luggage Collection Drive for Foster ChildrenRead the Press Release
West Virginians asked to participate to help kids in transition to foster care
CHARLESTON, W.Va. –U.S. Attorney Booth Goodwin, along with representatives from Mission West Virginia, Inc., the Children’s Home Society and other supporters gathered today at the Charleston Civic Center for the first of four regional events designed to help children transitioning into foster care. The second annual Thanksgiving time luggage collection drive dubbed “Give Thanks and Carry On”, launched today as part of Mission West Virginia’s Carry On Campaign, is an effort aimed at collecting luggage, essential personal care items, and items of comfort for children who are in transition to the state’s foster care system. West Virginia currently has more than 4,000 children in the foster care system.
U.S. Attorney Booth Goodwin said, "No child should have to use a trash bag to transport their belongings.” Goodwin continued, “That’s what was happening and that’s why the Carry On Campaign was formed a few years ago: to provide children with luggage and other items of comfort during a very difficult time. We're asking all West Virginians: as you’re preparing for the upcoming holiday season, add a child in need to your list.”
The Carry On Campaign began in October 2010 as a collaborative, multi-agency partnership that includes the U.S. Attorney’s Office for the Southern District of West Virginia, the West Virginia Department of Health and Human Resources, Mission West Virginia, Inc., the West Virginia Prosecuting Attorney’s Institute and the West Virginia Drug Endangered Children Task Force. Items sought after as part of the Carry On Campaign include new and gently used luggage, duffle bags, stuffed animals, coloring books, journals, toothbrushes, toothpaste, as well as non-perishable snacks. Additional items being collected during the winter months include coats, gloves, mittens, hats, scarves, earmuffs, socks, and blankets. All items collected will be distributed by Mission West Virginia.
This is the second year in a row that U.S. Attorney Goodwin has partnered with Mission West Virginia, and the West Virginia Children’s Home Society for a Thanksgiving collection drive in support of children in transition to foster care. Previous collection efforts have enabled Mission West Virginia to meet critical care needs for hundreds of young people.
Three additional collection campaign announcements are upcoming: in Ona, W.Va., at the Hovah Hall Underwood Children’s Home on Nov. 25; in Daniels, W.Va., at the Southern West Virginia Exceptional Youth Emergency Shelter on Nov. 26; and the Easton Center in Parkersburg on Nov. 27.
To find a drop-off location near you or to receive additional information regarding the Carry On Campaign, please contact Carrie Dawson at [email protected] or call toll free 1-866-CALL-MWV (1-866-225-5698).
Two More Defendants Plead Guilty in Manhattan Federal Court in Connection with Russian-American Organized Crime Gambling EnterpriseRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ANATOLY GOLUBCHIK pled guilty today in Manhattan federal court to participating in a racketeering conspiracy in connection with his role as a member of a Russian-American organized crime enterprise. ILLYA TRINCHER also pled guilty today in Manhattan federal court in connection with his leadership role in the operation of a high-stakes illegal sports gambling business. GOLUBCHIK and TRINCHER were charged in April 2013 along with 32 other alleged members and associates of two Russian-American organized crime enterprises in an indictment that included racketeering, money laundering, extortion, and various gambling offenses. They pled guilty before U.S. District Judge Jesse M. Furman.
Manhattan U.S. Attorney Preet Bharara said: “With Anatoly Golubchik and Illya Trincher’s guilty pleas today, 18 of the 34 defendants charged in this case now stand convicted. We remain committed to making sure that everyone charged in connection with this alleged Russian-American organized crime ring is held to account for their crimes.”
According to the Indictment, other documents filed in Manhattan federal court, and statements made at various proceedings in this case, including today’s guilty plea:
The Taiwanchik-Trincher Organization is a nationwide criminal enterprise with strong ties to Russia and Ukraine. The leadership of the organization ran an international sportsbook that catered primarily to Russian oligarchs living in Russia and Ukraine and throughout the world. The Taiwanchik-Trincher Organization laundered tens of millions of dollars in proceeds from the gambling operation from Russia and the Ukraine through shell companies and bank accounts in Cyprus, and from Cyprus into the United States. Once the money arrived in the United States, it was either laundered through additional shell companies or invested in seemingly legitimate investments, such as hedge funds or real estate. GOLUBCHIK was a U.S.-based participant in the enterprise. As part of his plea, GOLUBCHIK acknowledged that in furtherance of the Taiwanchik-Trincher Organization, GOLUBCHIK laundered the proceeds of their international sportsbook and assisted in the operation of the illegal gambling business.
TRINCHER and co-defendant Hillel Nahmad ran a high-stakes illegal gambling business that catered primarily to millionaire and billionaire clients. Their business utilized several online gambling websites that operated illegally in the United States to generate tens of millions of dollars of sports bets each year. The gambling operation was financed through a host of American and international bank accounts, including accounts associated with Nahmad , defendants John Hanson and Noah Siegel, a/k/a “The Oracle,” and a plumbing company in the Bronx that was acquired in repayment of a $2 million gambling debt. As part of his guilty plea, TRINCHER acknowledged that he was a leader and organizer of the illegal sports gambling business, he supervised the illegal gambling business, and he conducted numerous financial transactions on behalf of the illegal gambling business.
