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8 January 2014
Project Safe Childhood New Boston Man Sentenced on Child Pornography OffenseRead the Press Release
CONCORD, NEW HAMPSHIRE: Dana Moody, 57, of New Boston, was sentenced in United States District Court for the District of New Hampshire to 72 months in prison after pleading guilty to possession and distribution of child pornography, announced United States Attorney John P. Kacavas.
The investigation into Moody began in November of 2011 when the FBI was notified by the New Haven, Connecticut, Internet Crimes Against Children Task Force that an undercover officer had intercepted images of child pornography being transmitted by a computer user located in New Boston, New Hampshire.
Upon receiving the information, the FBI conducted a further investigation and secured a search warrant for Moody’s residence in New Boston. Computer evidence seized from Moody’s home was examined and found to contain several thousand images depicting the sexual assault of young children.
This case was prosecuted under Project Safe Childhood, a nationwide initiative by the U.S. 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 (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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was prosecuted by Assistant United States Attorney Helen White Fitzgibbon.
Posey County Man Sentenced for Illegal Possession of Numerous FirearmsRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today that Jackie J. Whittley, Jr., age 32, of Cynthiana, was sentenced to 180 months in prison today by Chief U.S. District Judge Richard L. Young after being convicted of illegally possessing a sawed-off shotgun, along with numerous other firearms. In sentencing the defendant, Judge Young determined Whittley to be an armed career criminal. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, along with the Vanderburgh County and Posey County Sheriffs.
“The facts of this case show that the defendant thought he was above the law, and that recklessness put this community in danger,” Hogsett said. “This case is an example of what our collaborative Violent Crime Initiative aims to accomplish in Hoosier communities. This effort isn’t about making new laws -- we are focused on enforcing those laws already on the books.”
Whittley plead guilty to the charges on November 18, 2013. At the time of the guilty plea, Whittley admitted that he possessed 14 firearms and a sawed off shotgun at his home in Cynthiana. Officers had gone to Whittley’s home after clerks at a nearby gas station alerted them that Whittley had a gun in his possession and was making threatening statements. Whittley was apprehended after leading officers on a high speed motorcycle chase. Due to a criminal record that included three prior violent burglary convictions, Whittley received an enhanced penalty as an armed career criminal.
These indictments come as part of the U.S. Attorney's Violent Crime Initiative (VCI), and are the result of collaborative investigative efforts by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Indiana State Police.
Launched in March 2011, the VCI has produced a dramatic increase in the number of gun-related charges brought federally. In the year preceding the initiative, there were just 14 defendants charged with federal gun crimes by the U.S. Attorney's Office. In the nearly two years since, more than 200 defendants have been charged.
According to Assistant U.S. Attorney, Lauren M. Wheatley, who prosecuted the case for the government, Judge Young also imposed 3 years of supervised release. During the period of supervised release, Whittley must not possess firearm or destructive devices, nor consume alcohol or controlled substances.
Pill Mill Doctor Sentenced for Oxycodone ConspiracyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, and Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, announce that Dr. Scott Becker, 54, of Pembroke Pines, Florida, was sentenced yesterday to 70 months in prison, to be followed by three years of supervised release. Dr. Becker previously pled guilty to conspiring to distribute and dispense large amounts of oxycodone without a legitimate medical purpose and outside the usual course of professional practice. Dr. Becker also pled guilty to money laundering.
According to court documents, Becker agreed to forfeit $470,400 in money and property representing the illegal narcotics proceeds he earned as a result of his involvement as a physician at All Pain Management in Dania Beach. Between February 16 and September 17, 2010, Becker was employed as a clinic doctor at All Pain Management which, at the time, was owned by co-conspirators Vincent Colangelo and several other unnamed individuals. Colangelo pled guilty to narcotics, money laundering and federal income tax offenses on April 2, 2012, arising from his ownership of six pill mill clinics and a pharmacy in Broward and Miami-Dade Counties. According to a review of medical records, while at All Pain Management, Becker prescribed 932,259 oxycodone, 30 milligram pills during the course of 4,821 patient visits and more than 98% of Becker’s patients received prescriptions for oxycodone. Becker also laundered approximately $24,142 in illegal narcotics proceeds.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
Mr. Ferrer thanked IRS-CI, DEA, and the Broward Sheriff’s Office, as well as the many other state and local agencies for their investigative work. This case is being prosecuted by Assistant U.S. Attorneys Scott Behnke and Roger Powell and Tax Division Trial Attorney Greg Tortella.
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.
Perry County Woman Sentenced to 78 Months ImprisonmentRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces today that Janice Ford Green of Marion, Alabama was sentenced today by Chief United States District Judge William Steele to 78 months imprisonment for possession of a firearm by a felon. The judge ordered that Green serve a three-year term of supervised release upon completing her term of imprisonment and that she pay a $100 mandatory special assessment. Green was indicted for knowingly possessing a 7mm magnum rifle as a convicted felon and firing it at law enforcement officials on or about April 17, 2013 in Marion, Alabama in the Southern District of Alabama, Northern Division.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives in cooperation with the Alabama Attorney General’s Office and the Alabama Bureau of Investigation. The case was prosecuted by Special Assistant United States Sinan Kalayoglu, Assistant United States Attorney Greg Bordenkircher, and Assistant United States Attorney Maria Murphy for the United States Attorney’s Office in Mobile, Alabama.
Omaha Man Sentenced for Possession with Intent to Distribute Crack CocaineRead the Press Release
On January 8, 2014, Davaughn Richard Lavell Perkins, age 24 of Omaha, was sentenced to five years in federal prison for possession with intent to distribute 28 grams or more of cocaine base, also known as crack cocaine. Following the prison sentence, Perkins will serve five years on supervised release. He was also ordered to forfeit $472 in cash to the United States.
On July 23, 2013, officers of the Lincoln/Lancaster County Narcotics Task Force executed a search warrant at a Lincoln apartment. Upon entry into the living room, officers found Davaughn Perkins on the floor and another individual on the couch. Small amounts of crack were found in the living room. During a search of Perkins' person, officers found a total of $472 in cash.
Perkins was arrested and taken to the Lancaster County Jail where he was searched as part of the booking process. During that search, a Lancaster County Corrections Officer saw Perkins attempt to conceal something in his hand. The officer obtained the item from Perkins, and it was found to be a baggie containing cocaine base, also known as crack cocaine, weighing 36.6 grams.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Oil Company Settles Allegations That It Knowingly Avoided Paying Federal Royalties for Several YearsRead the Press Release
DENVER – Big Sandy Oil Company, solely owned by James E. Cochran, has agreed to pay the United States $73,500, plus interest, to settle allegations that it violated the False Claims Act by knowingly failing to pay oil revenues Big Sandy owed to the United States.
The Department of the Interior’s Office of Natural Resources Revenue, which is primarily based in Lakewood, Colorado, is responsible for the collection, disbursement, and verification of oil and gas royalty payments to the government from companies that extract federal mineral resources across the country and in the Gulf of Mexico.
According to the United States, Big Sandy owes the United States a one-eighth share in revenues on oil it extracted from two parcels of land in the Allegheny National Forest in Warren County, Pennsylvania. After Big Sandy bought the parcels in 1990, the government informed Big Sandy multiple times about the government’s interest in the revenues from oil produced on this land. From 1990 through 2005, however, Big Sandy only sporadically paid royalties due and owing to the United States. Beginning in 2005 and continuing through 2013, Big Sandy failed to remit to the government any royalties at all from the subject parcels. In 2009, the government contacted Big Sandy about its failure to pay, and Big Sandy responded with assurances that it would pay the royalties it owed. Despite these assurances, Big Sandy avoided its obligation to pay for another four years.
In conjunction with efforts by the Office of Natural Resources Revenue, the settlement was the result of investigative efforts by the Department of the Interior’s Office of Inspector General and the Bureau of Land Management’s Special Investigations Group.
Special Assistant U.S. Attorney Zeyen Wu and Assistant U.S. Attorney Amanda Rocque handled this matter on behalf of the government.
The settlement agreement is neither an admission of liability by Big Sandy Oil Company, nor a concession by the United States that its claims are not well founded.
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North Park Gang Members Indicted in Racketeering ConspiracyRead the Press Release
SAN DIEGO – Twenty-four alleged North Park gang members and associates are charged in an indictment unsealed today as members of a racketeering conspiracy that involved cross-country sex trafficking of underage girls and women plus murder, kidnapping, robbery and drug-related crimes.
Early this morning detectives and agents from the San Diego Police Department and the FBI, with assistance from other agencies, made 17 arrests in San Diego, Arizona and New Jersey and served 11 search warrants in San Diego and Arizona. Four defendants were already in custody on other charges. The local defendants are scheduled to make their first court appearances tomorrow at 1:30 p.m. before U.S. Magistrate Judge Barbara Major. Three defendants are fugitives.
According to the federal grand jury indictment, the primary business of the gang was sex trafficking in 46 cities across 23 states. The organization was known as “BMS,” which is a combination of “Black MOB” and “Skanless” gangs, and these members are also allegedly aligned with other streets gangs, including Neighborhood Crips, Lincoln Park and West Coast Crips, among others.
The BMS gang was formed as a result of cooperation between these gangs and the members took on different responsibilities within the criminal enterprise, according to the indictment. Some managed the prostitutes and transported them all over the country; some forcefully coerced these women into prostitution and maintained their obedience and loyalty through acts of violence; some handled the money; some placed advertisements to generate business or booked motel rooms in which acts of prostitution took place; and others distributed drugs.
The defendants are charged with racketeering conspiracy - the statute traditionally used for organized-crime syndicates and mobsters. But as criminal street gangs such as these join forces and become more sophisticated and prolific in their illicit business pursuits, this statute is an effective tool to address all aspects of the criminal conduct.
This is the second time the U.S. Attorney’s office in this district has used the racketeering statute to charge dozens of gang members with operating a criminal enterprise that included drugs, human trafficking and violence. In the first case, 39 Oceanside gang members and associates were charged with racketeering, and to date, 34 have pleaded guilty.
“Together with our law enforcement partners, we have rescued scores of sex trafficking victims from the grips of gangsters and we have restored a higher level of safety to the gang’s operational base – the community of North Park - and beyond,” said U.S. Attorney Laura Duffy.
“The kind of sex trafficking described in this indictment is nothing less than modern-day slavery,” Duffy said. “Unfortunately, more gangs are expanding from traditional pursuits like drug dealing into this lucrative business. These gangsters are preying upon our youth, and we are using every law enforcement resource to keep our children and our communities safe from these predators.”
“This RICO investigation was truly a joint effort between the San Diego Police Department, the U.S. Attorney’s Office and the FBI,” said San Diego Police Chief William Lansdowne. “I am extremely proud of the detectives and the investigative personnel who worked tirelessly on this case which has increased the safety of our community. Thousands of hours were spent on intelligence gathering, undercover operations, and interviews of victims and witnesses. Due to the investigative efforts of all involved, girls and women were rescued from a life they were being forced into. In addition, numerous gang members and associates of this criminal organization have been indicted and/or arrested.”
FBI Special Agent in Charge Daphne Hearn, commented, "Today's arrests are the result of a long term multi-agency investigation conducted under the FBI's Innocence Lost National Initiative (ILNI). One of the goals of the FBI's ILNI is to disrupt and dismantle criminal enterprises responsible for the victimization of children through prostitution. Through the efforts of the ILNI, more than 2,300 children that were forced into prostitution have been located and recovered, and more than 1,200 subjects have been convicted. Today's arrest in San Diego and federal racketeering charges filed in this case exemplifies the FBI's continued effort to work with our law enforcement partners to disrupt and dismantle criminal enterprises that seek to profit from the sexual exploitation of our nation's children.
“The collaboration between federal and local law enforcement in San Diego is unparalleled, and this case is another fine example of utilizing our strategic law enforcement partnerships to combat an 3 increasingly dangerous fusion of violent gangs and organized crime, said Derek Benner, special agent in charge for ICE’s Homeland Security Investigations in San Diego. “ With this group of violent street gang members, drug dealers, sex traffickers, and other criminals off the streets, we have delivered on our commitment to public safety so that the law abiding people living and working in our neighborhoods are safe.”
The indictment alleges that these defendants recruited girls and women from El Cajon Boulevard and elsewhere to work as prostitutes. And they also used social media like Instagram, Facebook, YouTube and Twitter to lure unwitting young girls into the lifestyle with rap videos and promises of a glamorous life. Many of these videos are posted on YouTube.
The gang members allegedly forced many of the trafficking victims into prostitution through threats or actual violence. According to the indictment, they branded their prostitutes as if they were property - with tattoos of gang monikers, bar codes, or a pimp’s name. Members of BMS sold, traded and gifted these girls and women among each other.
All of the 60 female sex trafficking victims, including 11 minors, were offered resources to help them start a new life.
U.S. Attorney Duffy urged parents and school administrators to be vigilant in tracking the online activities and academic performance of girls who could fall prey to gang members who would manipulate them.
According to court documents, some defendants attended parties known as “Players’ Balls,” which are invitation-only gatherings for pimps held in San Diego and around the country glorifying gang life, prostitution and pimping. One of the defendants in this indictment, Robert Banks, received an award at a national "Players’ Ball" function.
After a “Players Ball” last month in Las Vegas, a photo was posted on Facebook of Banks posing with a “Pimp Cup” and a “Pimp stick” and a woman on each arm – including a known prostitute. According to court documents, it is common for pimps to have chalices and scepters, known as Pimp Cups and sticks, made to symbolize their status as a pimp. These items are typically worth thousands of dollars, as they are commonly made of gold, decorated with jewels, and designed with the pimp’s moniker, gang name or gang number.
Pimps often have dental “grills” made that can be permanently affixed or removable. Typically, they are made of gold and can cost thousands of dollars.
According to the indictment, the government is seeking forfeiture of these items and others purchased with illicit proceeds generated from the enterprise’s alleged criminal activities.
During today’s searches, law enforcement officials seized two firearms; 20 to 30 marijuana plants; six luxury cars; flat screen televisions; several thousand dollars in cash; numerous pimp paraphernalia such as cups, sticks and hats; more than 50 pairs of Air Jordan shoes.
DEFENDANTS Criminal Case No. 13CR4510-JAH Aaron Dwayne Pittman
Alvin Bernard Mitchell
Robert Banks III
Hakeem Tayari Dunn
Marcus Anthony Stevenson
Labarron Carnell Coker
Malik Hassan Kelly
Harold Randolph Martin
Anthony Dwayne Edmond
Tony Brown
Jakari Deandrez Blake
Dante Levell Grant*
Ronald Ledon Jackson*
Jonathan Devon Price
Bradley West Reynolds
Akili Lynn Cobb
Antwon Ruason Hollingsworth*
Christopher Michael Wall
Everett Burdette Williams
Marcus John Anthony Griffin
Edward Reynolds
Nicole Lee Rice
Yasenia Armentaro
Nadine Davis *Fugitive
**The following defendants face the possibility of life in prison due to special allegations in the
indictment, which increase the maximum penalty: Tony Brown, Robert Banks, Hakeen Dun, Everette
Williams, Dante Grant, Chris Wall, Aaron Pittman, Nicole Rice, Malik Kelly, Harold Martin, Ronal
Jackson, Marcus Stevenson, Alvin Mitchell, Labarren Coker. The special allegations are that these
defendants committed conduct that formed the basis of (1) sex trafficking of a minor, (2) sex trafficking
by force, or (3) transportation of minors for prostitution. SUMMARY OF CHARGESTitle 18, United States Code, Section 1962(d)—Conspiracy to Conduct Enterprise Affairs Through a
INVESTIGATING AGENCIES
Pattern of Racketeering Activity; Title 18, United States Code, Section 1963—Criminal Forfeiture.
Maximum Penalties: 20 years’ incarceration, a fine of $250,000, three years of supervised release.San Diego Police Department
Federal Bureau of Investigation
Homeland Security Investigations*An indictment itself is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the government meets its burden in court of proving guilt beyond a reasonable doubt.
Morrisville Man Sentenced to 25 Plus Years for Child PornographyRead the Press Release
NEW BERN – United States Attorney Thomas G. Walker announced that yesterday in federal court, United States District Judge Louise W. Flanagan sentenced NATHANIEL BELTRAN GRINSTEAD , 38, to 306 months imprisonment, followed by a lifetime of supervised release.
A Federal Grand Jury returned a Criminal Indictment on May 1, 2012. On February 12, 2013, GRINSTEAD pled guilty to one count of manufacturing/producing child pornography.
According to the investigation, on October 24, 2011, the Morrisville, North Carolina, Police Department received information from school officials regarding several incidents of sexual abuse. Evidence from a cell phone and home computer seized at GRINSTEAD’s residence revealed images of the sexual abuse of minors.
Investigation of this case was conducted by the Morrisville Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Ethan Ontjes prosecuted the case for the United States.This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Moorhead Man Sentenced for Producing Child PornographyRead the Press Release
FARGO – U.S. Attorney Timothy Q. Purdon announced that on Jan. 8, 2014, Dustin Howard Muscha, 33, of Moorhead, Minn., was sentenced before U.S. District Judge Ralph R. Erickson on two counts of sexual exploitation of minors and two counts of possession of materials involving the sexual exploitation of minors.
Judge Erickson sentenced Muscha to 30 years’ imprisonment to be followed by a lifetime of supervised release. Muscha was ordered to register as a sex offender and to pay a $400 special assessment to the crime victim’s fund. Restitution will be determined at a later date.
United States Attorney Timothy Purdon said, “This conviction and stiff sentence are a great example of the outstanding work done every day by our Project Safe Childhood team here in North Dakota. Law enforcement officers from Fargo Police Department, North Dakota Bureau of Criminal Investigation and federal Homeland Security Investigations and our Project Safe Childhood prosecutor worked cooperatively to identify the victims in this case with in a matter of hours of the discovery of the illegal images. The resulting sentence is one that should serve as a stark warning to those who would exploit children in our community.”
"This conviction serves as a stern warning about the consequences awaiting child predators who target the most vulnerable members of our communities," said Acting Special Agent in Charge of HSI St. Paul, William Lowder. "Protecting our children from predators remains a priority for HSI and we will continue to work closely with our law enforcement partners to identify, arrest and bring these criminals to justice."
This case came to the attention of law enforcement after Muscha lost his cellular telephone while attending a concert at the Fargo Dome on Sept. 29, 2012. The phone was found by a private citizen who turned it over to the Sprint retailer located in Fargo. In an attempt to identify the owner of the cellular telephone, the manager at Sprint powered the phone on and subsequently discovered child pornography. The cellular telephone was immediately turned over to law enforcement who learned that the number assigned to the cellular phone was registered to Dustin Muscha in Moorhead, Minn.
That same day, a North Dakota Bureau of Criminal Investigation (ND BCI) forensic examiner began conducting a forensic examination of the cellular telephone which revealed hundreds of child pornographic files, including four videos produced by Muscha which depict three different prepubescent girls engaged in sexually explicit conduct.
The investigation revealed that Muscha created the four videos between April 2011 and September 2012. Specifically, two of four videos were produced in Minnesota and the remaining two videos were produced in North Dakota. Special agents with Homeland Security Investigations (HSI) and the ND BCI conducted further investigation and successfully identified and located the three girls in the videos.
The following day, a search warrant was executed at Muscha’s residence where copies of the child pornographic files were located as well as additional files of child pornography.
Muscha was immediately arrested and a second search warrant was executed at a storage shed that Muscha maintained in North Dakota. Additional video files were seized from this storage shed, including a fifth video that Muscha produced in 2002 in Moorhead, Minn., depicting yet another prepubescent child engaged in sexually explicit conduct.This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by Homeland Security Investigations, Fargo Police Department and the North Dakota Bureau of Criminal Investigations.
Assistant U.S. Attorney Jennifer Klemetsrud Puhl prosecuted the case.
Mississippi Woman Pleads Guilty to Laundering Drug MoneyRead the Press Release
JJackson, Miss – Patrina Bester Hayes, 37, of Paulding, Mississippi, joined her co-defendant Lornell Von Moore, 48, also of Paulding, by pleading guilty today to conspiring with Moore to launder his drug money, announced U.S. Attorney Gregory K. Davis and Special Agent in Charge Gabriel Grchan of Internal Revenue Service Criminal Investigation (IRS CI). Moore pleaded guilty to the same offense on December 19, 2013 and is currently serving nine years in federal prison for narcotics distribution.
During his heyday, Moore garnered over 2 million dollars in drug profits in just a two year period from 2008 and 2009. During this time and before, Moore and Hayes operated LVM Trucking out of Louin, Mississippi, and washed millions of dollars of drug profits through the trucking company’s bank accounts as well as their private bank accounts.
As a result of the investigation into the narcotics trafficking of Moore and the money laundering activities of Moore and Hayes, investigators of the Drug Enforcement Administration and the Internal Revenue Service through the office of the United States Attorney for the Southern District of Mississippi seized property involved in the scheme. Property seized included:
2010 Chevrolet Camaro; 2005 Freightliner Century Tractor; 2001 Freightliner Columbia; 2006 Hyundai Trailer; 2008 Blue Chevrolet Corvette; 2009 Yamaha Rhino ATV; 2005 Freightliner Century tractor; 2007 Utility Van; 2009 black Chevrolet Silverado truck C1500; 2010 Gray Lexus; 2003 Freightliner Columbia Tractor; Two residences in Jasper County; and
3 firearms
Moore and Hayes will be sentenced on March 27, 2014 by U.S. District Judge Daniel P. Jordan, III. They each face a maximum penalty of 20 years in prison and a $500,000 fine.
“I commend the hard working agents with IRS Criminal Investigation and DEA who worked tirelessly on the money laundering aspect of this case, as well as the federal, state and local law enforcement agents who worked together to dismantle this drug distribution organization,” said U.S. Attorney Gregory K. Davis.
IRS-CI Special Agent in Charge Gabriel L. Grchan stated: “The guilty plea entered by Patrina Hayes marks the end of the drug trafficking organization headed by Lornell Von Moore. Hayes was the last defendant to plead guilty, and will be sentenced for her role in Moore’s criminal operation. Likewise, the seizure of Moore’s operating assets has further served to completely dismantle a dangerous drug distribution network. IRS Criminal Investigation is committed to continuing its work with the United States Attorney’s Office and our law enforcement partners to put an end to narcotics trafficking in our communities.”
The Internal Revenue Service Criminal Investigation Division and the Drug Enforcement Administration conducted the criminal investigation of the financial affairs leading to the current guilty plea. Officers from the Ridgeland Police Department, Jackson Police Department, Hinds County Sheriff=s Office, Jasper County Sheriff’s Office, Madison County Sheriff’s Office, and the Mississippi Bureau of Narcotics, participated in the investigation of Moore’s drug trafficking organization.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Our nation-wide commitment to reducing gun crime in America.
Middlebury Man Involved in Illegal Campaign Contribution Scheme Is SentencedRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PAUL ROGERS, 41, of Middlebury, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to six months of imprisonment, followed by two years of supervised release, for his role in a scheme to direct illegal contributions into the campaign of a candidate for the U.S. House of Representatives. ROGERS was also ordered to pay a $5,000 fine.
According to court documents and statements made in court, in August 2011, the State of Connecticut applied for a court order enjoining Roll Your Own (“RYO”) smoke shops from continuing to operate without complying with state law governing tobacco manufacturers. RYO smoke shops are retail businesses that sell loose smoking tobacco and cigarette-rolling materials and offer customers the option of paying a “rental” fee to insert the loose tobacco and the rolling materials into a RYO machine, which is capable of rapidly rolling large quantities of cigarettes. Customers did not pay a tax on the RYO cigarettes when rolled by the RYO machines, in contrast to cigarettes purchased over-the-counter.
ROGERS owned a RYO smoke shop with two locations in Waterbury. Fearing that the Connecticut General Assembly would enact legislation harmful to RYO smoke shop owners’ business interests during the 2012 legislative session, ROGERS and others engaged in a scheme to direct conduit campaign contributions into the campaign of Christopher Donovan, a candidate for the U.S. House of Representatives. At the time, Donovan was also the Speaker of the Connecticut House of Representatives. ROGERS and his co-conspirators recruited multiple individuals to serve as conduit contributors to the campaign. These individuals wrote checks to the campaign in their own names, and ROGERS and his co-conspirators reimbursed them with cash, thereby concealing the fact that RYO smoke shop owners were contributing to the campaign.
In November and December 2011, participants in the scheme made four $2,500 conduit contributions to the Chris Donovan for Congress campaign. On approximately January 31, 2012, the campaign submitted to the Federal Election Commission (“FEC”) a report of campaign committee’s receipts and disbursements for the period October 1, 2011 through December 31, 2011. The report falsely stated the source and amount of the four $2,500 contributions that were received and deposited by the campaign committee during that time period.
ROGERS and others subsequently directed an additional $17,500 in conduit contributions to the Donovan for Congress Campaign, as well as a conduit contribution in the amount of $2,500 to a political party.
On January 23, 2013, ROGERS waived his right to indictment and pleaded guilty to one count of devising a scheme to bribe a public official, and one count of conspiring to make false statements to the Federal Election Commission (“FEC”) and to impede the FEC’s enforcement of federal campaign finance laws.
Seven other individuals, including two employees of the Donovan for Congress campaign, have also been convicted of charges stemming from this scheme.
This matter was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorneys Christopher M. Mattei and Eric J. Glover.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Mexican Man Gets Significant Sentence for Cocaine ConspiracyRead the Press Release
HOUSTON – Oscar Nava-Valencia, 42, of Guadalajara, Mexico, has received a 25-year sentence for his role in the smuggling of a 3,100 kilogram load of cocaine from Panama, announced United States Attorney Kenneth Magidson.
Nava-Valencia previously pleaded guilty and was sentenced late yesterday afternoon in federal court in Houston.
U.S. District Judge Ewing Werlein Jr. sentenced Nava-Valencia to a term of 300 months in federal prison and further ordered him to pay a $5,000 fine.
In March 2006, Panamanian authorities seized approximately 2,080 kilograms of cocaine from a warehouse in Panama City, Panama. The seized cocaine was part of a larger load totaling approximately 3,100 kilograms which was to be shipped from Panama to Mexico and eventually destined for the United States. Nava-Valencia, along with other associates, was to take possession of approximately 1,250 kilograms of cocaine once it arrived in Mexico. In January of 2010, Nava-Valencia was apprehended by Mexican authorities and extradited to the United States in January 2011.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges was conducted by the Drug Enforcement Administration. Assistant United States Attorneys James Sturgis prosecuted the case.
Media AdvisoryRead the Press Release
Montgomery, Alabama - U.S. Attorney George L. Beck, Jr., FBI Special Agent in Charge Stephen E. Richardson, Auburn Police Chief Paul Register, Dothan Police Chief Greg Benton, Elmore County Sheriff Bill Franklin, Houston County Sheriff Andy Hughes, Montgomery Police Chief Kevin Murphy, and Montgomery County Sheriff D.T. Marshall, will hold a press conference to announce the formation of the Central Alabama Violent Gang Safe Streets Task Force.
The mission of the new Central Alabama Violent Gang Safe Streets Task Force is to identify and target for prosecution criminal groups that are responsible for drug trafficking, money laundering, alien smuggling, and crimes of violence such as murder and aggravated assault, robbery, and violent street gang activity.
The press conference will be held on Thursday, January 9, 2014 at 2:30 p.m., at the U.S. Attorney’s Office, 131 Clayton Street, Montgomery, Alabama, and the media is invited. A press release will be provided at the conference.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Manhattan U.S. Attorney Simultaneously Files Additional Healthcare Fraud Claims Against Novartis Pharmaceuticals Corp. and Settles Lawsuit Against Bioscrip, Inc., in Connection with A Multimillion-Dollar Kickback Scheme Involving A Prescription DrugRead the Press Release
BioScrip Agrees to Pay $15 Million and Makes Extensive Factual Admissions to Resolve Claims
Preet Bharara, the United States Attorney for the Southern District of New York, and Ronald T. Hosko, the Assistant Director of the Federal Bureau of Investigation, Criminal Investigative Division (“FBI”), announced today that the United States has filed additional civil healthcare fraud claims in Manhattan federal court against NOVARTIS PHARMACEUTICALS CORP. (“NOVARTIS”) and BIOSCRIP, INC. (“BIOSCRIP”). The Government’s Amended Complaint seeks treble damages and civil penalties under the False Claims Act against NOVARTIS and BIOSCRIP for NOVARTIS providing kickbacks, in the form of patient referrals and in the guise of rebates, to BIOSCRIP in exchange for BIOSCRIP recommending refills to Exjade patients. The lawsuit alleges that, as a result of this kickback scheme, Medicare and Medicaid have paid tens of millions of dollars in reimbursements based on false, kickback-tainted claims for Exjade shipped by BIOSCRIP.
Simultaneous with the filing of the Amended Complaint, U.S. District Judge Colleen McMahon approved a settlement to resolve the United States’ claims against BIOSCRIP. Under that settlement, which takes into account BIOSCRIP’s limited financial resources, BIOSCRIP (i) agrees to pay $11,685,705.43 to the United States; (ii) admits numerous facts concerning its relationship with NOVARTIS; and (iii) agrees to cooperate with the United States in the prosecution of the claims against NOVARTIS. BIOSCRIP has also agreed in principle to pay $3.31 million to a group of States to settle the States’ claims based on the same alleged conduct.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Novartis is caught having orchestrated yet another scheme whereby it used the lure of kickbacks to co-opt a healthcare providers’ independence and, in this case, turned pharmacy employees at BioScrip into salespeople for Exjade. By allegedly having BioScrip promote refills under the guise of purported ‘counseling’ and ‘education,’ Novartis caused patients to receive one-sided advice that did not discuss Exjade’s serious, potentially life-threatening, side effects. Further, by hiding this illegal quid pro quo from federal healthcare programs, Novartis caused the public to pay tens of millions of dollars for kickback-tainted drugs.”
FBI Assistant Director Ronald T. Hosko said: “Investigations such as these are a high priority for the FBI and we will aggressively pursue providers that boost their profits at the expense of Medicare and other government programs. Due to the potential impact to the nation’s health care system and to the public from these types of multifaceted schemes, we have created a centralized team to provide nationwide support to our field offices called the Major Provider Response Team. The FBI is committed to working with our partners in these types of investigations and appreciates the public’s involvement in the process.”
According to the allegations contained in the Amended Complaint filed today in Manhattan federal court:
NOVARTIS markets and manufactures Exjade, an iron chelation drug approved for use by patients who have iron overload resulting from blood transfusions. Between February 2007 and May 2012, NOVARTIS orchestrated a scheme whereby it offered kickbacks, in the form of patient referrals and under the guise of rebates, to BIOSCRIP, a specialty pharmacy, in exchange for BIOSCRIP increasing its Exjade refills through biased recommendations to patients.
BIOSCRIP was part of a Novartis-created exclusive distribution network for Exjade, and through this network, Novartis was able to refer Exjade patients to particular pharmacies within the network. In order to obtain greater numbers of patient referrals and rebates, BIOSCRIP, in coordination with NOVARTIS, implemented a program of calling patients to recommend Exjade refills or to get patients who stopped ordering Exjade refills to resume ordering them.
NOVARTIS and BIOSCRIP promoted these calls as part of an effort to offer clinical “counseling” or “education” to Exjade patients. In fact, however, the real purpose behind this call program was to obtain more refill orders so that Novartis could increase its Exjade sales and meet its national Exjade sales target and BIOSCRIP, in turn, could get more patient referrals and higher rebates. Thus, the BIOSCRIP employees making those calls to Exjade patients emphasized the importance of getting refills, but ignored Exjade’s serious, potentially life-threatening side effects, such as kidney failure and gastrointestinal hemorrhage. Indeed, according to a former BIOSCRIP supervisor, the incentives offered by NOVARTIS caused BIOSCRIP to focus exclusively on getting Exjade patients to order refills, rather than caring for these patients. This Exjade scheme violated the federal anti-kickback statute, which prohibits the offer or payment of remuneration to induce the purchase or recommendation of any drug or service covered by Medicare, Medicaid, or another federal healthcare program.
By orchestrating this scheme, NOVARTIS and BIOSCRIP further caused pharmacies to submit tens of thousands of claims to Medicare and Medicaid, resulting in those programs paying out tens of millions of dollars in reimbursements based on false claims tainted by kickbacks.
Further, as part of its settlement with the United States, BIOSCRIP made extensive factual admissions, including, among other things, that:
- BIOSCRIP was one of three specialty pharmacies permitted to dispense Exjade as part of “EPASS,” NOVARTIS’s distribution network for Exjade.
- NOVARTIS controlled how approximately half of the patient prescriptions received by EPASS were distributed among BIOSCRIP and the other two EPASS pharmacies.
- In 2007, NOVARTIS informed BIOSCRIP that the level of refill orders among BioScrip’s Exjade patients was below the refill levels achieved by the other two EPASS pharmacies. NOVARTIS demanded that BIOSCRIP implement a Performance Improvement Plan (“PIP”) due to its low refill levels relative to the other EPASS pharmacies. NOVARTIS informed BIOSCRIP that it had to increase its refill levels or NOVARTIS would cut off the flow of certain patient referrals to BIOSCRIP and, potentially, remove BIOSCRIP from EPASS.
- In response, and to avoid losing access to patient referrals, BIOSCRIP launched an intensive effort to (i) increase overall patient orders for Exjade refills, and (ii) “restart” many patients who had stopped ordering Exjade. To achieve that goal, BIOSCRIP hired a group of staff to work exclusively on Exjade (the “Exjade Team”). BIOSCRIP directed the Exjade Team to call many patients to encourage them to order refills and to encourage many patients who had stopped ordering refills to “restart” Exjade.
- The efforts of the Exjade Team resulted in significant increases in Exjade refill levels at BIOSCRIP – by September 2007, the refill levels at BIOSCRIP were higher than at the other two EPASS pharmacies. Recognizing the improvement in refill levels at BIOSCRIP, NOVARTIS continued to direct patient referrals to BIOSCRIP.
- BIOSCRIP developed a protocol, named ScripCare, for the Exjade Team to call patients to encourage many patients to order refills and to encourage many patients who had stopped ordering refills to restart Exjade. In developing ScripCare, BIOSCRIP shared key elements with NOVARTIS.
- The Exjade marketing team at NOVARTIS provided input on aspects of the ScripCare protocol, including how to discuss potential side effects with Exjade patients.
- In 2007, NOVARTIS began issuing monthly “Exjade Scorecards” to BIOSCRIP and the other two EPASS pharmacies that measured, among other things, “adherence” scores. Based on discussions with NOVARTIS, BIOSCRIP knew that the “adherence” scores in the Exjade Scorecards were designed to show how long Exjade patients continued to order refills. Later that year, NOVARTIS began discussions with BIOSCRIP about a plan to allocate more patient referrals to BIOSCRIP if, according to the adherence scores in the Exjade Scorecards, it remained the highest performer in terms of obtaining refill orders.
- In 2008, BIOSCRIP agreed to a new patient allocation plan proposed by NOVARTIS, which linked the percentage of patient referrals for BIOSCRIP to its refill rates as measured by the Exjade Scorecard.
- In 2011, BIOSCRIP was placed under a “corrective action” plan by NOVARTIS due to its low refill rates relative to the other EPASS pharmacies and other issues, and stopped receiving certain patient referrals. In response, BIOSCRIP launched an intensive effort to “restart” many patients and to encourage many patients to order refills. By late 2011, BIOSCRIP’s refill rates had increased significantly; and, starting in January 2012, NOVARTIS increased its allocation of patient referrals to BIOSCRIP based on its higher refill rates relative to the other EPASS pharmacies in late 2011.
The additional claims in the Amended Complaint seek treble damages and penalties under the False Claims Act for the tens of millions of dollars in reimbursements that Medicare and Medicaid paid for Exjade shipments that resulted from the kickback scheme involving NOVARTIS and BIOSCRIP. In addition, the Government seeks compensatory damages under the common law for the tens of millions of dollars for the profits that NOVARTIS and BIOSCRIP obtained as the result of Medicare and Medicaid reimbursements for Exjade.
The allegations of fraud stated in the Complaint were first brought to the attention of federal law enforcement by a whistle-blower who filed a lawsuit under the False Claims Act. The False Claims Act permits the Government to recover up to three times the amount of damages incurred by the United States, plus civil penalties ranging from $5,500 to $11,000 per violation. Private parties who have knowledge of fraud committed against the Government may file suit on behalf of the Government and share in any recovery. The United States may then intervene and file its own lawsuit for treble damages and penalties, as it did in this case.
Mr. Bharara praised the investigative work of the FBI’s Major Provider Response Team, HHS-OIG, and the Medicaid Fraud Control Units for New York, Washington, and Ohio. He also thanked the Commercial Litigation Branch of the U.S. Department of Justice’s Civil Division in Washington D.C., for its extraordinary assistance in this case.
The case is being handled by the Office’s Civil Frauds Unit. Mr. Bharara established the Civil Frauds Unit in March 2010 to bring renewed focus and additional resources to combating healthcare and other types of frauds. Assistant U.S. Attorneys Li Yu, Rebecca C. Martin, and Ellen M. London are in charge of the case.
U.S. v. Novartis & BioScrip Stipulation & Order of Settlement & Dismissal Re Bioscrip
U.S. v. Novartis Amended ComplaintLos Departamentos de Justicia y Educación de EE.UU. Publican un Paquete de Orientación sobre la Disciplina Escolar para Mejorar el Ambiente Escolar y Disminuir la Violencia EscolarRead the Press Release
WASHINGTON –El Departamento de Justicia de EE.UU. (DOJ), en colaboración con el Departamento de Educación de EE.UU. (ED), dio a conocer hoy un paquete de orientación sobre la disciplina escolar que ayudará a los estados, distritos y escuelas a desarrollar prácticas y estrategias para mejorar el ambiente escolar, y asegurar que sus políticas y prácticas cumplan con la ley federal. A pesar de que los incidentes de violencia escolar han disminuido en general, muchas escuelas todavía luchan por crear un ambiente seguro y positivo. Las escuelas pueden mejorar la seguridad asegurándose de que los ambientes sean acogedores y que las acciones disciplinarias sean justas, no discriminatorias, y eficaces.
Cada año, demasiados estudiantes faltan a clase debido a suspensiones y expulsiones, incluso por infracciones menores de las reglas de la escuela. Los estudiantes de color y con discapacidad se ven afectados de manera desproporcionada por la disciplina escolar. El paquete de orientación proporciona recursos para la creación de ambientes escolares seguros y positivos, que son indispensables para elevar el éxito académico de los estudiantes y cerrar las brechas de rendimiento.
"Cuando un estudiante comete una infracción rutinaria de la disciplina, éste debe terminar en la dirección escolar y no en el cuartel de la policía", dijo Eric Holder, fiscal general de EE.UU. "Esta guía de orientación promoverá prácticas disciplinarias justas y eficaces para que las escuelas sean seguras, inclusivas y brinden apoyo a todos los estudiantes. Para mantener a los jóvenes de nuestro país seguros y en el camino correcto, tenemos que garantizar la protección federal de los derechos civiles, ofrecer alternativas a la disciplina excluyente, y proporcionar información útil a los funcionarios escolares".
El paquete de recursos tiene cuatro componentes:
- La carta de orientación a los Estimados Colegas, preparada en colaboración con el Departamento de Educación, brinda a las escuelas orientación sobre los derechos civiles y la disciplina escolar. También indica cómo las escuelas pueden cumplir con las obligaciones legales de la ley federal en la aplicación de la disciplina estudiantil sin discriminar a los estudiantes por motivos de raza, color u origen nacional;
- El documento sobre los Principios Rectores, preparado por ED, se basa en investigaciones recientes y las mejores prácticas para describir tres principios claves y los pasos de acción relacionados que pueden ayudar a los estados y las localidades a mejorar el ambiente y la disciplina escolar;
- El Directorio de Recursos Federales de Ambiente Escolar y Disciplinarios, preparado por ED, indica los extensos recursos de asistencia técnica y otros recursos relacionados con el ambiente y la disciplina escolar que están a disposición de las escuelas y distritos; y
- El Compendio de Leyes y Reglamentos Sobre la Disciplina Escolar, preparado por ED, un catálogo en línea sobre las leyes y reglamentos relacionados con la disciplina escolar en cada uno de los 50 estados, el Distrito de Columbia y Puerto Rico, donde se pueden comparar las leyes de todos los estados y jurisdicciones.
"La enseñanza y el aprendizaje eficaz no pueden realizarse a menos que los estudiantes se sientan seguros en la escuela", dijo Arne Duncan, secretario de Educación de EE.UU. "Las normas disciplinarias positivas pueden ayudar a crear un ambiente de aprendizaje más seguro sin tener que depender en gran medida en las suspensiones y expulsiones. Las escuelas también deben comprender sus obligaciones con los derechos civiles y evitar prácticas disciplinarias injustas. Tenemos que mantener a los estudiantes en la clase donde puedan aprender. Estos recursos son un paso en la dirección correcta".
El paquete de orientación es un recurso que surge de la Iniciativa de Apoyo a la Disciplina Escolar (SSDI), un proyecto conjunto de los departamentos de Justicia y Educación. La SSDI fue puesta en práctica en el 2011, y advierte sobre el vínculo que se crea entre la escuela y la prisión cuando las prácticas disciplinarias conducen a los estudiantes a abandonar la escuela para entrar en el sistema penal. Como alternativa, la iniciativa promueve el apoyo de prácticas disciplinarias que fomentan entornos de aprendizaje seguros, incluyentes y positivos, para así mantener a los estudiantes en la escuela. El Departamento de Justicia aplica el Título IV de la Ley de Derechos Civiles de 1964, que prohíbe la discriminación por motivos de raza u origen nacional en las escuelas públicas, y en el Título VI de la Ley de Derechos Civiles de 1964, que prohíbe a las escuelas, las fuerzas del orden público, y los beneficiarios de asistencia financiera federal, discriminar por motivos de raza, color u origen nacional.
El paquete de orientación es también el resultado de la iniciativa Ya es Hora del presidente Obama para reducir la violencia cometida con armas de fuego. La propuesta pide al Departamento de Educación que reúna y difunda las mejores prácticas disciplinarias para ayudar a los distritos escolares a desarrollar y poner en práctica políticas disciplinarias equitativas. Para continuar los esfuerzos de DOJ/ED relacionados con la SSDI y también cumplir el compromiso de "Ya es Hora", el paquete de orientación ha sido desarrollado con el aporte adicional de los defensores de los derechos civiles, las principales organizaciones de educación y socios filantrópicos.
Para ver los documentos de recurso y orientación, visite www.ed.gov/school-discipline. Las agencias estatales de educación y las escuelas también pueden solicitar una copia del paquete llamando al servicio ED Pubs (Education Publications) al (877) 433-7827.
- La carta de orientación a los Estimados Colegas, preparada en colaboración con el Departamento de Educación, brinda a las escuelas orientación sobre los derechos civiles y la disciplina escolar. También indica cómo las escuelas pueden cumplir con las obligaciones legales de la ley federal en la aplicación de la disciplina estudiantil sin discriminar a los estudiantes por motivos de raza, color u origen nacional;
Justice Department Obtains $317,000 in Discrimination Settlement with Euless, Texas, Apartment ComplexRead the Press Release
The United States has settled a housing discrimination lawsuit in Euless, Texas, concerning discrimination against persons of Middle Eastern and South Asian descent, the Justice Department announced today. Under the agreement, defendants in United States v. Stonebridge at Bear Creek LLP et al will pay a total of $107,000 in civil penalties and $210,000 in a damages fund to compensate victims of the defendants’ discrimination identified during the term of the agreement.
The agreement was filed today in federal court in Dallas and takes the form of a joint proposed order whose terms may be enforced by the court. The department’s complaint alleged that, for several years, the owners, employees and management company of Stonebridge at Bear Creek Apartments violated the Fair Housing Act by denying housing opportunities to persons of Middle Eastern and South Asian descent. Among other unlawful actions, Stonebridge’s property manager ordered leasing agents to misrepresent apartment availability based on the accent and perceived race or national origin of potential tenants, and to segregate those approved tenants of Middle Eastern or South Asian descent into two buildings in order to isolate any smells allegedly associated with ethnic cuisine that the manager disliked.
“The Fair Housing Act ensures that people searching for a home are protected from discrimination, no matter what part of the world their family comes from” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Justice Department will continue to vigorously protect the rights of all individuals to obtain housing free from discrimination.”
Under the agreement, which must be approved by the federal court in Texas, the defendants must adopt a nondiscrimination policy and enact or undertake numerous other corrective measures, including training, record keeping and monitoring. In addition, the property manager who ordered the discrimination will no longer be employed by the owners of Stonebridge at Bear Creek Apartments or its management company.
Fighting illegal housing discrimination is a top priority of the department’s Civil Rights Division. The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability.
More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt/ . Persons who believe they have experienced or witnessed unlawful housing discrimination may call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the department at [email protected] , or contact HUD at 1-800-669-9777. More information about the Fair Housing Act can also be found at www.justice.gov/crt/housing/ or www.hud.gov/fairhousing .
Justice Department Closes Investigation of Prison in Pittsburgh, Pa., After Pennsylvania Department of Corrections Works Cooperatively to Improve Security PracticesRead the Press Release
The Justice Department announced today that it has closed its investigation of State Correctional Institution – Pittsburgh after the Pennsylvania Department of Corrections (PDOC) significantly improved security policies and practices at the prison and throughout the Pennsylvania prison system. The reforms are intended to protect prisoners, especially gay, transgender and gender nonconforming prisoners, from harm and discrimination. The PDOC has also assured the United States that by no later than Dec. 1, 2014, it will have the prison audited and deemed fully compliant with the National Standards to Prevent, Detect, and Respond to Prison Rape promulgated under the Prison Rape Elimination Act of 2003 (PREA).
The department opened this investigation in December 2011, after local authorities initiated criminal prosecutions against seven of the prison’s officers for assaulting and sexually abusing vulnerable prisoners. In May 2013, the department notified Pennsylvania officials that while significant measures had already been undertaken to address the misconduct that had occurred, more needed to be done. Since then, Pennsylvania has worked cooperatively to address the department’s concerns and has made substantial progress toward improving the safety of its prisoners. These improvements include statewide reforms to oversight and accountability measures, abuse and misconduct investigations, prisoner screening procedures and the grievance system. The Pittsburgh prison has also improved the way it monitors its inmates and secures its physical plant.
“We commend the Pennsylvania Department of Corrections for its commitment to improving security policies and practices in Pittsburgh and its other facilities,” said Acting Assistant Attorney General Jocelyn Samuels for the department’s Civil Rights Division. “These improvements, especially those concerning PREA, provide a clear path forward to ensuring the safety of prisoners in their care.”
“I am very pleased with the outcome of this investigation,” added U.S. Attorney David J. Hickton for the Western District of Pennsylvania. “Correctional facilities have a constitutional obligation to adequately protect prisoners from harm. The positive result of this investigation demonstrates our commitment to ensuring that the constitutional rights of all citizens are protected.”
The department initiated this investigation under the Civil Rights of Institutionalized Persons Act, which prohibits a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run correctional facilities. This investigation was conducted by Special Litigation Counsel Avner Shapiro, Trial Attorneys Kyle Smiddie and Aaron Zisser, Analyst Gary Graca of the Special Litigation Section of the Civil Rights Division and Amie Murphy with the U.S. Attorney’s Office for the Western District of Pennsylvania. Secretary John Wetzel and his staff at the PDOC have fully cooperated with this investigation. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.
Honolulu Women Arraigned on Indictment for Fraudulent Debt Elimination SchemeRead the Press Release
HONOLULU - Jennifer McTigue, age 46, and Sakara Blackwell, a/k/a: Dawn Sakaguchi, age 38, both of Honolulu, were arraigned today in United States District Court after a federal grand jury returned a forty-five (45) count indictment against them and Marc Melton, age 43, for fraud, money laundering and other offenses relating to a debt elimination scheme to defraud lending institutions, buyers of real property and escrow companies through a process of filing fraudulent mortgage release documents with the Hawaii Bureau of Conveyances. Both defendants pled not guilty. The indictment was returned on January 3, 2014, and was unsealed upon the arrests of McTigue, Melton, and Blackwell today.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to the indictment, McTigue, Melton and Blackwell operated a scheme which involved filing fraudulent “satisfaction of mortgage” forms with the State of Hawaii Bureau of Conveyances which caused lending institutions holding the mortgages not to be paid on the outstanding debts when the defendants sold the properties, resulting in substantial profits. The debt elimination scheme resulted in the defrauding of not only mortgage lenders, but also innocent buyers who unwittingly bought properties subject to the fraudulently released mortgages.
The Indictment describes transactions involving seven specific properties and alleges that McTigue, Melton and Blackwell fraudulently obtained the releases of over $4.5 million in mortgages or other financial liens against those properties. The indictment alleges that the defendants then sold the properties for prices totaling over $3.3 million.
The defendants are charged with 27 counts of mail or wire fraud each of which carry maximum penalties of 30 years imprisonment and a fines of $1,000,000. McTigue, Melton, and Blackwell are respectively charged with seven, five, and four counts of money laundering, i.e., engaging in monetary transactions of a value greater than $10,000 in criminally derived property, each of which carry maximum penalties of ten years imprisonment and a fine of $250,000. All three defendants are charged with conspiring to commit mail and wire fraud and conspiring to launder funds derived from mail and wire fraud. The maximum penalties for the conspiracies are five years imprisonment and a fine of $250,000, for the former and ten years imprisonment and a fine of $250,000 for the latter. The indictment also seeks forfeiture of property derived from proceeds of the mail and wire fraud, as well as property involved in the money laundering offenses.
The charges in the indictment are merely accusations and each defendant is presumed innocent until proven guilty. United States Magistrate Judge Barry M. Kurren set a trial date of March 11, 2014, before Senior United States District Judge Helen Gillmor.
The prosecution resulted from an investigation conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Ken Sorenson is handling the prosecution.
Hilton Man Sentenced on Drug ChargesRead the Press Release
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Domenico Lonardo, 36, of Hilton, N.Y., who was convicted of manufacturing 100 or more marijuana plants, was sentenced to 60 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Charles E. Moynihan, who handled the case, stated that Lonardo was arrested on April 15, 2010, after members of law enforcement executed a search warrant at his residence at 199 Walker Road, in Hilton. Upon entering the location, officers found a sophisticated indoor marijuana growing operation. During the search, officers located and seized approximately 130 marijuana plants in various stages of growth, marijuana cultivation equipment, including growing lights, generators, exhaust fans, and automatic timers, liquid Lysergic Acid Diethylamid, or “LSD,” as well as other controlled substances. Officers also seized approximately $690.00 in United States currency, a shotgun with a barrel that had been shortened and ammunition.
The sentencing is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge brian R. Crowell, New York Field Division, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero, Special Agent in Charge, and the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major Wayne C. Olson.Harvard Couple Plead Guilty to Fair Labor Standards Act ViolationDefendants Failed to Pay Their Nanny Minimum Wage for More Than 13 YearsRead the Press Release
Boston – A Harvard, Mass. couple today pleaded guilty to an Information in federal court charging them with one count of violating the Fair Labor Standards Act. The couple failed to pay their nanny and housekeeper minimum wage for over 13 years. As part of their plea agreement, the defendants will pay the nanny a substantial portion of the wages owed her.
Martha, 48 and Richard Smalanskas, 49, hired a 16-year-old Bolivian nanny, in Bolivia, to cook, clean and take care of their children. After three years, they brought her to the United States under false documentation which made it appear as if the nanny was related to them. Once here, her travel documents were taken away and she was required to work long hours. She was promised, but not paid, a wage of up to $150 per month even though the nanny was working 80 hours per week. The Smalanskases were aware that they were not paying the nanny minimum wage; in fact, the total amount they paid her over those years was less than $2,500, plus the room and board they provided.
The Smalanskases face up to one year probation, a $10,000 fine and restitution. Sentencing is set for April 2, 2014.
Grand Jury Returns IndictmentsRead the Press Release
MINNEAPOLIS—A federal grand jury in the District of Minnesota, sitting in Minneapolis, recently returned the following indictments. You are advised that a charge is merely an accusation, and that a defendant is presumed innocent until and unless proven guilty. Any sentence is determined by a federal district judge.Brooklyn Park man charged with bank robbery
Tearise Breon Baugh, age 23, of Brooklyn Park, was charged with one count of armed bank robbery and one count of brandishing a firearm during and in relation to a crime of violence.
If convicted, Baugh faces a potential maximum penalty of 25 years in prison on the bank robbery count, and a mandatory consecutive penalty of seven years on the brandishing count. This case is the result of an investigation by the Blaine Police Department, and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorneys Andrew Dunne and Manda M. Sertich.Three men charged with conspiring to possess with intent to distribute over 5 kilograms of methamphetamine
Jorge Urbina Murguia, age 51, Heriberto Plancarte-Barrigan, age 19, and Gilberto Hernandez-Betancourt, age 22, were each charged with one count of conspiracy to possess with intent to distribute methamphetamine. In addition, Plancarte-Barrigan and Hernandez-Betancourt were each charged with one count of attempted possession with intent to distribute methamphetamine.
If convicted, the defendants each face a potential maximum penalty of life in prison. This case is the result of an investigation by the United States Drug Enforcement Administration.St. Paul man charged with possessing a Molotov cocktail
Michael John Walker, age 45, of St. Paul, was charged with one count of possession of an unregistered firearm or destructive device.
If convicted, Walker faces a potential maximum penalty of ten years in prison. This case is the result of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Minneapolis Police Department. It is being prosecuted by Assistant U.S. Attorney Amber M. Brennan.Grand Jury Returns IndictmentsRead the Press Release
MINNEAPOLIS—A federal grand jury in the District of Minnesota, sitting in St. Paul, recently returned the following indictments. You are advised that a charge is merely an accusation, and that a defendant is presumed innocent until and unless proven guilty. Any sentence is determined by a federal district judge.Minneapolis felon charged with possessing a nine-millimeter handgun
Randolph Seth Anderson, age 42, of Minneapolis, is charged with one count of being a felon in possession of a firearm. Because he is a felon and three or more of his prior convictions were for violent crimes, Anderson is subject to the federal armed career criminal statute, which mandates a minimum sentence of 15 years in federal prison upon conviction.
This case is the result of an investigation by the Minneapolis Police Department, and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Amber M. Brennan.El Salvador citizen charged with illegal re-entry into U.S.
Ana Maria Ortiz, age 43, a citizen of El Salvador found in the Minnesota Correctional Facility in Shakopee, is charged with one count of illegally re-entering the United States after previously being deported subsequent to a conviction for an aggravated felony.
If convicted, Ortiz faces a potential maximum penalty of 20 years in prison. This case is the result of an investigation by the U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations. It is being prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.Honduras citizen charged with illegal re-entry into U.S.
Jorge Alberto Ortiz-Martinez, age 48, a citizen of Honduras, is charged with one count of illegally re-entering the United States after previously being deported subsequent to a conviction for an aggravated felony.
If convicted, Ortiz-Martinez faces a potential maximum penalty of 20 years in prison. This case is the result of an investigation by the U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations and is being prosecuted by Assistant U.S. Attorney Sarah E. Hudleston.Man charged with escaping from custody
Leland Wayne Thompson, age 35, of South Dakota, was charged with one count of escape from custody.
If convicted, Thompson faces a potential maximum penalty of five years in prison. This case is the result of an investigation by the U.S. Marshals Service. It is being prosecuted by Assistant U.S. Attorney David P. Steinkamp.Geneva Man Sentenced on Child Pornography ChargeRead the Press Release
ROCHESTER, N.Y.B U.S. Attorney William J. Hochul announced today that Horace Daniels, 71, of Geneva, N.Y., who was convicted of possession of child pornography, was sentenced 10 years supervised release by U.S. District Court Judge David G. Larimer.
Assistant U.S. Attorney Marisa J. Miller, who handled the case, stated that the defendant downloaded and distributing child pornography, via a peer-to-peer file sharing network. Daniels came to the attention of law enforcement during an undercover investigation, during which officers downloaded images of child pornography from the defendant on 10 dates in August and September 2012. Thereafter, officers executed a search warrant at the defendant’s home in Geneva, where they recovered items of digital media. The items seized contained images of children, many of whom were under the age of 12, engaged in sexually explicit conduct, and many of which depicted acts of violence. At sentencing, the defendant was subject to a recommended sentencing guideline range of 97 to 120 months in prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The sentencing is the culmination of an investigation on the part of immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.Founder of Ukraine-Based Hardcore Child Pornography Website Admits Guilt, Will Be Sentenced to 30 Years in PrisonRead the Press Release
Investigation Led to Conviction of More Than 600 American Subscribers to Illegal Site
NEWARK, N.J. – A Ukrainian man who founded and ran an international hardcore child sexual abuse website today admitted his role in a child exploitation enterprise and agreed to a 30-year prison term, U.S. Attorney Paul J. Fishman announced.
Maksym Shynkarenko, 35, of Kharkov, Ukraine, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to Count 31 of an indictment charging him with conducting a child exploitation enterprise in connection with a website he operated between 2005 and 2008. Shynkarenko was initially detained in Thailand in January 2009 pending extradition. He was transported to the United States and has been in custody in the United States since making his initial court appearance in June 2012.
The investigation into the website Shynkarenko operated has led to convictions in 47 states of more than 600 American consumers of hardcore images of children being sexually assaulted and abused.
“The guilty plea of Maksym Shynkarenko is the capstone to an operation that has led to the imprisonment of hundreds of offenders who traded in recorded images of horrific child abuse and torture,” U.S. Attorney Fishman said. “Because of today’s technology, the images of that abuse will be available for years. It’s fitting that Shynkarenko will spend the next three decades of his life in a prison cell paying for the pain from which he has profited.”“The HSI investigation leading to today’s plea resulted in convictions of 600 American consumers of child pornography in 47 states, dozens of whom were previously convicted sex offenders,” Andrew McLees, special agent in charge of HSI in Newark, said. “Today’s plea again underscores HSI’s commitment to taking those who distribute and sell graphic images and videos of child pornography off the street. Shynkarenko founded and operated a website that offered subscribers access to thousands of despicable images and videos of child sexual abuse. As we did in this case, HSI and our international law enforcement partners will continue to use every tool at our disposal to track down those who exploit children and bring them to justice.”
According to documents filed in this case and statements made in court:
From at least 2005 through mid-2008, Shynkarenko operated from Ukraine a website that he helped design, and which offered access to thousands of images and videos of child sexual abuse. Subscribers typically paid a fee of $79.99 for a 20-day subscription to the website. Shynkarenko worked in conjunction with other individuals, including an individual from Siberia who helped process credit card payments in a way that disguised the true nature of what was purchased. Shynkarenko and the other individuals operating the website granted access to images and videos of child pornography to subscribers on hundreds of occasions from 2005 to 2008. Shynkarenko said he worked with other individuals who advertised the child pornography website over the Internet under names such as “Illegal.CP” and “Pedo Heaven.”
Agents of U.S. Immigration and Customs Enforcement, Homeland Security Investigations, first located the child pornography website operated by Shynkarenko in October 2005 – based in part on e-mails recovered from the computer of an individual in Long Branch, N.J. At that time, the banner page of the site identified it as “Illegal.CP,” and the page featured more than a dozen images of minors engaged in sexual acts with other minors and adults. That page declared “[n]ow you are in [sic] few minutes away from the best children porn site on the net!” and “[i]f you join this site you will get tons of uncensored forbidden pics . . . forbidden stories, of course, many videos.” The words “join now” appeared at the top and bottom of the page.
An ICE agent, acting in an undercover capacity, purchased a 20-day subscription to the “Illegal.CP” website in October 2005 and the next day received an e-mail that provided a login and a password and indicated that the credit card charges for $79.99 would appear on the subscriber’s credit card bill as “ADSOFT.” Upon accessing the “Illegal.CP” website, the initial page warned subscribers as follows:
FAQ, Please read. “Our site is considered to be illegal in all countries....Even if you ever have problems with police, you can always say that someone had stolen the information from your credit card and used it. It is very difficult to establish that you were the person to pay.”
ICE HSI agents determined that the site contained thousands of what appeared to be images of child sexual abuse, both still images and videos, and that it offered the purchase of additional videos through the website.
Working with the U.S. Attorney’s Office for the District of New Jersey, ICE HSI agents in Newark were able to identify hundreds of individuals who subscribed to the “Illegal.CP” website between November 2005 and February 2006. Those leads, largely developed through agents’ monitoring of the website, led to what became a three-phase investigation: Operation Emissary, Emissary II, and Thin Ice. In late 2006, agents recovered a database of hundreds of additional individuals whose credit cards had been processed while subscribing to the “Illegal.CP” website. During the third phase in 2008, the continued investigation by ICE HSI agents focused more on the operators of the website, including Shynkarenko, and recovered evidence of hundreds of additional individuals who had attempted to subscribe.
The leads, along with master search warrants prepared by the New Jersey U.S. Attorney’s Office, were distributed to ICE HSI offices and U.S. Attorney’s Offices throughout the nation. The investigation has led to the conviction of more than 600 individuals in 47 states, making the investigation one of the most successful child sexual abuse investigations in the nation’s history. A list of the more than 600 American consumers convicted as a result of the investigation and the sentences they received is appended to this release.
The child exploitation enterprise count to which Shynkarenko pleaded guilty carries a maximum potential penalty of life imprisonment and a mandatory minimum sentence of 20 years in prison. Under the terms of the plea agreement, the court will sentence Shynkarenko to a term of 30 years in prison. The count also carries a maximum fine of $250,000 or twice the gross amount of any pecuniary gain derived from the offense. Sentencing is scheduled for April 15, 2014.
U.S. Attorney Fishman credited special agents of ICE HSI, under the direction of Special Agent in Charge Andrew McLees, for the investigation leading to today’s guilty plea. He also thanked the United States Marshals Service, under the direction of U.S. Marshal Juan Mattos Jr., for its work in transporting Shynkarenko from Thailand, as well as acknowledging the important work of Thai authorities. U.S. Attorney Fishman also thanked the numerous ICE HSI offices and U.S. Attorney’s Offices around the country who prosecuted the cases that secured the 600 convictions achieved during Operations Emissary and Operation Thin ICE, and thanked the Department of Justice’s Office of International Affairs and Child Exploitation and Obscenity Section for their important roles. He noted the invaluable assistance provided by MasterCard and Visa officials during the course of the investigation.
The government is represented by Assistant U.S. Attorneys Mark J. McCarren and Danielle Walsman of the U.S. Attorney’s Office in Newark and Assistant U.S. Attorney Harvey Bartle in Trenton.
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Defense counsel: Nicholas Wooldridge Esq. and Arkady Bukh Esq., Brooklyn, N.Y.
Shynkarenko Indictment
Thin Ice - Emissary Offender ListFort Myers Man Sentenced to 6 Years in Prison for Bank Fraud and Investor FraudRead the Press Release
Fort Myers, Florida – U.S. District Judge John E. Steele yesterday sentenced Gregory Wayne Eagle (63, Cape Coral) to six years in federal prison for bank fraud, mail fraud, and wire fraud. Eagle pleaded guilty on March 14, 2013.
According to court documents, Eagle was president and director of Eagle Realty of
Southwest Florida, Inc. In June 1990, Eagle created a Trust Agreement for approximately 101 acres of unimproved land, in Cape Coral. A portion of this land bordered on Pine Island Road. Eagle was the trustee of this Pine Island 101 Land Trust and was also one of its beneficiaries, along with 52 named combined interest holders or beneficiaries. Eagle mortgaged the trust property without the knowledge of the other beneficiaries. He did so by submitting fraudulently altered trust agreements to multiple banks naming him, or an entity which he controlled, as the sole beneficiary.Eagle also executed a number of loan documents, in which he falsely claimed to be the sole beneficiary, and that he had authorization to mortgage the property. In the first mortgage loan, in 2002, Eagle received $2 million from Florida Community Bank. He paid off that loan in 2006, with a mortgage loan from First National Bank of Pennsylvania. The 2006 loan was for an amount exceeding $17 million. Eagle used most of the proceeds of the second loan for his own personal use, mainly to fund other projects. He defaulted on the First National Bank of Pennsylvania mortgage loan, causing the bank to initiate foreclosure proceedings, in October 2009, leaving an unpaid principal balance of $17.03 million. The beneficiaries of the Pine Island 101 Land Trust have not received compensation for their initial payments as interest holders, yearly payments, nor for the increase in the value of the Trust property from the time of its inception.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
Former U.S. Postal Carrier Sentenced to Probation, Fined, Ordered to Pay Restitution for Theft of MailRead the Press Release
PROVIDENCE, R.I. – Brett Beauchamp, 29, of Woonsocket, R.I., a former U.S. Postal Service carrier, was sentenced today to 3 years federal probation, fined $3,000 and ordered to pay restitution for rifling through greeting cards he was to have delivered and stealing some of the contents, announced United States Attorney Peter F. Neronha and Rafael Medina, Special Agent in Charge of the Northeast Area Field Office of the U.S. Postal Service Office of Inspector General (USPS OIG).
According to information presented to the court, based on customer complaints of tampered with or missing mail, on November 8, 2011, agents from the USPS OIG performed a live test and surveillance of Beauchamp while he was delivering mail in Woonsocket. Investigators were alerted by a beeper that indicated Beauchamp had opened a test greeting card. Agents confronted Beauchamp and retrieved 28 rifled greeting cards and letters from the rear of his Postal vehicle. They also recovered $100.00 in cash from Beauchamp, $65.00 the agents had placed in the test greeting card and an additional $35.00 Beauchamp admitted to having removed from other mail he opened that day.
Beauchamp pleaded guilty on October 16, 2013, to theft of mail by a Postal Service employee. He resigned his position as a Postal carrier prior to today’s sentencing hearing before U.S. District Court Judge John J. McConnell, Jr.
The case was prosecuted by Assistant U.S. Attorney Richard W. Rose.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Former Texas Association of School Boards (TASB) Workers Compensation Claims Administration Director Pleads Guilty to Mail Fraud ChargesRead the Press Release
In Austin today, Herman G. Wilks, former Department Director of Workers’ Compensation Claims Administration for the Texas Association of School Boards, Inc. (TASB), pleaded guilty to stealing over $500,000 from the TASB’s Risk Management Fund announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Armando Fernandez, San Antonio Division.
The TASB is a voluntary, non-profit, statewide educational association that serves and represents local Texas school districts, regional education service centers, community colleges, and tax appraisal districts. One of the products and services offered by TASB to its members is the TASB Risk Management Fund. The TASB Risk Management Fund provides specific coverage to members through their requisite financial contributions into the risk management pool. This coverage can then apply with regard to unemployment compensation claims, workers' compensation claims, auto, liability and property programs. Wilks’ TASB duties included the supervision of setting up member school districts' workers' compensation claims, adjudicating medical bills and carrying out the utilization, management and pre-authorization functions required by the workers' compensation statutes. Pursuant to his title and area of responsibility at TASB, Wilks had control over and direct access to the entire claimant pay process by which TASB accepted and paid workers' compensation claims for its contributing members by way of the TASB Risk Management Fund.
Appearing before U.S. District Judge Sam Sparks this morning, Wilks pleaded guilty to ten counts of mail fraud. By pleading guilty, Wilks admitted that from April 2008 until March 2013, he unlawfully obtained approximately $514,400 from TASB via the TASB Risk Management Fund by submitting fraudulent workers’ compensation claims on behalf of Medco Implantable Supply, a company he created for the sole purpose of carrying out his fraudulent scheme, for products and services that were never actually ordered, provided or rendered.
“Like many defendants, Mr. Wilks undoubtedly concocted his scheme of setting up a dummy company to steal hundreds of thousands of dollars from the TASB Risk Management Fund with full confidence that he would get away with it. This prosecution should remind would-be thieves like Mr. Wilks that their schemes will be discovered and they will lose not only their ill-gotten gain, but their livelihoods, reputations and quite likely their freedom as a result,” stated U.S. Attorney Pitman.
Wilks faces up to 20 years in federal prison per count. He is currently out on bond pending sentencing which has yet to be scheduled.
This indictment resulted from an investigation conducted by the Federal Bureau of Investigation. Assistant United States Attorney Ashley Hoff is prosecuting this case on behalf of the Government.
Former Senator Alvin L. Williams, Jr. Sentenced to 52 Months in Prison for RacketeeringRead the Press Release
St. Thomas, USVI -- District Court Judge Curtis V. Gomez today sentenced Alvin L. Williams, Jr., former senator for the Legislature of the Virgin Islands, to 52 months in federal prison for racketeering, announced United States Attorney Ronald W. Sharpe, Federal Bureau of Investigation (FBI) Special Agent in charge Joseph Campbell, United States Marshal Cheryl Jacobs, Virgin Islands Office of the Inspector General Steven van Beverhoudt, Internal Revenue Service Criminal Investigation Division (IRS CID) Special Agent in Charge Daniel W. Auer, U.S. Department of Education Office of Inspector General Special Agent in Charge Yessyka Santana, Drug Enforcement Administration (DEA) Special Agent in Charge Eric Barnard, and Virgin Islands Police Department (VIPD) Commissioner Rodney Querrard.
Williams, 34, was remanded to the custody of the United States Marshals Service to begin serving his sentence at the conclusion of today’s hearing. In addition to the prison sentence, Judge Gomez ordered Williams to serve three years of supervised release upon completion of his prison sentence, pay restitution in an amount to be determined, and perform 300 hours of community service.
On January 17, 2013, Williams pleaded guilty to operating and participating in a criminal enterprise whose members and associates engaged in illegal activities including: bribing a Virgin Islands public official, soliciting and receiving bribes from numerous St. Thomas construction project developers, fraudulently soliciting and increasing staff members’ salaries and using the increase of funds for his personal use, and having staff members fraudulently do his University of Phoenix online course for him during legislative work hours.
In the same hearing, Judge Gomez sentenced co-defendants Kim A. Blackett, 30, and Garry Sprauve, 64, two Virgin Islands legislative staff members who worked with Williams.
Sprauve was sentenced to serve one year in prison and three years of probation, and ordered to pay restitution in an amount to be determined and perform 300 hours of community service. Sprauve previously pleaded guilty to helping Williams bribe construction developers, and also participated with Williams in the fraudulent increase of Sprauve’s legislative salary in order for the increase to be used by Williams.
Blackett was placed on probation, ordered to pay restitution in an amount to be determined, and ordered to perform 300 hours of community service. Blackett previously pleaded guilty to fraudulently completing Williams’ online University of Phoenix course work during legislative work hours.
“Public service is a public trust. Those who violate this trust for personal gain will not escape justice,” U.S. Attorney Sharpe said. “Today’s sentences should be a reminder to all public officials of the possible consequences when they seek to use their office for their own personal gain.”
The case was investigated by the Federal Public Corruption Task Force, which comprises the FBI, United States Marshals Service, IRS-CI, U.S. Department of Education Inspector General, DEA, Virgin Islands Office of the Inspector General, and the VIPD. It was prosecuted by Assistant United States Attorneys Kim R. Lindquist and Kelly B. Lake.
Former Political Consultant Antonio Dill Sentenced to Federal Prison in El Paso Corruption CaseRead the Press Release
This afternoon, former El Paso political consultant Antonio Dill was sentenced to ten months in federal prison followed by two years of supervised release for his role in a “pay-to-play” scheme uncovered during the ongoing public corruption investigation in El Paso announced United States Attorney Robert Pitman and FBI Special Agent in Charge Douglas E. Lindquist.
United States District Judge Frank Montalvo also ordered that the 44–year-old Dill pay a $25,000 fine. Furthermore, Judge Montalvo ordered that Dill surrender to federal authorities on or before February 4, 2014, to begin serving his prison term.
Dill, who pleaded guilty to one count of conspiracy to commit mail fraud and deprivation of honest services, admitted that in 2007, he served as a “middle man” in a bribery scheme involving former El Paso County Judge Anthony Cobos. According to court records, Dill received a $1,500 cash bribe which he forwarded to Cobos for his vote and influence in refinancing approximately $40 million of El Paso County debt and to terminate the then El Paso County financial advisor’s contract to be replaced with another company.
This FBI investigation has resulted in 39 federal convictions -- 36 individuals who entered guilty pleas and three individuals who were convicted by juries.
Assistant United States Attorney Debra Kanof prosecuted this case on behalf of the Government.
Former NYC Public School Teacher Pleads Guilty in Manhattan Federal Court to Falsely Claiming to Have Provided Federally-Funded Tutoring ServicesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that SANDRA ALLEN, a former New York City public school teacher and tutor for TestQuest, Inc (“TestQuest”), an educational services company that provided tutoring services to public school children as part of a federally-funded program, pled guilty yesterday in Manhattan federal court for her role in a scheme to make it appear as if students had received after-school tutoring when, in fact, they had not, thereby enabling TestQuest to obtain federal funds to which it was not entitled. ALLEN pled guilty before U.S. District Judge Alvin K. Hellerstein.
Manhattan U.S. Attorney Preet Bharara said: “Sandra Allen, a former public school teacher, exploited a federally-funded tutoring program meant to help underperforming schools and their students. She falsified records and induced students to lie so that TestQuest could steal substantial sums of federal funding. She will now pay the price for her criminal conduct.”
According to the Information and Superseding Information filed against ALLEN and statements made in related court proceedings:
From 2008 through 2011, the New York City Department of Education (“NYCDOE”) received funds from the federal government to pay for New York City’s Supplemental Educational Services program (“SES”), which included after-school tutoring for students attending underperforming public schools. NYCDOE entered into contracts with private entities and organizations to provide SES tutoring to public school students. Students were eligible to receive SES tutoring if they met certain criteria, such as attending a school that had been identified as needing improvement or restructuring for at least two years. Private entities contracted by NYCDOE to provide SES tutoring were required to have each student who attended a class sign a standard attendance form. The tutor was also required to sign the form, attesting to the fact that he or she provided SES tutoring to those students. Further, as a condition of getting paid for providing tutoring, the private entities were required to certify to the NYCDOE that their attendance records were “true and accurate.”
From 2008 through 2011, TestQuest contracted with NYCDOE to provide SES tutoring. TestQuest provided tutoring at various New York City public schools, including the Monroe Academy of Business and Law/High School of World Cultures (“Monroe”) and the Global Enterprise Academy/Christopher Columbus High School (“Columbus”). TestQuest received millions of dollars in federal funding for tutoring during this time period, including hundreds of thousands of dollars for purported tutoring at Monroe and Columbus alone.
From the 2008/2009 academic year through the 2010/2011 academic year, while working as an SES tutor for TestQuest, ALLEN participated in a scheme to falsify daily attendance sheets to make it appear as if more students had attended TestQuest’s SES classes than had actually attended. ALLEN directed students who had not attended any after-school tutoring to sign daily attendance sheets falsely claiming that they had, in fact, received such tutoring. ALLEN also signed certifications on the attendance sheets, falsely certifying that she had provided after-school tutoring to the students whose names appeared on the attendance sheet when, in fact, she had not.
In addition, during the 2008/2009 academic year, ALLEN enlisted four students to participate in the scheme. Specifically, she directed the four students to find other students to sign daily attendance sheets for SES classes that they had not attended. ALLEN purchased food for the four student “helpers” to reward them for their assistance in the scheme.
ALLEN, 53, of New York, New York, pled guilty to one count of conspiracy to make false statements. She faces a maximum sentence of five years and is scheduled to be sentenced by U.S. District Judge Alvin K. Hellerstein on April 25, 2014 at 11:30 am. Civil charges that were previously filed against ALLEN for her role in the fraudulent billing scheme remain pending.
TestQuest previously agreed to pay the Government $1,725,000 in damages and penalties under the False Claims Act in connection with the billing scheme. TestQuest also agreed not to participate in any federal procurement or non-procurement transactions for a period of three years.
Mr. Bharara thanked the United States Department of Education’s Office of Inspector General for its extraordinary assistance in this case.
The criminal case is being handled by the Complex Frauds Unit, and Assistant U.S. Attorneys Joseph P. Facciponti and Christopher B. Harwood are in charge of the prosecution. The civil case is being handled by Christopher B. Harwood of the Office’s Civil Frauds Unit.
U.S. v. TestQuest et al. Amended Complaint
Former Mendenhall Police Chief Pleads Guilty to Conspiracy to Commit Extortion, Bribery and TheftRead the Press Release
Jackson, Miss – Bruce Barlow, 50, former Chief of Police for the Mendenhall Police Department, in Mendenhall, Mississippi, pled guilty today in U.S. District Court to conspiracy to commit extortion, bribery and theft during this tenure as Mendenhall police chief, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen.
A federal grand jury returned an indictment against Barlow on February 5, 2013, charging him with conspiracy, extortion, bribery and witness tampering. A subsequent superseding indictment was returned against Barlow on May 14, 2013 which included additional charges of bribery, theft, and obstruction of justice.
From January 2010 through July 2010, Barlow instructed Mendenhall police officers to pull people over and find ways to get access into and search people’s vehicles. He also instructed his officers to seize cash at every arrest, including money from people arrested for misdemeanor charges.
When Barlow was interviewed by FBI agents on March 7, 2013, he admitted to stealing money and property, and allowing others to take property, that had been taken from victims after an arrest or detention and seized by the Mendenhall Police Department.
As part of his plea agreement, Barlow agreed to make restitution to the victims of the crime and forfeit any money or property related to the crime. Barlow also agreed to never be employed by any governmental entity in the future.
Barlow will be sentenced by Senior U.S. District Judge David C. Bramlette III on March 25, 2014 at 10:30 a.m. Conspiracy carries a maximum sentence of five years in prison and a $250,000 fine. Bribery and theft carry a maximum sentence of ten years in prison and a $250,000 fine. Extortion, obstruction of justice and witness tampering carry a maximum sentence of 20 years in prison and a $250,000 fine.
This case was investigated by the Federal Bureau of Investigation, the Simpson County Sheriff’s Office, and the Mississippi State Auditor’s Office. Assistant U.S. Attorneys Mike Hurst and Mary Helen Wall are prosecuting the case.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
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Former Immigration Enforcement Agent Pleads Guilty in Manhattan Federal Court to Participating in Narcotics ConspiracyRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, announced that KORDELL NESBITT pled guilty today to charges arising from his involvement in a conspiracy to distribute cocaine and marijuana. NESBITT, at the time an Immigration Enforcement Agent (“IEA”) with the Department of Homeland Security, Immigration and Customs Enforcement, arranged for the shipment of marijuana into the New York City area for distribution in the Bronx. NESBITT was charged in July 2013 and pled guilty today before U.S. District Court Judge Jesse M. Furman.
Manhattan U.S. Attorney Preet Bharara said: “Federal agents are supposed to uphold our nation’s laws, not break them. Kordell Nesbitt broke laws that he swore to enforce when he played an integral role in a cocaine and marijuana conspiracy. His successful prosecution underscores our commitment to holding accountable law enforcement officers who engage in unlawful activity.”
According to the Indictment to which NESBITT pled guilty, statements made during the plea proceeding, and other court documents:
Throughout his involvement in the conspiracy, NESBITT was an IEA with U.S. Immigration and Customs Enforcement (“ICE”). Among other duties, he was responsible for escorting detained aliens both within the United States and internationally to foreign countries. In this capacity, NESBITT was authorized to carry a firearm at all times, and was able to avoid screening measures at airports to which civilian travelers are typically subjected.
From at least May 2013, NESBITT sought to arrange for the shipment of cocaine and marijuana into the New York City area. Ultimately, NESBITT succeeded in coordinating the shipment of pound quantities of marijuana to an apartment in the Bronx. Once the package reached its destination, NESBITT personally coordinated sales of the narcotics within the packages using his cellular phone, sending drug customers to the apartment where a co-conspirator executed the sales. Charges against two alleged co-conspirators, Christopher Sinceno and Sherisse Thompson, remain pending.
NESBITT, 26, of the Bronx, New York, pled guilty to one count of engaging in a conspiracy to violate the narcotics laws of the United States, namely, to distribute controlled substances containing marijuana and cocaine. He faces a maximum sentence of five years in prison.
Mr. Bharara praised the investigative work of the Department of Homeland Security, Office of the Inspector General and the Immigration and Customs Enforcement Office of Professional Responsibility. He also thanked ICE’s Homeland Security Investigations for its assistance in the investigation.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant United States Attorney Martin S. Bell is in charge of the prosecution.
The charges against Thompson and Sinceno are merely accusations, and those defendants are presumed innocent unless and until proven guilty.
U.S. v. Kordell Nesbitt and Christopher Sinceno Indictment
Former Head Teller Pleads Guilty to Bank EmbezzlementRead the Press Release
Volunteer State Bank Employee Admits Taking Over $264,000
Kaley Gregory, 29, of Gallatin, Tennessee, pleaded guilty on January 3, 2014, to one count of bank embezzlement, announced David Rivera, United States Attorney for the Middle District of Tennessee.
At the plea hearing, Gregory admitted that from 2009 until May 2013, while employed as the head teller of the Gallatin branch of Volunteer State Bank, she embezzled more than $264,000 from the bank and converted this cash to her own use. Gregory also admitted making false entries into the bank’s computer system in order to conceal her embezzlement and to manipulating bank audits to conceal the shortfall of cash resulting from her scheme. Gregory further acknowledged using a relative’s bank account to disguise the source of embezzled cash which she ultimately deposited into her own personal bank account and used for retail purchases, travel and paying bills.
After accepting Gregory’s plea, U.S. District Judge Todd J. Campbell scheduled a sentencing hearing for March 21, 2014. Gregory faces a maximum sentence of 30 years in prison and a maximum fine of up to $1,000,000. In addition, Gregory will forfeit the proceeds of her embezzlement and any property derived from these proceeds.
The case was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney William F. Abely.
Former Fairmont State V-P Convicted of Embezzlement, Tax ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – A former vice-president at Fairmont State University has been convicted of stealing hundreds of thousands of dollars from the school through the use of a state-issued purchasing card.
United States Attorney William J. Ihlenfeld, II announced that DAVID A. TAMM, age
45, of Parkersburg, West Virginia, entered guilty pleas today before Judge Irene M. Keeley in Clarksburg federal court to “Embezzlement from State Agency Receiving Federal Funds” and “Making and Subscribing a False Tax Return for Tax Year 2012.”TAMM, the former Chief Information Officer at the school, admitted that from October of 2007 until January of 2013, he embezzled and stole funds from Fairmont State, including funds from federal education grants. TAMM also admitted to filing a false tax return for the 2012 tax year by reporting substantially less income than he had actually received.
TAMM, who is free on bond pending sentencing, faces up to ten years in prison on the embezzlement charge and up to three years in prison on the tax charge.
"Mr. Tamm took money belonging to one of our state universities and then used it to purchase a beautiful home, luxury automobiles, and expensive jewelry for his wife," said U.S. Attorney Ihlenfeld. "This is another case of someone abusing a position of trust to live a lifestyle otherwise unobtainable on one’s salary alone."
The investigation revealed that TAMM purchased hundreds of computer switches with his state purchasing card and then resold them for cash, receiving approximately $650,000 from the scheme. TAMM also used his purchasing card to acquire high-end electronics for his personal use.
This case was prosecuted by Assistant United States Attorney Andrew R. Cogar and was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, the West Virginia Commission on Special Investigations and the Fairmont State University Police.
If anyone has information regarding public corruption in their community they are encouraged to call the West Virginia Public Corruption Hotline at 1-855-WVA-FEDS (1-855-982-3337), or to send an email to [email protected].
Former Bank Executive Indicted on Fraud ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – A former bank vice-president has been indicted on charges of fraudulently obtaining loans in the name of an elderly relative.
United States Attorney William J. Ihlenfeld, II, announced that John P. AMAN, 60 years old of Clarksburg, has been charged with eleven counts of “Bank Fraud.” AMAN, who formerly worked as an executive at Huntington National Bank and West Union Bank, is accused of borrowing nearly half a million dollars in the name of an in-law by abusing a power of attorney that the victim had provided to him. AMAN also is alleged to have abused his position at Huntington Bank and West Union Bank to bypass various policies and regulations that may have prevented the loans from being approved. He is also alleged to have misrepresented the purpose of the loans to the lenders.
In addition to his loans with Huntington and West Union, AMAN is accused of fraudulently borrowing funds from Freedom Bank and using stock owned by the victim as collateral for that loan. When the required payments on the loan at Freedom Bank were not made the victim’s stock was sold to satisfy the obligation. The victim of the scheme died in 2011 at the age of 89.
“A power of attorney can be a valuable tool but it can also be abused if entrusted to the wrong person," said U.S. Attorney Ihlenfeld. "Unfortunately, older West Virginians are oftentimes on the wrong end of schemes involving the fraudulent use of these very powerful documents."
AMAN faces up to 30 years in prison on each of the 11 counts, and a fine of up to $1 million. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. The U.S. Attorney’s Office is also seeking a money judgment against AMAN in the amount of at least $372,164.
The case was investigated by the Federal Bureau of Investigation and will be prosecuted by Assistant United States Attorney Andrew R. Cogar. An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former APS Chief Information Officer Pleads Guilty to Accepting KickbacksRead the Press Release
ATLANTA – Former Atlanta Public Schools (APS) Chief Information Officer (CIO) Jerome Oberlton has pleaded guilty to conspiring to receive kickbacks in exchange for using his influence at APS to award a $780,000 project to a computer vendor.
“Mr. Oberlton abused his position as APS’ Chief Information Officer when he took payoffs in exchange for the award of a lucrative computer contract,” said United States Attorney Sally Quillian Yates. “His fraud diverted scarce educational resources from the APS students who needed them to a vendor that was willing to pay to play.”
“IRS Criminal Investigation will continue to provide its investigative resources and expertise in exposing kickback schemes like the one Mr. Oberlton helped to orchestrate” stated Special Agent in Charge, Veronica F. Hyman-Pillot. “We stand committed to weed out individuals who ignore the public's well-being and choose to take the path to financial success by using greed and corruption.”
According to United States Attorney Yates, the indictment, and information presented in court: Oberlton had overall management responsibility for APS’ information technology program. In January 2007, APS issued a request for proposal (RFP) for a Data Warehousing (DW) project at the school system. The DW project was intended to centralize information relating to APS operations, including student information, so that it was maintained digitally in a secure, easily-accessible manner.
From the start of the project in January 2007, Oberlton and co-defendant Mahendra Patel conspired to influence the RFP process for the DW project, and, ultimately, caused the winning bidder to be selected in exchange for kickbacks paid to Oberlton and Patel. While Patel did not work for APS, he had connections with a Detroit-based technology company that received the contract through the corrupted RFP process. In order to hide the bribes, Oberlton created two shell companies, Global Technology Partners (GTP) and, later, Global Technology Services (GTS), and funneled the bribe payments through these shell companies. Oberlton was able to conceal his ownership of GTP and GTS from APS even when questions arose in 2007. The kickbacks to Patel were disguised as sales commissions for non-existent consulting work that he supposedly performed for the shell companies. In reality, Patel acted as an intermediary, helping to negotiate the kickbacks between Oberlton and the Detroit-based technology company and then signed fake sales consultant agreements to hide his role. The Detroit-based technology company ultimately paid approximately $60,000 in bribes to Oberlton over almost six months and, in return, the company received $780,000 in APS project work.
Oberlton was the CIO for APS between June 2004 and August 2007 and, most recently, was the Chief of Staff for the Dallas Independent School District before he resigned in May 2013, shortly after he was indicted.Oberlton, 48, of Atlanta, Ga., pleaded guilty to conspiring with Patel and others to accept bribes, which carries a maximum term of imprisonment of five years and a fine of $250,000. The parties have recommended to the Court that Oberlton receive a sentence of 41 months’ imprisonment, pay $735,130 in restitution and perform 1,000 hours of community service. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders. Sentencing is scheduled for March 24, 2014.
Mahendra Patel, 45, of Kennesaw, Ga., pleaded guilty on August 16, 2013, to conspiring with Oberlton to accept bribes.
These cases are being investigated by the Federal Bureau of Investigation and Internal Revenue Service.
Assistant United States Attorneys Kurt R. Erskine and Jill E. Steinberg are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
For Illegal Oxycodone PossessionRead the Press Release
RHODE ISLAND PILL DEALER SENTENCED TO FEDERAL PRISON
CHARLESTON, W.Va. – A Rhode Island pill dealer who had hundreds of oxycodone pills and thousands in cash inside of a rented Charleston-area hotel room in May 2012 was sentenced today to two years and eight months in federal prison, U.S. Attorney Booth Goodwin announced. Benjamin Steven Campopiano, 29, of Cranston, Rhode Island, previously pleaded guilty in September 2013 to possession of oxycodone with intent to distribute. On May 22, 2012, law enforcement agents obtained a search warrant for an Embassy Suites hotel room that was rented at the time by Campopiano. During the execution of the search warrant, police seized approximately 298 30-milligram oxycodone tablets, $7,820 in cash and marijuana.
Campopiano told police that he distributed oxycodone to individuals in and around Charleston. The defendant also told police that the cash seized from his rented hotel room was proceeds collected from illegal pill transactions.
The United States Postal Inspection Service and the Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney Joshua Hanks handled the prosecution.
The sentence was imposed by United States District Judge Thomas E. Johnston.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Florida Couple Sentenced for Roles<br /> in Procurement Contract Bribery SchemeRead the Press Release
A Florida man was sentenced to serve 15 months in prison, and his wife was sentenced to 24 months of probation, for their roles in a bribery and fraud scheme involving federal procurement contracts, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney David B. Barlow of the District of Utah.
On Feb. 26, 2013, Sylvester Zugrav, 70, of Sarasota, Fla., pleaded guilty to conspiracy to commit bribery and procurement fraud, and his wife, Maria Zugrav, 67, also of Sarasota, pleaded guilty to misprision of a felony related to her efforts to conceal the conspiracy.
The Zugravs were charged in an October 2011 indictment along with Jose Mendez, 51, of Farr West, Utah. Mendez, a procurement program manager for the U.S. Air Force Foreign Materials Acquisition Support Office (FMASO) at Hill Air Force Base, in Ogden, Utah, was charged in the indictment with conspiracy, bribery and procurement fraud, and has since pleaded guilty to all charges and agreed to forfeit more than $180,000 he received as part of the bribery scheme. Sentencing for Mendez is scheduled for Jan. 29, 2014.
According to court documents, the Zugravs owned Atlas International Trading Company, a business that contracted to provide foreign military materials to the U.S. government through FMASO.
In his plea agreement, Sylvester Zugrav admitted that, from 2008 through August 2011, he gave Mendez more than $180,000 in bribe payments and offered Mendez more than $1 million in additional bribe payments contingent upon Atlas’s receipt of future contracts with FMASO. In exchange for Sylvester Zugrav’s bribe payments and offers, Mendez ensured that Atlas and Sylvester Zugrav received favorable treatment in connection with procurement contracts by, among other things, assisting Atlas in obtaining and maintaining procurement contracts; assisting Atlas in receiving payments on such contracts; and providing Atlas with contract bid or proposal information or source selection information before the award of procurement contracts. In her plea agreement, Maria Zugrav admitted that she was aware of Sylvester Zugrav’s bribe payments to Mendez and assisted with concealing the crime.
According to court records, Sylvester Zugrav provided bribe payments to Mendez in three ways: cash payments via Federal Express to Mendez’s residential address; in-person payments of cash and other things of value; and electronic wire transfers to a bank account in Mexico opened by and in the name of Mendez’s cousin. Between November 2009 and August 2011, Sylvester Zugrav sent nine FedEx packages to Mendez’s home address. Each package contained $5,000 in cash, except the last package, which contained $3,000 and was seized by law enforcement. Maria Zugrav assisted her husband and Mendez’s bribe scheme by limiting cash withdrawals from Atlas’s bank account to not more than $5,000 to avoid scrutiny by banking officials and law enforcement.
According to the plea documents, on multiple occasions when Sylvester Zugrav and Mendez traveled to the same location, Sylvester Zugrav would give Mendez cash payments and other things of value. From 2008 through August 2011, Sylvester Zugrav gave Mendez seven in-person cash payments ranging from $500 to $10,000 and purchased for him[?] a laptop computer and software package worth over $2,900.
During the course of the corrupt scheme, Mendez opened a foreign bank account so that Sylvester Zugrav could pay Mendez larger bribe payments. Mendez asked his cousin in Mexico to open an account there. After the account was opened by Mendez’s cousin, Maria Zugrav made wire transfers to the bank account located in the name of Mendez’s cousin to avoid detection of the larger bribe payments by law enforcement. From 2008 through August 2011, Maria Zugrav sent to the Mexico account 10 wire transfers ranging from $350 to $26,700.
Court records also describe additional steps taken to conceal the bribery scheme, including creating and using covert e-mail accounts, using encrypted documents, adopting false names and using code words. For instance, to avoid detection of their e-mail communications, Sylvester Zugrav and Mendez established e-mail accounts to be used only to communicate requests and offers for bribe payments. Sylvester Zugrav and Mendez also created password-protected documents for e-mail communications and used code words and false names. Within the encrypted documents, Mendez adopted the moniker “Chuco” and Sylvester Zugrav used the codename “Jugo.” They referred to cash as “literature.”
The case was investigated by the FBI and the Air Force Office of Special Investigations. The case is being prosecuted by Trial Attorneys Marquest J. Meeks and Edward P. Sullivan of the Criminal Division’s Public Integrity Section, Assistant U.S. Attorney Carlos A. Esqueda of the District of Utah, and Trial Attorney Deborah Curtis of the National Security Division’s Counterespionage Section.Florida Couple Sentenced for Roles in Procurement Contract Bribery SchemeRead the Press Release
SALT LAKE CITY - A Florida man was sentenced to serve 15 months in prison, and his wife was sentenced to 24 months of probation, for their roles in a bribery and fraud scheme involving federal procurement contracts, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney David B. Barlow of the District of Utah.
On Feb. 26, 2013, Sylvester Zugrav, 70, of Sarasota, Fla., pleaded guilty to conspiracy to commit bribery and procurement fraud, and his wife, Maria Zugrav, 67, also of Sarasota, pleaded guilty to misprision of a felony related to her efforts to conceal the conspiracy.
The Zugravs were charged in an October 2011 indictment along with Jose Mendez, 51, of Farr West, Utah. Mendez, a procurement program manager for the U.S. Air Force Foreign Materials Acquisition Support Office (FMASO) at Hill Air Force Base, in Ogden, Utah, was charged in the indictment with conspiracy, bribery and procurement fraud, and has since pleaded guilty to all charges and agreed to forfeit more than $180,000 he received as part of the bribery scheme. Sentencing for Mendez is scheduled for Jan. 29, 2014.
According to court documents, the Zugravs owned Atlas International Trading Company, a business that contracted to provide foreign military materials to the U.S. government through FMASO.
In his plea agreement, Sylvester Zugrav admitted that, from 2008 through August 2011, he gave Mendez more than $180,000 in bribe payments and offered Mendez more than $1 million in additional bribe payments contingent upon Atlas’s receipt of future contracts with FMASO. In exchange for Sylvester Zugrav’s bribe payments and offers, Mendez ensured that Atlas and Sylvester Zugrav received favorable treatment in connection with procurement contracts by, among other things, assisting Atlas in obtaining and maintaining procurement contracts; assisting Atlas in receiving payments on such contracts; and providing Atlas with contract bid or proposal information or source selection information before the award of procurement contracts. In her plea agreement, Maria Zugrav admitted that she was aware of Sylvester Zugrav’s bribe payments to Mendez and assisted with concealing the crime.
According to court records, Sylvester Zugrav provided bribe payments to Mendez in three ways: cash payments via Federal Express to Mendez’s residential address; in-person payments of cash and other things of value; and electronic wire transfers to a bank account in Mexico opened by and in the name of Mendez’s cousin. Between November 2009 and August 2011, Sylvester Zugrav sent nine FedEx packages to Mendez’s home address. Each package contained $5,000 in cash, except the last package, which contained $3,000 and was seized by law enforcement. Maria Zugrav assisted her husband and Mendez’s bribe scheme by limiting cash withdrawals from Atlas’s bank account to not more than $5,000 to avoid scrutiny by banking officials and law enforcement.
According to the plea documents, on multiple occasions when Sylvester Zugrav and Mendez traveled to the same location, Sylvester Zugrav would give Mendez cash payments and other things of value. From 2008 through August 2011, Sylvester Zugrav gave Mendez seven in-person cash payments ranging from $500 to $10,000 and purchased for him[?] a laptop computer and software package worth over $2,900.
During the course of the corrupt scheme, Mendez opened a foreign bank account so that Sylvester Zugrav could pay Mendez larger bribe payments. Mendez asked his cousin in Mexico to open an account there. After the account was opened by Mendez’s cousin, Maria Zugrav made wire transfers to the bank account located in the name of Mendez’s cousin to avoid detection of the larger bribe payments by law enforcement. From 2008 through August 2011, Maria Zugrav sent to the Mexico account 10 wire transfers ranging from $350 to $26,700.
Court records also describe additional steps taken to conceal the bribery scheme, including creating and using covert e-mail accounts, using encrypted documents, adopting false names and using code words. For instance, to avoid detection of their e-mail communications, Sylvester Zugrav and Mendez established e-mail accounts to be used only to communicate requests and offers for bribe payments. Sylvester Zugrav and Mendez also created password-protected documents for e-mail communications and used code words and false names. Within the encrypted documents, Mendez adopted the moniker “Chuco” and Sylvester Zugrav used the codename “Jugo.” They referred to cash as “literature.”
The case was investigated by the FBI and the Air Force Office of Special Investigations. The case is being prosecuted by Trial Attorneys Marquest J. Meeks and Edward P. Sullivan of the Criminal Division’s Public Integrity Section, Assistant U.S. Attorney Carlos A. Esqueda of the District of Utah, and Trial Attorney Deborah Curtis of the National Security Division’s Counterespionage Section.
Five Plead Guilty to Gun Charges Stemming from Stonewood Police Break-InRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA — Five Clarksburg residents entered pleas of guilty to charges stemming from the theft of firearms from the Stonewood Police Department on August 26, 2013.
United States Attorney William Ihlenfeld, II, announced that:
JONATHAN CARPENTER, age 25 and KRISOPHER COX, age 33, each entered a plea of guilty to “Felon in Possession of Firearms.” MICHELLE MCKINNEY, age 29, JOHN LYNCH, age 43, and DENAUL DICKERSON, age 26, each entered a plea of guilty to “Possession of Firearms by an Unlawful Drug User/Addict. CARPENTER, MCKINNEY, LYNCH and COX, who are free on bond pending sentencing, and DICKERSON, who is in custody pending sentencing, face up to 10 years in prison.
This case was prosecuted by Criminal Chief Shawn A. Morgan and was investigated by the Greater Harrison Drug and Violent Crime Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Harrison county Sheriff’s Department. The task force consists of officers & agents from the Bridgeport Police Department; the Clarksburg Police Department; the Drug Enforcement Administration; the West Virginia State Police-Bureau of Criminal Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the United States Postal Inspection Service; and the United States Marshals Service.
First Defendant, A Correctional Officer, Sentenced in Jail House Racketeering ConspiracyRead the Press Release
Smuggled Drugs for BGF Gang Members into Baltimore Correctional Facility; Nine Correctional Officers and Seven other Defendants Have Pleaded Guilty to Date
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced correctional officer Adrena Rice, age 25, of Baltimore today to 42 months in prison followed by two years of supervised release for racketeering conspiracy arising from the smuggling of drugs for members of the Black Guerilla Family (BGF) gang inside the Baltimore City Detention Center (BCDC).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Acting Secretary Gregg Hershberger of the Maryland Department of Public Safety and Correctional Services; Baltimore Police Commissioner Anthony W. Batts; and Baltimore City State’s Attorney Gregg L. Bernstein.According to court documents, BGF has been the dominant gang at the BCDC, and in several connected facilities, including the Baltimore Central Booking Intake Center, the Women’s Detention Center, which houses many men, and in the Jail Industries Building.
According to her plea, Adrena Rice worked as a correctional officer at BCDC. Rice frequently smuggled contraband, including marijuana and prescription pills, into BCDC on behalf of BGF leader and inmate, Tavon White. Rice also helped other correctional officers, such as Jennifer Owens and Katera Stevenson, smuggle drugs into BCDC.
Eight other correctional officers have pleaded guilty to the racketeering enterprise and await sentencing:
Kimberly Dennis, age 26, of Baltimore
Jasmin Jones, a/k/a/ J.J., age 24, of Baltimore; Taryn Kirkland, age 23, of Baltimore; Katrina Laprade, a/k/a Katrina Lyons, age 31; Vivian Matthews, age 26, of Essex, Maryland; Jennifer Owens, a/k/a/ O and J.O., age 31, of Randallstown; Katera Stevenson, a/k/a KK, age 24, of Baltimore; and
Jasmine Thornton, a/k/a J.T., age 26, of Glen Burnie.Seven other co-defendants have also pleaded guilty: inmates Tavon White, age 36; Steven Loney, age 24; Jermaine McFadden, a/k/a Maine, age 25; and Kenneth Parham, age 24; and outside contraband suppliers Tyrone Thompson, a/k/a Henry, age 36; Tyesha Mayo, age 30 and Teshawn Pinder, age 24. Loney is scheduled to be sentenced on January 14, 2014. Outside supplier James Yarborough, a/k/a J.Y., age 27, of Baltimore, is scheduled to have a rearraignment on January 15, 2014 at 10:00 a.m.
The case arose from the efforts of the Maryland Prison Task Force, a group of local, state and federal law enforcement agencies and prosecutors that met regularly for more than two years and generated recommendations to reform prison procedures. The investigation is continuing.U.S. Attorney Rosenstein recognized the efforts of the other members of the Maryland Prison Task Force, including: Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Chief Mark A. Magaw of the Prince George’s County Police Department; United States Marshal Johnny Hughes; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Tom Carr, Director of the Washington-Baltimore High Intensity Drug Trafficking Area; and Dave Engel, Executive Director of the Maryland Coordination and Analysis Center.
United States Attorney Rod J. Rosenstein praised the FBI, Maryland Department of Public Safety and Correctional Services, Baltimore Police Department, and Maryland Prison Task Force, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Ayn B. Ducao, who are prosecuting this Organized Crime Drug Enforcement Task Force case.Federal Judge Upholds Forest Service Decision on Ecosystem Restoration ProjectRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that United States District Court Judge Fred Van Sickle upheld the Forest Service's decision to proceed with a 3,900-acre ecosystem restoration project on the Umatilla National Forest.
According to information disclosed during the court proceedings, the Forest Service had proposed the project, consisting of timber harvest and fuel reduction in the South George area of the Pomeroy Ranger District. Much of the timber harvesting consists of thinning, designed to remove smaller trees that have grown into the forests after decades of fire suppression. The timber harvesting and fuel reduction were designed to return forest conditions closer to historic conditions and thereby reduce the risk of large, catastrophic wildfires. The project had been challenged by The Lands Council, the Hells Canyon Preservation Council, and the League of Wilderness Defenders – Blue Mountain Biodiversity Project. The American Forest Resource Council and Asotin County, Washington had intervened in the lawsuit.
Michael C. Ormsby stated, "Judicial review of agency decisions is an important process in our form of government. Here, the Forest Service properly analyzed the environmental impacts of the proposed project and ensured compliance with the numerous environmental laws that govern activities of many land management agencies."
The case was defended by Rudy J. Verschoor, an Assistant United States Attorney for the Eastern District of Washington and Julie Thrower, an attorney with the Environment and Natural Resources Division of the U.S. Department of Justice.
12-CV-00619-FVS
Drug Trafficker Sentenced to 14 Years in Prison for Methamphetamine DistributionRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that San Chiam Saechao of Anchorage was sentenced by U.S. District Court Judge Sharon Gleason to 168 months in prison for his role in possessing with intent to distribute more than two kilograms of methamphetamine.
San Chiam Saechao previously pled guilty to possession with the intent to distribute large quantities of methamphetamine. In addition to his prison sentence, Saechao was ordered to forfeit approximately $8,900 in cash and two vehicles that he obtained as a result of his drug trafficking activities.
In sentencing Saechao, Judge Gleason emphasized the magnitude of the defendant’s crime, noting that methamphetamine “is a drug that is eating away at the soul of our community.” She also found it concerning that Saechao appeared to be trafficking in his home while multiple young children were present.
According to court documents, Saechao distributed methamphetamine over the course of many months, beginning as early as September 2012. His trafficking activities culminated in January 2013, when he received a package that had contained more than 1.8 kilograms of actual methamphetamine. At the time, he also had multiple firearms in his possession.
The case was jointly prosecuted by Assistant U.S. Attorneys Stephan Collins and Stephanie Courter. The case was investigated by the U.S. Postal Inspection Service (USPIS), U.S. Immigration and Customs Enforcement (ICE), which oversees Homeland Security Investigation (HSI), the Anchorage Police Department (APD), the Alaska State Troopers (AST), and the Drug Enforcement Administration (DEA).
Drug Task Force Investigations Lead to Federal IndictmentsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA — Recent investigations by the Greater Harrison County Drug & Violent Crime Task Force have led to indictments being returned by a Federal Grand Jury sitting in Clarksburg this week.
United States Attorney William J. Ihlenfeld, II, announced that JAUNITA FARNSWORTH, age 31, and WILLIAM MURPHY a/k/a “MURPH,” age 24 of Clarksburg; and MARVIN PIERRE LEDBETTER, JR. a/k/a “MO,” age 28; STANLEY DYE, JR. a/k/a “SMOOTH,” and AMANDA LILLY DANIELS, age 25, of Michigan, were named in a seven-count Indictment charging them with “Conspiracy to Possess with Intent to Distribute and to Distribute Oxycodone.”
FARNSWORTH faces a total of seven counts, MURPHY faces a total of ten count; LEDBETTER faces a total of six counts; and, DYE and DANIELS each face a total of five counts.
In addition to the conspiracy charge, other charges include “Distribution of Oxycodone,” “Possession with Intent to Distribute Oxycodone,” “Maintaining a Drug-Involved Premise,” “Use and Carry of a Firearm in Relation to a Drug-Trafficking Offense,” “Possession of Firearm by Unlawful Drug User/Addict,” and, “Possession of an Unregistered Firearm.”
The defendants each face up to twenty years in prison on the conspiracy, distribution, possession with intent to distribute, and maintaining drug-involved premises charges; a mandatory term of five years in prison on the use and carry of a firearm charge; and up to ten years in prison on the other firearms charges.
The U.S. Attorney’s Office is seeking to forfeit firearms, ammunition and currency which was seized from defendants on December 19, 2013. The case will be prosecuted by Assistant United States Attorney Shawn A. Morgan.
In a separate Task Force case, DAMIAN R. ALLEN, 26, of Clarksburg, was named in a three-count Indictment charging him with the “Distribution of Crack Cocaine and Heroin within 1,000 Feet of Harrison Street Playground.” ALLEN, faces up to 40 years in prison on each count. The case will be prosecuted by Assistant United States Attorney Andrew R. Cogar.The Greater Harrison County Drug and Violent Crime Task Force consists of officers from the Bridgeport Police Department; Clarksburg Police Department; Drug Enforcement Administration; West Virginia State Police-Bureau of Criminal Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Postal Inspection Service; and, the United States Marshals Service.
In other indictments returned this week by the grand jury, MARTIN L. QUEEN, age 51, of Clarksburg, was named in a three-count Indictment charging him with “Possession of Stolen Firearms” and “Making Materially False Statements and Representations.” QUEEN faces up to ten years in prison on the firearms charge and up to five years in prison on the two false statement charges. The QUEEN case will be prosecuted by Morgan and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
JEREMY NATHAN FERRARO, age 33, was named in a one-count Indictment and MARLENA MAE LONG, age 49, was named in a three-count Indictment charging them with “Theft of Mail.” The defendants face up to five years in prison on each charge. These cases will be prosecuted by Assistant United States Attorney Michael D. Stein and were investigated by the United States Postal Inspection Service.
EDWARD CROW, age 43; ROBERT GLENN JOHNS, age 32; JOHN DAVID PINKE, age 35; and, KENNETH RUSSELL KRUM, former USP Hazelton inmates, were named in a seven-count Indictment charging them with “Conspiracy to Commit Assault with a Dangerous Weapon with Intent to do Bodily Harm.” CROW and JOHNS are named in a total of five counts; PINKE is named in a total of four counts; and, KRUM is named in one count. In addition to the conspiracy charge, other charges include “Assault with a Dangerous Weapon with Intent to Commit Murder,” “Assault with a Dangerous Weapon with Intent to do Bodily Harm,” “Assault Resulting in Serious Bodily Injury,” “Possession of a Prohibited Object,” and, “Accessory after the Fact to Assault with a Dangerous Weapon with Intent to do Bodily Harm.” The defendants face up to forty years in prison.
ROBERT KENNETH MOORE, age 27 and KEEGAN CHANCE VANTUYL, age 31, inmates at USP Hazelton were named in a four-count Indictment charging them with “Conspiracy to Commit Assault with a Dangerous Weapon with Intent to do Bodily Harm,” Assault with a Dangerous Weapon with Intent to do Bodily Harm,” and, “Possession of a Prohibited Object.” MOORE and VANTUYL face up to twenty years in prison on the charges. The cases will be prosecuted by Assistant United States Attorney Brandon S. Flower and were investigated by the Special Investigative Services Unit at USP Hazelton.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.Dresden Man Sentenced to over Two Years in Prison for Conspiring to Commit Pharmacy RobberyRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that
Nicholas Alexander, 23, of Dresden, Maine, was sentenced today in United States District Court by Judge George Z. Singal to 28 months imprisonment, to be followed by 3 years of supervised release, for conspiring to rob a Walgreens pharmacy in Bath. Alexander pleaded guilty to the charge on September 24, 2013.According to court records, Alexander and other individuals participated in the June 14, 2013 robbery of the Bath Walgreens. Alexander handed a note to a pharmacist that read, "You have 20 seconds to give me all your Oxycodone 15mg tablets and 30s or I will blow your
[expletive] brains out." As a result, Alexander was given a bag containing 11 bottles of
Oxycodone tablets. Alexander was later found at a motel in Wiscasset, where investigators found almost 600 Oxycodone tablets. In a subsequent interview, Alexander admitted robbing the store, using some of the stolen tablets, and selling others.The investigation was conducted by the Bath Police Department, the Federal Bureau of
Investigation, the Maine Drug Enforcement Agency, and the Lincoln County Sheriff's Office.
United States Attorney Delahanty praised the cooperative actions of the local, county, state and federal agencies. "The United States Attorney's Office has put a special emphasis on the investigation and prosecution of pharmacy robberies in the State of Maine. I am pleased that the cooperative effort of law enforcement at all levels resulted in the successful conclusion of this case."Departments of Justice and Education Issue School Discipline Guidance to Promote Safe, Inclusive SchoolsRead the Press Release
The Department of Justice (DOJ), in collaboration with the Department of Education (ED), today released a school discipline guidance package that will assist states, districts and schools in developing practices and strategies to enhance school climate, and ensure those policies and practices comply with federal law. Even though incidents of school violence have decreased overall, many schools are still struggling to create positive, safe environments. Schools can improve safety by making sure that climates are welcoming, and that responses to misbehavior are fair, non-discriminatory, and effective.
Each year, significant numbers of students miss class due to suspensions and expulsions—even for minor infractions of school rules—and students of color and with disabilities are disproportionately impacted. The guidance package provides resources for creating safe and positive school climates, which are essential for boosting student academic success and closing achievement gaps.
"A routine school disciplinary infraction should land a student in the principal's office, not in a police precinct," said Attorney General Eric Holder. "This guidance will promote fair and effective disciplinary practices that will make schools safe, supportive, and inclusive for all students. By ensuring federal civil rights protections, offering alternatives to exclusionary discipline, and providing useful information to school resource officers, we can keep America's young people safe and on the right path."
The resource package consists of four components:
· The Dear Colleague guidance letter on civil rights and discipline, prepared by DOJ and ED, describes how schools can meet their legal obligations under federal law to administer student discipline without discriminating against students on the basis of race, color or national origin;
· The Guiding Principles document, prepared by ED, draws from emerging research and best practices to describe three key principles and related action steps that can help guide state and local efforts to improve school climate and school discipline;
· The Directory of Federal School Climate and Discipline Resources, prepared by ED, indexes the extensive federal technical assistance and other resources related to school discipline and climate available to schools and districts; and
· The Compendium of School Discipline Laws and Regulations,prepared by ED, is an online catalogue of the laws and regulations related to school discipline in each of the 50 states, the District of Columbia and Puerto Rico, and compares laws across states and jurisdictions.
“Effective teaching and learning cannot take place unless students feel safe at school,” said U.S. Secretary of Education Arne Duncan. “Positive discipline policies can help create safer learning environments without relying heavily on suspensions and expulsions. Schools also must understand their civil rights obligations and avoid unfair disciplinary practices. We need to keep students in class where they can learn. These resources are a step in the right direction.”
The guidance package is a resource resulting from a collaborative project—the Supportive School Discipline Initiative (SSDI)—between DOJ and ED. The SSDI, launched in 2011, addresses the school-to-prison pipeline and the disciplinary policies and practices that can push students out of school and into the justice system. The initiative aims to support instead school discipline practices that foster safe, inclusive and positive learning environments while keeping students in school. The Department of Justice enforces Title IV of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race or national origin in public schools, and Title VI of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race, color or national origin by schools, law enforcement agencies and other recipients of federal financial assistance.
The guidance package also results from President Obama’s Now is the Time proposal to reduce gun violence. It called on ED to collect and disseminate best practices on school discipline policies and to help school districts develop and equitably implement their policies. To both continue ED and DOJ efforts in connection with SSDI and fulfill the administration’s commitment to “Now is the Time,” the guidance package was developed with additional input from civil rights advocates, major education organizations and philanthropic partners.
To view the resource documents, visit www.ed.gov/school-discipline . State Education Agencies, Local Education Agencies and schools may also request a copy of the package by calling (877) 433-7827.
Court Upholds Sentence of Former Police Officer in Child Pornography CaseRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that the U.S. Court of Appeals for the Third Circuit has upheld the sentence imposed on a former police chief for possession of child pornography.
In October 2012, Blaine R. Handerhan, a former Mount Carmel Borough police officer, was sentenced to serve 96 months in prison after pleading guilty to possession of child pornography. The charges against Handerhan stemmed from an investigation into the distribution of child pornography by the Internet Crimes Against Children Task Force, the Pennsylvania State Police, and the Federal Bureau of Investigation. Handerhan was identified by investigators and a search warrant was executed at his residence. His computer was seized and an analysis of it conducted by the Pennsylvania State Police identified 147,070 images and 1,252 video files of child pornography.
Handerhan appealed his sentence, handed down by Senior U.S. District Judge William W. Caldwell in Harrisburg, to the U.S. Court of Appeals for the Third Circuit in Philadelphia. Handerhan argued on appeal that he should be re-sentenced because the sentencing judge did not properly rule on all of the arguments he made at sentencing. After briefing and oral argument, the Court of Appeals upheld the sentence imposed by Judge Caldwell, finding it to be correct both in procedure and substance.
Assistant U.S. Attorney James T. Clancy handled both the prosecution and appeal of this case.
Court of Appeals Dismisses Federal Appeal of Convicted Former Penn State ProfessorRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that on January 7, 2014, the U.S. Court of Appeals for the Third Circuit dismissed the appeal of Craig A. Grimes, former professor of materials science and engineering at Penn State.
In 2012, Grimes pled guilty to federal charges of wire fraud, false statements and money laundering stemming from Grimes’ misuse of federal grant funds totaling approximately $3 million obtained from the U.S. Department of Energy and the National Institutes of Health.
Grimes pleaded guilty in February 2012 before U.S. Chief Magistrate Judge Martin C. Carlson pursuant to a plea agreement. As part of the agreement, Grimes waived his right to appeal. In November 2012, U.S. District Court Judge Yvette Kane sentenced Grimes to 41 months imprisonment, a sentence at the lower end of the guideline range.
Despite the appeal waiver Grimes appealed, claiming that the waiver was not knowing and voluntary and was a miscarriage of justice based on the argument that a valid waiver could not include potential waiver claims based on ineffective assistance of counsel. Grimes did not challenge the sentence, only the validity of the waiver.
The Court of Appeals held that under the facts of the case, Grimes’ waiver was made knowingly and voluntarily and that the waiver did not constitute a miscarriage of justice, noting that there were no unusual circumstances here, or failure to prove an essential element of the offenses charged, that might require a different result.
The Government’s appeal was argued by Assistant U.S. Attorney Stephen R. Cerutti, II.
Court Finds Musto Not Mentally Competent to Stand TrialRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that after a hearing on January 6, 2014 in Wilkes-Barre, U.S. Senior District Court Judge A. Richard Caputo, issued an 11 page Memorandum and an Order on January 7 finding that former Pennsylvania Senator Raphael Musto is not mentally competent to stand trial, by a fair preponderance of the evidence.
Judge Caputo found that Musto was physically competent to stand trial. The finding of mental incompetency was based on the medical testimony and reports. Under the applicable statute, 18 United States Code Section 4241 (d), the Court noted that it is mandatory that Musto be committed to the custody of the Attorney General and that the question of the permanency of Musto’s condition was not before the Court at this time.
U.S. Attorney Peter Smith stated that given the reports and testimony of experts engaged by the Court, the Government and the defense, the Government does not intend to appeal the Judge’s Order.
Section 4241 (d) requires that the defendant be hospitalized “for treatment in a suitable facility” for a “reasonable time, not to exceed four months, as is necessary to determine whether there is a substantial probability that in the foreseeable future,” the defendant will “attain the capacity” to permit further proceedings.
According to U.S. Attorney Smith, the process of selecting a suitable facility and designating a time for the defendant to go there, is conducted by the U.S. Marshals Service and the Bureau of Prisons and may take approximately four to six weeks.
Corpus Christi Man Sentenced for Possessing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Corpus Christi resident Paul Pittman, 45, has been sentenced to seven years for possessing child pornography, announced United States Attorney Kenneth Magidson. Pittman pleaded guilty Oct. 3, 2013.
Today, U.S. District Judge Nelva Gonzalez Ramos handed Pittman a total sentence of 84 months in federal prison to be followed by a 15-year-term of supervised release. In handing down the sentence, the court considered the need to protect the public and deter future criminal behavior by Pittman and others. Pittman will also be required to register as a sex offender.
Pittman came to the attention of law enforcement following a complaint at a Wal-Mart in Corpus Christi alleging an unknown male had inappropriate contact with a minor female. Pittman was identified as the suspect by witnesses to the incident and he was arrested. At that time, he was in possession of a cell phone which was subsequently searched, resulting in the discovery of numerous images of child pornography.
Homeland Security Investigations and the Corpus Christi Police Department's Internet Crimes Against Children Task Force investigated.
This case, prosecuted by Assistant United States Attorney Lance Duke, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."