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Wednesday 25 September 2013
Jury Convicts Rio Grande City Woman in Marijuana CaseRead the Press Release
McALLEN, Texas – Celia Raquel Zuniga, 45, of Rio Grande City, has been convicted of conspiracy to possess with intent to distribute and possession with intent to distribute marijuana, announced United States Attorney Kenneth Magidson. The McAllen federal jury convicted Zuniga following a two-day trial and approximately two hours of deliberations.
During trial, Starr County sheriff’s deputies testified that on Dec. 6, 2012, they observed three vehicles driving in tandem going east on Expressway 83 near the Starr County and Hidalgo County line. They then observed the middle vehicle change lanes without signaling. Deputies conducted a traffic stop and identified Zuniga as the driver. At that time, deputies noticed a strong odor of marijuana emitting from the vehicle and a canine subsequently alerted to the presence of narcotics.
Initially, Zuniga lied to deputies and denied there was anything illegal in her vehicle. However, after stepping out of her vehicle and when asked a second time, Zuniga admitted there was something illegal inside. Deputies then recovered 24 bundles of marijuana, weighing approximately 243 kilograms within the car.
In her defense, Zuniga testified she had been kidnaped by multiple men while she was driving to a friend’s house. She claimed they took her to a cemetery while bundles of marijuana were loaded into her vehicle. She further testified they told her she would need to drive the vehicle to McAllen or else something would happen to her family.
The jury was not convinced of Zuniga’s claim of duress and ultimately found her guilty as charged.
U.S. District Judge Micaela Alvarez, who presided over the trial, has set sentencing for Dec. 12, 2013, at which time she faces a minimum of five and up to 40 years in federal prison.
Previously released on bond, Zuniga was taken into custody following the return of the verdict where she will remain pending sentencing.
The case was investigated by Homeland Security Investigations with the assistance of the Starr County Sheriff’s Office. Assistant United States Attorney Kimberly Ann Leo is prosecuting.
Judge Gives Federal Inmate Another Year in Prison for Possessing A WeaponRead the Press Release
ERIE, Pa. - An inmate at the McKean Federal Correctional Institution in Bradford, Pennsylvania pleaded guilty and was sentenced in federal court to 12 months and 1 day in jail on his conviction for possession of contraband in prison, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Jesus Castillo- Lucino, 26. The sentence was imposed to run consecutively to the sentence Castillo-Luciano is currently serving.
According to information presented to the court on February 1, 2013, Castillo-Luciano was in possession of a weapon.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended Officers of the McKean Federal Correctional Institution for the investigation leading to the successful prosecution of Castillo-Luciano.
James Michael Youpee Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney(s Office announced that during a federal court session in Great Falls, on September 25, 2013, before U.S. Magistrate Judge Keith Strong, JAMES MICHAEL YOUPEE, a 35-year-old resident of Poplar and an enrolled member of a federally recognized tribe, pled guilty to assault resulting in serious bodily injury. Sentencing has been set for January 16, 2014. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
On April 4, 2013, YOUPEE was staying at a hotel in Poplar, which is located within the exterior boundaries of the Fort Peck Indian Reservation. YOUPEE got into an argument with a woman he was seeing and she went to a different hotel room. Shortly after, YOUPEE forced his way into the room she had gone into and stabbed and cut a male occupant of the room. As a result, the victim was taken to the local hospital and then flown to Billings.
The victim had life-endangering injuries which required the placement of a chest tube to relieve air pressure in his lung.
YOUPEE faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was a cooperative effort between the Federal Bureau of Investigation and the Fort Peck Tribes Criminal Investigation Division.
Informational: Federal Court Initial AppearancesRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on September 23, 2013, before U.S. Magistrate Judge Carolyn S. Ostby, the following individuals were arraigned:
FRANKLIN GEORGE GRANT, a resident of Billings, appeared on charges of aggravated sexual abuse and abusive sexual contact. He is currently detained. If convicted of these charges, GRANT faces possible penalties of life in prison, a $250,000 fine, and lifetime supervision. Assistant U.S. Attorney Jessica A. Betley is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
EMERY CHARLES CROOKED ARM, a 23-year-old resident of Wyola, appeared on a charge of aggravated sexual abuse. He is currently detained. If convicted of this charge, CROOKED ARM faces possible penalties of life in prison, a $250,000 fine, and lifetime supervision. Assistant U.S. Attorney Lori Harper Suek is the prosecutor for the United States. The investigation was conducted by the Bureau of Indian Affairs.
The defendants pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court Initial AppearancesRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on September 25, 2013, before U.S. Magistrate Judge Carolyn S. Ostby, the following individuals were arraigned:
CHASTITY LYNN LONE ELK, a 38-year-old resident of Busby, appeared on charges of conspiracy to possess with the intent to distribute methamphetamine, possession with the intent to distribute methamphetamine, distribution of methamphetamine, use of a firearm in furtherance of a drug trafficking crime, and being a felon-in-possession of a firearm. She is currently detained. If convicted of these charges, LONE ELK faces possible penalties of a mandatory minimum of 10 years in prison and could be sentenced to life, a $10,000,000 fine, and 5 years supervised release. In addition, LONE ELK faces the possibility of an additional mandatory 5 year imprisonment, consecutive to any other sentence, for the use of a firearm during a drug trafficking crime. Assistant U.S. Attorney Lori Harper Suek is the prosecutor for the United States. The investigation was conducted by the Bureau of Indian Affairs.
PATRICIA ANN HALCOMB-SEGNA, a 53-year-old resident of Billings, appeared on charges of conspiracy to possess with the intent to distribute methamphetamine, possession with the intent to distribute methamphetamine, being a felon-in-possession of a firearm, and possession of an unregistered firearm. She is currently detained. If convicted of these charges, HALCOMB-SEGNA faces possible penalties of a mandatory minimum of 10 years in prison and could be sentenced to life, a $10,000,000 fine, and 5 years supervised release. Assistant U.S. Attorney Brendan P. McCarthy is the prosecutor for the United States. The investigation was a cooperative effort between the Eastern Montana High Intensity Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The defendants pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court Initial AppearancesRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on September 24, 2013, before U.S. Magistrate Judge Keith Strong, the following individuals were arraigned:
TIMOTHY M. McALLISTER, a 46-year-old resident of Kansas City, Missouri, appeared on charges of transportation of child pornography, possession of child pornography, and travel with intent to engage in illicit sexual conduct. He is currently detained. If convicted of these charges, McALLISTER faces possible penalties of a mandatory minimum of 15 years in prison and could be sentenced to 30 years, a $250,000 fine, and lifetime supervision. Assistant U.S. Attorney Zeno B. Baucus is the prosecutor for the United States. The investigation was conducted by the U.S. Department of Homeland Security - Homeland Security Investigations.
BRANDY LEE SALWAY, a 23-year-old resident of Santa Fe, New Mexico, appeared on a charge of involuntary manslaughter. She is currently released on special conditions. If convicted of this charge, SALWAY faces possible penalties of 8 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Ryan G. Weldon is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
JORDAN JOSEPH MORGAN, a 21-year-old resident of Cut Bank, appeared on charges of assault resulting in serious bodily injury and criminal endangerment. He is currently released on special conditions. If convicted of these charges, MORGAN faces possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release on each charge. Assistant U.S. Attorney Ryan G. Weldon is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
GEORGE THEODORE SUTHERLAND, a 20-year-old resident of Box Elder, appeared on a charge of aggravated sexual abuse. He is currently detained. If convicted of this charge, SUTHERLAND faces possible penalties of life in prison, a $250,000 fine, lifetime supervision. Assistant U.S. Attorney Danna R. Jackson is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
ROBERT JAMES SCHEAFFER, JR., a 49-year-old resident of Harlem, appeared on a charge of sexual abuse of a minor. He is currently detained. If convicted of this charge, SCHEAFFER faces possible penalties of 15 years in prison, a $250,000 fine, and lifetime supervision. Assistant U.S. Attorney Jessica A. Betley is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
ALDRED AMELINE, JR., a 24-year-old resident of Harlem, appeared on charges of sexual abuse and abusive sexual contact. He is currently detained. If convicted of these charges, AMELINE faces possible penalties of life in prison, a $250,000 fine, and lifetime supervision. Assistant U.S. Attorney Jessica A. Betley is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
JOSHUA JAMES HURLEY, a 31-year-old resident of St. Mary, appeared on charges of assault on a federal officer and making false statements to a federal officer. He is released on special conditions. If convicted of these charges, HURLEY faces possible penalties of 20 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Ryan G. Weldon is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
The defendants pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Idaho Man Sentenced for Obstruction of Justice in Key West Marine Life CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Otha Easley, Acting Special Agent in Charge, NOAA Fisheries Office of Law Enforcement, and David Pharo, Resident Agent in Charge U.S. Fish & Wildlife Service, Miami, announce that Peter C. Covino, IV, 20, of Eagle, Idaho, was sentenced yesterday in Key West, for knowingly and corruptly attempting to persuade another to alter, destroy, mutilate, or conceal an object with the intent to impair the object’s integrity and availability for use in an official proceeding, in violation of Title 18, United States Code, Sections 1512(b)(2)(B) and 2.
U.S. District Court Judge Jose E. Martinez, who presided over the trial of Peter Covino in July, imposed a sentence of imprisonment of time served - two months, six months of home confinement under electronic monitoring, and two years of supervised release. The court determined that Covino was unable to pay a fine.
According to testimony presented during the trial and documents in the case file, in February 2013 Covino made two phone calls to a business in the Florida Keys involved in the wholesale marine life trade in an effort to persuade one of the business owners “to erase all the text messages, and emails, or any other evidence” linking the Florida business to Peter Covino’s uncle, Ammon Covino, then a Director of the Idaho Aquarium, Inc., in Boise, Idaho.
In a separate criminal proceeding, United States v. Ammon Covino, et al., Case No. 12-10020-CR-Martinez, Ammon Covino had been arrested on February 21, 2013, and charged with engaging in a conspiracy and other violations of the federal Lacey Act by purchasing and transporting wildlife from the Florida Keys to Idaho for exhibit at the Idaho Aquarium in Boise, Idaho. The wildlife included spotted eagle rays and lemon sharks, which required Florida licenses and permits never acquired by the participants in the deals. Testimony at Peter Covino’s trial established that Ammon Covino and his co-defendant Christopher Conk had made the arrangements for the illegal purchases by emails, text messages, and telephone calls.
Unknown to Peter Covino at the time of the phone calls was the fact that the business owner was cooperating with federal authorities and his phone conversations were recorded. During his trial testimony, Peter Covino admitted that he made the calls at the direction of his uncle, Ammon Covino.
Mr. Ferrer commended the investigative efforts of the NOAA Office of Law Enforcement, the U.S. Fish & Wildlife Service, Office of Law Enforcement, and the Idaho Department of Fish & Game. This case was prosecuted by Assistant U.S. Attorneys Thomas Watts-FitzGerald.
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.
Idaho Aquarium and Employees Plead Guilty to Illegal Trafficking of Marine LifeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Otha Easley, Acting Special Agent in Charge, NOAA Fisheries Office of Law Enforcement, and David Pharo, Resident Agent in Charge U.S. Fish & Wildlife Service, Miami, announce that Idaho Aquarium, Inc., an Idaho corporation based in Boise, Ammon Covino, 40, formerly of Meridian, Idaho, and Christopher Conk, 40, of Middleton, Idaho, entered guilty pleas in federal District Court in Key West yesterday for conspiring to harvest, transport, and sell spotted eagle rays and lemon sharks, knowing the marine life were taken, possessed, transported, sold, and intended to be sold in violation of the laws and regulations of the State of Florida, contrary to the federal Lacey Act, Title 16, United States Code, Sections 3372(a)(2)(A), and 3373(d)(1) and (2), all in violation of Title 18, United States Code, Section 371.
According to the Indictment and Joint Factual Statements submitted to the Court and agreed to by the respective defendants, the defendants confessed that during the period extending from March 2012 through approximately November 2012, they engaged in a conspiracy to purchase and transport wildlife from the Florida Keys to Idaho for exhibit at the Idaho Aquarium in Boise. The wildlife included spotted eagle rays and lemon sharks, which required Florida licenses and permits never acquired by the participants in the deals. According to the Factual Statements, Covino and Conk were both at the time officers of the Aquarium, were individually advised of the requirements of the law, and nevertheless directed their Florida-based suppliers to ignore the law and make the shipments. Unknown to Covino and Conk at the time of the phone calls was the fact that the business owner was cooperating with federal authorities and the phone conversations and text messages were recorded. Payment for the various specimens was made by credit cards held in the Aquarium’s name. All three defendants acknowledged that Covino and Conk’s illegal conduct was within the scope of their employment, and intended to benefit, at least in part, the Idaho Aquarium.
In a separate criminal proceeding, United States v. Peter C. Covino, IV, Case No. 13-10010-CR-Martinez, Peter Covino, the nephew of Ammon Covino, was tried, convicted, and sentenced for obstruction of justice in connection with his effort to persuade the supplier in the Florida Keys to destroy the invoices and messages related to the illegal purchases of marine life to prevent their use in Ammon Covino’s case, in violation of Title 18, United States Code, Sections 1512(b)(2)(B). Testimony at the trial established that after Ammon Covino had been arrested on February 21, 2013 he induced Peter Covino to make the calls.
Mr. Ferrer commended the investigative efforts of the NOAA Office of Law Enforcement, the Fish & Wildlife Service, Office of Law Enforcement, and the Idaho Department of Fish & Game. This case was prosecuted by Assistant U.S. Attorneys Thomas Watts-FitzGerald and Antonia Barnes, with assistance from the U.S. Attorney’s Office for the District of Idaho.
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.
ICAP Brokers Face Felony Charges for Alleged Long-Running Manipulation of LIBOR Interest RatesRead the Press Release
Two former derivatives brokers and a former cash broker employed by London-based brokerage firm ICAP were charged as part of the ongoing criminal investigation into the manipulation of the London Interbank Offered Rate (LIBOR), the Justice Department announced today.
Darrell Read, who resides in New Zealand, and Daniel Wilkinson and Colin Goodman, both of England, were charged with conspiracy to commit wire fraud and two counts of wire fraud in a criminal complaint unsealed in Manhattan federal court earlier today. They each face a maximum penalty of 30 years in prison for each count upon conviction.
“By allegedly participating in a scheme to manipulate benchmark interest rates for financial gain, these defendants undermined the integrity of the global markets,” said Attorney General Eric Holder. “They were supposed to be honest brokers, but instead, they put their own financial interests ahead of that larger responsibility. And as a result, transactions and financial products around the world were compromised, because they were tied to a rate that was distorted due to the brokers’ dishonesty. These charges underscore the Justice Department’s determination to hold accountable all those whose conduct threatens the integrity of our financial markets.”
“These three men are accused of repeatedly and deliberately spreading false information to banks and investors around the world in order to fraudulently move the market and help their client fleece his counterparties,” said Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division. “Our criminal investigation of the manipulation of LIBOR by some of the largest banks in the world has led us from New York to London, to Tokyo, and other financial hubs around the globe. These important charges are just the latest law-enforcement action in the Criminal Division and Antitrust Division’s global LIBOR investigation, and reflect the Department’s continued dedication to detecting, and prosecuting, financial fraudsters who affect U.S. markets, whether they work at a bank, or a brokerage, and whether they carry out their fraud from a desk in the United States, or abroad.”
“The complaint unsealed today charges Colin Goodman, Daniel Wilkinson and Darrell Read for conspiring to manipulate benchmark interest rates that determined the profitability of their client’s trades,” said Scott D. Hammond, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “In exchange for bigger bonus checks, the three defendants undermined financial markets around the world by compromising the integrity of globally used interest rate benchmarks. The Department continues to demonstrate its commitment to protecting the interest of American citizens in free and fair financial markets.”“Corporate and securities fraud involving the manipulation of these rates causes a worldwide impact on trading positions and erodes the integrity of the market and confidence in Wall Street,” said Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office. “Unraveling such complex financial schemes is difficult and time consuming. Today’s charges are the result of the hard work of the FBI special agents and forensic accountants who dedicated significant time and resources to investigating this case.”
According to the criminal complaint, LIBOR is an average interest rate, calculated based on submissions from leading banks around the world, reflecting the rates those banks believe they would be charged if borrowing from other banks. LIBOR is published by the British Bankers’ Association (BBA), a trade association based in London. At the time relevant to the criminal complaint, LIBOR was calculated for 10 currencies at 15 borrowing periods, known as maturities, ranging from overnight to one year. The published LIBOR “fix” for a given currency at a specific maturity is the result of a calculation based upon submissions from a panel of banks for that currency (the contributor panel) selected by the BBA.
LIBOR serves as the primary benchmark for short-term interest rates globally and is used as a reference rate for many interest rate contracts, mortgages, credit cards, student loans and other consumer lending products. The Bank of International Settlements estimated that as of the second half of 2009, outstanding interest rate contracts were estimated at approximately $450 trillion.
According to allegations in the criminal complaint filed in this case, between July 2006 and September 2010, Wilkinson was a desk director employed in the London office of ICAP, where he supervised a group of derivatives brokers – including Read – specializing in Yen-based financial products. Generally, the desk’s clients were derivatives traders at large financial institutions, and the transactions brokered by Wilkinson, Read and others on the desk essentially consisted of bets between traders on the direction in which Yen LIBOR would move. Between July 2006 and September 2009, the desk’s largest client was a senior trader at UBS (UBS Trader) in Tokyo, to whom Read spoke almost daily. Because of the large size of the client’s trading positions, even slight moves of a fraction of a percent in Yen LIBOR could generate large profits. For example, UBS Trader once told Read that a 0.01 percent – or one basis point – movement in the final Yen LIBOR fixing on a specific date could result in $3 million profit for his trading positions. A significant part of both Read’s and Wilkinson’s compensation was tied to the brokerage fees generated by UBS Trader and paid to ICAP.
Goodman was a cash broker at ICAP’s London office during the relevant time period. In addition to brokering cash transactions, Goodman distributed a daily email to individuals outside of ICAP, including derivatives traders at several large banks as well as those responsible for providing the BBA with LIBOR submissions at certain banks. Goodman’s email contained what was termed his “SUGGESTED LIBORS,” purported predictions of where Yen LIBOR ultimately would fix each day across eight specified borrowing periods. Read and Wilkinson, along with Goodman himself, often referred to Goodman as “lord libor.”
The complaint alleges that Read, Wilkinson and Goodman, together with UBS Trader, executed a sustained and systematic scheme to move Yen LIBOR in a direction favorable to UBS Trader’s trading positions.
According to the criminal complaint, the primary strategy employed by Read, Wilkinson and Goodman to execute the scheme was to use Goodman’s “SUGGESTED LIBORS” email to disseminate misinformation to Yen LIBOR panel banks in hopes that the banks would rely on the misinformation when making their own respective Yen LIBOR submissions to the BBA for inclusion in the published fix. Rather than providing good faith predictions as to where Yen LIBOR would fix, Goodman instead often used his daily email to set forth predictions which benefitted UBS Trader’s trading positions.
Beginning in or about June 2007, Goodman was paid a bonus through the desk Wilkinson supervised, allegedly intended, at least in part, to reward Goodman for his role in their effort to influence and manipulate the published Yen LIBOR fix.
As a second strategy, Read and Wilkinson allegedly further agreed to contact interest rate derivatives traders and submitters employed at Yen LIBOR panel banks in an effort to cause them to make false and misleading submissions to the BBA at UBS Trader’s behest.
As alleged in the charging document, Read, Wilkinson, Goodman, UBS Trader, and other co-conspirators often executed their scheme through electronic chats and email exchanges. For example, on June 28, 2007, in an email message, Read told Wilkinson: “DAN THIS IS GETTING SERIOUS [UBS TRADER] IS NOT HAPPY WITH THE WAY THINGS ARE PROGRESSING . . . CAN YOU PLEASE GET HOLD OF COLIN AND GET HIM TO SEND OUT 6 MOS LIBOR AT 0.865 AND TO GET HIS BANKS SETTING IT HIGH. THIS IS VERY IMPORTANT BECAUSE [UBS TRADER] IS QUESTIONING MY (AND OUR) WORTH.”
The complaint alleges that the defendants were aware of the effects that Goodman’s false and fraudulent “SUGGESTED LIBORS” had on submissions by Yen LIBOR panel banks. For example, on Nov. 20, 2008, Read asked UBS Trader, “you have a really big fix tonight I believe? if Colin sends out 6m at a more realistic level than 1.10 [%] i reckon [the two panel banks] will parrot him, it might mean 6m coming down a bit.” On the following day, Nov. 21, 2008, Goodman moved his suggestion for 6-month Yen LIBOR down by nine basis points. The two other banks mirrored Goodman’s suggestion, moving their 6-month Yen LIBOR submissions down by nine basis points.
According to allegations in the complaint, Read counseled UBS Trader how to most effectively manipulate Yen LIBOR. For example, UBS Trader told Read in a July 22, 2009, electronic chat that “11th aug is the big date...i still have lots of 6m fixings till the 10th.” Read responded to UBS Trader, “if you drop [UBS’s] 6m dramatically on the 11th mate, it will look v fishy... . I’d be v careful how you play it, there might be cause for a drop as you cross into a new month but a couple of weeks in might get people questioning you.” UBS Trader replied, “don’t worry will stagger the drops...ie 5bp then 5bp,” and Read told UBS Trader, “ok mate, don’t want you getting into [expletive].” UBS Trader again assured Read that UBS and two additional panel banks would stagger their drops in coordination, and Read concluded, “great the plan is hatched and sounds sensible.”
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted.
The investigation is being conducted by special agents, forensic accountants, and intelligence analysts of the FBI’s Washington Field Office. The prosecution is being handled by Deputy Chief William Stellmach and Trial Attorney Sandra L. Moser of the Criminal Division’s Fraud Section and Trial Attorneys Eric Schleef and Kristina Srica of the Antitrust Division. Trial Attorneys Alexander Berlin and Thomas B.W. Hall, Law Clerk Andrew Tyler, and Paralegal Specialist Kevin Sitarski of the Criminal Division’s Fraud Section, along with Assistant Chief Elizabeth Prewitt and Trial Attorney Richard Powers of the Antitrust Division, and former Trial Attorney Luke Marsh have also provided valuable assistance. The Criminal Division’s Office of International Affairs has provided assistance in this matter as well.
The broader investigation relating to LIBOR and other benchmark rates has required, and has greatly benefited from, a diligent and wide-ranging cooperative effort among various enforcement agencies both in the United States and abroad. The Justice Department acknowledges and expresses its deep appreciation for this assistance. In particular, the Commodity Futures Trading Commission’s Division of Enforcement referred this matter to the Department and, along with the U.K. Financial Conduct Authority, has played a major role in the investigation. The Securities and Exchange Commission has also provided valuable assistance for which the Department is grateful. The Department also expresses its appreciation to the United Kingdom’s Serious Fraud Office for its assistance and ongoing cooperation. Various agencies and enforcement authorities from other nations are also participating in different aspects of the broader investigation, and the Department is grateful for their cooperation and assistance as well.
Finally, the Department acknowledges ICAP’s continuing cooperation in the Department’s ongoing investigation.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.gov.
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Harrison County Men Sentenced for Drug Trafficking ViolationsRead the Press Release
Department of Justice
Office of Public AffairsMARSHALL, Texas – Three Marshall, Texas men have been sentenced to federal prison by U.S. District Judge Rodney Gilstrap for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Santiago Carbajal Abelardo, 26, pleaded guilty on May 3, 2013, to possession with intent to distribute and distribution of methamphetamine and was sentenced to 90 months in federal prison on Sep. 24, 2013.
Jehovani Abelardo, 21, pleaded guilty on May 3, 2013, to possession with intent to distribute and distribution of methamphetamine and was sentenced to 90 months in federal prison on Sep. 24, 2013.
Santos Acuna, 24, pleaded guilty on May 3, 2013, to possession with intent to distribute and distribution of cocaine and was sentenced to 11 months in federal prison on Sep. 24, 2013.
According to information presented in court, from November 2009 to October 2012, the defendants conspired to manufacture and distribute methamphetamine and cocaine in East Texas. Santiago Abelardo admitted to distributing over 35 grams of methamphetamine and possessing a firearm during the conspiracy. Jehovani Abelardo admitted to assisting in the distribution of over 20 grams of methamphetamine as well as attempting to bride a police officer during the conspiracy. Acuna admitted to distributing over 50 grams of cocaine during the conspiracy. A federal grand jury returned an indictment on Nov. 7, 2012, charging these defendants and two others with federal drug trafficking violations.
This case was investigated by the Federal Bureau of Investigation, the Marshall Police Department and the Harrison County District Attorney’s Office and prosecuted by Assistant U.S. Attorney Allen Hurst.Hammond Woman, Sandra Renee Keith, Pleads Guilty to False Statements to an Agency of the United StatesRead the Press Release
SANDRA RENEE KEITH, age 34, a resident of Hammond, Louisiana, pled guilty in federal court today before U.S. District Judge Stanwood R. Duval to one count of making false statements to a federal agent, announced U.S. Attorney Kenneth Allen Polite, Jr.
According to court records, on May 6, 2013, Drug Enforcement Administration (“DEA”) agents knocked on KEITH’s door with an arrest warrant for Michael D. Brumfield (“Brumfield”). KEITH informed agents that Brumfield was not at her apartment but was staying elsewhere, when in truth and fact, as KEITH well knew, Brumfield was hiding in her apartment.
Upon sentencing scheduled for January 8, 2014, KEITH faces a maximum term of imprisonment of 5 years, a $250,000 fine, 3 years of supervised release following any term of imprisonment, and a $100 special assessment.
The case was investigated by the Drug Enforcement Administration, and is being prosecuted by Assistant U. S. Attorney Julia K. Evans.
(Download Factual Basis )
Grand Jury Indicts Oakland Man Who Received Meth Smuggled in Picture FrameRead the Press Release
PITTSBURGH - An Oakland man has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
The two-count indictment named Carmelo Rojas-Perez, 31, as the sole defendant.
According to court filings, the defendant had approximately one kilogram of methamphetamine smuggled to him from Mexico with the intent of distributing the drugs. The drugs were hidden inside the frame of a religious picture.
The law provides for a minimum sentence of at least 10 years in prison and a maximum total sentence of 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 Ross E. Lenhardt is prosecuting this case on behalf of the government.
Homeland Security Investigations and U.S. Customs and Border Protection conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Fort Thompson Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on September 24, 2013, by U.S. District Judge Roberto A. Lange.
Kyle Marks, age 29, was sentenced to 24 months of imprisonment, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Marks was indicted for the above charge by a federal grand jury on June 12, 2013. He pled guilty on September 9, 2013.
The charge stems from an incident wherein Marks failed to register as a sex offender from May 2013 to June 11, 2013. He had initially been convicted in federal court in 2004 of abusive sexual contact with a child and was sentenced to prison, as well as being required to register as a sex offender. After release from prison on his underlying charge, he had violations of his court ordered supervision, and remained under the Court’s supervision until this year. While placed at a treatment facility in Rapid City to help him successfully re-integrate into society, Marks absconded in May 2013, and failed to properly maintain his sex offender registry requirements. Marks fled from authorities until he was apprehended on July 16, 2013. This is his second conviction for failing to register as a sex offender.
The investigation was conducted by the U.S. Marshals Service. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Marks was immediately turned over to the custody of the U.S. Marshals Service.Fort Thompson Man Pleads Guilty to Simple Assault and Assault by Striking, Beating and WoundingRead the Press Release
United States Attorney Brendan V. Johnson announced that Michael James Farmer, age 26, of Fort Thompson, South Dakota, appeared before U.S. Magistrate Judge Mark A. Moreno on September 23, 2013, and pled guilty to the Information that charged him with Simple Assault-Domestic Violence, and Assault by Striking, Beating, and Wounding-Domestic Violence.
The maximum penalty upon conviction is 6 months of imprisonment and/or a $5,000 fine, 3 years of supervised release, and a $10 special assessment to the Federal Crime Victims Fund on each count. Restitution may also be ordered.
The charges stem from incidents on January 19, 2013 and January 21, 2013, wherein Farmer assaulted the mother of his children by biting her on the arm and back and hitting her with a broom handle.
The investigation was conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Farmer was remanded to the custody of the U.S. Marshals Service pending sentencing which has been set for November 20, 2013.Former Venango County Resident Failed to Update His Status in the Sex Offender RegistryRead the Press Release
ERIE, Pa. - A former resident of Franklin, Pennsylvania, pleaded guilty in federal court to a charge of failure to register under the Sex Offender Registration and Notification Act, United States Attorney David J. Hickton announced today.
Thomas K. Baker, 56, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Baker knowingly failed to update his registration as required by the Sex Offender Registration and Notification Act.
Judge Cercone scheduled sentencing for February 7, 2014 at 11:00 a.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The United States Marshal’s Service conducted the investigation that led to the prosecution of Baker.
Former U.S. Marine Reservist Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
ALBUQUERQUE – Lee Baca, 22, a former U.S. Marine Reservist who resides in Albuquerque, N.M., pleaded guilty this morning to a receipt of child pornography charge under a plea agreement with the U.S. Attorney’s Office.
Baca was charged on June 26, 2013, in a sealed five-count indictment charging him with three counts of receipt of visual depictions of minors engaged in sexually explicit conduct and two counts of possession of visual depictions of minors engaged in sexually explicit conduct. According to the indictment, Baca received child pornography between Dec. 2012 and Feb. 2013, and possessed child pornography in March 2013, in Bernalillo County, N.M. The indictment was unsealed after Baca was arrested on June 29, 2013 by Homeland Security Investigations (HSI) agents.
During today’s plea hearing, Baca entered a guilty plea to Count 1 of the indictment, a receipt of child pornography charge. In his plea agreement, Baca acknowledged that the investigation leading to his arrest began in Oct. 2012, when an agent with the New Mexico Attorney General’s Office (NMAGO) working in an undercover capacity identified an IP Address that was being used to participate in the distribution of child pornography. On March 5, 2013, after investigation revealed that the IP Address was subscribed to Baca’s residence, HSI agents and officers of the Albuquerque Police Department (APD) executed a search warrant at Baca’s residence and seized Baca’s computers and computer-related media.
In his plea agreement, Baca admitted participating in a voluntary interview while the search was ongoing and telling the agents and officers that he used file-sharing programs to download child pornography. Baca also acknowledged that an ongoing forensic examination of his computers and computer-related media uncovered more than 2000 videos and images consistent with child pornography. Baca also acknowledged that an examination of the images and videos on his computers and computer-related media by the National Center for Missing and Exploited Children revealed 564 images and 7 videos of 47 children who have been identified as child pornography victims and have been rescued.
Baca has been in custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Baca faces a maximum prison sentence of not less than five years and not more than 20 years. Baca will be required to register as a sex offender after he completes his prison sentence.
This case was investigated by the Albuquerque office of HSI, the NMAGO and APD. The case is being prosecuted by Assistant U.S. Attorney Charlyn E. Rees as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as part of the New Mexico Internet Crimes Against Children (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 Metro East Public Official Convicted ... AgainRead the Press Release
A former police officer in Alorton and Fairmont City, who also served as a trustee of the Commonfields of Cahokia Public Water District, and as the Alorton Director of Public Safety, pleaded guilty in federal district court to wire fraud and tax evasion on September 25, 2013, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Harry A. Halter, Jr., also known as “Dink,” 53, of Cahokia, Illinois, waived his right to face a grand jury indictment and pled guilty to charges brought directly by the US Attorney’s Office.
Halter was convicted for financial crimes related to a towing business Halter owns. Documents filed in US District Court established that Halter owned and operated Town & Country Towing, located in Alorton, Illinois. In 2009, Halter received a grant of $24,990 in tax increment financing (TIF) towards the construction of a new fence to surround the perimeter of his tow yard. However, Halter’s wire fraud conviction came after he misapplied $19,057.62 of those funds to pay personal expenses – such as credit cards and expenses at Kinkaid Village Marina for personal recreational boating expenses.
Halter was convicted of tax evasion for using his business to pay personal expenses, conducting personal and business transactions through the extensive use of cash, paying employees in cash and not reporting their wages to the IRS, by not keeping accurate records of business transactions, and other acts of concealing his true income from the IRS for the purpose of limiting his tax liability. This criminal conduct allowed Halter to avoid paying at least $128,719 in federal income taxes that he otherwise would have been required to pay. Halter agreed to make full restitution to the IRS and the village of Alorton as a condition of his guilty plea.
Both the St. Clair County State’s Attorney and the United States Attorney have investigated and prosecuted Halter for separate crimes. Halter was convicted of official misconduct in state court on April 4, 2013, after compelling a female motorist to perform oral sex to avoid arrest in 2008. Evidence at that hearing showed that Halter made that traffic stop in the early morning hours outside of his jurisdiction after he had been drinking.
Wire fraud is punishable by not more than 20 years in prison, and/or a $250,000 fine, or both, and not more than three years of supervised release following any term in prison. Tax evasion is punishable by not more than 5 years in prison, and/or a $100,000 fine, and not more than three years of supervised release following any prison term. However, the United States Sentencing Guidelines must be applied to the case and considered by the Court during sentencing. Halter is scheduled to be sentenced in US District Court on January 9, 2014.
The investigation was conducted by agents from the Internal Revenue Service / Criminal Investigations and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
Former Deputy Sheriff Sentenced for Obstructing A Public Corruption InvestigationRead the Press Release
ROME, Ga. - Joshua Lamar Greeson has been sentenced to 10 months in prison for obstructing a public corruption investigation.
“This defendant took an oath to uphold the law and protect the citizens of Murray County,” said United States Attorney Sally Quillian Yates. “Instead, he lied to GBI agents investigating an ongoing public corruption case, betraying the community he swore to protect.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “The criminal conduct of former Murray County Deputy Sheriff Greeson is unconscionable and unthinkable for those serving faithfully within the criminal justice community. Today’s sentencing of Greeson will provide many opportunities for him to reflect on those actions and to serve as notice to others that this conduct will not be tolerated.”
According to United States Attorney Yates, the charges and other information presented in court: In April 2012, a citizen of Murray County, Ga., had a meeting with then-Chief Magistrate Judge Bryant Cochran related to a legal matter. The citizen claimed that during that meeting, Mr. Cochran made inappropriate sexual overtures towards her. In the days and weeks following the complaint, then-Judge Cochran called several local police officers to pass along a Atip@ B that the citizen carried drugs in her white Dodge vehicle.
On August 9, 2012, Cochran called Greeson, who at the time was a Deputy with the Murray County Sheriff=s Department. Five days after the call, on August 14, 2012, Greeson conducted a traffic stop of the white Dodge vehicle. During the traffic stop, Greeson found methamphetamine in a metal can hidden under the tire well of the car. After locating the drugs, Greeson arrested the driver as well as the citizen who was the owner of the vehicle sitting in the front passenger seat.
On August 15, 2012, Greeson met with a Superior Court Judge to obtain a search warrant for a urine sample from the citizen. During the meeting, Greeson falsely stated to the judge, in sum and substance, that he had not received any prior information about the white Dodge vehicle prior to stopping it.
Shortly thereafter, the GBI received information that the drugs had been planted on the vehicle by another individual in an attempt to falsely inculpate the citizen. As a result of that information, the local district attorney’s office dismissed the charges against the citizen.
GBI agents interviewed Greeson on August 23, 2012, in connection with an investigation of public corruption and civil rights violations. During the interview, Greeson falsely stated to the GBI agents that he had not received any information about the white Dodge car before he pulled it over.
He met with the GBI for a second interview on August 27, 2012. During this meeting, Greeson admitted to the GBI that he had lied – in that prior to stopping the white Dodge he had, in fact, been provided with information that the vehicle was supposed to be carrying drugs.
Greeson, 26, of Chatsworth, Ga., was convicted on these charges after pleading guilty on April 12, 2013. On August 29, 2012, he was terminated from the Murray County Sheriff’s Department. United States District Judge Harold L. Murphy sentenced him to 10 months in prison to be followed by one year of supervised release.
This case was investigated by Special Agents of the Federal Bureau of Investigation and Georgia Bureau of Investigation.
Assistant United States Attorneys Michael Herskowitz and Jeffrey W. Davis prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Rome Division is http://www.justice.gov/usao/gan/.
Florida Man Indicted for Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lakeland, Florida, man has been indicted by a federal grand jury for Failure to Pay Child Support.
Jaime L. Warrenburg, age 31, was indicted on March 6, 2013, for failing to pay over $23,273.00 in past due child support. He appeared before U.S. Magistrate Judge John E. Simko on September 23, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 2 years' imprisonment and/or a $250,000 fine, 1 year of supervised release, 1 additional year upon revocation, a $100.00 assessment fee to the Federal Crime Victims Fund, and child support restitution amount owing at the time of sentencing.
The charge is merely an accusation and Warrenburg is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Thomas J. Wright is prosecuting the case.
Warrenburg was released on bond pending trial. A trial date has been set for November 26, 2013.Florida Licensed General Contractor and Spouse Charged with Tax FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Scarlet Veres, a/k/a Scarlet Russo, a/k/a Scarlet Rice, and Steven M. Veres, III (the Veres), both of Clermont, Florida, formerly of Broward County, Florida, were charged with tax fraud. Specifically, the Indictment charges both defendants with conspiracy to defraud the Internal Revenue Service and with willfully filing false tax returns. Steven M. Veres, III, was also charged with aiding and assisting in the preparation of a false tax return. The defendants made their initial appearance yesterday before U.S. Magistrate Judge David A. Baker of the Middle District of Florida.
According to the charges, defendant Steven M. Veres, III was a licensed general contractor who owned and operated Superior Contracting, Inc., a State of Florida construction company. During the 2005 tax year, defendants Scarlet Veres and Steven M. Veres, III were the sole shareholders of Superior Contracting, Inc. In 2005, Superior Contracting, Inc. received millions of dollars from contracts to repair hurricane damaged condominium buildings in St. Lucie County, Florida. As stated in the Indictment, Scarlet Veres was responsible for the corporate bookkeeping which included recording the income and expenses for Superior Contracting, Inc. in the accounting software used to generate the profit and loss statements for the corporation.
As further stated in the Indictment, the Veres were married in July of 2005, in Broward County, Florida. In June 2007, defendant Steven M. Veres, III petitioned for a downward modification of his child support payments to a former spouse, whom Steven M. Veres, III divorced in 2003. In support of this petition, defendant Steven M. Veres, III provided copies of his delinquent personal and corporation income tax returns, which returns were subsequently filed with the IRS. On their 2005 U.S. Individual Income Tax Return, defendants Scarlet Veres and Steven M. Veres, III claimed to have adjusted gross income of a negative amount yet the defendants had expenditures for real property, personal home construction and improvements, vehicles, investments, and jewelry in that same year totaling at least $1.5 million. The false corporate and personal income tax returns served the dual purpose of evading income taxes of defendants Scarlet Veres and Steven M. Veres, III and child support obligations of defendant Steven M. Veres, III.
The Indictment alleges that the Veres conspired with each other to defraud the IRS and file false personal and corporate tax returns for 2005. This was accomplished by diverting corporate receipts of Superior Contracting, Inc. to their own use. In order to conceal their diversion of corporate funds, the Veres allegedly falsified the profit and loss statement of Superior Contracting, Inc. by characterizing personal expenses, as business expenses, which in turn, reduced the income reported on Superior Contracting, Inc.'s corporate tax return. The Indictment further alleges that by providing their tax return preparer with false profit and loss statements for Superior, Inc. the Veres caused the tax preparer to prepare a false 2005 Individual Income Tax Return which failed to correctly report the defendants' share of income generated by Superior Contracting, Inc. The Indictment further states that the defendants made false statements and representations to agents of the Internal Revenue Service for the purpose of concealing the income they received from Superior Contracting, Inc.
If convicted, the defendants face a maximum statutory sentence of up to five years in prison for the conspiracy charge and three years in prison for each count of willfully filing false tax returns. In addition, Steven M. Veres, III faces up to three years in prison for aiding and assisting in the preparation of a false tax return.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Stephanie D. Evans.
The Indictment is only an accusation and is not evidence of guilt. A defendant is presumed innocent unless and until he is proven guilty.
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.
Florida Keys Marine Life Dealers Plead Guilty to Illegal Trafficking of Marine LifeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Otha Easley, Acting Special Agent in Charge, NOAA Fisheries Office of Law Enforcement, and David Pharo, Resident Agent in Charge U.S. Fish & Wildlife Service, Miami, announce that Eric P. Pedersen, 51, of Grassy Key, Florida, and Serdar Ercan, 42, formerly of Grassy Key, entered guilty pleas in Key West today for conspiring to harvest, transport, and sell marine living resources knowing the marine life were taken, possessed, transported, sold, and intended to be sold in violation of the laws and regulations of the State of Florida, contrary to the federal Lacey Act, Title 16, United States Code, Sections 3372(a)(2)(A), and 3373(d)(1) and (2), all in violation of Title 18, United States Code, Section 371.
Pedersen and Ercan each face a possible sentence of up to five years in prison, a period of supervised release of up to three years, and a criminal fine of up to $250,000 in the case. United States District Court Judge Jose E. Martinez set sentencing for the two defendants for December 4, 2013 in Key West, beginning at 10:00 a.m.
According to the Indictment and Joint Factual Statements submitted to the Court, the defendants confessed that during the period extending from October 2010 through approximately February 2011, they engaged in a conspiracy to harvest and transport Live Rock and attached invertebrates, specifically Ricordia florida, sea fans (Gorgonia species), bonnethead sharks (Sphyma tiburo), lemon sharks (Negaprion brevirostris), and nurse sharks (Ginglymostoma cirratum), wildlife from the Florida Keys to buyers throughout the United States and foreign countries. Their activities were conducted without the required licenses and permits mandated by Florida law, and in some instances exceeded permissible bag limits on some of the species of marine life.
According to statements in the record, the harvesting activity occurred within the Florida Keys National Marine Sanctuary, other federal Wildlife Refuges, and State waters. Pursuant to the Florida Keys National Marine Sanctuary and Protection Act and the National Marine Sanctuary Act, the National Oceanic & Atmospheric Administration issued final regulations in January 1997 to govern the conduct of activities within the sanctuary. Title 15, Code of Federal Regulations, Section 922.163(a)(2) prohibits the removal of, injury to, or possession of coral or live rock. Section 922.163(a)(2)(I) prohibits moving, removing, taking, harvesting, damaging, disturbing, breaking, cutting, or otherwise injuring any living or dead coral or coral formation, or attempting any of these activities.
Mr. Ferrer commended the investigative efforts of the NOAA Office of Law Enforcement, the U.S. Fish & Wildlife Service, Office of Law Enforcement. Mr. Ferrer also extended his thanks to the Florida Fish & Wildlife Conservation Commission who assisted in the case. This case was prosecuted by Assistant U.S. Attorneys Thomas Watts-FitzGerald and Antonia Barnes.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Fleming Island Man Charged in Federal Court with Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida - Acting United States Attorney A. Lee Bentley, III announced today that Jimmy Laverne Holmes (57, Fleming Island) has been charged by a federal criminal complaint with receiving child pornography over the Internet. If convicted, Holmes faces at least 5 years, and up to 20 years in prison. Holmes was arrested yesterday at his Fleming Island residence, and later made his initial appearance in court. A detention hearing is scheduled before United States Magistrate Judge Monte C. Richardson on September 26, 2013 at 2:30 p.m.
According to the criminal complaint, on September 24, 2013, agents with the Federal Bureau of Investigation, the Florida Department of Law Enforcement, and the Clay County Sheriff’s Office executed a federal search warrant at Holmes’ residence. Holmes was at the residence and was interviewed by agents. Holmes indicated, among other things, that he works at the Barco-Newton YMCA in Fleming Island, where he teaches sports to children. Holmes admitted using a file sharing program to download child pornography and share it with other computer users, and further stated that child pornography would be found on his external hard drives. An onsite examination of one of Holmes’ external hard drives revealed that it contained child pornography. Holmes was subsequently arrested.
A criminal complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, and the Clay County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
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.
Five Miami Residents Arrested for Alleged Roles in $48 Million Home Health Care Fraud SchemeRead the Press Release
Five Miami residents have been charged for their alleged roles in a $48 million home health Medicare fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office; and Special Agent in Charge Christopher Dennis of the HHS Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement after the case was unsealed following the defendants’ arrests this morning.
On Sept. 24, 2013, a federal grand jury in Miami returned an 11-count indictment charging Marianela Martinez, 45; Mireya Amechazurra, 49; Lissett Jo-Moure, 55; Omar Hernandez, 48; and Celia Santovenia, 49, each with one count of conspiracy to receive health care kickbacks and two counts of receiving kickbacks in connection with a Federal health care program. Each charge carries a maximum penalty of five years in prison upon conviction.
According to the indictment, the defendants participated in a scheme involving Caring Nurse Home Health Care Corp. (Caring Nurse) and Good Quality Home Health Inc. (Good Quality), Miami home health care agencies that purported to provide home health and therapy services to Medicare beneficiaries. The defendants allegedly referred Medicare beneficiaries to Caring Nurse and/or Good Quality in exchange for kickbacks, knowing that Caring Nurse and/or Good Quality would in turn bill Medicare for home health services purportedly rendered for the recruited Medicare beneficiaries.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted.
In a related case, on Feb. 27, 2013, Rogelio Rodriguez and Raymond Aday, the owners and operators of Caring Nurse and Good Quality, were sentenced to 108 and 51 months in prison, respectively. The sentencings followed their December 2012 guilty pleas to one count each of conspiracy to commit health care fraud charged in an October 2012 indictment, which alleged that from approximately January 2006 through June 2011, Caring Nurse and Good Quality submitted approximately $48 million in claims for home health services that were not medically necessary and/or not provided. Medicare paid approximately $33 million for those fraudulent claims.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section.
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,500 defendants who collectively have falsely billed the Medicare program for more than $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 Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Farmington Woman Pleads Guilty to Aggravated Assault ChargeRead the Press Release
ALBUQUERQUE – Thelda Frank, 43, an enrolled member of the Navajo Nation who resides in Farmington, N.M., pleaded guilty this morning to an aggravated assault charge under a plea agreement with the U.S. Attorney’s Office.
Frank was arrested in Jan. 2013, based on an indictment charging her with assault with a dangerous weapon and assault resulting in serious bodily injury. According to the indictment, Frank assaulted a man with a knife on July 27, 2011, in a location within the Navajo Indian Reservation.
During this morning’s proceedings, Frank pleaded guilty to a criminal information charging her with aggravated assault. According to the plea agreement, Frank admitted stabbing a man in the abdomen with a knife on July 27, 2011.
At sentencing, Frank faces a maximum of 18 months in prison followed by a term of supervised release to be determined by the court.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Jacob A. Wishard.
Ernest Goodman Sentenced to 300 Months in Prison Following Robbery SpreeRead the Press Release
Memphis, TN – The final member of a criminal gang responsible for at least three bank robberies and two business robberies was sentenced on Monday to 300 months in federal prison, announced U.S. Attorney Edward L. Stanton III.
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According to facts revealed in the indictment and during plea and sentencing hearings, from July 21 to 27, 2011, Ernest Goodman, 25, of Memphis, TN, was part of a gang that robbed three Bank of America branches across the city. Goodman himself also robbed a Pizza Hut located on Elvis Presley Blvd. and a Church’s Chicken restaurant on Summer Ave.
On at least one occasion during their crime spree, members of the gang discharged firearms and pistol-whipped innocent victims. They also robbed victims personally, in addition to robbing the businesses.
On May 16, 2013, Goodman pleaded guilty to two counts of bank robbery, one count of using a firearm during a crime of violence, and two counts of robbery affecting interstate commerce. U.S. District Judge S. Thomas Anderson sentenced Goodman to 84 months for using a firearm during a crime of violence and to 216 months for the other four charges. The four robbery charges are to be served concurrently, and the firearm charge is to be served consecutively, for a total of 300 months. Judge Anderson also ordered Goodman to pay $23,217 in restitution.
The five other members of the gang pleaded guilty to various charges. They are:
Thomas Vaughn, 28, of Memphis. Vaughn pleaded guilty on July 23, 2012, to three counts of bank robbery. On November 7, 2012, Judge Anderson sentenced him to a total of 300 months in prison and ordered restitution in the amount of $37,054.
Mario Ewing, 32, of Memphis. Ewing pleaded guilty on July 12, 2012, to three counts of bank robbery and three counts of using a firearm during a crime of violence. On August 8, 2013, Judge Anderson sentenced him to a total of 240 months in prison and ordered restitution in the amount of $37,054.
Edward Jones, 25, of Memphis. Jones pleaded guilty on August 31, 2012 to two counts of bank robbery and one count of using a firearm during a crime of violence. On January 29, 2013, Judge Anderson sentenced him to a total of 240 months in prison and ordered restitution in the amount of $32,908.
Deandre Taylor, 25, of Memphis. Taylor pleaded guilty on November 15, 2012 to one count of bank robbery and one count of using a firearm during a crime of violence. On April 16, 2013, Judge Anderson sentenced him to a total of 120 months in prison and ordered restitution in the amount of $13,841.
Joshua Shelton, 19, of Memphis. Shelton pleaded guilty on July 13, 2012, to one count of bank robbery and one count of using a firearm during a crime of violence. On October 31, 2012, Judge Anderson sentenced him to a total of 84 months in prison and ordered restitution in the amount of $13,841.
This case was investigated by the Safe Streets Task Force, comprised of law enforcement officials from the Federal Bureau of Investigation, the Memphis Police Department, the Shelby County Sheriff’s Office, the Germantown Police Department, and the Bartlett Police Department. Assistant U.S. Attorney Lorraine Craig represented the government.Erie Man Sentenced to 5 Years in Prison for Conspiring to Sell Crack CocaineRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 60 months in federal prison on his conviction of violating federal drug distribution laws, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on James Reginold Mitchell, 33.
According to information presented to the court, on April 15, 2011, Mitchell conspired with another individual in Erie, Pennsylvania to distribute and possess with intent to distribute more than an ounce of crack cocaine in exchange for $1850.00.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the FBI's Erie Area Gang Law Enforcement (EAGLE) task force, which is comprised of members of the Federal Bureau of Investigation, the Pennsylvania State Police, the Pennsylvania Attorney General's Bureau of Narcotics Investigation, and the Erie Police Department, for the investigation leading to the conviction of Mitchell.
Erie Man Obtained Loans and Credit Cards Through FraudRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of using a social security number assigned to another, United States Attorney David J. Hickton announced today.
Edward Phillips, 58, pleaded guilty to four counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Phillips obtained and used a social security number that was not assigned to him to obtain various credit cards and loans.
Judge Cercone scheduled sentencing for February 7, 2014 at 11:30 a.m. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Pending sentencing, the court continued Mitchell on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Social Security Administration, Office of Inspector General conducted the investigation that led to the prosecution of Phillips.
El Paso Man Sentenced to 15 Years in Federal Prison for Firearms Straw Purchasing and Smuggling OperationRead the Press Release
In El Paso this morning, U.S. District Judge Frank Montalvo sentenced 25-year-old Julio Adrian Pesqueira-Galaviz, to the statutory maximum of 15 years in federal prison followed by five years of supervised release for his leadership role in a scheme to illegally purchase firearms in the U.S. then smuggle them into Mexico for the purposes of arming members of the Sinaloa Drug Trafficking Organization announced United States Attorney Robert Pitman, Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Robert Champion, Dallas Division, and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, El Paso Division.
On June 26, 2013, Pesqueira pleaded guilty to one count each of conspiracy to make a false statement during the purchase of a firearm; false statement during the purchase of a firearm; and, conspiracy to transfer a firearm for use in a crime of violence or drug trafficking crime. By pleading guilty, Pesqueira admitted that from July 2010 to May 2013, he purchased firearms, as well as provided money to individuals in order for them to purchase firearms, from El Paso area gun dealers to include a Barrett .50 caliber rifle and an assortment of various military style semi-automatic firearms including, AK-47’s, AR-15’s and Draco 7.62x39 caliber pistols.
Pesqueira is the first of 11 defendants charged in this case to be sentenced. This investigation was conducted by ATF and DEA agents together with investigators from Homeland Security Investigations and the El Paso Police Department.
Eagle Butte Man Charged with Aggravated Sexual Abuse of A Child and Sexual Contact with A ChildRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Child and Sexual Contact with a Child.
Austin Wade Bissonette, age 25, was indicted on September 17, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 23, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is life in custody and/or a $250,000 fine, up to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
Bissonette is alleged to have sexually abused and had sexual contact with a child at Eagle Butte between August 2009 and August 2010.
The charges are merely an accusation and Bissonette is presumed innocent until and unless proven guilty.The investigation is being conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Bissonette was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.Dunmore Tax Return Preparer Sentenced for Tax EvasionRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dominick J. Muracco, Jr., age 60, of Scranton, Pennsylvania, was sentenced in federal court today before Senior U.S. District Judge A. Richard Caputo for attempted income tax evasion regarding his 2008 federal income tax return. Muracco was sentenced to two months imprisonment, four months of home confinement and one year of supervised release. Full restitution was made prior to sentencing.
According to United States Attorney Peter J. Smith, Muracco previously operated a business in Dunmore, Pennsylvania known as Automated Payroll and Tax Service (“APTS”) which prepared tax returns and represented taxpayers before the IRS. Muracco admitted that he filed a false personal income tax return for 2008 which omitted over $125,000 in taxable income and over $31,000 in tax. Muracco also admitted that for the years 2006, 2007, 2008 and 2009, he under-reported his income by over $276,000 and his tax by over $63,000. The unreported income came primarily from fees that Muracco charged APTS clients for tax program services.
The case was investigated by the Criminal Investigation Division of the IRS and was prosecuted by Senior Litigation Counsel Bruce Brandler.
Donna Man Sentenced for “Lasering” Customs and Border Protection HelicopterRead the Press Release
McALLEN, Texas – Margarito Tristan III, 28, of Donna, has been ordered to federal prison for aiming a laser at a Customs and Border Protection (CBP) helicopter, announced United States Attorney Kenneth Magidson. Tristan pleaded guilty July 1, 2013.
Today, U.S. District Judge Micaela Alvarez ordered him to prison for a term of 18 months to be immediately followed by a two-year-term of supervised release.
On March 7, 2013, CBP Air and Marine offices were conducting a night training operation in CBP helicopter, designated Omaha 26A. At approximately 10:20 p.m., while conducting a training flight near Weslaco, the pilots were illuminated by a green laser at which time their eyes were irradiated by the laser causing them disorientation.
After altering course, the aircrew was able to detect a vehicle which was the source of the laser by using their night vision goggles. The aircrew then directed law enforcement officers on the ground to the vehicle and they subsequently conducted a traffic stop. A green laser was recovered from the vehicle and Tristan admitted to using it to illuminate the helicopter.
During the sentencing hearing today, the court cited its concern, not only for the lives of the pilots, but also the lives of those on the ground should the helicopter have gone down in formulating the sentence for this first-time offender.
Tristan was initially permitted release upon posting bond. However, he has not yet been able to do so and he remains in custody where he has been since his arrest.
The investigation was conducted by the FBI, Customs and Border Protection, Texas Department of Public Safety, Hidalgo County Sheriff’s Department and the Donna Police Department. Assistant United States Attorney Steven Schammel is prosecuting.
Deported Guatemalan Charged with Illegally Re-entering United StatesRead the Press Release
PITTSBURGH - An individual found in Pittsburgh, Pa., has been indicted by a federal grand jury in Pittsburgh on a charge of re-entry into the United States after deportation, United States Attorney David J. Hickton announced today.
The one-count indictment named Milton Garcia-Lopez, 25, formerly from Guatemala, as the sole defendant.
According to indictment, Milton Garcia-Lopez, an alien, was removed from the United States by United States Immigration and Customs Enforcement on April 12, 2007. Milton Garcia- Lopez was found on May 27, 2013, subsequent to his arrest in Pittsburgh, Pa.
The law provides for a maximum total sentence of two years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul E. Hull is prosecuting this case on behalf of the government.
Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case.
An indictment or information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Dallas Man Sentenced to 40 Years in Federal Prison for Committing Several Violent Takeover-Style Armed Bank RobberiesRead the Press Release
Co-Defendant, Who Murdered a Brinks Security Guard,
Serving Two Consecutive Life SentencesDALLAS — Jesus Sandoval, 51, was sentenced this morning by U.S. District Judge Barbara M. G. Lynn to 40 years in federal prison after pleading guilty in January 2013 to his role in three violent, takeover-style, armed bank robberies that he and co-conspirator Enrique Lopez, 29, committed in 2009, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically, Sandoval pleaded guilty to one count of conspiracy to commit bank robbery and two counts of using, carrying, and brandishing a firearm during and in relation to, and possessing firearm in furtherance of a crime of violence.
Lopez was sentenced in October 2012 to two consecutive life sentences, plus 85 years in federal prison, following his guilty plea in June 2012 to murdering a Brinks Security Guard and committing five violent takeover-style, armed bank robberies.
Factual resumes filed in the case detail the robberies. On February 13, 2009, Lopez and Sandoval, armed with firearms, robbed a Loomis security guard as he replenished cash in an automatic teller machine (ATM) located at the Bank of America on Camp Wisdom Road in Dallas. Lopez grabbed the guard from behind, put a pistol to his neck, threatened to kill him and demanded money. The two took the guard’s service weapon and money bags, and Lopez fired at the Loomis driver.
On August 1, 2009, Lopez and Sandoval, each armed with a firearm, robbed the Wachovia Bank located at 39703 Lyndon B. Johnson Freeway, in Dallas, threatening bank employees with death during the course of the robbery. After taking the cash, they fled in a vehicle fitted with stolen license plates.
On the morning of October 3, 2009, Sandoval and his accomplice, Lopez, each armed with a loaded pistol, entered the Chase Bank located at 12329 Lake June Road in Balch Springs. The bank was celebrating its grand opening and more than 40 people were in the bank. Lopez and Sandoval, with their pistols, threatened the lives of the people inside the bank and claimed they had a bomb in the backpack that would detonate if anyone notified the police. Following a high-speed chase, Lopez and Sandoval were arrested. Police recovered the loaded pistols, the bank’s money and the backpack from the car, which, while it did not contain a bomb, contained two boxes of ammunition.
The case was investigated by the FBI, the Dallas Police Department and the Balch Springs Police Department. Assistant U.S. Attorneys Brandon McCarthy and Jerri Sims prosecuted.
Creston Kindness Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on September 25, 2013, before Chief U.S. District Judge Dana L. Christensen, CRESTON KINDNESS, a 30-year-old resident of Fort Hall, Idaho, and an enrolled member of a federally-recognized tribe, was sentenced to a term of:
Prison: 63 months
Special Assessment: $100
Forfeiture: firearm
Supervised Release: 3 years
KINDNESS was sentenced in connection with his guilty plea to assault resulting in serious bodily injury.
In an Offer of Proof filed by Assistant U.S. Attorney Danna R. Jackson, the government stated it would have proved at trial the following:
KINDNESS became agitated when the victim did not tell him where his girlfriend was so he shot the victim in the leg with a .40 caliber Smith and Wesson handgun. The handgun was found in the bathroom, where KINDNESS had been when he was apprehended by tribal law enforcement.
The bullet went through the victim's leg and she was hospitalized for two nights. The bullet, that was retrieved at the crime scene, had mushroomed.
The crime occurred within the exterior boundaries of the Rocky Boy's Indian Reservation.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that KINDNESS will likely serve all of the time imposed by the court. In the federal system, KINDNESS does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
Counter-Proliferation Working Group Holds 5th Annual U.S. Export Controls and Espionage ConferenceRecord-breaking Numbers with over 250 in AttendanceRead the Press Release
BOSTON – The Counter-Proliferation Working Group (CPWG), chaired by the U.S. Attorney’s Office for the District of Massachusetts, today hosted more than 250 individuals at the fifth annual conference on U.S. export controls and espionage at Boston University. Representatives from U.S. corporations, including defense contractors, and academic institutions were in attendance.
During the conference, participants were provided information on how to comply with their export obligations and protect critical technology. Also discussed was the growing national security and economic threats posed by cyberattacks and procurement efforts by foreign nationals and foreign governments, primarily the People’s Republic of China and Iran, to illegally obtain export restricted U.S. military and dual-use technology as well as intellectual property and proprietary information of U.S. companies.
The conference was organized and moderated by Assistant U.S. Attorney and Export Case Coordinator B. Stephanie Siegmann of the U.S. Attorney’s Office. Opening remarks were provided by United States Attorney Carmen M. Ortiz and Gloria Waters, Vice President and Associate Provost for Research at Boston University.
During her remarks, United States Attorney Ortiz said, “Preventing our adversaries from obtaining U.S. export restricted technology is one of our highest priorities. It is clear, however, that the government cannot guard our nation from this immense threat alone; we need the help of our business and academic partners to safeguard sensitive U.S. technology.”
Presentations were provided by representatives of the U.S. Attorney’s Office, Department of Justice’s National Security Division, Federal Bureau of Investigation, Homeland Security Investigations, and Defense Security Service. Kevin J. Wolf, Assistant Secretary of Commerce for Export Administration, attended the conference and spoke on the changes to U.S. export laws resulting from the recent export reform initiative. Lastly, export compliance officers from Harvard Medical School, Boston University, and iRobot spoke on a panel on export compliance issues.
The Massachusetts CPWG, chaired by AUSA Stephanie Siegmann of the U.S. Attorney’s Office, was created in December 2007 to help combat illegal exports of U.S. military parts and sensitive technology. The CPWG consists of representatives of law enforcement and intelligence agencies, including the U.S. Department of Homeland Security's Homeland Security Investigations, Department of Commerce's Office of Export Enforcement, Federal Bureau of Investigation, Defense Criminal Investigative Service, Defense Security Service, Naval Criminal Investigative Service, Air Force Office of Special Investigations, Army, U.S. Customs and Border Protection, Missile Defense Agency, and Defense Intelligence Agency. The CPWG shares information regarding current threats and suspicious activities regarding the transfer of sensitive U.S. technology through illegal means and coordinates investigations.
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Conroe Man Gets Hefty Sentence for Interstate Transportation of A MinorRead the Press Release
HOUSTON – Jacob Daniel West, 34, has been ordered to prison for 13 years following his conviction of transporting a minor with the intent to engage in sexual activity, announced United States Attorney Kenneth Magidson. West pleaded guilty July 11, 2013.
U.S. District Judge Sim Lake, who accepted the plea, heard a statement written by the victim’s grandmother and handed West a sentence of 156 months in federal prison to be followed by 15 years of supervised release. West will also be ordered to register as a sex offender.
West travelled with the 14-year-old minor female from Texas through several states over the course of approximately a week in January 2013. They travelled together through Oklahoma, Arkansas, Tennessee, New York, Virginia and the Carolinas before arriving in Florida.
The victim had engaged in sex acts on previous occasions with West, who was a neighbor of her mother and father. She was legally in the custody of her grandmother but had been staying with her parents on occasion at the time she left the area with West.
On Jan. 28, 2013, the St. Lucie County Sheriff’s Office in Ft. Pierce, Fla., located West’s car at a Sleep Inn hotel. West had rented a room at the hotel the previous night during which time he engaged in sexual activity with the victim. Officers had observed the room and arrested West as he exited.
West admitted he stole an AR-15, hand guns, money and credit cards from a deceased friend in Texas prior to leaving the state with the victim.
West will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
FBI and the U.S. Marshals Service investigated.This case, prosecuted by Assistant United States Attorney Sherri Zack, 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."
Coats IndictmentRead the Press Release
BATON ROUGE, LA—The United States Attorney’s Office announced today that SCOTT E. COATS, age 44, of Baton Rouge, Louisiana, was indicted today for robbing the First NBC Bank in Denham Springs, LA, on August 16, 2013, in violation of Title 18, United States Code, Section 2113(a). COATS is charged with taking approximately $1500 during the robbery.
COATS was previously convicted in 2005 of robbing a Hancock Bank in Baton Rouge on November 1, 2003, and an AmSouth Bank in Denham Springs on November 5, 2003. COATS was sentenced in February 2005 to 84 months imprisonment and three years of supervised release for each robbery, to be served concurrently. In December 2011, while on supervised release, COATS’ release was revoked for violations of the terms of his supervision and he was sentenced to an additional 24 months imprisonment.
This investigation was conducted by the Denham Springs Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Jennifer M. Kleinpeter who also serves as Deputy Criminal chief.
Churchill Man Pleads Guilty to Selling Drug SamplesRead the Press Release
PITTSBURGH - An Allegheny County resident pleaded guilty in federal court to a charge of unlawfully selling drug samples, United States Attorney David J. Hickton announced today.
Lawrence A. Swanson, 54, pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that Swanson, from in and around January 2005, to in and around May 2011, knowingly and unlawfully sold drug samples, specifically, samples of Allegra, Avalide, Avapro, Avelox, Benicar, Celebrex, Crestor, Cymbalta, Diovan, Diovan HCT, Evista, Janumet, Januvia, Lexapro, Lovaza, Lyrica, Micardis HCT, Namenda, Nexium, Plavix, Prevacid, Prilosec, Seroquel XR, Singular, TriCor, Vytorin, Zetia, Zyprexa, Benicar, Lipitor, and Pristi Q, prescription drugs.
Judge Bissoon scheduled sentencing for Jan. 31, 2014. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney Nelson P. Cohen is prosecuting this case on behalf of the government.
The U.S. Food and Drug Administration-Office of Criminal Investigations, and the Internal Revenue Service-Criminal Investigation, conducted the investigation that led to the prosecution of Lawrence A. Swanson.
Child Pornography Producer Sentenced to Nearly 20 Years in Federal Prison Followed by A Lifetime of Supervised ReleaseRead the Press Release
DENVER – Robert Arthur Brewster, age 42, of Clifton, Colorado, was sentenced yesterday by U.S. District Court Judge R. Brooke Jackson to serve 235 months (just under 20 years) in federal prison for production of child pornography, United States Attorney John Walsh and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Kumar Kibble announced. Following the nearly 20 year sentence, Judge Jackson ordered Brewster to spend the rest of his life on court supervision as well as register as a sex offender. Brewster was also ordered to pay $3,000 to one of the victims of his crime that submitted a request for restitution. The defendant appeared at the hearing in custody, and was remanded at its conclusion.
Brewster was indicted by a federal grand jury in Denver on February 26, 2013. He pled guilty before Judge Jackson on July 10, 2013. He was sentenced on September 24, 2013.
According to court documents, including the stipulated facts contained in the plea agreement, on January 7, 2010, and Internet Crimes Against Children (ICAC) task force officer with the Kenton County Police Department in Kenton, Kentucky, working in an undercover capacity as a 13-year old girl, received an instant message from the online profile of the defendant. The chat was short, with both parties simply saying “hi”.
On January 9, 2010, the defendant identified himself as a 38-year old male living in Clifton, Colorado. The undercover officer (UCO) responded by identifying himself as a 13-year old girl living in Kentucky. The defendant and the UCO had several message sessions where the conversation became more focused on pornography. The defendant asked the UCO if she shared porn on the internet and subsequently began forwarding the UCO pictures and video clips of prepubescent minors engaged in sexually explicit conduct.
During the chats the defendant admitted that he took sexually explicit pictures of a minor child under the age of 12 with whom he had access. He provided those pictures to the UCO. The pictures, investigators determined, where of a minor child, under 12-years of age, to whom the defendant had access. The pictures showed sexually explicit conduct, including one where the defendant was touching the child’s vaginal area.
The defendant and the UCO discussed via chat that the UCO wanted to get a webcam. The defendant asked if the UCO would share pictures with the defendant. The defendant continued to share pictures with the UCO. Brewster also pointed the UCO to various internet locations where the UCO could view additional child pornography. The defendant also admitted that he had thousands of pictures and videos that he could share with the UCO.
On January 16, 2010, the defendant told the UCO that he had purchased the webcam for her. He then showed the UCO his bedroom via his own webcam. During this session, the UCO saw the defendant’s tattoos, which were later used to help identify him as the person who produced child pornography of the minor victim. The UCO ultimately received the webcam sent by the defendant.
A search warrant was then executed at Brewster’s residence in Clifton, Colorado. Law enforcement seized computer media from the defendant’s residence, which yielded 870 images and 22 videos of child pornography. The media also contained 23 images of the minor the defendant had access to and used to produce child pornography.
“This case shows why federal law provides for severe punishment of child pornography defendants: the defendant in this case produced child pornography by photographing his sexual abuse of a child, and then distributed the images over the internet,” said U.S. Attorney John Walsh. “This defendant will spend the rest of his life either in prison or being supervised by the court as the government does its best to stop him from hurting children ever again.”
“Some of the longer federal prison sentences are reserved for those who sexually exploit children to produce child pornography, as in Mr. Brewer’s case,” said Kumar C. Kibble, special agent in charge of HSI Denver. “Our HSI special agents are extremely vigilant about rescuing these innocent children, and pursuing prosecution against their victimizers.”
This case was investigated by Homeland Security Investigations (HSI). The Mesa County Sheriff’s Office assisted with the search warrant. The Colorado Springs ICAC officers and forensics also participated in the investigation.
The defendant was prosecuted by Special Assistant U.S. Attorney Shana Martin and Assistant U.S. Attorney Alecia Riewerts Wolak.
This case was brought as part of Project Safe Childhood (PSC), 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, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/ For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
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Charlotte Man Sentenced to 12 Months in Prison for Vehicle Emissions FraudRead the Press Release
Defendant Was A Licensed Emissions Inspector At Carolina Tire & Auto In Pineville
CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad, Jr. sentenced a Charlotte man today to 12 months in prison for conducting false vehicle emission inspections, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Jose Manuel Cabrera, 28, of Charlotte, was also ordered to serve three years under court supervision following the prison term with the condition that he will not obtain a license to or actually conduct any vehicle emissions testing. Cabrera was also ordered to pay a $10,000 fine and to complete 100 hours of community service.
U.S. Attorney Tompkins is joined in making today’s announcement by Special Agent in Charge Maureen O’Mara of the U.S. Environmental Protection Agency, Criminal Investigation Division (EPA-CID), Atlanta Area Office; Greg McLeod, Director of the North Carolina State Bureau of Investigation (NC SBI); and Steven M. Watkins, Director of the North Carolina Division of Motor Vehicles License & Theft Bureau (NC DMV L&T).
According to court records and today’s sentencing hearing, Cabrera worked at Carolina Tire & Auto service center (Carolina Tire) in Pineville, as a mechanic and a vehicle emissions inspector licensed by the state of North Carolina. As a state-licensed emissions inspector, Cabrera tested vehicles to ensure they met federally-mandated emissions requirements. Court records show that from February 2011 to May 2012, and while employed at Carolina Tire, Cabrera conducted 164 illegal vehicle emissions inspections using surrogate vehicles to falsely pass vehicles that would have failed emissions inspection. According to court records, Cabrera performed these fraudulent emissions tests at Carolina Tire by entering into the state database the information of the vehicle that needed to be tested but then connected the testing equipment to a vehicle that was either being worked on at Carolina Tire or had already been repaired and had not been picked by the owner. The illegal practice of utilizing substitute vehicles for emissions testing is referred to in the industry as “clean scanning.” Court records indicate that Cabrera charged $60 to clean scan a vehicle. Carolina Tire’s Pineville service center was suspended from conducting emissions testing for ten years by the NC DMV L&T.
Cabrera’s sentence was enhanced because of Cabrera’s criminal history, including membership in the MS-13 gang. Cabrera was taken into custody following the sentencing hearing. He will be transferred into the custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The Clean Air Act is a federal law that authorizes the EPA to establish air quality standards to protect public health and welfare and to regulate emissions of hazardous air pollutants. As required by the Act, the State of North Carolina has established a vehicle emissions testing program that requires cars in 48 out of North Carolina’s 100 counties be inspected to ensure that their emissions do not exceed limits for hydrocarbons, nitrogen oxides, and other compounds. According to the EPA, the Charlotte metropolitan area exceeds the 8-hour standard set for ozone, a potent irritant that can cause lung damage and other types of respiratory problems. The Clean Air Act prohibits making false statements in records, including emissions certificates and database records that are required to be maintained by the Act.
The investigation of this case was conducted by the EPA’s Criminal Investigation Division, NC SBI’s Diversion and Environmental Crimes Unit and the NC DMV License & Theft Bureau, with assistance from the North Carolina Division of Air Quality, Mobile Sources Compliance Branch. The prosecution was handled by Assistant United States Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.
Cary Man Sentenced for Manufacturing Child PornographyRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Terrence W. Boyle sentenced KYLE MARTIN INCH , 28, of Cary, North Carolina to 300 months imprisonment, followed by a lifetime of supervised release.
INCH was named in an Indictment filed on February 5, 2013 charging him with three counts of Manufacture/Production of Child Pornography; ten counts of Receipt of Child Pornography; and one count of Possession of Child Pornography. On May 21, 2013, INCH pled guilty to Count 1, Manufacture/Production of Child Pornography in violation of Title 18, United States Code, Sections 2251(a) and (e).
According to the investigation, in January 2011, the Cary Police Department initiated an online undercover investigation related to the distribution of child pornography. Agents determined that the computer used by INCH offered to distribute child pornography numerous times between January and September of 2011. Agents executed a search warrant pursuant to which they discovered that INCH had not only amassed a collection of hundreds of images and videos of child sexual abuse, but had been recording his own sexual abuse of a child.
This case is part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national initiative, go to www.projectsafechildhood.gov.Investigation of this case was conducted by the Cary Police Department. Assistant United States Attorneys Leslie Cooley, Ethan Ontjes, and Jay Exum prosecuted this case for the United States, in coordination with the Wake County District Attorney’s Office.
California Mobile Lab and X-ray Provider, <br /> Diagnostic Laboratories and Radiology, to Pay $17.5 Million <br /> for Falsely Billing Medicare and Medi-CALRead the Press Release
Kan-Di-Ki LLC, formerly known as Kan-Di-Ki Inc., doing business as Diagnostic Laboratories and Radiology (Diagnostic Labs), will pay $17.5 million to settle allegations that the California-based company violated the federal and California False Claims Acts by paying kickbacks for referral of mobile lab and radiology services subsequently billed to Medicare and Medi-Cal (the state of California’s Medicaid program), the Justice Department announced today.
“This settlement demonstrates the Department of Justice’s continuing efforts to protect public funds,” said Stuart F. Delery, Assistant Attorney General for the Civil Division. “We will continue to work with our state partners to recover misspent monies from companies that abuse government health care programs.”
Diagnostic Labs allegedly took advantage of Medicare’s different reimbursement system for inpatient and outpatient services by charging Skilled Nursing Facilities (SNFs) in California discounted rates for inpatient services paid by Medicare in exchange for the facilities’ referral of outpatient business to Diagnostic Labs. For inpatient services, Medicare pays a fixed rate based on the patient’s diagnosis, regardless of specific services provided. For outpatients, Medicare pays for each service separately. Diagnostic Labs’ scheme enabled the SNFs to maximize profit earned for providing inpatient services by decreasing SNFs’ costs of providing these services. It also allegedly allowed Diagnostic Labs to obtain a steady stream of lucrative outpatient referrals that it could directly bill to Medicare and Medi-Cal. The provision of inducements, including discounted rates, to generate referrals is prohibited by federal and state law.
“When medical facility owners illegally offer discounts to customers to generate business, it results in inflated claims to government health care programs and increases costs for all taxpayers,” said Glenn R. Ferry, Special Agent in Charge for the Los Angeles Region of the Department of Health and Human Services’ Office of Inspector General. “This $17.5 million settlement demonstrates OIG’s ongoing commitment to safeguarding federal health care programs and taxpayer dollars against all types of fraudulent activities.”
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $16.6 billion through False Claims Act cases, with more than $11.8 billion of that amount recovered in cases involving fraud against federal health care programs.
This settlement resolves a lawsuit filed by former Diagnostic Lab employees, Jon Pasqua and Jeff Hauser, under the qui tam, or whistleblower, provisions of the federal and state False Claims Acts. The acts allow private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery . Together, Pasqua and Hauser will receive $3,755,500 as their share of the federal government’s recovery.
The investigation was jointly handled by the U.S. Attorney’s Office for the Central District of California, the Justice Department’s Civil Division, Commercial Litigation Branch and the Department of Health and Human Services’ Office of the Inspector General.
The qui tam case is captioned United States and State of California ex rel. Pasqua et al. v. Kan-Di-Ki LLC f/k/a Kan-Di-Ki Inc. d/b/a Diagnostic Laboratories and Radiology, Civ. Action No. 10 0965 JST (Rzx) (C.D. Cal.). The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Bullhead Man Pleads Guilty to Two Counts of Domestic Assault by an Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that Derek Archambault, age 31, of Bullhead, South Dakota, appeared before U.S. District Judge Charles B. Kornmann on September 23, 2013, and pled guilty to two counts of Domestic Assault by an Habitual Offender.
Each charge carries a maximum sentence of 5 years’ imprisonment and/or a $250,000 fine, 3 years of supervised release and an additional 2 years of supervised release upon revocation. Restitution and a $100 special assessment to the Federal Crime Victims Fund may also be ordered on each count.
The conviction stems from an incident on May 20, 2010, when the Defendant assaulted the victim by hitting her in the face causing her mouth to be swollen and bruised, with cuts on her lips. At the time of the assault, Archambault had a final conviction on at least two separate prior occasions for offenses that would have been, if subject to federal jurisdiction, an assault against a spouse and intimate partner.
The investigation was conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Archambault was remanded to the custody of the U.S. Marshals Service pending sentencing which has been set for December 30, 2013.Brooklyn Man Charged with Conspiracy to Commit Honor Killings in PakistanRead the Press Release
Mohammad Ajmal Choudhry was arraigned earlier today on a superseding indictment charging him with conspiring to commit murder in a foreign county, transmitting threats via interstate communications, and visa fraud. He is next scheduled to appear in court before United States District Judge William F. Kuntz II tomorrow at 11:00 a.m. at the United States Courthouse in Brooklyn, New York.1
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; James T. Hayes, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York; and Michael R. Fogarty, Acting Special Agent-in-Charge, New York Field Office, U.S. Department of State’s Diplomatic Security Service.
According to the superseding indictment and other court filings submitted by the government, Choudhry’s daughter, Amina Ajmal, was held against her will in Pakistan for more than three years by relatives at her father’s direction. During that time, Ajmal, a U.S. citizen, was forced into an arranged marriage with a Pakistani national for the purpose of obtaining a U.S. visa for that individual. Ajmal eventually escaped Pakistan and returned to the United States with the assistance of a cousin and U.S. State Department officials. During subsequent recorded telephone calls between Ajmal and Choudhry, the defendant threatened to orchestrate the murder of Ajmal’s cousin if Ajmal, whose whereabouts remained unknown to the defendant, did not return immediately to the family home in Brooklyn. On February 25, 2013, after Ajmal refused to return home, Ajmal’s cousin’s father and sister were shot and killed in Pakistan. According to an eyewitness, Choudhry’s brother was observed standing over the victims, holding a gun and desecrating the bodies. Agents from HSI and the Diplomatic Security Service placed Choudhry under arrest in Brooklyn later that same day.
“As alleged, the defendant viewed his daughter as a commodity to be bartered. When she escaped those holding her overseas and fled to safety in the U.S., the defendant enlisted his confederates to retaliate against those who had helped her to freedom. As a result of his plot, two innocent people were murdered in Pakistan,” stated United States Attorney Lynch. “We are committed to ensuring that people in the United States who export murder abroad will be brought to justice.” Ms. Lynch expressed her grateful appreciation to HSI and the State Department, which have worked closely together to investigate the case, and added that the government’s investigation is ongoing.
“There is nothing less honorable than the murder of innocent people,” said HSI New York Special Agent-in-Charge Hayes. “HSI and our global law enforcement partners work diligently crimes like these and serve justice on the predators who commit them.”
“The Diplomatic Security Service is firmly committed to working with the U.S. Attorney’s Office and Homeland Security Investigations to bring those who commit crimes to justice,” said Gregory B. Starr, Principal Deputy Assistant Secretary and Director, U.S. Department of State’s Diplomatic Security Service. “The Diplomatic Security Service’s strong relationship with our law enforcement partners continues to be essential in the pursuit of justice.”
The government’s case is being prosecuted by Assistant United States Attorneys Amanda Hector, Richard M. Tucker and Margaret E. Gandy.
The Defendant
MOHAMMAD AJMAL CHOUDHRY
Age: 60_____________________________
1 The charges contained in the superseding indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Belcourt Man Convicted of Assault with a Dangerous WeaponRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on Sept. 25, 2013, Jason A. Azure, 31, Belcourt, N.D., was found guilty by a federal jury in U.S. District Court on a charge of assault with a dangerous weapon.
On May 6, 2013, Azure stabbed a tribal security officer in the face with a butter knife. The injury resulted in a cut to the officer’s cheek, which required medical treatment.
The charge of assault with a dangerous weapon carries a statutory maximum penalty of 10 years in federal prison and a $250,000 fine.
The case was investigated by Bureau of Indian Affairs – Turtle Mountain Agency.
Sentencing for Azure has not been scheduled.
Assistant U.S. Attorney Brandi Sasse Russell is prosecuting the case.
Baltimore Conspirator Pleads Guilty in Bank Fraud SchemesRead the Press Release
Greenbelt, Maryland – Nelly Dadson, age 23, of Baltimore, pleaded guilty yesterday to conspiring to commit bank fraud, bank fraud and aggravated identity theft in connection with two bank fraud schemes.The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; John Phillips, Acting Assistant Inspector General for Investigations, U.S. Department of the Treasury Office of Inspector General; and Special Agent in Charge Kathy A. Michalko of the United States Secret Service – Washington Field Office.
“Protecting postal customers from mail theft and identity theft is a priority for the Postal Inspection Service,” said Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division. “This case demonstrates Postal Inspectors' commitment to that mission.”
According to her plea, from June 14, 2010 to March 11, 2013, Dadson and others opened bank accounts in their own names and in the names of shell corporations that they controlled. Dadson and others used counterfeit checks that resembled convenience checks that had been stolen from mailboxes in Montgomery and Prince George’s Counties. The counterfeit checks contained names, addresses and account information that appeared on the convenience checks. Dadson deposited these counterfeit checks into accounts controlled by the conspirators and then withdrew funds from the accounts. Her co-conspirators paid Dadson between $1,000 and $5,000 per check to deposit these checks and withdraw funds.
In addition, between June 14, 2010 and November 13, 2012, Dadson conspired to defraud The Home Depot, Inc. On multiple occasions, a conspirator placed an order by phone with a Home Depot store for flooring in amounts ranging from $2,500 to $8,000, using a stolen credit card number. Within a few days, a conspirator called to cancel the order and supplied the debit card number of a conspirator, including Dadson, requesting that the refund for the order be placed on the conspirator’s debit card. Dadson received 38 credits to her bank accounts totaling approximately $141,159.07, which she then withdrew and provided to a conspirator. Dadson was paid $600-$800 per transaction.
On April 29, 2013, law enforcement executed a search warrant at Dadson’s home and upon entry, saw Dadson attempting to flush several stolen credit cards down a toilet. Dadson admits that she used a victim’s name to make fraudulent transactions on approximately 10 credit cards and numerous gift cards in the victim’s name, purchasing electronics and other expensive items.
The total loss caused by Dadson’s conduct is between $200,000 and $400,000, involving between 10 and 50 victims.
Dadson faces a maximum sentence of 30 years in prison and a $1 million fine for the conspiracy and bank fraud, and a mandatory minimum of two years in prison for aggravated identity theft to be imposed consecutive to any other sentence. Dadson has agreed to pay forfeiture and restitution of at least $251,745.52. U.S. District Judge Paul W. Grimm scheduled her sentencing for December 16, 2013, at 1:00 p.m.
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. Postal Inspection Service, U.S. Department of Treasury – Office of Inspector General and U.S. Secret Service for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Bryan Foreman and Christen A. Sproule, who are prosecuting the case.
Another Telemarketer Sent to Prison for Timeshare Resale FraudRead the Press Release
Hank Quimby, 35, of Rockford, IL, was sentenced to 15 months in federal prison for knowingly participating in a fraudulent telemarketing scam that victimized timeshare owners nationwide, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. Quimby previously worked as a telemarketer for Universal Marketing Solutions and Creative Vacation Solutions – scam companies that operated out of Palm Beach County, Florida, from October 2007 to January 2010. All told, the companies defrauded 22,000 consumers to the tune of $30 million dollars. Victims were found in all 50 States, the District of Columbia and Puerto Rico, all 10 Canadian provinces and the Northwest Territory of Canada. There were at least 54 victims in the Southern District of Illinois, representing 28 of the district’s 38 counties.
In May, Quimby pled guilty to a one-count felony Information charging conspiracy to commit mail fraud and wire fraud in connection with the conduct of telemarketing. As part of his plea, Quimby admitted that he and other telemarketers lied to consumers over the phone, falsely representing that their company had actual buyers for the consumers’ timeshare properties. In exchange for this false hope, Quimby and others solicited advanced fees of up to several thousand dollars from each victim in purported closing costs – fees they promised would be refunded to the timeshare owner once the closing on the property occurred. Many timeshare owners were told that their closings would take place within 60 to 90 days. Quimby and his co-conspirators, however, simply pocketed the fees. No closings ever took place, and despite collecting fees from 22,000 victims, not a single timeshare unit was ever sold.
Approximately 30 other people have been charged in connection with this scam. The former chief executive of Creative Vacation Solutions, Jennifer Kirk, pled guilty on June 30, 2011. She was sentenced on January 9, 2012, to over 16 years in prison and five years’ supervised release. Over 20 others have also been sentenced, receiving prison terms that range from 8 months to 14 years.
The prosecutions follow an investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service, working in concert with the Florida Attorney General’s Office, the Florida Department of Agriculture and Consumer Services, and the Boynton Beach Florida Police Department. The case against Quimby was prosecuted by Assistant United States Attorneys Nathan D. Stump and Bruce E. Reppert.
As part of his sentence, Quimby was ordered to pay a $300 fine and a $100 special assessment. He will also spend three years on supervised release after his prison term.
American Citizen Arrested and Charged with Bribery, Visa Fraud and Conspiracy-Scheme Allegedly Yielded Millions of Dollars in Bribes-Read the Press Release
WASHINGTON - Binh Vo, 39, an American citizen living in Vietnam, has been arrested and charged with bribery, visa fraud and conspiracy to commit those offenses as well as to defraud the United States, U.S. Attorney Ronald C. Machen Jr. and U.S. Department of State Diplomatic Security Service (DSS) Director Gregory B. Starr announced today.
Vo appeared this afternoon before the Honorable Magistrate Judge John M. Facciola in the U.S. District Court for the District of Columbia, where a criminal indictment was pending against him. He was arrested on Sept. 24, 2013, at Washington Dulles International Airport. Magistrate Judge Facciola ordered that he remain in custody pending further court proceedings.
According to the indictment, Vo conspired with co-defendant Michael Sestak and others to obtain visas to the United States for Vietnamese citizens. Sestak, 42, was the Non-Immigrant Visa Chief in the Consular Section of the U.S. Consulate in Ho Chi Minh City, Vietnam from August 2010 to September 2012.
According to the indictment, Vo and Sestak conspired with other U.S. citizens and Vietnamese citizens who worked to recruit customers – or to recruit other recruiters - to the visa scheme. Co-conspirators reached out to people in Vietnam and the United States and advertised the scheme by creating a website and by spreading the word through emails and telephone calls.
According to the indictment, co-conspirators assisted visa applicants with their applications and prepared them for their consular interviews. Upon submitting an application, the applicants would receive an appointment at the Consulate, be interviewed by Sestak, and approved for a visa. Applicants or their families paid Vo between $20,000 and $70,000 per visa.
Applicants paid for their visas in Vietnam, or by routing money to co-conspirators in the United States. According to affidavits filed in this case, Vo received millions of dollars for arranging for Sestak to approve the visas. He ultimately moved some of the money out of Vietnam by using money launderers through off-shore banks. Co-conspirators also had money laundered through off-shore banks to bank accounts in the United States.
To date, the investigation has seized over $2 million from conspirators’ accounts in the United States.
Three others have been charged in the scheme.They are Hong Vo, 27, an American citizen, Truc Tranh Huynh, 29, a Vietnamese citizen, and Anhdao Dao Nguyen, 30, a Vietnamese citizen, all of whom are charged with conspiring with Sestak and Binh Vo. Hong Vo is Binh Vo’s sister. She allegedly assisted with the recruitment of visa applicants and communicated with others about the payment for the fraudulent visas.
According to charging documents, fraudulent visas granted by Sestak were connected to an Internet Protocol (“IP”) address controlled by Hong Vo. Huynh allegedly participated in the visa scheme by obtaining documents necessary for the visa applications, collecting money and providing model questions and answers for visa applicants. Sestak also allegedly approved a visa for Huynh to the United States, the application for which was submitted by the IP address controlled by Hong Vo. Anhdao Thuy Nguyen is Binh Vo’s wife. She allegedly assisted with recruiting applicants and laundering funds during the course of the conspiracy.
Sestak and Hong Vo were arrested in May 2013 and Huynh was arrested the following month. All remain held without bond pending further proceedings. Nguyen remains at large, and a warrant has been issued for her arrest.
An indictment is merely an allegation that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
The case is being investigated by the U.S. Department of State Diplomatic Security Service and Assistant U.S. Attorneys Brenda J. Johnson, Christopher Kavanaugh, and Mona N. Sahaf of the National Security Section and Catherine K. Connelly of the Asset Forfeiture and Money Laundering Section, of the U.S. Attorney’s Office for the District of Columbia.
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Albuquerque Man Pleads Guilty to Federal Child Enticement ChargeRead the Press Release
ALBUQUERQUE – Raymond Berger, 32, of Albuquerque, N.M., pleaded guilty this morning to an indictment charging him with coercion and enticement of a minor to engage in sexual activity under a plea agreement with the U.S. Attorney’s Office. Under the terms of the plea agreement, Berger will be sentenced to ten years in federal prison followed by a term of supervised release to be determined by the court. Berger will be required to register as a sex offender after he completes his prison sentence.
Berger’s guilty plea was announced by Acting U.S. Attorney Steven C. Yarbrough, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Dennis A. Ulrich, II, of Homeland Security Investigations (HSI) in El Paso, Texas, Chief Allen Banks of the Albuquerque Police Department (APD), and Bernalillo County Sheriff Dan Houston.
Berger was arrested on May 26, 2013 by HSI agents on an indictment charging him with enticing a minor to engage in sexual activity. The indictment alleged that between May 2, 2013 and May 6, 2013, Berger used the Internet and a cellular telephone to coerce and entice an individual whom he believed to be a minor to engage in sexual activity. Berger was arrested on state charges of solicitation of a child with an electronic communications devise on May 6, 2013; the state charges were dismissed after Berger was federally charged.
During today’s proceedings, Berger pleaded guilty to the indictment. In his plea agreement, Berger admitted that between May 2, 2013 and May 6, 2013, he engaged in a text messaging relationship with a person whom he believed to be a 12-year-old girl and that he made multiple solicitations for a sexual relationship with the “girl.” Berger further admitted that he made arrangements to meet with the “girl” in a parking lot on May 6, 2013 and was arrested by APD officers when he arrived at the parking lot.
Court filings reflect that Berger initiated the text messaging with the “girl” on May 2, 2013, when he responded to an Internet ad that included a photograph of a minor. The ad was placed by an APD officer who represented to Berger that he was a 12-year-old girl.
Berger has been in federal custody since his arrest on May 26, 2013, and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of HSI, APD and the Bernalillo County Sheriff’s Office, with assistance from the 2nd Judicial District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Charlyn E. Rees as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Tuesday 24 September 2013
White River Man Sentenced for Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a White River, South Dakota, man convicted of Assaulting a Federal Officer was sentenced on September 23, 2013, by U.S. District Judge Roberto A. Lange.
Anthony Black Wolf, age 26, was sentenced to 12 months plus 1 day of imprisonment, 18 months of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Black Wolf was indicted by a federal grand jury in May of 2013. He pled guilty to Count I of the Indictment on July 3, 2013.
The conviction stems from an incident that took place on March 3, 2013, when Black Wolf fled from law enforcement officers who had to run down the Defendant before apprehending him. Black Wolf then resisted arrest by striking an officer in the face and tried to remove the officer’s duty weapon from its holster as he was being handcuffed. He continued to try and pull the officer’s pistol out of its holster until a neighbor came out of his house and assisted by pulling on the Defendant’ s thumb until the Defendant released the weapon.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
Black Wolf was immediately turned over to the custody of the U.S. Marshals Service.