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Thursday 19 September 2013
Nevada Tribes Receive $1.8 Million in Grants from U.S. Department of JusticeRead the Press Release
LAS VEGAS, Nev. – Two northern Nevada Indian tribes will receive over $1.8 million in U.S. Department of Justice grants to assist them enhance law enforcement practices and sustain crime prevention and intervention efforts, announced Nevada’s U.S. Attorney, Daniel G. Bogden. The Nevada tribes were included in an announcement made yesterday by the U.S. Department of Justice as part of its ongoing initiative to increase engagement, coordination and action on public safety in tribal communities. The announcement stated that 192 grants totaling over $90 million were made to more than 110 American Indian and Alaska Native nations.
“I am very pleased that Nevada tribes have received this much needed financial assistance from the Department of Justice,” said U.S. Attorney Bogden. “Over the last several years, representatives from my office, federal law enforcement, and I have visited and consulted with all of our Nevada tribes concerning the law enforcement and safety issues they face on their tribal lands. It has brought a better understanding of how we can better serve and support our tribal partners.”
Nevada tribes receiving awards are the Pyramid Lake Paiute Tribe and the Washoe Tribe of Nevada and California. Each of these tribes received a grant for public safety and community policing and for the violence against women tribal governments program. More information on the awards is available at www.justice.gov/tribal/docs/ctas-award-list-2013.pdf.
The awards are made through the department’s Coordinated Tribal Assistance Solicitation (CTAS), a single application for tribal-specific grant programs. The department developed CTAS through its Office of Community Oriented Policing, Office of Justice Programs and Office on Violence against Women, and administered the first round of consolidated grants in September 2010. Over the past four years, it has awarded 989 grants totaling more than $437 million. Information about the consolidated solicitation is available at www.justice.gov/tribal/. A fact sheet on CTAS is available at www.justice.gov/tribal/ctas2013/ctas-factsheet.pdf.Mexico Native Charged with Loan and Passport FraudRead the Press Release
Maria DeJesus-Guzman, 36, of Philadelphia, was charged today in a four count indictment with loan application fraud, passport fraud, falsely representing to be a United States citizen, and aggravated identity theft announced United States Attorney Zane David Memeger. According to the indictment, DeJesus-Guzman, an alien and a native and citizen of Mexico, falsely represented that her name was “W.A.A.,” her date of birth was in 1970, and her social security number ended with 5120, in order to obtain a home equity loan and line of credit from Bank of America, N.A. DeJesus-Guzman made the same false representations in a passport application, in addition to the false representation that she was born in Puerto Rico and, therefore, a United States citizen, in order to obtain a United States passport.
If convicted of the offenses, DeJesus-Guzman faces a total maximum sentence of 43 years imprisonment, a mandatory two-year consecutive sentence, five years supervised release, $1,750,000 fine, and $400 special assessment.
This case was investigated by the United States State Department Diplomatic Security Service and the U.S. Department of Homeland Security, Immigration and Customs Enforcement. The case is being prosecuted by Assistant United States Attorney Anita Eve.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Mexico Native Charged with Loan and Passport FraudRead the Press Release
Maria DeJesus-Guzman, 36, of Philadelphia, was charged today in a four count indictment with loan application fraud, passport fraud, falsely representing to be a United States citizen, and aggravated identity theft announced United States Attorney Zane David Memeger. According to the indictment, DeJesus-Guzman, an alien and a native and citizen of Mexico, falsely represented that her name was “W.A.A.,” her date of birth was in 1970, and her social security number ended with 5120, in order to obtain a home equity loan and line of credit from Bank of America, N.A. DeJesus-Guzman made the same false representations in a passport application, in addition to the false representation that she was born in Puerto Rico and, therefore, a United States citizen, in order to obtain a United States passport.
If convicted of the offenses, DeJesus-Guzman faces a total maximum sentence of 43 years imprisonment, a mandatory two-year consecutive sentence, five years supervised release, $1,750,000 fine, and $400 special assessment.
This case was investigated by the United States State Department Diplomatic Security Service and the U.S. Department of Homeland Security, Immigration and Customs Enforcement. The case is being prosecuted by Assistant United States Attorney Anita Eve.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Massachusetts Man Indicted in Providence for Tax FraudRead the Press Release
The Justice Department and the Internal Revenue Service (IRS) announced that a federal grand jury in Providence, R.I., returned a five-count indictment yesterday charging John Fall of Milton, Mass., with one count of corruptly endeavoring to obstruct and impede the IRS, one count of tax evasion and three counts of aiding and assisting in the preparation and filing of false corporate and individual tax returns. The indictment was unsealed today following Fall’s arrest.
According to the indictment, Fall was a real estate consultant who bought, sold and brokered real estate. Fall also participated in handling the financial affairs of his wife and her businesses, including her dental practice, Comfort Dental Inc., as well as Broad Street Investments. The indictment alleges that between 1999 and 2010, Fall used numerous nominees and business names to conceal his business and financial transactions. Fall also used multiple bank accounts, including commingled or “warehouse” bank accounts, in at least four states throughout the country, all in order to conceal his financial transactions as well as certain financial transactions of Comfort Dental and Broad Street Investments. To further disguise business and financial transactions, court documents allege that Fall used fake names and aliases to conceal his ownership and control over his nominee entities.
The indictment alleges that Fall filed false returns for 1998 and 1999, and failed to file any return for the years 2000 through 2010. The IRS audited Fall for the 1998 through 2000, assessing him taxes collectively totaling approximately $72,000. According to the indictment, Fall committed tax evasion by attempting to thwart IRS collection of these taxes by using multiple nominees, business names and fake names and aliases to disguise financial transactions and title assets, by using commingled bank accounts, by making extensive use of cash and by causing to be filed false and fraudulent documents in federal court disclaiming ownership and control over funds sought by the IRS to pay the taxes he owed.
The indictment further alleges that Fall caused tax returns that were filed by Comfort Dental for the years 2005 through 2007, as well as his wife’s individual tax returns for 2005 and 2006 to be false. Fall caused his wife’s businesses to make payments to his various entities which were falsely recorded as deductible business expenses. According to court documents, Fall also caused his wife’s individual tax return to reflect a capital loss for tax year 2006 when, according to the indictment, she received a capital gain on the sale of property.
When Comfort Dental and Fall’s wife were audited between 2008 and 2009, the indictment alleges that Fall attempted to obstruct the audit by encouraging his wife’s accountant not to provide the IRS with information requested through a summons, and by providing false and fraudulent information and documentation to the IRS concerning the nature of the payments by Comfort Dental and Broad Street Investments to his various entities. Fall also attempted to obstruct his wife’s compliance with an IRS summons.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. The tax evasion charge carries a maximum sentence of five years imprisonment and a $250,000 fine. The IRS obstruction charge and the aiding and abetting of false returns charges each carry a maximum sentence of three years imprisonment and a $250,000 fine.
This case was investigated by special agents with the IRS – Criminal Investigation. The case is being prosecuted by Assistant Chief John Kane and Trial Attorney Christopher O’Donnell with the Justice Department’s Tax Division.
Man Sentenced for Multi-Million Dollar Tax Fraud Conspiracy, Aggravated Identity Theft and Attempting to Obstruct A Federal InvestigationRead the Press Release
Christopher Gilmer, 44, formerly of Belleville, Illinois, was sentenced in federal court today for Conspiracy to Defraud the Internal Revenue Service By Submitting False Federal Tax Returns to Make False Claims for Tax Refunds, Aggravated Identity Theft in Using a Social Security Number of Another during and in Relation to Conspiracy to Commit Mail Fraud and Wire Fraud in Submitting False Tax Returns, and attempted Obstruction of Grand Jury Investigation into the Conspiracy to Defraud the Internal Revenue Service by Submitting False Federal Tax Returns to Make False Claims for Tax Refunds, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced. Gilmer was sentenced to a total of 104 months in prison, three years of supervised release to follow, an order of restitution in the amount of $56,101,556, and a special assessment fee of $300.
The prosecution is the result of information from an ongoing federal investigation of a conspiracy to obtain the payment of false and fraudulent federal income tax refunds utilizing stolen identities. The IRS utilizes databases to research possible tax refund fraud schemes. The IRS linked tax returns based on wage amounts, federal tax withholding amounts, bank accounts, employers, email addresses and other factors which revealed a tax refund scheme. The scheme involved the preparation of fraudulent federal tax returns for the years 2010, 2011, and 2012, which were filed during the 2011, 2012, and 2013 tax filing seasons.
“This nationwide tax refund fraud scheme consists of thousands of falsified tax returns, which claimed millions in fraudulent tax refunds. The total amount of the fraudulent federal tax refunds sought exceeds $150 million dollars.” noted United States Attorney Wigginton. “These fraudsters are stealing from every lawful citizen in the United States. Stiff prison terms will help to end these thefts.”
Some of the refunds were stopped by the I.R.S. All of the tax returns were electronically filed. The first tax return filed in this tax refund fraud scheme was filed on or about March 23, 2011 and the last tax return filed was on or about March 16, 2013. The fraudulent refunds were credited to prepaid debit cards created using stolen identities. People in the United States, including Christopher Gilmer, received the prepaid debit cards and withdrew a portion of the funds utilizing Western Union to electronically wire the funds to other co-conspirators in Nigeria. Following the execution of a federal search warrant at a hotel room in Belleville, Illinois, where Christopher Gilmer was staying, Christopher Gilmer notified a co-conspirator in Nigeria and advised him of the federal investigation.
