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17 December 2013
Ocean County, N.J., Woman Sentenced to Two Years in Prison for Bankruptcy FraudRead the Press Release
TRENTON, N.J. - An Ocean County, N.J., woman was sentenced today to 24 months in prison for concealing from a bankruptcy trustee profits she had made on a Ponzi scheme investment, U.S. Attorney Paul J. Fishman announced.
Marjorie Parise, 51, of Manahawkin, N.J., previously pleaded guilty before U.S. District Judge Freda L. Wolfson to one count of bankruptcy fraud. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court: In 2003, Parise and her husband invested approximately $115,750 with a company known as Global Trading Investments LLC and received in return profits totaling $429,154.91. However, the owners of Global Trading were operating a Ponzi scheme and the profits that Parise received were actually the investments of other individuals. Global Trading subsequently filed for Chapter Seven bankruptcy protection.
On Aug. 24, 2006, a judgment was entered against Parise requiring her to return the profits she had made from her investments in the scheme. Parise instead took numerous steps to fraudulently conceal a significant amount of funds and assets from the trustee, including making false statements and omissions during a deposition in the bankruptcy proceeding.
From Sept. 14, 2006, through Dec. 8, 2006, she also withdrew at least $455,850 in cash from the bank accounts that had not been disclosed to the trustee. Parise made 67 currency withdrawals, none of which exceeded the $10,000 threshold for the filing of Currency Transaction Reports. In November 2006, Parise transferred ownership of her residence from her name only to the names of both her and her husband and increased the home equity line of credit on the home.
On July 7, 2008, Parise filed for individual Chapter Seven bankruptcy protection. On her bankruptcy petition, she fraudulently failed to report millions of dollars in real estate holdings plus hundreds of thousands of dollars in personal assets.
In addition to the prison term, Judge Wolfson sentenced Parise to three years of supervised release and ordered her to pay $353,404 in restitution.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen in Newark, for the investigation.
The government is represented by Assistant U.S. Attorney R. Joseph Gribko of the U.S. Attorney=s Office in Trenton.
13-470
Defense counsel: Michael Pinsky Esq., Haddon Township, N.J.North Port Couple Charged with Conspiring to Defraud the IRS and Filing False Tax Refund ClaimsRead the Press Release
Tampa, FL – Acting United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging James Dee Jaeger (62) and Lora Anne Jaeger (50), both of North Port, with one count of conspiracy to defraud the Internal Revenue Service (“IRS”) and seven counts of causing false and fraudulent claims for tax refunds to be filed with the IRS. If convicted on all counts, each faces a maximum penalty of five years in federal prison for the conspiracy charge and five years’ imprisonment for each false claim charge.
According to the indictment, the Jaegers devised and participated in a scheme to help “taxpayers,” including themselves, obtain fraudulent tax refunds from the IRS. The scheme was premised upon the “redemption theory,” which is a fraudulent notion that individuals are not responsible for their common personal debt obligations such as home mortgages, unpaid credit card bills, and lines of credit, and may instead seek money from the IRS to repay these outstanding obligations. Collectively, at least fifteen tax returns were filed as part of the scheme, seeking refunds totaling $2,583,207.70. The indictment further alleges that the Jaegers instructed taxpayers on how to conceal fraudulent tax refunds and how to frustrate the lawful collection efforts of the IRS.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It will be prosecuted by Assistant United States Attorney Matthew J. Mueller.
New Orleans Elevation Company and Its Owner, Ramon Santos, Sentenced for Conspiracy to Commit Money LaunderingRead the Press Release
RENDON CONSTRUCTION, LLC, a New Orleans-based house raising, leveling, and foundation repair company, and its owner, RAMON SANTOS, age 43, a resident of Kenner, were sentenced today in federal court today before U. S. District Judge Jay C. Zainey for conspiring to commit money laundering, announced U.S. Attorney Kenneth Allen Polite, Jr. RENDON was sentenced to two years of organizational probation and a special assessment of $400. SANTOS was sentenced to three years of probation and a $100 special assessment. The Court declined to impose a fine on either defendant because they had agreed to forfeit $281,810 to the United States.
According to court documents, between April 2011 and July 2011, RENDON and SANTOS conspired with each other to conduct financial transactions designed to conceal and disguise the nature and source of the proceeds of harboring, encouraging and inducing aliens to reside in the United States, and to promote the harboring, encouraging and inducing aliens. In furtherance of the conspiracy, RENDON, through SANTOS, issued checks amounting to approximately $281,810 to Diablo Construction, a shell company. Those checks, which represented the proceeds of harboring, encouraging and inducing aliens to reside in the United States through employment at RENDON job sites, were cashed by SANTOS, and the cash was used to pay RENDON's illegal alien workers.
"The use of illegal labor and schemes to obscure such conduct prevents honest businesses from competing on a level playing field against those who break the law," stated U. S. Attorney Polite.
"Companies that violate federal law by employing workers illegally 'under the table' gain an unfair advantage over businesses that play by the rules," said Raymond R. Parmer Jr., special agent in charge of HSI New Orleans. "HSI is committed to investigating and seeking prosecution of illegal employment practices to protect the legitimate workers and businesses that support our nation’s economy."
The case was investigated by Homeland Security Investigations (HSI), with the assistance of the Internal Revenue Service (IRS). The case was prosecuted by Special Assistant U. S. Attorney Robert Weir and Assistant U.S. Attorney David Haller.
New Jersey Ophthalmologist Admits Lying to Federal Agents During Fraud Investigation About Reuse of Lucentis VialsRead the Press Release
NEWARK, N.J. - An ophthalmologist with a medical practice in Englewood, N.J., admitted today to lying to federal agents during a health care fraud investigation into the reuse of single-use vials of prescription Lucentis medication for multiple patients, U.S. Attorney Paul J. Fishman announced.
Bernard J. Fowler, 68, of Mahwah, N.J., pleaded guilty to an information charging him with making false statements to federal agents with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). He entered his plea before U.S. District Judge Susan D. Wigenton in Newark federal court.
According to documents filed in this case and statements made in court: Fowler was a licensed and board-certified ophthalmologist, operating his own medical practice called Retina Vitreous Consultants, when he was interviewed by HHS-OIG special agents on July 27, 2011. Fowler no longer operates the practice.
During his guilty plea, Fowler admitted that in 2008 and 2009, he had administered injections from one vial of Lucentis to more than one patient on multiple occasions, but told the investigating agents that he had not. Fowler admitted he knew the statement was false and he intended to deceive the agents.
In addition to the potential health risks of reusing single-use vials on multiple individuals, such reuse can generate fraudulent billings to patients and insurers based on the approximately $2,000 cost of a full vial.
The false statements charge carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is scheduled for March 24, 2014.
U.S. Attorney Fishman credited special agents of HHS-OIG, under the direction of Special Agent in Charge Thomas O’Donnell, and the FBI, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorneys Scott B. McBride and R. David Walk of the U.S. Attorney’s Office’s Health Care and Government Fraud Unit.
13-467
Defense counsel: David M. Laigaie Esq., PhiladelphiaFowler, Bernard Information
New Jersey Doctor Sentenced to More Than 11 Years for Writing Illegal Oxycodone Prescriptions in Drug Distribution ConspiracyRead the Press Release
Also Ordered to Pay Approximately $630,000 in Fines and Forfeiture
NEWARK, N.J. - An internal medicine specialist who wrote illegal prescriptions for oxycodone was sentenced today to 136 months in prison for his role in a conspiracy that put tens of thousands of prescription pills on the streets for resale, U.S. Attorney Paul J. Fishman announced.
Michael Durante, 59, of Montclair, N.J., was previously convicted at trial of 16 of the 17 counts in the superseding indictment against him: one count of conspiracy to distribute oxycodone and 15 counts of unlawful distribution of the drug. The jury returned the verdict on the second day of deliberations following a nearly three-month trial before U.S. District Judge Stanley R. Chesler. Judge Chesler imposed the sentence today in Newark federal court.
According to the evidence at trial:
Between July 2009 and March 2011, Durante sold prescriptions for more than 80,000 oxycodone pills to patients who were engaged in drug trafficking. The street-level redistribution of the pills prescribed by Durante was accomplished primarly by two “crews,” one headed by Andre Domando, 49, of Belleville, N.J., and the other by Dennis Abato, 61, of Lakewood, N.J., who each had a stable of patients they brought to Durante’s medical practice in Nutley, N.J. Durante gave them prescriptions for large quantities of oxycodone that would ultimately be sold through the redistribution network.
Recordings played at trial illustrated Durante’s understanding of the illegal distribution he facilitated. For example, in an February 2011 recording, Durante said he knew Domando was reselling the prescriptions for a large profit, stating, “I just know because my friend does the same thing you do. He sells these for a thousand to twelve hundred dollars a bottle.” Durante, referring to prescriptions he provided to Domando over the previous week, then stated “[s]o two last week, four this week – you should have six thousand dollars in your pocket,” adding, “I know what people do with these things. You gotta have at least twelve, fifteen thousand dollars a month of income here.”
Durante was also captured on tape accepting $300 from Domando in exchange for prescriptions, as well as $100 for an extra prescription he sold to an undercover agent. At trial, a witness testified that he delivered envelopes of cash to Durante in exchange for extra prescriptions.
Additionally, Durante falsified medical records in the files of the patients who received the oxycodone prescriptions. For example, Durante falsely documented physical exams, including blood pressure and heart rates, of a patient who was in Florida at the time of Durante’s purported exam. Durante repeatedly omitted from the progress notes for patients many of the additional prescriptions he had sold, or falsely wrote that prescriptions had been provided to replace lost prescriptions – including one note that a dog may have eaten replacement prescriptions he provided to Domando.
In addition to the prison term, Judge Chesler sentenced Durante to three years of supervised release and ordered him to pay $629,461 in restitution. Durante is also required to pay a $4,000 fine. Judge Chesler sentenced Domando to 48 months in prison in November 2013. Abato awaits sentencing.
U.S. Attorney Fishman credited the New Jersey DEA Tactical Diversion Squad, made up of DEA special agents, diversion investigators and intelligence analysts; FBI and IRS-Criminal Investigation special agents; and law enforcement officers from the Essex County Sheriff’s Department and the Elizabeth, Clinton Township (Hunterdon County), Toms River and Newark Police Departments with the investigation.The government is represented by Assistant U.S. Attorneys Anthony Mahajan and Osmar J. Benvenuto of the U.S. Attorney’s Office Criminal Division, and Marion Percell of the Office’s Asset Forfeiture and Money Laundering Unit, in Newark.
13-469
Defense counsel: Cathy Fleming and Harold Ruvoldt Esqs., New YorkNcis Agent Pleads Guilty in International Navy Bribery Scandal; Admits Acting as Mole for Foreign Defense Contractor in Asia PacificRead the Press Release
SAN DIEGO, CA – A special agent with the Naval Criminal Investigative Service (NCIS) pleaded guilty today to participating in a massive international fraud and bribery scheme, admitting he shared with a foreign Navy contractor confidential information about ongoing criminal probes into the contractor’s billing practices in exchange for prostitutes, cash and luxury travel.
U.S. Attorney Laura E. Duffy of the Southern District of California and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division made the announcement after the plea was entered before U.S. Magistrate Judge Jan Adler. The plea is subject to acceptance by U.S. District Judge Janis Sammartino. Sentencing was set for March 7 at 9 a.m. before Judge Sammartino.
In his plea agreement, Supervisory Special Agent John Bertrand Beliveau Jr., 44, pleaded guilty to conspiracy to commit bribery, which carries a maximum penalty of five years in prison, and bribery, which carries a maximum penalty of 15 years in prison. In his plea agreement, Beliveau acknowledged that he regularly searched confidential NCIS databases for reports of investigations related to the contractor, Leonard Glenn Francis, chief executive of Singapore-based Glenn Defense Marine Asia (GDMA). Beliveau admitted that, over the course of years, he helped Francis dodge multiple criminal investigations by providing copies of these reports plus advice and counsel on how to respond to, stall, and thwart the NCIS probes.
Beliveau is one of five Navy officials and civilian contractors who are implicated so far in the widening corruption case involving hundreds of millions of dollars of Navy contracts. In addition to Beliveau and Francis, also charged are U.S. Navy Commanders Michael Vannak Khem Misiewicz and Jose Luis Sanchez and GDMA executive Alex Wisidagama. The charges against Francis, Misiewicz, Sanchez and Wisidagama are merely allegations, and the defendants are presumed innocent until and unless proven guilty.
“Instead of doing his job, John Beliveau was leaking confidential details of investigations to the target himself,” said U.S. Attorney Laura Duffy. “This is an audacious violation of law for a decorated federal agent who valued personal pleasure over loyalty to his colleagues, the U.S. Navy and ultimately his own country. His admissions are a troubling reminder that corruption may exist even among those entrusted with protecting our citizens and upholding our laws.”
U.S. Attorney Duffy praised law enforcement partners, and in particular she acknowledged Defense Criminal Investigative Service, NCIS and the Navy for taking extraordinary measures to weed out corruption from its ranks. “The Navy has extended enormous cooperation and assistance in this investigation, and we have worked closely to achieve justice, to protect national security and to safeguard American defense dollars.”
“Today, John Beliveau has admitted to accepting lavish gifts in exchange for revealing sensitive law enforcement information to a primary target of this massive bribery investigation," said Acting Assistant Attorney General Raman. “For nearly two years, Beliveau deliberately leaked the names of cooperating witnesses, reports of witness interviews, and plans for future investigative steps. Through his corrupt conduct, Beliveau helped the target of the investigation evade the reach of law enforcement, and cost the U.S. Navy millions of dollars. Thanks to the Navy's extensive cooperation and assistance, and the hard work of the NCIS and DCIS agents assigned to this ongoing investigation, we have now been able to hold him to account.”
“John Beliveau's reprehensible actions, providing sensitive information to the targets of ongoing fraud investigations and accepting bribes, tragically tarnished his NCIS badge,” said NCIS Director Andrew Traver. “Nevertheless, the tireless and dedicated work of NCIS and DCIS effectively brought this to a halt, and these agencies continue to vigilantly protect Department of Navy personnel and resources.”
“Today's guilty plea of former NCIS Special Agent John Beliveau is part of an ongoing joint effort by the Defense Criminal Investigative Service, the Naval Criminal Investigative Service and our enforcement partners to identify, investigate and bring to justice those seeking to enrich themselves at the expense of U.S. taxpayers,” said James B. Burch, Deputy Inspector General for Investigations, Office of the Inspector General, Department of Defense. “While the conduct of a vast majority of those in the U.S. Navy and law enforcement community is beyond reproach, we will vigorously pursue those individuals who put the safety and security of U.S. Navy personnel at risk. The conduct of former Special Agent Beliveau is reprehensible and today's guilty plea demonstrates the Defense Criminal Investigative Service will continue to pursue allegations of fraud and corruption that puts the Warfighter at risk.”
