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24 December 2013
District Man Found Guilty of Sexually Abusing Nine-Year-Old Boy-Defendant Repeatedly Abused Child over Six-Month Period-Read the Press Release
WASHINGTON - A 49-year-old man, of Washington, D.C., has been found guilty of sexually abusing a nine-year-old male relative, U.S. Attorney Ronald C. Machen Jr. announced.
The man, who is not identified here to protect the privacy of the victim and his family, was found guilty by a jury on Dec. 18, 2013, of first-degree child sexual abuse with aggravating circumstances. The verdict followed a trial in the Superior Court of the District of Columbia. The Honorable Russell F. Canan scheduled sentencing for March 14, 2014.
According to the government’s evidence, the defendant repeatedly sexually abused the victim in 2009 during a six-month period in which he and the victim lived together in Laurel, Md. One incident took place in Washington D.C., at the defendant’s place of employment.
In announcing the jury’s verdict, U.S. Attorney Machen commended the work of the agencies that investigated the case, including the Laurel, Md., Police Department and the Metropolitan Police Department (MPD)’s Youth Investigations Division. He also expressed appreciation for the assistance provided by the U.S. Marshals Service, the FBI, and the Department of Justice, as well as the Children’s Advocacy Center, which provided critical services and treatment to the victim. In addition, he acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Child Forensic Interview Specialist Karen Giannakoulias; Paralegal Specialist Donhue Griffith; the Litigation Support Unit, including Litigation Technology Specialists Paul Howell and Joseph Calvarese, and the Victim Witness Assistance Unit, including Victim/Witness Advocates Melissa Milam and Elsa Resendiz. Finally, he praised the work of Criminal Investigator Mark Crawford and Assistant U.S. Attorney Lindsay Suttenberg, who indicted and prosecuted the case.
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Anesthesiologist Pleads Guilty to Unlawfully Distributing OxycodoneRead the Press Release
A former hospital anesthesiologist pleaded guilty today in U.S. District Court in Seattle to distribution of oxycodone, announced U.S. Attorney Jenny A. Durkan. HIEU TU LE, 40, of Snohomish, Washington, a medical doctor licensed in Washington State since 2004, operated medical clinics in Seattle and Everett, Washington. In his plea agreement, LE admits that between March 2012 and July 2013 he wrote oxycodone prescriptions for cash and obtained oxycodone that he distributed for cash, all without a legitimate medical need to do so. When sentenced by U.S. District Judge Thomas S. Zilly on April 3, 2014, the prosecution and defense will recommend between five and seven years in prison. Judge Zilly is not bound by the recommendation and can impose any sentence up to the 20 years in prison allowed by law.
According to records filed in the case and statements made in court today, LE left his job as an anesthesiologist with Valley General Hospital in Monroe, Washington in March 2012. From March to September 2012, LE operated a medical clinic on Seattle’s Capitol Hill neighborhood providing medical marijuana authorizations. In September 2012, LE opened a clinic in Everett called Northwest Green Medical. Beginning in March 2012 and continuing until July 2013, LE wrote multiple oxycodone prescriptions for cash to people who did not need them for legitimate medical purposes. LE would also hand deliver the prescriptions to an Everett pharmacy, pick up the oxycodone pills, and then sell the pills to people who he knew did not have a legitimate medical need for the pills. LE knew that some of the people to whom he sold the pills were reselling them to others, feeding drug addiction in the community. LE’s Everett clinic was the subject of a federal search warrant in July 2013. At that time, LE voluntarily surrendered his DEA registration, which had authorized him to prescribe controlled substances.
As part of the plea agreement, LE is forfeiting to the government various brokerage and bank accounts as proceeds of his drug distribution, and a 2009 Toyota Highlander Hybrid purchased with drug distribution proceeds.
The case was investigated by the Drug Enforcement Administration (DEA) and Health and Human Services (HHS), and is being prosecuted by Assistant United States Attorneys Mike Lang and Matt Diggs.
23 December 2013
Williamsville Man Sentenced for Bomb MakingRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Duncan Badding, 25, of Williamsville, N.Y., was sentenced to one year in prison, to be followed by a 2 year period of supervised release, for unlawfully making and unlawfully possessing destructive devices.
Assistant U.S. Attorney Joel L. Violanti, who is handling the case, stated that police received a complaint on August 8, 2012 of shots being fired in the defendant’s backyard. Thereafter a search of the defendant?s residence, at 66 Williamsburg Square in Williamsville, New York, by the Amherst Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives, enforcement officers discovered Triacetone Triperoxide (TAPT), ANFO which is ammonium nitrate and fuel oil mixed, Tannerite which is a mixture of prilled ammonium and aluminum powder, three (3) pvc pipes and 5 cans of commercial Goex Black Powder.
In addition, several apparent destructive devices, or combination of parts and devices designed or intended to be used or converted into destructive devices, were also found.
This sentencing is the culmination of an investigation on the part of officers from the Amherst Police Department, under the direction of Chief John Askey, Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Resident Agent in Charge Frank Christiano.Waynesboro Tax Preparer Sentenced to 2 Years in Prison for Preparing False Tax ReturnsRead the Press Release
AUGUSTA, GA - CARLOS NEWTON, 44, of Waynesboro, Georgia was sentenced last week by United States District Court Judge Dudley H. Bowen, Jr. to 2 years in prison for his role in the preparation of numerous fraudulent federal tax returns.
According to evidence presented during his guilty plea and sentencing hearings, Newton worked as a tax preparer from 2009 through 2011. During this time, Newton placed fictitious businesses, fictitious income, and fictitious expenses on federal income tax forms, which fraudulently qualified some of his clients for refunds through the earned income tax credit. For his services, Newton requested additional fees from his clients. He referred to those fees as “love offerings.” Newton prepared 22 fraudulent federal tax returns between January 2009 and January 2011. The federal government paid out almost $90,000 in refunds based upon these bogus returns.United States Attorney Edward Tarver said, “As we prepare to enter tax season, cases like this one demonstrate the substantial risks to the return preparer for filing false returns. The United States Attorney’s Office will continue our efforts to protect the integrity of the IRS Return Preparer Program and to apprehend those responsible for stealing the hard-earned money of honest taxpayers.”
Special Agent Roger Garland of IRS-Criminal Investigations investigated the case. Assistant United States Attorney Lamont A. Belk prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.VA Supervisor Indicted for Theft of Government PropertyRead the Press Release
A grand jury returned a three-count indictment charging Okey Wise, 64, of Bath, with theft of government property, depredation of government property, and false statements made to federal investigators, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Wise, a supervisor at the U.S. Department of Veterans Affairs (VA), in or around April 2013 used his position of authority to steal raw materials from the local VA Medical Center, including wiring and other materials necessary for the Medical Center’s backup generator to function. The theft and destruction of the wiring system resulted in a power failure at the Medical Center that left the hospital without access to its electronic records and other essential services.
The indictment also alleges that Wise made false statements to federal officials investigating the incident.
“These government funds and property should have been used to care for our nation’s heroes rather than to personally enrich a VA supervisor” said Gavin McClaren, United States Department of Veterans Affairs – Office of Inspector General, Resident Agent in Charge, Cleveland.
Assistant United States Attorneys Antoinette T. Bacon and Matthew J. Cronin are prosecuting the case following an investigation by the VA Office of Inspector General and the VA Police.
If convicted, the Court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Two Miami Women Sentenced to Ten Years in Prison for Conspiring to Pay Healthcare KickbacksRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS OIG), Miami Regional Office, announce that U.S. District Judge Federico A. Moreno sentenced Yiral Cardona, 39, of Miami, and Susan Chi, 42, of Miami, to ten years in prison stemming from their leadership role in a conspiracy to pay healthcare kickbacks.
At trial, Cardona and Chi were convicted on October 22, 2013 of one count of conspiracy to pay healthcare kickbacks and to defraud the United States, in violation of Title 18, United States Code, Section 371, and three counts of unlawful payment of healthcare kickbacks, in violation of Title 42, United States Code, Section 1320a-7b(b)(2)(A).
According to the evidence presented at trial and the sentencing hearing, Cardona and Chi owned Vista Home Health Services, Inc. (“Vista”), a Miami-Dade based home health agency that purportedly provided skilled nursing and home health services to Medicare beneficiaries. The defendants illegally obtained Medicare patients by paying bribes and kickbacks of at least $141,000 to patient recruiters to induce the referral of Medicare patients to Vista for home health services. Cardona and Chi billed the Medicare program for home health services that were not medically necessary and/or not provided. Between approximately May 15, 2009 and April 26, 2012, Medicare paid Vista more than $4.1 million in claims. The Court ordered the defendants to pay more than $733,000 in restitution.
Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case was prosecuted by Assistant U.S. Attorneys Kevin J. Larsen and Eric Morales.
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.
Three Operation Bloodline Defendants Are SentencedRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that three New Haven residents involved in a narcotics trafficking ring were sentenced today by Senior U.S. District Judge Ellen Bree Burns in New Haven.
TYRICE WHITE, also known as “Ears,” 38, was sentenced to 110 months of imprisonment, followed by five years of supervised release. On April 17, 2013, WHITE pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin.
JAMES MOORE, also known as “Coolie D,” 34, was sentenced to 41 months of imprisonment, followed by three years of supervised release. On August 27, 2013, MOORE pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin.
MARCUS WYLIE, 23, was sentenced to approximately 19 months of imprisonment, time already served, and three years of supervised release. On October 7, 2013, WYLIE pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin.
WHITE, MOORE, WYLIE and more than 100 other individuals were charged as a result of “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants, and seizures of narcotics and firearms.
WHITE has been detained since his arrest on July 25, 2012. MOORE and WYLIE have been detained since May 17, 2012.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Marc Silverman.
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(203) 821-3722 [email protected]Stamford Dental Practice Employee Sentenced to 30 Months in Prison for Embezzling More Than $100kRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BARBARA O’HARA-LEONE, 53, formerly of Norwalk, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 30 months of imprisonment, followed by three years of supervised release, for embezzling from a Stamford dental practice.
According to court documents and statements made in court, O’HARA-LEONE worked as an office manager for a dental practice in Stamford. From approximately June 2012 to May 2012, O’HARA-LEONE stole insurance checks issued to the victim and deposited them into her personal bank account. In addition, she submitted fraudulent claims to several insurance companies for work that was never completed in the names of existing patients, and then deposited the resulting insurance checks into her personal bank account. As part of those fraudulent claims, O’HARA-LEONE used names, dates of birth, and Social Security numbers of the victim’s patients. During the course of the scheme, O’HARA-LEONE stole more than $100,000.
O’HARA-LEONE was ordered to pay restitution in the amount of $100,979.89.
O’HARA-LEONE has been detained since her arrest in North Carolina on April 23, 2013. On October 4, 2013, she pleaded guilty to one count of wire fraud.
This investigation was conducted by the Connecticut Financial Crimes Task Force, which includes members of the U.S. Secret Service, U.S. Postal Inspection Service, Internal Revenue Service – Criminal Investigation, Connecticut State Police, and the Greenwich, Hartford, Monroe, Stamford, Shelton, Stratford and Waterford Police Departments. U.S. Attorney Daly specifically recognized the efforts of the Greenwich and Stamford Police Departments for their assistance in the investigation and prosecution of this matter.
This case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
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(203) 821-3722 [email protected]Rockford Man Pleads Guilty to Income Tax EvasionRead the Press Release
GRAND RAPIDS, MICHIGAN – Robert L. Harley, Jr, of Rockford, Michigan, pleaded guilty to income tax evasion on a 2008 federal income tax return, U.S. Attorney Patrick A. Miles, Jr announced today. U.S. Attorney Miles was joined in the announcement by Special Agent in Charge Erick Martinez, Internal Revenue Service Criminal Investigation.
According to court records, during the 2008 tax year, Harley was working as a manager for Club Concepts, Inc., doing business as the Intersection Bar and Lounge. During this time period, Harley received gross income totaling over $174,500 and purposely filed a false federal income tax return reporting his income as $9,080 with zero tax due. In addition, Harley failed to pay over $32,592 in tax due and owing to the Internal Revenue Service.
Harley entered the guilty plea in U.S. District Court before Magistrate Judge Ellen S. Carmody.
“Harley deliberately filed a false tax return, failing outright to report almost 95% of his adjusted gross income,” said Special Agent in Charge Erick Martinez. “We all have to pay our fair share and his conduct is unacceptable.”The maximum penalty for failing to file federal tax return is imprisonment of not more than five years and a $250,000 fine per each count.
The investigation of this case was conducted by special agents of the Internal Revenue Service, and prosecuted by Assistant U.S. Attorneys Don Davis and Rene Shekmer.
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Richland County Man Sentenced on Methamphetamine Related ChargesRead the Press Release
A Richland County man was sentenced on December 20, 2013, to federal prison on methamphetamine related charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Ivan D. Smith, 42, of Olney, Illinois, was sentenced to 144 months’ imprisonment, three years’ supervised release following his imprisonment, and was fined $200. Smith had previously pleaded guilty to two counts in a federal indictment. Count 1 charged that from on or about March 2011, until on or about June 11, 2013, in Richland County, Smith conspired to manufacture methamphetamine. Count 2 charged that on June 11, 2013, in Richland County, Smith possessed equipment, chemicals, products, or materials which may be used to manufacture methamphetamine, knowing, intending, and having reasonable cause to believe, that those items would be used to manufacture methamphetamine.
The investigation in this case was conducted by the Richland County Sheriff’s Office.
The case is being handled by Assistant United States Attorney George Norwood.
Ohio Lobbyist Pleads Guilty <br /> for Role in Kickback and Money Laundering SchemeRead the Press Release
An Ohio attorney and lobbyist pleaded guilty today for his role in a bribery and money laundering scheme involving the Ohio Treasurer’s Office.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, First Assistant U.S. Attorney Mark T. D’Alessandro of the Southern District of Ohio, and Special Agent in Charge Kevin R. Cornelius of the FBI’s Cincinnati Division made the announcement.
Mohammed Noure Alo, 35, of Columbus, Ohio, appeared before U.S. District Judge Michael H. Watson of the Southern District of Ohio and pleaded guilty to aiding and abetting honest services wire fraud. He faces a maximum penalty of 20 years in prison, and sentencing will be set at a later date.
Alo is a partner and founding member of a Columbus-based law firm and became a registered lobbyist to the State of Ohio in 2010. Court records state that from approximately January 2009 through January 2011, Alo admitted he conspired with his close personal friend Amer Ahmad, 38, of Chicago, and others to use Ahmad’s role as deputy treasurer to direct official State of Ohio broker services business to Douglas E. Hampton, 39, a securities broker from Canton, Ohio, in return for payments from Hampton. Hampton funneled in excess of $123,000 to Alo. Ahmad and Joseph M. Chiavaroli, 33, of Chicago, concealed additional payments from Hampton by passing them through the accounts of a landscaping business in which Ahmad and Chiavaroli held ownership interests.
As a result of the scheme, Hampton received approximately $3.2 million in commissions for 360 trades on behalf of the Ohio Treasurer’s Office. Ahmad and his co-conspirators received in excess of $500,000 from Hampton. Both Hampton and Chiavaroli entered guilty pleas in August 2013.
Ahmad was indicted on Aug. 15, 2013, on charges of conspiracy, honest services wire fraud, money laundering, conspiracy to commit money laundering, federal program bribery, and false statements. He is scheduled for trial on March 3, 2014. A criminal indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
The case was investigated by the FBI’s Central Ohio Public Corruption Task Force, which includes special agents from the FBI and the Ohio Bureau of Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Douglas W. Squires of the Southern District of Ohio and Trial Attorney Eric L. Gibson of the Criminal Division’s Public Integrity Section.Miami-Dade Resident Pleads Guilty in Identity Theft SchemeRead 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), and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), announce that defendant Jean-Elguentino Cayo, 26, of Miami Gardens, pled guilty today for his participation in a stolen identity scheme. Sentencing is scheduled for March 5, 2014 at 2:00 p.m. before U.S. District Judge Jose E. Martinez.
Cayo pled guilty to one count of access device fraud, in violation of Title 18, United States Code, Section 1029(a)(2). At sentencing, the defendant faces a maximum term of ten years in prison.
According to court documents, beginning in December 2012 through June 2013, the defendant sold approximately 400 names, dates of birth, and social security numbers belonging to other persons to a confidential informant and undercover law enforcement officer in exchange for money. The defendant had no authorization to traffic in the names, dates of births, and social security numbers belonging to other persons and acted with the intent to defraud.
Mr. Ferrer commended the investigative efforts of IRS-CI and ICE-HSI. The case is being prosecuted by Assistant U.S. Attorney Frank Maderal.
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.
Justice Department and Consumer Financial Protection Bureau Reach $35 Million Settlement to Resolve Allegations of Lending Discrimination by National City BankRead the Press Release
The Justice Department and the Consumer Financial Protection Bureau filed a consent order today to resolve allegations that National City Bank engaged in a pattern or practice of discrimination that increased loan prices for African-American and Hispanic borrowers who obtained residential mortgages between 2002 and 2008 from National City Bank’s retail offices and nationwide network of mortgage brokers.
The settlement, which is subject to court approval, was filed in conjunction with the agencies’ complaint in the U.S. District Court for the Western District of Pennsylvania. The complaint alleges that National City Bank violated the Fair Housing Act and the Equal Credit Opportunity Act (ECOA) by charging more than 75,000 African-American and Hispanic borrowers higher loan prices not based on borrower risk, but because of their race or national origin. Specifically, the allegations involve loans made to African-American and Hispanic borrowers through the more than 400 retail offices directly operated by National City Bank nationwide between 2002 and 2008. The allegations also involve loans made to African-American and Hispanic borrowers between 2003 and 2008 through National City Bank’s national network of mortgage brokers. National City Bank, which was headquartered in Cleveland , Ohio, was purchased in 2009 by Pittsburgh-based PNC Financial Services Group, which is the successor in interest to National City Bank.
“This settlement will provide deserved relief to thousands of African-American and Hispanic borrowers who suffered discrimination at the hands of National City Bank,” said Attorney General Eric Holder. “As alleged, the bank charged borrowers higher rates not based on their creditworthiness, but based on their race and national origin. This alleged conduct resulted in increased loan prices for minority borrowers. This case marks the Justice Department’s latest step to protect Americans from discriminatory lending practices, and shows we will always fight to hold accountable those who take advantage of consumers for financial gain.”
“With today’s settlement, thousands of African-American and Hispanic borrowers who were discriminated against by National City Bank will be entitled to compensation,” said Acting Assistant Attorney General Jocelyn Samuels for the Justice Department’s Civil Rights Division. “We look forward to further collaboration with the Bureau in protecting consumers from illegal and discriminatory lending practices.”
“Borrowers should never have to pay more for a mortgage loan because of their race or national origin,” said Consumer Financial Protection Bureau Director Richard Cordray. “Today’s enforcement action puts money back in the pockets of harmed consumers and makes clear that we will hold lenders accountable for the effects of their discriminatory practices.”
"It undermines confidence in our banking system when people get different deals not only based on their credit scores, but their skin color,” said U.S. Attorney for the Northern District of Ohio Steve Dettelbach. “With all the positive things for which National City Bank stood for so many years, this is a troubling epilogue to be entered on the other side of the ledger. Hopefully, today's settlement will afford some relief to customers who were shortchanged by this conduct."
“Our commitment to assure fair and equal treatment under the law is absolute,” said David J. Hickton, U.S. Attorney for the Western District of Pennsylvania. “This settlement addresses a serious failure by National City to protect potential homebuyers from discriminatory lending practices.”
National City Bank’s business practices allowed its loan officers and mortgage brokers discretion to vary a loan’s interest rate and fees from the price it set based on the borrower’s objective credit-related factors. This subjective and unguided pricing discretion resulted in African-American and Hispanic borrowers paying more than similarly qualified non-Hispanic White borrowers.
The allegations in the complaint relate solely to loans originated by National City Bank and do not relate to any mortgage lending practices of PNC Financial Services Group.
Under the terms of the proposed settlement, PNC will pay $35 million dollars into a fund for the benefit of victims of National City Bank’s mortgage discrimination. The proposed settlement provides for an independent administrator to contact and disburse payments to borrowers whom the agencies’ identify as victims of National City Bank’s discrimination, at no cost to the borrowers. PNC will pay all costs and expenses of the administrator. Borrowers who are eligible for compensation will be contacted by the administrator. The department will make a public announcement and post contact information on its website once the administrator begins contacting victims. Individuals who believe that they may have been victims of lending discrimination by National City Bank and have questions about the settlement may email the department at [email protected] .
The Justice Department’s enforcement of fair lending laws is conducted by the Fair Lending Unit of the Housing and Civil Enforcement Section in the Civil Rights Division. Since the Fair Lending Unit was established in February 2010, it has filed or resolved 31 lending matters under the Fair Housing Act, ECOA and the Servicemembers Civil Relief Act. The settlements in these matters provide for over $800 million in monetary relief for impacted communities and individual borrowers. The Attorney General’s annual reports to Congress subject to ECOA highlight the department’s accomplishments in fair lending and are available at www.justice.gov/crt/publications .
The Civil Rights Division and the Consumer Financial Protection Bureau are members of the Financial Fraud Enforcement Task Force. President Obama established the interagency task force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information on the task force, visit www.StopFraud.gov.
A copy of the complaint and proposed order, as well as additional information about fair lending enforcement by the Justice Department, can be obtained from the Justice Department website at www.justice.gov/fairhousing.
Hudson Men Arraigned on Food Stamp Fraud ChargesRead the Press Release
Scheme Generated More Than $340,000
ALBANY, NEW YORK – MOFADDAL M. MURSHED, 36, AHMED A. ALGAHAIM, 54, FAISAL Q. MORSHED, 34, and IBRAHIM Q. MURSHED, 24, were arraigned today on an indictment charging them with conspiring to commit Supplemental Nutrition Assistance Program (“SNAP”) fraud by Magistrate Judge Randolph F. Treece announced United States Attorney Richard S. Hartunian, United States Department of Agriculture, Office of the Inspector General, Northeast Region Special Agent-in-Charge William G. Squires, Jr., Columbia County Sheriff David W. Harrison, Jr., and United States Secret Service Resident Agent-in-Charge William Leege. The case is set for trial on February 24, 2014.
SNAP, formerly known as the Food Stamp Program, uses tax dollars to subsidize food purchases by eligible low-income households. SNAP benefits may only be used to purchase food in approved retail food stores, and may not be exchanged for cash. According to the indictment, MOFADDAL M. MURSHED owned D&D’s Grocery & Deli, where AHMED A. ALGAHAIM, FAISAL Q. MORSHED, and IBRAHIM Q. MURSHED worked as employees. The indictment charges that the defendants generated more than $340,000 in fraudulent proceeds by providing cash to SNAP beneficiaries’ in exchange for SNAP benefits.
If convicted, the defendants face up to five years in prison. They could also be ordered to forfeit the proceeds of the offense and to pay a fine of up to $20,000.
The case was investigated by the United States Department of Agriculture, the Columbia County Sheriff’s Office, and the United States Secret Service, and is being prosecuted by Assistant United States Attorney Jeffrey C. Coffman.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent until and unless proven guilty.
Four Minneapolis-based Return Preparers Indicted for Conspiracy, Aggravated Identity Theft, Preparing False ReturnsRead the Press Release
A 63-count superseding indictment charging Chatonda Khofi, Ishmael Kosh, Amadou Sangaray and Francis Saygbay in a conspiracy to defraud the Internal Revenue Service (IRS) was unsealed on Monday, December 23, in Minneapolis, Minn., the Justice Department and IRS announced today. The superseding indictment was returned by a federal grand jury on Nov. 19, 2013, and alleges that Primetime Tax Services Inc. was a tax return preparation business with three storefronts in the Minneapolis area. Khofi worked as the Chief Executive Officer of Primetime, and Kosh and Sangaray worked as managers of the Brooklyn Center location of Primetime. All four named defendants allegedly prepared false tax returns under the name of Primetime.
According to court documents, Khofi, Kosh, Sangaray and Saygbay conspired amongst themselves and with others to prepare and file false individual income tax returns for the customers of Primetime. Some of these returns reported false dependents, false deductions, false Schedule C business losses and false wage income. These false entries resulted in fraudulently inflated refunds for their customers. As part of the scheme, court documents allege that the defendants prepared and filed false Minnesota state income tax returns for their customers that contained the same or similar false information as reported on the federal income tax returns. From 2007 to 2009, Primetime filed over 2,000 customer federal income tax returns with the IRS.
The indictment further charges each defendant with multiple counts of aggravated identity theft and multiple counts of aiding and assisting in the preparation of false individual income tax returns. The aggravated identity theft charges stem from the defendants’ alleged use of the names and social security numbers of actual persons to falsely claim as dependents on their customers’ individual income tax returns.
According to the indictment, the defendants also accompanied some customers to check-cashing businesses to cash their falsely inflated tax refund checks, then demanded a portion of the cashed refund check in addition to tax preparation fees already collected. The indictment alleges that, in some instances, the defendants withdrew cash from debits cards containing their customers’ refunds without permission, again in addition to the tax preparation fees they had already collected.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted, the defendants face a maximum potential sentence of five years in prison for the conspiracy count and three years in prison for each count of aiding in the preparation of a false tax return. The aggravated identity theft counts have a mandatory two year sentence.
The case was investigated by special agents of IRS-Criminal Investigation. It is being prosecuted by Trial Attorneys Dennis Kihm and Thomas Flynn of the Justice Department's Tax Division.
Four Active Police Officers and One Retired Sergeant of the Police of Puerto Rico Indicted and Arrested for Obstruction of JusticeRead the Press Release
SAN JUAN, Puerto Rico – On December 19, a federal grand jury in the District of Puerto Rico returned a 23-count indictment against five defendants charged with obstruction of justice, perjury and false statements, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigation (FBI) is in charge of the investigation.
On February 1, 2010, police officers from the PRPD Caguas Drug Division arrested three males at a residence located in Juncos, PR. The police officers seized drugs, money and a weapon located inside the residence. The officers lied about material facts on what they saw, who they saw, and the actions the three individuals had undertaken.
According to the indictment, on or about February 2010, defendants Miguel Brenes-Concepción, Ángel A. Reyes-Agosto, Roberto Gonzàlez-Rivera, Juan Rivera-Ocasio, and Reimundo Quiñonez-Castro, police officers, engaged in misleading conduct toward DEA and FBI agents by providing false information concerning what occurred during the arrest and seizure of the three individuals. This misleading conduct was intended to hinder, delay, and prevent the communication to law enforcement officers and Judge of the United States of information relating to the commission and possible commission of a Federal offense, namely, the deprivation of constitutional rights.
The defendants also testified before the Grand Jury of the US District Court for the District of Puerto Rico and knowingly made false declarations in relation to the original investigation against the three individuals. As part of that investigation, the Grand Jury needed to know the circumstances surrounding the seizure of various items that day, the defendants’ interactions with the individuals arrested, and the observations concerning the interactions of other police officers with the individuals arrested.
The case is being prosecuted by Assistant U.S. Attorney José Contreras. If convicted, the defendants could face up to 20 years in prison.
“Law enforcement officers who use their badges as a shield to deprive citizens of their constitutional rights, and subsequently engage in misleading conduct to cover up their actions, are not protecting our citizens, they are abusing the trust of those they have sworn to serve,” said Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. “The Justice Department will continue to aggressively prosecute officers who abuse their power in this manner.”Former Teamsters Official Pleads Guilty to Bribery ChargeRead the Press Release
Michael Townsend, age 69, a former business agent and trustee of Teamsters Local 337, pleaded guilty to bribery charges today, announced United States Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Special Agent in Charge James Vanderberg, Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and Patrick Kawa, District Supervisor, Department of Labor, Employee Benefits Security Administration.
Townsend entered his guilty plea during a hearing today before U.S. District Judge Arthur J. Tarnow in Detroit.
According to court records, from June 2005 through mid-July 2008, Townsend took bribes in the form of cash payments totaling approximately $18,000 from an officer of LaGrasso Brothers Produce, Inc. in Detroit in exchange for protecting the company from unionizing efforts by Teamsters Local 337.
"This defendant was a union official who was entrusted to help working people organize," McQuade said. "He betrayed the Teamsters and workers for his own profit. We are seeking to hold him accountable for his conduct."
Townsend is facing a maximum of five years in prison and a fine of up to $250,000.
The case was investigated by agents and officers of the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations and the Department of Labor, Employee Benefits Security Administration. It is being prosecuted by Assistant United States Attorneys David Morris and Mark Chutkow.
Former Ohio Deputy Treasurer Pleads Guilty <br /> for His Role in Kickback and Money Laundering SchemeRead the Press Release
The former Ohio deputy treasurer pleaded guilty today for his role in leading a bribery and money laundering scheme involving the Ohio Treasurer’s Office.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, First Assistant U.S. Attorney Mark T. D’Alessandro of the Southern District of Ohio, and Special Agent in Charge Kevin R. Cornelius of the FBI’s Cincinnati Division made the announcement.
Amer Ahmad, 38, of Chicago, appeared before U.S. District Judge Michael H. Watson of the Southern District of Ohio and pleaded guilty to conspiracy, which carries a maximum penalty of five years in prison, and federal program bribery, which carries a maximum penalty of 10 years in prison. Sentencing will be scheduled at a later date.
According to court documents, from approximately January 2009 through January 2011, Ahmad and others conspired to use Ahmad’s role as deputy treasurer to direct official State of Ohio broker services business to Douglas E. Hampton, 39, a securities broker from Canton, Ohio, in return for payments from Hampton. Ahmad and Joseph M. Chiavaroli, 33, of Chicago, concealed those payments from Hampton by passing them through the accounts of a landscaping business in which Ahmad and Chiavaroli held ownership interests. Hampton also funneled in excess of $123,000 to Mohammed Noure Alo, 35, of Columbus, Ohio, an attorney and lobbyist who was Ahmad’s close personal friend and business associate.
As a result of the scheme, Hampton received approximately $3.2 million in commissions for 360 trades on behalf of the Ohio Treasurer’s Office. Ahmad and his co-conspirators received in excess of $500,000 from Hampton. Hampton and Chiavaroli entered guilty pleas in August 2013 and Alo pleaded guilty on Dec. 20, 2013.
The case was investigated by the FBI’s Central Ohio Public Corruption Task Force, which includes special agents from the FBI and the Ohio Bureau of Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Douglas W. Squires of the Southern District of Ohio and Trial Attorney Eric L. Gibson of the Criminal Division’s Public Integrity Section.Former Local Loan Officer Pleads Guilty to Federal Fraud ChargesRead the Press Release
St. Louis, MO - MICHAEL WALLIS pled guilty to federal criminal charges related to a fraud scheme involving applications for home loans.
According to the facts stated in court during the plea, since at least 2007, Michael Wallis worked in the mortgage lending industry in the St. Louis area. Initially, Wallis was employed as a loan officer, but later operated a company known as Missouri Builders and Home Remodeling (hereinafter referred to as "Missouri Builders"), which performed interior construction and remodeling work on houses. In or around 2007, Wallis began doing real estate business deals with two associates, whose initials are J.B. and J.H., who also worked in the St. Louis real estate market. Wallis, J.B. and J.H. each had experience dealing with mortgages insured by the United States Department of Housing and Urban Development, Federal Housing Administration ("FHA loans"). In addition, they had experience dealing with conventional mortgage loans from banks insured by the Federal Deposit Insurance Corporation ("FDIC") and mortgage loans held by the government sponsored entity known as the Federal National Mortgage Association ("Fannie Mae").
From as early as 2007 until as late as January 2010, in the Eastern District of Missouri, Wallis conspired with J.B. and J.H. to commit the crimes of Bank Fraud and False Statements to an Agency of the United States, in that Wallis and his co-conspirators made material false representations on HUD-1 forms, resulting in the disbursement of excess loan funds which Wallis and his co-conspirators shared among themselves. As part of the conspiracy, Wallis and his co-conspirators found and recruited individuals to apply for loans to purchase homes. Wallis and his co-conspirators supplied the funds for the down payments on the home purchases, but falsely represented to HUD and to the lending banks that the borrowers were making the down payments. Wallis and his co-conspirators created fake "gift letters," which falsely stated that the borrowers’ relatives were providing the down payment funds as gifts to the borrowers.
In addition, Wallis and his co-conspirators falsely stated on HUD-1 forms that remodeling expenses had been incurred and had to be paid from loan proceeds. Wallis and J.B. created fake and inflated invoices for expenses for remodeling work that was never done. As a result, at closing, the title company disbursed loan funds to Wallis’ company, Missouri Builders, based on the false statements on the HUD-1 forms and the false and inflated invoices. Wallis then paid kickbacks to J.B. and J.H. from the illegally obtained loan funds.
Most of the loans went into default, causing substantial losses to the United States and financial institutions. The parties agreed that, for purposes of sentencing guideline calculations, Wallis is responsible for losses in excess of $400,000 but not more than $1,000,000.
Wallis, St. Louis, MO, appeared before United States District Judge John Ross and pled guilty to one felony count of conspiracy to commit bank fraud and make false statements and one felony count of making false statements. Sentencing has been set for March 27, 2014.
Conspiracy carries a maximum of 5 years in prison and/or fines up to $250,000, or both; and making false statements carries a maximum of five years in prison and/or fines up to $250,000, or both. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Department of Housing and Urban Development Office of Inspector General, the Federal Housing Finance Agency Office of Inspector General and the Postal Inspection Service. Assistant United States Attorney Reginald Harris is handling the case for the U.S. Attorney's Office.
Former Jewelry Company Executive Sentenced in Manhattan Federal Court to One Year and One Day in Prison for Stealing over $2 Million in JewelryRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that INGRID LEDERHAAS-OKUN, a former Vice President of Product Development at a high-end jewelry company, was sentenced today in Manhattan federal court to one year and one day in prison for stealing over $2.1 million worth of jewelry from her former employer. LEDERHAAS-OKUN pled guilty on July 26, 2013 and was sentenced today by U.S. District Judge Paul G. Gardephe.
Manhattan U.S. Attorney Preet Bharara said: “With today’s sentence, Ingrid Lederhaas-Okun has learned the price she must pay for stealing millions of dollars worth of fine jewelry from her employer – loss of her liberty and forfeiture of her ill-gotten gains.”
According to the charging instruments in this case, as well as statements made in other public filings and in related court proceedings:
From at least 2008 until February 2013, LEDERHAAS-OKUN worked as a Vice President of Product Development at the midtown Manhattan headquarters of one of the world’s premier high-end jewelers (the “Jewelry Company”). Her duties and responsibilities included ensuring that product designs could be manufactured and, to that end, she had authority to check out jewelry belonging to the Jewelry Company for work-related reasons, for example, to provide the jewelry to potential manufacturers to determine the cost of production.
Between November 2012 and February 2013, LEDERHAAS-OKUN abused her position and authority at the Jewelry Company to check out over 165 pieces of jewelry with a retail value of over $1.2 million, including numerous diamond bracelets, platinum or gold diamond drop and hoop earrings, platinum diamond rings, and platinum and diamond pendants. She then sold some if not all of this jewelry for $1.3 million to another company, a leading international buyer and reseller of jewelry with an office in midtown Manhattan (the “Jewelry Reseller”). The Jewelry Reseller paid for the merchandise that LEDERHAAS-OKUN had stolen either by paying her or her relative, in transactions arranged either by LEDERHAAS-OKUN or a friend working on her behalf. In total, LEDERHAAS-OKUN admitted to stealing over $2 million worth of jewelry in this manner.
To conceal her theft, LEDERHAAS-OKUN repeatedly made false statements to the Jewelry Company. For example, after her termination in February 2013, she told the Jewelry Company representatives that she had only recently checked out the missing jewelry in anticipation of creating a PowerPoint presentation for her supervisor, and that a draft of the presentation could be found on her office computer. However, the missing jewelry had been checked out months earlier, her supervisor was unaware of any such presentation being worked on by LEDERHAAS-OKUN, and there was no draft presentation on her computer. In addition, LEDERHAAS-OKUN claimed the jewelry in question could be found in a white envelope in her office, but a search of her office shortly after her departure did not yield any such envelope.
In addition to the prison term, LEDERHAAS-OKUN, 47, of Darien, Connecticut, was also sentenced to one year of supervised release. She was also ordered to forfeit $2,114,873 and to pay $2,239,873 in restitution.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorney Rosemary Nidiry is in charge of the prosecution and Assistant U.S. Attorney Alexander Wilson is in charge of the forfeiture aspects of the case.
El Departamento de Justicia y la Oficina para la Protección Financiera del Consumidor Realizan Acuerdo Conciliatorio de 35 Millones de Dólares en Resolución de Alegatos de Discriminación en el Otorgamiento d...Read the Press Release
WASHINGTON - El Departamento de Justicia y la Oficina para la Protección Financiera del Consumidor [Consumer Financial Protection Bureau (CFPB)] presentaron hoy una orden por consentimiento en resolución de alegatos de que National City Bank exhibió un patrón o práctica de discriminación que aumentó los precios de los préstamos para prestatarios afroestadounidenses e hispanos que obtuvieron hipotecas residenciales entre 2002 y 2008 de las oficinas minoristas y la red nacional de corredores hipotecarios de National City Bank.
El acuerdo conciliatorio, que está sujeto a aprobación del tribunal, fue presentado junto con la demanda de las agencias en el Tribunal Federal de Distrito del Distrito Oeste de Pensilvania. La demanda alega que National City Bank violó la Ley de Vivienda Justa y la Ley de Igualdad de Oportunidades de Crédito [Equal Credit Opportunity Act (ECOA)] al cobrarles a más de 75,000 prestatarios afroestadounidenses e hispanos precios de préstamos más altos no basados en el riesgo que presentaba el prestatario, sino en su raza u origen nacional. Específicamente, los alegatos se refieren a préstamos realizados a prestatarios afroestadounidenses e hispanos a través de más de 400 oficinas minoristas operadas directamente por National City Bank en todo el país entre 2002 y 2008. Los alegatos también se refieren a préstamos realizados a prestatarios afroestadounidenses e hispanos entre 2003 y 2008 a través de la red nacional de corredores hipotecarios de National City Bank. National City Bank, con sede central en Cleveland , Ohio, fue comprada en 2009 por PNC Financial Services Group, con sede en Pittsburgh, la sucesora en interés de National City Bank.
"El acuerdo conciliatorio permitirá merecida compensación a miles de prestatarios afroestadounidenses e hispanos que sufrieron discrimen por National City Bank", señaló el Secretario de Justicia de los Estados Unidos Eric Holder. "Según los alegatos, el banco les cobró a los prestatarios tasas más altas no basadas en su solvencia, sino en su raza y origen nacional. Esta presunta conducta resultó en precios de préstamos más altos para los prestatarios minoritarios. Este caso marca la más reciente medida del Departamento de Justicia para proteger a los estadounidenses contra las prácticas de otorgamiento de préstamos discriminatorias, y demuestra que seguiremos luchando siempre contra quienes se aprovechen de los consumidores por ganancia financiera".
"Con el acuerdo conciliatorio de hoy, miles de prestatarios afroestadounidenses e hispanos que fueron víctimas de discriminación por parte de National City Bank tendrán derecho a indemnización", indicó la Secretaria de Justicia Auxiliar Interina Jocelyn Samuels de la División de Derechos Civiles del Departamento de Justicia. "Nos complacerá seguir colaborando en el futuro con la CFPB para proteger a los consumidores contra prácticas de otorgamiento de préstamos ilegales y discriminatorias".
"Prestatarios nunca deberán tener que pagar más por una hipoteca debido a su raza u origen nacional", señaló el Director la Oficina para la Protección Financiera del Consumidor Richard Cordray. "La acción de legal de hoy devuelve dinero a los bolsillos de consumidores perjudicados y deja claro que responsabilizaremos a los prestamistas por los efectos de sus prácticas discriminatorias".
"Se socava la confianza en nuestro sistema bancario cuando las personas obtienen diferentes condiciones de préstamo no basadas en sus puntajes de crédito, sino en el color de su piel", dijo el Fiscal Federal para el Distrito Norte de Ohio Steve Dettelbach. "Con todas las cosas positivas que National City Bank representó durante tantos años, éste es un epílogo preocupante a ser ingresado en el lado opuesto de hoja de contabilidad. Esperamos que el acuerdo conciliatorio de hoy le brinde cierta reparación a los clientes perjudicados por esta conducta".
"Nuestro compromiso de asegurar un tratamiento justo e igualitario bajo la ley es absoluto", dijo David J. Hickton, Fiscal Federal para el Distrito Oeste de Pensilvania. "Este acuerdo conciliatorio resuelve la falla grave por parte de National City de no proteger a potenciales compradores de vivienda contra las prácticas de otorgamiento de préstamos discriminatorias".
Las prácticas comerciales de National City Bank permitieron que sus agentes de préstamos y corredores hipotecarios variaran la tasa de interés y los cargos de préstamos respecto del precio que estableció con base en factores crediticios objetivos del prestatario. Debido a esta libertad subjetiva y libre, los prestatarios afroestadounidenses e hispanos acabaron por pagar más que prestatarios blancos no hispanos con calificaciones similares.
Los alegatos de la demanda se refieren únicamente a préstamos originados por National City Bank y no están relacionados con las prácticas de otorgamiento de préstamos hipotecarios de PNC Financial Services Group.
Bajo los términos del acuerdo conciliatorio propuesto, PNC pagará 35 millones de dólares a un fondo para el beneficio de las víctimas de la discriminación hipotecaria exhibida por National City Bank. El acuerdo conciliatorio propuesto dispone que un administrador independiente contacte y realice los pagos a prestatarios identificados por las agencias como víctimas de discriminación por parte de National City Bank, sin ningún costo para los prestatarios. PNC pagará todos los costos y gastos del administrador. Los prestatarios que reúnan los requisitos para compensación serán contactados por el administrador. El Departamento realizará un anuncio público y publicará información de contacto en su portal en Internet una vez que el administrador comience a comunicarse con las víctimas. Las personas que crean que pueden haber sido víctimas de discriminación en el otorgamiento de préstamo por parte de National City Bank y tengan preguntas sobre el acuerdo conciliatorio pueden enviar un mensaje de correo electrónico al departamento a [email protected].
La Unidad de Préstamos Justos de la Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles es responsable, en el Departamento de Justicia, de hacer valer las leyes de otorgamiento justo de préstamos. Desde su fundación en febrero de 2010, la Unidad de Préstamos Justos ha iniciado o resuelto 31 casos asociados con préstamos bajo la Ley de Vivienda Justa [Fair Housing Act], ECOA y la Ley de Amparo Civil para Militares [Servicemembers Civil Relief Act]. Los acuerdos conciliatorios logrados en estos casos consistieron en más de 800 millones de dólares en indemnizaciones a comunidades y prestatarios individuales afectados. Los informes anuales del Secretario de Justicia de EE.UU. al Congreso bajo ECOA destacan los logros del Departamento en el otorgamiento de préstamos justos y están disponibles en www.justice.gov/crt/publications.
La División de Derechos Civiles y la Oficina para la Protección Financiera del Consumidor son miembros de la Fuerza de Tarea de Coacción contra el Fraude Financiero. El Presidente Obama estableció la fuerza de tarea interagencial para llevar a cabo una iniciativa enérgica, coordinada y proactiva para investigar y enjuiciar los delitos financieros. La fuerza de tarea incluye a representantes de una amplia gama de dependencias federales, autoridades reguladoras, inspectores generales y miembros de las fuerzas del orden público estatales y locales, quienes, trabajando juntos, aprovechan un poderoso espectro de recursos de coacción penal y civil. La fuerza de tarea está trabajando para mejorar la labor en todo el poder ejecutivo federal, y con asociados estatales y locales, para investigar y enjuiciar los delitos financieros importantes, asegurar un castigo justo y eficaz para quienes cometan delitos financieros, combatir la discriminación en los mercados de préstamos y financieros, y recuperar fondos para las víctimas de delitos financieros. Para obtener más información sobre la fuerza de tarea, visite www.StopFraud.gov.
Para obtener una copia de la demanda y la orden propuesta, así como también información adicional sobre la labor del Departamento de Justicia para hacer valer las leyes de otorgamiento justo de préstamos, visite el portal del Departamento de Justicia en www.justice.gov/fairhousing.
Convicted Sex Offender Pleads GuiltyRead the Press Release
LUBBOCK, Texas— A Minnesota man, Shannon Lee Callahan, 39, appeared before U.S. District Judge Sam R. Cummings and pleaded guilty to an indictment charging failure to register and update registration as a sex offender. He faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Judge Cummings ordered a presentence investigation report with the sentencing date to be set after the completion of that report. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, in 1992, Callahan was sentenced to a five-year term of probation after having earlier pleaded guilty to two counts of criminal sexual conduct in Dakota County, Minnesota. Based on these convictions, Callahan was considered a sex offender under the Sex Offender Registration and Notification Act (SORNA), and was required to register as such under state and federal law. Under Texas law, persons convicted of this offense have a lifetime obligation to register as a sex offender in Texas.
Callahan moved from Minnesota to Big Lake, Texas, in May 2013, but he never registered as a sex offender in Texas, nor did he inform any authorities in Minnesota that he had left his Minnesota residence and had moved to Texas where he had gained employment.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the U.S. Marshals Service. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Canadian Deputy Health Minister Impersonator Pleads Gulity in $25 Million Fraud SchemeRead the Press Release
BROOKLYN, NY – Earlier today, Howard Leventhal, 56, pleaded guilty to wire fraud for defrauding and attempting to defraud a number of individuals and entities of millions of dollars by falsely claiming that his company, Neovision USA, Inc. (“Neovision”), had a lucrative contract with Canada’s Department of Health (“Health Canada”). Leventhal also pleaded guilty to aggravated identity theft, which carries a mandatory two-year term of imprisonment, for stealing the identity of Glenda Yeates, Health Canada’s former Deputy Minister of Health. When sentenced on April 3, 2014, Leventhal faces up to 22 years in prison, $1,050,819.78 in forfeiture and restitution, and a fine of more than $2 million.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“In Leventhal’s world, the truth was cloaked by his web of lies and impersonation. Within this alternate reality, Leventhal marketed nonexistent technology, fabricated an on-line presence, and impersonated a government official, all to defraud investors out of very real money. His actions were the stuff of fantasy and science fiction, valid only in another dimension. Today’s guilty plea marks the end of Leventhal’s elaborate scheme and demonstrates this Office’s steadfast commitment to protect investors from fraud,” stated United States Attorney Lynch. Ms. Lynch expressed her grateful appreciation to the FBI, the lead agency responsible for the investigation, and the Royal Canadian Mounted Police (RCMP) and Health Canada for their significant cooperation and assistance in the investigation.
According to court filings and facts presented at the plea hearing, Leventhal told potential investors that Neovision had written agreements with Health Canada, whereby Neovision would provide Health Canada with “Heltheo’s McCoy Home Health Tablet,” a device ostensibly named after the fictional Dr. Leonard McCoy of TV’s Star Trek series.1 The written agreement provided by Leventhal to potential investors was purportedly signed by Glenda Yeates, Canada’s former Deputy Health Minister, on behalf of the government of Canada. For example, in May 2012, Leventhal used this agreement and entered into a factoring agreement with Paragon Financial Group, Inc. (“Paragon”), a Florida company, whereby Paragon advanced Neovision $800,000 in exchange for Paragon’s right to collect a larger sum of money purportedly owed to Neovision by Health Canada. Leventhal also used the purported agreement with Health Canada to solicit more than $25 million from other potential investors, including an undercover law enforcement agent posing as a high net worth individual.
Contrary to Leventhal’s representations, (1) there was no agreement between Health Canada and Neovision, (2) Health Canada did not owe Neovision any money, and (3) Deputy Health Minister Glenda Yeates’ signature on the agreement was a forgery. To conceal his scheme, Leventhal assumed the identities of Health Canada representatives, including that of former Deputy Health Minister Glenda Yeates. Further, Leventhal created and used domain names, telephone numbers, and email addresses that closely resembled those actually used by Health Canada. For example, Leventhal created and used healthcanada.com.co and hc-sg-gc.ca in place of Health Canada’s true domain name hc-sc.gc.ca.
Today’s guilty plea took place before United States District Judge Brian M. Cogan.
The government’s case is being prosecuted by Assistant United States Attorney Winston M. Paes.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The Defendant
HOWARD LEVENTHAL
Age: 56
Long Grove, IllinoisE.D.N.Y. Docket No. 13-CR-695
_____________________________
1 Leventhal claimed that Heltheo’s McCoy Home Health Tablet can instantaneously and effectively deliver detailed patient data to physicians and other licensed medical care providers.
Broward Resident Pleads Guilty and Sentenced for Violating the Endangered Species ActRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Otha Easley, Acting Special Agent in Charge, NOAA Fisheries Office of Law Enforcement, Southeast Division, and Major Camille Soverel, Regional Commander, South A Region, Florida Fish & Wildlife Conservation Commission (FWC), announce that Robert Jaques, 43, of Deerfield Beach, plead guilty to an information today charging him with the attempted sale of an endangered species, specifically a Largetooth Sawfish (Pristis perotteti) rostrums, in violation of the Endangered Species Act (ESA) of 1973, Title 16, United States Code, Sections 1538(a)(1)(F) and 1540(b)(1).
According to Court records, on June 27, 2013, in Palm Beach County, Jaques offered to sell two Largetooth Sawfish rostrums to an NOAA undercover agent. The list of endangered species at Title 50, Code of Federal Regulation, Section 224.101 identifies the Largetooth Sawfish as an endangered species subject to the ESA. An endangered species is any species which is in danger of extinction throughout all or a significant portion of its range. Jaques was sentenced immediately following his guilty plea to 10 days imprisonment.
Mr. Ferrer commended the investigative efforts of the NOAA Office of Law Enforcement and the FWC. The case is being prosecuted by Assistant U.S. Attorneys Norman O. Hemming, III and Antonia Barnes.
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.
Arthur Gerald Reid Pleads Guilty to Sex Trafficking of ChildrenRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announces that Arthur Gerald Reid, 27, of Macon, Georgia, pled guilty to Sex Trafficking of Children on Monday, December 23, 2013. The defendant’s guilty plea was entered before the Honorable Hugh Lawson, United States District Court Judge, in Macon, Georgia.
In his plea agreement, the defendant admitted that beginning in September, 2011, and continuing until February, 2013, he prostituted a juvenile victim from various motel rooms in Macon, Georgia, and in Tybee Island, Georgia, through the utilization of backpage.com, an erotic services website. Mr. Reid was physically violent toward this juvenile victim. The defendant was encountered by law enforcement on February 26, 2013 at a Macon, Georgia, motel. In his custody and control was the juvenile victim to which Mr. Reid pled guilty as well as two additional juvenile victims. Mr. Reid admitted to prostituting these juveniles through the utilization of backpage.com. Hidden within the motel room was a BB gun, which the juveniles believed to be an authentic firearm.At sentencing, Mr. Reid will be subject to a maximum statutory penalty of life imprisonment, with a mandatory minimum term of imprisonment of ten (10) years, a fine of $250,000, or both, and a term of supervised release of five (5) years up to lifetime supervision. Mr. Reid will also be required to register as a sex offender and will be subject to potential additional prosecution should he fail to register as required by Title 18, United States Code, Section 2250.
“The defendant seized upon the opportunity to exploit these vulnerable victims. All children deserve to be safe from predators like the defendant, and it is the duty of the law to protect them. These three victims are not alone, and my office will continue to vigilantly prosecute any and all who seek to gain from the abuse of children,” said United States Attorney Michael J. Moore.
This case was a joint investigation by the Federal Bureau of Investigation, the Georgia Bureau of Investigation, and the Bibb County Sheriff’s Office. This case was prosecuted by Assistant United States Attorney Julia C. Bowen.
For additional information please contact Pamela Lightsey, Public Information Officer, United States Attorney’s Office at (478) 621-2603.
20 December 2013
Zeekrewards’ Former Chief Operating Officer and Former Senior Technology Officer to Plead Guilty in $850 Million Internet Ponzi SchemeRead the Press Release
Defendants and their Co-Conspirators Promised High Returns to Attract Victim-Investors
CHARLOTTE, N.C. – ZeekRewards’ former Chief Operating Officer, Dawn Wright Olivares, 45, and the company’s former Senior Technology Officer, Daniel C. Olivares, 31, both of Clarksville, Ark., have agreed to plead guilty to federal charges for their roles in an $850 million Internet Ponzi scheme that promised victims a bogus return on investments, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. The two Arkansas residents were associated with the Lexington, N.C. based Rex Venture Group, LLC (RVG), which owned and operated Zeekler and ZeekRewards.
“ZeekRewards used the enormous power of the Internet to rip off $850 million from hundreds of thousands of victims in less than two years. We will continue to work with our law enforcement partners to take down greedy scam artists who think nothing of stealing the savings of hard working people.”
“As today’s technology continues to evolve, cybercriminals use these advances and enhancements to perpetrate an expanding range of crimes,” said Secret Service Assistant Director of Investigations Paul Morrissey. “As we have seen with this case, even with the increasing complexity of online Ponzi schemes, it remains difficult for criminals to remain anonymous. The Secret Service continues to seek new and innovative ways to combat emerging cyber threats. Our success in this case and other similar investigations is a result of our close work with our network of law enforcement partners.”
“This case shows that the appearance of success can be a mask for a tangled financial web of lies” said Richard Weber, Chief, IRS Criminal Investigation. “The underlying structure can fall apart at any time and leave many investors in financial ruin. Criminal Investigation is committed to investigating Ponzi schemes in an effort to protect the financial well-being of the American public.”
According to the criminal charges and plea documents filed today in U.S. District Court in Charlotte:
From January 2010 through August 2012, Dawn Wright Olivares, her step-son, Daniel Olivares, their unindicted co-conspirator and owner of RVG (identified in the charging document as “P.B”) and others engaged in a Ponzi scheme that raised more than $850 million through a sham internet-based penny auction company named “Zeekler” and its purported advertising division “ZeekRewards.” The defendants and their co-conspirators lured investors by falsely representing that ZeekRewards was generating massive profits from its penny auctions, and promised substantial returns on their investment, as much as 125%. Zeekler’s purported profits were bogus and ZeekRewards operated as a fraudulent Ponzi scheme whereby the co-conspirators used monies from victim-investors to pay fraudulent returns to earlier victim-investors and to personally enrich themselves. As a result, Dawn Wright Olivares, Daniel Olivares, “P.B.” and others induced victims worldwide, including over 1,500 victims in the Charlotte, N.C. area, to invest, thereby sustaining losses of at least $750 million.
Dawn Wright Olivares was closely involved in the strategic operations and ultimately served as the Chief Operations Officer of Zeekler and ZeekRewards (together “Zeek”). Dawn Wright Olivares also owned 95% of Wandering Phoenix, LLC, a company that she used, among other things, to receive payments from Zeek and RVG. During the course of the conspiracy, Dawn Wright Olivares and Wandering Phoenix received approximately $7.2 million in victim funds.
Daniel Olivares was RVG’s senior technology officer and was responsible for, among other things, database design, management and operations for Zeek. During the course of the conspiracy, Daniel Olivares personally enriched himself with victim funds totaling approximately $3.1 million. Other unnamed co-conspirators also personally enriched themselves with millions of dollars of victim funds.
In addition to the penny auction scheme, Dawn Wright Olivares, Daniel Olivares, and their co-conspirators represented that victim-investors in ZeekRewards could participate in what came to be known as the Retail Profit Pool (“RPP”), which supposedly allowed victims collectively to share 50% of Zeek’s “massive” net retail profits. However, the reported “daily net profit” was illusory and had no relationship at all to actual penny auction revenues or retail profits. The co-conspirators often re-used bogus daily profit figures from preceding days to report that new day’s purported profits and did not even keep books and records needed to calculate such a figure. Rather, the owner of RVG simply made up the “daily net profit” reported to victims. The true revenue from the scheme – approximately 98% of all incoming funds – came from victim-investors and not “massive” retail revenue and profits from the penny auctions as the co-conspirators claimed.
As the Ponzi scheme grew in size and scope, the co-conspirators took several steps to conceal the true nature of their scam by making a series of cosmetic changes to the ZeekRewards’ RPP. Ultimately, the Ponzi scheme began failing because the outstanding liability resulting from the bogus 125% return on investment continued to rise beyond control. By August 2012, the co-conspirators fraudulently represented to the collective victims that their investments were worth approximately $2.8 billion. Yet the co-conspirators had no accurate books and records to even determine how much cash on hand was available to pay such liability. In fact, by August 17, 2012, the co-conspirators had only $320 million or approximately 11% of $2.8 billion in value that they claimed investors had.
In the plea agreements also filed today with the Court, Dawn Wright Olivares has agreed to plead guilty to an investment fraud conspiracy charge and to tax fraud conspiracy. Daniel Olivares has agreed to plead guilty to an investment fraud conspiracy charge. Each charge carries a maximum prison term of five years in prison and a $250,000 fine. As part of their plea agreements, the defendants have also agreed to pay full restitution to their victims, the amount of which will be determined by the Court at sentencing.
Additional information and updated court filings about this and related cases filings can be accessed at the district’s website: www.justice.gov/usao/ncw/ncwvwa.html.
In making today’s announcement, U.S. Attorney Tompkins praised the U.S. Secret Service for its investigation into ZeekRewards, which is still ongoing, and thanked IRS-CI for its assistance in the case.
In related action today, the United States Securities & Exchange Commission filed civil charges against Dawn Wright Olivares and Daniel Olivares in federal court in Charlotte. Tompkins thanked the U.S. Securities & Exchange Commission, Division of Enforcement for its assistance in the ZeekRewards investigation.
The prosecution is handled by Assistant United States Attorneys Mark T. Odulio and Jenny Grus Sugar of the U.S. Attorney’s Office in Charlotte.
The President’s Financial Fraud Enforcement Task Force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit www.stopfraud.gov.
Zeekrewards’ Former Chief Operating Officer and Former Senior Technology Officer to Plead Guilty in $850 Million Internet Ponzi SchemeRead the Press Release
Defendants and their Co-Conspirators Promised High Returns to Attract Victim-Investors
CHARLOTTE, N.C. – ZeekRewards’ former Chief Operating Officer, Dawn Wright Olivares, 45, and the company’s former Senior Technology Officer, Daniel C. Olivares, 31, both of Clarksville, Ark., have agreed to plead guilty to federal charges for their roles in an $850 million Internet Ponzi scheme that promised victims a bogus return on investments, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. The two Arkansas residents were associated with the Lexington, N.C. based Rex Venture Group, LLC (RVG), which owned and operated Zeekler and ZeekRewards.
“ZeekRewards used the enormous power of the Internet to rip off $850 million from hundreds of thousands of victims in less than two years. We will continue to work with our law enforcement partners to take down greedy scam artists who think nothing of stealing the savings of hard working people.”
“As today’s technology continues to evolve, cybercriminals use these advances and enhancements to perpetrate an expanding range of crimes,” said Secret Service Assistant Director of Investigations Paul Morrissey. “As we have seen with this case, even with the increasing complexity of online Ponzi schemes, it remains difficult for criminals to remain anonymous. The Secret Service continues to seek new and innovative ways to combat emerging cyber threats. Our success in this case and other similar investigations is a result of our close work with our network of law enforcement partners.”
“This case shows that the appearance of success can be a mask for a tangled financial web of lies” said Richard Weber, Chief, IRS Criminal Investigation. “The underlying structure can fall apart at any time and leave many investors in financial ruin. Criminal Investigation is committed to investigating Ponzi schemes in an effort to protect the financial well-being of the American public.”
According to the criminal charges and plea documents filed today in U.S. District Court in Charlotte:
From January 2010 through August 2012, Dawn Wright Olivares, her step-son, Daniel Olivares, their unindicted co-conspirator and owner of RVG (identified in the charging document as “P.B”) and others engaged in a Ponzi scheme that raised more than $850 million through a sham internet-based penny auction company named “Zeekler” and its purported advertising division “ZeekRewards.” The defendants and their co-conspirators lured investors by falsely representing that ZeekRewards was generating massive profits from its penny auctions, and promised substantial returns on their investment, as much as 125%. Zeekler’s purported profits were bogus and ZeekRewards operated as a fraudulent Ponzi scheme whereby the co-conspirators used monies from victim-investors to pay fraudulent returns to earlier victim-investors and to personally enrich themselves. As a result, Dawn Wright Olivares, Daniel Olivares, “P.B.” and others induced victims worldwide, including over 1,500 victims in the Charlotte, N.C. area, to invest, thereby sustaining losses of at least $750 million.
Dawn Wright Olivares was closely involved in the strategic operations and ultimately served as the Chief Operations Officer of Zeekler and ZeekRewards (together “Zeek”). Dawn Wright Olivares also owned 95% of Wandering Phoenix, LLC, a company that she used, among other things, to receive payments from Zeek and RVG. During the course of the conspiracy, Dawn Wright Olivares and Wandering Phoenix received approximately $7.2 million in victim funds.
Daniel Olivares was RVG’s senior technology officer and was responsible for, among other things, database design, management and operations for Zeek. During the course of the conspiracy, Daniel Olivares personally enriched himself with victim funds totaling approximately $3.1 million. Other unnamed co-conspirators also personally enriched themselves with millions of dollars of victim funds.
In addition to the penny auction scheme, Dawn Wright Olivares, Daniel Olivares, and their co-conspirators represented that victim-investors in ZeekRewards could participate in what came to be known as the Retail Profit Pool (“RPP”), which supposedly allowed victims collectively to share 50% of Zeek’s “massive” net retail profits. However, the reported “daily net profit” was illusory and had no relationship at all to actual penny auction revenues or retail profits. The co-conspirators often re-used bogus daily profit figures from preceding days to report that new day’s purported profits and did not even keep books and records needed to calculate such a figure. Rather, the owner of RVG simply made up the “daily net profit” reported to victims. The true revenue from the scheme – approximately 98% of all incoming funds – came from victim-investors and not “massive” retail revenue and profits from the penny auctions as the co-conspirators claimed.
As the Ponzi scheme grew in size and scope, the co-conspirators took several steps to conceal the true nature of their scam by making a series of cosmetic changes to the ZeekRewards’ RPP. Ultimately, the Ponzi scheme began failing because the outstanding liability resulting from the bogus 125% return on investment continued to rise beyond control. By August 2012, the co-conspirators fraudulently represented to the collective victims that their investments were worth approximately $2.8 billion. Yet the co-conspirators had no accurate books and records to even determine how much cash on hand was available to pay such liability. In fact, by August 17, 2012, the co-conspirators had only $320 million or approximately 11% of $2.8 billion in value that they claimed investors had.
In the plea agreements also filed today with the Court, Dawn Wright Olivares has agreed to plead guilty to an investment fraud conspiracy charge and to tax fraud conspiracy. Daniel Olivares has agreed to plead guilty to an investment fraud conspiracy charge. Each charge carries a maximum prison term of five years in prison and a $250,000 fine. As part of their plea agreements, the defendants have also agreed to pay full restitution to their victims, the amount of which will be determined by the Court at sentencing.
Additional information and updated court filings about this and related cases filings can be accessed at the district’s website: www.justice.gov/usao/ncw/ncwvwa.html.
In making today’s announcement, U.S. Attorney Tompkins praised the U.S. Secret Service for its investigation into ZeekRewards, which is still ongoing, and thanked IRS-CI for its assistance in the case.
In related action today, the United States Securities & Exchange Commission filed civil charges against Dawn Wright Olivares and Daniel Olivares in federal court in Charlotte. Tompkins thanked the U.S. Securities & Exchange Commission, Division of Enforcement for its assistance in the ZeekRewards investigation.
The prosecution is handled by Assistant United States Attorneys Mark T. Odulio and Jenny Grus Sugar of the U.S. Attorney’s Office in Charlotte.
The President’s Financial Fraud Enforcement Task Force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit www.stopfraud.gov.
Yankton Man Sentenced in Methamphetamine ConspiracyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Yankton, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on December 19, 2013, by U.S. District Judge Karen E. Schreier.
Schaefer was immediately turned over to the custody of the U.S. Marshals Service.
Richard Allen Schaefer, age 43, was sentenced to 121 months in prison to be followed by 5 years of supervised release.
Schaefer was indicted by a federal grand jury on July 9, 2013. He pled guilty on September 30, 2013.
As his part in the conspiracy, Shaefer delivered over 500 grams of a mixture containing methamphetamine to other conspirators, and he also distributed it to customers in Sioux Falls.
This case was investigated by the Sioux Falls Police Department, the Nebraska State Patrol, and the U.S. Drug Enforcement Administration. Assistant U.S. Attorney John E. Haak prosecuted the case.
Woman Sentenced for Commercial Robberies & Weapon OffenseRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today United States District Judge Louise W. Flanagan sentenced NICOLE ESTELLA JONES, 21, to 192 months imprisonment followed by 5 years of supervised release.
On March 11, 2013 a Complaint was filed charging JONES with one count of conspiracy to rob a business engaged in interstate commerce in violation of Title 18, United States Code, Section 1951; and one count of brandishing a firearm in furtherance of a crime of violence and aiding and abetting in violation of Title 18, United States Code, Sections 924c(1)(A) and 2. On June 14, 2013 JONES pled guilty to these charges.
The investigation revealed that on April 14, 2011, JONES, along with co-conspirators entered the Exxon Gas Station located at 1200 New Bern Avenue, Raleigh and robbed the business. During the robbery a clerk and customer were physically assaulted by the robbers. Later that same day, JONES, along with her co-conspirators robbed the McDonald’s restaurant located at 5016 Spring Forest Road, Raleigh. Next, on April 22, 2011, JONES, along with co-conspirators robbed the Hampton Inn located at 1001 Wake Towne Road, in Raleigh of US currency. Later that same evening, JONES and her co-conspirators, robbed the Courtyard Marriott located at 3908 Arrow Drive, in Raleigh of US currency and an employee’s laptop computer. On April 27, 2011, JONES and her co-conspirators robbed the Wingate Inn located at 2610 Westinghouse Blvd, Raleigh. JONES returned to California a few days after this robbery. A firearm was used during all of these robberies. On March 11, 2013, JONES was arrested by federal authorities in Hemet, California and was transported back to North Carolina for sentencing.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, & Explosives-Raleigh, the Raleigh Police Department, and the City-County Bureau of Identification. Assistant United States Attorney Ethan A. Ontjes prosecuted the case for the government.
West Frankfort, Illinois, Man Sentenced on Child Pornography ChargesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Richard Faling, 55, of Buckner, Illinois, was sentenced for accessing child pornography images online. Faling had earlier pled guilty to the charges on August 14, 2013. The Court sentenced Faling to 210 months in prison, a $500 fine, and a lifetime of supervised release following discharge from prison.
The evidence at sentencing established that Faling had previously been convicted in Illinois for sex offenses involving children. After his release from prison for that offense, authorities discovered that Faling had been accessing child pornography from his computer at his Buckner, Illinois residence.
“This case illustrates the need for such sentences.” noted United States Attorney Wigginton. “I will continue to do my utmost to protect the children of Southern Illinois from those who would prey upon them.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case was prosecuted by Assistant United States Attorney Thomas E. Leggans.
Week in Review – South BendRead the Press Release
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEA:
Demonte Brantley, 19, of South Bend, Indiana, pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of possessing a firearm with an obliterated serial number. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.Sentencing has been set for 4/3/2014.This case is being prosecuted by Assistant United States Attorney Donald Schmid.
DISPOSITIONS:
Bryant Rios, 25, of South Bend, Indiana was sentenced by District Judge Robert L. Miller, Jr. to 78 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of possession of a firearm as a convicted felon.According to documents filed in this case, in May 2013 Rios possessed a loaded .40 caliber pistol which he fired because of a dispute during a drug deal. Mr. Rios has a prior conviction for a felony crime of criminal recklessness.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Gary Wright, 32, of South Bend, Indiana was sentenced by District Judge Robert L. Miller, Jr. to 60 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of knowingly possessing a firearm in furtherance of a drug trafficking offense.According to documents filed in this case, in April 2013, the Fugitive Task Force spotted Wright who was wanted on a parole violation. Wright fled from law enforcement and dropped a loaded SIG 9mm handgun as he ran. Wright was finally apprehended and had several grams of crack (cocaine) and heroin in his possession. Wright stated during his arrest that he intended to sell the firearm. Wright has a previous conviction for manslaughter. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Derrick Green, 23, of Gary, Indiana, pled guilty before Senior District Judge James Moody to the felon offense of making false statements in the purchase of a firearm. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case is being prosecuted by Assistant United States Attorney Dean Lanter.
Ronier Scott, 42, of Gary, Indiana, pled guilty before Magistrate Judge John E. Martin to the misdemeanor offense of failure to file a federal tax return.Magistrate Martin is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Internal Revenue Service.This case is being prosecuted by Assistant United States Attorney Gary Bell.
Christopher Chico, 27, of Blue Island, Illinois, pled guilty before District Judge Joseph Van Bokkelen to the felony offense of distribution of cocaine.Sentencing has been set for 2/27/14.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation.This case is being prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Jerome Robinson, 24, of Gary, Indiana, pled guilty before District Judge Joseph Van Bokkelen to the felony offense of distribution of heroin.This charge was filed as a result of an investigation by the Federal Bureau of Investigation GRIT Task Force.This case is being prosecuted by Assistant United States Attorney Dean Lanter.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Brian Cerrillos, 50, of, East Chicago, Indiana, was sentenced by Senior District Judge James Moody to time served, 2 years of supervised release and restitution of $10,000.00 to Dean Foods after pleading guilty to the felony offense of conspiracy to transport stolen goods that had a value in excess of $5,000.00.According to documents filed in this case, in August of 2011, Cerrillos and his brother, Anthony Cerrillos, stole a refrigerated milk trailer from a dairy distributor in Hammond, Indiana. They then traveled to Illinois and sold the milk at different convenience stores for a profit. This case was the result of an investigation by the Federal Bureau of Investigation and the Hammond Police Department.This case was prosecuted by Assistant United States Attorney Diane Berkowitz.
Jimmie Woods, 71, of Gary, Indiana, was sentenced by Chief Judge Philip Simon to 50 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of possession with the intent to distribute heroin.According to documents filed in this case, Woods was a major supplier of heroin in Gary.After a controlled purchase of heroin from Woods was arranged, law enforcement performed a traffic stop on Woods, who was arrested.Heroin was recovered from Woods’ person.A state search warrant was executed on Wood’s residence which resulted in the recovery of 125 envelopes containing heroin and a firearm.Woods has been in federal custody since September 2009 and will be given credit for time served. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Indiana State Police.This case was prosecuted by Assistant United States Attorney Dean Lanter.
Julius Solis, 24, of East Chicago, Indiana, a defendant in the case US v Briseno et al., was sentenced by Chief Judge Philip Simon to 192 months of imprisonment after pleading guilty to the felony offense of conspiracy to commit racketeering activity and use of a firearm during a federal crime of violence and drug trafficking crime.Solis is a member of the Imperial Gangsters, a Chicago-based gang, with factions around the country, including Northwest Indiana and Florida.According to documents filed in this case, Solis also admitted that he was responsible for the voluntary manslaughter of one individual. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the East Chicago Police Department, and the Federal Bureau of Investigation, with assistance from the Gary Police Department, the Hammond Police Department and the Lake County HIDTA. This case was prosecuted by Assistant United States Attorney David Nozick.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS:
Robert Hendry, 23, of Fort Wayne, Indiana was sentenced by District Judge Theresa L. Springmann to serve 60 months imprisonment with 3 years supervised release after pleading guilty to the felony offense of knowingly carrying a firearm during and in relation to a drug trafficking crime.According to documents filed in this case, Hendry was arrested and admitted to selling methamphetamine and dealing drugs while being armed with a firearm. Hendry also admitted to falsely purchasing a handgun for a convicted felon.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Anthony Geller.
Trey Jackson, 35, of Fort Wayne, Indiana was sentenced by District Judge Theresa L. Springmann to 51 imprisonment months with 2 years supervised release for one count and 84 months imprisonment with 2 years supervised release to be served consecutive with the first count’s sentence after pleading guilty to the felony offense of armed bank robbery and brandishing and using a firearm during and in relation to a crime of violence.According to documents filed in this case, in April 2013, Jackson committed an armed bank robbery primarily with the help of an accomplice.This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Anthony Geller.
Shawn Hagler, 35, of Fort Wayne, Indiana was sentenced by District Judge Theresa L. Springmann to serve 46 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of armed bank robbery.According to documents filed in this case, in August 2000, two men entered the National City Bank in Woodburn, Indiana and attempted to obtain money from the vault.The robber at the vault was unable to get any money out of the vault, eventually fled and was subsequently arrested.This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
Scott Shell, 36, of Fort Wayne, Indiana was sentenced by District Judge Theresa L. Springmann to 70 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of being a convicted felon in possession of a firearm.According to documents filed in this case, in July 2012, officers with the Fort Wayne Police Department executed a state drug search warrant at Shell’s residence located in Fort Wayne, Indiana. The police recovered various items at the defendant’s residence including a Hi-Point 9mm loaded firearm, three clear plastic baggies which contained 57.0 grams of marijuana and cash.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Lovita Morris-King.
Gelacio Martinez, 36, of Sturgis, Michigan was sentenced by District Judge Theresa L. Springmann to 15 months imprisonment after pleading guilty to the felony offense of using a communication facility to facilitate a conspiracy to distribute and possess with the intent to distribute a controlled substance.According to documents filed in this case, Martinez was involved in a large scale narcotics distribution conspiracy revealed between July 2011 and February 2013.This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
Wagner Group Indicted for Distribution of MethamphetamineRead the Press Release
United States Attorney Brendan V. Johnson announced that three individuals from Wagner, South Dakota, have been indicted by a federal grand jury for Conspiracy to Distribute Methamphetamine and Maintaining a Drug-Involved Premises.
Jeffrey Louis Irving, 38, and Maria Corina Standing Cloud, 36, were indicted on both counts on December 3, 2013. They appeared before the Honorable John E. Simko on December 18, 2013, and pled not guilty to the Indictment. Brandy Angela Waetermans, 31, was indicted for Conspiracy to Distribute Methamphetamine. She appeared before the Honorable John E. Simko on December 18, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction of Conspiracy to Distribute Methamphetamine is up to 20 years in custody and/or a $1 million fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered. The maximum penalty upon conviction of Maintaining a Drug-Involved Premises is up to 20 years in custody and/or a $500,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges are merely an accusation and all defendants are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation, South Dakota Division of Criminal Investigation, Bureau of Indian Affairs and Charles Mix County Sheriff’s Office. Special Assistant U.S. Attorney Jennifer D. Mammenga is prosecuting the case.
Standing Cloud and Waetermans were released on bond and Irving was remanded to the custody of the U.S. Marshals Service pending trial. Trial has been set to commence on Tuesday, February 25, 2014.
Unlicensed Miami Clinic Nurse Convicted at Trial and Sentenced for Role in $11 Million HIV Infusion Fraud SchemeRead the Press Release
An unlicensed nurse who fled after being charged in 2008 and was captured this year was sentenced today to serve 108 months in prison for her role in a fraud scheme that resulted in more than $11 million in fraudulent claims to Medicare.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Carmen Gonzalez, 39, of Cape Coral, Fla., worked at St. Jude Rehabilitation Center, a fraudulent HIV infusion clinic in Miami, that was controlled by her cousins, Jose, Carlos and Luis Benitez, aka the Benitez Brothers. Gonzalez was also sentenced for failing to appear at a June 2008 bond hearing. The sentencing follows her conviction at trial to one count of conspiracy to defraud the United States to cause the submission of false claims and to pay health care kickbacks and one count of conspiracy to commit health care fraud. Gonzalez had previously pleaded guilty to a separate charge of failure to appear.
Gonzalez was sentenced by Chief United States District Judge Federico A. Moreno in Miami, who also sentenced her to serve three years of supervised release.
Evidence at trial revealed that Gonzalez was an unlicensed nurse who paid thousands of dollars over a five month period to HIV beneficiaries so that St. Jude could submit millions of dollars in false and fraudulent claims to Medicare. Gonzalez knew that St. Jude billed millions of dollars to Medicare for expensive HIV infusion therapy that was neither medically necessary nor provided. Gonzalez fabricated patient medical records to facilitate and conceal the fraud, and these fabricated records were utilized to support the false and fraudulent claims submitted to Medicare on behalf of St. Jude.
On Oct. 17, 2013, Gonzalez pleaded guilty to knowingly and willfully failing to appear at a June 2008 hearing as directed by Judge Moreno. Court documents reveal that Gonzalez was released on bond pending trial, but she knowingly and willfully failed to appear as directed by the court to a June 2008 hearing.
In January 2013, Gonzalez’s father, Enrique Gonzalez, was sentenced to 70 months in prison by U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida for his role in separate health care fraud conspiracy.
The Benitez Brothers remain fugitives. Anyone with information regarding their whereabouts is urged to contact HHS-OIG at 202-619-0088.
The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division's Fraud Section and the U.S. Attorney's Office for the Southern District of Florida. This case was prosecuted by Trial Attorneys Allan Medina and Nathan Dimock of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.govUnlicensed Miami Clinic Nurse Convicted at Trial and Sentenced for Role in $11 Million HIV Infusion Fraud SchemeRead the Press Release
An unlicensed nurse who fled after being charged in 2008 and was captured this year was sentenced today to serve 108 months in prison for her role in a fraud scheme that resulted in more than $11 million in fraudulent claims to Medicare.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Carmen Gonzalez, 39, of Cape Coral, Fla., worked at St. Jude Rehabilitation Center, a fraudulent HIV infusion clinic in Miami that was controlled by her cousins, Jose, Carlos and Luis Benitez, aka the Benitez Brothers. Gonzalez was also sentenced for failing to appear at a June 2008 bond hearing. The sentencing follows her conviction at trial to one count of conspiracy to defraud the United States to cause the submission of false claims and to pay health care kickbacks and one count of conspiracy to commit health care fraud. Gonzalez had previously pleaded guilty to a separate charge of failure to appear.
Gonzalez was sentenced by Chief United States District Judge Federico A. Moreno in Miami, who also sentenced her to serve three years of supervised release.
Evidence at trial revealed that Gonzalez was an unlicensed nurse who paid thousands of dollars over a five month period to HIV beneficiaries so that St. Jude could submit millions of dollars in false and fraudulent claims to Medicare. Gonzalez knew that St. Jude billed millions of dollars to Medicare for expensive HIV infusion therapy that was neither medically necessary nor provided. Gonzalez fabricated patient medical records to facilitate and conceal the fraud, and these fabricated records were utilized to support the false and fraudulent claims submitted to Medicare on behalf of St. Jude.
On Oct. 17, 2013, Gonzalez pleaded guilty to knowingly and willfully failing to appear at a June 2008 hearing as directed by Judge Moreno. Court documents reveal that Gonzalez was released on bond pending trial, but she knowingly and willfully failed to appear as directed by the court to a June 2008 hearing.
In January 2013, Gonzalez’s father, Enrique Gonzalez, was sentenced to 70 months in prison by U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida for his role in separate health care fraud conspiracy.
The Benitez Brothers remain fugitives. Anyone with information regarding their whereabouts is urged to contact HHS-OIG at 202-619-0088.
The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division's Fraud Section and the U.S. Attorney's Office for the Southern District of Florida. This case was prosecuted by Trial Attorneys Allan Medina and Nathan Dimock of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
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.
United States of America v. City of Portland, Case No. 3:12-cv-2265 Notice of Fairness HearingRead the Press Release
Tuesday, February 18, 2014, 9:00 a.m., Courtroom 13BOverview of the Case
The U.S. Department of Justice has found reasonable cause to believe that the Portland Police Bureau has an unconstitutional “pattern or practice” of using excessive force against persons with actual or perceived mental illness. Based on that finding, the U.S. sued the City of Portland. The City of Portland reached a proposed Settlement Agreement with the U.S. to remedy the identified problems. The Settlement Agreement has been considered and deemed fair and reasonable by the Portland Police Association. The Albina Ministerial Alliance Coalition for Justice and Police Reform does not object to the acceptance of the Settlement Agreement by the Court and has agreed to advocate for the implementation of the Settlement Agreement reforms that the AMA Coalition supports. The Court will hold a Fairness Hearing to decide whether the proposed Settlement Agreement is fair, reasonable, and adequate. The Fairness Hearing will be held on Tuesday, February 18, 2014, beginning at 9:00 a.m., in Courtroom 13B. The Fairness Hearing will be open to the public.
The Complaint in this case, the proposed Settlement Agreement, the Court’s Order setting the Fairness Hearing and its governing procedures, and the Testimony Form for persons wanting to submit oral or written testimony regarding the Settlement Agreement are available free of charge at the District Court’s Civil Intake Counter and at http://ord.uscourts.gov/fh.
Procedures Before the Fairness Hearing
The Court invites members of the public to testify, in writing or orally, on the following topics:
Is the Agreement fair to everyone affected?
Is the Agreement reasonable?
Is the Agreement adequate to solve the problems identified in the Complaint?To do so, persons are encouraged to submit the Testimony Form or a similar written submission no later than January 31, 2014. Submissions may be made to the Clerk of the Court in person or via first class mail, or via email to [email protected]. If anyone is unable to attend the scheduled hearing and wishes to provide oral testimony, he or she may do so by video and submit a DVD. Submissions will be retained by the Court until the close of the case, but will not be part of the public record unless the Court orders otherwise.
Procedures at the February 18, 2014 Fairness Hearing
Upon arrival at the Courthouse, members of the public will sign-in at Courtroom 13B. Those who previously provided a written submission requesting oral testimony will be given priority. Those who did not provide advance notice of their intent to testify may testify, at the Court’s discretion and if time permits. The Court will determine the order of the individuals providing testimony. Each member of the public will be provided five (5) minutes to testify. Organizations will be limited to presenting three (3) representatives and each representative will have ten (10) minutes to testify. The Court may extend time for testimony for good cause. Only testimony that is relevant, as determined by the Court, will be allowed at the hearing.The Testimony Form can be found Here
United States Attorney for Southern District of Illinois Announces Civil and Criminal Collections in Excess of $8 Million for Fiscal Year 2013Read the Press Release
“My Office Will Continue to Make Crime Pay for the Taxpayers of Southern Illinois”
United States Attorney Stephen R. Wigginton announced today that the Southern District of Illinois collected $8,312,506.02 in criminal and civil actions in Fiscal Year 2013. Of this amount, $2,081,807.45 was collected in criminal actions and $6,230,698.57 was collected in civil actions. This combined figure is well in excess of the total yearly operating budget for the Office of the United States Attorney for the Southern District of Illinois.
Additionally, the Southern District of Illinois worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $341,763,972.25 in cases pursued jointly with these offices. Of this amount, $1,072.23 was collected in criminal actions and $341,762,900.02 was collected in civil actions.
“I will continue to make crime pay for the taxpayers of Southern Illinois. Not only does my office prosecute large numbers of criminals, it actually pays for itself and makes money for all of Southern Illinois. This is why Congress must not allow sequestration cuts to bluntly thwart not only our criminal prosecutions, but the business of making criminals pay back the taxpayers. As these figures show, allowing us to do our work is a sound investment for the taxpayers.” said United States Attorney Wigginton.
As an example, United States Attorney Wigginton pointed out that in January 2013, the Southern District of Illinois recovered $4,250,000.00 as part of the settlement in the American President Lines (APL) matter. In this instance it was alleged that APL billed the United States for, and the United States paid for, various costs associated with the transport and shipment of Army & Air Force Exchange Service and Defense Logistics Agency cargo containers from the United States to military outposts in Afghanistan, when APL’s conduct with respect to certain shipments did not comply with the terms of the contract.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in the Southern District of Illinois, working with partner agencies and divisions, collected $689,598.00 in asset forfeiture actions in FY 2013. Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney’s Office for the Eastern District of North Carolina Collects $17,584,288.83 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
RALEIGH - U.S. Attorney Thomas G. Walker announced today that the Eastern District of North Carolina collected $17,584,288.83 in criminal and civil actions in Fiscal Year 2013. The Office collected $2.5 million more than the total amount appropriated to run the entire office for the fiscal year.
Additionally, the Eastern District of North Carolina worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $8,103,269.75 in cases pursued jointly with these offices. Of this amount, $10,182.59 was collected in criminal actions and $8,093,087.16 was collected in civil actions.
“Collections of debts owed to the United States and to crime victims is a top priority of our office,” stated Mr. Walker. “In these tight budgetary times for our nation, we will continue our effective collection efforts on behalf of the United States and the victims of crimes.”
During the past fiscal year the Eastern District of North Carolina has recovered $772,658.21 in restitution and fines owed in federal crop insurance fraud and investment fraud cases. The office also recovered a total of $739,732.75 in the Freedman Farms case, of which a portion of the money collected was used for the protection and restoration of wetlands in our State. In addition, the Wake Med Medicare case resulted in a civil fraud restitution collection of $8 million in fiscal year 2013.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office for the Eastern District of North Carolina, working with Justice & Treasury Department partner agencies and divisions, collected $3,637,575 in asset forfeiture actions in FY 2013. Forfeited assets are deposited into the Department of Justice and Department of the Treasury Asset Forfeiture Funds and are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney's Office Joins with Others in Releasing Heroin Community Action PlanRead the Press Release
The Heroin Epidemic -- Our Community’s Action Plan
Summary
On Nov. 21, 2013, many of Northern Ohio’s leading institutions gathered for a daylong summit in an effort to find solutions to the region’s heroin epidemic. A Community Action Plan was formulated over the course of several planning meetings and finalized during the summit. The purpose of this document is to serve as a guiding master plan as we move forward as a community. The Action Plan is divided into four specific areas: Prevention and Education, Healthcare Policy, Law Enforcement and Treatment. Inevitably, there is some overlap among each of these areas.
A few disclaimers: this document is a working draft and not written in stone. Some of these items are immediately actionable while others will take more time, research and effort. Some of these items have unanimous support among the planners, others do not. Although certain action items cannot be implemented without new legislation, some of the partnering agencies are forbidden from taking a position on pending or potential legislation. The hope is that this Action Plan will serve as a road map and tie together our various efforts toward the same goals – preventing people from using heroin, helping treat those who have become addicted, choking off both the supply of and demand for heroin in Northern Ohio, and working collaboratively to make our region healthier, safer and stronger.
This action plan was developed based upon input from the representatives of the following agencies and organizations: the United States Attorney’s Office, the Cleveland Clinic, the Cuyahoga County Executive, MetroHealth Medical Center, University Hospitals, Cuyahoga County Common Pleas Court, the Ohio Attorney General, the Cleveland Division of Police, the Drug Enforcement Administration, the Federal Bureau of Investigation, the Ohio State Medical Board, the Ohio State Pharmacy Board, the Cuyahoga County Board of Health, the Cuyahoga County Medical Examiner, the Cuyahoga County Sheriff’s Department, the ADAMHS Board., the Westshore Enforcement Bureau and others.
PREVENTION AND EDUCATION
I. EDUCATING CITIZENS ON THE DANGERS OF HEROIN USE
- Prevalence of the heroin problem.
- Establish a community education plan that highlights the dangers and warning signs of heroin use and overdose death; treatment options; and support groups, resources and prevention opportunities.
- Produce materials to distribute to local school boards, PTA/O meetings, places of worship, community centers and local colleges.
- Initiate a dialogue with the Greater Cleveland Partnership and Downtown Cleveland Alliance to raise awareness of the prevalence of prescription drug and heroin abuse.
- Engage instructors who train health, social service and education professionals.
- Utilize social media to provide information about the epidemic, stressing the connection between prescription pills and heroin.
- Incorporate education specifically on heroin and prescription pill abuse into high school/ middle school health class curriculum.
- Target local school boards, principals, PTA/Os, nurses, psychologists, counselors, social workers, resource officers and DARE officers.
- Review programs to ensure education curriculum is based on the National Health Education Standards and CDC’s Characteristics of Effective Health Education.
- Town Hall meetings/community forums in different municipalities.
- Continue the work started by Judge Astrab to convene community meetings.
- Educating the public about the dangers of prescription drugs.
- Collaborate with pharmacies to inform customers of proper prescription drug disposal.
- Meet with officials from Wal-Mart, Target and other retail chains that offer pharmacy services.
- Distribute Prescriber’s Toolkit.
- Work with other groups that frequently confront prescription drugs, including embalmers, hospice providers and other local businesses.
- Establish prescription drop boxes in all of Cuyahoga County’s municipalities.
- Expand drug drop-box outreach beyond Cuyahoga County.
II. PRIORITZE HEROIN OVERDOSE AS A PUBLIC HEALTH THREAT
- Conduct pilot prevention programs in high-risk areas.
- Identify high-risk areas and develop intensive plan targeting those areas.
- Establish community task force to take the lead on implementation.
HEALTHCARE POLICY
I. LEGISLATION
- Immediately actionable:
- Advocate for passage of HB 170 (Naloxone distribution to first responders) by early 2014.
- Advocate for passage of HB 92 (syringe exchange legislation) by early 2014.
- Advocate for drafting and passage of Good Samaritan Law (no harm/liability for reporting overdoses) by early 2014.
- Requires additional discussion and action:
- Advocate for the drafting and passage of a bill requiring OARRS utilization be mandatory for prescribing controlled substances such as opiates/opioids; and prescriber(s) and pharmacist(s) are electronically notified whenever any of the following occurs:
- Controlled substance filled twice in five days.
- Benzodiazepines + opioids prescribed to the same patient.
- Benzodiazepines + amphetamines prescribed to the same patient.
- Opioid doses > 100 Morphine Equivalent Dose (MED).
II. EDUCATION
- Requires additional discussion and action:
- Promote mandatory medical student education to include additional training requirements on pain management and opiate use.
- Establish some mandatory requirement for adding continuing medical education on opiate use over a three-year period and/or prior to renewal of DEA registration; and/or online provider education course.
III. FUNDING
- Requires additional discussion and action:
- Provide for the statewide expansion of OARRS, which will require funding legislation, some of which is already underway.
- Provide for the cost of and training for Naloxone distribution for first responders.
IV. POLICY
- Immediately actionable:
- Enforce compliance of present standards for Admin Rule 4731.21 and advocate that they be updated and revised to include:
- 100 MED limit; special form explaining need to exceed 100 MED; sent to pharmacy and renewed every six months.
- Mandatory OARRS review every three months.
- Compliance checklist, renewed every six months, for opiate preauthorization filled out and sent to pharmacy.
- Adopt uniform chronic benign pain management guidelines, especially for Emergency Departments, thus strengthening the Ohio Opioids and Other Controlled Substances guidelines to include:
- Acute pain prescriptions only in 10-day increments.
- Photo ID requirement.
- Underage parental consent for opiate/opioid treatment of pain.
- Special license or permit for pain management clinics.
- Requires additional discussion and action:
- Commitment to increased local treatment capacity.
- Additional drug courts and more coordination with treatment.
- Enforcement of parity rules for treatment providing for:
- Partial hospitalization.
- Detoxification.
- Intensive outpatient.
IV. DATA AND INFORMATION
- Immediately actionable:
- Coordinate data sharing, especially between the Attorney General, State Medical Board and State Pharmacy Board, to allow freer exchange of de-identified data in an effort to show trends and better direct community and law enforcement responses.
- Improve and refine data gathering and coding to better track opiate/opioid dependence and overdoses (as opposed to general overdoses); centralized statewide data collection to track heroin deaths, treatment and Emergency Department visits.
- Promote uniformity of practice through State Coroners Association and State of Ohio to identify heroin deaths specifically where possible, as well as deaths caused by other opiate/opioids.
- Promote greater and sustained coordinated efforts between government, medical, treatment, and law enforcement communities to utilize data to combat the heroin crisis.
LAW ENFORCEMENT
I. HEROIN TRAFFICKING/INTERDICTION/DIVERSION
- Federal/State law enforcement will continue to use all assets to prosecute heroin dealing organizations in the Northern Ohio area.
- For heroin users, law enforcement will continue to work with the courts to seek diversion and treatment as an alternative to incarceration. The courts will be encouraged to extend any monitoring period or supervision of heroin users to keep them accountable. Law enforcement also will explore options to provide information to heroin users for immediate treatment options and resources. Drug abuse charges will be used to focus attention on an individual’s addiction and recognize a developing problem for both the addict and his/her family.
- For heroin traffickers, sentences should be significant for both deterrence and punishment. Certain drug traffickers may qualify for significant, enhanced sentences in federal court.
- Case targets and intelligence will continue to be discussed among involved law enforcement agencies to avoid conflicts and duplication of efforts.
- Law enforcement will continue to encourage community involvement in addressing the heroin epidemic. Involvement begins with educating the community regarding the heroin problem and identifying how individuals and organizations can assist law enforcement.
- Educate law enforcement partners regarding federal forfeiture in drug trafficking cases for equitable sharing purposes and return of money to localities to assist law enforcement in addressing this problem.
II. HEROIN DEATH INVESTIGATION
- The Heroin Involved Death Investigation initiative is being deployed in Cuyahoga County in response to the high number of deaths. Other localities are encouraged to develop similar initiatives.
- The Cuyahoga County Sheriff, Prosecutor and Medical Examiner, the Cleveland Division of Police and the United States Attorney’s Office will continue to work together on heroin overdose death investigations.
- The goal will remain to prosecute, where appropriate, responsible heroin traffickers for manslaughter in state court or to seek mandatory minimum sentences based on a death enhancement at the federal level.
- Components and protocol for the Heroin Involved Death Investigation are as follows:
- A suspected heroin death is encountered by the Medical Examiner investigator related to the City of Cleveland.
- The Medical Examiner investigator puts out a notification to the Cleveland Police investigators deployed to this initiative.
- The Cleveland Police or Cuyahoga County Sheriff’s Office investigators respond immediately and begin an investigation into the source of the heroin. This involves interviews at the death scene which could be a residence, hospital, etc. Investigators will focus on information gathering first as opposed to immediate arrests of witnesses and participants.
- Cleveland Police or Sheriff’s Office investigators will recover crucial evidence for immediate review by CPD technicians.
- Cleveland or Sheriff’s Office investigators will work back to the dealer with various techniques including confidential informant and direct drug buys that will support technical evidence and interview statements.
- Cleveland Police or Sheriff’s Office investigators will work in both County and federal court on prosecutions related to Manslaughter and other charges.
- The Cuyahoga County Sheriff’s Office will continue running a parallel initiative handling the suburban heroin overdose deaths. The Cleveland Police and Sheriff’s Office teams will work together on their cases sharing information, personnel and other assets. Cuyahoga County Supervising Prosecutor Deborah Naiman will guide the investigations.
- Medical Examiner Administrator Hugh Shannon has initiated the Heroin Alert notification component.
TREATMENT
I. TRAINING IN SCREENING AND BRIEF INTERVENTION
- Train clinicians in SBIRT (Screening, Brief Intervention and Referral to Treatment) so they can recognize the disease of addiction/substance use disorder.
- Train clinicians in Motivational Interviewing so they can respond effectively to clients who are not-yet-ready to change behavior.
II. INCREASE THE VISIBILITY OF HB 93 AND THE 80 MD MED GUIDELINES
- Work with State Medical Board, Governor’s office, and other stakeholders to disseminate and enforce these laws and to encourage wider adoption of the guidelines.
III. INCREASE THE USE OF OARRS (OHIO AUTOMATED Rx REPORTING SYSTEM)
- Increase the use of OARRS by all physicians and pharmacies.
- Integrate OARRS into the Electronic Health Record of all local healthcare systems.
IV. INCREASE ACCESS TO MEDICATION-ASSISTED TREATMENT (MAT)
- Create a model for MAT that assists the community toward a combination of MAT, treatment, and 12-step programs.
- Increase public and private funding for treatment slots in the following settings:
- Detoxification.
- Suboxone clinics.
- Methadone clinics.
- Intensive outpatient treatment.
- Residential treatment.
- Sober housing.
V. CREATE A STRATEGY FOR WORKFORCE DEVELOPMENT- Increase the number of addiction psychiatrists and addiction medicine doctors working in treatment agencies.
- Educate the treatment community about MAT to increase support for its use.
VI. ADVOCATE FOR PARITY IN INSURANCE COVERAGE
- Work with public and private insurance companies to gain true parity for addiction treatment.
- Work with Medicaid to turn on the SBIRT codes in Ohio.
VII. BALANCE OF COMPETING PRIORITIES: CHRONIC PAIN
- Bring together pain doctors and addiction doctors to implement best practices in the area of pain management and addiction.
- Integrate OARRS into the Electronic Health Record of all local healthcare systems.
VIII. BALANCE OF COMPETING PRIORITIES: PATIENT SATISFACTION SCORES
- Work with hospital quality committees to make modifications in the use of patient satisfaction scores when it comes to patients with addiction.
Two Individuals Indicted for Importation of Approximately 1,500 Kilograms of CocaineRead the Press Release
SAN JUAN, Puerto Rico – On December 18, a federal grand jury in the District of Puerto Rico returned an indictment against two defendants charged with conspiracy to possess and possession with intent to distribute controlled substances, and conspiracy to import and importation of controlled substances, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico and Vito Salvatore Guarino, Special Agent in Charge of the Drug Enforcement Administration (DEA), Caribbean Division.
On December 5, 2013, in the early morning hours, PRPD officers from the Fuerza Unida de Ràpida Acción Unit (FURA) detected a suspicious vessel traveling inbound towards the South East area of Puerto Rico, specifically in the area of Patillas, PR, without navigation lights. The vessel was a 33 feet long “Eduardoño.” The vessel contained 54 bales of cocaine, with a gross weight of approximately 1,500 kilograms. Food products from Venezuela were also located inside the vessel, alongside various electronic communication devices including a satellite telephone, cellular telephones and GPS devices. The defendants and the evidence were turned over to the DEA which initiated a joint investigation with the FBI.
On December 6, 2013 a criminal complaint authorized by US Magistrate Judge Silvia Careño-Coll charged Cepeda-Guzmàn and Acevedo-Suero with violations to the U.S. Controlled Substances Act and ordered their temporary detention pending trial. Today the defendants appeared before US District Judge José A. Fusté for the bail hearing and were detained pending trial.
The investigation is being conducted jointly by the Drug Enforcement Administration and the Federal Bureau of Investigation, with the collaboration of Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), Customs and Border Protection (CBP), US Coast Guard and the Puerto Rico Police Department (PRPD).
The case is being prosecuted by Assistant U.S. Attorney Elba Gorbea. If convicted, the defendants could face from 10 years up to life in prison.Towaoc Man Sentenced to Federal Prison for Failure to Register as A Sex OffenderRead the Press Release
DENVER – Glen Earl Cotonuts, age 54, of Towaoc, Colorado, was sentenced recently by U.S. District Court Judge Christine M. Arguello to serve 20 months in federal prison for failure to register as a sex offender, U.S. Attorney John Walsh and U.S. Marshal John L. Kammerzell announced. Following his prison sentence, Judge Arguello ordered Cotonuts to spend 5 years on supervised release. The defendant appeared at the sentencing hearing in custody, and was remanded at its conclusion.
Cotonuts was indicted by a federal grand jury on October 1, 2012. On September 30th, 2013 a jury trial in Denver commenced. That trial concluded on October 3, 2013 with a unanimous guilty verdict. The defendant was sentenced on December 16, 2013.
According to court documents, and evidence presented during trial, beginning on June 22, 2012, and continuing until August 15, 2012, Cotonuts was required to register under the Sex Offender Registration and Notification Act, as he was a sex offender by reason of conviction under Federal Law. Despite knowing that he had to register, Cotonuts failed to register and update his registration while living on the Ute Mountain Ute reservation as required by law.
“For the safety of the public, sex offenders are required by law to register with law enforcement,” said U.S. Attorney John Walsh. “When a sex offender changes addresses and fails to register there are serious consequences – including going to prison.”
“This investigation and its successful outcome is yet another example of the resolve of the U.S. Marshals Service towards bringing unregistered sex-offenders to justice,” said U.S. Marshal John Kammerzell. “Once again I am extremely proud of the work of my deputy marshals and that of our close partners at the U.S. Attorney’s Office.”
This case was investigated by the U.S. Marshals Service.
Cotonuts was prosecuted by Durango Branch Office Chief Assistant U.S. Attorney James Candelaria.
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Three Oshkosh Men Charged with conspiracy to Distribute HeroinRead the Press Release
United States Attorney James L. Santelle of the Eastern District of Wisconsin announced an indictment against Sherman M. Threets (age: 29), Lamarcus J. Cargill (age: 26), and Dustin J. Burdick (age: 23) all of Oshkosh, Wisconsin, for conspiracy to distribute over 100 grams of heroin in violation Title 21 United States Code, Sections 841(a)(1), (b)(1)(B), and Title 18 United States Code, Section 2.
The indictment alleges that this occurred in the Lake Winnebago area. If convicted the defendants face a sentence of between 5 and 40 years imprisonment, a maximum fine of $5,000,000, a $100 special assessment, and a 4 year to life term of supervised release.
This case was investigated by the Lake Winnebago Area Metropolitan Enforcement Group. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove them guilty beyond a reasonable doubt.
Tennessee Man Pleads Guilty to Federal Hate Crime for Cross BurningRead the Press Release
Timothy Stafford, 41, pleaded guilty today in federal court in Nashville, Tenn., for his role in the April 30, 2012, cross burning in front of an interracial family’s home in Minor Hill, Tenn., the Department of Justice announced.Stafford pleaded guilty to conspiring with others to threaten, intimidate and interfere with an interracial couple’s enjoyment of their housing rights. Stafford admitted in court that on the night of April 30, 2012, he and two other individuals devised a plan to burn a cross in the yard of an interracial couple in Minor Hill, Tenn.. Stafford constructed a wooden cross in a workshop behind his house. Stafford and his co-conspirators then purchased diesel fuel and covered the cross in diesel fuel-soaked cloth. Stafford then drove his conspirators and the cross to the victims’ residence. Upon arriving at the residence, the other conspirators placed the cross in the driveway and ignited it. Stafford and the conspirators chose to burn the cross at the victims’ house, because of their race, as well as the race of their child. Stafford admitted to targeting the interracial couple because he did not want interracial dating in his community.
Ivan “Rusty” London IV, 21, of Lexington, Ky., previously pleaded guilty for his role in the conspiracy, and is currently awaiting sentencing.
“Hate motivated crimes will not be tolerated in our country,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “The Justice Department will vigorously prosecute individuals that violate the rights of others because of race.”
“The right to live in a community of your choosing, free of acts of intimidation that are meant to inspire fear, is a fundamental right in the United States,” said David Rivera, U.S. Attorney for the Middle District of Tennessee. “The Department of Justice takes these transgressions very seriously and to the extent that individuals interfere with fundamental civil rights, they will be prosecuted to the full extent of the law.”
Timothy Stafford faces a statutory maximum of 10 years in prison. Ivan London faces a statutory maximum of 5 years in prison.
This case was investigated by the Columbia, Tenn., Division of the FBI and is being prosecuted by Assistant U.S. Attorney Blanche Cook of the Middle District of Tennessee and Trial Attorney Jared Fishman of the Civil Rights Division.
Tennessee Man Pleads Guilty to Federal Hate Crime for Cross BurningRead the Press Release
Timothy Stafford, 41, pleaded guilty today in federal court in Nashville, Tenn., for his role in the April 30, 2012, cross burning in front of an interracial family’s home in Minor Hill, Tenn., the Department of Justice announced.
Stafford pleaded guilty to conspiring with others to threaten, intimidate and interfere with an interracial couple’s enjoyment of their housing rights. Stafford admitted in court that on the night of April 30, 2012, he and two other individuals devised a plan to burn a cross in the yard of an interracial couple in Minor Hill, Tenn.. Stafford constructed a wooden cross in a workshop behind his house. Stafford and his co-conspirators then purchased diesel fuel and covered the cross in diesel fuel-soaked cloth. Stafford then drove his conspirators and the cross to the victims’ residence. Upon arriving at the residence, the other conspirators placed the cross in the driveway and ignited it. Stafford and the conspirators chose to burn the cross at the victims’ house, because of their race, as well as the race of their child. Stafford admitted to targeting the interracial couple because he did not want interracial dating in his community.
Ivan “Rusty” London IV, 21, of Lexington, Ky., previously pleaded guilty for his role in the conspiracy, and is currently awaiting sentencing.
“Hate motivated crimes will not be tolerated in our country,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “The Justice Department will vigorously prosecute individuals that violate the rights of others because of race.”
“The right to live in a community of your choosing, free of acts of intimidation that are meant to inspire fear, is a fundamental right in the United States,” said David Rivera, U.S. Attorney for the Middle District of Tennessee. “The Department of Justice takes these transgressions very seriously and to the extent that individuals interfere with fundamental civil rights, they will be prosecuted to the full extent of the law.”
Timothy Stafford faces a statutory maximum of 10 years in prison. Ivan London faces a statutory maximum of 5 years in prison.
This case was investigated by the Columbia, Tenn., Division of the FBI and is being prosecuted by Assistant U.S. Attorney Blanche Cook of the Middle District of Tennessee and Trial Attorney Jared Fishman of the Civil Rights Division.Sem City Gang Members Charged with Racketeering Conspiracy, Attempted Murder, Assault with A Deadly Weapon, and MaimingRead the Press Release
OAKLAND - A nine-count federal indictment charging four members of the Sem City gang was returned by the Grand Jury yesterday and unsealed today in federal court, announced United States Attorney Melinda Haag.
All four defendants, listed below, are in state custody and will be transferred into federal custody:
- PURVIS LAMAR ELLIS, A/K/A “BOT,”
- DEANTE TERRANCE KINCAID, a/k/a “Tay-Tay,”
- DAMIEN EDWARD MCDANIEL, a/k/a “Famous,” “Lil’ Dame,” and
- JOSEPH PENNYMON, a/k/a “Junkie.”
All four defendants, Oakland residents, are charged with a racketeering conspiracy, attempted murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering, maiming in aid of racketeering, and discharge of a firearm in furtherance of those crimes of violence. Three of the four defendants are also charged with a second count of assault with a dangerous weapon in aid of racketeering and discharge of a firearm in furtherance of the same. Each defendant faces a maximum term of imprisonment of life.
According to the Indictment, Sem City is a violent street gang based in the Seminary neighborhood of East Oakland. Members of Sem City engaged in criminal activity, including attempted murder, assault, robbery, narcotics distribution, pimping of minors, illegal firearms possession, and credit card fraud. Additionally, members of Sem City are expected to engage in acts of violence to protect the name, reputation, and status of the gang.
The prosecution is the result of an investigation by the Federal Bureau of Investigation, Oakland Police Department, and Alameda County District Attorney’s Office.
Please note, an indictment contains only allegations against an individual and, as with all defendants, Purvis Lamar Ellis, Deante Terrance Kincaid, Damien Edward McDaniel, and Joseph Pennymon must be presumed innocent unless and until proven guilty.
(Sem City indictment )
Sacramento Resident Sentenced for Role in Tax SchemeRead the Press Release
SAN FRANCISCO – Cynrithia Gary was sentenced on December 18, 2013, to 18 months in prison and ordered to pay restitution of $180,452 for conspiring to file false tax returns, United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez announced.
According to the plea agreement, beginning in June 2008, Gary helped obtain tax refunds based on false tax returns that were filed with the IRS. As part of the scheme, Gary recruited others to provide their personal identifying information for use on the false tax returns. Gary knew the returns were false because the person whose name appeared on the tax returns did not supply the information used to support the refund.
On the false tax returns, Gary listed bank accounts that were used to receive the fraudulent tax refunds. When the fraudulent tax refund was issued, the money would be withdrawn by the account holder, who would split the proceeds with Gary.
Gary 41, of Sacramento, was indicted on July 12, 2012. She was charged with one count of conspiracy to file false claims and pleaded guilty to the charge.
Gary also pleaded guilty to filing a false 2007 tax return in her own name on August 7, 2008. Gary admitted the return was false because it indicated that she received Social Security benefits in an amount that she knew was inflated. The return also falsely stated that she had Form 1099 withholdings and that she was employed as a childcare provider.
The sentence was handed down by the Honorable Charles R. Breyer, United States District Court Judge.
Thomas Newman is the Assistant U.S. Attorney who is prosecuting. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
(Gary indictment )
Ryan Michael Guesford Sentenced to Serve 120 Months in Prison for Conspiring to Distribute OxycodoneRead the Press Release
GREENEVILLE, Tenn. – Ryan Michael Guesford, 40, of Morristown, Tenn., was sentenced on Dec. 19, 2013, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 120 months in federal prison for distributing and conspiring to distribute oxycodone. Upon his release from prison Guesford will be subject to supervised release, under the supervision of the U.S. Probation Office, for three years. There is no parole in the federal system.
Guesford and 11 others were named in an 18-count indictment in October 2012, returned by a federal grand jury sitting in Greeneville, Tenn. The charges in the indictment involved drug trafficking of oxycodone, oxymorphone, and methamphetamine, firearms violations, and money laundering. Guesford was named in two counts of the indictment, which charged a conspiracy to distribute oxycodone and distribution of oxycodone. The charges initiated from a lengthy investigation of 12 individuals who traveled by commercial airlines and automobiles to Florida, Tennessee, and Georgia, to obtain oxycodone and other drugs to distribute throughout eastern Tennessee. The total conspiracy involved over 778,000 milligrams of oxycodone, which is the equivalent of nearly 26,000 dose units of 30 milligram oxycodone.
All 12 individuals charged in the indictment have been convicted and Guesford was the fourth defendant to be sentenced. Gerald Glenn Horner, 36, of Mooresburg, Tenn., was sentenced by Judge Greer on Oct. 21, 2013, to serve 108 months in federal prison. Joey Wayne Vanover, 36, of Tazewell, Tenn., was sentenced by Judge Greer on Oct. 28, 2013, to serve 63 months in federal prison. Kera Leann Greene, 24, of Morristown, Tenn., was sentenced by Judge Greer on Nov. 4, 2013, to a serve nine months in prison plus six months of home detention with electronic monitoring. Gregory Allen Rhea, Johnny Wayne Neeley, Kerry Glenn Nelson, Kimberly Ann Vanover, Ricky Allen “Rooster” Seal, Tamara Michelle Moles, and Ricky Collins are all awaiting sentencing in 2014.
U.S. Attorney Bill Killian commended the law enforcement agencies who were involved in this investigation. “Prescription drugs, including oxycodone, continue to be a major problem in East Tennessee. Powerful narcotics are highly addictive and can lead to criminal activity, as evidenced by the extensive efforts of this drug trafficking organization. Our office will continue to work closely with all law enforcement agencies to cut off the illegal supply lines of oxycodone and other prescription narcotics. We will aggressively prosecute those who traffic prescription drugs and the ‘pill mills’ that supply criminal organizations,” stated Killian.
Agencies involved in this investigation included the Tennessee Bureau of Investigation, Morristown Police Department, and Hawkins County Sheriff’s Department. Assistant U.S. Attorney Suzanne Kerney-Quillen represented the United States.
Ringleader of Multi-Million Dollar Home Equity Line of Credit Fraud Scheme Sentenced to 70 Months in Prison After Years as A FugitiveRead the Press Release
ALEXANDRIA, Va. – Tobechi Enyinna Onwuhara, 34, formerly of Dallas, Texas, was sentenced today to 70 months in prison for conspiracy to commit bank fraud, conspiracy to commit money laundering, and computer fraud, all in relation to a home equity line of credit fraud scheme that attempted to steal more than $38 million and caused approximately $13 million in losses. His prison term will be followed by five years of supervised release.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Kathy A. Michalko, Special Agent in Charge of the United States Secret Service’s Washington Field Office; Earl L. Cook, Alexandria Chief of Police; and Robert Mathieson, United States Marshal for the Eastern District of Virginia, made the announcement after sentencing by United States District Judge Claude M. Hilton.
After more than four years as a fugitive—during which Onwuhara was featured on “America’s Most Wanted”—Onwuhara was arrested in Australia, brought to the United States, and pleaded guiltyon June 21, 2013. According to court documents, Onwuhara was the ringleader of a group of Nigerians who used fee-based web databases to search for potential victim account holders with large balances in home equity line of credit (HELOC) accounts. This information included name, address, date of birth, and social security number. Once the conspirators identified a victim, they used other online databases to obtain information commonly used in security questions, such as the victim’s mother’s maiden name. The conspirators then obtained credit reports on the victims in order to verify personal information and account balances.
Armed with a victim’s personal information, the conspirators called the victim’s financial institution, impersonated the victim, and transferred the majority of the available money from the HELOC account into an account from which a wire transfer could be sent. The conspirators would then wire transfer hundreds of thousands of dollars to domestic or overseas accounts controlled by members of the conspiracy. The conspirators used caller-ID spoofing services, prepaid cell phones and PC wireless Internet access cards, and transferred victims’ home telephone numbers in order to impersonate the victim and avoid identifying themselves.
Once the fraudulently-transferred funds arrived in the destination bank, a conspirator with access to the account would withdraw funds and transfer them to other members of the conspiracy after taking a portion of the proceeds for himself. The following members of this conspiracy have been convicted in the Eastern District of Virginia:
- Obinna Orji, from Arlington, Texas, who was a fugitive since being charged in August 2008, was arrested in December 2012, pleaded guilty, and was sentenced to 72 months in prison on May 17, 2013.
- Henry “Uche” Obilo, of Miami, Florida, was sentenced to 88 months in prison on Sept. 11, 2009.
- Abel Nnabue, of Dallas, was sentenced to 54 months on Jan. 30, 2009.
- Precious Matthews, of Miami, was sentenced 51 months on Feb. 13, 2009.
- Brandy Anderson, of Dallas, was sentenced to 2 years of supervised probation and 40 days of community confinement on Feb. 20, 2009.
- Ezenwa Onyedebelu, of Dallas, was sentenced to 37 months on Feb. 27, 2009.
- Daniel Orjinta, of Nigeria, was sentenced to 42 months on March 6, 2009.
- Paula Gipson, of Dallas, was sentenced to 15 months on Sept. 4, 2009.
This case was investigated by the FBI’s Washington Field Office, United States Secret Service, and the Alexandria Police Department, with assistance from the U.S. Marshals Service. Assistance also was provided by the Australian Federal Police, who located Onwuhara in Sydney and helped coordinate the recovery of evidence and the defendant’s extradition to the United States. Assistant United States Attorney Alexander T.H. Nguyen and Lindsay Kelly prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Richland County Woman Sentenced on Methamphetamine Related ChargesRead the Press Release
A Richland County woman was sentenced on December 5, 2013, to federal prison on methamphetamine related charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Carol R. Wille, 32, of Noble IL, was sentenced to 96 months in prison, three years supervised release following her imprisonment, and fined $100. Wille had previously pleaded guilty to a one count federal indictment. Count 1 charged that from January 10, 2010, to on or about June 1, 2012, in Richland and Clay Counties, Wille did knowingly and intentionally possess Pseudoephedrine pills, knowing and having reasonable cause to believe that they would be used to manufacture methamphetamine.
The investigation in this case was conducted by the Flora Police Department, the Clay County Sheriff’s Office, and the Richland County Sheriff’s Office.
The case is being handled by Assistant United States Attorney George Norwood.