GOLUBCHIK, 57, of Fort Lee, New Jersey, faces a maximum of 20 years in prison and three years of supervised release. As part of his plea agreement, GOLUBCHIK agreed to forfeit cash and property worth over $20,000,000.00. He is scheduled to be sentenced by Judge Furman on March 25, 2014, at 3:00 p.m.
TRINCHER, 28, of Los Angeles, California, faces a maximum of five years in prison and three years of supervised release. As part of his plea agreement, TRINCHER agreed to forfeit cash and property worth over $6,000,000.00 and a black 2012 Porsche Cayenne. He is scheduled to be sentenced by Judge Furman on March 25, 2014, at 3:45 p.m.
GOLUBCHIK is the 17th defendant in this case to plead guilty. TRINCHER is the 18th defendant in this case to plead guilty. The defendants who have pled to date have agreed to forfeit, in total, more than $66,000,000.00. The following defendants previously pled guilty and await sentencing:
- Bryan Zuriff pled guilty to gambling charges on July 26, 2013;
- William Barbalat pled guilty to gambling charges on August 14, 2013;
- Kirill Rapoport pled guilty to gambling charges on August 16, 2013;
- Edwin Ting and Justin Smith pled guilty to gambling charges on September 4, 2013;
- Dmitry Druzhinsky and David Aaron pled guilty to gambling charges on October 4, 2013;
- Alexander Zaverukha pled guilty to gambling charges on October 10, 2013;
- Nicholas Hirsch pled guilty to conspiring to commit wire fraud on October 16, 2013;
- Anatoly Shteyngrab pled guilty to conspiring to commit money laundering on October 17, 2013;
- Yugeshwar Rajkumar pled guilty to gambling charges on October 18, 2013;
- Stan Greenberg pled guilty to conspiring to commit racketeering on October 22, 2013;
- Arthur Azen pled guilty to conspiring to commit money laundering and conspiring to collect extensions of credit by extortionate means on November 5, 2013;
- Hillel Nahmad pled guilty to gambling charges on November 12, 2013;
- Vadim Trincher pled guilty to conspiring to commit racketeering on November 14, 2013; and
- Eugene Trincher pled guilty to gambling charges on November 14, 2013.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation, the New York City Police Department, and the Internal Revenue Service.
The case is being prosecuted by the Office’s Organized Crime Unit. Assistant U.S. Attorneys Harris M. Fischman, Joshua A. Naftalis, Peter Skinner, and Kristy J. Greenberg of the Organized Crime Unit are in charge of the prosecution. Assistant U.S. Attorneys Alexander Wilson and Christine Magdo of the Office’s Asset Forfeiture Unit are responsible for the forfeiture aspects of the case.
U.S. v. Alimzhan Tokhtakhounov, et al. Indictment
Two Florida Men Convicted in Philadelphia of Conspiring and Trafficking in Protected ReptilesRead the Press Release
A federal jury today found Robroy MacInnes, 54, of Inverness, Fla., and Robert Keszey, 47, of Bushnell, Fla., guilty of conspiracy to traffic in state and federally protected reptiles. MacInnes also was convicted of trafficking in protected timber rattlesnakes in violation of the Lacey Act.
Between 2007 and 2008, the defendants, who own the reptile wholesaler Glades Herp Farm Inc., collected protected snakes from the wild in Pennsylvania and New Jersey, purchased protected eastern timber rattlesnakes that had been illegally collected from the wild in violation of New York law, and transported federally threatened eastern indigo snakes from Florida to Pennsylvania. MacInnes also violated the Lacey Act by purchasing illegal eastern timber rattlesnakes and having the snakes transported from Pennsylvania to Florida. The evidence at trial showed that the protected species were destined for sale at reptile shows in Europe, where a single timber rattlesnake can sell for up to $800. Snakes that were not sold in Europe were sold through the defendants’ business in the United States.
“These defendants broke numerous wildlife laws seeking to profit from an illegal trade in threatened species,” said Robert G. Dreher, Acting Assistant Attorney General for the Environment and Natural Resources Division. “The Justice Department is committed to enforcing wildlife laws like the Endangered Species Act and the Lacey Act that protect our environment and these threatened species from a destructive and dangerous black market trade.”
The eastern timber rattlesnake is a species of venomous pit viper native to the eastern United States, and is listed as threatened in New York. It is also illegal to possess an eastern timber rattlesnake without a permit in Pennsylvania. The eastern indigo snake, the longest native North American snake species, is listed as threatened by both Florida and federal law.