The prosecution is the result of an investigation conducted by the Internal Revenue Service/Criminal Investigations and the U.S. Postal Inspection Service with the assistance of the Belleville Police Department. The prosecution was handled by Assistant U.S. Attorney Norman R. Smith.
To report criminal tax fraud, call I.R.S. Criminal Investigations at (618) 622-2160, or send the information to the Internal Revenue Service, Fresno, CA 93888.
MS-13 Members Plead Guilty to Racketeering, Murder Conspiracy, Assault and Witness Tampering ChargesRead the Press Release
In federal court in Brooklyn, New York, Abraham Iraheta, a member of the Flushing, Queens, chapter of the violent international gang La Mara Salvatrucha, also known as “MS-13,” pleaded guilty on Monday to racketeering and murder conspiracy charges. Jose Barrera, a member of the same MS-13 chapter, pleaded guilty earlier today to assault with a dangerous weapon. When sentenced, Iraheta and Barrera each face up to 20 years’ imprisonment. On Tuesday, Jose Celestino Guillen-Rivas, a member of a Fairfax County, Virginia, chapter of MS-13, pleaded guilty to conspiracy to tampering with a witness, and faces a sentence of up to life imprisonment. The defendants entered their pleas before United States District Judge William F. Kuntz at the federal courthouse in Brooklyn.
The guilty pleas 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 (ICE), Homeland Security Investigations (HSI), New York Field Office; and Edmund Hartnett, Commissioner, City of Yonkers Police Department.
“This Office will match MS-13’s dedication to violence with our own unwavering commitment to justice. We have now convicted over 200 MS-13 soldiers and leaders in the Eastern District of New York, and we will work tirelessly until this violent gang is eradicated from the district and elsewhere,” stated United States Attorney Lynch. “This week’s convictions are another important step toward ending the gang’s influence in our communities and bringing a measure of justice to the victims and their families.” Ms. Lynch expressed her grateful appreciation to HSI and the City of Yonkers Police Department for their assistance in the investigation and prosecutions.
According to the indictment and other court filings, Iraheta, known in the gang as “Lobo,” was a member of a chapter of the gang that committed a series of violent crimes, including murder, murder conspiracy and attempted murder, in Flushing, Queens, and elsewhere. Among other crimes, Iraheta was charged with attacking the father of a rival gang member with a machete. As part of his plea, Iraheta admitted to being a member of MS-13, conspiring to kill members of a rival gang, and plotting to kill a disfavored associate of the gang. As part of his plea, Barrera, known in the gang as “Travieso,” admitted to the violent stabbing of a young associate of rival gang.
Guillen-Rivas, known in the gang as “Pirata,” pled guilty to conspiring with members of the Flushing chapter to tamper with a witness for the government in the Virginia homicide trial of an MS-13 member by using violence in order to prevent the witness from testifying again.
The defendants were charged along with seven other MS-13 members in an indictment unsealed on January 5, 2012, and are the last to plead guilty. Their convictions are the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent international street gang comprised primarily of immigrants from El Salvador, Honduras and Guatemala. With numerous chapters, or “cliques,” the MS-13 is the largest street gang in the Eastern District of New York, with a strong presence in immigrant communities in Queens and Long Island. Since 2002, more than 200 MS-13 members, including more than two dozen clique leaders, have been convicted on federal felony charges in the Eastern District of New York. More than 100 of those MS-13 members have been convicted on federal racketeering charges. Since 2010 alone, this Office has convicted more than 30 members of the MS-13 on charges relating to their participation in one or more murders.
The government’s case is being prosecuted by Assistant United States Attorneys Darren A. LaVerne, Tali Farhadian, and Kevin Trowel.
The Defendants
ABRAHAM IRAHETA, also known as “Lobo”
Age: 22
Queens, New YorkJOSE BARRERA, also known as “Travieso”
Age: 24
Queens, New YorkJOSE CELESTINO GUILLEN-RIVAS, also known as “Pirata”
Age: 33
Fairfax, VirginiaLeader of Oxycodone Distribution Ring Sentenced to 7+ Years in Federal PrisonRead the Press Release
PITTSBURGH - A resident of Brentwood, Pa., has been sentenced in federal court to 88 months imprisonment and five years supervised release on his conviction of conspiracy to distribute controlled substances and to acquire controlled substances by fraud, forgery, deception and subterfuge, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Jeffrey William Mackewich, II, 27. Mackewich has been incarcerated since his bond was revoked by Judge Hornak in June 2013.
According to information presented to the court, Mackewich conspired to obtain Oxycodone by fraud and forgery and to then distribute the Oxycodone. Mackewich agreed that he distributed between 5,000 and 15,000 oxycodone 30 mg. tablets during the time frame of the conspiracy. He also agreed that he was the leader of the Oxycodone ring. Mackewich used a computer with software including medical clip art to counterfeit prescriptions using DEA registration numbers of unwitting physicians.
Assistant United States Attorney Stephen R. Kaufman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Drug Enforcement Administration for the investigation leading to the successful prosecution of Mackewich.
Last V-not Gang Member Pleads Guilty to Rico Conspiracy and Admits to Murder of High School Basketball Star Kihary BlueRead the Press Release
RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York, announces that KAHARI SMITH, age 28, of Syracuse, pled guilty this morning in U.S. District Court in Syracuse to an indictment which charged him and ten others with conspiring to exploit their membership in the V-NOT Gang to engage in a pattern of racketeering activity which included acts of murder, attempted murder, drug trafficking, and robbery. SMITH is the last defendant to plead guilty in this eleven defendant case.
At sentencing, SMITH faces up to life imprisonment, a $250,000 fine, and five years of supervised release following any period of incarceration.
The Indictment to which SMITH pled alleges that from at least 2003 through May 2012 members of the V-Not Gang: (1) maintained a specific geographic territory within the City of Syracuse in which only gang members can sell crack cocaine and marijuana; (2) protected that exclusive crack distribution territory with violence; (3) obtained drugs from various suppliers; (4) projected a very violent attitude and responded to violence with violence in order to preserve their stature in the gang community; (5) used graffiti, hand signs, and tributes on their clothing to slain gang members to signify their gang membership; (6) used criteria such as a willingness to use violence, ability to sell drugs, and familial connections to determine membership; and (7) routinely carried and used firearms in connection with their gang activity.
There are multiple acts of violence and drug distribution set forth in the Indictment, including 1 murder, 10 other shootings, 8 other acts of gun possession, and 18 acts of crack distribution and/or possession with intent to distribute crack.
As part of his plea, SMITH admitted to multiple acts that he committed in furtherance of the gang’s activities, the most prominent of which was his intentional killing of Henninger High School basketball star Kihary Blue on November 26, 2010. In that incident, Smith shot and killed Kihary Blue on Interstate 81 in downtown Syracuse as part of an ongoing feud between the V-Not and Bricktown gangs. Co-defendant Habakkuk Nickens admitted in court earlier this week that he drove a vehicle into position on the highway so that SMITH could fire the deadly shots into the vehicle in which Blue was a passenger in the middle of the back seat.
Other acts SMITH admitted to included the following: (1) possessing crack cocaine and a starter pistol in the presence of co-defendants Titus Nickens, Dwayne Hester and Donald Johnson, Jr., on October 24, 2007; (2) possessing crack cocaine, marijuana and U.S. currency, along with co-defendants Jermeere McKinnon, Titus Nickens, Jeffrey Powell and others on November 7, 2007; (3) possessing crack cocaine and U.S. currency in the presence of co-defendant Donald Johnson, Jr., on March 23, 2009; (4) present with co-defendants Riadda Travet and Jeffrey Powell when Powell shot a rival gang member in the head on November 1, 2009; (5) participation, along with co-defendants Christopher Mike, Jeffrey Powell, Habakkuk Nickens, Titus Nickens, Kenneth Jackson, Dwayne Hester, and others, in a gang fight against Bricktown Gang members on October 23, 2010; (6) participation in a drive-by shooting of a rival gang member’s house, along with co-defendants Christopher Mike, Jeffrey Powell and Kenneth Jackson; and (7) shooting of Bricktown Gang member Jaycee Floyd on March 19, 2011.
U.S. Attorney Richard Hartunian stated: “This plea signifies the end of a very violent chapter in gang activity that plagued the Valley section of Syracuse for the better part of a decade. We are pleased to have brought to justice all these V-Not Gang defendants and to have solved a particularly brutal, tragic and senseless murder of an innocent young athlete named Kihary Blue who, by all accounts, was a fine, upstanding member of our community. Let this serve as yet another example of our relentless pursuit of gang activity in the City of Syracuse.”
This prosecution resulted from a long-term investigation conducted by the Syracuse Gang Violence Task Force, which is comprised of agents and detectives from the following agencies: United States Department of Justice, Bureau of Alcohol, Tobacco, and Firearms (Syracuse Office), the Syracuse Police Department, the Onondaga County Sheriff's Department, the New York State Police, and the United States Marshals Service. The Onondaga County District Attorney’s Office and the Drug Enforcement Administration - Syracuse office, also assisted in the investigation.
Further questions or inquiries may be directed to Assistant U.S. Attorney John M. Katko, who is prosecuting the case, at (315) 448-0916.
Kissimmee Man Sentenced to 5 Years in Federal Prison for Receipt of Child PornographyRead the Press Release
Orlando, Florida - Senior U.S. District Judge John Antoon, II yesterday sentenced Alexander Lee (31, Kissimmee) to 5 years in federal prison for receipt of child pornography. Lee was also ordered to register as a sex offender and to serve a 10-year term of supervision, upon his release from prison. Lee pleaded guilty on June 26, 2012.
According to the evidence presented at the sentencing hearing, Lee used a peer-to-peer program to download child pornography. On October 9, 2012, special agents with Homeland Security Investigations, along with agents from the Florida Department of Law Enforcement, executed a federal search warrant at Lee’s apartment. A forensic review of Lee’s computer revealed that he downloaded 1,047 images of child pornography on February 19, 2012. Further forensic review revealed that Lee downloaded more than 100,000 images and videos of child pornography.
“Receiving child pornography is not a victimless crime. It haunts the children depicted in it, who live daily with the knowledge that countless strangers use an image of their worst experiences for their own gratification,” said Susan McCormick, special agent in charge of Homeland Security Investigations Tampa, which oversees the agency’s Orlando office that conducted this investigation. “It is our duty as special agents to find and arrest these child predators and ensure they are prosecuted to the fullest extent of the law.” This case was investigated by U.S. Immigration and Custom’s Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Shawn P. Napier.
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 (CEOS), 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.projectsafechildhood.gov.
Kimber Sentenced to 14 Years in Prison for Chemical Weapon Attack at Albany Medical CenterRead the Press Release
SYRACUSE, NEW YORK - Richard S. Hartunian, United States Attorney for the Northern District of New York, announced today that Martin S. Kimber, 60, of Ruby, New York, was sentenced today by Senior U.S. District Judge Lawrence E. Kahn to 14 years in prison, 5 years supervised release thereafter, forfeiture of his home and car which were used to store the mercury, and $200,450.48 in restitution to the Albany Medical Center following his guilty plea to using a toxic chemical, mercury, as a weapon (counts one and two), and tampering with consumer products (count three) at the Albany Medical Center, in Albany, NY. Kimber admitted that on four occasions he spread mercury, a potentially fatal neurotoxin, throughout various areas of the Albany Medical Center in ways which could lead to inhalation or absorption of the mercury, to retaliate for what he thought were unfair hospital bills.
When Kimber entered his guilty plea on November 29, 2012 he admitted that:
On December 10, 2010 and December 23, 2010, he received medical treatment at the Albany Medical Center, Albany, New York. On various dates thereafter, including on January 24, 2011, he wrote to express concern about having to pay for his medical care. On February 22, 2011, the Albany Medical Center Associate Medical Director wrote back and explained why the bills were appropriate, and discussed the outcome associated with Kimber having provided inaccurate information about his injury, and his decision not to complete the care prescribed by his treating physician.
On March 28, 2011, April11, 2011, June 23, 2011, and March 2, 2012, patients, visitors, and hospital personnel discovered liquid mercury deposited in sundry locations throughout the Albany Medical Center. On March 28, 2011, mercury was found in the level D basement, the hallway outside the Post-Operative Care Unit, the Triage window in the Emergency Room, and in the tracks to the door of the center elevator for Building D. Hospital; emergency response units identified and collected several pounds of mercury. On April 11, 2011, mercury was found in the men's bathroom on the AI level and in the main hallway in Building E, extending from the M doors to the elevator lobby. Approximately one to two pounds of mercury was collected by emergency response personnel. On June 23, 2011, mercury was found on the pedestrian ramp leading from the main lobby up to the pedestrian parking garage bridge and in the E-1 corridor exiting the Choice Cafe and the center elevator of Building A elevator triplex. Approximately two pounds of mercury was collected. On March 2, 2012, mercury was found in the cafeteria at Albany Medical Center, in the salad bar, in an apple bowl, in a banana basket, in a toaster, on a table by the coffee station, in the cooler for the packaged salad dressing, in the ice cream freezer, and in a container of chicken tenders that were being warmed under heating lamps and were available for purchase and consumption by cafeteria customers.
Kimber admitted he was responsible for each of these mercury disposals, and for tampering with the described products, including the mercury, each item of food, and the restaurant equipment, to include salad, fruit, toaster, table, cooler, freezer, and heating lamps. The food products and food containers into and near which the defendant deposited mercury affected interstate commerce. Kimber further admitted his purpose in disposing of the mercury throughout the Albany Medical Center on multiple occasions was to cause panic at the hospital leading to the closing down of the facility by causing a loss of business when people became fearful of gaining treatment and eating there.
On March 29, 2012, a search by law enforcement officers revealed that Kimber possessed two canisters of mercury, one stored in his car and the other stored in his house. Both canisters of mercury were seized by the officers. An FBI search of his computer showed that he engaged in searches at sites where more mercury could be purchased.
Mercury is a well-documented hazardous substance. Among other things, mercury is a neurotoxin that can kill human nerve cells. Mercury is readily absorbed through unbroken skin. Inhalation and other forms of absorption can lead to death, brain and lung damage, impairment of speech, constriction of the visual field, hearing loss and somatosensory change, and other serious bodily injuries. Having been a licensed pharmacist for 36 years, Kimber well understood these dangers, and that the heating of mercury, including the placing of mercury on or in toasters, and on or around heated food, greatly increased the likelihood that mercury would vaporize into the air and be inhaled by individuals consuming such food or using or near such heating devices. As part of his sentence, Kimber was ordered to abandon his computer in which child pornography was found and further ordered to:
Pay restitution to the Albany Medical Center in the amount of $200,451.48;
Pay restitution in full to the United States for any expenses incurred incident to the seizure, storage, handling, transportation, and destruction of any property seized in connection with an investigation of his use of mercury as a chemical weapon;
Forfeit his residence at 8 Lena Lane, Ruby, New York; and
Forfeit his 2007 Pontiac Solstice.
Kimber was arrested on April 25, 2012, by Special Agents of the United States Environmental Protection Agency. On March 2, 2012, following a hearing, Kimber was detained as a danger to the community. He was ordered to remain in jail following imposition of sentence.
United States Attorney Hartunian said, “Congratulations and thank you to the Environmental Protection Agency, the Federal Bureau of Investigation, and the Food & Drug Administration-Office of Criminal Investigations, whose cooperative investigation quickly brought the defendant to justice for this very dangerous conduct; to the patients, visitors, and hospital personnel who discovered the mercury; and to the emergency response units who collected it. Their alertness and professionalism prevented the dire consequences that could have resulted from the defendant’s use of several pounds of mercury as a chemical weapon and contaminating food and food service items at a hospital.”
“There are honest accidents and there are clear cases of criminal conduct,” said Vernesa Jones-Allen, Special Agent in Charge of EPA’s Criminal Investigation Division in New York. “The defendant’s action threatened public health and safety and sent an innocent victim to the hospital. Today's sentence demonstrates that this kind of behavior will not be tolerated. EPA is encouraged by the level of partnership shown by the local, state and federal law enforcement agencies involved in this joint investigation.”
“The defendant demonstrated a disregard for the potentially life-threatening consequence of his actions and for the potential harm that he could have inflicted” said Special Agent in Charge Mark Dragonetti of the FDA’s Office of Criminal Investigations, New York Field Office. “We will continue to work with our law enforcement counterparts to aggressively pursue those who place the public health at risk and harm others by tampering with food, drugs or other FDA- regulated products.”
This case was investigated by Special Agents of the Environmental Protection Agency, the Federal Bureau of Investigation, and the Food & Drug Administration-Office of Criminal Investigations. Assistance has been provided by the Towns of Albany and Ulster Police Departments. The case was prosecuted by Assistant United States Attorney Craig Benedict, to whom questions may be directed at 315-448-0672 or cell phone 315-391-1110.
Justice Department Awards Cleveland $1 Million Grant for Crime Prevention and EnforcementRead the Press Release
The United States Department of Justice awarded the City of Cleveland a $1 million grant aimed at improving the Mount Pleasant neighborhood by expanding crime prevention programs, continuing targeted enforcement efforts and increasing programs for people returning to the neighborhood from prison, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The city was informed this week that it is a recipient of a $1 million Byrne Criminal Justice Innovation Program. The money will be disbursed over three years. Cleveland is one of only five cities to receive a full $1 million grant.
“This grant recognizes that improving public safety is about the people living in our neighborhoods and is a result of our longstanding, comprehensive approach and strong partnerships. It will support Cleveland Police and our law enforcement partners as they target violent crime, but it will also support a wrap-around approach for residents so that they have opportunities to choose a better life,” said Cleveland Mayor Frank G. Jackson. “I want to thank the Department of Justice for the grant and their continued partnership.”
“This money will allow us to expand a decade-long partnership between law enforcement, community leaders and social-service providers,” Dettelbach said. “These programs allow us to work together to prevent crime and to help those returning home from prison, instead of simply trying to arrest our way out of the crime problem.”
“Community engagement is a crucial part of the solution,” said Michael L. Walker, executive director of the Partnership for a Safer Cleveland. “Making arrests in and of itself will not prevent violent crime. We’re trying to work with community organizations to develop solutions the community can take ownership of.”
The grant will target the Mount Pleasant neighborhood on Cleveland’s southeast side, running along Kinsman Avenue between Lee Road and East 93rd Street.
Among the programs earmarked for funding through the grant:
* The continuation of the VGRIP gun suppression efforts, in which Cleveland police and federal agents work together to crack down on gun violence, often leading to federal prosecution of felons illegally in possession of firearms.
* The expansion of Stand Together Against Neighborhood Crime Everyday (STANCE), which will work with Mount Pleasant residents and community stakeholders to design and implement comprehensive prevention and reentry efforts, such as Operation Night Light (police and community leaders make surprise visits to parolees, training for those returning from prison) and Operation Focus (counseling, assessments, call-ins, coaching and service delivery).
* A Fugitive Safe Surrender in 2014, in which law enforcement and clergy work together to establish a safe location for non-violent fugitives wanted for low-level felonies to turn themselves in.
* Creating a comprehensive approach to restoring order to crime hot spots in the neighborhood, including improved street lighting, dispersing loiterers, performing code inspections, cleaning up vacant lots and razing abandoned buildings. This component also includes continuing to train police officers to connect youth who witness violence to mental health services within 48 hours.
* Case Western Reserve University’s Begun Center for Violence Prevention will collect, analyze and evaluate data to ensure that activities are supported by evidence of need and to track results. Data will be gathered by Cleveland police, Cleveland Schools, the Office of Building and Housing, Juvenile Court, adult and juvenile parole and other partner agencies.
The grant is the result of a partnership between more than 30 agencies, including the City of Cleveland, the Cleveland Municipal School District, the Cuyahoga Metropolitan Housing Authority, Partnership for Safer Cleveland, Sisters of Charity Health System, Third Federal Foundation, Mt. Pleasant NOW, St. Luke’s Foundation, Mt. Pleasant Community Zone, Cleveland Police, Cleveland Community Relations Board, the U.S. Attorney’s Office, the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshal, Greater Cleveland RTA, Cuyahoga County Prosecutor’s Office, Cuyahoga County Sheriff’s Office, Cuyahoga County Department of Justice Affairs, Cuyahoga County Juvenile Court, Ohio Department of Rehabilitation and Correction, Ohio Department of Youth Services, National Council of Jewish Women, College Now Greater Cleveland, Adcom Communications, Community Assessment and Treatment Services, Ohio Adult Parole Authority, and many others.
Justice Department Announces GrantsTo Kansas Indian TribesRead the Press Release
TOPEKA, KAN. - The U.S. Department of Justice has awarded public safety grants totaling almost $1 million to two Kansas Indian tribes, U.S. Attorney Barry Grissom said today.
The Prairie Band Potawatomi Nation has been granted $777,096. Another Kansas tribe, the Sac And Fox Nation of Missouri, has been granted $222,799.
“We’re increasing our efforts to support tribal communities and to build and sustain tribal justice systems,” Grissom said.
Grissom is attending a meeting of Attorney General Eric Holder’s Native American Issues Subcommittee in Celilo Village, Ore., where the grants were announced. The Justice Department awarded 192 grants to 110 American Indian tribes, Alaska Native villages, tribal consortia and tribal designated non-profits. The grants will provide more than $90 million to enhance law enforcement practices and sustain crime prevention efforts.
The grant to the Prairie Band Potawatomi from the Justice Department’s Office On Violence Against Women is targeted to help decrease the incidence of violent crime against Indian women and to ensure that perpetrators of violent crimes committed against Indian women are held accountable.
“Violence against native women continues at alarming rates and children in Indian country encounter violence far too often,” Grissom said.
The grant to the Sac And Fox Nation comes from the Alcohol and Substance Abuse Program overseen by the Office of Justice Programs. Tribes were encouraged to apply for funds to enhance tribal justice systems and support alcohol and substance abuse programs.Jury Finds Pittsburgh Man Played Crucial Role in Mortgage Fraud SchemesRead the Press Release
PITTSBURGH - After deliberating six hours, a federal jury of five men and seven women found Jason Moreno guilty of two counts wire fraud conspiracy and five counts of wire fraud, United States Attorney David J. Hickton announced today.
Moreno, 30, was tried before United States District Judge Nora Barry Fischer.
According to Assistant United States Attorney Brendan T. Conway, who prosecuted the case, the evidence presented at trial established that Moreno operated Platinum Appraisal Services, which provided hundreds of fraudulent appraisals in connection with two different complex mortgage fraud schemes. The appraisals were fraudulent in at least the following respects:
- The appraisals represented that they had been prepared by a licensed appraiser named Joel Reck when, in fact, they were prepared by Jason Moreno and others who were not licensed appraisers;
- The appraisals overstated the conditions of the properties and represented that they were in better condition than they actually were;
- The appraisals falsely represented that substantial improvements had been made to the properties;
- The appraisals failed to identify significant problems with the properties that effected the market values of the properties; and
- The appraisals represented that the properties being appraised, which are referred to as the "subject properties", were comparable to certain other properties, which are referred to as the "comparable properties", when, in fact, the comparable properties were in superior conditions and in superior locations than the subject properties.
All of these misrepresentations were designed to overstate the values of the properties serving as collateral for the loans.
One of Moreno's primary customers for the fraudulent appraisers was Robert Arakelian, who was a mortgage broker who operated Pittsburgh Home Loans along with his partner, Michael Ferrazza. Arakelian operated a mortgage fraud scheme in which he falsely represented to the lenders that the borrowers intended to and had made substantial down payments associated with the purchase of the properties. In fact, the borrowers were not making any down payments and were actually getting money back from many of the transactions. Thus, for the scheme to work, the loan amounts had to be sufficient to pay the seller, pay the buyer money back, as well as pay the closing costs and any kickbacks to Arakelian and others associated with the scheme.
Lenders, however, will typically only lend between 80% and 90% of the lower of the sales prices and the value of the home. The "value" is supposed to be determined by a licensed independent professional appraiser. In order to get a sufficient loan amount to make the disbursements associated with the scheme, the sales prices of the properties had to be drastically overstated, and these overstated sales prices had to be supported by similar fraudulently overstated appraisal values. Preparing and causing the preparation of the fraudulent appraisals was Moreno's role in the conspiracy. In the end, while the lenders believed that they were lending between 80-90% of the values of the properties, they were typically lending 150-200% of the values of the properties.
Another major customer for Moreno's fraudulent appraisals was James Platts, who operated East Realty Solutions. Platts' scheme was slightly different from Arakelian's scheme. Platts identified properties for sale in some sort of distressed circumstances, and he would enter into a contract to purchase the properties for a relatively modest amount. Prior to actually closing on the transactions, however, Platts located purchasers for the properties, who were typically in poor financial condition, had insufficient money to make a down payment, and were unsophisticated first-time home buyers.
As presented to the lenders, the buyers were purchasing the properties directly from the sellers, and the buyers were making substantial down payments associated with the purchase of the properties. Neither of those representations, however, was accurate.
Platts was paid through the payoff of Lis Pendens he had placed on the properties, which were often more than half of the true values of the properties. These Lis Pendens were essentially the difference between the true sales prices and the sales prices represented to the lenders.
Like Arakelian's scheme, Platts' scheme required drastically overstated sales prices because the loan amounts needed to pay the seller, Platts, and other kickbacks associated with the scheme. Moreno provided the fraudulent appraisals that mirrored the drastically overstated sales prices, leading the lenders to believe that their loans were collateralized by real estate worth much more than it was actually worth.
In terms of the Wire Fraud Scheme, there are a number of properties where Moreno was more than just an appraiser for the property. For example, there was a property located in Pittsburgh, Pa. Moreno negotiated to purchase the property, but prior to the closing, he arranged to sell the property to another buyer. The transaction was structured, however, to make it appear to the lender that Jason Moreno was not involved at all in the transaction, including failing to disclose a substantial payment to him at the closing. The transaction also involved a fake down payment, an undisclosed disbursement to the buyer of the property, and an egregiously fraudulent appraisal.
There were a number of other fraudulent deals involving Moreno himself, Moreno's fiance, his aunt, and his mother. All of these deals involved overstated sales prices, fake down payments, undisclosed disbursements to the buyers, and egregiously overstated appraisals. Another fraudulent transaction involved the purchase of a property by Daniel Hoey, Arakelian's brother-in-law. The settlement statement and other loan documents reflected the purchase of an $800,000 home in Sewickley, Pa., by Arakelian's wife, Samantha, which was financed by a $650,000 loan in which Samantha Arakelian made a substantial down payment associated with the closing. The reality, however, was that Hoey purchased the property for $441,000 and received $140,000 cash back, and neither he nor Samantha Arakelian made a down payment. In fact, Samantha Arakelian got $40,000 for the transaction. Moreno provided a fraudulently elevated appraisal that supported the fraudulently elevated $800,000 sales price, and another appraisal some months later related to a cash-out refinance associated with that same property.
Judge Fischer scheduled sentencing for Jan. 15, 2014. The law provides for a total sentence of 140 years in prison, a fine of $1,750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the criminal history, if any, of the defendant.
The Western Pennsylvania Mortgage Fraud Task Force conducted the investigation that led to the prosecution of Moreno. The lead investigator on the case was United States Secret Service Special Agent Keith Heckman.
Jury Finds New York Man Guilty of Drug Trafficking and Gun CrimesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on September 19, 2013, a federal jury sitting in Brattleboro returned guilty verdicts against James Collins, 33, of Hudson, New York, on charges of distribution of crack cocaine, possession with intent to distribute crack cocaine, and carrying a firearm during and in relation to a drug trafficking crime. The verdict came on the third day of the trial.
According to court records, Collins distributed crack cocaine in Rutland on four occasions in the summer of 2012. At the end of the summer, he traveled to Ludlow to with crack cocaine he intended to sell. During a traffic stop of his vehicle en route to Ludlow, law enforcement seized the crack cocaine and a loaded semi-automatic handgun from his person.
Collins faces imprisonment for a term of up to 20 years on each of the drug charges. The firearm charge is punishable by a consecutive term of not less than 5 years and not more than life.