According to the plea agreement, Beliveau’s criminal conduct began in January of 2011 when he was stationed in Singapore, and continued for more than two years, even after Beliveau returned to the NCIS office in Quantico, Virginia, in April of 2012.
Among the law enforcement-sensitive information provided by Beliveau to Francis were the identities of the subjects of the investigations; information about witnesses, including identifying information about cooperating witnesses and their testimony; the particular aspects of GDMA’s billings that were of concern to the investigations; the fact that the investigations had obtained numerous email accounts and the identities of those accounts; the particulars about bank records and financial information sought by the investigations; the reports to prosecutors and their interactions with the investigations; and planned future investigative activities.
According to information provided in court, when authorities became aware of Beliveau’s duplicity, they began planting bogus reports in the system, including one that falsely indicated the investigations of Francis were going to be closed. Soon after that, an emboldened Francis came to San Diego from Singapore for a meeting with Navy brass, and Francis was arrested. Beliveau was taken into custody the same day in Virginia.
All told, Beliveau leaked information to Francis about criminal investigations into GDMA’s overbilling scheme that cost the Navy at least $7 million in fraudulent overpayments for “husbanding” services such as food, fuel and other supplies and services to the ships, according to the plea agreement.
In return for leaks of internal NCIS information and advice from Beliveau, Francis allegedly provided the agent with envelopes containing cash on at least five occasions, along with luxury travel from Virginia to Singapore, the Philippines and Thailand, the plea agreement stated. On many occasions, beginning in 2008 and continuing through 2012 while Beliveau was posted in Singapore, Francis allegedly provided the NCIS agent with prostitutes, lavish dinners, entertainment and alcohol at high-end nightclubs. The tab for each of these outings routinely ran into the thousands of dollars.
According to court records, in April of 2012 Beliveau complained to Francis, saying, “You give whores more money than you give me,” and, “I can be your best friend or worst enemy.”
Beliveau admitted that he and Francis tried to hide their illicit activity by employing techniques that Beliveau had learned from his specialized training as a law enforcement agent. These steps included deleting emails, changing email accounts, creating covert email accounts shared by Beliveau and Francis, not transferring funds through the normal banking channels, and using Skype chat and calls to transmit information.
This ongoing investigation is being conducted by NCIS, the Defense Criminal Investigative Service (DCIS) and the Defense Contract Audit Agency. Significant assistance was provided by the Drug Enforcement Administration, Homeland Security Investigations and the DOJ Criminal Division’s Office of International Affairs, the Royal Thai Police and the Corrupt Practices Investigation Bureau Singapore. This case is being prosecuted by Assistant U.S. Attorneys Mark Pletcher and Robert Huie of the Southern District of California and Director of Procurement Fraud Catherine Votaw and Trial Attorney Brian Young of the Criminal Division’s Fraud Section, as well as Special Trial Attorney Wade Weems on detail to the Fraud Section.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tipline at www.ncis.navy.mil, or the DoD Hotline at www.dodig.mil/hotline or should call (800) 424-9098.
DEFENDANT Case Number: 13-MJ-3456
John Bertrand Beliveau II SUMMARY OF CHARGESConspiracy to Commit Bribery in violation of 18 U.S.C. § 371
Maximum of 5 years in prison; a maximum $250,000 fine, or twice the gross gain or loss from the offense, whichever is greaterBribery in violation of 18 U.S.C. § 201
INVESTIGATING AGENCIES
Maximum of 15 years in prison; a maximum fine of $250,000, twice the gross gain or loss from the offense, or three times the monetary equivalent of the thing of value, whichever is greater.Defense Criminal Investigative Service
Naval Criminal Investigative Service
Homeland Security InvestigationsNavajo Man Sentenced to Federal Prison for Child Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – George Nez, 71, an enrolled member of the Navajo Nation who resides in Mexican Springs, N.M., entered a guilty plea this morning to a child sex abuse charge and was sentenced to 30 months in federal prison to be followed by ten years of supervised release. Nez will be required to register as a sex offender when he completes his prison sentence.
Nez was indicted in March 2011 and charged with three counts of abusive sexual contact of a child under the age of 12. The indictment alleged that Nez had sexual contact with a child under the age of 12 on three occasions at a location within the Navajo Indian Reservation between June 2009 and Sept. 2009. Court filings reflect that the child victim reported the abuse to a parent in Jan. 2011, and the parent contacted law enforcement authorities prompting the investigation that led to the filing of charges against Nez.
This morning, Nez pled guilty to Count 1 of the indictment charging him with abusive sexual contact and admitted knowingly engaging in sexual contact with a child under the age of 12 years by touching the child’s genitals. Nez acknowledged that he committed this offense between June 1, 2009 and Sept. 1, 2009. Nez was sentenced immediately after entering his guilty plea.
This case was investigated by the Gallup office of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorney Charles L. Barth.
NCIS Agent Pleads Guilty in International Navy Bribery ScandalRead the Press Release
A special agent with the Naval Criminal Investigative Service (NCIS) pleaded guilty today to participating in a massive international fraud and bribery scheme, admitting he shared with a foreign Navy contractor confidential information about ongoing criminal probes into the contractor’s billing practices in exchange for prostitutes, cash and luxury travel.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Laura E. Duffy of the Southern District of California, Director Andrew Traver of the Naval Criminal Investigative Service, and Deputy Inspector General for Investigations James B. Burch of the U.S. Department of Defense Office of the Inspector General made the announcement after the plea was accepted by U.S. Magistrate Judge Jan Adler of the Southern District of California. The plea is subject to acceptance by U.S. District Judge Janis Sammartino. Sentencing is set for March 9, 2014, before Judge Sammartino.
Supervisory Special Agent John Bertrand Beliveau Jr., 44, pleaded guilty to conspiracy to commit bribery, which carries a maximum penalty of five years in prison, and bribery, which carries a maximum penalty of 15 years in prison. In his plea agreement, Beliveau acknowledged that he regularly searched confidential NCIS databases for reports of investigations related to the contractor, Leonard Glenn Francis, chief executive of Singapore-based Glenn Defense Marine Asia (GDMA). Beliveau admitted that, over the course of years, he helped Francis avoid multiple criminal investigations by providing copies of these reports plus advice and counsel on how to respond to, stall and thwart the NCIS probes. This duplicity began while Beliveau was stationed in Singapore and continued for more than a year after Beliveau returned to the NCIS office in Quantico, Va.
Beliveau is one of five Navy officials and civilian contractors who are implicated so far in the widening corruption case involving hundreds of millions of dollars in Navy contracts. In addition to Beliveau and Francis, also charged are U.S. Navy Commanders Michael Vannak Khem Misiewicz and Jose Luis Sanchez and GDMA executive Alex Wisidagama. The charges against Francis, Misiewicz, Sanchez and Wisidagama are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
“Today, John Beliveau has admitted to accepting lavish gifts in exchange for revealing sensitive law enforcement information to a primary target of this massive bribery investigation,” said Acting Assistant Attorney General Raman. “For nearly two years, Beliveau deliberately leaked the names of cooperating witnesses, reports of witness interviews, and plans for future investigative steps. Through his corrupt conduct, Beliveau helped the target of the investigation evade the reach of law enforcement, and cost the U.S. Navy millions of dollars. Thanks to the Navy’s extensive cooperation and assistance, and the hard work of the NCIS and DCIS agents assigned to this ongoing investigation, we have now been able to hold him to account.”
“Instead of doing his job, John Beliveau was leaking confidential details of investigations to the target himself,” said U.S. Attorney Duffy. “This is an audacious violation of law for a decorated federal agent who valued personal pleasure over loyalty to his colleagues, the U.S. Navy and ultimately his own country. His admissions are a troubling reminder that corruption may exist even among those entrusted with protecting our citizens and upholding our laws.”
“John Beliveau's reprehensible actions, providing sensitive information to the targets of ongoing fraud investigations and accepting bribes, tragically tarnished his NCIS badge,” said NCIS Director Traver. “Nevertheless, the tireless and dedicated work of NCIS and DCIS effectively brought this to a halt, and these agencies continue to vigilantly protect Department of Navy personnel and resources.”
“Today’s guilty plea of former NCIS Special Agent John Beliveau is part of an ongoing joint effort by the Defense Criminal Investigative Service, the Naval Criminal Investigative Service and our enforcement partners to identify, investigate and bring to justice those seeking to enrich themselves at the expense of U.S. taxpayers,” said Deputy Inspector General for Investigations Burch. “While the conduct of a vast majority of those in the U.S. Navy and law enforcement community is beyond reproach, we will vigorously pursue those individuals who put the safety and security of U.S. Navy personnel at risk. The conduct of former Special Agent Beliveau is reprehensible and today’s guilty plea demonstrates the Defense Criminal Investigative Service will continue to pursue allegations of fraud and corruption that puts the Warfighter at risk.”
Among the law enforcement-sensitive information provided by Beliveau to Francis were the identities of the subjects of the investigations; information about witnesses, including identifying information about cooperating witnesses and their testimony; the particular aspects of GDMA’s billings that were of concern to the investigations; the fact that the investigations had obtained numerous email accounts and the identities of those accounts; the reports to prosecutors and their interactions with the investigations; and planned future investigative activities.
According to information provided in court, when authorities became aware of Beliveau’s duplicity, they began tracking Beliveau’s efforts to misappropriate information from the criminal investigation and then provide it to Francis. Soon after that, Francis came to San Diego from Singapore for a meeting with Navy brass, where Francis was arrested. Beliveau was taken into custody the same day in Virginia.
All told, Beliveau leaked information to Francis about criminal investigations into GDMA’s overbilling scheme that cost the Navy at least $7 million in fraudulent overpayments for “husbanding” services such as food, fuel and other supplies and services to the ships, according to the plea agreement.
In return for leaks of internal NCIS information and advice from Beliveau, Francis allegedly provided the agent with envelopes containing cash on at least five occasions, along with luxury travel from Virginia to Singapore, the Philippines and Thailand, the plea agreement stated. On many occasions, beginning in 2008 and continuing through 2012 while Beliveau was posted in Singapore, Francis allegedly provided the NCIS agent with prostitutes, lavish dinners, entertainment and alcohol at high-end nightclubs. The tab for each of these outings routinely ran into the thousands of dollars.
According to court records, in April of 2012 Beliveau complained to Francis, saying, “You give whores more money than you give me,” and, “I can be your best friend or worst enemy.”
Court records state that Beliveau and Francis tried to hide their illicit activity by employing techniques that Beliveau had learned from his specialized training as a law enforcement agent. These steps included deleting emails, changing email accounts, creating covert email accounts shared by Beliveau and Francis, not transferring funds through the normal banking channels and using Skype chat and calls to transmit information.
This ongoing investigation is being conducted by NCIS, the Defense Criminal Investigative Service (DCIS) and the Defense Contract Audit Agency. Significant assistance was provided by the Drug Enforcement Administration, Homeland Security Investigations and the DOJ Criminal Division’s Office of International Affairs, the Royal Thai Police and the Corrupt Practices Investigation Bureau Singapore. This case is being prosecuted by Assistant U.S. Attorneys Mark Pletcher and Robert Huie of the Southern District of California and Director of Procurement Fraud Catherine Votaw and Trial Attorney Brian Young of the Criminal Division’s Fraud Section, as well as Special Trial Attorney Wade Weems on detail to the Fraud Section from the Special Inspector General for Afghan Reconstruction.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tipline at www.ncis.navy.mil or the DoD Hotline at www.dodig.mil/hotline , or call (800) 424-9098.Morris County, N.J., Doctor Admits Taking Cash Kickbacks for Patient ReferralsRead the Press Release
NEWARK, N.J. – A Morris County, N.J., doctor practicing internal medicine admitted today to taking cash kickbacks for making referrals to a diagnostic testing lab in Orange, N.J., U.S. Attorney Paul J. Fishman announced.
Mahesh Patel, 64, of Florham Park, N.J., a board-certified physician, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark to an information charging him with soliciting and receiving more than $6,000 in illegal cash kickbacks for patient referrals in violation of the federal health care anti-kickback statute.
Patel is the 15th individual to be convicted in connection with the government’s ongoing investigation of illegal payments made by Orange Community MRI LLC (Orange MRI), a diagnostic testing facility, U.S. Attorney Paul J. Fishman announced.
According to documents filed in this case and statements made in court:
Patel operated his own medical practice in Orange. From 2010 through November 2011, Patel agreed to take cash payments from Orange MRI in exchange for MRI scans he referred to the diagnostic testing facility. Patel admitted to receiving cash on a per-patient basis for nearly two years, and that on one of the occasions on which he received cash, Oct. 13, 2011, he received $375 in exchange for his prior referral of Medicare and Medicaid patients.
The anti-kickback charge carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is scheduled for April 8, 2014.Twelve health care providers, including Patel, have agreed to forfeit $360,510 in illegal cash kickbacks. Also, Ashokkumar Babaria, 63, of Moorestown, N.J., Orange MRI’s former medical director, agreed to forfeit his revenue from corrupt referrals, which the government estimates is in excess of $2 million. Chirag Patel, 38, of Warren, N.J., Orange MRI’s former executive director, also agreed to forfeit $89,180 in corrupt gains.
U.S. Attorney Fishman credited special agents of the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Tom O’Donnell, who investigated the case with criminal investigators from the U.S. Attorney’s Office.The government is represented by Assistant U.S. Attorneys Deputy Chief Joseph Mack and Scott B. McBride of the U.S. Attorney’s Office’s Health Care and Government Fraud Unit in Newark.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $500 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
13-472Defense counsel: Robert J. Cleary Esq. and William C. Komaroff Esq., New York
Patel, Mahesh Information
Members of "Black P-Stones" Gang IndictedRead the Press Release
NEWPORT NEWS, Va. – An eighteen-count superseding indictment was unsealed yesterday charging seven defendants—Justin Jerrell Brown, a.k.a. “Jus Money,” 22; Michael Ledale Hopson, a.k.a. “O.G.,” “Hop,” “Big Homie,” 36; Marcellus N. Williams Jr., a.k.a. “Math,” “P-Shooter,” “Manny,” 26; Darius Durel Crenshaw, a.k.a. “D-Block,” “Block,” “Block Head,” 27; Desmond Rishaad Finnell, a.k.a. “Dez,” “Jimmy Mac,” 23; Enrique Omar Hinton, a.k.a. “Rico,” 26; and Chadrick Derrell Lard, 23—with racketeering conspiracy, murder and attempted murder in aid of racketeering, robbery, conspiracy to distribute marijuana, and related firearms crimes. According to the indictment, the defendants were high-ranking members and associates of a violent street gang called the Black P-Stones, also referred to as the P-Stone Bloods and Cobra Stones.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Mythili Raman, Acting Assistant Attorney General for the Justice Department’s Criminal Division; and Royce E. Curtin, Special Agent in Charge of the Federal Bureau of Investigation’s Norfolk Field Office, made the announcement.
The indictment alleges that from approximately 2005 to the present the Black P-Stones operated as a criminal enterprise located primarily in the Beechmont, Courthouse Green, and Woodview neighborhoods in the Denbigh area of Newport News. The Black P-Stones engaged in various criminal activities including murders, robberies, illegal drug trafficking, and obstruction of justice. Membership in the Black P-Stones often entailed being “jumped in,” during which the new member was surrounded and beaten. To remain in good standing with the gang, members were required to comply with the gang’s rules, attend gang meetings, and pay monthly “dues.” Failing to follow the rules or pay dues resulted in “violations” that ranged from being beaten to being killed. Lower-ranking members of the Black P-Stones often received orders or approval from high-ranking members to carry out criminal activities, which were sometimes referred to as getting the “green light.” The Black P-Stones signified their membership by wearing clothing, hats, and bandannas with the colors red, black, and yellow, and by displaying distinctive tattoos, burns, hand signs, and handshakes. The indictment also alleges the Black P-Stones clashed with rival gangs including the 10-1 Mafia Crips, Folks, and Thug Relations, which was also referred to as TR, and Duct to the Lawnz.
According to the indictment, the defendants’ respective roles in the Black P-Stones gang were the following in descending order: Hopson served as the leader known as the Big Homie or O.G., which is an acronym for “original gangster”; Williams and Crenshaw held the rank of “Superior”; Finnell and Brown held the rank of “Lieutenant”; Hinton was a member; and Lard was an associate.
Hopson and Finnell were arrested yesterday, and Brown and Hinton are also currently in federal custody. Hopson, Finnell, and Hinton will make their initial appearances in federal court in Norfolk today. Brown will be arraigned in federal court in Newport News on Dec. 19, 2013. Williams and Crenshaw are currently in state custody and will make their initial appearances in federal court on a later date.
The investigation of this case was led by the FBI’s Safe Streets Peninsula Task Force, with the assistance of the Newport News Police Department and the James City County Police Department. Assistant United States Attorney Eric M. Hurt and Trial Attorney Louis A. Crisostomo of the Organized Crime and Gang Section in the Justice Department’s Criminal Division are prosecuting the case on behalf of the United States.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed innocent unless and until proven guilty.
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.Maryland Man Sentenced to Five Years in Prison for Traveling into the District of Columbia to Engage in Illicit Sexual Conduct with A Minor and Possession of Child PornographyRead the Press Release
WASHINGTON – Akshay Rajashekar, 19, of Salisbury, Md., has been sentenced to a five-year prison term on federal charges of traveling interstate to engage in illicit sexual conduct with a minor and possession of child pornography, U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD) announced today.
Rajashekar pled guilty to the charges in June 2013 in the U.S. District Court for the District of Columbia. The Honorable Thomas F. Hogan sentenced him on Dec. 16, 2013. Upon completion of his prison term, Rajashekar will be placed on 10 years of supervised release. He also will be required to register as a sex offender for a period of 15 years.
According to the government's evidence, on March 18, 2013, Rajashekar contacted an undercover officer with the FBI's Child Exploitation Task Force, who had posted an ad on a social network site. Over the next few days, the defendant engaged in online e-mail and instant messaging with the undercover officer, who the defendant believed was the father of an under-aged girl. During this period of time, Rajashekar arranged with the undercover officer to meet for the purpose of engaging in sexual acts with that child.
During the communications, Rajashekar also sent the undercover officer six images of child pornography. On March 25, 2013, Rajashekar traveled from College Park, Md. to a pre-arranged meeting place in Washington, D.C. When he arrived, he was arrested.
At the time of his arrest, Rajashekar had a pending case in Wicomico County, Md. for possession of child pornography. One of the two child pornography counts in the plea agreement covers that matter, and the Office of the State’s Attorney for Wicomico County Md. agreed to dismiss the pending case in Wicomico County at the time of the defendant’s sentencing.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also expressed appreciation for the assistance of Assistant State's Attorney Pamela Correa of the Office of the State’s Attorney for Wicomico County, Md. Finally they commended the efforts of Assistant U.S. Attorney Ari Redbord, who prosecuted the case.
13-423Manhattan U.S. Attorney Announces Filings and Discovery Requests Seeking Forfeiture of Pension Benefits of Four Former Officials Convicted of Corruption OffensesRead the Press Release
Discovery Requests Seek to Locate Benefits Paid to Convicted Former New York City Council Member Hiram Monserrate and Former Yonkers City Council Member Sandy Annabi
Preet Bharara, the United States Attorney for the Southern District of New York, announced today the filing of applications for orders forfeiting pension benefits, and the service of discovery requests seeking to locate benefits paid, regarding four former New York City Council and Yonkers City Council officials convicted of corruption offenses.
Manhattan U.S. Attorney Preet Bharara said: "With today's actions, we aim to prevent corrupt elected officials from continuing to benefit from pensions paid for by the very people they betrayed in office. As I announced this fall, we are committed to using every legal tool to take the profit out of crime, and that includes preventing public money from being used to fund the comfortable retirement of corrupt officials. This is what justice and common sense require."
As alleged in the applications and other court documents:
Former New York City Council members MIGUEL MARTINEZ, LARRY SEABROOK, and HIRAM MONSERRATE, and former Yonkers City Council member SANDY ANNABI, were convicted of corruption offenses between 2009 and 2012. On December 15, 2009, MARTINEZ was sentenced to 60 months’ imprisonment and ordered to forfeit $106,000. On January 8, 2013, SEABROOK was sentenced to 60 months’ imprisonment and ordered to forfeit $418,252.53. On December 11, 2012, MONSERRATE was sentenced to 24 months’ imprisonment and ordered to forfeit $79,434.49. On November 19, 2012, ANNABI was sentenced to 72 months’ imprisonment and ordered to forfeit $1,270,302.99. To date, none of these defendants has made a single payment toward their respective forfeiture obligations.
MARTINEZ and SEABROOK are currently vested members of the New York City Employee Retirement System. SEABROOK currently receives benefits, while MARTINEZ will be eligible to receive benefits when he reaches the age of 57. The Office has filed applications for orders forfeiting MARTINEZ and SEABROOK’s right to pension benefits until their forfeiture judgments are fully paid. MONSERRATE and ANNABI are believed to have terminated their pension memberships and received payments as a result. The Office has served discovery requests on MONSERRATE and ANNABI seeking to locate benefits that have been paid to them in order to satisfy the outstanding forfeiture judgments against them.
The prosecutions of these officials were handled by the Office’s Public Corruption Unit and its White Plains Division. The forfeiture of the defendants’ pensions is being handled by the Office’s Asset Forfeiture Unit. Assistant United States Attorney Paul Monteleoni is in charge of the forfeitures.
US v. Miguel Martinez Substitute Asset Application
US v. Larry Seabrook Substitute Asset Application
US v. Sandy Annabi Letter to Judge McMahon
US v. Hiram Monserrate Letter to Judge McMahonLawrence Woman Indicted for Misusing A Social Security NumberRead the Press Release
BOSTON - A Lawrence woman was charged today with misusing a social security number.
Kernia Avalo De Mejia, 28, was indicted for misusing a social security number in connection with renting apartments in the greater Lawrence area under a stolen identity. This indictment was part of a larger investigation into drug trafficking by illegal aliens in the Lawrence-Methuen area.
If convicted, Avalo faces a maximum sentence of five years in prison, three years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston, made the announcement today. The case is being prosecuted by Thomas E. Kanwit of Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lake Charles Doctor Sentenced to 12 Months in Prison for Health Care FraudRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that Dr. Lynn E. Foret, 64, of Lake Charles, La., was sentenced by U.S. District Court Judge Richard T. Haik to 12 months in prison and three years of supervised release for defrauding Medicare, Medicaid and private insurance companies out of close to $1 million. He was ordered serve 12 months of home confinement with the use of electronic monitoring while on supervised release and also ordered to pay $878,328.98 restitution and a $25,000 fine. Foret pleaded guilty April 18, 2013.
According to evidence presented at the guilty plea, from 2003 to 2009, Foret injected his patients’ knees with a steroid solution while falsely billing and receiving payments from Medicare, Medicaid and private insurance companies for a more costly drug called Hyalgan. During the time period outlined in the bill of information, he received reimbursements totaling $878,328.98. Foret is a Lake Charles medical doctor who specialized in orthopedic surgery since 1976. He closed his practice in December of 2012.
Various types of steroids are often used to treat osteoarthritis of the knee. Hyalgan is another more costly type of medication that is used to treat osteoarthritis. It contains a natural substance called Hyaluronate, which is normally found in the fluid that lubricates and cushions knee joints and is injected directly into a patient’s knee to relieve inflammation.
“This defendant used his trusted position as a physician to steal,” Finley stated. “He lied about the treatments he administered and drained money from private insurers and federal programs intended for those in need who depend on health care. The agencies and prosecutors who worked in this case are to be commended for their outstanding work in uncovering this fraud.”
The FBI, U.S. Food and Drug Administration, the Department of Health and Human Services - Office of Inspector General (OIG), and the Medicaid Fraud Control Unit (MFCU) of the Louisiana State Attorney General’s Office conducted the investigation. Assistant U.S. Attorney Kelly P. Uebinger prosecuted the case.
Kuchera Brothers Sentenced for Fraud Against the Government and ConspiracyRead the Press Release
JOHNSTOWN, PA. - Two brothers who owned a major defense contracting firm have been sentenced in federal court on charges of major fraud against the government and conspiracy, United States Attorney David J. Hickton announced today. U.S. District Judge Kim Gibson sentenced William Kuchera, 58, of Summerhill, Pa., and Ronald Kuchera, 52, of Johnstown, Pa., each to five years’ probation, the first 18 months on home detention with electronic monitoring, 1,000 hours of community service, and a fine of $500,000.
According to the information presented to the court, William and Ronald Kuchera owned and managed Kuchera Defense Systems, Inc. (KDS), a contractor for the Department of Defense. KDS submitted cost certifications to the government containing unallowable expenses that inflated costs for overhead and general and administrative expenses. These unallowable expenses included the leasing of a private airplane, vacations to Jamaica, personal car leases, improvements on a private residence and lobbying fees.
The Kuchera brothers also submitted a false invoice for $650,000 to Coherent Systems International, Inc. (Coherent), a defense contractor owned by Richard S. Ianieri. As the prime contractor, Coherent was responsible for an $8 million Department of Defense contract for the Ground Mobile Gateway Systems, which involved the development of a new prototype unmanned vehicle that was designed to prevent friendly-fire incidents. The invoice sought payment for a component that had never been manufactured or delivered to Coherent. After receiving the $650,000 payment from Coherent, the Kuchera brothers kicked back to Ianieri approximately $200,000.
The court was further advised that each of the Kuchera brothers filed false income tax returns for themselves and KDS. Their personal tax returns were false because they failed to disclose as income certain personal expenses paid for by their companies. The KDS tax returns were false because they included as business deductions certain expenses that were personal expenditures of the two brothers. The brothers also caused the submission of a false corporate tax return which illegally claimed the kickback to Ianieri as a legitimate business expense.
In July 2009, Ianieri waived indictment and pleaded guilty to a one-count criminal information charging him with soliciting kickbacks and filing false purchase orders related to an Air Force contract in Florida. In February 2010, he was sentenced to five years’ probation and was ordered to pay a $200,000 fine.
As part of their plea agreement, each brother agreed to pay a $50,000 criminal fine to the United States. Judge Gibson will apply this payment toward the $500,000 criminal fine imposed today, for a total additional fine of $450,000 for each of the brothers. Ronald Kuchera agreed to the civil forfeiture of an additional $450,000 and agreed to make payment to the Internal Revenue Service in the amount of $121,313, which represents taxes owed due to his filing of false personal tax returns and his share of the taxes owed by KDS. William Kuchera similarly agreed to the civil forfeiture of $450,000, and to pay restitution to the IRS in the amount of $257,168.
The Kuchera brothers and KDS also paid $2.7 million to resolve their civil liabilities with the United States Department of Defense under the False Claims Act. Ronald Kuchera paid $950,000 and William Kuchera paid $829,566. KDS, now doing business as Currency, Inc., paid $920,434 as a result of an audit conducted by the Defense Contract Audit Agency, which uncovered inflated billings for overhead.
“The Kucheras cheated the government by claiming improper reimbursements, submitting a false invoice, and then kicking back monies to the prime contractor,” said U.S. Attorney Hickton. “Such blatant and outrageous fraud against the United States cannot and will not be tolerated.”
Assistant United States Attorneys Nelson P. Cohen and Paul E. Skirtich prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Defense Criminal Investigative Service, the Defense Contract Audit Agency, the U.S. Internal Revenue Service - Criminal Investigation, and the Federal Bureau of Investigation, for the investigation leading to the successful prosecution of William Kuchera and Ronald Kuchera.
Justice Department Files Fair Housing Lawsuit Against Owner and Manager of Rental Housing in New Hampshire for Discrimination Against Families with ChildrenRead the Press Release
The Justice Department today filed a lawsuit against the owner and manager of rental apartments in Jaffrey, N.H., for violating the Fair Housing Act by discriminating against families with children.
The lawsuit, filed in the U.S. District Court for the District of New Hampshire, alleges that Bruce R. Edwards, as Trustee of the Bruce R. Edwards Revocable Trust of 2004 and in his personal capacity, engaged in a pattern or practice of violating the Fair Housing Act or denied rights protected by the Act. According to the complaint, the defendant allegedly established and implemented a discriminatory “no children” policy for prospective tenants in a boarding house that he owned and managed. The suit also alleges that the defendant violated the Fair Housing Act by enforcing the “no children” provision of the lease against a tenant and requiring the tenant to immediately find other housing arrangements for his daughter, who visited the boarding house on weekends.
“The Fair Housing Act protects tenants with children from facing unfair terms and conditions of rental that do not apply to tenants without children,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Justice Department will continue its vigorous enforcement of fair housing laws that ensure that tenants can secure rental housing for their families without fear of discrimination.”
“This lawsuit demonstrates the Department of Justice’s commitment to ensuring fair and equal access to housing for all New Hampshire citizens and attempts to erect discriminatory barriers to this fundamental civil right will not be tolerated,” said U.S. Attorney John P. Kacavas for the District of New Hampshire.
This lawsuit arose as a result of a complaint filed with the Department of Housing and Urban Development (HUD) by a tenant who lived in the defendant’s boarding house and had joint custody of his minor daughter. The defendant’s lease stated that no children were allowed in the building, and the defendant made additional oral statements to the tenant that children were not permitted. After receiving noise complaints about the tenant’s child, the defendant notified the tenant in a letter marked “Eviction Notice” that he was enforcing the “no children” provision of the lease and that the tenant had to immediately find other arrangements for his daughter on the weekends. As a result, the tenant began taking his daughter to stay with family members, which resulted in both economic and emotional costs. After HUD investigated the complaint, it issued a charge of discrimination and the matter was referred to the Justice Department.
“It’s surprising that 25 years after Congress outlawed housing discrimination against families with children, many landlords don’t know it’s illegal or don’t take the law seriously,” said Acting Assistant Secretary Bryan Greene for HUD’s Office of Fair Housing and Equal Opportunity. “HUD will continue work alongside the Department of Justice in educating people on the law and obtaining housing relief for families denied housing."
The lawsuit seeks a court order prohibiting future discrimination by the defendant, monetary damages for those harmed by the defendant’s actions and a civil penalty. Any individuals who have information relevant to this case are urged to contact the Housing and Civil Enforcement Section of the Civil Rights Division at 1-800-896-7743, ext. 3.
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.usdoj.gov/crt . Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact HUD at 1-800-669-9777.
The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
Imprisoned Sex Offender Sentenced to 10 Years in Prison for New OffenseRead the Press Release
Began with Anonymous Contact on Facebook
BOISE — Jeremy E. Durkin, 35, of Coeur d’Alene, Idaho, was sentenced today to 120 months in federal prison, with credit for time served, for use of a facility of interstate commerce to transmit information about a minor, with the intent to entice the victim into criminal sexual activity, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Durkin to serve ten years of supervised release following his release from prison. Durkin pleaded guilty on September 19, 2013.
According to the plea agreement, the matter came to the attention of law enforcement on September 23, 2010, when, during routine cell search at the Idaho State Correctional Institution, a corrections officer found a letter on Durkin's bunk which referenced a Yahoo e-mail account. The letter, written by Durkin, referred to the intended recipient as “you sexy sixteen-year-old.” In the letter, Durkin is asking someone he referred to in the greeting as “my Love,” to keep his (Durkin’s) Yahoo e-mail account active by logging on to it once a month and deleting all incoming mail. The letter further states: “This way I wont loose [sic] all the photos have up there. I don't really want to ask anybody else cuz there is naked photos of you that I don't want anybody to see.” Department of Corrections officials referred the matter to the FBI.
The FBI identified the victim as a high school student in Oregon. When interviewed, the youth told agents that Durkin initiated contact with him in December 2009 on Facebook. The victim further stated that Durkin (whom the victim did not know prior to that time) persuaded him to call a telephone number in Idaho. The two spoke telephonically and “hit it off,” according to the youth. Durkin initially gave the youth a false name, but not long after they met online, he gave the youth his true name. According to the victim, Durkin knew the victim was 15 years old at the time.
According to the plea agreement, from December 2009 until the summer 2010 Durkin was in constant contact with the victim via e-mail, telephone and U.S. Mail. The youth described their relationship as being almost immediately romantic and sexual, and said they exchanged sexually explicit photos. A search of Durkin’s Yahoo! account confirmed these allegations. The two never met in person. Their relationship was entirely via Facebook, telephone, e-mail and U.S. Mail.
Durkin is a previously convicted sex offender. In 2005, Durkin pleaded guilty in Kootenai County, Idaho, to one count of lewd conduct with a child under age 16. He was on parole at the time the incidents occurred that resulted in the federal charge. Durkin’s parole was revoked in the summer of 2010 and he was returned to prison. He is currently serving a prison his sentence on the Kootenai County case at the Idaho Department of Correction and is scheduled for release in 2016.
The charge of use of a facility of interstate commerce to transmit information about a minor, with the intent to entice the victim into criminal sexual activity, when committed by a person with a prior sex offense conviction, is punishable by up to ten years in prison, a maximum fine of $250,000.00, and up to lifetime supervised release.
The Federal Bureau of Investigation and the Idaho Department of Correction investigated the case. Both agencies are members of the Idaho Internet Crimes Against Children (ICAC) Task Force, a statewide coalition of local, state and federal law enforcement and prosecution agencies, focused on apprehending and prosecuting individuals who use the Internet to criminally exploit children. For more information about the Idaho ICAC Task Force and a list of all the participating agencies, visit www.icacidaho.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Houston Doctor Indicted for HerAlleged Role in $158 Million Medicare Fraud SchemeRead the Press Release
A Houston doctor has been arrested on charges related to her alleged participation in a $158 million Medicare fraud scheme involving false claims for mental health treatment.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Stephen L. Morris of the FBI’s Houston Field Office, Special Agent in Charge Mike Fields of the Dallas Regional Office of the Department of Health and Human Services Office of the Inspector General (HHS-OIG) and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
Sharon Iglehart, 56, of Houston, was charged in an indictment, filed in the Southern District of Texas and unsealed today, with one count of conspiracy to commit health care fraud and four counts of health care fraud. If convicted, Iglehart faces a maximum penalty of 10 years in prison on each count. Iglehart was arrested on Dec. 16, 2013, and made her initial appearance in federal court in Houston today.
According to the indictment, Iglehart allegedly participated in a scheme to defraud Medicare beginning in 2005 and continuing until May 2012. The defendant allegedly caused the submission of false and fraudulent claims for partial hospitalization program (PHP) services to Medicare through a Houston hospital. A PHP is a form of intensive outpatient treatment for severe mental illness.
The indictment alleges that the defendant and her co-conspirators submitted or caused to be submitted approximately $158 million in claims to Medicare for PHP services purportedly provided by the hospital, when in fact the PHP services were medically unnecessary or never provided.
In February 2012, Mohammad Khan, an assistant administrator at the hospital who managed many of the hospital’s PHPs, was indicted for his role in the scheme. Khan pleaded guilty to one count of conspiracy to commit health care fraud, one count of conspiracy to pay illegal kickbacks, and five counts of paying illegal kickbacks. Khan has not yet been sentenced.
In October 2012, Earnest Gibson III, the administrator of the hospital, along with Earnest Gibson IV, William Bullock III, Robert Ferguson, Regina Askew, Leslie Clark and Robert Crane, were indicted for their roles in the scheme. Leslie Clark pleaded guilty to one count of conspiracy to pay and receive illegal kickbacks. Clark has not yet been sentenced.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI, HHS-OIG, MFCU, Internal Revenue Service’s Houston Field Office, the Chicago Field Office of the Railroad Retirement Board’s Office of Inspector General, and the Office of Personnel Management’s Office of Inspector General and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas. The case is being prosecuted by Assistant Chief Laura M.K. Cordova of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov .Hogsett Announces Indictment of Local Investment Manager for Mail Fraud, Id TheftRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today that Ronald W. Nichter, age 58, of Pendleton, has been charged by federal indictment with eight counts of mail fraud and eight counts of aggravated identity theft. The local investment manager allegedly engaged in a scheme to defraud his clients of their funds by fraudulently withdrawing money from their accounts for his personal use.
“The victims in this case worked hard for their money, and they expected the defendant to work equally hard to protect it,” Hogsett said. “Instead, this alleged scheme violated their trust and resulted in tens of thousands of dollars in losses to their investment accounts.”
The indictment alleges that Nichter purchased and managed securities on behalf of clients in and around central Indiana, with clients in Anderson, Pendleton, and Greenfield, along with other locations. As part of his duties, the defendant would meet with the clients and create an investment profile that included personal information such as the person’s name, date of birth, Social Security number, and investment goals.
Beginning in October 2009, it is alleged that Nichter created false documents with forged client signatures that requested funds be withdrawn from their investment accounts. The checks issued in response to these documents would then be forward to one of two addresses – a P.O. Box in Pendleton rented by the defendant, and the home of the defendant’s former assistant. Nichter allegedly took custody of these checks, depositing them into his bank account and spending the money for his own benefit.
According to Assistant U.S. Attorney Bradley P. Shephard who is prosecuting the case for the government, this case was the result of investigative work by the United States Secret Service. Nichter could face up to 20 years in federal prison on each count of mail fraud, and at least 2 years in federal prison on each count of identity theft. He also faces significant fines and years of federally-supervised release if convicted.
A criminal complaint or indictment is only a charge and is not evidence of guilt. All defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Harvard Student Charged with Bomb HoaxRead the Press Release
BOSTON - A Harvard student was named today in a criminal complaint alleging that he was responsible for yesterday’s bomb threats at Harvard University.
It is alleged that Eldo Kim, 20, of Cambridge, emailed several bomb threats to offices associated with Harvard University, including the Harvard University Police Department and the Harvard Crimson, the student-run daily newspaper. Kim will have an initial appearance in US District Court before United States Magistrate Judge Judith G. Dein on December 18.According to the complaint, on Dec. 16, 2013, at approximately 8:30 a.m., the Harvard University Police Department, two officials of Harvard University, and the president of the Harvard Crimson, received identical email messages bearing a “subject” line that read “bombs placed around campus.” The complaint alleges that the bomb threats specified four buildings on the Harvard campus – the Science Center, Sever Hall, Emerson Hall, and Thayer Hall. The complaint quotes the email messages as stating the following: “shrapnel bombs placed in science center, sever hall, emerson hall, thayer hall, 2/4. guess correctly. be quick for they will go off soon.”
According to the complaint, the FBI responded immediately to the threats, in coordination with the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the United States Secret Service; the Harvard University Police Department; the Cambridge Police Department; the Boston Police Department; and the Massachusetts State Police. Dozens of law enforcement officers, along with numerous other first responders, such as firefighters of the Cambridge Fire Department, immediately went to the vicinity of the buildings specified in the emails. The complaint further states that each of the Harvard buildings named in the threatening emails was immediately evacuated. Over the course of the next several hours, bomb technicians and hazmat officers conducted thorough sweeps of each of the four buildings. Law enforcement personnel ultimately concluded that no explosive devices had been placed in any of the four buildings
The maximum penalties under the bomb hoax statute, are five years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Carmen M. Ortiz and Vincent Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being handled by Assistant U.S. Attorney John A. Capin.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Grocery Owners Sentenced for $151,000 Food Stamp FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two Kansas City, Mo., grocery store owners have been sentenced in federal court for their roles in a $151,000 food stamp fraud conspiracy.
Ibrahim Alanabuki, 45, and his wife, Mona Jwad, 33, who are both naturalized U.S. citizens from Iraq, were sentenced in separate hearings before U.S. District Judge Greg Kays on Monday, Dec. 16, 2013. Alanabuki was sentenced to 15 months in federal prison without parole. The court also ordered him to forfeit to the government $50,000, which represents the proceeds he received from the conspiracy. Jwad was sentenced to five years of probation.
Alanabuki and Jwad are the owners of Al-Forat Bakery and Store at 4436 St. John Ave., Kansas City, Mo. Both Alanabuki and Jwad, as well as co-defendant Hani Al-Zaidi, 47, an Iraqi national, have pleaded guilty to participating in a 15-month-long conspiracy to commit food stamp fraud and wire fraud. They admitted that they defrauded the Supplemental Nutrition Assistance Program (SNAP), better known as food stamps, which helps lower-income individuals and families buy food.
Al-Zaidi recruited homeless people to give him their SNAP electronic benefit cards and their PINs in exchange for a percentage of the benefits in cash. Al-Zaidi would then take the benefit cards to Al-Forat, where Alanbuki completed a fraudulent transaction to make it appear as though he sold food items to the recipients in amounts ranging from $25 to $250. Alanbuki split the proceeds of the fraudulent transactions, kicking back about 50 percent in cash to the food stamp recipients, about 20 percent to Al-Zaidi and keeping the remainder.
Alanabuki also accepted SNAP benefits to pay the beneficiary’s utility bills, or sell the beneficiary ineligible items such as cigarettes or calling cards. Alanbuki and Jwad also used benefit cards and PINs belonging to others to buy their own food.
Al-Zaidi was sentenced on Oct. 8, 2013, to time already served in custody (approximately 15 months) and ordered to pay restitution.
This case was prosecuted by Assistant U.S. Attorney Kate Mahoney. It was investigated by the U.S. Department of Agriculture.Fort Pierce Man Sentenced for Preparation and Presentation of False Tax ReturnsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that defendant Ventrell Bouie, 46, of Fort Pierce, was sentenced today on charges of aiding and assisting the preparation and presentation of false tax returns, in violation of Title 26, United States Code, Section 7206(2).
Bouie was sentenced by U.S. District Judge Jose E. Martinez in Fort Pierce to 24 months in prison, followed by one year of supervised release and a special assessment of $100. In addition, the Court ordered Bouie to pay restitution to the Government for tax losses of $288,478. The Court also noted that Bouie has agreed to be permanently enjoined by a Consent Judgment and Order filed in a parallel civil case, barring him in the future from ever preparing federal income tax returns for other persons.
According to statements made in open court and documents filed in the case, Bouie prepared multiple fraudulent tax returns for customers from January 2008 through December 2012. He prepared the returns, supplied false income and deduction figures, failed to review them in detail with the taxpayers, and then electronically filed them for those taxpayers.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein.
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.
Former Police Officer Pleads Guilty to Unlawfully Disclosing Information in Federal Narcotics Investigation-Admits Alerting Two People to Wiretaps-Read the Press Release
WASHINGTON – Vanessa Edwards-Hamm, a former officer with the Prince George’s County Police Department, pled guilty today to a federal charge that she unlawfully disclosed information about a wiretap being used on a target of a law enforcement investigation.
The guilty plea was announced by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Edwards- Hamm, 38, pled guilty in the U.S. District Court for the District of Columbia to a charge of making an unlawful disclosure of wire, oral, or electronic communications. The Honorable Chief Judge Richard W. Roberts scheduled sentencing for March 7, 2014. The charge carries a statutory maximum of five years in prison and financial penalties.
As a condition of the plea, Edwards-Hamm agreed to resign from the Prince George’s County Police Department.
Edwards-Hamm was among 17 people indicted in July 2013 on federal charges in connection with an investigation into a network that allegedly distributed heroin, cocaine, marijuana, and prescription pills in the Washington, D.C. area. She was indicted on one count each of tampering with documents or proceedings and unlawful notice of electronic surveillance. The other 16 defendants were charged with taking part in a drug conspiracy.
According to the government’s evidence, Edwards-Hamm received information on Feb. 22, 2013, that Aaron Vaughn, the brother of one of her close friends, was under investigation for illegal drug trafficking. She also learned that federal agents had a wiretap on Vaughn’s telephone number and that they previously had wiretaps on other numbers associated with him. Finally, she learned that agents felt they had collected enough evidence for an indictment against Vaughn.
In her guilty plea, Edwards-Hamm acknowledged that she called Aaron Vaughn’s brother on Feb. 22 or Feb. 23, 2013; at the time, Vaughn’s brother was serving a prison sentence. She acknowledged that she talked to him in a way that informed him that his brother, Aaron Vaughn, was under investigation; that law enforcement had a wiretap on Aaron Vaughn’s telephone, and that it was too late to help Aaron Vaughn avoid arrest. Furthermore, she acknowledged informing her own brother, Mark Edwards, that law enforcement was listening to Aaron Vaughn’s telephone conversations and that he should be careful and stay away from him.
She acknowledged these actions were conducted with the intent to interfere or impede with the FBI investigation. At the time of this conduct, Edwards-Hamm was serving as a task force officer with the Drug Enforcement Administration (DEA) in Maryland.
According to the government’s evidence, Aaron Vaughn got a call from his brother on Feb. 26, 2013 and was told to stop dealing with those he was involved with and to change his telephone number. Aaron Vaughn’s brother also advised him to consider moving out of the area.
Aaron Vaughn, 35, and Mark Edwards, 40, were among the 16 defendants indicted on federal narcotics charges in July 2013. They have pleaded not guilty to charges.
This prosecution grew out of a long-term FBI/MPD alliance called the Safe Streets Task Force that targets violent drug trafficking gangs in the District of Columbia. The Safe Streets Initiative is funded in part by the Baltimore Washington High Intensity Drug Trafficking Area as well as the Organized Crime Drug Enforcement Task Force. The initiative involves more than 150 Safe Streets Task Forces across the country that combat street gangs by combining federal, state and local police resources. The task forces, which began in 1992 in Los Angeles and the District of Columbia, address gang activity, including drug-related crimes.
In announcing the plea, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier expressed appreciation for those who pursued the investigation from the FBI/MPD Safe Streets Task Force. They also expressed appreciation for the assistance provided by the Prince George's County, Md., and Culpeper, Va. police departments, as well as the U.S. Marshals Service and the Charlottesville Resident Agency of the FBI’s Richmond Field Office.
In addition, they acknowledged the efforts of those who are working on the case from the U.S. Attorney’s Office, including Paralegal Specialists Teesha Tobias and Starla Stolk; Legal Assistant Niya Attucks; Program Specialist Kim Hall, and Legal Assistants Diane Brashears and Jessica Moffatt, and Assistant U.S. Attorneys Arvind K. Lal, Catherine K. Connelly and Zia Faruqui, of the Asset Forfeiture and Money Laundering Section. Finally, they thanked Assistant U.S. Attorneys Kenneth F. Whitted and David B. Kent of the Violent Crime and Narcotics Trafficking Section, who are prosecuting the case.
13-424Former Police Officer Pleads Guilty to Receipt of Child PornRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO – Stewart A. Miller, 48, of Sunbury, Ohio pleaded guilty in U.S. District Court today to one count of receipt of child pornography. Miller was a Columbus police officer, prior to his recent resignation.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, and Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI) announced the plea entered today before U.S. District Judge Algenon L. Marbley.
According to testimony provided by the government during the plea hearing, the FBI began investigating Miller in October 2013 after receiving a tip. They obtained and executed search warrants at Miller’s residence at the time and a storage facility he rented, recovering various computers and digital media.
A forensic examination of two external drives located in the crawl space above Miller’s bathroom revealed the presence of several thousand images and more than 1,100 videos of child pornography. The images dated back to 2002. The children in the videos ranged in age from toddler to teenager. The file paths of some of the images indicated that they were originally downloaded via a peer-to-peer file-sharing network. Images and videos of child pornography were also located on a laptop computer seized from the basement of the residence. Additional images of child pornography were recovered from several CDs seized from the storage facility rented by Miller.
The crime is punishable by at least five years and up to 20 years in prison. Judge Marbley will set a date for sentencing. The court placed Miller on home detention with electronic monitoring until sentencing, and also prohibited him from having access to the internet.
This case is being brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney's Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims.
U.S. Attorney Stewart commended the investigation by the FBI and Assistant U.S. Attorney Heather Hill, who is prosecuting the case.
Former Police Officer from Oklahoma Arrested on Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Robert Mullen, 60, a former officer with the Lawton, Okla., Police Department who now resides in Albuquerque, N.M., was arrested this morning by Special Agents of Homeland Security Investigations (HSI) on a criminal complaint charging him with receiving and possessing visual depictions of minors engaged in sexually explicit conduct. Mullen made his initial appearance in federal court this afternoon and remains in federal custody pending a detention hearing scheduled for tomorrow morning.
According to the criminal complaint, in Aug. 2013, a special agent with the New Mexico Attorney General’s Office (NMAGO) identified an IP address that was being used to share files containing child pornography while conducting an investigation targeting those who share child pornography on peer-to-peer file sharing networks. Subsequent investigation revealed that the IP address was subscribed to Mullen at a residential address in west side of Albuquerque.The criminal complaint states that on Dec. 11, 2013, HSI, the Albuquerque Police Department (APD) and other agencies participating in the New Mexico Internet Crimes Against Children (ICAC) Task Force executed a state search warrant at the residence and seized a computer and computer-related media. A preliminary forensic examination of a computer taken from a bedroom allegedly used by Mullen recovered images and videos consistent with child pornography.
If convicted of the charges in the criminal complaint, Mullen faces a federal prison term of not less than five years and not more than 20 years. If convicted, Mullen also would be required to register as a sex offender. Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.This case was investigated by the Albuquerque office of HSI, the NMAGO and the Albuquerque Police Department and is being prosecuted by Assistant U.S. Attorney Marisa A. Lizarraga 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 Operation also was brought as a 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 NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Former Lackawanna County Family Court Guardian Ad Litem Pleads Guilty to Federal Income Tax FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that on Monday, Danielle Ross Pietralczyk, age 37, of Jermyn, Pennsylvania, pleaded guilty before U.S. District Court Judge A. Richard Caputo to tax evasion and filing a false federal income tax return.
According to United States Attorney Peter J. Smith, tax returns verified by Ross under penalty of perjury failed to report any amounts of income she received from private paying clients while acting as the sole guardian ad litem for the Lackawanna County Family Court. The only income Ross reported for 2009 and 2010 was her County compensation reported on 1099 Forms which she received as an independent contractor hired by Lackawanna County.
As the sole guardian ad litem for the Lackawanna County Family Court, Ross was provided with an annual compensation of $38,000. However, pursuant to a contract between Ross and Lackawanna County, Ross was permitted to bill private paying parties above her County compensation at a rate of $50 per hour. Ross managed and exercised complete control over her private billings and income. That income was known only to Ross and not Lackawanna County, nor was Lackawanna County required to approve Ross’s private billings.Ross was indicted in February 2013.
The case was investigated by joint investigation by the Internal Revenue Service (IRS), the Federal Bureau of Investigation (FBI), and the Lackawanna County District Attorney’s Office. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is five years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Former Kinloch Mayor Sentenced for Falsifying Halfway House RecordsRead the Press Release
St. Louis, MO - Former Kinloch Mayor KEITH CONWAY was sentenced to six months in prison on federal charges of submitting false employment records while completing his original sentence at a St. Louis halfway house--the Dismas House.
Conway was originally sentenced to 21 months in federal prison in November 2011 on charges of using Kinloch city funds to pay personal expenses, fund personal travel and purchase a Florida vacation condominium timeshare; and attempting to influence Kinloch city officials to provide false information to federal law enforcement about the criminal charges pending against him.
According to court documents, on May 1, 2013, the United States Bureau of Prisons transferred Conway from its prison facility at Marion, Illinois, to the Dismas House residential reentry center in St. Louis. The Bureau of Prisons contracts with Dismas House for the housing and supervision of inmates, and retains jurisdiction and responsibility over those inmates until their ultimate release from Bureau of Prisons' custody upon completion of their sentence. As a resident of Dismas House, Conway was required to seek and obtain full-time employment and to submit paycheck stubs to verify that employment to the Dismas House Program Director. While a resident at Dismas House awaiting final release from the Bureau of Prisons, Conway obtained and submitted numerous false payroll records, falsely representing that he had obtained full-time employment. Based upon those false records, Conway had been permitted to leave the Dismas House premises every day during his falsely reported work hours.
Conway pled guilty in September to four felony counts of filing false documents. He appeared today for sentencing before United States District Judge Catherine D. Perry.
This case was investigated by the Federal Bureau of Investigation Public Corruption Unit, including Officers of the St. Louis County Police Department. Assistant United States Attorney Hal Goldsmith handled the case for the U.S. Attorney's Office.
Former Kindergarten Teacher Heads to Prison for Sexually Exploiting ChildrenRead the Press Release
HOUSTON - Stephen Wayne Sudduth, 38, of Sealy, has been ordered to prison for 30 years following his convictions on two counts of production of child pornography, announced United States Attorney Kenneth Magidson. Sudduth entered a plea of guilty Tuesday, Sept. 3, 2013.
The charges against Sudduth arose as a result of an international investigation conducted by members of the Houston office of Homeland Security Investigations (HSI), the office of the Caribbean Attache for Homeland Security, the Texas Attorney General’s Cybercrime Unit, the Public Prosecutor’s Office in Curacao, a special task force unit in Curacao comprised of Dutch and local law enforcement officers and the equivalent of the juvenile sex crimes unit of the Curacao Police Corps.
Today, U.S. District Judge Nancy Atlas handed Sudduth a 360-month sentence for each of the two convictions which will be served concurrently. Sudduth received credit for the more than three years he has been in federal custody. Additional information was also presented today, including copies of some of the images and a written victim impact statement from the mother of one victim. Additionally, the mother of a second victim came to court and provided a statement. Sudduth was further ordered to pay restitution to the two victims and will serve 25 years of supervised release following completion of his prison term, during which time he will have to participate in counseling, have no contact with minors under the age of 18 and very limited access to computers and the Internet. He will also be ordered to register as a sex offender.
The federal sentence will also run concurrently with a 60-year sentence Sudduth received in August 2013 for promotion of child pornography in Austin County.
The investigation began in 2009 when the Texas Attorney General’s Office received a tip concerning Sudduth. A state search warrant for Sudduth’s residence in Sealy was secured and later executed on July 14, 2009. At that time, officers seized a laptop computer and two external hard drives which all were found to contain child pornography.
During the review of the images, officers observed images that contained Sudduth and images that appeared to have been taken in a classroom. They were able to confirm the classroom was at a school in Curacao and that Sudduth taught kindergarten at that school. Houston HSI agents were then contacted to handle the international aspect of the investigation.
Still images of young girls that constituted child pornography were located and found to have been taken with a digital camera.
In December 2009 and May 2010, HSI agents and a forensic child interviewer traveled to Curacao and were able to identify and interview the children depicted in the images.
Sudduth has been in custody where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.This case, prosecuted by Assistant United States Attorney Robert Stabe, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Joplin Teacher Pleads Guilty to Sexual Exploitation of a Child, Faces 28 Years in PrisonRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former Joplin, Mo., middle school teacher has pleaded guilty in federal court to sexually exploiting a child victim to produce child pornography.
Charles D. Gastel, 40, of Carterville, Mo., pleaded guilty before U.S. Magistrate Judge David P. Rush on Friday, Dec. 13, 2013. Gastel was formerly a science teacher at South Middle School in Joplin.
By pleading guilty today, Gastel admitted that he sexually assaulted a teenage victim, identified in court documents as Jane Doe, over a period of approximately nine years. Gastel also admitted that he video-recorded some of the sexual assaults.
Under the terms of his plea agreement, Gastel will be sentenced to 28 years in federal prison without parole. Following his prison term, Gastel must spend the rest of his life under supervised release. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
On July 13, 2013, a Carterville, Mo., police officer interviewed the 19-year-old victim at her home in Lamar, Mo. She reported that she had been sexually victimized by Gastel repeatedly, beginning when she was 10 years old. Jane Doe reported that during some of the assaults, Gastel used a digital video recorder to record them engaging in sexual acts.
On July 17, 2013, Gastel was interviewed at his residence by the investigators. He initially told the investigators that he did not have videos on his computer. When asked for consent to search his computer, Gastel replied that he wanted to talk to a lawyer because he had files on his computer that would end his teaching career. Gastel was then placed under arrest and officers obtained a search warrant for his residence. A forensic preview of the digital media seized by officers yielded the discovery of several video files that depicted Gaston sexually assaulting Jane Doe when she was 16 years old.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Carterville, Mo., Police Department, the Southwest Missouri Cybercrime Task Force and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Former Fbi Assistant Director Who Violated Federal Criminal Ethics Law Is FinedRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael E. Horowitz, Inspector General for the Department of Justice, announced that former FBI Assistant Director KENNETH W. KAISER was sentenced today by U.S. District Judge F. Dennis Saylor, IV in Boston for violating a federal ethics law that prohibits senior executive branch personnel from making professional contacts with the agency in which they were employed for one year after leaving government service. KAISER, 57, of Hopkinton, Mass., was ordered to pay a fine of $10,000.
According to court documents and statements made in court, KAISER, a 27-year employee of the FBI, served as the Special Agent in Charge of the Boston office of the FBI from April 2003 through December 2006, and then as an Assistant Director of the FBI’s Criminal Investigative Division in Washington, D.C., until July 2009. On July 3, 2009, the same day that he retired from the FBI, KAISER was hired as a consultant by LocatePlus to handle an internal investigation regarding corporate wrongdoing by the company’s former Chief Executive Officer and Chief Financial Officer, and to help generate government sales for the company’s products and services. In March 2010, KAISER became a full-time employee of LocatePlus, holding the title Director of Government Sales.
Within a month of his retirement, KAISER began having prohibited electronic, telephonic and in-person contacts with FBI employees regarding a then-ongoing FBI investigation involving LocatePlus and the actions of its former executives. During the one-year ban period, KAISER also had prohibited contacts with FBI employees in an effort to gauge the FBI’s interest in LocatePlus’ products and services in an attempt to generate sales to the FBI.
Also, in August 2009, KAISER was hired by a corporate executive living in Gloucester, Mass., who had received a threatening letter in the mail. Working on behalf of this individual, KAISER had additional improper contacts with the FBI Boston office.
On October 3, 2013, KAISER pleaded guilty to a misdemeanor charge of making prohibited post-employment contacts.
This matter was investigated by the Department of Justice Office of the Inspector General and was prosecuted by Assistant U.S. Attorneys Diane C. Freniere of the District of Massachusetts and Michael J. Gustafson of the District of Connecticut.
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(203) 821-3722 [email protected]Former Chief Financial Officer of Merrimack Education Center Charged with Pension FraudRead the Press Release
BOSTON - A former senior executive at Merrimack Education Center (MEC) was charged today in federal court in connection with a fraud on the Commonwealth of Massachusetts’ pension system.
Carl A. Nystrom, 52, of Pelham, NH, was indicted on mail and wire fraud charges. The indictment alleges that he engaged in a scheme to defraud the state by allowing ineligible MEC employees to enroll in a state pension plan, making it appear as though those individuals were employees of a state entity when they were not.
MEC was a tax-exempt organization, a so-called not-for-profit company, engaged in the business of providing diversified educational and technological resources to schools, cities, towns and other non-profit organizations. MEC offered a broad range of special education, professional development, facilities management, transportation and technology programs. Merrimack Special Education Collaborative (MSEC) was a public entity engaged in providing educational and vocational services to children and adults with physical, emotional and developmental challenges. Pursuant to an administrative fee agreement, MEC provided fiscal and management services to MSEC, to include payroll services.
According to the indictment, Nystrom served as MEC’s Chief Financial Officer. During the relevant time period he directed and caused other MEC employees to code him and four other ineligible MEC employees in the ADP payroll system as MSEC employees. This fraudulent coding caused periodic paychecks and end-of-year W-2s to be made in the name of MSEC for each of the miscoded individuals. In addition, each of the miscoded individuals fraudulently enrolled in the state pension plan. The indictment alleges that the purpose of the scheme was for Nystrom and the others who were fraudulently enrolled in the pension to obtain pension payments that they were not entitled to receive. The indictment also alleges that in addition to Nystrom, a lobbyist and three other MEC employees were fraudulently enrolled in the state retirement system. The lobbyist and one former MEC employee have already collected nearly $300,000 in pension payments.
If convicted, Nystrom faces up to 20 years in prison, to be followed by three years of supervised release and a $250,000 fine on each count.
United States Attorney Carmen M. Ortiz; Glenn A. Cunha, Inspector General of Massachusetts; John Collins, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Vincent Lisi, Special Agent in Charge of the Federal Bureau of Investigation, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Diane C. Freniere and Andrew Lelling and Special Assistant U.S. Attorneys Andrew Doherty and Eileen O’Brien of the Massachusetts Attorney General’s Office and the Massachusetts Inspector General’s Office, respectively.The details contained in the Indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Beckley Physician’s Office Employee Pleads Guilty to Theft of Prescription PainkillersRead the Press Release
Defendant Tina Richmond stole a doctor’s script pad that was used to illegally obtain oxycodone tablets
BECKLEY, W.Va. – A former Beckley-area physician’s office employee pleaded guilty in federal court today to illegally obtaining the powerful prescription painkiller oxycodone. Tina Marie Richmond, 41, of Beckley, W.Va., committed a federal felony by aiding and abetting the acquiring and obtaining a controlled substance by misrepresentation, fraud, forgery, deception and subterfuge. Richmond pleaded guilty today in front of United States District Court Judge Irene C. Berger in Beckley.
"Prescription drug abuse damages continues to take a toll on communities all over southern West Virginia," said U.S. Attorney Goodwin. "I'm committed to doing everything possible to get this problem under control."
Prior to August 2, 2013, during her employment at a Beckley doctor’s office, Richmond stole a prescription pad belonging to her former employer, a Beckley doctor. The prescription pad contained the Drug Enforcement Administration registration number assigned to the doctor. Richmond told police that on August 2, 2013, she took the script pad without authorization, forged the doctor’s signature on the script pad and then gave it to a known acquaintance in exchange for money.
An investigation determined that the forged script, written for 90 30-milligram oxycodone pills, was filled at a Beckley pharmacy.
Richmond faces up to 20 years in prison and a $1,000,000 fine when she is sentenced on April 17, 2014.
The Beckley Police Department is in charge of the investigation.This case is being 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.
Former Bank Founder and President Pleads Guilty to Bank FraudRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that James A. Ladio, entered a guilty plea before the Honorable Richard G. Andrews to a four-count felony information charging him with bank fraud, in violation of Title 18, United States Code, Section 1344 (Counts 1 and 3); and money laundering, in violation of Title 18, United States Code, Section 1957 (Counts 2 and 4).
According to the criminal Information and plea agreement, Ladio was the founder and former President and Chief Executive Officer of MidCoast Community Bank, Inc. (“MidCoast”). MidCoast, headquartered in Wilmington, has four branch locations across the State of Delaware. The four-count Information describes two occasions in which Ladio convinced existing MidCoast customers to apply for commercial loans, ostensibly for valid business purposes. The true purpose of the loans, however, was to allow those MidCoast customers to loan money to Ladio.
The first bank customer (Bank Customer A) applied in October 2010 to transform an existing commercial mortgage at MidCoast into a $700,000.00 line of credit. Although the loan package indicated that the purpose of the line of credit was to make capital improvements on a particular building project, the actual purpose of the request was for Bank Customer A to obtain funds which could be used to make a short-term loan to Ladio. After MidCoast’s loan committee approved the request, Bank Customer A drew $650,000.00 from the line, which was deposited into Bank Customer A’s account on or about October 28, 2010. That same day, approximately $629,240.00 was wired from the account controlled by Bank Customer A to Ladio’s personal checking account.
Similarly, the second bank customer (Bank Customer B) applied to MidCoast in July 2011 for a working capital line of credit in the amount of $700,000.00. Although the loan package indicated that the purpose of the loan was for “working capital for Bank Customer B’s various business interests,” the actual purpose of the request was for Bank Customer B to obtain funds which could be used to make a short-term loan to Ladio. After MidCoast’s loan committee approved the request, MidCoast wired $650,000.00 into a bank account held by Bank Customer B at another financial institution. That same day, $639,000 was wired from Bank Customer B’s account to Ladio’s personal bank account.
Because on each occasion the proceeds of the loan fraud activity resulted in more than $10,000.00 being deposited into Ladio’s personal bank account, Ladio also faces two counts of money laundering.
Ladio, age 57, is a resident of Wilmington, Delaware. For the bank fraud charges (Counts 1 and 3), Ladio faces a maximum penalty of 30 years imprisonment; a fine of $1,000,000.00; a term of supervised release of five years; a $100.00 special assessment; and mandatory restitution. For the money laundering charges (Counts 2 and 4), Ladio faces a term of imprisonment of ten years; a fine of $250,000.00; a term of supervised release of three years; and a $100 special assessment. Sentencing has been scheduled for April 17, 2014 at 9:00 a.m.
United States Attorney Oberly said, ?Mr. Ladio’s serious fraudulent conduct betrayed the trust of MidCoast’s shareholders, its employees, and its customers. Our office will continue to vigorously investigate and enforce criminal conduct relating to bank fraud, particularly with respect to Delaware-based financial institutions.”
Ladio’s fraud was uncovered after it was discovered that he had failed to notify his lender, a TARP bank, that he had sold an investment property for which he had taken out a mortgage loan at the bank,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “Ladio’s failure to comply with his loan requirements was an initial step in a continued course of misconduct culminating in bank fraud against MidCoast Community Bank, where he was president and CEO. SIGTARP and our law enforcement partners will hold accountable and bring to justice those responsible for fraud related to TARP.”
The FBI works diligently to protect the integrity of the United States banking industry by identifying and securing evidence to prosecute white collar criminals such as Mr. Ladio. This case should serve as a warning to others that such conduct will not be tolerated by the FBI and our law enforcement partners.
"Professionals, including bankers, who promote fraudulent schemes to abuse our financial systems, will be held accountable," said Special Agent in Charge Akeia Conner, IRS Criminal Investigation. “This joint endeavor continues to demonstrate our efforts to ensure that the financial services industry will not be used for personal financial gain and will be challenged to operate in a fair and honest manner to promote the public interest.”
The case was investigated by the Federal Bureau of Investigation, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and the Internal Revenue Service Criminal Investigation Division, and is being prosecuted by Assistant United States Attorneys Robert F. Kravetz, Lesley F. Wolf, and Ilana H. Eisenstein.
Former Agape Employees Charged with Massive Ponzi Scheme in Superseding IndictmentRead the Press Release
Earlier today, a 21-count superseding indictment was unsealed charging Bryan Arias, Anthony Ciccone, Diane Kaylor, Jason Keryc and Shamika Luciano, former employees of Hauppauge-based Agape World, Inc. (“Agape”) and Agape Merchant Advance (“AMA”), for their participation in a large-scale Ponzi scheme.1 The superseding indictment adds two new defendants, Arias and Luciano, a securities fraud charge, a mail fraud count and two additional wire fraud counts. The defendants are scheduled to be arraigned on the superseding indictment this afternoon before United States Magistrate Judge A. Kathleen Tomlinson at the United States Courthouse in Central Islip, New York.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York (USPIS).
“Today’s superseding indictment is but the latest step in this Office’s dismantling of the fraudulent business empire of Nicholas Cosmo,” stated United States Attorney Lynch. “The defendants charged were an integral part of Cosmo’s Ponzi scheme that defrauded thousands of people of hundreds of millions of dollars. The defendants actively promoted the Ponzi scheme, promising safe investments in low risk business ventures. Even when the business ventures began to fail, the defendants continued to peddle lies and deceit to the investors in order to keep money flowing into the scheme.” Ms. Lynch added that the government’s investigation is continuing.
“As alleged in the indictment, the defendants’ foundation for success was built on deception and sham investments using the victims’ money. Over time, as with all Ponzi schemes, the defendants’ lies began to unravel leaving the collective investors millions of dollars out of pocket. Unfortunately, the public should be reminded that sometimes investment opportunities that are too good to be true are merely schemes designed to steal your money. The FBI, along with our law enforcement partners, will continue to aggressively investigate those who prey upon the public with illegal get-rich-quick plans,” stated FBI Assistant Director-in-Charge Venizelos.
“Today’s arrests should serve notice to criminals that Postal Inspectors will leave no stone unturned to bring to justice all parties involved in any crime that utilizes the U.S. Mail to steal the hard earned money of consumers,” said Inspector-in-Charge Bartlett.
Nicholas Cosmo founded Agape and AMA in August 2000. According to the superseding indictment and court filings, between October 2003 and January 2009, Arias, Ciccone, Kaylor, Keryc and Luciano, who worked as account representatives or brokers for Cosmo, played critical roles in the operation of a Ponzi scheme by soliciting and obtaining hundreds of millions of dollars from investors. To induce investments and discourage withdrawals, the defendants misled the investors by, among other things, (1) assuring investors that their investments would only be used to fund specific, short-term secured bridge loans to commercial borrowers or to make short-term loans to small businesses, (2) promising to pay investors unusually high rates of returns, and (3) representing that investing in Agape and AMA carried little or no risk of loss. The defendants allegedly raised significantly more money than was needed for the loans, and lied to the investors when they assured them that their money would specifically be used to fund only a particular loan. For their efforts, Arias, Ciccone, Kaylor, Keryc and Luciano received approximately $1.7 million, $10.7 million, $4.75 million, $16 million and $275,000, respectively.
As alleged in the superseding indictment, Cosmo and the defendants actually ran a Ponzi scheme, paying returns to Agape and AMA investors not from any profits earned on investments, but rather from existing investors’ deposits or money paid by new investors. In addition, unbeknownst to the investors, approximately $100 million of their money was used to trade high risk futures and commodities. Despite the fact that the defendants knew that Agape and AMA did not produce or earn rates of return that could support the exorbitant returns promised to investors, they allegedly continued to solicit money from investors.
As the fraudulent scheme began to unravel, the defendants allegedly lied to investors about the status of various Agape bridge loans. For example, on November 3, 2008, the defendants learned that all of Agape’s 2007 bridge loans were in default or on extension but allegedly failed to disclose that information to existing or new investors. Instead, the defendants actively continued to solicit money from investors, obtaining an additional $25.6 million.
During the course of the Ponzi scheme, approximately 5,000 individuals invested a total of more than $400 million in Agape and AMA. Although some investors succeeded over the years in making full or partial withdrawals, particularly before the Ponzi scheme began to unravel, approximately 4,100 investors sustained actual losses totaling approximately $179 million.
On October 14, 2011, Cosmo was sentenced to a term of imprisonment of 25 years in United States v. Nicholas Cosmo, 09 CR 255 (DRH), for his role in the scheme.
If convicted, the defendants face a maximum sentence of 20 years’ imprisonment on each count.
The government’s case is being prosecuted by Assistant United States Attorneys Christopher C. Caffarone, Grace M. Cucchissi and Vincent Lipari.
The Defendants
BRYAN ARIAS
Age: 40
Maspeth, New YorkANTHONY CICCONE
Age: 41
Locust Valley, New YorkDIane kaylor
Age: 37
Bethpage, New YorkJASON KERYC
Age: 36
Wantagh, New YorkSHAMIKA luciano
Age: 31
Coram, New YorkE.D.N.Y. Docket No. 12-CR-357 (S-1)(DRH)
_____________________________
1 The charges announced today are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Federal Grand Jury in Fort Wayne Returns IndictmentRead the Press Release
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Fort Wayne, Indiana - The United States Attorney's Office announced that a Grand Jury sitting in Fort Wayne, Indiana, returned the following Indictment on December 16, 2013: Nathan Arnold, 30, of Berne, Indiana, is charged in a two count Indictment with theft or receipt of stolen mail matter from the postal customers of Berne, Indiana on or about July 20, 2013 and August 12, 2013. These charges were filed as a result of an investigation by the United States Postal Inspection Service and the Berne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Tina L. Nommay.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.Federal Grand Jury Charges San Fernando Valley Man with First-Degree Murder in Fatal Shooting of TSA Officer at LAXRead the Press Release
LOS ANGELES – A federal grand jury this afternoon returned an 11-count indictment that charges Paul Anthony Ciancia with first-degree murder in the fatal shooting of a Transportation Security Administration Officer during a shooting spree at Los Angeles International Airport last month.
Ciancia is charged with murdering Gerardo Hernandez, an officer and employee of the United States, while Officer Hernandez was engaged in his official duties on November 1.
The indictment also charges Ciancia with attempted murder for shooting TSA Officers Tony Leroy Grigsby and James Maurice Speer. The indictment alleges that Ciancia used a Smith & Wesson 5.56-millimeter M&P15 semiautomatic rifle to shoot the three TSA Officers.
Ciancia, 23, who at the time of the shooting resided in Sun Valley, also is charged with using the rifle to commit acts of violence against persons at an international airport, including Brian Donovan Ludmer, a civilian who was wounded during the rampage.
The indictment contains one count alleging that Ciancia knowingly used a firearm to murder and cause death, and three counts alleging that he did “knowingly carry, brandish, discharge and use a firearm” when he shot the three surviving victims.
The indictment is a charging document that replaces the criminal complaint filed soon after the shooting incident. The indictment was filed this afternoon in United States District Court after the grand jury determined that there was “probable cause” to find that Ciancia committed the 11 felony offenses. Ciancia is scheduled to be arraigned on the indictment on December 26.
The three charges based on the killing of Officer Hernandez – first-degree murder, violence at an international airport that resulted in death, and using a firearm to murder and cause death – each carry possible sentences of life in federal prison or the death penalty. The indictment contains a series of allegations that would support a possible sentence of death, including premeditation and the murder of a federal law enforcement officer. At this time, the government has not made a decision on seeking the death penalty if Ciancia is convicted of any of these charges.
The two attempted-murder charges and each of the three charges based on violence against the surviving victims all carry a statutory maximum penalty of 20 years in federal prison. The three counts alleging the use of a firearm each carry a mandatory minimum sentence of 10 years that would be served consecutively to any other sentences that are imposed.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.This case is the product of an investigation by members of the Los Angeles Joint Terrorism Task Force (JTTF), which is led by the Federal Bureau of Investigation and includes agents and officers from 45 other local, state and federal agencies.
The following agencies provided considerable assistance during the investigation: the Los Angeles World Airports Police Department; the Los Angeles Police Department; the Los Angeles County Sheriff's Department; the Transportation Security Administration; the Federal Air Marshal Service; the Los Angeles Port Police; the Long Beach Police Department; the Air Force Office of Special Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection; the United States Secret Service; the Los Angeles Fire Department; Los Angeles International Airport Operations; the United States Marshals Service; the United States Postal Inspection Service; the Ronald Reagan UCLA Medical Center; and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Release No. 13-147
Father and Son Telemarketers Convicted in Timeshare Resale Fraud Affecting 1000 VictimsRead the Press Release
HOUSTON – Ronald Frank Muise, 51, and his son, Michael Derek Muise, 28, both of Las Vegas, Nev., have been convicted of conspiracy to commit wire and mail fraud in connection with a telemarketing fraud scheme that spanned almost five years and victimized approximately 1000 people, announced United States Attorney Kenneth Magidson. The Muises entered guilty pleas in federal court in Houston late yesterday afternoon.