The Lacey Act, one of the oldest statutes in the United States, prohibits interstate trafficking in wildlife known to be illegally obtained. The maximum penalty for conspiring to commit offenses and for violations of the Lacey Act is up to five years in prison and a $250,000 fine for each violation.
This case was investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement, with assistance from the New York Department of Environmental Conservation. The case was prosecuted by Trial Attorney Patrick M. Duggan and paralegal Ashleigh Nye of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division and Assistant U.S. Attorney Mary Kay Costello of the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
Two Florida Men Convicted of Defrauding Homeowners in Home Loan Modification ScamRead the Press Release
BOSTON – Two Florida men were convicted yesterday for defrauding homeowners in Massachusetts and elsewhere in a home loan modification scam.
Christopher S. Godfrey, 44, of Delray Beach, Fla., Dennis Fischer, 42, of Highland Beach, Fla., were convicted of conspiracy, wire fraud, mail fraud, and misuse of a government seal.
From January 2009 through May 2011, Godfrey, Fischer, and their employees, operating under the name Home Owners Protection Economics, Inc. (HOPE), made a series of misrepresentations to induce struggling homeowners looking for a federally-funded home loan modification to pay HOPE a $400-$900 up-front fee in exchange for HOPE's help obtaining modifications. Among these misrepresentations were the claims that, with HOPE's assistance, the homeowner was guaranteed to receive a loan modification under the Home Affordable Modification Program (HAMP), which is part of the Troubled Asset Relief Program (TARP) and is a federally-funded mortgage assistance program. HOPE also claimed that it operated as a non-profit. In exchange for these up-front fees, HOPE sent its customers, including homeowners in Massachusetts, a do-it-yourself application package, which was virtually identical to the application that the government provides free of charge. The HOPE customers had no advantage in the application process, and, in fact, most of their applications were denied. Through these misrepresentations, HOPE was able to persuade thousands of homeowners to pay more than $4 million in fees.
Sentencing is scheduled for February 13, 2014. The defendants face a maximum sentence on each count of 20 years in prison, three years of supervised release, a $250,000 fine, and restitution.
United States Attorney Carmen M. Ortiz, Acting Assistant Attorney General Mythili Raman, and Christy Romero, Acting Special Inspector General for the Troubled Asset Relief Program (SIGTARP) in Wash., D.C., made the announcement today.
The case is being prosecuted by Assistant U.S. Attorney Adam Bookbinder of Ortiz's Computer Crimes Unit and Trial Attorney Mona Sedky of the Department of Justice's Computer Crime and Intellectual Property Section, Criminal Division.Two Arrested, Make Initial Appearance in Federal Court on Charges of Aggravated Identity Theft, Forging Endorsements on U.S. Government Checks, Money LaunderingRead the Press Release
PROVIDENCE, R.I. – Juliana Martins, 44, and Jairo Morales, 28, of Providence, R.I., were arrested by federal agents and made initial appearances today in U.S. District Court in Providence on charges of aggravated identity theft, theft of government property, forging endorsements on treasury checks and money laundering. The defendants were arrested by agents from Homeland Security Investigations, assisted by agents from the U.S. Secret Service and Internal Revenue Service Office of Investigation, as the result of an ongoing investigation into an alleged scheme to obtain federal tax checks with the use of stolen personal identifying information of others.
The arrests were announced by United States Attorney Peter F. Neronha; Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Steven D. Ricciardi, Special Agent in Charge of the Boston Field Office of the U.S. Secret Service; and John Collins, Acting Special Agent in Charge of the Boston Field Office of Internal Revenue Service Criminal Investigation.
According to information presented to the court, the defendants are alleged to have participated in a scheme to steal the identity of approximately forty individuals, nearly all of whom appear to live in Puerto Rico, including their names, social security numbers and dates of birth. It is alleged that they used the information to fraudulently obtain federal tax checks totaling more than $277,300. The investigation revealed that the checks were allegedly deposited into various bank accounts and then cash withdrawn in an attempt to conceal the scheme.According to information presented to the court, the investigation began in January 2013, based on information developed by Customs and Border Protection officers at Logan International Airport in Boston during a routine inspection of a laptop computer belonging to Morales as he passed through customs during a return trip to the United States from the Dominican Republic.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Martins and Morales were released on unsecured bond following their initial appearance before U.S. District Court Magistrate Judge Patricia A. Sullivan.
Theft of government property and forging endorsements on treasury checks are each punishable by statutory penalties of up to ten years in federal prison and a fine of up to $250,000. Money laundering is punishable by a statutory penalty of up to twenty years in federal prison and a fine of up to $500,000. Aggravated identity theft is punishable by a statutory penalty of a mandatory minimum sentence of two years in federal prison, to be served consecutive to any other sentence imposed
The case is being prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and John P. McAdams.