United States Attorney Tristram J. Coffin commended the joint investigation by the Vermont Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Collins was represented by Barre attorney David Kidney. The case was prosecuted by Assistant United States Attorney Christina Nolan.
U.S. Attorney Coffin noted also that this prosecution is part of the U.S. Department of Justice’s Project Safe Neighborhood, a nationwide commitment to reduce gun crime in America. Led by the U.S. Attorney’s Office and ATF, Project Safe Neighborhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who violate federal gun laws. For more information about Project Safe Neighborhood and Project Safe Vermont, please visit: www.psn.gov.
Jury Finds Former Spokane Indian Reservation Resident Guilty of Child Sexual Abuse ChargesRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that a Federal jury sitting in Spokane found Valentin Cardenas Gonzales, age 74, formerly of Ford, Washington, guilty of two charges of Aggravated Sexual Abuse of a Minor and two charges of Abusive Sexual Contact with a Minor. These criminal charges involved three minor children from the Spokane Indian Reservation.
Following the return of the guilty verdicts, United States District Court Judge Thomas O. Rice scheduled a sentencing hearing for December 4, 2013 at 9:00 a.m. At sentencing, Gonzales faces a mandatory minimum 30 year up to a life term of imprisonment on both of the Aggravated Sexual Abuse of a Minor charges and any term of years up to a life term of imprisonment on the Abusive Sexual Contact with a Minor charges. Gonzales also faces a minimum five year up to life term of court supervision following release from Federal prison, up to a $250,000 fine for each charge, and restitution for each of the child victims.
This investigation was conducted by the Federal Bureau of Investigation and the Spokane Tribal Police Department. The case was prosecuted by K. Jill Bolton, Assistant U.S. Attorney for the Eastern District of Washington.
CR-12-0022-TOR
James Benjamin Arnold Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on September 18, 2013, before U.S. District Judge Donald W. Molloy, JAMES BENJAMIN ARNOLD, a 25-year-old resident of Missoula, was sentenced to a term of:
- Prison: 6 months, plus an additional 6 months of house arrest with electronic monitoring
- Special Assessment: $100
- Supervised Release: 4 years
ARNOLD was sentenced in connection with his guilty plea to conspiracy to possess with the intent to distribute marijuana.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
On July 20, 2010, a Yellowstone County Sheriff's Office deputy initiated a traffic stop on a black 2010 Mercedes Benz SUV after running the license plate and determining that the owner had a valid arrest warrant. A narcotics-detecting K-9 was called to the scene and positively alerted on the vehicle for the presence of narcotic odors. The vehicle was impounded pending a search warrant application. A subsequent search yielded airline tickets, a cell phone, documents, $14,154 in cash, and user amounts of marijuana.
Detectives had the cellular telephone seized from the vehicle analyzed. The contents revealed that the owner of the vehicle, Joseph Chartraw, had been involved with selling multiple pounds of marijuana, as well as transporting tens of thousands of dollars in cash. Some of the text messages on the phone blatantly discussed prices for pounds of marijuana, smuggling bulk cash via the airlines, having bulk cash from drug proceeds deposited into bank accounts, and dealing marijuana to the Indian reservations in Montana. According to the text messages on the phone, marijuana was distributed to Browning, Polson, Crow Agency, as well as Havre, St. Ignatius, Great Falls, Missoula, Cut Bank, Lolo, and other places throughout Montana.
One of the subjects involved in the conspiracy was ARNOLD. ARNOLD was approached by other members of the conspiracy and agreed to act as a courier for the organization. ARNOLD is reported to have made between 7 and 10 trips for Chartraw to California and Oregon to pick up marijuana and to deliver cash to the sources of supply. ARNOLD's expenses were paid by the organization and he was paid cash and marijuana for each of his trips.
The evidence would prove that it was reasonably foreseeable to ARNOLD, based on his own trips to California and Oregon, as well as his relationship with co-conspirators, including Brandon Bickford, that the conspiracy involved at least 100 kilograms of marijuana and was possessed with the intent to distribute.
Chartraw and Bickford pled guilty to federal charges and have been sentenced.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that ARNOLD will likely serve all of the time imposed by the court. In the federal system, ARNOLD 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 Billings Big Sky Safe Streets Task Force.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney(s Office announced that during a federal court session in Billings, on September 19, 2013, before U.S. Magistrate Judge Carolyn S. Ostby, the following individual was arraigned:
JONATHAN RAY GONSALEZ, a 29-year-old resident of Box Elder, appeared on a charge of aggravated sexual abuse/aiding and abetting. He is currently detained. If convicted of this charge, GONSALEZ faces possible penalties of life in prison, a $250,000 fine, and 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.
The defendant pled not guilty to the charge.
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.
Indictments Returned in Hammond Federal CourtRead the Press Release
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana- The United States Attorney’s Office announced that the following Indictments were returned on September 18, 2013:
Michael Radovick, 28, of Gary, Indiana, was charged with possession of a firearm by a convicted felon and possession of a firearm by an unlawful user of controlled substances.This charge was filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hammond Police Department.This case has been assigned to and will be prosecuted by Assistant United States Attorney Thomas McGrath.
Kiontay Pennington, 34, of Gary, Indiana, Oscar Cosme, 40, of East Chicago, Indiana, and Adron Tancil, 36, address unknown, were charged with use of a firearm during and in relation to a drug trafficking crime and the murder of Julio Cartagena in May 2003.These charges were filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation.This case has been assigned to and will be prosecuted by Assistant United States Attorney David Nozick.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
I-55 Bandit Charged with One Count of Bank RobberyRead the Press Release
St. Louis, MO – ANDREW MABERRY, who the FBI referred to as the I-55 Bandit, was charged with the July 2, 2013, robbery of the Commerce Bank in Jefferson County, Missouri.
Maberry, O’Fallon, IL, was indicted by a federal grand jury on one felony count of bank robbery. The federal investigation is continuing.
If convicted, this charge carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case is being investigated by the Federal Bureau of Investigation with assistance from multiple law enforcement agencies from several states. Assistant United States Attorney Tom Mehan is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Hartford Man Pleads Guilty to EscapeRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ENRIQUE LUCIANO, also known as “Pucho,” 26, of Hartford, pleaded guilty today before Senior United States District Judge Warren W. Eginton in Bridgeport to one count of escape from the custody of the Attorney General.
According to court documents and statements made in court, on May 27, 2010, LUCIANO was sentenced in Hartford federal court to 60 months of imprisonment for possession of a firearm by a convicted felon. On February 20, 2013, he was transferred to Watkinson House Residential Reentry Center, a halfway house in Hartford. On July 11, 2013, after being denied a job search pass by Watkinson staff, LUCIANO was seen leaving the halfway house with most of his belongings. He did not return.
On July 19, 2013, LUCIANO was arrested by the U.S. Marshals Service. At the time of his escape, LUCIANO had a projected release date of August 18, 2013.
Judge Eginton has scheduled sentencing for December 12, 2013, at which time LUCIANO faces a maximum term of imprisonment of five years and a fine of up to $250,000.
LUCIANO has been detained since his arrest.
This case was investigated by the U.S. Marshals Service and is being prosecuted by Assistant United States Attorney Jonathan S. Freimann.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Halliburton Pleads Guilty to Destruction of Evidence in Connection with Deepwater Horizon Disaster and Is Sentenced to Statutory Maximum FineRead the Press Release
Halliburton Energy Services Inc. (Halliburton) pleaded guilty today to destroying evidence pertaining to the 2010 Deepwater Horizon disaster and was sentenced to the statutory maximum fine, the Justice Department announced.
In addition, a criminal information was filed today charging a former Halliburton manager, Anthony Badalamenti, 61, of Katy, Texas, with one count of destruction of evidence.
“These announcements mark the latest steps forward in the Justice Department’s efforts to achieve justice on behalf of all those affected by the Deepwater Horizon explosion, oil spill, and environmental disaster,” said Attorney General Eric Holder. “Halliburton and one of its managers have now been held criminally accountable for their misconduct, underscoring our continued commitment to ensuring that the victims of this tragedy obtain justice, and to safeguarding the integrity of relevant evidence. I am grateful to all of the Justice Department leaders, federal investigative agency partners, and state and local allies whose tireless work made this outcome possible – and whose daily efforts will help to prevent such incidents from happening in the future.”
“Halliburton destroyed evidence during the investigation of the largest environmental disaster in U.S. history, and now both the company and the Halliburton manager who ordered the destruction are being held to account,” said Acting Assistant Attorney General Mythili Raman of the Criminal Division. “I am grateful for the tenacious work of the Deepwater Horizon Task Force prosecutors and investigators who have worked tirelessly on this and other Deepwater Horizon matters to ensure that justice is brought to the people of the Gulf Coast and to the families of the eleven men who perished on April 20, 2010.”
Halliburton’s guilty plea was accepted, and its sentence was imposed, by U.S. District Judge Jane Triche Milazzo of the Eastern District of Louisiana. During the guilty plea and sentencing proceeding today, Judge Milazzo found, among other things, that the sentence appropriately reflects Halliburton’s offense conduct. Judge Milazzo also noted that the statutory maximum fine and three year probationary period provide just punishment and appropriate deterrence, and noted Halliburton's self-reporting of the misconduct, substantial and valuable cooperation in the government's investigation, and substantial efforts to recover the deleted data.
According to court documents, on April 20, 2010, while stationed at the Macondo well site in the Gulf of Mexico, the Deepwater Horizon rig experienced an uncontrolled blowout and related explosions and fire, which resulted in the deaths of 11 rig workers and the largest oil spill in U.S. history. Following the blowout, Halliburton conducted its own review of various technical aspects of the well’s design and construction. On or about May 3, 2010, Halliburton established an internal working group to examine the Macondo well blowout, including whether the number of centralizers used on the final production casing could have contributed to the blowout. A production casing is a long, heavy metal pipe set across the area of the oil and natural gas reservoir. Centralizers are metal devices that protrude from various intervals of the casing strings of a well, which can help keep the casing centered in the wellbore away from the surrounding walls as it is lowered and placed in the well. Centralization can be significant to the quality of subsequent cementing around the bottom of the casing. Prior to the blowout, Halliburton had recommended to BP the use of 21 centralizers in the Macondo well. BP opted to use six centralizers instead.
As detailed variously in the charging instruments filed against Halliburton and against Badalamenti, during the relevant time period Badalamenti was Halliburton’s cementing technology director. In May 2010, in connection with Halliburton’s internal post-incident examination of the Macondo well, Badalamenti directed a senior program manager for Halliburton’s Cement Product Line (Program Manager) to run two computer simulations of the Macondo well final cementing job using Halliburton’s Displace 3D simulation program. Displace 3D was a next-generation simulation program that was being developed to model fluid interfaces and their movement through the wellbore and annulus of a well. The modeling sought to compare the 21 centralizers Halliburton had recommended to BP versus the six centralizers BP ultimately used. As detailed in the charging documents, the simulations indicated to those present that there was little difference between using six and 21 centralizers on the Macondo well. Badalamenti directed Program Manager to destroy these results, and Program Manager did so.
In or about June 2010, similar evidence was also destroyed in a later incident. Badalamenti asked another, more experienced, employee (“Employee 1”) to run simulations again comparing six versus 21 centralizers. Employee 1 reached the same conclusion. Badalamenti then directed Employee 1 to “get rid of” the simulations, and, after a period of delay, Employee 1 deleted them from his computer.
Efforts to forensically recover the original destroyed Displace 3D computer simulations during ensuing civil litigation and federal criminal investigation by the Deepwater Horizon Task Force were unsuccessful.
Halliburton’s guilty plea and sentence, and the criminal charge announced today against Badalamenti, are part of the ongoing criminal investigation by the Deepwater Horizon Task Force into matters related to the April 2010 Gulf oil spill. The Deepwater Horizon Task Force, based in New Orleans, is supervised by Acting Assistant Attorney General Mythili Raman and led by John D. Buretta, who serves as the director of the task force. The task force includes prosecutors from the Criminal Division and the Environment and Natural Resources Division of the Department of Justice; the U.S. Attorney’s Office for the Eastern District of Louisiana and other U.S. Attorney’s Offices; and investigating agents from: the FBI; Department of the Interior, Office of Inspector General; Environmental Protection Agency, Criminal Investigation Division; Environmental Protection Agency, Office of Inspector General; National Oceanic and Atmospheric Administration, Office of Law Enforcement; U.S. Coast Guard; U.S. Fish and Wildlife Service; and the Louisiana Department of Environmental Quality.
The case is being prosecuted by Deepwater Horizon Task Force Director Buretta, Deputy Director William Pericak, and Task Force prosecutors Richard R. Pickens II, Scott M. Cullen, Colin Black and Rohan Virginkar.
An information is merely a charge and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Hagerstown Dentist Indicted on Charges of Enticing A Minor to Engage in Sexual Activity and Distribution of OxycodoneRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment today charging Vaqar Ahmad Choudry, age 42, of Germantown, Maryland, with distribution of oxycodone and enticement of a minor to engage in sexual activity.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District; and Washington County Sheriff Douglas Mullendore.
According to the indictment and a related criminal complaint, Choudry is a dentist who owns Hagerstown Dental Center, located at 301 East Antietam Street in Hagerstown. The criminal complaint alleges that Choudy provided a cooperating source with an illicit prescription for oxycodone, in exchange for the source’s assistance in arranging a meeting with a fictional minor child at a hotel in Hagerstown.
According to the criminal complaint, in May 2013, the Washington County Narcotics Task Force (WCNTF) received complaints alleging that Choudry was writing prescriptions for pain medication without medical justification. WCNTF officers initiated an investigation and in early September 2013, law enforcement learned that Choudry told a confidential source that he would like to have sex with a prepubescent girl. Choudry asked the source to find him a girl with whom he could have sex. On September 6, 2012, Choudry provided the confidential source with a prescription for 15 percocet pills, in exchange for the source arranging a meeting with a minor female. At the direction of WCNTF agents, the confidential source arranged a meeting with Choudry and a fictional girl at a Hagerstown motel on September 12, 2013. Choudry was arrested when he arrived for the meeting.
Choudry faces a maximum sentence of 20 years in prison for the drug charge, and a mandatory minimum of 10 years and a maximum of life in prison for enticement of a minor. A detention hearing was held earlier today in U.S. District Court in Baltimore before U.S. Magistrate Judge Timothy Sullivan, who ordered the Choudry remain detained. No other court appearance has been scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised DEA, Washington County Sheriff’s Office and Washington County Narcotics Task Force for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Peter J. Martinez, who is prosecuting the case.
Gregory John Harris Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on September 18, 2013, before U.S. District Judge Donald W. Molloy, GREGORY JOHN HARRIS, a 57-year-old resident of Humboldt County, California, was sentenced to a term of:
- Probation: 3 years, with 6 months house arrest with electronic monitoring
- Special Assessment: $100
- Fine: $15,000
HARRIS was sentenced in connection with his guilty plea to conspiracy to possess with intent to distribute marijuana.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
From the summer of 2008, until the summer of 2010, Joseph Chartraw organized and profited from a marijuana distribution network across Montana. Chartraw had numerous distributors and drug couriers in Montana. Chartraw's sources of supply were identified by law enforcement as being in California. Chartraw used his cellular telephone to communicate with everyone in his distribution organization - including some of his sources of supply in California.
Chartraw's original connection to a group of marijuana growers and distributors in California was K.F. K.F. would bring together multiple growers at his home whenever Chartraw or one of his couriers would be arriving in California. K.F. would have several individuals bring their marijuana to his home for redistribution to Chartraw or one of his couriers. HARRIS was one of the sources of supply for Chartraw through K.F. HARRIS knew he was supplying marijuana for resale to K.F. and received money for each of the transactions. K.F. was the primary contact for the group and Chartraw until K.F. and Chartraw had a falling out over a vehicle title.
The evidence would show that HARRIS provided at least more than 2.5 kilograms of marijuana but less than 5 kilograms of marijuana to K.F. for redistribution to Chartraw during the course of his involvement in the conspiracy.
Chartraw pled guilty to federal charges and has been sentenced.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that HARRIS will likely serve all of the time imposed by the court. In the federal system, HARRIS 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 Billings Big Sky Safe Streets Task Force.
Goodwin Charges Mingo Judge in Second ConspiracyRead the Press Release
CHARLESTON, W.Va. - U.S. Attorney Booth Goodwin today charged Mingo County Circuit Judge Michael Thornsbury in a second conspiracy to deprive a Mingo County resident of his constitutional rights. In a court filing this morning, Goodwin alleged that Thornsbury conspired with other Mingo County elected officials to cover up evidence of illegal drug use and other misconduct by late Mingo County Sheriff Eugene Crum.
Earlier this year, according to Goodwin, a Mingo County drug defendant began to provide the Federal Bureau of Investigation (FBI) with information about misconduct by then Sheriff Crum, including illegal drug use and election law violations. The drug defendant is identified in today’s charging document as “G.W.” Crum learned that G.W., along with G.W.’s attorney, were providing information about Crum to the FBI. Crum and other Mingo elected officials, including Thornsbury, conspired to protect Crum and to stop G.W. from informing to the FBI. They arranged to offer G.W. a favorable plea deal if he would fire his attorney, who was assisting G.W.’s communication with federal authorities, and replace him with an attorney chosen by Crum and the other elected officials.
In the face of this coercion, today’s charging document alleges, G.W. fired his attorney, which the officials involved believed would protect Crum from federal investigation and public embarrassment.
Today’s charge was filed in a court document known as an “information.” A defendant may be charged through an information only with the defendant’s consent, so the filing of an information often indicates that a defendant has agreed to cooperate with prosecutors.
The investigation is being conducted by the FBI and the West Virginia State Police. Counsel to the United States Attorney Steven Ruby and Assistant United States Attorney Haley Bunn are handling the prosecution.
Note: An information is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Click here to view a copy of the information
Gang Member Sentenced to Prison for Gun and Drug ChargesRead the Press Release
BOISE – U.S. Attorney Wendy J. Olson announced today that Roy Jesse Gomez, 31, of Boise, Idaho, was sentenced to 76 months in prison followed by four years of supervised release for distribution of methamphetamine and unlawful possession of firearms. U.S. District Judge Edward J. Lodge sentenced Gomez at the federal courthouse in Boise. Gomez pleaded guilty to the charges on June 27, 2013.
According to the plea agreement, Gomez admitted to selling methamphetamine and firearms to a person who was acting as a confidential informant. Gomez sold methamphetamine to the confidential informant on multiple occasions beginning in January 2013. Gomez also sold the same individual nine firearms in January 2013. According to information presented in court, eight of the firearms were stolen and the last firearm had an obliterated serial number. Gomez, a documented member of a criminal gang, was prohibited from possessing the firearms because he was previously convicted of the felony crime of burglary in 2011.
The case was investigated by the Treasure Valley Metro Violent Crimes Task Force and the High Desert Drug Enforcement Task Force. The Metro Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Boise Police Department, Ada County Sheriff’s Office, Caldwell Police Department, Nampa Police Department, Meridian Police Department, Canyon County Sheriff’s Office, and the Idaho Department of Correction.
The case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Franklyn Don Hammontree Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on September 19, 2013, before U.S. District Judge Donald W. Molloy, FRANKLYN DON HAMMONTREE, a 40-year-old resident of Billings, was sentenced to a term of:
- Prison: 15 months, concurrent with a state sentencing
- Special Assessment: $100
- Supervised Release: 3 years
HAMMONTREE was sentenced in connection with his guilty plea to being a felon-in-possession of a firearm.
In an Offer of Proof filed by Assistant U.S. Attorney Kris A. McLean, the government stated it would have proved at trial the following:
On August 30, 2012, a Montana Thirteenth Judicial District Court Judge issued a bench warrant of arrest for HAMMONTREE for alleged violations of his probation and absconding from supervision. His parole officer received information that HAMMONTREE was staying at a local Billings hotel.
On September 27, 2012, HAMMONTREE was arrested at the hotel and a search of his belongings was authorized by the probation officer. Included with his belongings was a backpack that HAMMONTREE admitted was his. A Hi-Point pistol and two loaded magazines were found inside. He immediately made the statement, "that's my protection cause my brother got shot last night." The officers seized the pistol, a Hi-Point, Model C9, 9mm Luger and magazines.
At the time of his arrest on September 27, 2012, HAMMONTREE was a convicted felon on state supervision for a felony drug offense and therefore prohibited from possessing firearms or ammunition.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that HAMMONTREE will likely serve all of the time imposed by the court. In the federal system, HAMMONTREE 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 Bureau of Alcohol, Tobacco, Firearms and Explosives.
Four Michigan Residents Charged with Credit Card FraudRead the Press Release
BUFFALO, N.Y. --U.S. Attorney William J. Hochul, Jr. announced today that Rodney Gilliam, 25, of Southfield, Michigan, Raina Johnson, 22, of Detroit, Michigan, Deantuan Wiley, 24, of Sterling Heights, Michigan, and George Brown, 24, of Farmington Hills, Michigan, were arrested and charged by criminal complaint with conspiracy to commit access device fraud. The charge carries a maximum sentence of five years in prison, a $250,000 fine, or both. In addition, Wiley was charged with possession of 15 or more counterfeit access devices, which carries a maximum sentence of 10 years in prison, a $250,000 fine, or both.
Assistant U.S. Attorney John E. Rogowski, who is handling this case, stated that according to the complaint, on July 3, 2013, a vehicle the four defendants were riding in was searched at the Lewiston Bridge. Law enforcement officers found 98 counterfeit credit cards in the car. A subsequent investigation uncovered security surveillance videos from various retail stores in Pennsylvania, Connecticut, Rhode Island, and New York which captured the defendants using numerous counterfeit credit cards to purchase gift cards and other merchandise, some of which also were found in their vehicle.
The arrest is the result of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Former Telco Federal Credit Union Employee Pleads Guilty to Making False EntriesRead the Press Release
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Donna Harabin, 61, of Clearwater, Florida, pleaded guilty to making false credit institution entries before U.S. District Judge David G. Larimer. The charge carries a maximum penalty of 30 years in prison, a fine of $1,000,000, or both.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated between January 2008 and December 2008, Harabin was president and manager of Telco Federal Credit Union in Elmira, N.Y. During that time, the defendant changed the delinquency dates and falsified payment entries on various loan accounts when she knew that the accounts were delinquent and in default. Harabin changed the due dates and payment information in the reports to make the loans appear more current.
The plea is the culmination of an investigation on the part Special Agents from the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig.
Sentencing is scheduled for December 11, 2013, at 3:00 p.m. before Judge Larimer.Former Stock Promoter and Attorney Arrested in Securities Fraud ConspiracyRead the Press Release
Defendants Allegedly Deceived Potential Investors About ConnectAJet.com
DALLAS — Former stock promoter Jason Wynn and Attorney Martin Cantu were arrested this week by special agents with the FBI on charges outlined in a federal indictment, returned on September 11, 2013, and unsealed today, which charges each of them with offenses related a stock fraud scheme they ran involving a company known as ConnectAJet.com. Cantu was arrested on Wednesday, made his initial appearance yesterday in federal court, and was released on bond. Wynn was arrested this morning and is scheduled to appear this afternoon, at 2:00 p.m., for his initial appearance before U.S. Magistrate Judge David L. Horan. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
ConnectAJet.com, Inc. (CAJT) was a company that purportedly would provide the first online, real-time booking system for private jet charters. Essentially, it would serve the same function as other well-known online booking systems but would focus on high-end chartered aircraft. Wynn, who worked as a penny-stock promoter, used-car salesman and consultant, partnered with Cantu to build and market the idea into a profitable business. Cantu owned the majority of shares of CAJT.
The indictment alleges that from approximately May to October 2007, Wynn, 31, and Cantu, 56, conspired with each other, and others, to commit securities fraud by deceiving potential investors regarding CAJT. As part of their scheme, Wynn and Cantu caused public statements and advertisements to be issued that included numerous false and misleading statements about the progress and status of the company’s real-time booking system; CAJT’s relationships with reputable companies; and CAJT’s customer base. The false and misleading statements led investors to believe CAJT’s online booking system was complete, when, in fact, it never was developed past the initial concept. The false and misleading statements also led investors to believe that the company had achieved operational success it had not achieved. These false and misleading statements increased demand for CAJT shares, which allowed Wynn, Cantu and others to sell their CAJT shares at artificially-inflated prices.
The indictment names co-conspirator Ryan Reynolds, a former stock broker, who pleaded guilty in the Southern District of Florida to conspiracy to commit securities fraud, based on his involvement in the CAJT conspiracy.
From August 2007 through January 2008, entities controlled by Wynn sold 4.2 million CAJT shares in the public market, resulting in profits of $2.585 million. During the approximate two-month time frame of August to October 2007, Cantu realized $548,881 in profits from the sale of 250,000 CAJT shares he controlled.
The indictment charges each defendant with one count of conspiracy to commit securities fraud and one substantive count of securities fraud. A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the maximum statutory penalties are five years in prison and a $250,000 fine for the conspiracy count and 20 years in prison and a $5 million fine for the securities fraud count. In addition, restitution could also be ordered.
Today’s announcement is related to efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The case is being investigated by the FBI. Assistant U.S. Attorneys P. J. Meitl and J. Nicholas Bunch are in charge of the prosecution.
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Former Social Worker Sentenced for Health Care FraudRead the Press Release
Continued to Practice After Her License Was Suspended in 2005
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Rosemary McDowall, age 59, of Silver Spring, Maryland, today to six months of home detention as part of 18 months probation, for health care fraud. Judge Titus also ordered McDowall to pay restitution of $151,404.73.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to her plea agreement, in 1996, McDowall, a licensed social worker, signed a contract to become a participating provider with Blue Cross Blues Shield of Maryland (BCBS). As a participating provider, McDowall was entitled to accept payment directly from BCBS for services rendered. Under the terms of her contract, McDowall was obligated to notify BCBS if she lost her license to practice as a social worker.In 2005, McDowall’s license to practice as a social worker was suspended by the Maryland State Board of Social Work Examiners. McDowall failed to report to BCBS that her license to practice was suspended, as was required under her contract, and she continued to see patients and caused claims to be submitted to BCBS. In 2008, still unaware that McDowall’s license had been suspended, BCBS terminated McDowall as a participating provider, but permitted her to continue to be a non-participating provider with BCBS. BCBS participating providers send claims to, and are paid directly by, BCBS. Patients of BCBS non-participating providers must pay the provider directly and the patients are reimbursed by BCBS the allowed amount of their claim. Despite the fact that her license to practice social work had been suspended, McDowall continued to submit claim forms to BCBS for the patients she treated. BCBS reimbursed McDowall’s patients the allowed amount, and McDowall collected her allowed fees from the patient.
In 2010, BCBS learned that McDowall had not been licensed to practice social work since 2005 and stopped paying all claims submitted by McDowall or BCBS members who had seen McDowall for treatment. McDowall admitted that fraudulent claims submitted during the scheme total between $120,000 and $200,000.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Mara Zusman Greenberg and Kristi N. O’Malley, who prosecuted the case.
Former Social Security Administrator to Plead Guilty to Aggravated Identity Theft, Mail Fraud, Unauthorized Sale of Stolen Stocks, Tax ChargesRead the Press Release
PROVIDENCE, R.I. – Randolph Hurst, 50, of West Warwick R.I., a former Assistant District Manager for the Social Security Administration in Rhode Island, has agreed to plead guilty to stealing the identity of a Coventry man and using the victim’s identity to fraudulently sell more than $160,000 worth of stock certificates belonging to the victim. Hurst has also agreed to plead guilty to failing to paying $61,999 in taxes owed to the IRS.
According to a plea agreement filed with the U.S. District Court on Wednesday, Hurst will plead guilty to one count each of aggravated identity theft, transportation of stolen securities and tax evasion; two counts of mail fraud; and three counts of filing a false tax return.
A co-defendant in this matter, Justin Silveira, 29, of Coventry, has agreed to plead guilty to two counts of perjury and one count of obstruction of justice. It is alleged that Silveira lied to a grand jury which was investigating this matter. The plea agreements in this matter are part of a package plea agreement whereas both defendants must plead guilty or both agreements will be vacated.
The plea agreements were announced by United States Attorney Peter F. Neronha; Cheryl Garcia, Acting Special Agent in Charge of the New York region of the U.S. Department of Labor, Office of Labor Racketeering and Fraud Investigations; Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI; John Collins, Acting Special Agent in Charge of the Boston office of the Internal Revenue Service, Criminal Investigation; and Scott E. Antolik, Special Agent in Charge of the Boston field office of the Social Security Administration, Office of the Inspector General/Office of Investigations.
According to court documents, including an indictment returned in this matter in November 2012, Hurst allegedly used personal identifying information belonging to the victim to open a joint account at Summit Brokerage Services in Providence in his name and in the name of the victim, without the victim’s permission. Hurst allegedly provided documentation to Summit purportedly authored and signed by the victim, requesting the deposit of two stock certificates owned by the victim. The victim claims he never authorized the deposit of the stock certificates and that he had not endorsed the stock certificates.
It is alleged in court documents that in October 2010, without the victim’s knowledge, Hurst requested that Summit sell the stocks and issue a check in his name and in the victim’s name for $157,747.49, which represented a portion of the proceeds of the sale of the stocks, and that the check be sent by overnight courier to the Coventry address of Justin Silveira. It is alleged that on October 22, 2010, the check was deposited into a bank account owned jointly by Hurst and his wife.
In addition, court documents allege that in October 2010, Hurst requested a check from Summit in the amount of $3,980.46, in his name and in the victim’s name, for the remaining proceeds from the sale of the stock, and that it be sent to the same address in Coventry. On November 8, 2010, the check was deposited into a bank account owned jointly by Hurst and his wife.
It is alleged that Hurst and his wife spent the proceeds of the sale of the stock, $161,727.95, on personal items and expenses.An indictmentis merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
At sentencing, Hurst faces statutory penalties of up to 10 years in federal prison followed by a term of supervised release of up to 3 years and a fine of up to $250,000 for mail fraud; up to 10 years in prison followed by a term of up to 3 years of supervised release and a fine of up to $250,000 for transportation of stolen securities; up to 3 years imprisonment followed by up to 1 year of supervised release and a fine of up to $100,000 for filing a false tax return; up to 5 years imprisonment followed by up to 3 years of supervised release and a fine of up to $100,000 for tax evasion; and a mandatory consecutive sentence of 2 years in federal prison followed by up to 1 year of supervised release and a fine of up to $250,000 for aggravated identity theft.At sentencing, Silveira faces statutory penalties of up to 5 years in federal prison followed by a term of supervised release of up to 3 years and a fine of up to $250,000 for perjury; up to 10 years in federal prison followed by a term of supervised release of up to 3 years and a fine of up to $250,000 for obstruction of justice.
The cases are being prosecuted by Assistant U.S. Attorney Dulce Donovan.The matter was investigated by federal agents from the FBI; U.S. Department of Labor Office of Labor Racketeering and Fraud Investigations; Internal Revenue Service – Criminal Investigation; and Social Security Administration, Office of the Inspector General/Office of Investigations.
This law enforcement action is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud.
Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Former Philadelphia Traffic Court Judge Pleads Guilty to Scheme That Defrauded Pennsylvania of State Grant FundsRead the Press Release
PHILADELPHIA - Former Philadelphia Traffic Court Judge Robert Mulgrew, 55, of Philadelphia, pleaded guilty today to mail fraud and conspiracy to commit mail fraud in connection with a scheme to defraud the Pennsylvania Department of Community and Economic Development (“DCED”). Mulgrew also pleaded guilty to filing a false tax return.
Mulgrew and co-defendant Lorraine Dispaldo, who previously pleaded guilty, engaged in a scheme to fraudulently receive and misuse Pennsylvania state grant funds awarded to non-profit groups. Between 1996 and 2008, the DCED awarded hundreds of thousands of dollars in grants to two community groups with which Mulgrew and Dispaldo were associated. DCED awarded more than $450,000 in grants to the Friends of Dickinson Square (“FDS”) with the understanding that the grants were to be used to purchase equipment and materials for the maintenance of Dickinson Square Park at 4th & Tasker Streets, Philadelphia, and surrounding neighborhood revitalization. Mulgrew, the Vice-President of FDS, signed the FDS grant contracts with DCED. DCED also awarded approximately $397,000 in grants to the Community to Police Communications (“CPC”) with the understanding that the grants were to be used to purchase communications equipment for the police and to purchase materials to secure vacant lots and buildings for the protection of the police. Dispaldo signed the CPC grant contracts with DCED.The defendants misrepresented their intentions to DCED, and that - contrary to their agreement to spend grant funds solely to purchase equipment and materials for neighborhood revitalization and improved communications with the police - the defendants used thousands of grant dollars to pay Mulgrew’s relatives and associates. They represented that they were paying for work done on behalf of FDS and CPC. After distributing grant funds to relatives and associates, the defendants supplied false and misleading information to DCED to conceal the actual amount of grant funds which they paid to the relatives and associates contrary to the express purposes of the grant.
Mulgrew and Dispaldo spent thousands of dollars of grant funds for their own personal uses. Mulgrew improperly reimbursed himself from FDS funds for thousands of dollars of expenditures which he claimed were incurred by FDS when they were not and for his expenditures for items not authorized under the terms of the FDS grants. Mulgrew and Dispaldo supplied DCED with false documents to conceal their own use of grant funds and other improper uses of the funds.
Mulgrew did not report the additional income from the fraud scheme on his tax return and claimed false business deductions which improperly reduced his tax liability.
Mulgrew faces a maximum possible sentence of 23 years in prison, five years supervised release, restitution to the IRS and restitution to the Commonwealth of Pennsylvania. Dispaldo, who pleaded guilty in April, is scheduled for sentencing on November 25, 2013.
The case was investigated by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Paul L.Gray.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Former Moro Township Official Pleads Guilty to FraudRead the Press Release
Donald R. Flack, 77, of Moro, Illinois, who served as the Moro Township Supervisor, pled guilty to wire fraud and structuring transactions to avoid reporting requirements today in federal court, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced. Flack faces up to 20 years in prison on the wire fraud charge and up to 5 years in prison on the structuring charge. Both charges hold the possibility of a $250,000 fine and 3 years of supervised release after prison term. Sentencing is set for January 3, 2014.
Evidence revealed in Court showed that Flack was an elected official and employed as Moro Township Supervisor since 2001. Moro Township is a governmental unit in Madison County, Illinois. As Moro Township Supervisor, Flack was required to accurately report the finances of the township to the township board, to the township citizenry, and also to the Illinois Comptroller’s Office.
In approximately 2006, Flack began unlawfully taking money in excess of his authorized salary from the Moro Township account believing that he could repay the money. Flack claims he borrowed the money to make a personal investment with a large return promised. Flack was planning to repay the township. Flack wrote checks to himself out of the township account disguised as “office expenses.” The amount of funds misappropriated is approximately $700,000.
The prosecution is the result of an investigation conducted by the Federal Bureau of Investigation and the Internal Revenue Service/Criminal Investigations. The prosecution is being handled by Assistant U.S. Attorney Norman R. Smith.
Former Edwardsville Police Chief Sentenced for Theft and EmbezzlementRead the Press Release
James S. Bedell, 57, the former Chief of Police of Edwardsville, Illinois, was sentenced today in federal court to eighteen months in prison, to be followed by three years of supervised release, an order of restitution in the amount of $136,800, and a special assessment fee of $400.00, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced. On April 17, 2103, Bedell pled guilty to four counts of Embezzlement and Theft from the City of Edwardsville.
“I am always saddened when a member of law enforcement is found to be engaged in illegal acts. I urge the public to remember that the vast majority of our men and women in blue are extremely honest, bright and capable, and that they put on their uniforms each day to serve the citizens, not knowing if they will come home at the end of their shift. It is for them and for all of us that I will not cease my efforts to expose and help punish police misconduct when it is found.” said United States Attorney Wigginton.
James S. Bedell was employed as the Director of Police and was also referred to as the Chief of Police of the City of Edwardsville from approximately 2007 through October 5, 2012. As part of the plea, Bedell admitted that from July of 2009 through September of 2012, while Chief for the City of Edwardsville, he unlawfully removed cash and money orders from a lockbox in the police department that contained vehicle impound fees. The City of Edwardsville charges a $300 fee for vehicles towed as a result of certain enumerated violations. The $300 administrative fee must be paid by cash or money order and the paid administrative fee is revenue to the City which must be properly accounted for and therefore the funds received are not for the personal use of an employee of the City of Edwardsville. Bedell admitted as part of the plea that he converted some of the funds to his personal use, generally to support a gambling habit.
The investigation was conducted by the Federal Bureau of Investigation and the Illinois State Police, with the assistance of the City of Edwardsville. The prosecution was handled by Assistant U.S. Attorney Norman R. Smith.
Former Bank Branch Manager Pleads Guilty to Embezzlement, Money Laundering and Income Tax Fraud ChargesRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON, OHIO – Diane Elizabeth Niehaus, 40, of Beavercreek, Ohio pleaded guilty to one count each of embezzlement, money laundering, and filing a false income tax return with the Internal Revenue Service (IRS) for her scheme to embezzle thousands of dollars from the accounts of customers of the branch bank she managed in Centerville, