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10 January 2014
Manhattan U.S. Attorney Charges Member of Bronx Narcotics Organization with MurderRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Thomas J. Cannon, the Special Agent-in-Charge of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), and William J. Bratton, the Police Commissioner for the City of New York (“NYPD”), announced today the filing of a Superseding Indictment in Manhattan federal court charging CATHERINE MORALES, a member of a drug trafficking organization (the “Organization”) that operated in the Bronx, with narcotics trafficking, firearms use and possession, and murder. MORALES was arraigned yesterday before United States District Judge Richard J. Sullivan.
MORALES was previously charged in an Indictment with narcotics trafficking and firearms offenses, and was arrested by federal authorities in August 2013 in Philadelphia, Pennsylvania. She was subsequently brought to Manhattan federal court in September 2013, to face those charges in the Southern District of New York. Co-defendants Adony Nina and Candido Antomattei, leaders of the Organization, were convicted of narcotics trafficking and firearms charges following a trial in October 2013. Nine other members of the Organization have pleaded guilty to various federal narcotics and firearms charges.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Catherine Morales not only operated within a web of traffickers that spread dangerous drugs in our Bronx neighborhoods, she personally participated in the drug gang’s violence, including murdering a young woman by shooting her in the head. With this superseding indictment, she will be made to answer for her alleged conduct. This investigation and prosecution serves as a perfect example of how federal authorities, working with our local law enforcement partners, can make our streets and communities safer and free from violence.”
ATF Special Agent-in-Charge Thomas Cannon said: “The Morales indictment is a prime example of exemplary investigative work coupled with a balanced and focused prosecution. The investigation – initiated with a single arrest for weapons possession – has grown to approximately a dozen defendants and has uncovered a variety of criminal acts, including armed narcotics trafficking and homicide. I commend the ATF Agents and NYPD Detectives along with the prosecution team that have remained steadfast in their pursuit for justice. I know that the people of New York, especially those residing in the 41st precinct in the Bronx, echo my sentiments.”
NYPD Commissioner William J. Bratton said: “I would like to commend the investigators for their hard work and dedication in bringing this suspect to justice.”
According to the allegations in the Superseding Indictment filed in Manhattan federal court, other publicly filed documents, and statements made in court at MORALES’s arraignment and throughout the pendency of the case:
From 2008 through 2013, the Organization’s members sold crack cocaine and heroin, among other drugs, primarily in the vicinity of Longwood Avenue, and Beck, Kelly, and Simpson Streets in the Bronx. MORALES was involved primarily in the sale of heroin in the vicinity of Simpson and East 163rd Streets.
During and in relation to MORALES’s participation in the drug trafficking conspiracy, MORALES fatally shot victim Aisha Morales, who was 21 at the time of her death, in the head. The shooting took place in the vicinity of 1018 East 163rd Street, and was sparked by a drug-related dispute.
MORALES, 28, of Bronx, New York, is charged with one count of conspiring to distribute and possess with the intent to distribute crack cocaine and heroin, which carries a mandatory minimum sentence of 10 years in prison and a potential maximum sentence of life in prison; one count of possessing firearms that were brandished and discharged, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; one count of using firearms to cause the death of another person during and in relation to the narcotics conspiracy, which carries a potential maximum sentence of life in prison, and one count of intentionally killing an individual while engaged in the narcotics conspiracy, which carries a mandatory minimum sentence of 20 years in prison, and a potential maximum sentence of life in prison.
Mr. Bharara praised the outstanding investigative work of the ATF and the NYPD, and added that the investigation is continuing.
The prosecution is being handled by the Office’s Violent Crimes Unit. Assistant U.S. Attorneys Christopher DiMase and Sarah Krissoff are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Catherine Morales S9 Indictment
Leader of Lawrence County Drug Ring SentencedRead the Press Release
PITTSBURGH - Two residents of New Castle, Pa., were sentenced in federal court today. Christopher Klingensmith was sentenced to 17 and ½ years incarceration and James Cracraft was sentenced to 37 months incarceration, to be followed by 3 years supervised release, on their convictions of violating the narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentences on Christopher Klingensmith, 39, and James Cracraft, 39.
According to information presented to the court, between September 2008 and June 2011, a drug ring operated in the New Castle area, selling highly-addictive narcotic pills containing oxycodone on the street to drug users. Larry Dorsey, a former New Castle resident who was living in Florida during the conspiracy, was the supplier for Klingensmith and Cracraft and others charged in this indictment. Klingensmith was the leader of the drug organization in New Castle, and Cracraft was a distributor. Eleven individuals were charged in the drug conspiracy, and all have pleaded guilty. Four of the co-conspirators were relatives of Christopher Klingensmith, including his father, a brother, and a sister.
Nearly 50,000 oxycodone pills were sold during the conspiracy. The evidence showed that the oxycodone purchased for $9 a pill in Florida was being resold in New Castle for up to $25 a pill.
Assistant United States Attorney Gregory J. Nescott prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Drug Enforcement Administration, the New Castle Police, and the Pennsylvania State Police for the investigation leading to the successful prosecution of Christopher Klingensmith and James Cracraft.
Kapolei Man Convicted of Methamphetamine TraffickingRead the Press Release
HONOLULU – After a three-day trial in United States District Court in Honolulu, a federal jury today found Ernesto Hernandez, 51, of Kapolei guilty of conspiring to distribute and possess, with intent to distribute, 50 grams or more of methamphetamine from April to May, 2013 as well as possessing methamphetamine with the intent to distribute.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that the evidence presented at trial showed that Hernandez agreed with other individuals to distribute methamphetamine that was sent from California, via express mail service, to Honolulu in early May 2013. The evidence also established that Hernandez arranged the shipment of 213 grams of pure methamphetamine which was intercepted at the Honolulu Airport on May 7, 2013 by Federal Express security personnel. Hernandez was also found to be in possession of methamphetamine, with the intent to distribute, when the Drug Enforcement Administration executed a search warrant at a Kapolei residence on May 8, 2013.
Hernandez faces up to life in prison with a mandatory minimum ten year term of imprisonment when he is sentenced by U.S. District Judge J. Michael Seabright on April 28, 2014.
The investigation which resulted in the charges in the case was conducted by the Drug Enforcement Administration and Hawaii Airport Task Force.
Assistant U.S. Attorney Mark A. Inciong handled the prosecution.
Justice Department Issues Statement on U.S. District Court Ruling That <br /> Bazaarvoice’s Acquisition of PowerReviews Violated Antitrust LawsRead the Press Release
Assistant Attorney General Bill Baer in charge of the Department of Justice’s Antitrust Division made the following statement today after the U.S. District Court for the Northern District of California found that Bazaarvoice Inc. violated Section 7 of the Clayton Act by acquiring its primary rival, PowerReviews Inc:“By acquiring its only significant rival, Bazaarvoice deprived its customers of the benefits of competition. We are pleased that the court, after carefully weighing all of the evidence, agreed with the Justice Department that Bazaarvoice’s acquisition of PowerReviews was likely to extinguish price competition and substantially diminish the pace of innovation in the market for product ratings and reviews platforms.
“As shown during trial, Bazaarvoice executives clearly intended to eliminate competition by acquiring PowerReviews. Consistent with Bazaarvoice’s own pre-merger view of the marketplace, the evidence presented at trial demonstrated that PowerReviews was a significant threat to Bazaarvoice and that other rivals are poorly positioned to fill the competitive void created by the merger.
“I am proud of the excellent work done by the trial team on behalf of U.S. consumers. As today’s decision reaffirms, anticompetitive transactions that are not reported to federal agencies will not receive a free pass from antitrust scrutiny.”
Background
On Jan.10, 2013, the department filed a civil antitrust lawsuit in the U.S. District Court for the Northern District of California against Bazaarvoice. The department alleged that Bazaarvoice’s June 2012 acquisition of PowerReviews eliminated the company’s only significant rival, in violation of the antitrust laws.
Bazaarvoice’s acquisition of PowerReviews was not required to be reported under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, which requires companies to notify and provide information to the department and the Federal Trade Commission before consummating certain acquisitions. The department began its investigation shortly after the transaction closed.
The department’s trial against Bazaarvoice, which was overseen by Judge William Orrick, began on Sept. 23, 2013. The trial lasted three weeks, with closing arguments taking place on Oct. 15, 2013. The court scheduled a hearing on Jan. 22, 2014, to discuss procedures for the remedy phase of the litigation.
Jury Finds Fresno Man Guilty of Mortgage Fraud SchemeRead the Press Release
FRESNO, Calif. — After a four-day trial, a federal jury announced it had reached a verdict at 5:15 p.m., United States Attorney Benjamin B. Wagner announced.
The jury found Randy Lee Wilkins, 47, of Gilroy, guilty on all counts in connection with a mortgage fraud scheme: one count of conspiracy to commit wire fraud and bank fraud, three counts of bank fraud, and three counts of wire fraud. United States District Judge Lawrence J. O’Neill committed Wilkins into custody immediately following the jury verdict.
According to court documents and evidence presented at trial, between April 2006 and May 2007, Wilkins conspired with a business partner, Joseph George Tkac, and another individual to fraudulently obtain mortgages for three houses in Fresno on E. Ashlan, S. Phillip, and N. Adoline Avenues. Wilkins and his partners carried out the scheme through a business called JR Properties & Investments. They also obtained a home equity line of credit on one of the houses.
Wilkins had applications for the home loans submitted in Tkac’s name, who had better credit. The loan applications contained false statements concerning Tkac’s income, assets, liabilities, and intent to occupy the properties as his personal residence. Although the loans were taken out in Tkac’s name, the properties were later transferred to JR Properties and Investments.
In addition to obtaining the loans from financial institutions based on false statements and misrepresentations, Wilkins received kickbacks funded by loan origination fees and other charges. The proceeds from the home equity line of credit, and other funds received through the scheme, ended up in either the JR Properties and Investments bank account or in a personal account controlled by Wilkins. Notably, the kickbacks were not disclosed to the lending institutions on the HUD-1 settlement statements as required.
According to evidence presented at trial, Wilkins used the loan proceeds for his living expenses and to gamble at a local casino. For several months Wilkins made payments on the real estate loans to the lenders. Ultimately, however, he stopped making payments and the properties went into foreclosure. As a result of Wilkins’s conspiracy and scheme to defraud, the lenders on the home loans suffered more than $615,000 in losses.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Kirk E. Sherriff and Grant B. Rabenn are prosecuting the case.
Wilkins is scheduled to be sentenced on March 24, 2014 by United States District Judge Lawrence J. O’Neill. Wilkins faces a maximum sentence of 30 years in prison and a $1 million fine on each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Tkac previously pleaded guilty to conspiracy to commit mail fraud and bank fraud for his involvement in this scheme. He is scheduled to be sentenced on February 24, 2014. (Case no. 1:10-cr-00152 LJO).
Irish National Sentenced to Serve 14 Months in Prison for Trafficking of Endangered Rhinoceros HornsRead the Press Release
Michael Slattery Jr., an Irish national, was sentenced in federal court in Brooklyn, N.Y., today to serve 14 months in prison to be followed by three years of supervised release, for conspiracy to violate the Lacey Act in relation to illegal rhinoceros horn trafficking, announced Acting Assistant Attorney General Robert G. Dreher for the Environment and Natural Resources Division of the Department of Justice, U.S. Attorney Loretta E. Lynch for the Eastern District of New York, and Director Dan Ashe of the U.S. Fish and Wildlife Service. Slattery was also sentenced to pay a $10,000 fine and forfeit $50,000 of proceeds from his illegal trade in rhino horns.
Slattery was arrested in September 2013 as part of “Operation Crash,” a nation-wide crackdown in the illegal trafficking in rhinoceros horns, for his role in trafficking raw rhinoceros horns from Texas to customers in New York. Slattery was sentenced today by U.S. District Judge John Gleeson of the Eastern District of New York.
“Mr. Slattery is today being held accountable for his participation in the illegal trade in wildlife species and products, which threatens the very existence of highly-endangered rhino species,” said Acting Assistant Attorney General Dreher. “We will continue this active and ongoing investigation and wish to send a clear message to buyers and sellers that we will vigorousl y prosecute those who are involved in this devastating trade.
“We take seriously our obligation to protect these links to the Earth’s prehistoric past,” said U.S. Attorney Lynch. “Michael Slattery’s actions were part of the exploitation and decimation of these animals from their only known predator – man. He is now being held to account for his actions in furthering this devastating trade.”
“We’re reaching a tipping point, where the unprecedented slaughter of rhinos and elephants happening now threatens the viability of these iconic species’ wild populations in Africa,” said Director Ashe. “This slaughter is fueled by illegal trade, including that exposed by Operation Crash. We will continue to work relentlessly across the United States government and with our international partners to crack down on poaching and wildlife trafficking.”
According to the information, plea agreement and statements made during court proceedings: In China and Vietnam, rhinoceros horns are highly prized because they are believed to have medicinal value. The escalating value of the horns has resulted in an increased demand that has helped fuel a thriving black market.
In pleading guilty, Slattery admitted to participating in a conspiracy to travel to and within the United States to purchase rhinoceros horns, which he, along with others, then resold to private individuals or consigned to auction houses in the United States, knowing that the interstate purchase and sale of the horns was illegal. Due to their dwindling populations, all rhinoceros species are protected under international trade agreements.
Rhinoceros are a herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under United States and international law. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 170 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets.
Operation Crash is a continuing investigation being conducted by the Department of the Interior’s Fish and Wildlife Service (FWS) in coordination with other federal and local law enforcement agencies including U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. A “crash” is the term for a herd of rhinoceros. Operation Crash is an ongoing effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns.
The investigation was handled by the U.S. Fish & Wildlife Service, the U.S. Attorney’s Office for the Eastern District of New York and the Justice Department’s Environmental Crimes Section. Assistant U.S. Attorney Julia Nestor and Trial Attorney Gary N. Donner of the Justice Department’s Environmental Crimes Section are in charge of the prosecution.Information: Federal Court Initial AppearancesRead the Press Release
The United States Attorney's Office today announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Lynch in Missoula on January 8, 2014, and entering pleas of Not Guilty were:
- JEFFREY NOENNIG, a 48 year-old resident of San Diego, California appeared on charges of child exploitation enterprise and conspiracy to advertise child pornography. If convicted, NOENNIG faces possible penalties of life in prison. The investigation was a cooperative effort between the Federal Bureau of Investigation, Homeland Security Investigations, Internet Crimes Against Children Task Force, Montana Division of Criminal Investigations, Polson Police Department and Helena Police Department.
- JOSHUA PETERSON, a 45 year-old resident of Prescott, Arizona appeared on charges of child exploitation enterprise and conspiracy to advertise child pornography. If convicted, PETERSON faces possible penalties of life in prison. The investigation was a cooperative effort between the Federal Bureau of Investigation, Homeland Security Investigations, Internet Crimes Against Children Task Force, Montana Division of Criminal Investigations, Polson Police Department and Helena Police Department.
Appearing before U.S. Magistrate Judge Ostby in Billings on January 9, 2014, and entering pleas of Not Guilty were:
- JAMES M. CRITTENDEN, a 49-year-old resident of Billings appeared on charges of bank fraud, wire fraud, bankruptcy fraud and mail fraud. If convicted, CRITTENDEN faces possible penalties of 30 years in prison. The investigation was a cooperative effort between the Federal Bureau of Investigation and the Billings Police Department.
The indictment is merely a formal charging document. It is not proof of guilt and all persons indicted are presumed to be innocent of any crime until proof of guilt is established by trial or guilty plea.
The U.S. Attorney's Office is currently transitioning its media program to new media contacts. Resources and this transition may affect the amount of information the office can process and disclose in a timely manner. Therefore, if any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html.
To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Guilty Plea in Counterfeit Viagrar and Cialisr CaseRead the Press Release
HOUSTON - Mohammad Jamal Rashid, 45, has pleaded guilty to one count of conspiracy related to the illegal importation and attempted trafficking of counterfeit drugs and one count of receiving and delivering misbranded drugs, announced United States Attorney Kenneth Magidson along with Special Agent in Charge Brian Moskowitz of Homeland Security Investigations (HSI) and Resident Agent in Charge Tommy R. Hennesy from the Food and Drug Administration – Office of Criminal Investigations (FDA-OCI).
“This conviction is the culmination of a multi-agency effort to prevent the smuggling and distribution of counterfeit pharmaceuticals across international borders,” said Moskowitz. “This will serve as a reminder to those that choose to engage in illegal activity and endanger the public - that HSI will use all of its resources to identify, investigate and dismantle these criminal networks wherever they operate.”
Rashid, a legal permanent resident originally from Pakistan and residing in Houston, admitted he conspired to illegally import counterfeit and misbranded Viagra® and Cialis® to his home in Houston under a false name and with a false declaration waybill. A total of 3,200 counterfeit Viagra® and 4,000 counterfeit Cialis® were sent to the defendant’s home from China in open foil blister packs without packaging or labels.
Although the drugs sent to Rashid looked authentic, testing conducted by the FDA, Pfizer and Eli Lilly confirmed the drugs were not authentic and were in fact counterfeit and misbranded. The tablets had inconsistencies in physical appearance and packaging. Additionally, the counterfeit Viagra® had less of Pfizer’s active pharmaceutical ingredient than the 100 mg stated on the foil pack, while the counterfeit Cialis® did not contain any of Eli Lilly’s active pharmaceutical ingredient.
“Distributing counterfeit and misbranded drugs puts the health of the public at risk,” said Hennesy. “The FDA will take firm action to protect unsuspecting consumers from products that are deceptive and could be dangerous to their health.”
U.S. District Judge David Hittner, who accepted the plea, has set sentencing for April 7, 2014. At that time, Rashid is facing a possible punishment is up to five years in prison and a $250,000 fine for the conspiracy conviction and a maximum of three years and a $10,000 fine for receiving and delivering the misbranded drugs into interstate commerce.
Previously released on bond, Rashid was taken into custody following the hearing today where he will remain pending sentencing.
The investigation into Rashid was conducted by HSI and FDA-OCI. Assistant United States Attorney Julie Redlinger is prosecuting the case.
Guam and NMI U.S. Attorney’s Office Collects $575,199.11 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
(Hagatna, Guam) - U.S. Attorney ALICIA A.G. LIMTIACO announced today that the Districts of Guam and the Northern Mariana Islands collected $575,199.11 in criminal and civil actions in Fiscal Year 2013. Of this amount, $542,674.11was collected in criminal actions and $32,525 was collected in civil actions
Attorney General Eric Holder announced on Thursday that the Justice Department collected $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“During this time of economic and fiscal challenges, these collections are more important than ever,” said U.S. Attorney Limtiaco. “The U.S. Attorney’s Office is dedicated to protecting the public and recovering funds for victims of federal crime and for the federal treasury. We will continue to hold accountable those who seek to profit from their illegal activities.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
dditionally, the U.S. Attorney’s office in Guam working with partner agencies and divisions, collected$36,220.00 in asset forfeiture actions in FY 2013. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Fraudulent Vending Machine Business Reference Sentenced to Prison TermRead the Press Release
PITTSBURGH – A resident of Clarion, Pa., was sentenced today in federal court to one year and a day, and ordered to pay $215,033.00 in restitution, on her conviction of criminal conspiracy, United States Attorney David J. Hickton announced today.
United States District Court Judge David Stewart Cercone imposed sentence upon Pearl Pastilock, 50.
According to information presented to the court, Pastilock worked as a fraudulent reference for the business, American Vending Systems, Inc. (AVS). AVS sold energy candy vending machine business opportunities. Potential purchasers were told that, for a minimum purchase price of approximately $10,000, they would receive candy vending machines, an initial supply of candy, and assistance in running their business opportunity. In reality, the business opportunity was not lucrative for purchasers. Pastilock made and received interstate phone calls wherein she told potential purchasers that she successfully operated an AVS business and made substantial income, when in fact she did not operate the business at all and was being paid to defraud potential purchasers.
Assistant United States Attorney Mary McKeen Houghton and Trial Attorney Patrick R. Runkle, Consumer Protection Branch, Department of Justice, prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Inspectors of the United States Postal Inspection Service, who conducted the investigation that led to the successful prosecution of Pastilock.
Former Yoakum County Sheriff’s Deputy Sentenced to 48 Months in Federal PrisonRead the Press Release
LUBBOCK, Texas — Inoe R. Valdez, Jr., 43, a former deputy sheriff with the Yoakum County Sherriff’s Department (YCSD), was sentenced this morning by U.S. District Judge Sam R. Cummings to serve 48 months in federal prison and a year of supervised release on a federal conviction stemming from his involvement in a cocaine distribution conspiracy, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. He must surrender to the Bureau of Prisons by February 14, 2014.
Valdez pleaded guilty to one count of unlawful use of a communications facility.
Valdez admitted that from July 2009 until approximately August 2010, he used a cellphone to commit, cause and facilitate a conspiracy to distribute and possess with the intent to distribute cocaine and distribution and possession with intent to distribute cocaine.
According to documents filed in the case, in February 2010, investigators with the Texas Department of Public Safety (DPS) learned that Valdez was associating with a particular individual who was suspected of trafficking controlled substances in Yoakum County, Texas. Following a traffic stop of this individual, DPS learned that this individual had Valdez’s cell phone number saved in his cell phone and in fact, had made 15 calls to, and received one call from, Valdez, during the period November 1, 2009 to March 18, 2010.
This individual advised DPS that Valdez had instructed him/her to call or text him and say that he/she “had some information” for Valdez, which would be the signal for Valdez to go to that individual’s home so they could discuss narcotics-related matters. This individual advised that in winter 2009, Valdez asked him/her for three to four ounces of cocaine to give to another individual in Brownsfield, Texas. This individual sold Valdez three ounces of cocaine for $2,100. This individual also advised DPS that this was not the only time he/she furnished cocaine to Valdez.
In June 2010, a person, working at the direction of the DPS, met Valdez and asked Valdez for $50 worth of cocaine. Valdez advised this person that he would provide it in a day or two. This person told Valdez that they had a friend who was going to send them cocaine from Mexico. Valdez advised that he would purchase one-quarter of a kilogram of cocaine per week at $500 per ounce and sell it for $800 per ounce. Valdez also indicated an interest in receiving marijuana.
When DPS investigators interviewed Valdez in November 2011, he stated that his financial debts had become overwhelming, and he had discussed a joint venture with the first individual to smuggle 200-300 pounds of marijuana to Oklahoma or Kansas. Valdez advised that this venture never materialized, but that this same individual later approached Valdez about selling cocaine and Valdez agreed.
Valdez admitted that from summer 2009 to summer 2010, while he worked as a deputy in the YCSD, he distributed approximately 1.5 pounds of cocaine. Valdez stated that he stopped selling cocaine in August 2010 because he learned he was under investigation; shortly thereafter, he resigned from the YCSD.
The investigation was conducted by the Texas DPS, the FBI, the Yoakum County District Attorney’s Office and the Yoakum County Sheriff’s Office. Assistant U.S. Attorney Jeffrey Haag prosecuted.
Former RCMP Member Sentenced to 8 Years in Prison for Leadership of Drug Trafficking ConspiracyRead the Press Release
A former member of the Royal Canadian Mounted Police (RCMP) was sentenced today in U.S. District Court in Seattle to eight years in prison for his leadership role in a massive drug trafficking conspiracy, announced U.S. Attorney Jenny A. Durkan. RAPINDER SINGH SIDHU, 46, formerly of Abbotsford, British Columbia, Canada, was indicted in August 2011 and was extradited to the U.S. in March 2013. He pleaded guilty to conspiracy to export cocaine in October 2013. SIDHU is one of 56 people indicted as part of an international drug trafficking investigation. The leader of the conspiracy, Robert Shannon, was sentenced to 20 years in prison in March 2009. At sentencing U.S. District Judge Robert S. Lasnik said SIDHU “desired to get money and be part of a major drug conspiracy and be of use to criminals.”
“This defendant betrayed his community and the law enforcement officers who risk their lives to keep us safe,” said U.S. Attorney Jenny A. Durkan. “Mr. Sidhu recruited another public servant to the scheme, and used threats of violence to force others into criminal conduct. His greed led him to become a trusted member of an organized crime conspiracy who sold his specialized knowledge from years in law enforcement.”
According to records filed in the case, SIDHU left employment with the RCMP disgruntled about his treatment. Before and during 2007 and 2008 SIDHU used his law enforcement knowledge to assist a criminal conspiracy allied with the Hells Angels to import large loads of cocaine into Canada and to smuggle B.C. Bud marijuana into the U.S. SIDHU recruited a corrupt border services employee to help get the cocaine through customs check points and into Canada. The investigation of the criminal ring resulted in the seizure of more than 1700 pounds of cocaine and $3.5 million in currency.
“From the start, this defendant has tried to downplay his role in the scheme,” said Brad Bench, special agent in charge of ICE’s Homeland Security Investigations in Seattle. “However, it is hard to believe that a former police officer who exploited his police knowledge and contacts to profit from the drug trade, did not know exactly what he was doing. HSI and our Canadian law enforcement partners are committed to ensuring the U.S.-Canada border is not a barrier to justice. Criminals who think they can violate our border’s integrity with impunity, can and will be held accountable in a court of law.”
In asking the court for an eight year prison term, prosecutors wrote SIDHU “organized and choreographed an entire cast of characters who moved enormous quantities of cocaine, with great success, thousands of miles. Even more troubling, according to several of his co-conspirators, he exploited the violence of the criminal organizations with which he was allied to intimidate them and others into doing his bidding.”
Two defendants in the case remain fugitives. Sentences for 54 other defendants have ranged from 20 years for Shannon, and ten and eleven year sentences for some drug smugglers, to probation for some less culpable defendants.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. This investigation was led by U.S. Immigration and Customs Enforcement (ICE), with significant support from the Drug Enforcement Administration (DEA), and the Snohomish Regional Drug Task Force.
This lengthy case was prosecuted by multiple attorneys including Assistant United States Attorney John Lulejian, now with the U.S. Attorney’s Office in the Central District of California and Special Assistant United States Attorney Adam Cornell, now with the Snohomish County Prosecutors Office. Currently the case is being prosecuted by Assistant United States Attorney Sarah Vogel.
Former Nurse Aide Sentenced for Conspiracy and Aggravated Identity TheftRead the Press Release
NORFOLK, Va. – Emmanuel Effiong, 36, formerly of Virginia Beach, Virginia, was sentenced today to 81 months in prison, followed by three years of supervised release, for conspiracy to defraud the government and aggravated identity theft.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia and Trevor Nelson, Assistant Special Agent in Charge, Treasury Inspector General for Tax Administration (TIGTA), made the announcement after sentencing by United States District Judge Arenda Wright Allen.
Effiong pleaded guilty on October 11, 2013. According to court documents, Effiong and his codefendant Festus Ighalo, originally from Nigeria and now naturalized U.S. citizens, were formerly nurse aides at Sentara’s Virginia General Hospital in Virginia Beach. They used their positions there to obtain Personally Identifiable Information (PII), such as dates of birth and social security numbers, from thousands of patients mostly located in the Tidewater area. Then, with the help of others located elsewhere in the U.S. and Nigeria, that information was used to submit fraudulent federal tax returns with the Internal Revenue Service and receive tax refunds in the patients’ names. Ighalo also pleaded guilty and will be sentenced on January 24, 2014.
This case was investigated by IRS Criminal Investigation and the Treasury Inspector General for Tax Administration (TIGTA). Assistant United States Attorney Elizabeth M. Yusi prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Former MPD Officer Sentenced for Stealing from Woman Who Was Under Arrest-Officer Took and Cashed $962 in Money Orders-Read the Press Release
WASHINGTON – A former Metropolitan Police Department (MPD) officer, Alexander Rodriguez, was ordered today to perform 40 hours of community service and placed on six months of probation for stealing $962 in money orders from a woman who was under arrest, U.S. Attorney Ronald C. Machen Jr. announced.
Rodriguez, 33, pled guilty in November 2013 in the Superior Court of the District of Columbia to a charge of second-degree theft. He was sentenced by the Honorable John McCabe. The judge sentenced Rodriguez to 90 days of incarceration, but suspended the jail time provided that the defendant successfully completes a six-month term of probation.
As a condition of his plea agreement, Rodriguez, who had worked for more than five years for MPD, resigned his position. He also paid the victim $1,200 in restitution, covering the value of the two money orders and related costs and the dollar equivalent of a day of lost pay for which she was not compensated by her employer.
According to the government’s evidence, on July 4, 2013, at about 2:30 a.m., Rodriguez responded to the area of Benning Road and Southern Avenue SE to investigate a traffic accident involving the woman. After she was placed under arrest for driving under the influence, Rodriguez took possession of her purse, which contained two money orders.
While at the Sixth District police station, Rodriguez searched the woman’s purse and found a loaded handgun. He then amended the charges against her and continued his inventory of the purse. He listed several items, including credit cards, a phone, $2.01, a driver’s license, and multiple smaller purses. However, he did not list the money orders.
After the woman’s release from jail, she returned to the Sixth District to retrieve her property. She found that the two money orders were missing and initiated a trace of them through Western Union. The trace found that both money orders had been cashed and were made out to “Alexander Rodriguez Photograph.” The money orders were cashed by a person later identified as Rodriguez in Alexandria, Va., and the signatures on both the front and back of the cashed money orders matched those on his lease agreement and related checks.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Criminal Investigator Matthew Kutz, Paralegal Specialist Krishawn Graham, and Assistant U.S. Attorney Jean Sexton, who prosecuted the matter.
14-006Former Housing Official in Washington CountyPleads Guilty to Federal Theft ChargeRead the Press Release
TOPEKA, KAN. - The former executive director of the housing authority in Linn, Kan., pleaded guilty Friday to a federal theft charge, U.S. Attorney Barry Grissom said.
Debra L. Savage, 53, Linn, Kan., pleaded guilty to one count of theft from a federal program. In her plea, she admitted that between Dec. 3, 2009, and Dec. 1, 2012, she used a credit card issued to the Linn Housing Authority for personal expenses totaling more than $7,652.
Sentencing is set for April 4. She faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. Grissom commended the U.S. Department of Housing and Urban Development, Office of Inspector General, the FBI and Assistant U.S. Attorney Christine Kenney for their work on the case.Former Hells Angel Member Sentenced for Stealing Shipment from RailcarRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Richard E. Riedman, 40, of Webster, N.Y., who was convicted of conspiracy to burglarize a railroad car and theft of an interstate shipment following a jury trial, was sentenced to 37 months in prison and ordered to pay $4,669.26 in restitution by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Brett A. Harvey, who handled the case, stated that, in the early morning hours of June 30, 2009, Riedman, a former member of the Hells Angels Motorcycle Club, along with co-conspirators Christopher Monfort, Anthony Toscano, Anthony Russell, and Timothy Stone, stole more than 17 gross tons of a high-grade scrap steel from a railcar at a CSXT rail yard in Batavia, N.Y. Riedman and his co-conspirators used a logging truck to remove the scrap steel from the railcar, wore dark clothing and used lookouts to avoid detection by law enforcement authorities and pedestrians, and used two-way radios to communicate with each other during the theft. The defendants were caught by members of the Genesee County Sheriff's Office in the logging truck and a pick-up truck as they left the scene of the theft in the early morning hours of June 30, 2009. The bales were in the process of being shipped to a steel mill in Pennsylvania when they were stolen. Riedman, Toscano, Russell and Stone were convicted after a two-week jury trial before Judge Siragusa in September 2012.
Judge Siragusa previously sentenced Toscano to 18 months in prison, Russell to 15 months, and Stone to 12 months. Monfort, who pleaded guilty to burglary from a railroad car and the manufacture of 50 or more marijuana plants, was sentenced by Judge Siragusa to 78 months in prison.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig, and the Genesee County Sheriff's Office, under the direction of Gary Maha.Former HealthEssentials Solutions Inc. Executives to Pay More <br /> Than $1 Million to Resolve Allegations of Submitting False Claims <br /> to Federal Health Care ProgramRead the Press Release
Michael R. Barr, former chief executive officer of Louisville, Kentucky-based HealthEssentials Solutions Inc., has agreed to pay $1 million to resolve allegations that he knowingly caused HealthEssentials to submit false claims to Medicare between 1999 and 2004, the Justice Department announced today. Norman J. Pfaadt, HealthEssentials’ former chief financial officer, also agreed to pay $20,000 to resolve similar allegations. H ea lt h E s s e nt i a ls p r o vi d ed p r i m a ry m e di c al c a re to p a ti e nts in nursing fa cilit ies, assisted living facilities and other settings from 1998 until it filed for bankruptcy and ceased operations in 2005. Barr founded HealthEssentials and served as its president, chief executive and board chairman. Pfaadt served as HealthEssentials’ senior vice president and chief financial officer.
“Healthcare executives should lead by example and create cultures of compliance within their companies, not pressure their employees to cheat the taxpayers,” said Assistant Attorney General for the Civil Division Stuart F. Delery. “We will continue to hold health care executives personally accountable for their dealings with Medicare.”
“Pursuing health care fraud is a priority of this office and the Department of Justice,” said U.S. Attorney for the Western District of Kentucky David J. Hale. “We will continue to work with the Department of Health and Human Services and the public to ensure that fraudulent claims are investigated and those responsible are required to pay.”
In March 2008, HealthEssentials pleaded guilty to submitting false statements to Medicare relating to services it provided to patients in assisted living facilities and entered into a civil settlement with the government. In May 2011, HealthEssentials’ former director of billing, Karen Stone, pleaded guilty for her role in the company’s billing scheme.
The settlement announced today resolves Barr’s and Pfaadt’s alleged liability under the False Claims Act for their roles in HealthEssentials’ false billings. The government alleged that, between 1999 and 2004, HealthEssentials billed for services that were inflated or not medically necessary and that Barr and Pfaadt pressured HealthEssentials employees to inflate the company’s billings, despite having been advised by attorneys and others that doing so would be improper. The government further alleged that Barr pressured HealthEssentials employees to conduct special medical assessments on patients, without regard to whether the patients required the assessments, solely to increase the amount that HealthEssentials could bill for the visits. As part of the settlement, Barr has agreed to a three-year period of exclusion from participating in federally funded health care programs.“Executives cheating taxpayers and patients – as alleged in this case – should beware of exclusion from Medicare, Medicaid and all other federal health programs, as well as criminal and civil liability,” said Inspector General of the U.S. Department of Health and Human Services Daniel R. Levinson. “Vulnerable beneficiaries deserve protection from potentially harmful, medically unnecessary services.”
The allegations that were resolved by the settlement arose in part from a lawsuit filed by former HealthEssentials employees Michael and Leigh RoBards under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring suit on behalf of the government and to share in any recovery. Mr. and Mrs. RoBards will receive a total of $153,000.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $17 billion through False Claims Act cases, with more than $12.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The case was handled by the Commercial Litigation Branch, Civil Division, U.S. Department of Justice and the U.S. Attorney’s Office for the Western District of Kentucky, with assistance from the Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation.
The claims settled by this agreement are allegations only; there has been no determination of liability. The case is captioned United States ex rel. Stydinger, et al. v. Michael R. Barr and Norman J. Pfaadt, Civil No. 3:03-cv-00380-TBR (W.D. Ky.).Former HealthEssentials Solutions Inc. Executives to Pay More Than $1 Million to Resolve Allegations of Submitting False Claims to Federal Health Care ProgramRead the Press Release
WASHINGTON – Michael R. Barr, former chief executive officer of Louisville, Kentucky-based HealthEssentials Solutions Inc., has paid $1 million to resolve allegations that he knowingly caused HealthEssentials to submit false claims to Medicare between 1999 and 2004, the Justice Department announced today. Norman J. Pfaadt, HealthEssentials’ former chief financial officer, also agreed to pay $20,000 to resolve similar allegations. HealthEssentials provided primary medical care to patients in nursing facilities, assisted living facilities and other settings from 1998 until it filed for bankruptcy and ceased operations in 2005. Barr founded HealthEssentials and served as its president, chief executive and board chairman. Pfaadt served as HealthEssentials’ senior vice president and chief financial officer.
“Healthcare executives should lead by example and create cultures of compliance within their companies, not pressure their employees to cheat the taxpayers,” said Assistant Attorney General for the Civil Division Stuart F. Delery. “We will continue to hold health care executives personally accountable for their dealings with Medicare.”
“Pursuing health care fraud is a priority of this office and the Department of Justice,” said U.S. Attorney for the Western District of Kentucky David J. Hale. “We will continue to work with the Department of Health and Human Services and the public to ensure that fraudulent claims are investigated and those responsible are required to pay.”
In March 2008, HealthEssentials pleaded guilty to submitting false statements to Medicare relating to services it provided to patients in assisted living facilities and entered into a civil settlement with the government. In May 2011, HealthEssentials’ former director of billing, Karen Stone, pleaded guilty for her role in the company’s billing scheme.
The settlement announced today resolves Barr’s and Pfaadt’s alleged liability under the False Claims Act for their roles in HealthEssentials’ false billings. The government alleged that, between 1999 and 2004, HealthEssentials billed for services that were inflated or not medically necessary and that Barr and Pfaadt pressured HealthEssentials employees to inflate the company’s billings, despite having been advised by attorneys and others that doing so would be improper. The government further alleged that Barr pressured HealthEssentials employees to conduct special medical assessments on patients, without regard to whether the patients required the assessments, solely to increase the amount that HealthEssentials could bill for the visits. As part of the settlement, Barr has agreed to a three-year period of exclusion from participating in federally funded health care programs.
“Executives cheating taxpayers and patients – as alleged in this case – should beware of exclusion from Medicare, Medicaid and all other federal health programs, as well as criminal and civil liability,” said Inspector General of the U.S. Department of Health and Human Services Daniel R. Levinson. “Vulnerable beneficiaries deserve protection from potentially harmful, medically unnecessary services.”
The allegations that were resolved by the settlement arose in part from a lawsuit filed by former HealthEssentials employees Michael and Leigh RoBards under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring suit on behalf of the government and to share in any recovery. Mr. and Mrs. RoBards will receive a total of $153,000.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $17 billion through False Claims Act cases, with more than $12.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The case was handled by the Commercial Litigation Branch, Civil Division, U.S. Department of Justice and the U.S. Attorney’s Office for the Western District of Kentucky, with assistance from the Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation.
The claims settled by this agreement are allegations only; there has been no determination of liability. The case is captioned United States ex rel. Stydinger, et al. v. Michael R. Barr and Norman J. Pfaadt, Civil No. 3:03-cv-00380-TBR (W.D. Ky.).
Former Connecticut Resident Arrested After Attempting to Ship Sensitive Military Documents to IranRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that MOZAFFAR KHAZAEE, also known as “Arash Khazaie,” 59, formerly of Manchester, Conn., has been arrested on a federal criminal complaint after he attempted to ship to Iran proprietary material relating to the U.S. Air Force’s F35 Joint Strike Fighter program and military jet engines that he had stolen from defense contractors where he had been employed. KHAZAEE was arrested yesterday at Newark Liberty International Airport in New Jersey, and the complaint was ordered unsealed this morning by a U.S. magistrate judge in Bridgeport, Conn.
As alleged in the criminal complaint, federal law enforcement agents began investigating KHAZAEE in November 2013 when officers with U.S. Customs and Border Protection Service (“CBP”), assisted by Homeland Security Investigations (“HSI”) special agents, inspected a shipment that KHAZAEE sent by truck from Connecticut to a freight forwarder located in Long Beach, Calif., which was intended for shipment from the U.S. to Iran. The documentation for KHAZAEE’s shipment indicated that it contained household goods. Upon inspecting the shipment, however, CBP officers and HSI personnel discovered that the content of the shipment primarily contained numerous boxes of documents consisting of sensitive technical manuals, specification sheets, and other proprietary material relating to the U.S. Air Force’s F35 Joint Strike Fighter program and military jet engines. Upon further investigation, law enforcement learned that KHAZAEE holds Iranian and U.S. citizenship and, as recently as August 2013, worked as an engineer for defense contractors, including firms that are the actual owners of the technical and proprietary documents and materials in KHAZAEE’s shipment.
KHAZAEE, who became a naturalized U.S. citizen in 1991 and holds a valid U.S. passport, recently moved from Connecticut to Indianapolis. He was arrested after flying from Indianapolis to Newark, before he was able to board a connecting flight to Frankfurt, Germany. KHAZAEE’s ticketed destination was Tehran, Iran.
KHAZAEE appeared today before U.S. Magistrate Judge James B. Clark III in Newark and is detained pending his transport to Connecticut for further proceedings.
The complaint charges KHAZAEE with transporting, transmitting and transferring in interstate or foreign commerce goods obtained by theft, conversion, or fraud. The charge carries a maximum term of imprisonment of 10 years and a fine of up to $250,000.
This matter is being investigated by Homeland Security Investigations in New Haven and Los Angeles, U.S. Customs and Border Protection Service in Los Angeles, the U.S. Air Force’s Office of Special Investigations in Los Angeles and Boston, the Defense Criminal Investigative Service, and the Federal Bureau of Investigation, with the critical assistance of the U.S. Attorney’s Offices for the Central District of California, Southern District of Indiana and the District of New Jersey, as well as HSI, CBP, and FBI in New Jersey, and HSI, FBI and DCIS in Indianapolis.
This case is being prosecuted by Assistant U.S. Attorney Stephen Reynolds of the District of Connecticut, Trial Attorney Brian Fleming of the Justice Department’s Counterespionage Section (CES), and Assistant U.S. Attorney Christopher Grigg of the U.S. Attorney’s Office for the Central District of California.
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(203) 821-3722 [email protected]Former Columbia Resident Pleads Guilty to Receipt and Possession of Child PornographyRead the Press Release
A former Columbia, Illinois, resident pled guilty on January 10, 2014, to a two-count Indictment charging him, in Count 1, with Receipt of Visual Depictions of Minors Engaged in Sexually Explicit Conduct, in violation of Title 18, United States Code, Section 2252(a)(2); and, in Count 2, with Possession of Visual Depictions of Minors Engaged in Sexually Explicit Conduct, in violation of Title 18, United States Code, Section 2252(a)(4)(B), the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Neil E. Purdy, 29, formerly of Columbia, IL, faces a term of imprisonment of not less than five (5) but not more than twenty (20) years, a fine up to $250,000, and a term of supervised release of five (5) years to life on Count 1; and a term of imprisonment of not more than ten (10) years, a fine up to $250,000, and a term of supervised release of five (5) years to life on Count 2. In addition, upon his release from prison, Purdy must register as a sex offender. Sentencing is scheduled for May 16, 2014, in East St. Louis, Illinois. Purdy has been held without bond since his initial appearance on April 26, 2013.
The investigation began on February 7, 2012, when an individual contacted the Columbia Police Department to report that the defendant molested his/her fourteen year old child. He/she also told the Columbia police that he/she saw the defendant “google” the phrase, “where can I find really young porn.” He/she said that, when he/she asked the defendant “how long have you had this little problem,” Purdy responded “about three years.”
On February 16, 2012, Purdy, a member of the Navy Reserve with Top Secret clearance, admitted to Columbia Police Officers that he molested the fourteen year old. When questioned about searching for or possessing child pornography, Purdy admitted that he possessed videos and images of minors engaged in sexually explicit conduct on his laptop computer. Purdy subsequently led the officers to his apartment and allowed them to seize the laptop computer. A forensic review of Purdy’s laptop computer revealed twenty (20) videos and seven (7) images of minors engaged in sexually explicit behavior.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the Columbia, Illinois, Police Department and the Federal Bureau of Investigation’s Springfield Child Exploitation Task Force (SCETF). The case is assigned to Assistant United States Attorney Angela Scott.
Former Candidate for DeKalb County Superior Court SentencedRead the Press Release
ATLANTA - Michael Rothenberg has been sentenced on a charge of wire fraud for defrauding investors and using their money to fund his political campaign for a seat on the DeKalb County Superior Court.
“This defendant committed fraud at the very time that he was asking the voters of DeKalb County to trust him,” said United States Attorney Sally Quillian Yates. “Now he will spend time in federal prison.”
Ricky Maxwell, Acting Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s sentencing of Mr. Rothenberg will not only hold him accountable for his criminal conduct but will provide him with time to contemplate those actions and the harm that he caused others and, ultimately, to himself as well.”
According to United States Attorney Yates, the charges and other information presented in court: Michael Rothenberg, of DeKalb County, Ga., deceitfully persuaded the owners of WinterHawk Energy and Development Corporation (WinterHawk) into investing a total of $1.35 million. Rothenberg represented that the invested money would be placed in a trust account, controlled by him, which would be used to fund the trading of notes by large financial institutions. These notes, according to Rothenberg, would be split into “tranches,” and a ten percent profit would be earned each time a note or “tranch” was traded. Rothenberg told the investors that the investment involved no risk.
In fact, no investment existed and Rothenberg used the money paid by WinterHawk to fund his political campaign for a seat on the DeKalb County Superior Court as well as to pay personal expenses. He ultimately was unsuccessful in his bid for a judgeship. During the scheme, Rothenberg placated the investors’ concerns and lulled them into believing that the investment opportunity was real by emailing them fabricated bank statements, which made it appear as if the money they had invested remained in his trust account and that Rothenberg himself was wealthy. From time to time Rothenberg returned some of the money to the investors in response to their demands, and claimed falsely that he was making up for the shortfall by personally investing his own money. But Rothenberg did not invest his own money, and in fact spent the remaining proceeds – approximately $800,000 – without the investors’ knowledge or consent.
Rothenberg, 36, was sentenced today by United States District Judge Steve C. Jones to three years, five months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $800,000. Rothenberg was convicted on these charges on September 11, 2013, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Steven D. Grimberg prosecuted the case. The DeKalb County District Attorney’s Office provided valuable assistance.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former Bank Executive Admits Receiving Kickbacks from Oxford Collection AgencyRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MICHAEL GESIMONDO, 57, of Farmingdale, N.Y., waived his right to indictment and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to receiving kickbacks while he was an executive at Washington Mutual Bank.
According to court documents and statements made in court, Oxford Collection Agency was a private financial services company that engaged in accounts receivables management, primarily debt collecting, with offices in New York, Pennsylvania and Florida. Between 2007 and 2011, Oxford Collection Agency executives engaged in a multi-year scheme to defraud its lender, investors and clients. The investigation also revealed that Oxford Collection Agency was actively involved in bribing bank officials.
GESIMONDO was employed as Collection Manager of Business Banking at Washington Mutual Bank, and was in charge of outsourcing collection accounts to collection agencies. Washington Mutual Bank contracted with the Oxford Collection Agency to collect debts owed to it by consumers. Between May 2008 and May 2009, GESIMONDO received kickbacks from Oxford Collection Agency as a reward for providing Oxford Collection Agency with the bank’s debt collection business, often providing GESIMONDO with a percentage of the collected debt amount.
GESIMONDO pleaded guilty to one count of conspiracy to accept money as a reward in connection with a business transaction of a bank. Judge Underhill scheduled sentencing for April 4, 2014, at which time GESIMONDO faces a maximum term of imprisonment of five years.
Seven other individuals have been convicted as a result of this investigation and prosecution of criminal activity arising from Oxford Collection Agency and the debt collection industry.
This ongoing investigation is being conducted by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and the Connecticut Securities, Commodities, and Investor Fraud Task Force. The case is being prosecuted by Assistant U.S. Attorney Liam Brennan and Special U.S. Attorney John McReynolds.
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(203) 821-3722 [email protected]Former Ashburn Jeweler Sentenced for Running $20 Million Mortgage Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – Robert Mikail, 41, formerly of Ashburn, Va., was sentenced today to 52 months in prison, followed by three years of supervised release, for his role in fraudulent mortgage loan transactions involving approximately 36 properties in northern Virginia and nearly $20 million in fraudulently obtained loans. Mikail also was ordered to pay approximately $6 million in restitution to lenders and to forfeit to the government $882,387 in proceeds of his crimes.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge James C. Cacheris.
According to court records, Mikail conspired with others, including loan officers Bing-Sing “Cindy” Wang and Ging-Hwang “Felicia” Tsoa, to defraud mortgage lenders as part of a scheme to profit from fraudulently obtained mortgage loans and the purchase of residential real estate in northern Virginia. As part of the scheme, Mikail recruited five individuals, known as “straw buyers,” to serve as nominal purchasers in these transactions, and he worked with loan officers to falsify critical information on the straw buyers’ loan applications in order to get the loans approved and the transactions closed. In particular, virtually all of the fraudulent loan applications falsely identified Mikail’s Ashburn, Va., jewelry store, Opus Jewelry, as the borrower’s employer, which Mikail would then falsely verify to the lenders as part of the loan approval process.
In total, Mikail engineered the purchase of approximately 36 homes in and around Ashburn, Va., from 2005 through 2007, and obtained approximately $20 million in loan proceeds on the basis of fraudulent loan applications. While Mikail personally profited by approximately $882,387 from these transactions, all of the loans ultimately defaulted, resulting in approximately $6 million in losses to the lenders.
Co-conspirator Tsoa, formerly a loan officer at First Empire Mortgage in Fairfax, Va., and Lifetime Financial Services in Herndon, Va., was convicted of conspiracy and bank fraud charges on November 15, 2013, following a jury trial, and will be sentenced on February 7, 2014. Co-conspirator Wang, the owner of Lifetime Financial Services, pleaded guilty to related charges on November 20, 2012, and was sentenced to 24 months in prison on February 26, 2013.This case was investigated by the FBI’s Washington Field Office. Assistant United States Attorneys Paul J. Nathanson and Jasmine H. Yoon prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Florida Residents Sentenced for Defrauding and Threatening Spanish-Speaking ConsumersRead the Press Release
Two individuals charged with running a telemarketing operation that defrauded Spanish-speaking consumers were sentenced yesterday in Miami federal district court, the Department of Justice and U.S. Postal Inspection Service (USPIS) announced. Daniel Carrasco, 54, was sentenced to serve 121 months in federal prison, and Federico Martin Gioja, 45, was sentenced to serve 108 months in federal prison, for their operation of telemarketing companies in Argentina whose representatives consistently lied to consumers about products they would receive and threatened consumers with consequences of failure to pay for their shipments. In addition to their sentences of imprisonment, Carrasco and Gioja were ordered to forfeit a variety of assets, including approximately 20 pieces of real property, an automobile, motorcycles, a boat, a jet ski and firearms.
“Fraud is unacceptable,” said U.S. Attorney for the Southern District of Florida Wifredo A. Ferrer. “Fraud by threat and intimidation is particularly troublesome because it targets the perceived, but oftentimes real, vulnerabilities of those preyed upon. In this case, the defendants targeted Spanish-speaking consumers and falsely threatened them with arrest, deportation or fines when the consumers refused delivery for products they had not ordered. Such tactics are intolerable. My office is committed and stands united with the department’s Civil Division, Consumer Protection Branch to stem such fraud.”
“The Department of Justice is committed to protecting all consumers from fraud, regardless of the language they speak,” said Assistant Attorney General for the Civil Division Stuart F. Delery. “We will be particularly vigilant towards schemes that target specific populations, and we will track down fraudulent actors whether they commit their offenses from the United States or abroad, and whether they commit them in English or another language.”
Carrasco’s and Gioja’s telemarketers promoted products such as vitamins, lotions and English-language training products. They also promised buyers would receive valuable gifts such as expensive watches and perfumes, gift cards and medical assistance and insurance. However, the companies frequently did not deliver products ordered by consumers. Since the companies did not have many of the products they promised to send to consumers, they sent other products instead. Then, after consumers refused delivery of the companies’ shipments, the Argentinian phone room telemarketers called and falsely threatened consumers with arrest, deportation or fines on their gas and electric bills.
As part of their guilty pleas, Carrasco and Gioja admitted they routinely changed the names of the companies under which they did business to evade consumer complaints, regulators and law enforcement. A variety of state agencies contacted the businesses regarding their illicit practices. Those working with Carrasco and Gioja referred to these companies tainted by complaints as “burnt.” Rather than changing the “burnt” companies’ practices, Carrasco and Gioja incorporated new companies and started the same illegal practices again.
Also in pleading guilty, Carrasco and Gioja admitted their telemarketers falsely represented to consumers that they were affiliated with Spanish-language television networks. This fraud first came to light when the Spanish language network Univision informed the USPIS they believed a company was involved in a fraud scheme in which it misrepresented its affiliation with the network. Subsequently, USPIS investigated the case, submitted the affidavit in support of the criminal complaint and arrested the defendants.
“Sadly, these types of crimes create a distrust in people and leave victims feeling ashamed for falling for a scam,” said Inspector In Charge Ronald Verrochio for the U.S. Postal Inspection Service, Miami Division. “The U.S. Postal Inspection Service remains committed to pursuing crimes that are furthered via the U.S. mail and building trust with consumers. Postal Inspectors will investigate and bring the criminals to justice.”
Carrasco and Gioja were originally charged by criminal complaint and arrested on June 26, 2013. Both defendants were later indicted on July 25, 2013, and pleaded guilty on September 24, 2013. Carrasco and Gioja, and a third individual, Romino Tasso, also were named in a civil suit filed by the Justice Department. In the civil case, the Justice Department requested and obtained from the court a preliminary injunction barring further lies to consumers and freezing the assets of Carrasco, Gioja, Tasso and companies under their control.
Assistant Attorney General Delery commended the Postal Inspection Service for their investigative efforts and thanked the U.S. Attorney’s Office for the Southern District of Florida for their contributions to the civil case. The criminal case was prosecuted by Assistant Director Richard Goldberg with the Department of Justice’s Civil Division, Consumer Protection Branch and Assistant U.S. Attorney Timothy Abraham of the Southern District of Florida.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Fifth Former Georgia Prison Officer Pleads Guilty in Connection with the Assault of an Inmate and the Cover-Up That FollowedRead the Press Release
Today, the Department of Justice and the U.S. Attorney for the Middle District of Georgia announced that Kerry Bolden, a former employee of the Correctional Emergency Response Team (CERT) at Macon State Prison (MSP) in Oglethorpe, Ga., pleaded guilty to civil rights and conspiracy charges. Bolden is the fifth former MSP officer to enter a guilty plea in connection with the ongoing federal investigation into a series of staff assaults of MSP inmates.
According to court documents filed in connection with his guilty plea, Bolden admitted that he and other CERT members escorted inmates to the gym, where CERT members would beat the inmates in retaliation for the inmates’ prior assault of a MSP officer. Bolden recognized that the inmates had been injured by CERT’s unjustified use of force, and he also knew, based on past experience, that CERT members would submit false reports to cover up their abuse of inmates. Bolden admitted that he personally submitted a false report, which omitted any reference to the unjustified force used on, or injuries inflicted upon, an inmate, who ultimately had to be transported by ambulance to a nearby hospital. MSP supervisors told Bolden to stick to his false report when interviewed by investigators regarding the assault of the inmate.
“ The majority of corrections officers serve their communities with honor and integrity,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “When officers abuse those entrusted to their care and then use their official position to cover it up, we will continue to investigate, prosecute, and hold them accountable.”
Bolden, who is 47, and from Vienna, Ga., faces a statutory maximum sentence of 15 years in prison.
“Today’s guilty plea is another example of the zero tolerance the Department of Justice has for correctional officers who use their position to try to cover up official misconduct,” said U.S. Attorney Michael J. Moore for the Middle District of Georgia.
This case is being investigated by the FBI, and is being prosecuted by Trial Attorneys Forrest Christian and Tona Boyd of the Civil Rights Division’s Criminal Section, with the assistance of the U.S. Attorney’s Office for the Middle District of Georgia and the support of the Georgia Bureau of Investigation.
Federal and State Authorities Arrest 28 Individuals Yesterday in Connection with Permian Basin Cocaine and Heroin Distribution OperationsRead the Press Release
Authorities arrested 28 individuals yesterday on federal and state drug charges announced United States Attorney Robert Pitman, Midland County District Attorney Teresa J. Clingman, Drug Enforcement Administration Special Agent in Charge Joseph A. Arabit, El Paso Division, and Midland Police Chief Price Robinson.
15 of those arrested yesterday, including 46–year-old Jesus Enrique Gabaldon-Villa, 64-year-old Jesus Manuel Anchondo of Odessa, 50-year-old Samuel Ortiz of Midland, and 30–year-old Jesse “Chuy” Martinez of Midland, are charged in four federal grand jury indictments returned last month and unsealed today in Midland.
Three of the federal indictments (Gabaldon-Villa, et al.; Anchondo, et al.; and, Ortiz, et al.) focus on a heroin trafficking conspiracy operating in the Permian Basin area. The indictments charge ringleader Jesus Gabaldon-Villa, Jesus Anchondo, Samuel Ortiz and 11 others with conspiracy to possess with intent to distribute heroin. Authorities allege that from May to December of last year, the defendants were responsible for transporting multiple ounce quantities of “high quality” heroin from the Sierra Blanca area then selling it in Midland and Odessa. One defendant, 59-year-old Rogelio Villa, Sr., remains a fugitive. Upon conviction, the defendants charged in these three indictments face sentences of up to 20 years in federal prison or between five and 40 years in federal prison depending on the amount of heroin involved.
The other indictment (Martinez, et al.) focuses on cocaine trafficking in the Midland area. In this indictment, ringleader Jesse “Chuy” Martinez, along with 30–year-old Julio Rodriguez, and 34-year-old Alexander “Hondo” Castillo, all of Midland, are charged with one count of conspiracy to distribute cocaine. Authorities allege that from April to December of last year, Martinez, Rodriguez and Castillo were responsible for the distribution of user quantities of cocaine totaling approximately five kilograms throughout the Midland area. Upon conviction, each faces between five and 40 years in federal prison.
Thirteen (13) who were arrested yesterday face state drug charges. Those charges are being pursued by the Midland County District Attorney’s Office.
“Through our partnerships with federal, state, and local law enforcement agencies, we are targeting local trafficking networks responsible for the illegal distribution of heroin, cocaine, methamphetamine and other dangerous drugs. This investigation serves as a compelling example of our joint success and demonstrates the value of multi-agency collaboration. The resulting indictments, arrests and seizures will have a positive impact in the community, where the distribution and abuse of illegal drugs can have devastating health and societal effects. We will continue to work together to pursue drug trafficking organizations at every level in an effort to make our cities and neighborhoods safer,” stated DEA Special Agent in Charge Joseph A. Arabit.
These charges and arrests resulted from investigations conducted by the Drug Enforcement Administration and the Midland Police Department together with the Federal Bureau of Investigation, Homeland Security Investigations, U.S. Marshals Service and the Ector County Sheriff’s Office. The Texas Department of Public Safety, Odessa Police Department, Midland County Sheriff’s Office and the U.S. Probation Office assisted in making yesterday’s arrests.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Eastern District of New York U.S. Attorney’s Office Joins in Collections of over $2.2 Billion in Civil and Criminal Actions and Asset Forfeiture in Fiscal Year 2013Read the Press Release
U.S. Attorney Loretta E. Lynch announced today that the Eastern District of New York, working collaboratively with other offices as well as on its own, collected over $904 million in criminal and civil actions in Fiscal Year 2013. Of this total amount, $725,564,627.70 resulted from cases handled in conjunction with other U.S. Attorney’s Offices and components of the Department of Justice. Collections from criminal and civil actions handled solely by the Eastern District of New York totaled $178,848,788.63.
In addition, working with partner agencies and divisions, the Eastern District forfeited another $1,319,038,046 in assets tainted by crime. Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and the Treasury Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes. The combined joint collections and asset forfeiture recoveries for the Eastern District total of over $2.2 billion exceeds the appropriated $1.86 billion operating budget for all U.S. Attorneys’ Offices nationwide.
Attorney General Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions in that same period.
“The Department’s enforcement actions help not only to ensure justice is served, but also deliver a valuable return to the taxpayer,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the Department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“Working with our colleagues across the nation as well as on our own, the Eastern District of New York stands firm in its resolve to protect the public and recover funds for the federal treasury and for victims of crime,” stated U.S. Attorney Lynch. “Collections and asset forfeiture are important tools in our arsenal as we seek to ensure that crime does not pay. We are honored to be part of this web of protection for the American people.”
FY 2013 EDNY COLLECTION HIGHLIGHTS
Health Care Fraud
This past year, working with colleagues in the District of Massachusetts and the Western District of Washington, the Eastern District of New York collected $748 million in a settlement with Amgen Inc. (Amgen). The Amgen settlement resolved criminal and civil liability arising from Amgen’s sale and promotion of Aranesp, a drug that treats anemia, as well as other drugs manufactured by Amgen. The settlement represents the single largest criminal and civil fraud settlement involving a biotechnology company in U.S. history. In its guilty plea, Amgen admitted that it illegally sold the drug with the intention that it be used at “off-label” doses that the FDA had specifically considered and rejected, and for an “off-label” treatment that the FDA had never approved and was later deemed to be extremely harmful to patients, all to increase profits. Amgen pled guilty to misdemeanor misbranding charges, paid a fine of $136 million, and forfeited $14 million. The civil settlement agreement encompassed allegations that Amgen: (1) promoted Aranesp and two other drugs that it manufactured, Enbrel and Neulasta, for “off-label” uses and doses that were not approved by the FDA and not properly reimbursable by federal insurance programs; (2) offered illegal kickbacks to a wide range of entities in an effort to influence health care providers to select its products for use, regardless of whether they were reimbursable by federal health care programs or were medically necessary; and (3) engaged in false price reporting practices involving several of its drugs. As part of the global settlement, Amgen also entered into a Corporate Integrity Agreement with HHS-OIG that will govern its conduct and ensure careful oversight of its branding and marketing practices.
Prescription Drug Initiative
In addition, as part of its Prescription Drug Initiative, the Eastern District worked with colleagues in the Southern District of Florida, the District of Colorado, and the Eastern District of Michigan in resolving an action for civil penalties in the amount of $80 million against Walgreen Pharmacies for its repeated violations of the Controlled Substances Act. The Eastern District action focused on Walgreens stores on Long Island that repeatedly filled bogus prescriptions for highly addictive painkillers that they knew or should have known had no legitimate medical purpose. The Eastern District’s Prescription Drug Initiative seeks to stem the tide of prescription drug and painkiller abuse through both civil and criminal enforcement as well as community education. In another Prescription Drug Initiative matter, medical residents at New York Methodist Hospital in Brooklyn were found to have issued close to 200 prescriptions for the stimulant Adderall without a legitimate medical purpose. Indeed, the Adderall was alternately consumed by the residents or sold in hand to hand transactions or on Craigslist. The hospital entered into a Consent Judgment that not only provided for a civil penalty for violating the CSA but also established a formal program to ensure future compliance.
False Claims Act
Working with the Department’s Civil Frauds Branch, the Eastern District recovered $5.25 million from RxAmerica pursuant to the settlement of one of the first federal False Claims Act cases to involve a Medicare Part D plan, which resolved claims that RxAmerica made false submissions to the Centers for Medicare and Medicaid Services in order to receive higher reimbursements for certain medications. In addition, the Eastern District recovered $8 million from CA, an Islandia, New York-based software and information technology company for knowingly double-billing federal agencies in connection with software maintenance contracts administered by the General Services Administration and Department of Defense.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
In the Eastern District as well as nationwide, the largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights, or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration, and Department of Education.
District Man Sentenced to 10 Years in Prison for 2013 Stabbing in Southeast Washington-Victim, A Transgender Woman, Had More Than 40 Stab Wounds-Read the Press Release
WASHINGTON – Michael McBride, 23, of Washington, D.C., was sentenced today to 10 years in prison for stabbing a transgender woman last year in Southeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
McBride pled guilty in October 2013, in the Superior Court of the District of Columbia, to a charge of aggravated assault while armed. He was sentenced by the Honorable Patricia A. Broderick. Judge Broderick also ordered McBride to serve five years of supervised release after completion of his prison term, and to receive mental health services.
According to the government’s evidence, McBride and the victim had been exchanging text messages and phone calls prior to the attack. On June 21, 2013, at about 1 a.m., they agreed to meet outside an abandoned home in the 3000 block of Stanton Road SE. McBride went to the location with the intention of having sex with the victim. He and the victim went inside the abandoned home and then got into a verbal dispute about sex. A struggle ensued, and, without warning, McBride produced a knife and stabbed the victim multiple times. The knife blade broke as McBride was stabbing the victim in the collarbone.
The victim collapsed on a couch in the living room area. McBride fled. The victim suffered more than 40 stab wounds to the body, and was transported to a hospital. She suffered significant blood loss and would have died but for the timely provision of medical care. McBride, who was on supervised release in another case, was arrested a short time after the attack and he has remained in custody ever since.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case for the Metropolitan Police Department (MPD). He also praised the work of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialist Lynette Briggs, Victim/Witness Advocate James Brennan, and Witness Security Specialist M. Laverne Forrest. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys Kendra Briggs and Tejpal S. Chawla, who prosecuted the case.
14-007District Man Pleads Guilty to Murder Charge in 2011 Slaying of Taxicab Driver in Northeast Washington-Shooting Took Place During A Robbery, Following Argument over 75 Cents-Read the Press Release
WASHINGTON – Rashad Slye, 23, of Washington, D.C., pled guilty today to a charge of second-degree murder while armed for the 2011 killing of a taxicab driver during a robbery in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Slye entered the plea in the Superior Court of the District of Columbia. The plea agreement, which is contingent upon the Court’s approval, calls for a sentence of 17 years in prison. The Honorable Jennifer Anderson scheduled sentencing for April 4, 2014.
According to the government’s evidence, on Saturday, Oct. 22, 2011, at about 2:50 a.m., Slye and a friend called for a taxicab at the Morgan Boulevard Metro station in Landover, Md. Within a few minutes, the victim, Domingo Ezirike, 40, arrived in his taxicab and picked up Slye and his friend. Slye asked to be taken to Ponds Street NE in the District of Columbia. Mr. Ezirike asked Slye and his friend for $20, and the friend gave Mr. Ezirike $20. Within minutes, Slye began arguing with Mr. Ezirike about the fare and about the lack of heat or music in the cab.
Mr. Ezirike drove the cab to the 4300 block of Ponds Street NE and he asked for an additional $7.75 in fare. Slye’s friend gave him $5 and Slye gave him $2. However, Mr. Ezirike insisted on the additional 75 cents, and he and Slye argued over the money.
After Slye’s friend got out of the cab and left the immediate area, Slye continued to argue over the fare. He pulled out a 9mm handgun and demanded the $20 back. He also ordered Mr. Ezirike out of the cab and onto the ground. At that point, he stood over Mr. Ezirike and began to rifle through his pockets, asking where the money could be found.
Slye struck Mr. Ezirike in the head with the gun and continued searching him, insisting he was hiding the money. Mr. Ezirike offered to remove his pants and while still on the ground, did so. Slye then entered the vehicle, still holding Mr. Ezirike on the ground at gunpoint, as he searched the front passenger compartment. He then ordered Mr. Ezirike back into the taxicab and insisted that he search for money. Then, as Mr. Ezirike sat in the driver's seat, Slye fired a single shot that struck him in the arm, causing him to immediately fall back into the seat and remain still. Slye immediately fled the scene towards the 1500 block of Anacostia Avenue NE.
Mr. Ezirike placed the vehicle in reverse and drove it backwards and onto grass on Anacostia Avenue. He died on the scene, as the bullet traveled from his arm and into his chest cavity.
In announcing the plea, U.S. Attorney Machen praised the work of the detectives, officers and crime scene technicians who investigated the case from the Metropolitan Police Department. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Meridith McGarrity, Mia Beamon, Phaylyn Hunt, Paralegal Supervisor Sharon Newman, Victim Advocate Tamara Ince, Information Technology Specialist Leif Hickling, and Assistant U.S. Attorneys David J. Gorman and Kacie M. Weston.
14-009Dighton Tax Preparer Sentenced for Filing False Tax ReturnsRead the Press Release
BOSTON – A Dighton man was sentenced for falsifying his own personal income tax returns.
David J. Woods, 65, was sentenced by U.S. District Court Judge Patti B. Saris to six months in prison, six months home confinement and a $3,000 fine. In June 2013, Woods pleaded guilty to filing false individual tax returns which resulted in the underreporting of over $500,000 in income from his tax preparation service.
United States Attorney Carmen M. Ortiz and John G. Collins, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was prosecuted by Lori J. Holik of Ortiz’s Economic Crimes Unit.
Defendants Plead Guilty to Hurricane Ike FraudRead the Press Release
ATLANTA – John A. Wheeler and Melody Lockett Carter pleaded guilty in federal court to fraudulently obtaining FEMA assistance funds intended for the victims of Hurricane Ike.
“These defendants stole over $50,000 in disaster relief funds that were intended to benefit those who truly suffered from the devastation of Hurricane Ike in 2008,” said United States Attorney Sally Quillian Yates. “Since the creation of the Disaster Fraud Task Force in 2005, we have remained committed to prosecuting those criminals who would take advantage of natural disasters to enrich themselves.”
James E. Ward, Special Agent in Charge for the U. S. Department of Homeland Security, Office of the Inspector General, said, “The Department of Homeland Security, Office of Inspector General is dedicated to investigating fraud related to DHS programs, specifically FEMA Emergency Disaster Relief Funds. The charges against these defendants serves as an example of our commitment to investigating FEMA fraud allegations and pursuing federal prosecution to the fullest extent of the law. DHS-OIG will continue to place a high priority on investigating these types of crimes which negatively impact FEMA’s Disaster Relief Funds that are intended for law abiding citizens.”
According to United States Attorney Yates, the charges and other information presented in court: Wheeler, 57, and Carter, 49, both of Wilmerding, Pa., and Angela Pratt Avery, 44, of Lawrenceville, Ga., worked together to file three fraudulent FEMA claims for Hurricane Ike disaster relief funds. The defendants filed the claims in September 2008 and January 2009, falsely claiming that Carter and Avery lived at a West Ventura Drive address in Galveston, Texas, at the time of Hurricane Ike and that their personal property had been damaged by the storm. In fact, all three defendants lived in Norcross, Ga., at the time of Hurricane Ike and were not victims of the storm. The defendants received over $50,000 in disaster assistance from FEMA based on their fraud.
On September 13, 2008, Hurricane Ike made landfall near Galveston, causing widespread damage along the Texas, Louisiana, Mississippi, and Florida coastlines and the surrounding areas. After Hurricane Ike struck the Texas coastline, FEMA provided financial disaster assistance to displaced individuals who resided in various counties in Texas. Those individuals could make an application for disaster assistance funds by filing a claim with FEMA that included the Texas address where they were living at the time of the hurricane.
Wheeler and Carter each pleaded guilty to one count of theft of government money. Sentencing for Wheeler and Carter will be scheduled at a later date.
This case is being investigated by Special Agents of the U.S. Department of Homeland Security, Office of Inspector General.
Assistant United States Attorney Stephen H. McClain is prosecuting the case.
In September 2005, the Attorney General established the Disaster Fraud Task Force to deter, detect, and prosecute disaster-related federal crimes such as charity fraud, identity theft, procurement fraud, and insurance fraud related to the Hurricane Katrina disaster. As multiple disasters occurred in subsequent years, the Task Force expanded its mandate to all types of disaster fraud. The Task Force, chaired by Acting Assistant Attorney General Mythili Raman of the Criminal Division, includes the FBI, the Postal Inspection Service, the U.S. Secret Service, the Federal Trade Commission, the Securities and Exchange Commission, federal Inspectors General, and various representatives of state and local law enforcement.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
David Rohm Sentenced to 87 Months for Receipt of Child PornographyRead the Press Release
Memphis, TN – David Arthur Rohm, 65, of Jackson, TN, was sentenced yesterday to 87 months in federal prison following his guilty plea to one count of receipt of child pornography, announced U.S. Attorney Edward L. Stanton III.
According to facts alleged in the indictment and revealed during the sentencing hearing, Rohm knowingly received DVDs which contained visual depictions of minor boys engaged in sexually explicit conduct.
In addition to the prison sentence, United States District Judge S. Thomas Anderson ordered Rohm to serve 10 years of supervised release and to forfeit all computers and media containing alleged child pornography. There is no parole in the federal prison system.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Debra Ireland represented the government.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative of 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, PSC 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 PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”Dallas County Woman Sentenced to A Five Year Probationary Term and Ordered to Repay the Social Security Administration $19,356.00Read the Press Release
The United States Attorney Kenyen Brown announces that Mildred Calhoun, a Selma, Alabama resident, was sentenced today to five (5) years’ probation after a guilty plea to theft of government funds.
Calhoun signed an application with the Social Security Administration for Title II Disability Insurance benefits. As part of the application, Calhoun signed, agreeing that she would notify the SSA if “I got to work whether as an employee or a self‑employed person". Calhoun was approved for disability benefits effective 04/1993.
On August 15, 2012, Social Security Administration/Office of Inspector General special agents confirmed that Mildred Calhoun worked as a care taker. Among other responsibilities, Calhoun was responsible for feeding, bathing, turning over and changing her charge. Calhoun started working as a caregiver in December of 2009, and continued to do so until March 17, 2012. Calhoun was paid $432.00 a week and failed to report this income to the Social Security Administration.
During the week of April 1, 2013, SSA/OIG special agents received an overpayment worksheet from the SSA Office of Central Operations. The total amount overpaid to Calhoun due to her work activity is $19,356.00. Calhoun was charged with theft of government funds and acquiesced to the crime by pleading guilty on September 24, 2013.
The Social Security Administration’s Office of Inspector General investigated the case and presented it to the U.S. Attorney=s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Convicted Felon Sentenced to Maximum Term of Imprisonment on Firearms ChargesRead the Press Release
In San Antonio this morning, convicted felon Eloy Olivares Garza was sentenced to 15 years in federal prison followed by five years of supervised release for conspiring to smuggle approximately 220 assault-type firearms into Mexico announced U.S. Attorney Robert Pitman, HSI Special Agent in Charge Janice Ayala and ATF Special Agent in Charge Robert Elder.
On September 12, 2013, Garza pleaded guilty to one count of conspiracy to smuggle goods from the U.S. and one count of being a convicted felon in possession of a firearm. According to court records, from August 2006 to February 2007, Garza conspired with others to illegally purchase the firearms from licensed dealers in and around San Antonio and Austin, then smuggle them into Mexico without receiving the appropriate licenses from the United States Department of State. Garza’s criminal history includes a 1990 conviction for conspiracy to possess with intent to deliver marijuana.
This case resulted from an investigation by Homeland Security Investigations together with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorneys Mark Roomberg prosecuted this case on behalf of the Government.
Collin County Felon Sentenced for Federal Firearms ViolationRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 42-year-old Farmersville, Texas man has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Craig Marcus Cooper pleaded guilty on Sep. 11, 2013, to being a felon in possession of a firearm and was sentenced to 18 months in federal prison today by U.S. District Judge Michael H. Schneider.
According to information presented in court, on Jan. 13, 2012, Cooper and a co-defendant, Colten David Barrow, traveled together to the Dukes Truck Stop on Highway 64 in Van Zandt County, Texas to meet an individual interested in purchasing a fully-automatic machinegun and silencer for $10,000. The prospective buyer was an undercover federal agent and Cooper and Barrow were arrested at the scene. Further investigation revealed Cooper was a convicted felon having been previously been found guilty of criminal mischief in Collin County, Texas in 2011. The investigation also revealed the machinegun had been reported stolen about 10 years ago. Cooper was indicted on Mar. 27, 2013 and charged with federal firearms violations.
This case is being prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney Jim Noble.City of North Miami Resident Convicted in Stolen Tax Refund SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Tom Weschler, Chief, City of Naples Police Department, announce that Marie Jean Baptiste, 22, of North Miami, was convicted by a federal jury of three counts of stealing tax refunds, in violation of Title 18, United States Code, Sections 641 and 2. The trial was held before U.S. District Court Judge Robin S. Rosenbaum. Sentencing is scheduled for March 21, 2014 at 9:30 a.m. Baptiste faces a maximum sentence of ten years in prison for each count.
According to the indictment and evidence presented at trial, Baptiste received four tax refunds that she knew were stolen, and converted them for her own use and gain. Baptiste participated in a scheme in which fraudulent tax returns were filed directing the tax refunds to be directly deposited into her bank account. After the tax refunds were deposited into her bank account, Baptiste would withdraw the tax proceeds from the bank and various ATMs for her own use and gain.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI and the City of Naples Police Department. This case was prosecuted by Assistant U.S. Attorney Gera R. Peoples.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Centreville Woman Sentenced for Health Care FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Valerie W. Johnson, 56, of Centreville, Illinois, was sentenced in United States District Court in East St. Louis, Illinois on one count of Health Care Fraud.
Johnson was sentenced to five (5) years’ probation, a special assessment of $100, and ordered to pay restitution in the amount of $7,842.46. Johnson previously pled guilty to submitting false and fraudulent bills in relation to her receipt of personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General and the Illinois State Police’s Medicaid Fraud Control Bureau. The case is being prosecuted by Assistant United States Attorneys Ranley R. Killian.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General or call 1-800-447-8477.
Canadian Woman Sentenced for Traveling to Virginia for the Purpose of Sexually Abusing Two ChildrenRead the Press Release
ALEXANDRIA, Va. – Theresa Louisa Goddard, 45, of Vancouver, British Columbia, was sentenced today to 10 years in prison, followed by 20 years of supervised release, for attempting to coerce and entice two children into engaging in illegal sexual activity.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Scot R. Rittenberg, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), Washington, made the announcement after sentencing by United States District Judge Leonie M. Brinkema.
Theresa Goddard pleaded guilty on October 16, 2013. According to court documents, Goddard posted a message on a website where individuals can exchange messages, pictures, and videos related to taboo subjects. In her message, she stated that she was interested in starting an “incest family.” In June 2013, a special agent with HSI, acting in an undercover capacity, responded to the message, and he began communicating with Goddard using email and live video chats on Skype.
As part of his undercover identity, the HSI agent told Goddard that he had two minor children, a girl and a boy. The children were fictitious. During the conversations, Goddard made plans to travel from Vancouver to Virginia in order to sexually abuse and rape both children. She further stated that she wanted to quit her job in Vancouver and move in with the undercover agent in order to continue sexually abusing his children on a regular basis.
On June 26, 2013, Goddard traveled from Vancouver, British Columbia, to Dulles International Airport in Virginia for the purpose of meeting the special agent and sexually abusing his children. She was arrested shortly after landing in Virginia.
This case was investigated by ICE Homeland Security Investigations, with assistance from the Northern Virginia/Washington, DC Internet Crimes Against Children Task Force. Assistant United States Attorney Matt J. Gardner prosecuted the case on behalf of the United States.
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 better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This investigation was part of Operation Predator, a nationwide HSI initiative to protect children from sexual predators, including those who travel overseas for sex with minors, Internet child pornographers, criminal alien sex offenders and child sex traffickers. HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-347-2423 or by completing its online tip form. Both are staffed around the clock by investigators. Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline at 1-800-843-5678.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
California Man, Aung Gaw, Indicted for Crimes Involving the Sexual Victimization of ChildrenRead the Press Release
AUNG GAW, a/k/a Michael Gaw, age 25, of Fremont, California, was charged today in a two count indictment with Conspiracy to Produce Child Pornography and Receipt of Materials Involving the Sexual Exploitation of Minors, announced U. S. Attorney Kenneth Allen Polite, Jr.
Conspiracy to Produce Child Pornography carries a mandatory minimum of fifteen (15) years and a maximum sentence of thirty (30) years imprisonment and Receipt of Child Pornography carries a mandatory minimum sentence of five (5) years and a maximum sentence of twenty (20) years. In addition, GAW is subject to a term of supervised release after imprisonment for a minimum of five (5) years up to life. If convicted, GAW will have to register as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.U.S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt. GAW is being held in federal custody pending trial which is scheduled for March 10, 2014, before Chief United States District Court Judge Sarah S. Vance.
This case is being investigated by the U.S. Department of Homeland Security-Homeland Security Investigations and the U.S. Postal Inspection Service. The prosecution of this case is being handled by Fraud Section Chief and Project Safe Childhood Coordinator, Assistant U. S. Attorney Brian M. Klebba.
(Download Indictment )
Baltimore Felon Exiled to 10 Years in Prison for Illegal Possession of an Unregistered GunRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Thomas Scott, age 24, of Baltimore, Maryland, today to 10 years in prison, followed by three years of supervised release, for unlawful possession of an unregistered firearm.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to Scott=s plea agreement, on February 12, 2013, employees of the Baltimore Police Department Citywatch unit were monitoring “blue light” surveillance cameras in the Central District of Baltimore, when they noticed a Ford Expedition making multiple turns and slowly driving up and down the same streets of downtown for at least 30 minutes. Due to a number of recent robberies following the closing of restaurants and nightclubs, uniformed officers in the area were advised to monitor the vehicle for a possible robbery attempt. Officers found the vehicle cruising slowly in the area and attempted to stop it. The vehicle pulled to the curb and as the officers approached the Expedition, the driver quickly pulled away from the curb. The officers pursued the Expedition, which crashed into a tree several blocks away.
As officers approached the vehicle, they saw the Scott getting out of the passenger side of the car in bare feet. Upon seeing the officers, Scott began running down the street. The driver also got out of the car and ran away. Both Scott and the driver were arrested approximately two blocks away. From the vehicle, officers recovered: a machete and the driver’s license of the driver, on the front driver’s side floor; a loaded 12-gauge shotgun with a sawed off barrel, sitting next to a pair of shoes in the front passenger floor area; one air rifle in the back storage area of the vehicle; and a black and white bandana on the floor of the front seat passenger side of the vehicle.Officers recovered two shotgun shells when they searched Scott that matched the shell found in the shotgun. The sawed-off shotgun was not registered to Scott in the National Firearms Registration and Transfer Record.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Debra L. Dwyer, who prosecuted the case.
Another Former Alorton Official Sentenced to Federal PrisonRead the Press Release
A former police officer in Alorton and Fairmont City who also served as a trustee of the Commonfields of Cahokia Public Water District and as the Alorton Director of Public Safety, was sentenced in US District Court on January 9, 2014, to two years in federal prison for wire fraud and tax evasion, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Harry A. Halter, Jr., also known as “Dink,” 53, of Cahokia Ill., pled guilty on September 25, 2013.
Halter was convicted for financial crimes related to a towing business Halter owns. Documents filed in US District Court established that Halter owned and operated Town & Country Towing, located in Alorton, Illinois. In 2009, Halter received a grant of $24,990 in tax increment financing (TIF) towards the construction of a new fence to surround the perimeter of his tow yard. However, Halter’s wire fraud conviction came after he misapplied $19,057.62 of those funds to pay personal expenses – such as credit cards and expenses at Kinkaid Village Marina for personal recreational boating expenses. Prosecutors presented evidence that Halter paid a kickback to former Mayor Randy McCallum after he received that TIF grant.
Halter was convicted of tax evasion for using his business to pay personal expenses, conducting personal and business transactions through the extensive use of cash, paying employees in cash and not reporting their wages to the IRS, by not keeping accurate records of business transactions, and other acts of concealing his true income from the IRS for the purpose of limiting his tax liability. This conduct resulted in Halter avoiding paying at least $128,719 in federal income taxes that he otherwise would have been required to pay. Halter agreed to make full restitution to the IRS and the village of Alorton as a condition of his guilty plea.
The St. Clair County States Attorney and the United States Attorney both investigated and prosecuted Halter for separate crimes. Halter was convicted of official misconduct in state court on April 4, 2013, after compelling a female motorist to perform oral sex to avoid arrest in 2008. Halter made that traffic stop in the early morning hours outside of his jurisdiction after he had been drinking.
Halter’s sentence is the latest in a string of federal prosecutions of Alorton officials. In February, 2011, Police Chief Robert Cummings resigned after pleading guilty to federal tax crimes occurring during his tenure with the Alorton Police Department. Former Mayor Randy McCallum, pled guilty to a four-count Information on February 24, 2012, for Attempted Possession with the Intent to Deliver a Controlled Substance (crack cocaine), Theft or Conversion of Government Property, Attempting to Smuggle Contraband into a Correctional Facility that Houses Inmates Pursuant to an Agreement with the Attorney General, and Making False Statements to Federal Law Enforcement Officers. McCallum received a 43 month prison sentence. On April 27, 2012, former Alorton Chief of Police Michael Baxton was sentenced to prison for one year for stealing evidence while he was the Alorton chief and making subsequent false statements to federal investigators. The Alorton Streets Superintendent, Ronnie Cummings, was sentenced to 41 months imprisonment on July 16, 2012, for being a felon in possession of a firearm, which included carrying a weapon in a city-owned vehicle.
US Attorney Stephen R. Wigginton said, “The Public Corruption Task Force will continue to work to drain the swamp and rid Alorton of any public officials who misuse public office for their own purposes.”
The investigation was conducted through the Metro East Public Corruption Task Force by agents from the Internal Revenue Service / Criminal Investigations and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Steven D. Weinhoeft.
Anderson County Man Guilty of Sexually Exploiting ChildRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 46-year-old Grapeland, Texas man has pleaded guilty to child exploitation violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Robbie Newby pleaded guilty to sexual exploitation of a child on Jan. 9, 2014, before U.S. Magistrate Judge John D. Love.According to information presented in court, on March 14, 2012, Newby coerced or persuaded a child under the age of 16 to engage in sexually explicit conduct for the purpose of creating child pornography. A federal grand jury returned an indictment on April 17, 2013, charging Newby with child exploitation violations.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Newby faces a minimum of 15 years and up to 30 years in federal prison. A sentencing date has not been set.
This case is being investigated by the Homeland Security Investigations and the Texas Department of Public Safety – Criminal Investigations Division and prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.Anderson County Man Guilty of Child Pornography ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 49-year-old Palestine, Texas man has pleaded guilty to child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Alvin Westley pleaded guilty to possession of child pornography on Jan. 9, 2014, before U.S. Magistrate Judge John D. Love.According to information presented in court, on Jan. 26, 2011, Westley was found in possession of child pornography. During the investigation, it was revealed that Westley is a registered sex offender having been previously convicted of three counts of indecency with a child. A federal grand jury returned an indictment on Oct. 23, 2013, charging Westley was child pornography violations.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Westley faces a minimum of 10 years and up to 20 years in federal prison. A sentencing date has not been set.
This case is being investigated by the Homeland Security Investigations and the Texas Department of Public Safety – Criminal Investigations division and prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.Alton Woman Sentenced for Health Care FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Roslyn James, 46, of Alton, Illinois, was sentenced in District Court in East St. Louis, IL on one count of Health Care Fraud.
Roslyn James was sentenced to four (4) month’s confinement in the Bureau of Prisons, four (4) month’s home confinement, three (3) years’ supervised release following her confinement, a special assessment of $100, and ordered to pay restitution in the amount of $50,568.12. Johnson previously pled guilty to submitting false and fraudulent bills in regard to the providing of personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home. James admitted that she falsely billed the program for services that were supposed to have been provided to her son; however, the person who she claimed as having provided the services lived in the State of California.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General and the Illinois State Police’s Medicaid Fraud Control Bureau. The case was prosecuted by Assistant United States Attorney Ranley R. Killian.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General or call 1-800-447-8477.
Allan D. Cooper Sentenced to 27 Months for Wire FraudRead the Press Release
Memphis, TN – Allan D. Cooper, 66, of Memphis, TN, was sentenced today to 27 months imprisonment by United States District Judge John T. Fowlkes, Jr., announced U.S. Attorney Edward L. Stanton III. Cooper entered a guilty plea in September to a criminal information charging him with one count of wire fraud.
According to the one-count criminal information and statements made in court, between approximately October 2011 and May 2013, Cooper defrauded six individuals of $395,300. According to the information, Cooper made various false and fraudulent statements, representations and promises to induce the victims to give him monies as either a “loan” or an “investment.”
Cooper told some of his victims about an investment opportunity with an old friend of his named “Charlie” and that if the victims would give Cooper funds to invest with Charlie they would receive a substantial return. In these instances Cooper frequently gave the victims a post-dated check payable in an amount that represented the principal and the return on the investment. When the victim discovered that the check was worthless, Cooper made other false representations and promises to repay.
Cooper told other victims that he was the owner of Cooper Chemical Company and that if they would loan him funds he would pay them back with substantial interest. In fact, “Cooper Chemical Company” was inactive and not conducting any business. Cooper also falsely represented that if a victim would loan him funds, they would be repaid with interest through disbursements from a trust in which defendant Cooper was a named beneficiary.
Cooper was also ordered to pay restitution to the victims in the amount of $395,300. There is no parole in the federal prison system. This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Carroll L. Andre III represented the government.14 Charged with Violating Federal Gun and Drug LawsRead the Press Release
PITTSBURGH – Fourteen people from Pennsylvania, Ohio and New York have been indicted by a federal grand jury in Pittsburgh for violating federal narcotics trafficking and firearm laws, United States Attorney David J. Hickton announced today.
The eight-count superseding indictment, returned on Jan. 8, charges Neil Thomas, 29, Marcus Battles, 27, Luis Colon, 30, Gabriel Garcia, 25, Christopher Greene, 30, Stephanie Goehring, 27, Ryan Hutchinson, 28, William Krszal, 23, Phillip Lacher, 26, Colin Mitchell, 28, Dustin Petry, 26, Kailen Young, 28, David Wallace, 32, and Marc Perkins, 33, as the defendants.
According to the superseding indictment, between January 2013 and October 2013, the defendants (except for Krszal, Lacher, Wallace, and Perkins) conspired to distribute and possess with intent to distribute 100 grams or more of heroin; Garcia, Petry, and Thomas possessed firearms in furtherance of a drug trafficking crime and distributed heroin or possessed heroin with intent to distribute it; and Thomas, Greene, Krszal, Lacher, Wallace, and Perkins conspired to distribute and possess with intent to distribute 500 grams or more of 3,4-methylenedioxymethamphetamine (also known as MDMA or “molly”) and methamphetamine. The indictment seeks forfeiture of the proceeds of the crimes as well as property acquired with the proceeds and property used to commit the crimes.
The law provides for maximum total sentences ranging from up to 20 years to up to life in prison as well as mandatory minimum sentences starting at five years in prison. Fines ranging from $1,000,000 to up to $10,000,000 may also be imposed. Under the Federal Sentencing Guidelines, the actual sentences imposed would be based upon the seriousness of the offenses and the prior criminal histories, if any, of the defendants.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Federal Bureau of Investigation and the Pennsylvania Attorney General’s Office led the multi-agency investigation of this case that also included the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Moon Township Police Department, the North Fayette Police Department, the Pittsburgh Bureau of Police, the Allegheny County Sheriff’s Office, the Pennsylvania State Police, the McKees Rocks Police Department, the Cranberry Township Police Department, the McKeesport Police Department, and the Wilkinsburg Police Department.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
12th Former Officer at Roxbury Correctional Institution Pleads Guilty and Admits Assault of an InmateRead the Press Release
Michael Morgan, formerly an officer at Roxbury Correctional Institution (RCI) in Hagerstown, Md., pleaded guilty today to assaulting an inmate on March 9, 2008, announced the Justice Department and the U.S. Attorney’s Office for the District of Maryland. Morgan is the 12th former RCI officer to enter a plea in connection with the federal investigation into a series of assaults that the inmate, identified by the initials K.D., suffered at RCI on March 8-9, 2008. According to court documents filed in connection with his guilty plea, Morgan admitted that he assaulted K.D. by kicking the inmate in the area of his groin. Morgan acknowledged that he kicked K.D. in order to punish him for his prior misconduct. Morgan also admitted that he lied under oath in 2008, when he falsely denied both assaulting K.D. and having any knowledge of an assault of the inmate.
“Mr. Morgan has admitted that, as a correctional officer, he – and others – violated a person’s constitutional rights and then lied to cover up their on-duty misconduct,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Justice Department will continue to vigorously prosecute officers who use their official position to commit and to cover up violations of federal criminal law.”
Morgan faces a statutory maximum penalty of 10 years in prison. Sentencing is set for April 23, 2014, before U.S. District Judge James K. Bredar.
In related cases before Judge Bredar, former RCI Correctional Officers Ryan Lohr, Dustin Norris, Philip Mayo, Jeremy McCusker, Walter Steele, Lanny Harris, Keith Morris, Tyson Hinckle and Reginald Martin, and former RCI Lieutenants Robert Harvey and Edwin Stigile each has entered a guilty plea. Two former RCI officers previously entered guilty pleas in state court.
Three current or former RCI officers still face federal charges in connection with this incident. These officers are innocent until proven guilty in a court of law.
The investigation by the Frederick Resident Agency of the FBI is ongoing. The case is being prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorneys Sanjay Patel and Christine Siscaretti of the Civil Rights Division of the Department of Justice, with the assistance of Michael Cunningham of the U.S. Attorney’s Office for the District of Maryland.
9 January 2014
“El Canonazo” Owner Guilty of Illegally Smuggling Firearm Magazines to MexicoRead the Press Release
LAREDO, Texas – Arturo Gonzalez, 42, businessman and owner of two J.C. Twiss “El Canonazo” sporting apparel and firearm accessories stores in Laredo, has been convicted of attempting to export more than 600 firearm magazines to Mexico, announced United States Attorney Kenneth Magidson today. The verdict was announced late today after a three-day trial and approximately nine hours of deliberation.
According to testimony from Leticia Moncada Infante, Gonzalez personally delivered boxes containing AK-47 assault rifle magazines to her at the north Laredo store on Shiloh Drive on Nov. 28, 2012, after the store’s closing hours. She told jurors she had received a telephone call in advance from a Mexican contact to proceed to the store, receive the boxes and was to deliver them to a Mexican semi-tractor driver whom she would meet at a prearranged time and location who would smuggle the boxes to Mexico. Additional testimony from other witnesses and court records confirmed infante waited in her car as Gonzalez loaded several boxes from his store into the trunk of her car. Those boxes were delivered moments later to a truck driver who was arrested trying to drive into Mexico with them. Infante has already pleaded guilty and is awaiting sentencing.A Homeland Security Investigations (HSI) special agent posed as another courier sent by a Mexican buyer. Gonzalez directed the agent to receive boxes containing another 288 AK-47 assault rifle magazines in an alley behind the north Laredo Store on Nov. 30, 2012. After noting the number of people watching, Gonzalez directed the agent to proceed to the back alley of his store. The agent testified he never received any paperwork nor was asked for identification from Gonzalez. A short time later, the agent delivered the boxes to another Mexican truck driver who was arrested attempting to smuggle the boxes into Mexico.
Jorge Sosa, a former employee of Gonzalez who has also pleaded guilty, testified that Gonzalez introduced him to at least two persons from whom he had received money and directed him to accept cash from them on his behalf. He also testified Gonzalez directed him to deliver the last load of 360 AK-47 assault rifles to another courier at the employee’s personal storage unit. The employee and the third courier testified that both met at the employee’s storage unit on Dec. 7, 2012, where the courier picked up five boxes containing a total of 360 magazines. The courier was apprehended shortly after the event.
Additional evidence was also presented that Gonzalez had told Guzman he feared law enforcement was closing in on him and that it would be better if Guzman did not pick up the last set of magazines from Gonzalez or at the store. Gonzalez apparently wanted to get the magazines out of his store and have them moved to a storage unit owned by Sosa.
Gonzalez testified and admitted that he had in fact delivered the boxes to Infante and the undercover agent on Nov. 28 and 30, but that he was not doing anything illegal. During his testimony, Gonzalez admitted he did not check for identification prior to delivering the assault rifle magazines. In his defense, Gonzalez stated that he had received an unusually large order from a Laredo hunter for 1,500 rifle magazines. Although never having met the gentleman before, Gonzalez quoted a price of $30,000 for the order, which the man immediately paid for in cash that he happened to be carrying with him. Gonzalez could not remember the man’s name, did not record the man’s phone number or contact information, did not photograph his identification information and did not provide any receipt or document to the buyer.
Gonzalez claimed he had no intention of providing any AK-47 rifle magazines to Guzman. He further claimed Sosa moved the magazines to the storage unit and delivered them to Guzman without Gonzalez’s knowledge or consent.
The jury disagreed and convicted him on all three counts as charged.
Gonzalez was permitted to remain on bond pending sentencing, which is set for April 14, 2014.
All AK-47 assault rifle magazines referenced in this case were intercepted and recovered in the United States. No magazines traveled to Mexico.
The investigation was conducted by HSI with the assistance of Customs and Border Protection, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Laredo Police Department. Assistant United States Attorney Jose Homero Ramirez is prosecuting the case.
Wyoming U.S. Attorney’s Office Collects $3,712,887 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
Cheyenne, WY – U.S. Attorney Christopher A. “Kip” Crofts announced today that the District of Wyoming collected $3,712,887 in criminal and civil actions in Fiscal Year 2013. Of this amount, $657,774 was collected in criminal actions and $3,055,113 was collected in civil actions.
Additionally, the District of Wyoming worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $2,337,572 in cases pursued jointly with these offices. Of this amount $1,987 was collected in criminal actions and $2,335,585 was collected in civil actions.
Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending September 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
Wyoming U.S. Attorney Crofts noted, “The U.S. Attorney’s Office in the District of Wyoming collected more than its budgeted expenditures in FY13, so I think the taxpayers are getting their money’s worth from our office and from our dedicated employees.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education
Western Washington U.S. Attorney’s Office Work Leads to Collection of More than $800 Million for Victims and TaxpayersRead the Press Release
U.S. Attorney Jenny A. Durkan announced today that the U.S. Attorney’s Office collected more than $22 million in criminal and civil actions it handled by itself, including $12.3 million from the sale of forfeited assets. An additional $817 million was collected in cases the U.S. Attorney’s Office handled with other Department of Justice divisions and other U.S. Attorney’s Offices.
“We will hold wrongdoers accountable. We use every tool available to strip criminals of the proceeds of their crimes, collect significant fines from wrongdoers, protect taxpayers, and support victims,” said U.S. Attorney Jenny A. Durkan. “Civil litigation and criminal prosecutions help keep communities safe. Fulfilling our mission of protecting the public includes returning money to taxpayers and victims, and we are able to do that in a way that is fiscally responsible and adds value to the federal treasury.”
Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending September 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The Department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the Department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
In the past fiscal year, the U.S. Attorney’s Office in the Western District of Washington, in partnership with other DOJ components, recovered significant settlements in civil litigation, including more than $184 million in a fair housing case with Wells Fargo Bank, and more than $623 million as its share of a False Claims Act case with Amgen for the marketing and promotion of a misbranded drug.
On the criminal side, the U.S. Attorney’s Office collected $326,630 in connection with U.S. v. Craig James, a case in which James conspired to steal and damage thirty-one old growth western cedar trees on the Olympic National Forest. Some of the trees were nearly 600 years old. The office also seized movie deal proceeds of $216,558 for victims of Colton Harris-Moore, the serial aircraft thief who went on an interstate crime spree before being captured in the Bahamas. The office collected $564,533 in connection with U.S. v. Michelle Bielaski, a case where Bielaski failed to pay the IRS employment taxes that her company withheld from employee paychecks over a ten year period.
In asset forfeiture, the U.S. Attorney’s Office in the Western District of Washington collected $12.3 million in proceeds from the sale of forfeited assets in FY 2013. Forfeited assets are deposited into the DOJ Assets Forfeiture Fund or the Treasury Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes. Of those forfeited assets, more than $1 million went to compensate crime victims. The largest single forfeiture in the Western District of Washington in FY 2013 was $1.2 million from the sale of the former Sugar’s club in Shoreline as part of U.S. v. Colacurcio.
The U.S. Attorneys’ Offices, along with DOJ’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to DOJ’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.