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Tuesday 29 October 2013
Columbiaville Man Indicted and Arrested for Filing False Tax ReturnsRead the Press Release
Gary Woody, of Columbiaville, Michigan, was arrested and arraigned today in federal court on an indictment charging him with three counts of filing false tax returns, United States Attorney Barbara McQuade announced today. Ms. McQuade was joined in the announcement by Carolyn Weber, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation.
The three count indictment charges that for the tax years 2006-2008, Woody filed tax returns that he knew were false. Woody knew that he was not truthfully reporting income that he received from Technico Products, LLC. The alleged tax loss to the government for 2006-2008 was approximately $270,000.
The defendant faces a maximum term of imprisonment of three years on each count of the indictment. The defendant faces a fine of $250,000 per count. The actual sentence imposed, if Woody is convicted, would depend on a number of factors, including the advisory sentencing guidelines.
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.
The case was investigated by Special Agents of the IRS-Criminal Investigation and is being prosecuted by U.S. Attorney’s Office in Flint, MI.
Chauncey Leo Elk Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on October 29, 2013, before U.S. Magistrate Judge Keith Strong, CHAUNCEY LEO ELK, a 24-year-old resident of Poplar, pled guilty to false statement during a firearms transaction. Sentencing has been set for January 14, 2013. He is currently released on special conditions.
In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated it would have proved at trial the following:
On April 3, 2013, ELK made a false statement on an ATF Form 4473 during his attempt to purchase a Marlin .22 caliber rifle in Wolf Point at the Swap Shop. At that time, ELK was under prosecution and previously appeared on a federal indictment charging him with firearms offenses - one felony and one misdemeanor - straw purchase and transfer of a handgun to a juvenile.
ELK personally appeared before Magistrate Strong on March 12, 2013, in Great Falls. Magistrate Strong warned ELK that
The Swap Shop maintains a federal firearms license to deal in firearms. The Swap Shop's federal firearms license was
April 3, 2013. As a federal firearms licensee, the Swap Shop is required to maintain the ATF Form
When ELK filled out the ATF Form 4473 on April 3, 2013, at the Swap Shop, ELK checked that he was not under
Swap Shop to believe that the Marlin .22 caliber rifle could be lawfully
ELK.
ELK faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by the Federal Bureau of Investigation.
Charleston Pill Dealer Who Pawned Pistol Sentenced to More Than 3 Years in Federal PrisonRead the Press Release
CHARLESTON, W.Va. – A Charleston pill dealer who illegally possessed a 9-millimeter pistol in January 2013 and then turned it in at a local pawn shop for cash was sentenced today to three years and one month in federal prison, announced U.S. Attorney Booth Goodwin. Anthony Dawson, Jr., 30, previously pleaded guilty in July to being a felon in possession of a firearm. Dawson’s sentence was handed down by U.S. District Judge John T. Copenhaver, Jr. in Charleston. On January 3, 2013, Dawson possessed a 9-millimeter pistol and later pawned the firearm near Dunbar, W.Va. in exchange for $400.
Dawson was previously convicted of conspiracy to deliver oxycodone in June 2009 in the Circuit Court of Kanawha County. He did not have his rights to possess a firearm restored.
The Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorney Erik S. Goes handled the prosecution.
This case was prosecuted as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
This case was also prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Centralia Man Pleads Guilty to Health Care FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on October 29, 2013, Michael E. Mays, 53, of Centralia, IL, pled guilty to a two-count indictment charging that he engaged in a scheme to commit health care fraud and that he made false statements in connection with health care benefits. At his sentencing Mays will face up to 10 years in prison, a fine of up to $250,000 and up to 3 years of supervised release on the first count, and up to 5 years in prison, a fine of up to $250,000, and up to 3 years of supervised release on the second count. Sentencing has been set for March 7, 2014, at 11:00 a.m. in United States District Court in East St. Louis, Illinois.
During his plea hearing, Mays, a beneficiary of the Illinois Home Services program, admitted that he had submitted, together with his personal assistant, false and fraudulent claims in regard to the hours of services performed by his personal assistant in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead entering a nursing home.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General and the Illinois State Police. The case is being prosecuted by Assistant United States Attorney Michael Quinley.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General or call 1-800-447-8477.
Catawba County Round-up Nets 19 on Federal Drug and Gun ViolationsRead the Press Release
Nine Suspects Also Arrested On State Charges
CHARLOTTE, N.C. – Federal and local law enforcement agencies arrested 19 suspects today in Hickory, N.C. and the surrounding area charged with drug trafficking, illegal firearm possession and other federal offenses, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Another nine individuals were arrested on state charges.
U.S. Attorney Tompkins is joined in making today’s announcement by Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, Chief Tom Adkins of the Hickory Police Department (HPD); and James C. Gaither, Jr., District Attorney for Burke, Caldwell and Catawba Counties.
The federal indictments were returned by a grand jury on October 15 and 16, 2013, but remained sealed until today’s arrests. The investigation began in October 2012, targeting individuals who participated in illegal drug transactions and gun trafficking in and around Hickory. The seven-month anti-violence initiative resulted in the seizure of more than 80 firearms, including 53 handguns, 19 rifles, 10 shotguns and one short barrel shotgun. Law enforcement also seized more than 1,425 grams of narcotics, including over 1,125 grams of cocaine and more than 230 grams of marijuana, with a total street value of over $55,000.
In making today’s announcement U.S. Attorney Tompkins stated, “This morning’s arrest of 19 offenders is part of my office’s ongoing effort to combat drug trafficking and gun violence throughout our district. The law enforcement partners who participated in this anti-violence initiative share a common goal: to fight and reduce violent drug crime by joining forces, so our citizens can reclaim their neighborhoods from drug dealers and put an end to the collateral violence that comes with drug and gun trafficking.”
“ATF will continue to work with our law enforcement partners to identify those individuals that contribute to the number of crime guns used in violent crime in the Hickory area. Violent gun crime is the scourge in our society and any contribution to illegal firearms trafficking cannot stand,” said ATF Special Agent in Charge Wayne L. Dixie. “Our mandate is to do everything we lawfully can to allow the citizens of Hickory to live in a safe and secure environment without the fear of having needless violent crime as a part of their lives. We accept that mandate and today’s law enforcement action should send that message loud and clear.”
“I am very proud of our local law-enforcement and agents and staff of the ATF who worked together to bring about this initiative. This is a major commitment of resources from the ATF for a city the size Hickory. These defendants will be prosecuted by both the U.S. Attorney’s office and the 25th prosecutorial district. We intend to follow up on this excellent collaborative effort with aggressive prosecution,” said James C. Gaither, Jr., District Attorney for the 25th Prosecutorial District, which encompasses Burke, Caldwell and Catawba counties.
“Hickory Police Department is committed to making our community safe,” said Chief of Police Tom Adkins. “HPD along with other area jurisdictions are members of the Catawba County Safe Communities Initiative, which directs law enforcement resources to reducing the violence and drugs in our communities. This focused investigation with ATF and our officers will have a lasting impact on reducing violence and taking drugs off the streets of Hickory and other communities in Catawba County.”
The round-up was conducted by the ATF, U.S. Marshals Service, Hickory Police Department, Newton Police Department, Catawba County Sheriff’s Office, Conover Police Department, and Longview Police Department. Those arrested include drug traffickers, members and associates of drug trafficking organizations, convicted felons, as well as several local gang members. The federal suspects arrested during the round-up were:
• Kadeem Jamal Albright, 21, address unknown.
• Marquice Tyrone Streeter, 25, of Hickory.
• Kianta Martese Davis, 21, of Conover, N.C.
• Keon Maurquie Gaither, 25, address unknown.
• Chaetez Sean Clayton, 23, of Hickory.
• Tyree Dorian Rhinehardt, 21, of Hickory.
• Isreal Lerock Linebarger, 22, of Conover.
• Larry Jermaine Linebarger, 26, address unknown.
• Larry Elwood Steptoe, 33, address unknown.
• Jeffrey Lashaw Maddox 27, address unknown.
• Anthony Roger Mull, 28, of Hickory.
• Kenneth Demond Norman, 35, of Hickory.
• Eric Jay Ramirez, 33, of Hickory.
• Cortez Lamar Rogers, 31, address unknown.
• Dorrian Debrell Shuford, 20, of Newton, N.C.
• Traquon Rashaad Davis, 20, of Conover.
• Brandon Jaqwan Sifford, 22, of Hickory.
• Anthony Lamar Mason, 24, of Hickory.
• Donnell Lavon Thomas, 39, of Hickory.
Click on the links below to view a chart of federal charges and penalties for each defendant:
PenaltiesNine additional defendants currently in state custody on state violations have been charged with federal offenses in connection with this investigation, bringing the total number of those charged federally to 28. They are:
• Damion Jordan Armstrong, 22, address unknown.
• Xavier Ahmad Cade, 22, of Hickory.
• Brandon Colbert, 26, of Hickory.
• Kerston Deshawn Edwards, 24, of Lincolnton, N.C.
• William Shalon Linebarger, 27, address unknown.
• Kenteze Rayvon Martin, 23, of Shelby, N.C.
• Christopher Durand Myers, 34, address unknown.
• Donald Lavar Ramseur, 24, of Hickory.
• Paris Michael Thompson, 24, address unknown.
Another nine defendants arrested this morning face state criminal charges.
The federal defendants arrested today are currently in federal custody. Their initial appearances were held in U.S. District Court before U.S. Magistrate Judge David C. Keesler.
The charges contained in the indictments are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The investigation is being conducted by the ATF and Hickory PD. U.S. Attorney Tompkins thanked all the law enforcement agencies involved in today’s round-up for their assistance in making today’s arrests.
Assistant U.S. Attorney Jennifer Dillon of the U.S. Attorney’s Office in Charlotte is leading the prosecution.
Buffalo Man Pleads Guilty to Producing Counterfeit CurrencyRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Bishara Lott, 41, a Buffalo, N.Y., pleaded guilty before U.S. District Court Judge Richard J. Arcara, to production of counterfeit currency. The charge carries a maximum penalty of 20 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney John E. Rogowski, who is handling the case, stated that the defendant used a personal computer to print $5,090 in counterfeit $20, $50, and $100 bills. On July 2, 2013, Lott attempted to sell the counterfeit currency to an undercover operative of the Secret Service in return for $500 in genuine currency.
Sentencing is scheduled for March 7, 2014, at 12:30 p.m. before Judge Arcara.
The plea is the culmination of an investigation on the part of Special Agents of the United States Secret Service, under the direction of Special Agent in Charge Tracy Gast.Army Soldier and Civilian Sentenced on Bribery Charges for Facilitating Thefts of Fuel in AfghanistanRead the Press Release
A former U.S. Army Sergeant and a co-conspirator have been sentenced in the District of Colorado for their roles in stealing fuel at Forward Operating Base (FOB) Fenty, Afghanistan, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division announced.
U.S. Army Sergeant Christopher Weaver, 30, of Fort Carson, Colo., was sentenced on Oct. 28, 2013, to serve 37 months in prison. Weaver pleaded guilty Oct. 20, 2012, and was sentenced by U.S. District Court Judge Marcia S. Krieger.
Jonathan Hightower, 31, of Houston, Texas, who worked at FOB Fenty as a civilian employee of a contractor and who had conspired with Weaver, was also sentenced on Oct. 28, 2013, to serve 27 months in prison. He pleaded guilty Aug. 3, 2012, and was sentenced by U.S. District Court Judge William J. Martinez.
A third conspirator, former soldier Stephanie Charboneau, pleaded guilty on Sept. 5, 2013, before U.S. District Court Judge Philip A. Brimmer. Her sentencing is set for Dec. 9, 2013.
Weaver and Hightower were also ordered to pay $1,225,000 in restitution, jointly with Charboneau. Hightower was also ordered to pay $400,000 in restitution for a related fuel theft scheme that was the subject of the prosecution.
According to court documents, from in or about January 2010 through June 2010, Weaver, Hightower and Charboneau were involved in handling the uploading and transportation of fuel from FOB Fenty, near Jalalabad, Afghanistan, to nearby military bases. Weaver and Charboneau created false and fraudulent documents purporting to authorize the transport of fuel from FOB Fenty to other military bases, even though no legitimate fuel transportation was required. Hightower was a civilian who worked at the base’s “fuel point” uploading fuel trucks, occasionally filling the trucks with fuel to be stolen and taking other steps to assist the conspiracy. At the direction of Weaver and Charboneau, fuel truck drivers used the fraudulent documents to justify the filled trucks’ departures from FOB Fenty. In truth, after the filled fuel truck left the base, the fuel was simply stolen, and Weaver and Charboneau would receive cash from the representative of the trucking company that supplied the fuel trucks. The cash would be split among the three conspirators.
All three conspirators pleaded guilty to receiving payments from a representative of the trucking company in exchange for facilitating the theft of approximately 70 5,000-gallon truckloads of fuel. Each of the three acknowledged that the loss to the United States was in excess of $1 million.The cases were investigated by the Special Inspector General for Afghanistan Reconstruction, the Department of the Army, Criminal Investigations Division (CID); the Defense Criminal Investigative Service; and the FBI.
These cases were handled by Special Trial Attorney Mark H. Dubester of the Criminal Division’s Fraud Section, who is on detail from the Special Inspector General for Afghanistan Reconstruction (SIGAR).
Monday 28 October 2013
Woodinville Man Sentenced to Four Months in Prison, Six Months of Home Detention for Wire FraudRead the Press Release
A Woodinville, Washington based company and its owner were sentenced today in U.S. District Court in Seattle for violating the Arms Export Control Act and for wire fraud, announced U.S. Attorney Jenny A. Durkan. The company, PRECISION IMAGE CORPORATION, is operated by owner, CHIH-KWANG HWA, out of his Woodinville home. HWA obtained contracts to supply circuit boards to the U.S. Navy, by falsely claiming the boards would be manufactured in the United States. Instead HWA illegally sent restricted information to a company in Taiwan for the boards to be manufactured there. The company was fined $300,000 for violating the Arms Export Control Act. HWA was sentenced for wire fraud to four months in prison, and six months of home detention as part of his two years of supervised release. U. S. District Judge James. L. Robart imposed the sentences.
According to the charging information and the plea agreements in the case, between 2009 and 2011, HWA obtained contracts worth $180,034 to supply circuit boards to the U.S. Navy. The Navy supplied technical data to PRECISION IMAGE that contained the technical specifications for the circuit boards. This technical data was designated on the United States Munitions List, International Traffic in Arms Regulations. As a result, this technical data could not legally be transmitted outside the United States without a license from the U.S. State Department. CHIH-KWANG HWA knew about this restriction at the time he received the technical data from the Navy. HWA did not get the appropriate licenses, and sent the restricted data to the Taiwan manufacturer. One of the transmissions occurred in September 2011, and the Taiwanese manufactured circuit boards were later provided to the Navy. In addition, many of the contracts awarded to HWA were set aside for companies that promised to manufacture the boards in the United States. HWA falsely represented to the Navy in connection with these contracts that the boards were being manufactured in the United States, when instead they were being manufactured in Taiwan.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Naval Criminal Investigative Service. The case was prosecuted by Assistant United States Attorneys Todd Greenberg and Thomas Woods.
West Mifflin Woman Laundered Money for Heroin TraffickerRead the Press Release
PITTSBURGH - A West Mifflin, Pa., woman was convicted of conspiring to launder money, United States Attorney David J. Hickton announced today.
Lori Page, 30, pled guilty before United States District Judge Nora Barry Fischer. Judge Fischer scheduled sentencing to occur on March 20, 2014, at 9 a.m.
In support of the guilty plea, the Court was informed that Page, from January 2012 through June 2012, rented, or arranged for the rental of, at least seven cars for a Pittsburgh-area heroin dealer. Page made payments to the rental car companies, either directly or through a female associate, totaling over $11,000. The funds Page used to cover the rentals were the proceeds of interstate heroin trafficking. Page was aware that the funds were from unlawful activity and that the rental transactions were designed to conceal those activities and the nature and source of the funds.
The law provides for a maximum total sentence of up to 20 years in prison, a fine of up to $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Drug Enforcement Administration in Pittsburgh and New York, the Pennsylvania State Police, the Pittsburgh Bureau of Police, the Allegheny County Police Department, the Pennsylvania Attorney General's Office, the Wilkins Township Police Department, the East Pittsburgh Police Department, the New York Police Department, the Blair County District Attorney's Office, and the Allegheny County District Attorney's Office conducted the investigation leading to the conviction in this case.
Walthill Man Sentenced for BurglaryRead the Press Release
United States Attorney Deborah R. Gilg announced that William G. Hallowell, 28 of Walthill, Nebraska was sentenced in federal court in Omaha for a burglary on the Omaha Indian Reservation. The Honorable John H. Gerrard sentenced Hallowell to a 21 month term of imprisonment concurrent with his Omaha Tribal Court sentence for the same offense. After his release from prison Hallowell will begin a three year term of supervised release.
On July 7, 2012, the Walthill Police Department responded to a burglary. The residents returned to their home to find their dog shut in a bathroom and a computer and jewelry missing. Hallowell was arrested later that day after being in an altercation with another individual. The computer and bag of jewelry were in his possession at the time of his arrest.
This case was investigated by Federal Bureau of Investigation and Walthill Police Department.
Walthill Man Sentenced for Statutory RapeRead the Press Release
Chief United States District Court Judge Laurie Smith Camp sentenced Newton Dale, age 27, of Walthill, Nebraska, for his conviction of statutory rape in Indian Country. Dale was sentenced to 41 months of imprisonment to be followed by five years of supervised release. His sentence was ordered to run consecutively to the sentence Dale is currently serving in Iowa for a controlled substance violation.
Dale is a member of the Omaha Tribe of Nebraska. Beginning in January of 2011 and continuing for a period of time thereafter, Dale began having consensual sex with a 15 year old female member of the Ponca Tribe of Nebraska.
This case was investigated by the Federal Bureau of Investigation.
Wabaunsee County Woman Admits Embezzling from Bio-Security Research InstituteRead the Press Release
TOPEKA, KAN. - A Wabaunsee County woman has pleaded guilty to embezzling from the Bio-Security Research Institute at Kansas State University, U.S. Attorney Barry Grissom said today.
Linda Kay Miller, 51, Alma, Kan., pleaded guilty to three counts of interstate transportation of fraudulently altered securities. In her plea, she admitted the crimes took place while she worked as an office manager for the institute from August 2007 to January 2013. The institute receives grant money from the federal government to provide infectious disease research programs that address threats to plant, animal and human health.
Miller used her position to embezzle funds by diverting checks sent to the institute. She altered the checks to make herself either a payee or co-payee and deposited the proceeds into one of her personal bank accounts. The proceeds moved in interstate commerce as part of a process to clear and negotiate the checks. The plea identifies three specific checks Miller diverted: A check for $5,000 from the FSU Research Foundation in Tallahassee, Fla.; a check for $6,108.58 from the Frontline Healthcare Workers Safety Foundation in Atlanta, Ga.; and a check for $955 from J.M. Oconnor Inc., in Lenexa, Kan.
In her plea, Miller agreed to a money judgment of $16,523.58.
Sentencing is set for Jan. 13. She faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count.
Grissom commended the FBI, the Kansas State University Police Department, the Wabaunsee County Sheriff’s Office and Assistant U.S. Attorney Richard Hathaway for their work on the case.U.S. Attorney Announces Office Collected over $34 Million in Fiscal Year 2013Read the Press Release
BOISE – United States Attorney Wendy J. Olson announced today that her office's Financial Litigation Unit collected $2,715,051.85 in criminal fines, assessments, and restitution, and $31,441,799.34 in civil debts for the fiscal year that ended September 30, 2013. In addition, the Asset Forfeiture Unit collected approximately $1.7 million from criminal proceeds. Also in this fiscal year, approximately $1 million has been shared with state and local law enforcement agencies via the equitable sharing program.
“The more than $34 million our staff collected through civil debts, asset forfeiture, fines, assessments and restitution is more than seven times the U.S. Attorney's Office's operational budget,” said Olson. “Our dedicated collection staff—attorneys, paralegals, analysts and fiscal agents—ensure that those who owe the federal government money as a result of litigation in this district or as a result of longtime debt, such as student loans, make appropriate payments. Our asset forfeiture staff likewise works efficiently to deprive criminals of the profits of their crimes. This year, they have all done outstanding work and served this office, taxpayers and the federal government well.”
The Financial Litigation Unit collects civil penalties for violations of regulations involving, among other things, controlled substances, environmental protection, and procurement fraud. It also collects civil debts for defaulted student loans and defaulted federally financed mortgages, working with debtors to arrange viable payment plans. During fiscal year 2013, the office collected over $31 million in civil debt; of that, $27 million was collected for EPA violations concerning release of hazardous substances; $3.5 million in settlement of allegations of procurement fraud; $150,000 in settlement of a lawsuit under the Uniformed Services Employment and Reemployment Rights Act of 1994, a federal law that establishes rights and responsibilities for uniformed service members and their civilian employers; and $21,700 for civil penalties in three drug diversion cases.
From convicted criminals, the U.S. Attorney's Office collects fines, assessments, restitution, and asset forfeitures. The Financial Litigation Unit also pursues reimbursement from those who have fraudulently obtained payments from government contracts and programs such as Medicare and Medicaid. The federal government provides approximately 70% of Medicaid funds for the State of Idaho. The U.S. Attorney’s Office collected more than $1 million in fraudulently-obtained Medicare/Medicaid funds during the fiscal year.
Victims of crime receive funds collected in criminal restitution cases. Other criminal collections go into the Crime Victims Fund. From there, funds are distributed to the Idaho Crime Victims Compensation Program, the Idaho Council on Domestic Violence and Victim Assistance, and similar programs across the country. Asset forfeitures are distributed to local, state, and federal law enforcement agencies to help fight crime. Other recoveries go back to agency creditors. In fiscal year 2013, the U.S. Attorney's Office collected over $638,000 in federal and non-federal restitution, and criminal fines, $578,000 of which was distributed to victims of crime.
Two Former Cook County Board of Review Analysts Convicted of Accepting $1,500 Bribe to Facilitate $10,000 Property Tax ReductionRead the Press Release
CHICAGO ― Two former analysts for the Cook County Board of Review were convicted today on federal conspiracy, bribery, and fraud charges for accepting $1,500 to facilitate reducing by more than $10,000 the property taxes on three residential properties identified by an individual who was cooperating with federal agents. The defendants, THOMAS HAWKINS and JOHN RACASI, were captured scheming with others to facilitate reducing property tax assessments in exchange for bribes in undercover recordings that were played at their week-long trial in U.S. District Court. The jury deliberated for a couple of hours Friday before finding both defendants guilty on all counts this morning.
Hawkins was an analyst since December 2004, and Racasi was an analyst since March 2006, and both were on the staff of one of the three Board of Review commissioners in September 2008, when they accepted the $1,500 bribe payment. Each of the three commissioners has analysts who handle residential property tax appeals and at least two of the three commissioners’ analysts must agree in order to reduce the Cook County Assessor’s property tax assessments.
Hawkins, 49, and Racasi, 52, half-brothers and both of Chicago, were convicted of one count each of conspiracy to commit bribery, bribery, mail fraud, and mail fraud conspiracy. They remain free on bond while awaiting sentencing, which U.S. District Judge John Tharp set for 2 p.m. on Feb. 25, 2014.
Mail fraud and mail fraud conspiracy each carry a maximum sentence of 20 years in prison; bribery carries a maximum of 10 years; and conspiracy to commit bribery carries a maximum of five years in prison, and each count carries a $250,000 maximum fine. The Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The guilty verdicts were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Shields, Jr., Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The FBI=s Chicago City Public Corruption Task Force led the investigation with assistance from the Chicago Police Department’s Internal Affairs Division, which is a task force member.
According to the evidence at trial, Ali Haleem, a former Chicago police officer who began cooperating with the FBI in July 2008 and is awaiting sentencing on other federal charges, was introduced to Hawkins, who, in turn, introduced him to Racasi. Haleem recorded numerous meetings and telephone conversations with both defendants in which they discussed facilitating property tax assessment reductions in exchange for bribes.
In September 2008, Haleem, Hawkins and Racasi discussed the specifics of the bribe Haleem would pay for reducing tax assessments on properties in Chicago, Burbank, and Tinley Park. On Sept. 11, 2008, Hawkins and Racasi agreed to reduce the assessed values on properties Haleem owned in Chicago and Burbank, as well as a property in Tinley Park owned by another individual, for three years beginning with the 2008 tax year. Hawkins and Racasi provided Haleem with analysis sheets for these properties, which could be used to calculate the tax savings that a property owner would realize over the three-year period. In return for the $1,500 bribe, Hawkins and Racasi promised Haleem a total tax savings for the three properties over the threeyear period of at least approximately $10,000. The payment was made on Sept. 17, 2008, when Haleem met with Hawkins and Racasi and handed the money to Racasi. Hawkins assured Haleem that Racasi would later provide Hawkins with his share of the money.
Hawkins and Racasi also facilitated a reduction in property tax assessments on 10 condominium units in Chicago, expecting to receive bribe payments that Haleem would collect from the property owners once the reductions were verified.
The government is being represented by Assistant U.S. Attorneys Margaret J. Schneider and Michael T. Donovan.
Two Armed Robbers Sentenced to Life in PrisonRead 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, Manuel Orosa, Chief, City of Miami Police Department, and Sergio Velazquez, Chief, Hialeah Police Department, announce that Daniel Rodriguez, 28, and Louis Robinson, Jr., 35, both of Miami, were each sentenced to life in prison by U.S. District Judge Cecilia M. Altonaga. Rodriguez and Robinson were convicted by a jury in August of a string of armed robberies of jewelry stores that resulted in the shooting of one victim and the theft of over $1 million across Miami-Dade, Broward, and Palm Beach Counties.
According to trial evidence and testimony, between July and November of 2012, Rodriguez, Robinson, and their associates robbed four commercial establishments, armed with firearms and sledgehammers, and utilizing stolen luxury vehicles. Specifically, in July 2012, the defendants and their associates conducted an armed robbery of the ABC Jewelry Store in Hialeah, Florida, stealing over $400,000 in jewelry and watches. During the robbery, defendant Robinson shot and nearly killed the store’s owner. In August 2012, the defendants and their associates conducted an armed robbery of the AT&T store in Coconut Grove, stealing over $20,000 in merchandise, and victimizing store employees and customers. In September 2012, the defendants and their associates took over the Saks Fifth Avenue store in Boca Raton, stealing over $550,000 in jewelry and watches. In November 2012, the defendants and their associates conducted an armed robbery of the Jared’s Jewelry Store in Pembroke Pines, stealing over $100,000 in jewelry. At sentencing, Judge Altonaga determined that both Rodriguez and Robinson qualified as career offenders.
Mr. Ferrer commended the investigative efforts of the members of the South Florida Violent Crimes Task Force, the FBI, the City of Miami Police Department, the Hialeah Police Department, and the Miami Beach Police Department. The case was prosecuted by Assistant U.S. Attorneys Seth M. Schlessinger and Olivia S. Choe.
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.
Texas Men Resentenced for Illegal Deer Hunting in KansasRead the Press Release
WICHITA, KAN. - Two Texas men have been resentenced on Lacey Act charges of conspiracy, wildlife trafficking and obstruction of justice related to the sale of guided deer hunts in southern Kansas, U.S. Attorney Barry Grissom said today.
James Bobby Butler, Jr., 44, of Martinsville, Tex., was sentenced to 10 months in federal prison. Butler pleaded guilty in March 2011 to one count of conspiracy to violate the Lacey Act, one Lacey Act interstate trafficking count and one count of obstruction of justice.
His brother, Marlin Jackson Butler, 39, also of Martinsville, was sentenced to 8 months in federal prison. He pleaded guilty in March 2011 to one count of conspiracy to violate the Lacey Act and one Lacey Act interstate trafficking count.
The Lacey Act is a federal law that makes it illegal to knowingly transport or sell in interstate commerce any wildlife taken or possessed in violation of state law or regulation.
The Butlers ran a deer guiding operation near Coldwater, Kan. They sold guided deer hunts in Kansas to hunters from Texas and Louisiana, charging approximately $3,500 for archery hunts and $5,000 for rifle hunts. During those hunts, the Butlers transported clients to areas owned or leased by James Butler, where hunters were encouraged to kill deer illegally, in many cases without a license or permit.
In June 2011, James Butler was sentenced to 41 months in federal prison and Marlin Butler was sentenced to 27 months. They appealed their sentences to the U.S. Tenth Circuit Court of Appeals, which vacated the sentences and remanded the cases for resentencing.
Grissom commended the U.S. Fish & Wildlife Service, the Kansas Department of Wildlife and Parks, the Texas Parks and Wildlife Department, Colin Black of the Justice Department's Environment and Natural Resources Division, Environmental Crimes Section, and Assistant U.S. Attorney Matt Treaster for their work on the case.
Texas Man Sentenced for Transporting a Minor to Joplin for ProstitutionRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Texas man was sentenced in federal court today for transporting a minor across state lines to engage in prostitution.
Jerrod Lamonte Marshall, also known as “Jacoby” and “Wood,” 40, of Amarillo, Texas, was sentenced by U.S. District Judge Brian C. Wimes to 12 years and seven months in federal prison without parole. The court also ordered Marshall to pay $2,900 in restitution to his victim. Today’s sentence must be served consecutively to an unrelated Texas case.
On Feb. 6, 2013, Marshall pleaded guilty to transporting a minor to engage in prostitution.
The 15-year-old victim, identified as “M.S.,” was arrested for prostitution by the Joplin Police Department on Jan. 20, 2012. She told investigators that she had been working as a prostitute for Marshall in Tulsa, Okla., prior to being moved to Joplin.
This case was prosecuted by Assistant U.S. Attorney James Kelleher. It was investigated by the FBI, the Joplin, Mo., Police Department and the Fayetteville, Ark., Police Department.
Smith County Snake Expert Sentenced for Smuggling Peruvian ReptilesRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 63-year-old Tyler, Texas eco-tourism guide has been sentenced for smuggling live snakes into the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
William Lamar pleaded guilty on June 18, 2013, to importing wildlife taken in violation of foreign law and was sentenced to three years of probation today by U.S. District Judge Michael H. Schneider.
According to information presented in court, on Aug. 29, 2012, Lamar imported seven live snakes that he had purchased at a market in Lima, Peru. Lamar smuggled the snakes in his jacket on flights from Lima to Miami, Florida and then to Dallas/Ft. Worth International Airport. The next day, after TSA agents refused to let him board a commuter plane to Tyler with the snakes, Lamar traveled aboard a ground transport shuttle from DFW to his home in Tyler. Game Wardens went to Lamar’s residence and seized the snakes.
Peruvian law prohibits the exportation of wild live animals coming from the forest or jungle region unless the exporter has a properly issued ministerial order authorizing the export for either scientific investigation or for cultural diffusion. Lamar admitted that he knew that Peruvian law prohibited the unauthorized exportation of wildlife in a jacket without proper authorization.
This case was investigated by the U.S. Fish and Wildlife Service, the Texas Parks and Wildlife Service, the Transportation Security Administration, and the Dallas Fort Worth International Airport Department of Public Safety. This case was prosecuted by Assistant U.S. Attorney Jim Noble.
Shooter Sentenced to Life in Prison for Racketeering MurderRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 32-year-old Vidor, Texas man was sentenced today for his role in a March 2011 murder committed in furtherance of the SWS criminal enterprise in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Kenny Don Stanley pleaded guilty on June 25, 2013, to murder in aid of racketeering and was sentenced to life in federal prison today by U.S. District Judge Marcia Crone.
According to information presented in court, on Mar. 14, 2011, Stanley, along with Tanner Lynn Bourque, a/k/a “Two Shoes,” a/k/a “Hitman” (33), Kristopher Leigh Guidry, a/k/a “Hollywood” (28), and Vicki Stark-Fitts (49), used a firearm to murder James Lee Sedtal, a/k/a “Lil Bit,” in Liberty County, Texas. The defendants murdered Sedtal on behalf of SWS, after Sedtal assaulted an Aryan Brotherhood of Texas (ABT) associate. ABT was poised to retaliate against SWS, and Bourque, Guidry, Stanley, and Stark-Fitts sought to maintain and increase their position within SWS by murdering Sedtal.
According to court documents, the SWS is a race-based organization operating inside and outside of jails and prisons in Texas and elsewhere. SWS was founded during the 1990s by inmates within the Texas Department of Criminal Justice. SWS is also known as “Solid Wood Soldiers” and “Separate White State.” Although the founders established SWS for protection of white inmates and advancement of white supremacy and white separatism, SWS expanded its objectives to include illegal activities for profit, including trafficking methamphetamine and firearms. SWS protects its power, territory, and profits through intimidation and violence, including assaults, robbery, and murder.
From September 2010 to January 2011, SWS members manufactured “shake and bake” methamphetamine for distribution in the Orange County area of Texas. In February 2011, Bourque, Guidry and other SWS members became closely associated with Stark-Fitts, who supplied them with crystal methamphetamine and firearms. Crystal methamphetamine is a purer form of methamphetamine that is imported from Mexico. According to information presented in court, on Mar. 14, 2011, Stanley, Bourque, Guidrey and Stark-Fitts murdered James Lee Sedtal, a/k/a Lil Bit, in connection with the methamphetamine conspiracy.
Guidry, Bourque, and Stark-Fitts pleaded guilty this summer for their respective roles in the murder. Judge Crone sentenced Guidry to life in prison on October 4, 2013. Bourque and Stark-Fitts are awaiting sentencing. Bourque faces life in prison, and Stark-Fitts faces from 360 months to life in prison.
This case is being prosecuted as part of the Project Safe Neighborhoods Time Machine Initiative. Time Machine is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
The case is being investigated by the ATF, FBI, U.S. Marshals Service, U.S. Secret Service, U.S. Bureau of Prisons, DEA, Texas Rangers, Department of Public Safety CID, Texas Department of Criminal Justice OIG, Orange County Sheriff’s Office, Hardin County Sheriff’s Office, Jasper County Sheriff’s Office, Tyler County Sheriff’s Office, Jefferson County Sheriff’s Office, and Beaumont Police Department, and is being prosecuted by Assistant U.S. Attorney John B. Ross.Richmond Man Sentenced to 34 Years on Robbery and Firearm Charges Relating to Three Separate RobberiesRead the Press Release
RICHMOND, Va. – Marion Carter, 58, of Richmond, Va., was sentenced today to 34 years in prison on three counts of robbery interfering with commerce and two counts of possessing a firearm in furtherance of those robberies.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; and Carl Vasilko, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, made the announcement after sentencing by United States District Judge James R. Spencer.
On July 26, 2013, Carter was found guilty by a jury. According to the evidence presented at trial, Carter robbed three commercial businesses in less than three weeks. The first robbery took place on November 2, 2012, at the Baskin Robbins ice cream store on Forest Hill Avenue in Richmond. Carter, wearing a black mask to obscure his face, pointed a pistol at the clerk on duty and demanded money from the business. At one point, Carter asked the clerk if there was more money in the back of the store. When told there was not, Carter left with $113 he had stolen from the business.
Six days later, on November 8, 2012, Carter entered the Fast Auto Loans store on Midlothian Turnpike in Richmond, again wearing the black mask over his face. He displayed the gun again and told the clerks to put the money in the bag. Frustrated that the clerks were taking too long, he then threatened, "I'm not playing around, I will kill you." The money was placed in a grey Wal-Mart bag and he ran out of the door, taking with him $864 he had stolen from the business.
The third robbery took place on November 14, 2012 at the FasMart convenience store on Semmes Avenue. During that robbery, the store clerks ran to the back of the store and locked themselves in the back room. Carter left the store without any money.
The robber in each instance wore what appeared to be the same clothing, which seemed to match the clothing defendant was wearing at the time of his arrest. Evidence at trial included surveillance videos from the robberies and a cell tower data analysis by the FBI.
This case was investigated by the ATF and the Richmond Police Department, with assistance from the FBI. Assistant United States Attorney Peter Duffey and Assistant United States Attorney Heather Hart prosecuted this 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.Richmond Man Sentenced to 21 Months for Failing to Report to Serve A Previously Imposed SentenceRead the Press Release
OAKLAND – Dontae Jerome Jones was sentenced today to 21 months in prison for failing to surrender to serve a previously imposed sentence, United States Attorney Melinda Haag announced.
Jones, 31, of Richmond, admitted in his plea agreement that he had been previously convicted of being a felon in possession of a firearm and ammunition and had been sentenced to 72 months in custody. Jones was allowed to voluntarily surrender to serve his sentence on November 5, 2012. Jones also admitted that he failed to report to serve his sentence as ordered, and he later evaded capture by the U.S. Marshals, who had located him at a residence in Vallejo, Calif. Jones was finally caught on April 29, 2013, in Vallejo by the Vallejo Police Department.
Jones was indicted by a federal grand jury on May 9, 2013. He pleaded guilty on August 12, 2013. The sentence was handed down by The Honorable Claudia Wilken, U.S. District Court Chief Judge. In addition to his prison term, Jones was also sentenced to a 3-year period of supervised release.
Brian C. Lewis is the Assistant U.S. Attorneys who is prosecuting the case with the assistance of Legal Assistant Janice Pagsanjan. The prosecution is the result of an investigation by the FBI, the U.S. Marshals, and the Vallejo Police Department.
(Jones indictment )
Peckville Man Sentenced for Online Enticement of MinorsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Mark Kandel, age 53, was sentenced today in federal court in Wilkes-Barre by U.S. District Judge A. Richard Caputo to 174 months’ imprisonment to be followed by a lifetime term of supervised release upon the completion of imprisonment and will be subject to the registration and reporting requirements of the Adam Walsh Act.
According to United States Attorney Peter J. Smith, Kandel was indicted in December 2012 after he used the internet and a cellular device in attempts to persuade, induce, entice, and coerce minors to engage in sexual activity. Kandel pleaded guilty in June 2013.
This case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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 internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case was investigated by the FBI, the Lackawanna County District Attorney’s Office and the Blakely Police Department. The case was prosecuted by Assistant United States Attorney Michelle Olshefski.
Norris Man Charged with Sexual Abuse of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that Jeremy Eagle Bear, age 23, of Norris, South Dakota, appeared before U.S. District Judge Roberto A. Lange on October 24, 2013, and pled guilty to Sexual Abuse of a Minor.
The maximum penalty upon conviction is 15 years in custody and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund.
Around February 11, 2011, Eagle Bear, then 20 years of age, was at a house party in Norris and met the victim, age 13 at the time. Eagle Bear then engaged in sexual intercourse with the minor victim.
The investigation was conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Tim Maher.
A presentence investigation was ordered and a sentencing date was set for January 13, 2013. The defendant was remanded to the custody of the U.S. Marshals Service pending sentencing.
Michigan Felon Pleads Guilty to Illegal Firearm Possession ChargeRead the Press Release
HUNTINGTON, W.Va. – A 23-year-old Michigan felon faces up to 10 years in prison after pleading guilty to a federal firearm possession charge, announced U.S. Attorney Booth Goodwin. Deandrew Fizer III, of Romulus, Mich., pleaded guilty today before Chief United States District Judge Robert C. Chambers in Huntington. On June 7, 2013, officers with the Huntington Police Department responded to a burglary in progress call on Sycamore Street in Huntington. Police entered the residence and found Fizer in a bedroom with a .45 caliber pistol lying within his reach. Fizer, who was arrested, waived his Miranda rights and told police that he had possessed the firearm for approximately a week.
Fizer was previously convicted of felonious assault in June 2010 in the Third Judicial Circuit Court of Wayne County in Michigan. He did not have his rights to possess a firearm restored.
Fizer is scheduled to be sentenced on February 3, 2014.The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Huntington Police Department. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
The case is being brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Mescalero Apache Man Pleads Guilty to Assaulting Sixteen-Month Old ChildRead the Press Release
ALBUQUERQUE – Alcario Emilio Provencio, 24, a member and resident of the Mescalero Apache Nation, pleaded guilty on Oct. 28, 2013, in Las Cruces federal court to assaulting a minor in Indian Country. Under the terms of the plea agreement, Provencio will be sentenced to 36 months of imprisonment followed by a term of supervised release to be determined by the court.
Provencio was arrested on April 15, 2013, on a criminal complaint charging him with assault resulting in serious bodily injury. According to the complaint, Provencio assaulted a 16-month old child who was in his care on Oct. 10, 2012, in a residence located on the Mescalero Apache Reservation. As a result of the assault, the victim sustained serious injuries including compression fractures of two vertebrae, retinal hemorrhaging, a fractured rib and numerous bruises on the head, face, neck and torso. Provencio was in tribal custody on tribal charges related to the assault until his arrest on federal charges.
On Friday, Provencio entered a guilty plea to a felony information charging him with assault of a person under the age of 16 resulting in substantial bodily injury. Provencio admitted assaulting the victim by intentionally striking the child, and acknowledged that the victim sustained substantial bodily injury as a result of the assault.
Provencio has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Las Cruces office of the FBI and the Mescalero Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
Medical Business Owner Pleads Guilty to Medicaid FraudRead the Press Release
ATLANTA – Jennifer C. Alsdorf has pleaded guilty to health care fraud for filing fraudulent claims with the Georgia Medicaid program.
“This defendant cheated the Medicaid program by sending in thousands of fraudulent claims for medical services that were never performed,” said United States Attorney Sally Quillian Yates. “We will continue to partner with the Georgia Attorney General’s Office in fighting the costly effects of health care fraud in this State.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “Individuals who engage in extensive schemes to defraud healthcare fraud and compromise our publicly funded programs such as Medicare and Medicaid need to be identified and held accountable. With today's plea, Ms. Alsdorf will be held accountable for her criminal actions.”
“Fighting Medicaid fraud is a top priority for my office,” said Attorney General Sam Olens. “This case sends a strong message that we take every complaint received seriously, and we will aggressively investigate and prosecute those who overbill Medicaid.”
According to United States Attorney Yates, the charges and other information presented in court: Jennifer C. Alsdorf was the owner, President, and CEO of Hand in Hand Speech & Language Services, Inc. The medical business was located in Tampa, Fla. (and prior to 2005 in Vidalia, Ga.) and offered speech-language therapy services for children covered by Medicaid. Acting on behalf of Hand in Hand, Alsdorf contracted with speech-language pathologists to perform the services under independent contractor agreements. Alsdorf would bill Medicaid for the services provided by the pathologists, and then send a portion of the amount she received from Medicaid to them.
In the contracts, Alsdorf agreed to pay a set fee to the pathologists for each initial evaluation and each subsequent therapy visit rendered by the pathologists to Medicaid recipients. The fees that Alsdorf paid to the pathologists for those two services were based on the amounts that Medicaid reimbursed for the services.
After rendering services to patients, the pathologists would send Alsdorf treatment notes showing which patients they had seen, how long they had provided therapy, and which services they had provided. Alsdorf was supposed to use these notes to prepare the claims to submit to Medicaid. Unbeknownst to the speech-language pathologists, however, in addition to billing Medicaid for initial evaluations and therapy visits, Alsdorf also billed Medicaid for “sensory integration” therapy, a service the pathologists had not provided. Many of the pathologists did not even know what sensory integration therapy was and had never heard of such a service. Alsdorf did not send any of the money she received from Medicaid for this service to the pathologists. She instead kept all of the money she received for sensory integration therapy.
Alsdorf also submitted claims to Medicaid for patient visits that never occurred. She submitted claims under pathologists’ names for services during times when they were not working with Hand in Hand. She also submitted claims representing that the pathologists had treated certain patients when, in fact, the pathologists had never seen or treated the patients at any time. Alsdorf submitted thousands of fraudulent claims to Medicaid.
Alsdorf pleaded guilty to one count of health care fraud. The charge carries a maximum sentence of 10 years in prison and a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
As part of the plea agreement, Alsdorf has agreed to a restitution judgment of $200,000 to the Georgia Medicaid program, which includes forfeiture of a 2013 Mercedes Benz, thousands of dollars that were previously seized from two retirement accounts and a bank account, and two pieces of real estate located in Montgomery County, Ga.
Sentencing for Alsdorf, 44, of Tampa, Fla., is scheduled for January 8th, 2014, at 10:30 a.m. before United States District Judge Amy Totenberg.
This case is being investigated by Special Agents of the Federal Bureau of Investigation and Investigators from the Georgia Medicaid Fraud Control Unit and the Georgia Department of Community Health.
Assistant United States Attorneys Stephen H. McClain and G. Jeffrey Viscomi, and Georgia Assistant Attorney General Henry A. Hibbert, are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Man Sentenced for Receipt of Child PornographyRead the Press Release
BUFFALO, N.Y.—U.S. Attorney, William J. Hochul, Jr. announced that John Luchetti, 27, of Buffalo, N.Y., who was convicted of receipt of child pornography, was sentenced to 96 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Maura K. O'Donnell, who handled the case, stated that the defendant was convicted of receipt of child pornography in connection with his possession of numerous images of child pornography, some depicting prepubescent minors, and some depicting sadistic or masochistic conduct, and his use of an Internet file-sharing program to receive and distribute the images.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The sentencing is the culmination of an investigation by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.Littleton Police Officer Pleads Guilty to Firearm and Drug Trafficking CrimesRead the Press Release
DENVER – Jeffery Allan Johnston, age 46, of Parker, Colorado, today pled guilty before U.S. District Court Judge Philip A. Brimmer to one count of being a prohibited person in possession of firearms and one count of possession with intent to distribute MDMA (commonly known as Ecstasy), and admitted the forfeiture allegation in the Information, United States Attorney John Walsh and FBI Denver Division Special Agent in Charge Thomas Ravenelle announced. At the conclusion of the hearing Judge Brimmer ordered that he be immediately remanded into custody. Johnston is scheduled to be sentenced by Judge Brimmer on February 3, 2014.
Johnston was first charged by Criminal Complaint on July 19, 2013. He was arrested at his Parker home on July 22, 2013. He was charged by Information on August 15, 2013, where he waived his right to be indicted by a federal grand jury. He pled guilty today, October 28, 2013.
According to the stipulated facts in the plea agreement, as well as other court documents, in April 2012, a source told law enforcement that he (the source) attended a party at Johnston’s home. While at the party, the source claims he observed behavior consistent with the use of illegal drugs. On July 16, 2013, a source received a message from Johnston. In cooperation with the FBI, the source returned Johnston’s call and had a coded conversation about providing Johnston with MDMA. On July 19, 2013, the source, working with the FBI, traveled to Johnston’s residence. Through monitored and recorded calls before the meeting, the source had agreed to deliver 75 MDMA pills to Johnston. The source and Johnston then met at Johnston’s residence. The exchange of money and MDMA took place in the kitchen of the residence. Johnston received approximately 9.9 grams of MDMA, in the form of 37 pills and 6.3 grams of powder MDMA. Johnston paid the source $1,300 for the drugs. Following the transaction, Johnston was taken into custody and a federal search warrant was executed at the residence.
During the search agents found the MDMA used during the controlled exchange in a kitchen drawer. They also found a stainless steel Colt Officers Model .45 caliber pistol located in a small black bag, loaded with seven rounds in the magazine and one in the chamber located above the kitchen drawer that contained the drugs. Investigators eventually located a small amount of cocaine, steroids, hundreds of prescription pills, additional firearms, and hundreds of rounds of ammunition in the residence. They also found 8 other firearms, including an AR-15 and two 12 gauge shotguns. At all pertinent times, the defendant was employed as a sworn police officer.
Johnston faces not more than 10 years in federal prison, and a fine of up to $250,000 for being a prohibited person in possession of firearms (specifically an unlawful user of Schedule I controlled substances, MDMA, MDA and GHB while knowingly possessing multiple firearms). He also faces not more than 20 years in federal prison, and a fine of up to $1,000,000 for possession with intent to distribute MDMA (Ecstasy).
This case was investigated by the Federal Bureau of Investigation (FBI).
Johnston is being prosecuted by Assistant U.S. Attorneys David Conner and Guy Till.
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Justice Department Obtains $167,500 in Discrimination Settlement with Reno, Nev., Apartment ComplexRead the Press Release
The Justice Department announced today that the U.S. District Court of Nevada has approved a settlement in which the owners and operators of Rosewood Park Apartments, a 902 unit apartment complex in Reno, Nev., will pay $167,000 to resolve a lawsuit alleging discrimination against persons with disabilities who use assistance animals.
Under the agreement, the defendants in United States v. Rosewood Park LLC et al., will pay a total of $127,500 to a family that was not allowed to move into the complex because one of the members of the household used an assistance animal and to the Silver State Fair Housing Council, a non-profit Nevada organization that assisted the family and conducted testing to investigate the rental practices at Rosewood Park. The defendants will also pay an additional $25,000 to compensate any other persons harmed by the defendants’ discriminatory policies, who are identified through a process established by the agreement, and will pay $15,000 to the government in civil penalties. The agreement also requires that defendants adopt and maintain a new policy regarding assistance animals, provide non-discrimination training to their employees and agree to record keeping and monitoring requirements for the terms of the agreement. The agreement has been approved by the U.S. District Court of Nevada, and takes the form of a consent order that can be enforced by the court.
The department’s complaint had alleged that the owners, employees and management company of Rosewood Park Apartments violated the Fair Housing Act by limiting individuals with certain assistance animals to a particular section of Rosewood Park Apartments; subjecting such individuals to pet fees; requiring assistance animals to be licensed or certified; and barring companion or uncertified service dogs altogether. The case began when a family that had sought housing at Rosewood Park and the Silver State Fair Housing Council filed complaints with the Department of Housing and Urban Development (HUD). HUD investigated the complaint, issued a charge of discrimination and referred the matter to the Department of Justice.
“The Fair Housing Act ensures that persons with disabilities searching for a home are protected from discrimination,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “The Justice Department will continue to vigorously protect the civil rights of persons with disabilities in Nevada and across the country.”
“Persons who think they have been discriminated against in housing issues should not hesitate to file a report with HUD,” said U.S. Attorney Bogden. “The U.S. Attorney’s Office, as part of the U.S. Department of Justice, works with HUD to ensure that companies that are treating disabled persons unfairly are punished, and that they adopt policies to prevent further discrimination.”
“Assistance animals play a vital role in helping people with disabilities conduct everyday activities and fully enjoy their homes,” said Bryan Greene, HUD's Acting Assistant Secretary for Fair Housing and Equal Opportunity. “HUD and DOJ will continue to enforce the Fair Housing Act's protections and ensure that housing providers do not illegally limit assistance animals.”
Fighting illegal housing discrimination is a top priority of the Justice Department. The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability.
More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt/ . Persons who believe they have experienced or witnessed unlawful housing discrimination may call the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact HUD at 1-800-669-9777. More information about the Fair Housing Act can also be found at hwww.justice.gov/crt/housing/ or www.hud.gov/fairhousing .
Justice Department Obtains $167,500 in Discrimination Settlement with Reno, Nev., Apartment ComplexRead the Press Release
WASHINGTON – The Justice Department announced today that the U.S. District Court of Nevada has approved a settlement in which the owners and operators of Rosewood Park Apartments, a 902 unit apartment complex in Reno, Nev., will pay $167,000 to resolve a lawsuit alleging discrimination against persons with disabilities who use assistance animals.
Under the agreement, the defendants in United States v. Rosewood Park LLC et al., will pay a total of $127,500 to a family that was not allowed to move into the complex because one of the members of the household used an assistance animal and to the Silver State Fair Housing Council, a non-profit Nevada organization that assisted the family and conducted testing to investigate the rental practices at Rosewood Park. The defendants will also pay an additional $25,000 to compensate any other persons harmed by the defendants’ discriminatory policies, who are identified through a process established by the agreement, and will pay $15,000 to the government in civil penalties. The agreement also requires that defendants adopt and maintain a new policy regarding assistance animals, provide non-discrimination training to their employees and agree to record keeping and monitoring requirements for the terms of the agreement. The agreement has been approved by the U.S. District Court of Nevada, and takes the form of a consent order that can be enforced by the court.
The department’s complaint had alleged that the owners, employees and management company of Rosewood Park Apartments violated the Fair Housing Act by limiting individuals with certain assistance animals to a particular section of Rosewood Park Apartments; subjecting such individuals to pet fees; requiring assistance animals to be licensed or certified; and barring companion or uncertified service dogs altogether. The case began when a family that had sought housing at Rosewood Park and the Silver State Fair Housing Council filed complaints with the Department of Housing and Urban Development (HUD). HUD investigated the complaint, issued a charge of discrimination and referred the matter to the Department of Justice.
“The Fair Housing Act ensures that persons with disabilities searching for a home are protected from discrimination,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “The Justice Department will continue to vigorously protect the civil rights of persons with disabilities in Nevada and across the country.”
“Persons who think they have been discriminated against in housing issues should not hesitate to file a report with HUD,” said U.S. Attorney Bogden. “The U.S. Attorney’s Office, as part of the U.S. Department of Justice, works with HUD to ensure that companies that are treating disabled persons unfairly are punished, and that they adopt policies to prevent further discrimination.”
“Assistance animals play a vital role in helping people with disabilities conduct everyday activities and fully enjoy their homes,” said Bryan Greene, HUD's Acting Assistant Secretary for Fair Housing and Equal Opportunity. “HUD and DOJ will continue to enforce the Fair Housing Act's protections and ensure that housing providers do not illegally limit assistance animals.”
Fighting illegal housing discrimination is a top priority of the Justice Department. The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability.
More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt/. Persons who believe they have experienced or witnessed unlawful housing discrimination may call the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact HUD at 1-800-669-9777. More information about the Fair Housing Act can also be found at www.justice.gov/crt/housing/ or www.hud.gov/fairhousing.Justice Department Announces Settlement Agreement with Everett, Wash., Battery Company to Protect Employment Rights of Returning Military ReservistRead the Press Release
The Department of Justice announced today that it has reached a settlement with All Battery Sales and Service (ABS) of Everett, Wash., to resolve a lawsuit it filed on behalf of Curtis Kirk, a U.S. Army reservist. The lawsuit alleged that the company violated the Uniformed Services Employment and Reemployment Rights Act (USERRA) by failing to properly reemploy Kirk in September 2010 after he returned from military service in support of Operation Iraqi Freedom. The lawsuit also alleged that the defendant unlawfully demoted and then terminated Kirk’s employment without proper cause. If approved by the court, the settlement would resolve the allegations that the defendant violated the reemployment rights of Kirk.
ABS is a wholesaler, distributor and retailer of battery products, parts and services. According to the complaint, filed in the U.S. District Court for the Western District of Washington, the defendant violated USERRA by not properly reemploying Kirk in a position as a front counter representative, or in a position with comparable seniority, status and pay. The defendant reemployed Kirk in a lower status position than the one he held when he left for active duty service, with fewer guaranteed working hours, a less lucrative commission and bonus structure and fewer opportunities for promotion. ABS later demoted Kirk further and terminated his employment without cause, also in violation of USERRA.
Under the terms of the settlement, ABS must pay Kirk $37,500 to compensate him for lost or reduced wages and benefits. Among other things, the settlement also requires the defendant to provide training to ABS’ high-level officials and human resources staff on the USERRA rights and obligations of employers and covered employees.
“Employers have a legal obligation to ensure service members get their jobs back when they return from military duty as required by law,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “The Civil Rights Division is committed to protecting the rights of those who, through their courage and sacrifice, secure the rights of all Americans.”
“Just as our dedicated men and women of the military protect our freedoms overseas, we must protect their interests here at home,” said U.S. Attorney Jenny A. Durkan. “These soldiers have made many sacrifices, and the loss of a career or the job they are entitled to when they return home cannot be allowed. The U.S. Attorney’s Office is committed to enforcing the laws that protect the rights of those brave men and women who serve our country proudly.”
Subject to certain conditions, USERRA requires employers to promptly reemploy returning service members in the positions they would have held had their employment been not interrupted by military service or in a position of like seniority, status and pay. In addition, any individual with Kirk’s length of absence for military service who is reemployed cannot be terminated within one year after the date of full and proper reemployment except for just cause.
The case was litigated by Assistant U.S. Attorney J. Michael Diaz in the U.S. Attorney’s Office for the Western District of Washington, in collaboration with Andrew Braniff, USERRA/USAO Program Coordinator, in the Employment Litigation Section of the Civil Rights Division of the Justice Department.
The Justice Department’s Civil Rights Division has given a high priority to the enforcement of service members’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.usdoj.gov/crt/emp and www.servicemembers.gov , as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm .
Justice Department Announces Settlement Agreement with Everett, Wash., Battery Company to Protect Employment Rights of Returning Military ReservistRead the Press Release
WASHINGTON - The Department of Justice announced today that it has reached a settlement with All Battery Sales and Service (ABS) of Everett, Wash., to resolve a lawsuit it filed on behalf of Curtis Kirk, a U.S. Army reservist. The lawsuit alleged that the company violated the Uniformed Services Employment and Reemployment Rights Act (USERRA) by failing to properly reemploy Kirk in September 2010, after he returned from military service in support of Operation Iraqi Freedom. The lawsuit also alleged that the defendant unlawfully demoted and then terminated Kirk’s employment without proper cause. If approved by the court, the settlement would resolve the allegations that the defendant violated the reemployment rights of Kirk.
ABS is a wholesaler, distributor and retailer of battery products, parts and services. According to the complaint, filed in the U.S. District Court for the Western District of Washington, the defendant violated USERRA by not properly reemploying Kirk in a position as a front counter representative, or in a position with comparable seniority, status and pay. The defendant reemployed Kirk in a lower status position than the one he held when he left for active duty service, with fewer guaranteed working hours, a less lucrative commission and bonus structure and fewer opportunities for promotion. ABS later demoted Kirk further and terminated his employment without cause, also in violation of USERRA.
Under the terms of the settlement, ABS must pay Kirk $37,500 to compensate him for lost or reduced wages and benefits. Among other things, the settlement also requires the defendant to provide training to ABS’ high-level officials and human resources staff on the USERRA rights and obligations of employers and covered employees.“Employers have a legal obligation to ensure service members get their jobs back when they return from military duty as required by law,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “The Civil Rights Division is committed to protecting the rights of those who, through their courage and sacrifice, secure the rights of all Americans.”
“Just as our dedicated men and women of the military protect our freedoms overseas, we must protect their interests here at home,” said U.S. Attorney Jenny A. Durkan. “These soldiers have made many sacrifices, and the loss of a career or the job they are entitled to when they return home, cannot be allowed. The U.S. Attorney’s Office is committed to enforcing the laws that protect the rights of those brave men and women who serve our country proudly.”
Subject to certain conditions, USERRA requires employers to promptly reemploy returning service members in the positions they would have held had their employment been not interrupted by military service or in a position of like seniority, status and pay. In addition, any individual with Kirk’s length of absence for military service who is reemployed cannot be terminated, within one year after the date of full and proper reemployment except for just cause.
The case was litigated by Assistant U.S. Attorney J. Michael Diaz in the U.S. Attorney’s Office for the Western District of Washington, in collaboration with Andrew Braniff, USERRA/USAO Program Coordinator, in the Employment Litigation Section of the Civil Rights Division of the Justice Department.
The Justice Department’s Civil Rights Division has given a high priority to the enforcement of service members’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.usdoj.gov/crt/emp and www.servicemembers.gov, as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.
Jury Convicts El Paso Attorney Marco Delgado in Connection with A Multi-Million Dollar Money Laundering SchemeRead the Press Release
In El Paso 47-year-old El Paso attorney Marco Antonio Delgado, a.k.a. Marco Delgado Licon, faces up to 20 years in federal prison after a jury convicted him of conspiracy to launder up to $600 million in illegal drug proceeds announced United States Attorney Robert Pitman and Homeland Security Investigations Special Agent in Charge Dennis Ulrich.
Based on evidence presented during trial, the jury found that from a period of time between 2007 and 2008, Delgado conspired with other individuals to launder $600 million in illegal drug proceeds for members of the Milenio Drug Trafficking Organization. Two episodes of money laundering demonstrated to the jury included a Department of Homeland Security seizure in September 2007 of $1,000,000 in U.S. Currency traveling from Atlanta, GA to Mexico via El Paso; and, an HSI seizure of $50,000 in drug proceeds, in July 2008, in Chicago, IL, which was transported to El Paso and deposited in Delgado’s Attorney Interest on Lawyers’ Trust Account (IOLTA) bank account.
Delgado, who has remained in federal custody since his arrest in November 2012, is scheduled to be sentenced at 10:30am on January 24, 2014, before United States Senior District Judge David Briones.
Delgado is currently set to go to trial again on November 18, 2013, based on a separate indictment which charges him with two wire fraud counts and 15 money laundering counts. According to that indictment, in January 2010, Delgado, as a legal representative of FGG Enterprises, Inc. (FGG) signed a $121 million contract between FGG and the Comision Federal de Electricidad (CFE), a Mexican-state-owned utility company, for the acquisition and installation of equipment at the Agua Prieta II power plant located in Agua Prieta, Sonora, Mexico. Pursuant to the agreement, payments from CFE to FGG were to be deposited into a FGG bank account located in El Paso. The indictment alleges that Delgado, for the purpose of personal enrichment and without the consent of the sole owner of FGG, submitted a fraudulent written request to the Banco Nacional de Comercio Exterior in Mexico which caused two wire transfers—one on March 8, 2010, in the amount of $20 million and one on July 6, 2010, in the amount of $12 million—to be deposited into a bank account he controlled located in the Turks and Caicos Islands. The indictment further alleges that Delgado subsequently wire transferred approximately $1.15 million from the Turks and Caicos Island bank account to bank accounts in El Paso; Taos, NM; and, Pittsburg, PA, in order to conceal or disguise the nature, location, source ownership or the control of the proceeds from his scheme.
Upon conviction, Delgado faces up 20 years in federal prison per count. An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
This indictment resulted from an investigation by Homeland Security Investigations (HSI). Assistant United States Attorneys Debra Kanof and Anna Arreola are prosecuting these cases on behalf of the Government.
Jasper County Man Sentenced for Child Pornography ViolationsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 40-year-old Jasper, Texas, man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Tracy Jay Chappell pleaded guilty on July 11, 2013 to possession of child pornography and was sentenced to 60 months in federal prison today by U.S. District Judge Marcia Crone.According to information presented in court, on Apr. 4, 2011, Chappell was identified through his IP (Internet Protocol) address during an undercover operation targeting child pornography distribution. The IP address had files available for any computer user connected to the internet to access using publicly available file sharing software. A federal search warrant was later executed at Chappell’s residence on County Road 136 in Jasper. During the search, a personal computer was seized that contained approximately 1,200 files depicting child pornography. Chappell was indicted by a federal grand jury on Feb. 6, 2013
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by Homeland Security Investigation’s Immigration and Customs Enforcement and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Randall L. Fluke.Irene Paster and Yolanda Paster Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Butte, on October 25, 2013, before U.S. District Judge Sam E. Haddon, IRENE PASTER, age 65, and YOLANDA PASTER, age 40, residents of Big Sky, were each sentenced to a term of:
Prison: 10 months
Special Assessment: $25
Supervised Release: 1 year
In addition, YOLANDA PASTER was fined $3,000.
They were sentenced in connection with their guilty pleas to willful failure to file a tax return.
In an Offer of Proof filed by Assistant U.S. Attorney Chad C. Spraker, the government stated it would have proved at trial the following:
A married person filing a joint return must file a tax return if his or her income exceeds $18,700 in gross income for the 2009 calendar year. During the 2009 calendar year, IRENE PASTER and her spouse had gross income totaling $91,322.
IRENE filed an extension of time to file an IRS Form 1040 for the 2009 tax year, which created an extension date of October 15, 2010. IRENE however, willfully failed to file a 2009 return on or before October 15, 2010.
An unmarried person, who is not a surviving spouse or head of household, must file a tax return if his or her income exceeds $9,350 in gross income for the 2009 calendar year. During the 2009 calendar year, YOLANDA PASTER, Irene(s daughter, had a gross income totaling $60,413.
YOLANDA filed an extension of time to file an IRS Form 1040 for the 2009 tax year, which created an extension date of October 15, 2010. YOLANDA, however, willfully failed to file a 2009 return on or before October 15, 2010.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that they will likely serve all of the time imposed by the court. In the federal system, they do have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Federal Bureau of Investigation, the Criminal Investigation Division of the Internal Revenue Service, and the U.S. Secret Service.
Inmate Sentenced for Assault That Left Fellow Inmate HospitalizedRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced today that Ernest Prado, 48, Uvalde, Texas, was sentenced by U.S. District Judge Dee D. Drell to 84 months in prison with three years of supervised release for assaulting a fellow inmate. He pleaded guilty July 23, 2013.According to evidence presented at the guilty plea, officials for the U.S. Penitentiary in Pollock, La., on November 29, 2010 observed Prado and fellow inmate Gumaro Lopez in the recreation yard assaulting another inmate using homemade icepick-type weapons. When the corrections officers approached to intervene, Prado and Lopez stopped the assault and threw the weapons on the ground. The injured inmate was transported to a local hospital and was found to have sustained approximately 15 puncture wounds to his upper torso. The assault was captured on video.
The FBI-Alexandria Resident Agency and the Federal Bureau of Prisons conducted the investigation. Assistant U.S. Attorney Earl M. Campbell prosecuted the case.
Idaho U.S. Attorney's Office, Civil Rights Division, FBI Conclude Lengthy Investigation into Prison AssaultsRead the Press Release
BOISE — After a lengthy investigation and review of more than three years, the U.S. Attorney's Office for the District of Idaho announced today that the Department of Justice is declining prosecution under federal criminal civil rights statutes of inmate-on-inmate assaults at the Idaho Correctional Center. The investigation examined whether any prison correctional staff had criminal liability for inmate-on-inmate assaults occurring between 2006 and 2011, including an assault, captured on videotape, of inmate Hanni Elabed on January 18, 2010.
The incidents were investigated by the Federal Bureau of Investigation and reviewed by prosecutors in both the U.S. Attorney’s Office and the U.S. Department of Justice, Civil Rights Division, Criminal Section. United States Attorney Wendy J. Olson called the investigation and prosecutorial review “detailed and thorough.” “We pursued and obtained all the information necessary to make a prosecutive decision,” she said. The investigation covered numerous reported assaults. According to Olson, investigators and prosecutors reviewed thousands of pages of court documents, prison records, photographs and videotapes and conducted numerous interviews of correctional staff.
Under federal criminal civil rights statutes, a law enforcement officer, including a correctional officer, commits a criminal act when he or she willfully fails to stop an assault or is deliberately indifferent to an inmate who is in need of medical care. A person acts willfully under the law when the person knows what he or she is doing is wrong and chooses to do it anyway. Correctional officers who follow prison policies or training that direct them to act in a certain way typically do not act willfully, even if the policy ultimately is determined to be inappropriate. “Inmate-on-inmate violence at the Idaho Correctional Center has certainly been problematic,” said Olson. “But, under federal criminal civil rights laws, this investigation necessarily focused on whether one or more correctional staff willfully or with deliberate indifference placed inmates in situations where there was actual knowledge of a substantial risk of serious harm to the inmate.”
A decision not to prosecute may be made for a variety of reasons, Olson said, including insufficiency of evidence to prove the correctional officer acted willfully. “The statute sets out a tough standard in cases involving allegations of misconduct by a correctional officer,” she said. “It requires that we be cautious, thorough and deliberative, and that's what we’ve been in this case. We determined that under the circumstances, none of these assaults were incidents where we could prove the elements of a federal offense beyond a reasonable doubt. In such situations, we are obligated to decline prosecution. We do so here.”
U.S. Attorney Olson also stated that under the circumstances found by the FBI and reviewed by experienced criminal civil rights prosecutors, the various civil lawsuits brought by inmates against the Corrections Corporation of America, the private company that runs the Idaho Correctional Center, were a more appropriate vehicle for addressing the assaults that the investigation examined. Olson said that the federal criminal investigation did not cover recent admissions by Idaho Correctional Center that its staff did not work all of the hours billed to the State of Idaho.
“Along with the FBI and Civil Rights Division, we remain committed to vigorously and thoroughly investigating allegations of law enforcement officer misconduct,” said Olson. “All of law enforcement has an interest in ensuring that those who are vested with the authority to enforce the law do not abuse it.”
Gross Ile Businessman Convicted in Mortgage Fraud CaseRead the Press Release
A Grosse Ile businessman was found guilty today by a federal jury of conspiracy and one count of wire fraud, announced United States Attorney Barbara L. McQuade.
U.S. Attorney McQuade was joined in the announcement by Paul M. Abbate, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation.
The jury convicted Richard Dean Woolsey, 42, after a two-week trial before U.S. District Judge Avern Cohn.
The evidence at trial showed that from 2006 to 2008, Woolsey conspired and defrauded mortgage lenders in numerous transactions in Michigan and Tennessee. Using his own real estate and appraisal companies, Woosley orchestrated millions of dollars of fraudulent mortgage transactions by directing the activities of bank employees, buyers, appraisers and closing agents. To complete the scheme, he disguised the source of down payments, provided false and inflated appraisals for properties and provided false income information for buyers to bolster their creditworthiness to qualify for mortgage loans.
Woolsey was convicted of wire fraud and conspiracy to commit wire fraud. Each count carries a maximum possible penalty of 20 years in prison and a $250,000 fine.
We all pay the price for mortgage fraud," McQuade said. "This crime damages the integrity of our real estate markets and undermines the ability of lending institutions to protect themselves from debilitating losses, which leads to higher costs for all of us," McQuade said.
Special in Charge Abbate stated, “As reflected in the investigation of Mr. Woolsey’s criminal activity and his conviction today, the FBI takes mortgage fraud very seriously. These crimes, particularly those as egregious as Mr. Woolsey’s, not only negatively impact real estate markets, banks, and the financial industry, but hurt our entire community. The FBI will continue to aggressively investigate these crimes.”
Sentencing will be set after a presentence investigation by the United States Probation Department. Bond was continued.
Girl's Former Tennis Coach SentencedFor Soliciting Her for Child PornographyRead the Press Release
KANSAS CITY, KAN. - A Missouri man who coached youth tennis has been sentenced to 78 months in federal prison for soliciting a minor girl he coached to send him sexually explicit photos of herself, U.S. Attorney Barry Grissom said today. The defendant also was ordered to pay $15,000 in restitution.
Rex Haultain, 56, Parkville, Mo., pleaded guilty to one count of soliciting child pornography. In his plea, he admitted that in 2009 he told a minor girl he was coaching that she sexually aroused him. While traveling to a tournament in the summer of 2010, he showed her a picture of his penis on a cell phone. In the fall of 2010 he began asking her to send him photos of herself naked, leading eventually to his sexually molesting her.
At sentencing, the victim, now 18, read a statement saying Haultain manipulated her by exploiting her desire to become an outstanding tennis player. Her statement read in part: “Not a day goes by that I don’t think about what happened to me. I believe that will be the case for a long time, and maybe even for the rest of my life.”
Grissom commended the Overland Park Police Department, the FBI, Victim-Witness Specialist Vivian VanVleet and Assistant U.S. Attorney Scott Rask for their work on the case.
Frederick and Carey Gonzales Sentenced to Federal Prison for Child Pornography ConvictionsRead the Press Release
ALBUQUERQUE – Frederick Gonzales, 43, and his wife Carey Gonzales, 37, both of Albuquerque, N.M., were sentenced this morning for their convictions on federal child pornography charges. Frederick Gonzales was sentenced to 97 months in federal prison followed by 15 years of supervised release. Carey Gonzales was sentenced to 36 months in federal prison followed by 20 years of supervised release. Each also was ordered to pay $500 in restitution to the victim whose image was at issue in the child pornography offenses of conviction. Both will be required to register as sex offenders after they complete their respective prison sentences.
The sentences imposed on the couple were announced by Acting U.S. Attorney Steven C. Yarbrough, New Mexico Attorney General Gary K. King, Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI, and Bernalillo County Sheriff Dan Houston.
Frederick and Carey Gonzales were arrested on state child pornography charges on Jan. 11, 2013. At that time, Frederick Gonzales was the incoming president of Albuquerque’s Young America Football League (YAFL), and Carey Gonzales was employed as a kindergarten teacher’s aide by the Albuquerque Public Schools (APS). Shortly thereafter, the YAFL removed Frederick Gonzales from his position with the organization and APS fired Carey Gonzales. On Jan. 18, 2013, the couple was arrested on criminal complaints alleging federal child pornography charges by members of the New Mexico Internet Crimes Against Children (ICAC) Task Force.
Frederick and Carey Gonzales were indicted on Feb. 6, 2013 in a six-count indictment charging Frederick Gonzales with three counts of receipt of visual depictions of minors engaged in sexually explicit conduct and two counts of possession of visual depictions of minors engaged in sexually explicit conduct. The indictment also charged Carey Gonzales with one count of possessing visual depictions of minors engaged in sexually explicit conduct.
The charges against Frederick and Carey Gonzales were the result of an undercover investigation initiated by the New Mexico Attorney General’s Office in Sept. 2012, that identified an IP Address subscribed to Frederick Gonzales as one that was used to possess, receive and distribute child pornography. As a result of the investigation, on Jan. 11, 2013, the Bernalillo County Sheriff’s Office executed a search warrant at the Gonzales residence and seized computers and computer-related media that contained videos and images consistent with child pornography.
On May 29, 2013, Frederick Gonzales entered a guilty plea to Count 1 of the indictment charging him with receipt of child pornography. In his plea agreement, Frederick Gonzales acknowledged that, on Jan. 11, 2013, he voluntarily participated in a recorded interview during which he admitted watching child pornography videos and that he had been downloading child pornography videos using a file-sharing program for approximately six months. On that same day, Carey Gonzales entered a guilty plea to Count 6 of the indictment charging her with possession of child pornography and admitted watching child pornography videos that her husband downloaded and saved.
This case was prosecuted by Assistant U.S. Attorney Charlyn E. Rees and was investigated by the following members of the New Mexico ICAC Task Force: the New Mexico Attorney General’s Office, the Bernalillo County Sheriff’s Office, the Albuquerque office of the FBI and the New Mexico Regional Computer Forensic Lab.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Former President of Port Arthur, Texas, Chemical Company Sentenced for Federal Crimes Related to Employee DeathsRead the Press Release
The former president of Port Arthur Chemical and Environmental Services LLC (PACES) has been sentenced for occupational safety crimes which resulted in the death of an employee, announced Robert G. Dreher, Acting Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division and John M. Bales, U.S. Attorney for the Eastern District of Texas.
Matthew Lawrence Bowman, 41, of Houston, pleaded guilty on May 9, 2013, to violating the Occupational Safety and Health Act (OSH Act) and making a false statement and was sentenced to serve 12 months in federal prison today by U.S. District Judge Marcia Crone. Bowman was also ordered to pay fines in the amount of $5,000.
Bowman admitted to not properly protecting PACES employees from exposure to hydrogen sulfide, a poisonous gas resulting in the death of truck driver Joey Sutter on Dec. 18, 2008. In addition, Bowman admitted to directing employees to falsify transportation documents to conceal that the wastewater was coming from PACES after a disposal facility put a moratorium on all shipments from PACES after it received loads containing hydrogen sulfide.
“Today’s sentence is a just punishment for Bowman’s actions, which placed workers at unacceptable risk and had fatal consequences,” said Acting Assistant Attorney General Dreher. “The Justice Department and the U.S. Attorney’s Offices will continue to work with our law enforcement partners to vigorously investigate and prosecute those who violate the laws enacted to ensure the safety of workers handling hazardous materials and to prevent the kind of tragedies that occurred in this case.”
“The government’s prosecution of Matthew Bowman is now complete. While Mr. Bowman is being held accountable for his criminal conduct, and that is appropriate, there is no amount of time in prison; no amount of criminal fine that can be levied that will compensate for the loss of life at PACES. We extend our deepest condolences and well wishes to the friends and family of Mr. Sutter, who died pitilessly and needlessly because of the criminally negligent actions of Matthew Bowman,” said U.S. Attorney Bales. “The agents and prosecutors conducted an outstanding investigation and prosecution.”
"The sentencing today is a clear signal of the U.S. Department of Transportation’s (USDOT), and its Office of Inspector General’s (OIG) commitment to protecting the public from illegally transported hazardous materials,” said Max Smith, regional Special Agent-in-Charge, USDOT OIG. “Working with our law enforcement and prosecutorial colleagues we will continue our vigorous efforts to prosecute to the fullest extent of the law those who would seek to disregard the Nation’s transportation laws and endanger the public.”
“Environmental violations are serious crimes, and in a worst-case scenario, they can kill people,” said Ivan Vikin, special Agent in Charge of EPA’s criminal enforcement program in Texas. “In this case, a senior manger’s actions led directly to the death of one of his employees. This is why we have laws regarding the safe and legal handling of hazardous materials. Enforcement of these laws must be consistent and uncompromising.”
“When a worker loses his or her life on the job, it has a ripple effect on their families, friends, community and the workplace. Matt Bowman and PACES knowingly violated workplace safety standards that led to Joey Sutter's death,” said OSHA's Deputy Regional Administrator Eric Harbin in Dallas. “OSHA standards are in place to protect workers and employers will be held accountable when they fail to follow these standards.”
According to information presented in court, Bowman was president and owner of PACES, located in Port Arthur, Texas, and CES Environmental Services (CES) located in Houston. PACES was in operation from November 2008 to November 2010, and was in the business of producing and selling caustic materials to paper mills. The production of caustic materials involved hydrogen sulfide, a poisonous gas. According to the National Institute for Occupational Safety and Health, hydrogen sulfide is an acute toxic substance that is the leading cause of sudden death in the workplace. Employers are required by OSHA to implement engineering and safety controls to prevent employees from exposure above harmful limits of hydrogen sulfide.
Bowman was responsible for approving and directing PACES production operations, the disposal of hydrogen sulfide wastewater, and ensuring implementation of employee safety precautions. In some cases, Bowman personally handled the investigation of work-related employee injuries, directed the transportation of PACES wastewater, and determined what safety equipment could be purchased or maintained. In the cases at issue, hazardous materials were transported illegally with false documents and without the required placards. Most importantly, the workers were not properly protected from exposure to hazardous gases. The exposure resulted in the deaths of two employees, Joey Sutter and Charles Sittig, who were truck drivers, at the PACES facility on Dec. 18, 2008 and Apr. 14, 2009. Placarding is critical to ensure the safety of first responders in the event of an accident or other highway incident. Bowman and PACES were indicted by a federal grand jury on July 18, 2012.
This case was investigated by EPA Criminal Investigation Division; the U.S. Department of Transportation Office of Inspector General; the Texas Commission on Environmental Quality - Environmental Crimes Unit, part of the Texas Environmental Enforcement Task Force; the Texas Parks & Wildlife Department - Environmental Crimes Unit; the Houston Police Department - Major Offenders, Environmental Investigations Unit; the Travis County, Texas - District Attorney’s Office; the Harris County, Texas, District Attorney’s Office - Environmental Crimes Division; the Houston Fire Department; OSHA; the U.S. Coast Guard; the Port Arthur Police Department; and the Port Arthur Fire Department.
The case was prosecuted by the U.S. Attorney’s Office for the Eastern District of Texas and the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.Former President of Port Arthur Chemical Company Sentenced for Federal Crimes Related to Employee DeathsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – The former president of Port Arthur Chemical and Environmental Services, LLC (PACES) has been sentenced for occupational safety crimes which resulted in the death of an employee, announced John M. Bales, U.S. Attorney for the Eastern District of Texas, and Robert G. Dreher, Acting Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division
Matthew Lawrence Bowman, 41, of Houston, pleaded guilty on May 9, 2013, to violating the Occupational Safety and Health Act (OSH Act) and making a false statement and was sentenced to 12 months in federal prison today by U.S. District Judge Marcia Crone. Bowman was also ordered to pay fines in the amount of $5,000.Bowman admitted to not properly protecting PACES employees from exposure to hydrogen sulfide, a poisonous gas resulting in the death of truck driver Joey Sutter on Dec. 18, 2008. In addition, Bowman admitted to directing employees to falsify transportation documents to conceal that the wastewater was coming from PACES after a disposal facility put a moratorium on all shipments from PACES after it received loads containing hydrogen sulfide.
“The government’s prosecution of Matthew Bowman is now complete. While Mr. Bowman is being held accountable for his criminal conduct, and that is appropriate, there is no amount of time in prison; no amount of criminal fine that can be levied that will compensate for the loss of life at PACES. We extend our deepest condolences and well wishes to the friends and family of Mr. Sutter, who died pitilessly and needlessly because of the criminally negligent actions of Matthew Bowman,” said U.S. Attorney John M. Bales. “The agents and prosecutors conducted an outstanding investigation and prosecution.”
“Today’s sentence is a just punishment for Bowman’s actions, which placed workers at unacceptable risk and had fatal consequences,” said Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “The Justice Department and the U.S. Attorney’s Offices will continue to work with our law enforcement partners to vigorously investigate and prosecute those who violate the laws enacted to ensure the safety of workers handling hazardous materials and to prevent the kind of tragedies that occurred in this case.”
“The sentencing today is a clear signal of the U.S. Department of Transportation’s (USDOT), and its Office of Inspector General’s (OIG) commitment to protecting the public from illegally transported hazardous materials,” said Max Smith, regional Special Agent-in-Charge, USDOT OIG. “Working with our law enforcement and prosecutorial colleagues we will continue our vigorous efforts to prosecute to the fullest extent of the law those who would seek to disregard the Nation’s transportation laws and endanger the public.”
“Environmental violations are serious crimes, and in a worst-case scenario, they can kill people,” said Ivan Vikin, special Agent in Charge of EPA’s criminal enforcement program in Texas. “In this case, a senior manger’s actions led directly to the death of one of his employees. This is why we have laws regarding the safe and legal handling of hazardous materials. Enforcement of these laws must be consistent and uncompromising.”
"When a worker loses his or her life on the job, it has a ripple effect on their families, friends, community and the workplace. Matt Bowman and PACES knowingly violated workplace safety standards that led to Joey Sutter's death," said OSHA's Deputy Regional Administrator Eric Harbin in Dallas. "OSHA standards are in place to protect workers and employers will be held accountable when they fail to follow these standards."
The case was prosecuted by the U.S. Attorney’s Office for the Eastern District of Texas and the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.
According to information presented in court, Bowman was president and owner of PACES, located in Port Arthur, Texas, and CES Environmental Services (CES) located in Houston. PACES was in operation from November 2008 to November 2010, and was in the business of producing and selling caustic materials to paper mills. The production of caustic materials involved hydrogen sulfide, a poisonous gas. According to the National Institute for Occupational Safety and Health, hydrogen sulfide is an acute toxic substance that is the leading cause of sudden death in the workplace. Employers are required by OSHA to implement engineering and safety controls to prevent employees from exposure above harmful limits of hydrogen sulfide.
Bowman was responsible for approving and directing PACES production operations, the disposal of hydrogen sulfide wastewater, and ensuring implementation of employee safety precautions. In some cases, Bowman personally handled the investigation of work-related employee injuries, directed the transportation of PACES wastewater, and determined what safety equipment could be purchased or maintained. In the cases at issue, hazardous materials were transported illegally with false documents and without the required placards. Most importantly, the workers were not properly protected from exposure to hazardous gases. The exposure resulted in the deaths of two employees, Joey Sutter and Charles Sittig, who were truck drivers, at the PACES facility on Dec. 18, 2008 and Apr. 14, 2009. Placarding is critical to ensure the safety of first responders in the event of an accident or other highway incident. Bowman and PACES were indicted by a federal grand jury on July 18, 2012.
This case was investigated by EPA Criminal Investigation Division; the U.S. Department of Transportation Office of Inspector General; the Texas Commission on Environmental Quality - Environmental Crimes Unit, part of the Texas Environmental Enforcement Task Force; the Texas Parks & Wildlife Department - Environmental Crimes Unit; the Houston Police Department - Major Offenders, Environmental Investigations Unit; the Travis County, Texas - District Attorney’s Office; the Harris County, Texas, District Attorney’s Office - Environmental Crimes Division; the Houston Fire Department; OSHA; the U.S. Coast Guard; the Port Arthur Police Department; and the Port Arthur Fire Department.Former Crew Leader Sentenced for Harboring Undocumented WorkersRead the Press Release
KANSAS CITY, KAN. - A former crew leader has been sentenced to time served after pleading guilty to harboring undocumented workers who were employees of a framing company in Spring Hill, Kan., U.S. Attorney Barry Grissom said today. He will be turned over to Immigration and Customs Enforcement for deportation.
Edino Pacheco, also known as Dennis Erickson Portillo, 30, has been in custody since he was arrested April 1. In his plea, he admitted that owners and managers of Advantage Framing Systems, Inc., in Spring Hill, Kan., knowingly employed undocumented workers. Advantage devised a method to reimburse undocumented workers by making crew leaders responsible to pay undocumented workers in their crews. Pacheco served as a crew leader and cashed checks issued to him from Advantage Framing to pay crew members for their framing work.
Advantage Framing issued checks to more than 32 crews for compensation for framing work. During the conspiracy, the total amount of checks written to various framing crews was approximately $4.6 million.
Co-defendants include:
James Humbert,owner of Advantage Framing, who pleaded guilty and is set for sentencing Jan. 17.
Kimberly Humbert, co-owner of Advantage Framing, who pleaded guilty and is set for sentencing Jan. 17.
Charles Stevens II, co-owner of Advantage Framing,who pleaded guilty and is set for sentencing Dec. 3.
Jose Ramon Caro-Corral, a crew leader, who is awaiting trial.
Angel Arguello-Plata, a crew leader, who pleaded guilty, and is awaiting sentencing.
Jorge Uriel Delgado-Ovalle, a crew leader, who is awaiting trial.
Grissom commended the U.S. Immigration and Customs Enforcement?s (ICE) Homeland Security Investigations (HSI), the Internal Revenue Service and Assistant U.S. Attorney Jabari Wamble for their work on the case.Former County Worker and School Board Member Sentenced to Four Years in Prison for Accepting BribesRead the Press Release
Former Cuyahoga County employee and Maple Heights school board member Santina “Sandy” Klimkowski was sentenced to four years in prison today for her role in the Cuyahoga County corruption scandal, federal law enforcement officials announced today.
Klimkowski, 61, of Maple Heights, previously pleaded guilty to after previously pleading Hobbs Act conspiracy, bribery, conspiracy to commit mail fraud, making false statements, tax charges and other crimes.
Klimkowski participated in a scheme with then-Cuyahoga County Auditor Frank Russo in which contracts for commercial appraisal work went to a company that paid bribes to Russo, a portion of which went to Klimkowski. She also got cash and home repairs in exchange for using her position on the school board to steer construction contracts to contractors who paid bribes to her, according to court documents.
She was also ordered to pay $270,302 in restitution. That money will go to Cuyahoga County ($154,000), Maple Heights City Schools ($83,414) and the Internal Revenue Service ($32,888).
“Klimkowski is yet another individual uncovered in a lengthy public corruption investigation that was portraying herself as a public servant through her employment while defrauding the citizens of our community,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office. “The FBI and its partners will continue to root out public corruption, bringing the individuals involved to justice, as demonstrated with more than 60 convictions in this investigation.”
More than 60 people – including two judges, the county auditor and a former county commissioner -- have been convicted in the federal investigation into corruption in Cuyahoga County. Cuyahoga County is the largest county in Ohio and includes Cleveland.
The case was prosecuted by Assistant United States Attorneys Nancy L. Kelley and Antoinette T. Bacon following an investigation by the FBI and IRS – Criminal Investigation.
Former Congressman Richard G. Renzi Sentenced for Extortion and Bribery in Illegal Federal Land SwapRead the Press Release
Former U.S. Congressman Rick Renzi was sentenced today to serve 36 months in prison following his June conviction by a federal jury in Tucson, Ariz., for extortion, bribery, insurance fraud, money laundering and racketeering. Renzi’s co-defendant, James Sandlin, was also sentenced today to serve 18 months in prison for his role in the extortion, bribery and money laundering scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, First Assistant U.S. Attorney Elizabeth A. Strange of the District of Arizona, Special Agent in Charge Douglas G. Price of the FBI’s Phoenix Division, and Special Agent in Charge Dawn Mertz of the Internal Revenue Service – Criminal Investigation (IRS-CI) made the announcement following sentencing by Senior U.S. District Judge David C. Bury.
Renzi, 55, of Burke, Va., and Sandlin, 62, of Sherman, Texas, were convicted on June 11, 2013. Renzi was found guilty of 17 felony offenses including conspiracy, honest services wire fraud, extortion under color of official right, racketeering, money laundering and making false statements to insurance regulators. Sandlin was convicted of 13 felony offenses including conspiracy, honest services wire fraud, extortion under color of official right and money laundering.
“Mr. Renzi abused the power – and the corresponding trust – that comes with being a member of Congress by putting his own financial interests over the interests of the citizens he had sworn to serve,” said Acting Assistant Attorney General Raman. “He fleeced his own insurance company to fund his run for Congress, and then exploited his position for personal gain. Mr. Renzi’s conviction and today’s sentence demonstrate the Justice Department’s commitment to fighting corruption at the highest levels of government.”
“Former Congressman Renzi disregarded his oath to uphold the law, ignoring the interests of the people he was elected to serve in favor of his own interests,” stated First Assistant U.S. Attorney Strange. “The sentences imposed today reinforce the fundamental principle that no one, including an elected official, is above the law.”
“When our elected officials betray the trust of the American people it strikes at the very core of our democracy,” said FBI Special Agent in Charge Price. “The sentencing of former Congressman Rick Renzi illustrates the commitment by the FBI and our law enforcement partners to investigate and prosecute corruption at all levels. Today’s sentencing is a reminder that when a public official violates the public's trust they will be held accountable to the fullest extent of the law.”
“The public expects its elected officials to be honest, to be trustworthy and to show respect for the law," stated IRS Special Agent in Charge Mertz. “Those in public office should be held to a higher standard and are not exempt from criminal prosecution. The prison sentence imposed today should serve as a wake-up call to other public officials who believe there are no consequences for betraying the public trust.”
According to evidence at trial, Renzi, then a member of Congress from Arizona’s 1st Congressional District, promised in 2005 to use his legislative influence to profit from a federal land exchange that involved property owned by Sandlin, a real-estate investor.
At the time, Sandlin owed Renzi $700,000 in future payments from their business dealings, and Renzi threatened proponents of the land exchange that he would not support it unless they purchased Sandlin’s property in Cochise County, Ariz. When they refused, Renzi promised a second proponent of a land exchange that he would support the exchange if they purchased Sandlin’s property. According to an agreement reached in May 2005, Sandlin was paid $1 million in earnest money, out of which he paid $200,000 to Renzi. Just before Sandlin received the $1.6 million balance owed on the exchange, he paid an additional $533,000 to Renzi.
Evidence at trial further showed that from 2001 to 2003, Renzi engaged in insurance fraud by diverting his clients’ insurance premiums to fund his first campaign for Congress, and he subsequently sent false letters to his insurance customers and provided false statements to various state regulators who were investigating his activities.
This case was investigated by the FBI and the Internal Revenue Service – Criminal Investigation. The prosecution was handled by Trial Attorneys David Harbach and Sean Mulryne of the Department of Justice’s Public Integrity Section and Assistant U.S. Attorneys Gary Restaino and James Knapp of the District of Arizona.
Former Congressman Richard G. Renzi Sentenced for Extortion and Bribery in Illegal Federal Land SwapRead the Press Release
WASHINGTON – Former U.S. Congressman Rick Renzi was sentenced today to serve 36 months in prison following his June conviction by a federal jury in Tucson, Ariz., for extortion, bribery, insurance fraud, money laundering and racketeering. Renzi’s co-defendant, James Sandlin, was also sentenced today to serve 18 months in prison for his role in the extortion, bribery and money laundering scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, First Assistant U.S. Attorney Elizabeth A. Strange of the District of Arizona, Special Agent in Charge Douglas G. Price of the FBI’s Phoenix Division, and Special Agent in Charge Dawn Mertz of the Internal Revenue Service – Criminal Investigation (IRS-CI) made the announcement following sentencing by Senior U.S. District Judge David C. Bury.
Renzi, 55, of Burke, Va., and Sandlin, 62, of Sherman, Texas, were convicted on June 11, 2013. Renzi was found guilty of 17 felony offenses including conspiracy, honest services wire fraud, extortion under color of official right, racketeering, money laundering and making false statements to insurance regulators. Sandlin was convicted of 13 felony offenses including conspiracy, honest services wire fraud, extortion under color of official right and money laundering.
“Mr. Renzi abused the power – and the corresponding trust – that comes with being a member of Congress by putting his own financial interests over the interests of the citizens he had sworn to serve,” said Acting Assistant Attorney General Raman. “He fleeced his own insurance company to fund his run for Congress, and then exploited his position for personal gain. Mr. Renzi’s conviction and today’s sentence demonstrate the Justice Department’s commitment to fighting corruption at the highest levels of government.”
“Former Congressman Renzi disregarded his oath to uphold the law, ignoring the interests of the people he was elected to serve in favor of his own interests,” stated First Assistant U.S. Attorney Strange. “The sentences imposed today reinforce the fundamental principle that no one, including an elected official, is above the law.”
“When our elected officials betray the trust of the American people it strikes at the very core of our democracy,” said FBI Special Agent in Charge Price. “The sentencing of former Congressman Rick Renzi illustrates the commitment by the FBI and our law enforcement partners to investigate and prosecute corruption at all levels. Today’s sentencing is a reminder that when a public official violates the public's trust they will be held accountable to the fullest extent of the law.”
“The public expects its elected officials to be honest, to be trustworthy and to show respect for the law," stated IRS Special Agent in Charge Mertz. “Those in public office should be held to a higher standard and are not exempt from criminal prosecution. The prison sentence imposed today should serve as a wake-up call to other public officials who believe there are no consequences for betraying the public trust.”
According to evidence at trial, Renzi, then a member of Congress from Arizona’s 1st Congressional District, promised in 2005 to use his legislative influence to profit from a federal land exchange that involved property owned by Sandlin, a real-estate investor.
At the time, Sandlin owed Renzi $700,000 in future payments from their business dealings, and Renzi threatened proponents of the land exchange that he would not support it unless they purchased Sandlin’s property in Cochise County, Ariz. When they refused, Renzi promised a second proponent of a land exchange that he would support the exchange if they purchased Sandlin’s property. According to an agreement reached in May 2005, Sandlin was paid $1 million in earnest money, out of which he paid $200,000 to Renzi. Just before Sandlin received the $1.6 million balance owed on the exchange, he paid an additional $533,000 to Renzi.
Evidence at trial further showed that from 2001 to 2003, Renzi engaged in insurance fraud by diverting his clients’ insurance premiums to fund his first campaign for Congress, and he subsequently sent false letters to his insurance customers and provided false statements to various state regulators who were investigating his activities.
This case was investigated by the FBI and the Internal Revenue Service – Criminal Investigation. The prosecution was handled by Trial Attorneys David Harbach and Sean Mulryne of the Department of Justice’s Public Integrity Section and Assistant U.S. Attorneys Gary Restaino and James Knapp of the District of Arizona.
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Five Virginia Charter Fishing Boat Captains Sentenced for Lacey Act ViolationsRead the Press Release
Nolan L. Agner, the last of five Virginia Beach charter fishing boat captains convicted of poaching Atlantic striped bass was sentenced today in federal court in Norfolk, Va. All five captains – including Agner, Jeffery S. Adams, Raymond Carroll Webb, David Dwayne Scott, and William W. “Duby” Lowery IV – were sentenced for violating the Lacey Act by selling illegally-harvested striped bass, the Justice Department announced.
“As charter boat captains, these men had an obligation to know and follow the laws that protect this natural resource from overharvesting,” said Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “Their illegal poaching of striped bass gave them an unfair economic advantage over law abiding fisherman and irresponsibly posed a threat to this food supply. “With these sentences, they will pay the price by serving jail time or receiving probation, as well as paying fines, surrendering their captain’s license, or having their operations closely monitored or curtailed.”
In 1984, Congress passed the Atlantic Striped Bass Conservation Act, recognizing that “Atlantic striped bass are of historic commercial and recreational importance and economic benefit to Atlantic coastal States and to the Nation,” and that it “is in the national interest to implement effective procedures and measures to provide for effective inter-jurisdictional conservation and management of this species.” Since 1990, the Secretary of Commerce has imposed a moratorium on fishing for striped bass within the exclusive economic zone (EEZ), the zone where the U.S. and other coastal nations have jurisdiction over economic and resource management. The moratorium makes it unlawful to fish for or harvest striped bass in the EEZ. The moratorium also makes it unlawful to retain any striped bass that were taken in or from the EEZ.
The Lacey Act makes it unlawful for any person to import, export, transport, sell, receive, acquire or purchase any fish or wildlife taken, possessed, transported or sold in violation of any law or regulation of the United States, or to attempt to do so. Such conduct constitutes a felony crime if the market value of the fish or wildlife is in excess of $350. Under the Lacey Act, it is a “sale” of fish or wildlife for any person, for money or other consideration, to offer or provide guiding, outfitting, or other services.
Each of the captains, all of whom operated charters out of Rudee Inlet in Virginia Beach, was charged separately on Nov. 8, 2012, with violating the Lacey Act by selling charter fishing trips to harvest striped bass illegally from the EEZ, among other charges.
Today, Agner, captain of the Flat Line, having previously pleaded guilty to violating the Lacey Act, was sentenced to pay a $3,500 fine. He and his corporation, Agner, Inc., were also placed on three years’ probation with special conditions requiring them to purchase and maintain a Vessel Monitoring System (VMS) device on any vessel that they own or operate for fishing purposes during the term of probation.
The other four defendants all previously pleaded guilty to violating the Lacey Act and have been sentenced:On, April 25, 2013, Scott, captain of the Stoney’s Kingfisher, was sentenced to a $5,600 fine and $1,900 in restitution to the National Oceanic and Atmospheric Administration (NOAA). Scott was also sentenced to three years’ probation with special conditions prohibiting Scott from engaging in either the charter or commercial fishing industries, anywhere in the world, in any capacity, during the term of his probation. Scott is prohibited not only from captaining a vessel, but also rendering any assistance, support, or other services, with or without compensation, for other charter or commercial fishermen.
Also on April 25, 2013, Adams, captain of the Providence II, and his corporation Adams Fishing Adventures, were sentenced to three years’ probation with special conditions requiring them to apply for and receive a Federal Fisheries permit, and to purchase and install a VMS device on any vessel that they own or operate during the term of probation.
On May 30, 2013, Lowery, captain of the Anna Lynn, was sentenced to 30 days’ in jail, followed by 12 months of supervised release with the special conditions that Lowery surrender his captain’s license to the U.S. Coast Guard and that he not be eligible for reinstatement of that license. Lowery is also prohibited from engaging in the charter fishing industry in any capacity during the term of his supervised release.
On July 2, 2013, Webb, captain of the Spider Webb, and his corporation Peake Enterprises were sentenced to pay a $3,000 fine and $1,000 restitution to NOAA. Webb and Peake Enterprises were also sentenced to three years’ probation with special conditions requiring them to apply for and receive a Federal Fisheries permit, and to purchase and install a VMS device on any vessel that they own or operate during the term of probation.
This case was investigated by NOAA’s Office of Law Enforcement and the Virginia Marine Police with assistance from the Federal Communications Commission Enforcement Bureau, Norfolk Office. Assistant U.S. Attorney Stephen W. Haynie of the United States Attorney’s Office for the Eastern District of Virginia and Trial Attorney James B. Nelson of the Department of Justice’s Environmental Crimes Section of the Environment and Natural Resources Division prosecuted the case on behalf of the United States.
Federal Jury Convicts Dallas Man in Massive Stolen Identity Refund Fraud SchemeRead the Press Release
Defendant and Co-Conspirators Attempted to Fraudulently Obtain Millions of Dollars in Tax Refunds for Their Own Use and Benefit
DALLAS, Texas — After a nearly week-long trial before U.S. District Judge Barbara M. G. Lynn, a federal jury in Dallas has convicted Ogiesoba City Osula, 37, of Dallas, on all 16 counts of a second superseding indictment charging various offenses stemming from his role in a conspiracy to use stolen identities to fraudulently obtain federal income tax refunds. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Osula’s four defendants charged in the case have entered guilty pleas:
George Ojonugwa, 32, of Garland, Texas; Eseos Igiebor, 43, of Richardson, Texas; and Ebenezer Legbedion, 42, of Lagos, Nigeria; each pleaded guilty to one count of conspiracy to commit wire fraud. Igiebor also pleaded guilty to one count of aggravated identity theft. Evelyn Nyaboke Haley, 34, of Dallas, pleaded guilty to one count of conspiracy to defraud the government with respect to claims.
Specifically, late Friday afternoon, the jury convicted Osula on one count of conspiracy to commit wire fraud, mail fraud and bank fraud; seven counts of presenting fraudulent claims upon the United States; two counts of fraud in connection with access devices and aiding and abetting; and six counts of aggravated identity theft and aiding and abetting.
The maximum statutory penalties, per count, are: conspiracy to commit wire fraud, mail fraud and bank fraud – 30 years; fraud in connection with access devices – 15 years; and aggravated identity theft – two years. In addition, each count carries a fine of up to $250,000 and restitution could be ordered.
The government presented evidence at trial that Osula conspired to defraud the government by using stolen identity information and false information to create and electronically file false tax returns to fraudulently claim refunds. Osula and his coconspirators had the refunds credited to stored value cards or bank accounts opened with stolen taxpayer identity information. While Osula and his co-conspirators fraudulently obtained millions of dollars in tax refunds, they filed additional fraudulent returns in an attempt to obtain millions more in tax refunds for their own use and benefit.
The government also presented evidence that Osula and his coconspirators were sending information to and trading information with a group running a similar scheme in Cincinnati, Ohio. On Nov. 8, 2011, Osula and Ojonugwa, who were in a parked car after midnight with the leader of the Cincinnati ring, were questioned by police in a Cincinnati suburb. A drug detection dog alerted on the vehicle, and when it was searched, police found more than $300,000 in cash and money orders and numerous debit cards. During that incident, while Osula was in a police car and waiting to be questioned, he ate a debit card.
According to documents filed in this case and statements made in court:
Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that results in more than $2 billion in losses annually to the United States Treasury. SIRF schemes generally share a number of hallmarks:
- SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals.
- SIRF perpetrators complete Individual Income Tax Return Form using the fraudulently-obtained information and falsifying wages earned, taxes withheld and other data. Perpetrators use data to make it appear that the “taxpayers” listed on the fraudulent 1040 forms are entitled to tax refunds – when in fact, the various tax withholdings indicated on the fraudulent 1040s have not been paid by the listed “taxpayers,” and no refunds are due.
- Perpetrators direct the U.S. Treasury Department to issue the refunds through checks (Tax Refund Treasury Checks) generated by the fraudulent 1040 forms to locations they control or can access, in various ways.
- With Tax Refund Treasury Checks now in hand, SIRF perpetrators generate cash proceeds. Certain SIRF perpetrators sell Tax Refund Treasury Checks at a discount to face value. In turn, the buyers then cash the Tax Refund Treasury Checks, either themselves or using straw account holders, by cashing checks at banks or check cashing businesses, or by depositing checks into bank accounts. When cashing or depositing Tax Refund Treasury Checks, SIRF perpetrators often present false or fraudulent identification documents in the names of the “taxpayers” to whom the checks are payable.
The investigation was conducted by IRS Criminal Investigation and the FBI. Assistant U.S. Attorneys Mark Penley, Christopher Stokes and P.J. Meitl are prosecuting.
FEMA fraud charges for Hurricane Sandy disaster reliefRead the Press Release
Complaint 1: FEMA fraud charges for Hurricane Sandy disaster relief
Complaint 2: FEMA fraud charges for Hurricane Sandy disaster relief
Complaint 3: FEMA fraud charges for Hurricane Sandy disaster reliefEquity Trader Indicted on Securities Fraud ChargesRead the Press Release
Defendant Worked for Cushing MLP Asset Management, LP in Dallas
DALLAS — Daniel Lutz Bergin, 41, of Dallas, made his initial appearance this afternoon in federal court in Dallas, following his self-surrender on an indictment charging 15 counts of securities fraud, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Bergin entered a not guilty plea to the indictment. He was ordered released on his own promise to appear, subject to certain conditions, including that he refrain from working in the financial services industry while on pretrial release. A trial date was not set.
According to the indictment, from 2008 to May 23, 2013, Bergin was an equity trader employed by Cushing MLP Asset Management, LP (Cushing), an investment advisor located on Preston Road in Dallas. Cushing was a wholly owned subsidiary of Swank Capital, LLC and had approximately $2.5 billion in discretionary assets under management. Cushing provided advisory and portfolio management services to institutional clients, including high net worth individuals, investment companies, pooled investment vehicles, pension and profit sharing plans, charitable organizations and state/municipal government entities.
Primarily, Cushing invested client assets in energy infrastructure master limited partnerships (MLPs) that are traded on stock exchanges, royalty trusts and other energy-income investments. Cushing has established policies and procedures, including a Code of Ethics, in compliance with regulatory requirements, that explicitly prohibit insider trading and outline restrictions on personal securities transactions by Cushing employees.
The indictment alleges that beginning in at least January 2010, until his termination on May 23, 2013, Bergin ran a “front-running” scheme in which he misused “inside” or “material, non-public” information when placing trades in a personal brokerage account held in his wife’s name. This scheme allowed Bergin to take advantage of limited opportunities to buy and sell the same securities in which he was placing trades on behalf of Cushing’s clients’ and proprietary accounts. Although Bergin disclosed certain personal brokerage accounts held in his name at Fidelity and Scottrade, he failed to disclose brokerage accounts in his wife’s name at Fidelity and eTrade.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the maximum penalty for each count of securities fraud, as charged, is 25 years in federal prison, a $250,000 and restitution.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The investigation is being conducted by the FBI. Assistant U.S. Attorney J. Nicholas Bunch is in charge of the prosecution.
(Download Factual Basis)