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Twenty Arrested for Roles in Methamphetamine Trafficking ConspiracyRead the Press Release
Drug Trafficking Organization Based in Stephenville, Texas, is
Allegedly Responsible for Distributing Hundreds of Pounds of Methamphetamine
Primarily in Rural Texas CountiesFORT WORTH, Texas — A total of 31individuals are now in custody following an Organized Crime Drug Enforcement Task Force (OCDETF) operation yesterday, led by special agents of the Drug Enforcement Administration (DEA) and officers from the Stephenville Police Department, on conspiracy and drug trafficking charges outlined in a criminal complaint filed last week and unsealed today. Defendants arrested yesterday made their initial appearance this morning before a U.S. Magistrate Judge. Today’s announcement was made by Sarah R. Saldaña, U.S. Attorney for the Northern District of Texas, and Daniel R. Salter, Special Agent in Charge of the DEA in Dallas.
The complaint charges 32 defendants with conspiracy to possess a controlled substance (methamphetamine) with intent to distribute. Twenty of those defendants were arrested in yesterday’s operation, 11 are in custody at various locations on unrelated state charges, and one has not yet been arrested.
“These arrests illustrate the success of our District’s federal, state and local law enforcement partners’ collaboration in taking down these drug trafficking organizations — whether they operate in large communities, or in several rural counties as this one allegedly did,” said U.S. Attorney Saldaña. “I commend the dedicated efforts of the DEA and the Stephenville Police Department, who led this OCDETF investigation, along with the Erath, Parker, Palo Pinto and Stephens County Sheriff’s Offices, the Erath County District Attorney’s Office, the Fort Worth and Weatherford Police Departments, the U.S. Marshals Service and the Texas Department of Public Safety.”
“Drug trafficking organizations are determined to spread their poison in an attempt to make a profit on the backs of addiction,” said Special Agent in Charge Salter. “Today, the DEA and our state and local partners have made a significant impact on these organizations operating in our rural counties. I am grateful for the efforts of our special agents, prosecutors, and law enforcement partners in dismantling this organization. Our law enforcement community is strong and together we are committed to ensuring that our communities are safe and drug free.”
The investigation began in December 2012 when the DEA and the Stephenville Police Department began investigating the methamphetamine trafficking of the Brittany Barron Drug Trafficking Organization (DTO) and identified more than 100 individuals distributing for, or obtaining methamphetamine from, that DTO.
The investigation involved undercover purchases and search warrants, and throughout the investigation, substantial amounts of methamphetamine and cash were seized from the DTO. Law enforcement learned that this DTO, based in Stephenville, Texas, was allegedly responsible for distributing hundreds of pounds of methamphetamine, primarily in rural Texas counties, including: Erath County, Parker County, Palo Pinto County, Comanche County, Eastland County, Stephens County, Hood County, Hamilton County, Somervell County and Taylor County.
In addition, law enforcement has dismantled several of the DTO’s suppliers, and it continues to investigate others that remain in operation.
A federal criminal complaint is a written statement of the essential facts of the offense charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The statutory penalty, upon conviction, for the offense charged is not less than five years or more than 40 years in prison and a $5 million fine. The U.S. Attorney’s Office has 30 days to present the matter to a grand jury for indictment.
The case is being prosecuted by Assistant U.S. Attorney Shawn Smith.
The Riddler and the Penguin Charged with Conspiracy and Kidnapping; Duo Faces Long Prison Terms Thanks to BatkidRead the Press Release
SAN FRANCISCO/GOTHAM – Edward “E.” Nigma, aka, “The Riddler,” and Oswald Chesterfield Cobblepot, aka, “The Penguin” were formally arrested today and charged with multiple counts of conspiracy and kidnapping for their all too familiar villainous ways in Gotham City, according to Melinda Haag, U.S. Attorney for the Northern District of California and FBI Special Agent in Charge David J. Johnson.
The unique and somewhat unprecedented indictment not only outlines the charges against “The Riddler” and “The Penguin” but it also includes a special thanks to a certain caped crusader who was pivotal in making this day a reality.
“We’ve been chasing Nigma and Cobblepot for years and just when I was about to give up hope that we would ever bring them to justice, wouldn’t you know it – Batkid shows up and saves the day,” said United States Attorney Melinda Haag. “I’ve been involved in some unbelievable cases and I’ve worked with some pretty remarkable law enforcement officers, but the bravery displayed by Batkid is off the charts. I’m absolutely certain that there is no villain this remarkable super-hero can’t defeat.”
According to the indictment, “The Penguin” and “The Riddler” thought it was a good idea to put an unnamed female in the path of a cable car, rob a bank, and kidnap San Francisco Giants mascot Lou Seal. Somehow they thought these latest stunts would go undetected by Batkid. However, at approximately 9 p.m. last night, the bat signal went up and predictably the crime rate began to go down in Gotham and San Francisco.
“I’ve talked a lot about cooperation in the past with other outstanding law enforcement partners, but I can honestly say we broke some new ground today,” said FBI Special Agent in Charge David J. Johnson. “The FBI and the San Francisco Police Department are good, but if it wasn’t for Batkid, I guarantee you that these two villains would still be at-large on the streets of Gotham today. Citizens of this great city are not only safer tonight because of Batkid, but they will undoubtedly be humbled by the courage he has displayed in battles he has taken on and won.”
The Assistant U.S. Attorneys all want to prosecute this case, and are currently drawing straws to see who will have the honor. This will presumably be the easiest case in U.S. Attorney history thanks to Batkid, who pretty much was able to not only capture the humanity of this great city, but was also able to capture all of the Riddler’s and Penguin’s crimes on video. The prosecution is the result of a multi-agency investigation led from a cave in a location we cannot disclose.
Please note, an indictment contains only allegations against a person and, as with all defendants, Edward “E.” Nigma, aka, “The Riddler,” and Oswald Chesterfield Cobblepot, aka, “The Penguin” must be presumed innocent unless and until proven guilty.
(Riddler & Penguin indictment )
Sulphur Men Plead Guilty to Making and Distributing Counterfeit MoneyRead the Press Release
LAKE CHARLES, La. –United States Attorney Stephanie A. Finley announced that Shaun Daigle, 34, and Patrick Murray, 46, both of Sulphur, La., pleaded guilty Thursday before U.S. Magistrate Judge Kathleen Kay, to conspiring to counterfeit U.S. currency.
According to the evidence presented at the guilty plea, from May 1, 2013 to May 25, 2013, Daigle and Murray conspired to manufacture and distribute counterfeit U.S. currency in the Sulphur, Lake Charles, and Westlake, La. areas.
The defendants each face up to five years in prison, a $250,000 fine, and three years of supervised release for conspiracy to counterfeit and forge obligations to the United States. A sentencing date has not been set.The U.S. Secret Service and Sulphur Police Department conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy is prosecuting the case.
Staff Pharmacists at Kentwood Pharmacy Sentenced to Stiff Fines on Charges of Misbranding Drugs and Face Exclusion and Debarment from Federal ProgramsRead the Press Release
GRAND RAPIDS, MICHIGAN – James D. Orr, 76, and Eugene A. Biegert, 69, of Grand Rapids, Michigan, and Thomas N. VerHage, 68, of Kentwood, Michigan were sentenced by U.S. District Judge Janet T. Neff to substantial fines following their guilty pleas to charges of the felony misbranding of drugs while working as staff pharmacists at Kentwood Pharmacy. The judge imposed monetary penalties exceeding the fine range recommended by federal sentencing guidelines: a fine of $30,000.00 for VerHage and Orr and $15,000.00 for Biegert.
In addition, as a consequence of the convictions, U.S. Department of Health and Human Services will exclude the defendants from participation in any Federal Health Care Program (Medicaid and Medicare) and the U.S. Food and Drug Administration will debar them from working for anyone with an approved or pending drug product application.
During their earlier plea hearings, the pharmacists acknowledged that they were aware that Kentwood Pharmacy restocked drugs that were returned from nursing homes and adult foster care homes. The defendants admitted that receiving such returned drugs and placing the returned drugs back on the stock shelves resulted in the drugs being placed into stock bottles and other containers which did not maintain the accurate lot numbers and expiration dates for the drugs. The defendants admitted that, in their position as staff pharmacists, they approved prescriptions that were prepared and dispensed to foster care and nursing homes. They acknowledged that some of the prescriptions contained drugs that they knew were returned to stock in violation of state and federal laws, including drugs that had been misbranded.
At the sentencing hearings, Judge Neff found that the staff pharmacists created a substantial risk of harm by approving the illegal restocking and re-distribution of prescription drugs. The judge described the scheme to collect unused drugs from nursing homes and adult foster homes and then re-dispense these drugs as “clever, illegal, and potentially lethal.” She explained that the substantial fines were necessary to deter others and to punish these defendants for their failure to exercise their professional responsibilities as pharmacists and stop or report the illegal practices at Kentwood Pharmacy. Judge Neff further explained that none of the defendants had any prior criminal history, did not financially benefit from the criminal activities and that federal sentencing guidelines did not call for substantial prison time as a deterrent.
U.S. Attorney Patrick Miles said, “The public must be able to rely on pharmacists who have both professional and statutory duties to ensure that pharmacies operate in compliance with federal and state laws regulating the handling, packaging, and distribution of drugs. As this case demonstrates, even semi-retired pharmacists who work part-time are expected to fulfill their statutory and professional obligations. If such professionals fail to comply with state and federal laws, they should expect to be prosecuted and face loss of their license, substantial financial penalties, and the possibility of imprisonment for violations of the public’s trust.”
“Patients must have confidence that the prescription drugs they receive from pharmacies are safe and effective,” said Special Agent in Charge John J. Redmond of the U.S. Food and Drug Administration, Office of Criminal Investigations, Chicago Field Office. “The FDA will aggressively pursue those who cause drugs to become misbranded while held for sale, and the agency will strive to ensure that they are prosecuted to the full extent of the law.”
The investigation of this matter involves the FDA, FBI, DEA, HSS and IRS. Assistant U.S. Attorney Ray Beckering is the prosecutor.
The investigation of this case was initiated by confidential tips. If Michigan residents or medical professionals suspect possible violations of law or other dangerous practices involving pharmacies or prescription drugs, they can contact the FDA at http://www.fda.gov/ICECI/criminalInvestigations/default.htm or the DEA at http://www.justice.gov/dea/index.html.
END
St. Charles Man Sentenced on Federal Drug and Weapons ChargesRead the Press Release
St. Louis, MO – EHRICK PREIS was sentenced to 37 months in prison. On six occasions between December 2012 and March 2013 in St. Charles County, he distributed at total of 858 units of LSD to undercover law enforcement personnel in exchange for more than $6,000. During the transactions, Preis made statements indicating he knew the substance was intended for human consumption, including statements that the substance was "LSA, 2CI and LSD," a "beefed up version of LSD." A subsequent search of Preis’ residence following the sixth drug purchase revealed two improvised explosive devices (IEDs), pipe bomb type devices/destructive devices, which he admitted creating.
Ehrick Stefan Preis, St. Charles, MO, pled guilty in August to one felony count of distribution of a controlled substance and one felony count of possession of an unregistered destructive device. He appeared today for sentencing before United States District Judge Carol E. Jackson.
This case was investigated by the St. Louis County Multi-Jurisdictional Drug Task Force, the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Michael Reilly handled the case for the U.S. Attorney's Office.
Sixth Defendant in New York-Based Armed Robbery Crew Convicted of Gruesome North Carolina MurderRead the Press Release
Earlier today, Wendell Alomar-Cabrera, a citizen of the Dominican Republic, pled guilty at the federal courthouse in Brooklyn, New York, to the October 16, 2006, murder of Luis Sifuentes in Durham, North Carolina. The proceeding took place before United States District Judge Nicholas G. Garaufis. When sentenced, Alomar-Cabrera faces up to life imprisonment.
The plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Robert T. Johnson, District Attorney, Bronx County, New York, Brian R. Crowell, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division, and Raymond W. Kelly, Commissioner, New York City Police Department (NYPD).
“Alomar-Cabrera was part of a vicious robbery crew that viewed the East Coast of the United States as their hunting ground. They traveled the highways impersonating police officers, and showed their victims no mercy. Today a sixth perpetrator of the murder of Luis Sifuentes has been brought to justice,” stated United States Attorney Lynch. “We pursued these defendants to North Carolina to show the extent of our commitment to protecting communities, in New York and elsewhere, from the violence posed by violent robbers and drug traffickers.” Ms. Lynch congratulated the Bronx County District Attorney’s Office and the members of law enforcement who led the investigation, and thanked the New York State Police; the Durham County District Attorney’s Office; and the Durham, North Carolina Police, Special Operations Division, Major Crimes Unit for their assistance in the investigation.
According to court filings and facts presented in court, Alomar-Cabrera was a member of a violent robbery crew responsible for more than 100 armed robberies of narcotics traffickers along the east coast of the United States that netted more than 750 kilograms of cocaine and $4 million in drug proceeds. Crew members posed as police officers in order to subdue narcotics traffickers and their families, and then kidnaped, tortured, and robbed their victims. In 2006, members of the crew traveled to North Carolina from New York to engage in a series of robberies. On October 16, 2006, near Durham, North Carolina, the defendants kidnaped Luis Sifuentes by executing a police-style car stop of Sifuentes’ pickup truck using lights and sirens. The robbery crew then drove Sifuentes to a rented house where they beat and tortured him for several hours, demanding that he provide information regarding the location of narcotics and cash. Crew members then carried Sifuentes outside, placed him in his pickup truck, shot him twice killing him, and set the truck on fire.
Alomar-Cabrera’s guilty plea is the most recent of 51 convictions in a group of interlocking cases brought in the Eastern District of New York against members of violent drug robbery crews who impersonated police officers and frequently committed robberies with real officers. Of the 51 convictions, nine defendants have been convicted for their roles in murders, including six for the Sifuentes murder.
The government’s case is being prosecuted by Assistant United States Attorneys Justin D. Lerer, Shreve Ariail, Gina M. Parlovecchio, and Douglas M. Pravda and Special Assistant United States Attorney Jeremy Shockett, an Assistant District Attorney from the Bronx County District Attorney’s Office.
The Defendant
WENDELL ALOMAR-CABRERA, aka “gregorio”
Age: 35E.D.N.Y. Docket No. 08 CR 115 (S-4) (NGG)
Reva, Virginia Man Sentenced on Stalking ChargesRead the Press Release
CHARLOTTESVILLE, VIRGINIA – A 61-year-old former employee of the Library of Congress, who pled guilty in August to charges involving stalking and identification fraud, was sentenced today in the United States District Court for the Western District of Virginia in Charlottesville.
Kenneth Edward Kuban, 61, of Reva, Va., was sentenced today to 66 months in federal prison. Kuban previously pled guilty to one count of stalking in violation of a protective order, one count of identification fraud and one count of violating a protective order within the special maritime and territorial jurisdiction of the United States.
“Mr. Kuban used his government computer and the internet to harass and intimidate the victim in this case,” United States Attorney Timothy J. Heaphy said today. “While the actions of Mr. Kuban caused the victim months of emotional trauma, they could have resulted in much more serious harm. Fortunately, law enforcement acted swiftly and put an end to Mr. Kuban’s horrific behavior before it resulted in violence. This case shows both the dangerous potential of web portals like the one Mr. Kuban used to stalk his victim, and our commitment to vigorously pursue actual or threatened violence against women in whatever form it takes.”
Kuban has admitted to posing online as the victim, an ex-girlfriend, and using the website Craigslist to post advertisements and lure third parties to the victim’s home in anticipation of having direct contact with the victim for the purpose of having sexual encounters. The defendant admitted to posting more than 165 advertisements on the website between January and March of 2013. Many of the advertisements contained the victim’s address and/or a photograph. Fifty-four of those advertisements were posted from Kuban’s personal computer. One-hundred and eleven of the ads were placed from Kuban’s government-issued computer at the Library of Congress.
As a result of the advertisements, more than 100 men appeared at or around the victim’s home between January and March 2013 seeking sexual encounters with her. In one instance, a man arrived at the victim’s home with a crowbar in order to pry open an electronic gate the victim had installed to protect herself. The man brought the crowbar at the urging of Kuban, who communicated with him while posing as the victim.
The threat to the victim’s safety became so great that local law enforcement felt it necessary to post deputies at her home in order to deter trespassing and harassment.
The investigation of the case was conducted by the Library of Congress-Office of the Inspector General. United States Attorney Timothy J. Heaphy, Assistant United States Attorney Ronald Huber and Special Assistant United States Attorney Jason Beaton are prosecuting the case for the United States.
Raceland Man, Ronald Breaux, Sentenced to 151 Months for Distributing Child PornographyRead the Press Release
RONALD BREAUX, age 66, of Raceland, Louisiana, was sentenced yesterday by United States District Judge Nannette Jolivette Brown to 151 months in prison for crimes involving the sexual exploitation of children, announced United States Attorney Kenneth Allen Polite, Jr. Judge Brown also ordered the defendant to pay $1,750 to one of the victims whose images he downloaded. After his term of imprisonment BREAUX will be placed on supervised release for five years.
According to court documents, BREAUX used “peer-to-peer” file sharing programs on his computer to search for, download, and share videos and images of children as young as eighteen (18)-months-old engaging in sexually explicit conduct. On September 25, 2012, law enforcement officials, led by the State of Louisiana Department of Justice - Office of the Attorney General, executed a search warrant at BREAUX’S residence and seized two computers and five electronic storage devices. BREAUX catalogued the pictures and videos in computer folders he created with names like “young,” “crime,” and “incest. In total, BREAUX downloaded, viewed, and saved at least 1,485 images and 479 videos of children being victimized.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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 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, please visit www.usdoj.gov/psc and click on the tab "resources."
This case was investigated by agents from the State of Louisiana - Office of the Attorney General. The prosecution of this case was handled by Assistant United States Attorneys Jordan Ginsberg and Matthew S. Chester.Queens Man Convicted of Bribery of A Public OfficialRead the Press Release
ALBANY, NEW YORK – On November 14, 2013, a federal jury in Albany found YANG CHIA TIEN, a/k/a ANDREW TIEN, 62, of Queens, NY, guilty of three counts of bribery of a public official, announced United States Attorney Richard S. Hartunian, Homeland Security Investigations Assistant Special Agent in Charge Nicholas DiNicola, and New York State Police Special Investigations Unit Major Thomas G. Marmion. Sentencing is scheduled for March 10, 2013 at 9:00 a.m. before Chief United States District Judge Gary L. Sharpe.
TIEN was convicted of paying a total of $51,000 to a federal immigration official with the corrupt intent to influence official acts, namely the granting of lawful permanent resident status to aliens. In reality, the recipient was an undercover law enforcement officer with Homeland Security Investigations. The payments took place on May 1, 2008, July 11, 2008, and October 8, 2008. The evidence at trial showed that TIEN made these payments in an effort to secure green cards for his “customers,” illegal aliens from Malaysia and China.
For each count of conviction, TIEN faces a maximum term of imprisonment of fifteen years and a maximum fine of $250,000.
The prosecution resulted from a joint investigation by ICE-Homeland Security Investigations and the New York State Police. The case was prosecuted by Assistant United States Attorney Sean O’Dowd.
Providence Felon Sentenced to 37 Months in Federal Prison on Firearm ChargeRead the Press Release
PROVIDENCE, R.I. – William McKinney 23, of Providence, was sentenced on Thursday to 37 months in federal prison for being a felon in possession of a firearm, announced United States Attorney Peter F. Neronha, Providence Police Chief Colonel Hugh T. Clements, Jr., and Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police.
At sentencing, U.S. District Court Judge William E. Smith also ordered McKinney to serve three years of supervised release upon completion of his prison term. McKinney pleaded guilty on August 26, 2013, to one count of being a felon in possession of a firearm.
According to information presented to the court, on December 28, 2012, a Providence Police patrolman and a Rhode Island State Police trooper working together in a marked cruiser on routine patrol encountered McKinney. As the patrolman attempted to speak with McKinney, he pivoted the right side of his body away from the officer, began to back away, turned and ran. As the patrolman and State Police trooper pursued him through the backyard of a Southside residence, McKinney tossed a loaded handgun to the ground. McKinney was apprehended a short distance away and the officers retrieved the firearm, a loaded 9mm semiautomatic pistol which contained eight hollow point bullets.
According to information presented to the court, McKinney admitted to Providence Police that he had been in possession of the firearm because he had “beefs with people” and mentioned the recent homicide of a relative.
According to information presented to the court, McKinney had been convicted previously in state court on drug possession and drug trafficking charges.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Pittsburgh Repeat Offender Sentenced to Prison for Tax ObstructionRead the Press Release
Michael Carlow, a resident of Pittsburgh, Pa., was sentenced today to serve 35 months in prison for corruptly endeavoring to obstruct the Internal Revenue Service (IRS), the Justice Department and IRS announced. The sentence was imposed by U.S. District Judge David Cercone for the Western District of Pennsylvania.
Carlow pleaded guilty to tax obstruction on Jan. 4, 2013. In an earlier case, Carlow pleaded guilty in 1996 to bank fraud and tax fraud in federal court and was sentenced to eight years in prison. After his release in 2002, Carlow resided with his girlfriend, Elizabeth Jones, in Pittsburgh.
According to documents filed in the case, the IRS assessed more than $6 million in overdue taxes, interest and penalties against Carlow for the years 1992 through 1996. However, from 2000 through 2011, in order to thwart efforts by the IRS to collect what he owed, Carlow concealed his assets and income through Jones and numerous nominee corporations. According to documents filed in the case, Carlow maintained a secret interest in various corporations and had fees and royalties paid to Jones rather than to himself. He also failed to report his ownership and control of corporate assets to the U.S. Probation Office and the IRS. Carlow filed false U.S. individual income tax returns for 2003-2006 and failed to file U.S. individual income tax returns from 2008 through 2011. In August 2011, Jones pleaded guilty to her conduct related to acting as a nominee for Carlow. Sentencing for Jones is scheduled for Dec. 18, 2013.
Kathryn Keneally, Assistant Attorney General for the department’s Tax Division, commended the investigative efforts of IRS - Criminal Investigation Special Agents, who investigated the case, and Tax Division Trial Attorneys Kenneth Vert and Jeffrey McLellan, who are prosecuting the case.
Pediatric Oncologist Pleads Guilty to Accessing Child PornRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO -- Christopher E. Pelloski, MD, 39, of Upper Arlington, Ohio, pleaded guilty in U.S. District Court today to one count of accessing child pornography.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Franklin County Sheriff Zach Scott, Upper Arlington Police Chief Brian Quinn and members of the Franklin County Internet Crimes Against Children Task Force announced the plea entered today before U.S. District Judge Algenon L. Marbley.
According to court documents, investigators patrolling the internet between March and July 2013 identified a computer belonging to Pelloski using a peer-to-peer file-sharing program and possibly possessing child pornography. The investigators executed a search warrant at Pelloski’s home on July 16, 2013 and seized numerous computers and digital media. A forensic preview of one of the computers revealed evidence of approximately 85 images of child pornography.
The crime is punishable by up to ten years in prison. Judge Marbley will set a date for sentencing.
Pelloski was a radiation oncologist at The Ohio State University Wexner Medical Center in Columbus, where he also held the title of Director of the Pediatric Radiation Oncology Program.
The Franklin County ICAC Task Force is a multi-agency effort dedicated to the fight against computer facilitated crimes against children. Since the task force began in 2009, over 400 arrests have been made and dozens of child victims of sex abuse and exploitation have been identified and rescued.
The following agencies are members:
Franklin County Sheriff’s Office
Upper Arlington Police Department
Grove City Police Department
Columbus Police Department
Grandview Heights Police Department
Whitehall Police Department
Hilliard Police Department
Westerville Police Department
Homeland Security Investigations
U.S. Secret Service
Ohio ICAC
Franklin County Prosecutor's OfficeThis case is being brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney's 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 as well as to identify and rescue victims.
U.S. Attorney Stewart commended the investigation by the ICAC Task Force and Assistant U.S. Attorney Heather Hill, who is prosecuting the case.