The Muises and other alleged co-conspirators used various businesses known as The Jariv Companies to conduct a telemarketing timeshare resale scheme targeting timeshare owners throughout the United States and Canada. The Muises and others solicited timeshare owners by telephone to pay advance fees in exchange for The Jariv Companies promising they had willing buyers for the timeshare properties or points. In fact, the defendants did not have buyers and did not market or sell the property. They simply kept the money - almost $6 million in 2011-2012 alone.
The Jariv Companies were registered in various states and conducted business at multiple addresses in Houston; Las Vegas, Nev.; Los Angeles, Calif.; Chicago, Ill.; and Seattle, Wash.
The defendants and their employees falsely represented that they had buyers for timeshare weeks or points and solicited fees, ranging from hundreds of dollars to several thousand dollars from each timeshare owner. They falsely represented that the fees were fully refundable at closing and were used to secure the owners’ place in an acquisition involving corporate buyers, as well as to pay for legal expenses such as title searches, estoppel letters and closing costs.
The defendants made several false representations to give the appearance of legitimacy. They claimed they were the only legitimate company selling timeshares for owners, were “certified,” had sold hundreds of timeshares and had hundreds of employees. They also posted fake testimonials on websites for The Jariv Companies purporting to be from satisfied customers, but were actually written by employees.
After monies were paid for these “sales contracts,” the telemarketer would advise the owner that either the corporate buyer had pulled out of the acquisition or that other problems were encountered, but they had another buyer for the timeshare. The telemarketer would then conduct another pitch for additional money to ensure the deal closed. At times, veiled threats were made stating the owner could lose whatever money they had previously paid as well as their ?place in line? for inclusion in the sale or the deal.
Closings were not scheduled, sales did not occur and no payments were made to timeshare owners for the sale of their property.
The defendants and employees of The Jariv Companies simply pocketed the advanced fees paid by the timeshare owners.
Between Feb. 1, 2011, and Jan. 31, 2012, The Jariv Companies received approximately $6,925,137.04 in fraudulently obtained timeshare owner funds from approximately 1000 victims living in Canada and throughout the United States. The Muises received significant commissions for fraudulently obtaining victims money - 30-40% in most cases. In 2011-2012, Ronald Muise received nearly $1 million, while Michael Muise received $440,000.
U.S. District Court Judge Lynn N. Hughes, who accepted the guilty pleas yesterday, has set sentencing for March 17, 2013. The conspiracy count carries a maximum imprisonment of 20 years in federal prison, but because the wire/mail fraud involved telemarketing of 10 or more victims over the age of 55, federal law provides for an additional 10-year sentence in addition to what was imposed for the underlying fraud. Both defendants were permitted to remain on bond pending that hearing.
The convictions are the result of an investigation conducted by U.S. Secret Service and Internal Revenue Service – Criminal Investigation with assistance by FBI and Environmental Protection Agency. Assistant U.S. Attorneys Martha Minnis and Katherine Haden are prosecuting the case.
Farmington Man Sentenced to Federal Prison for Unlawful Possession of a FirearmRead the Press Release
ALBUQUERQUE – Yesterday afternoon, Vincent Thomas Montoya, 30, of Farmington, N.M., was sentenced to a 24-month term of imprisonment to be followed by three years of supervised release for being a felon in possession of a firearm.
Montoya was charged with being a felon in possession of a firearm and possession of a firearm with an obliterated serial number in a two-count indictment filed in July 2012. The indictment alleged that on Jan. 5, 2011, Montoya possessed a revolver with an obliterated serial number in San Juan County, N.M. At the time, Montoya was prohibited from possessing firearms or ammunition because he previously had been convicted of breaking and entering in the 11th Judicial District Court for the State of New Mexico.
Montoya pled guilty in Dec. 2012 to Count 1 of the indictment charging him with being a felon in possession of a firearm. In his plea agreement, Montoya admitted that on Jan. 5, 2011, he possessed a firearm with an obliterated serial number in Farmington, and further admitted selling the firearm to another person on that day.
The case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Farmington Police Department, the San Juan County Sheriff’s Office and the Bloomfield Police Department, and was prosecuted by Assistant U.S. Attorney David Walsh.Eleven Individuals Enter Pleas in Federal CourtRead the Press Release
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CLARKSBURG, WEST VIRGINIA – United States Attorney William J. Ihlenfeld, II, announced that eleven individuals entered pleas of guilty in Federal Court.
DANIEL JOSEPH HANST, age 27, BRANDI RENEE SMITH, age 26, LISA NICOLE SMITH, age 24 and ANTHONY WILLIAM OURS, age 32, of Fairmont, West Virginia, entered pleas of guilty before Magistrate Judge John S. Kaull to “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine.” and “Attempt to Possess Pseudoephedrine to be Used in the Manufacture of Methamphetamine.” HANST and BRANDI SMITH, who are in custody, and LISA SMITH and OURS, who are free on bond, face up to 20 years in prison. This case was prosecuted by Assistant United States Attorney Brandon S. Flower and investigated by the Three Rivers Drug Task Force, consisting of officers from the Fairmont Police Department and the Fairmont State University Police Department.
ERIC SCOTT PENNINGTON, age 30, of Parsons, West Virginia, and, MISTY AUTUMN GRAFTON, age 26, of Hambleton, West Virginia, entered pleas of guilty before Judge Kaull to “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine.” PENNINGTON and GRAFTON, who are free on bond pending sentencing, face up to 20 years in prison. This case was investigated by the Monongahela National Forest-Law Enforcement and Investigations and the Tucker County Sheriff’s Department.
RONNIE GERALD BELT, age 52, of Camden on Gauley, West Virginia, entered a plea of guilty before Judge Kaull to “Possession of Material Used in the Manufacture of Methamphetamine.” BELT, who is in custody pending sentencing, faces up to 10 years in prison.
TRACI LYNN WILSON, age 27, of Moorefield, West Virginia, entered a plea of guilty before Judge Kaull to “Distribution of Methamphetamine within 1,000 Feet of a School.” WILSON, who is free on bond pending sentencing, faces up to 40 years in prison.
The BELT and WILSON cases were investigated by the West Virginia State Police.
ROBERT VAUGHN BARNETTE, II, age 28, of Weston, West Virginia, entered a plea of guilty before Judge Kaull to “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine.” BARNETTE, who is in custody pending sentencing, faces up to 20 years in prison. This case was investigated by the West Virginia State Police and the Lewis County Sheriff’s Department.
These cases were prosecuted by Assistant United States Attorney Stephen D. Warner.
DONNA STURM, age 32, of Belington, West Virginia, entered a plea of guilty before Magistrate Kaull to “Distribution of Marijuana” and “Felon in Possession of a Firearm.” STURM, who is free on bond pending sentencing, faces up to 15 years in prison. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; and, the West Virginia State Police.
SHANE O. BRANTLEY, age 36, of Sutton, West Virginia, entered a plea of guilty before District Judge Irene M. Keeley to “Felon in Possession of a Firearm” on April 25, 2012, in Braxton County. BRANTLEY, who is free on bond pending sentencing, faces up to 10 years in prison. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the West Virginia State Police; the Braxton County Sheriff’s Department; and, the Sutton Police Department.
The STURM and BRANTLEY cases were prosecuted by Assistant United States Attorney Zelda E. Wesley.
Driver in Car Crash Pleads Guilty to Involuntary ManslaughterRead the Press Release
Greenbelt, Maryland – Josue Balbino Ruiz Reyes, age 19, of Hyattsville, Maryland pleaded guilty today to involuntary manslaughter in connection with the death of a passenger resulting from a car collision.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Acting Chief of Police Robert Maclean of the U.S. Park Police.
According to his plea agreement, on August 22, 2013 at about 5:30 a.m., Ruiz Reyes drove with a passenger in his SUV southbound on the Baltimore-Washington Parkway from the Glen Burnie area. He had been drinking alcohol earlier that morning and the previous night. Near the route 197 exit, he lost control of his SUV and drove onto the shoulder of the highway. His SUV rolled over completely and landed upright, breaking all the windows and ejecting the passenger. Ruiz Reyes drove away.Numerous other motorists called 911. The U.S. Park Police found Ruiz Reyes driving his badly damaged vehicle on the ramp from the Parkway to Powder Mill Road, about four miles south of the location of the crash. Four police cruisers forced the vehicle to a stop. The right side of the SUV was completely smashed. The passenger side door would not open. Ruiz Reyes told the police he had two beers earlier. He was shirtless, and had minor bruises and cuts on his body. Ruiz Reyes was taken to the hospital where a blood test was given. His blood-alcohol level was .10 grams of alcohol per 100 mL of blood.
Meanwhile, U.S. Park Police officers at the scene of the roll-over found the passenger’s body lying in the grass, where her body had been ejected from the SUV. She was pronounced dead. Ruiz Reyes told police that the passenger had gotten out of the car on the side of the road voluntarily. His Maryland driving privileges were suspended.
Ruiz Reyes faces a maximum sentence of eight years in prison followed by three years of supervised release and a fine of $250,000. U.S. District Judge Roger W. Titus scheduled sentencing for April 7, 2014 at 4:00 p.m.
United States Attorney Rod J. Rosenstein praised the U.S. Park Police for its work in the investigation and thanked Assistant U.S. Attorney Hollis R. Weisman, who is prosecuting the case.Dominican Doctor and Assistant Indicted for Conspiring to Alter Fingerprint of Previously Deported AliensRead the Press Release
BOSTON – A Dominican doctor and his assistant were charged today for their roles in altering the fingerprints of illegal aliens through a surgical process.
Danilo Montero Ramirez, 61, and Teresa Araujo Martinez, 40, were indicted for conspiring to harbor illegal aliens by altering their fingerprints through a surgical process, conspiracy to distribute Oxycodone, and possession with intent to distribute Oxycodone.
In November 2013, federal agents became aware that Montero Ramirez, a licensed medical doctor in the Dominican Republic, was coming to the United States to meet with previously deported aliens and perform surgery on their hands to alter their fingerprints. Convicted criminals alter their fingerprints to help conceal their true identities from law enforcement and to disassociate themselves from their prior criminal history.
During the week of Nov. 12, 2013, Montero Ramirez arrived in the United States from the Dominican Republic and arranged to perform surgery on individuals for a fee of $4,000. Montero Ramirez and Araujo Martinez made arrangements to perform the surgery on Nov. 16, 2013, but were arrested before the surgery began. It is alleged that had the surgery taken place, these individuals would have been given controlled substances by Araujo Martinez. At the time of the arrests, agents seized surgical cutting equipment, gauze, bandages, syringes, prescription medication and $4,000 from the defendants. Araujo Martinez, also a Dominican citizen, was found to be in possession of a large quantity of pain medication, including Oxycodone and other substances.
If convicted on the charge of conspiracy to distribute a controlled substance, the defendants face a maximum of 20 years in prison, three years of supervised release and a fine of $1 million. If convicted on the charge of conspiracy to harbor aliens, the defendants face a maximum sentence of 10 years in prison, three years of supervised release and a fine of $250,000.
United States Attorney Carmen M. Ortiz and Bruce Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston, made the announcement today. The case is being prosecuted by Kenneth G. Shine of Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
District Pediatrician Sentenced to 18 Months in Prison for Possession of Child Pornography-Doctor Arrested After Search of His Office in May 2013-Read the Press Release
WASHINGTON – Robert Paul Dickey, 74, a pediatrician from Washington, D.C., was sentenced today to 18 months in prison for possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Dickey pled guilty in September 2013 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Robert L. Wilkins. Upon completion of his prison term, Dickey will be placed on 10 years of supervised release. He also will be required to register as a sex offender for 15 years following his release from prison. Also, Dickey must forfeit a computer hard-drive that was seized by law enforcement during the investigation. Finally, Judge Wilkins ordered him to pay a $10,000 fine.
According to the government's evidence, on April 10, 2013, law enforcement received a “cyber tip” from the National Center for Missing and Exploited Children. That “cyber-tip” contained information that Dickey uploaded 14 images of child pornography using a Microsoft account.
Based on that “cyber-tip,” on May 8, 2013, law enforcement executed a search warrant on Dickey’s home office in Southeast Washington. Pursuant to that search warrant, law enforcement recovered various electronic devices. After a forensic review of those items, law enforcement recovered approximately 132 images of child pornography. Dickey was arrested on May 8, 2013, and has remained in custody ever since.
“This case is extremely troubling because a beloved pediatrician was downloading child pornography in the same home where he was providing medical treatment to children,” said U.S. Attorney Machen. “He provided care to many children during his career, but also obsessively collected images of children of the same ages being sexually exploited. Dr. Dickey’s prosecution is a concrete demonstration of our commitment to hold accountable anyone who would seek to exploit the innocence of our children.”
“By downloading images of child pornography, Dr. Dickey took advantage of unwitting victims,” said Assistant Director in Charge Parlave. “The FBI is committed to apprehending offenders who sexually exploit children through sharing images of child pornography and we will continue to work together with our partners to identify these predators and their innocent victims.”
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
In announcing the sentence, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who prosecuted the case.
13-425DOJ Hails Milestone in Seattle Police Department Reform Efforts with Court’s Approval of New Use of Force PolicyRead the Press Release
SEATTLE -- U.S. District Judge James L. Robart today accepted the Seattle Police Department’s new Use of Force policy as consistent with the terms of the Settlement Agreement between the Justice Department and the City of Seattle. The new policy, which builds on best practices and policies implemented nationwide, was negotiated by the parties and was the product of significant input from the police, policing experts and the Community Police Commission.
Under the new policy, all uses of force by SPD officers above de minimis force must be reported. The policy defines force itself for the first time, and details when force is appropriate and when it is prohibited. It establishes when and how to report force, and provides clear lines of authority and accountability for supervisory review and investigation of uses of force. The review and investigation of force will be more thorough than ever before. The policy further emphasizes de-escalation – including developing and using alternatives to force – and gives officers clear guidance on the use of specific tools, including a new requirement that officers carry at least one less-lethal tool. Separate policies and training on crisis intervention and dealing with people in behavioral crisis will also be completed in the near future.
The new use of force policy will go into effect on January 1, 2014.
“This is a major milestone in the reform process that will help rebuild trust and foster greater accountability. Clear principles and guidance will enhance officer safety and protect the rights of people in Seattle,” said U.S. Attorney Jenny A. Durkan. “I am grateful to the contributions of the Community Police Commission and the members of the community it represents and to the City, SPD officers, and policing experts who contributed to shape a policy that is a national model.”“We are pleased that, together with the City of Seattle and with the important input of the Community Police Commission, we have crafted and agreed upon a use of force policy that will serve as a model for police departments nationwide,” said Acting Assistant Attorney General Jocelyn Samuels, head of the Justice Department’s Civil Rights Division. “This policy will help ensure that the people of Seattle have a police department that respects the Constitution, secures the safety of the public, and earns the confidence of the community.”
The new policies make clear that officers must “use only the force necessary to perform their duties” and “with minimal reliance upon the use of physical force.” New emphasis is placed on de-escalation and interaction with people in behavioral crisis. For the first time, there are policies on every weapon used, like pepper spray and tasers. Supervisors are given enhanced responsibility for use of force by their officers. The most serious uses of force – including police shootings – will be investigated by a special team and reviewed by a multi-disciplinary team.
The following is a summary of the new Use of Force policy provisions. The new policy can be found by clicking here.
Enhances officer safety and protects rights with clear core principles guiding appropriate use of force: -Officers shall “use only the force necessary to perform their duties” and “with minimal reliance upon the use of physical force.”
-Officers shall de-escalate through the use of “advisements, warnings, verbal persuasion, and other tactics in order to reduce the need to use force” and recognize that a subject’s lack of compliance is not always a deliberate attempt to resist but may be related to an inability to comply because of medical impairment or a language barrier.
-Sometimes force is unavoidable, but officers should not precipitate an unnecessary use of force and should know that their conduct prior to the need to use force may be a factor the Department will consider in assessing the appropriateness of the force.Defines force – when it is appropriate and when it is prohibited – and when and how to report force: -“Force means any physical coercion by an officer.”
-“All uses of force other than de minimis are reportable. Reportable force includes the “intentional pointing of a firearm at a subject.”
-For reporting purposes, force is broken into four types based upon the nature and severity of the incident: de minimis and Types 1, 2, and 3. [See chart on page one of Section 8.300 (Use of Force Reporting and Investigation) for guidance on distinctions, available here:-Inappropriate to use force: to punish or retaliate; against individuals who only verbally confront them; against handcuffed or restrained individuals.
Defines and enhances responsibilities for supervisors and creates new Force Investigation Team (FIT): -Supervisors will be responsible for their officers and will review all uses force and further investigate all uses of force categorized as Type 2 and above.
-Supervisors screen all Type 1s at the scene and respond to the scene in all Type 2 and above.
-Creation of the new independent, inter-disciplinary FIT team for the highest level uses of force (Type 3 and above) and for officer-involved-shootings, in-custody deaths, serious assaults on officers.
-Procedures to protect the integrity of a possible future criminal investigation of the officer.Creates four procedural manuals on: -A first weapon-by-weapon guidance manual on when and how weapons like tasers and peper spray can be used (Section 8.200, available here: -Procedures on the reporting and investigation of uses of force (Section 8.300, available here: -A manual for the new Force Investigation Team, which rolls to the highest levels of force, including officer involved shootings (Force Investigations Unit Procedural Manual, available here: -Procedures of the Use of Force Review Board (Section 8.400, available here: Institutionalizes the UOF Review Board (created by SPD in 2011) (Section 8.400)
The UOF Review Board reviews all Type 2 and Type 3 UOF to: -confirm that UOF reporting, investigation and review are thorough and complete; -determine whether the findings from the chain of command regarding whether the force used is consistent with law and policy are supported by a preponderance of the evidence; -ensure that all uses of force contrary to law or policy are appropriately addressed; and
-identify trends or patterns of deficiencies regarding policy, training, equipment, or tactics.Citizen of Romania Involved in Atm Skimming Scheme Is SentencedRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that IONUT-IULIAN VLAD, 29, a citizen of Romania, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 18 months of imprisonment, followed by three years of supervised release, for his role in an ATM “skimming” scheme.
According to court documents and statements made in court, VLAD and others conspired to install “skimming” devices on automated teller machines (“ATMs”) at Bank of America locations in Connecticut. The devices were able to capture the information encoded on the magnetic strips of bank cards used by ATM customers. The co-conspirators also placed devices on the ATMs that contained hidden pinhole cameras, which recorded the personal identification numbers that bank customers keyed into the ATMs to gain access to their accounts. The co-conspirators used the stolen information captured by the skimming devices and pinhole cameras to create counterfeit bank cards that allowed them to withdraw more than $100,000 in funds from the customers’ accounts.
In February 2013, surveillance video captured VLAD removing skimming devices and pinhole cameras from Bank of America ATMs in Wallingford and Greenwich.
VLAD has been detained since his arrest by the Stamford Police Department on March 2, 2013. At the time of his arrest, he possessed ATM skimming tools and double-sided tape.
On August 19, 2013, VLAD pleaded guilty to one count of conspiracy to commit bank fraud.
VLAD was ordered to pay restitution in the amount of $105,404.75.This investigation is being conducted by the Connecticut Financial Crimes Task Force, which includes members of the U.S. Secret Service, U.S. Postal Inspection Service, Internal Revenue Service – Criminal Investigation, Connecticut State Police, and the Greenwich, Hartford, Monroe, Stamford, Shelton, Stratford and Waterford Police Departments. U.S. Attorney Daly specifically recognized the efforts of the Greenwich and Stamford Police Departments for their assistance in the investigation and prosecution of this matter.
This case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
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Tom Carson
(203) 821-3722 [email protected]California Man Indicted for Conspiring with Local Couple to Produce Child PornographyRead the Press Release
PENSACOLA, FLORIDA — Pamela C. Marsh, the United States Attorney for the Northern District of Florida, announced that Bret A. Nichols, age 29, of Paradise, California, was indicted today on federal charges for engaging in a conspiracy to produce and receive images and videos of child pornography from a couple in Mary Ester, Florida.
The two-count indictment alleges that between October 2010 and December 2012, Nichols conspired with Corine D. Motley, a/k/a Corine Gillreath, a/k/a “Dusty,” a/k/a “Kandi Kane,” and Brandon C. Gillreath, to produce pornographic images and videos of child victims here in the Northern District of Florida. Motley and Gillreath were convicted on related charges in federal court in Pensacola in June 2013 and were sentenced to 29½ years and 35 years imprisonment, respectively, for their personal production of child pornography here in Florida. The images and videos they produced were transmitted over the Internet.
Nichols was arrested in northern California on federal charges stemming from his alleged involvement. He remains in custody at the Sacramento County Jail.
The indictment was a result of a joint investigation by the Department of Homeland Security, the Okaloosa County Sheriff’s Office, the Pensacola Police Department, and other members of the Internet Crimes Against Children Task Force.
The case is being prosecuted by Assistant U.S. Attorney David L. Goldberg.
An indictment is merely an allegation that a defendant has committed a violation of federal criminal law. All defendants are presumed innocent until and unless the government proves their guilt beyond a reasonable doubt to the satisfaction of a jury at trial.
California Man Charged with Conspiring to Distribute Cocaine and Launder MoneyRead the Press Release
PITTSBURGH – A California man has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and money laundering laws, United States Attorney David J. Hickton announced today.
The two count superseding indictment named Gustavo Godinez, of Los Angeles, California.
According to the Superseding Indictment, from in and around April 2012, and continuing to in and around January 2013, in the Western District of Pennsylvania and elsewhere, the defendant conspired with other individuals to distribute and possess with the intent to distribute five kilograms or more of cocaine. The Superseding Indictment also alleges that during that same time frame, in the Western District of Pennsylvania and elsewhere, the defendant conspired with other individuals to launder money.
The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jonathan B. Ortiz is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the Pennsylvania State Attorney General's Office, the Internal Revenue Service - Criminal Investigation and the United States Postal Service conducted the investigation leading to the Superseding Indictment in this case.
A Superseding Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Burns Flat Woman Charged with Producing Child Pornography Involving One-Year-Old ChildRead the Press Release
Oklahoma City, Oklahoma – Today, a federal complaint was filed charging JEANIE SHOULDERS (a/k/a Laura Jean Shoulders), 46, of Burns Flat, Oklahoma, with three counts of producing child pornography, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to the complaint affidavit, in the summer of 2012, a male responded to Craigslist personals ad and made contact with Shoulders. It is alleged that the two began corresponding through text messages about sexually explicit themes and exchanged explicit photographs. It is further alleged that the conversations developed into messages concerning child pornography and Shoulders sent three videos of herself performing sexual acts with a one-year-old girl with her iPhone taken in approximately April of this year. It is alleged that the child was in the custody of an acquaintance of Shoulders.
If convicted, Shoulders faces up to 30 years in prison on each of the three counts. The public is reminded that the complaint is merely an accusation and that the defendant is presumed innocent unless and until proven guilty. Reference is made to the court filings for further information.
This case is the result of an investigation by the Oklahoma Internet Crimes Against Children (ICAC) Task Force, Washita County Sheriff’s Office, Burns Flat Police Department, Dewey County Sheriff’s Office, and the United States Secret Service. The Oklahoma ICAC Task Force is part of the National ICAC Task Force, with the Oklahoma State Bureau of Investigation as the lead agency that manages a grant approved by the U.S. Department of Justice for use to specifically investigate and prosecute child exploitation cases. Oklahoma currently has 51 affiliate partner agencies throughout the State who are Oklahoma ICAC Task Force members. The case is being prosecuted by Assistant U.S. Attorney Brandon Hale.
Bulgarian Citizen Sentenced to over 3 Years in Prison for Using ATM Skimmers to Obtain over $54,000 from Victims’ AccountsRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Bozhidar Lazarov, age 40, a Bulgarian national residing in Chicago, Illinois, today to 39 months in prison, followed by three years of supervised release, for conspiring to commit bank fraud and aggravated identity theft in connection with an ATM skimming scheme. Judge Blake also ordered Lazarov to pay restitution of $54,883.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
According to his guilty plea, from at least May through November 2010, Lazarov and others illegally obtained debit and credit card account numbers by placing ATM skimmers over the slot where customers inserted their debit or credit cards, thereby capturing the account information as the card passed through the skimmer. The conspirators used a miniature camera to capture personal identification numbers (PINs) as the customers entered them on the keypad. Lazarov and others then encoded the magnetic strips of plastic cards, such as gift cards, with the compromised account numbers and information which they used, along with the corresponding PIN numbers, to make unauthorized cash withdrawals directly from the victims’ bank accounts.
For example, on May 29 and 30, 2010, co-conspirator Stoycho Lazarov, who is Bozhidar’s brother, installed an ATM skimmer on bank ATMs in Westminster and Finksburg, Maryland, which Bozhidar Lazarov removed a few hours later. Bozhidar Lazarov and others used the stolen debit card numbers and PINs to withdraw at least $30,536 from 20 victims’ accounts. On October 17, 2010, Bozhidar Lazarov and others used a skimming device at a bank ATM in Ellicott City, Maryland, subsequently using the stolen account information and PINs to illegally withdraw at least $24,347 from at least 19 victims’ accounts.
Bozhidar Lazarov obtained at least $54,883 from 39 individual bank customers and two banks during his participation in the scheme.
Stoycho Ivanov Lazarov, age 41, a Bulgarian citizen residing in Millersville, Maryland, previously pleaded guilty to the same charges, and was sentenced to four years in prison and ordered to pay restitution of $185,512.
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 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.United States Attorney Rod J. Rosenstein thanked the U.S. Secret Service for its work in the investigation and praised Assistant U.S. Attorneys Kristi N. O’Malley and Tamera Fine, who prosecuted the case.
Boston Man Sentenced for Armed RobberyRead the Press Release
BOSTON - A Boston man was sentenced today for his role in an armed robbery of a Metro PCS store in Boston.
Ronald Brown, 40, was sentenced by U.S. District Court Judge Denise J. Casper to 272 months in prison and five years of supervised release. On May 10, 2013, Brown was convicted, following a five-day jury trial of armed robbery, being a previously convicted felon in possession of a firearm and using and carrying a firearm during, and in relation to, a crime of violence.
On Oct. 31, 2011, Brown and his co-conspirator, Lynch Arthur, armed with loaded semi-automatic weapons, entered the Metro PCS store in Codman Square in Dorchester. Arthur was observed carrying a black nylon bag as he entered the store. Once inside the store, the men displayed their firearms and took the clerk into a back storage area where the men restrained the clerk by duct-tapping her hands feet and mouth. The clerk was then placed on the floor while the robbers removed $664 in cash from the cash box. The individuals left the store and fled onto Washington Street. The Boston Police responded and a short time later two individuals who fit the description of the robbers were stopped and questioned. After questioning, the individuals were returned to the store and positively identified by the clerk as the robbers. A short time later the police observed a black nylon bag in a blue recycle bin. The bin was located a few yards from where the individuals were stopped and questioned. Inside the nylon bag the officers observed two loaded semi-automatic firearms, duct tape, and $664.
In June 2013, Brown’s co-defendant, Lynch Arthur, was sentenced to 228 months in prison and five years of supervised release.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner William Evans, made the announcement today. The case was prosecuted by Kenneth G. Shine and Robert E. Richardson of Ortiz’s Major Crimes Unit.
Beloit Wisconsin Woman Charged with Mail FraudRead the Press Release
ROCKFORD — The former shipping manager for American Extrusion International (“AEI”), was indicted today on federal mail fraud charges. REVA K. VERA, 57, of Beloit, Wis. was charged with two counts of mail fraud.
According to the indictment, Vera, as the shipping manager, was responsible for authorizing payments to vendors who provided shipping services to AEI. The indictment alleges that from May 4, 2012 to Oct. 9, 2013, Vera defrauded AEI out of at least $352,743.23. The indictment alleges that Vera created fictitious invoices from Val Tech, Inc. and TQL for shipping services that those companies had purportedly performed for AEI when in fact, Val Tech, Inc. and TQL provided no such shipping services for AEI. According to the indictment, Vera submitted the fictitious invoices to AEI’s accounts payable department causing checks to be issued by AEI payable to Val Tech, Inc. or TQL in the amounts of the invoices. The indictment further alleges that after AEI’s accounts payable department generated the checks for the fictitious invoices submitted by Vera, AEI mailed the checks payable to Val Tech, Inc. to an address of Vera’s relative in Beloit, Wis., and the checks payable to TQL to a post office box in Loves Park, Ill. belonging to Vera. According to the indictment, as part of the scheme to defraud AEI, Vera obtained $85,993 in checks from AEI payable to Val Tech, Inc., and $266,810.23 in checks from AEI payable to TQL that she either cashed or deposited into her personal bank account.
Each count of mail fraud carries a maximum penalty of 20 years in prison, a maximum fine of $250,000 fine, or an alternate fine totaling twice the loss or twice the gain derived from the offense, whichever is greater, and restitution. If convicted, the Court must impose a reasonable sentence under the advisory United States Sentencing Guidelines.
Vera appeared today at the federal courthouse in Rockford for an arraignment and initial appearance conducted by U.S. Magistrate Judge P. Michael Mahoney. Vera was released on bond and is scheduled to appear for a status hearing before Magistrate Judge Mahoney on Jan. 27, 2014 at 11 a.m.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The South Beloit Police Department assisted in the investigation.
The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.
An indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment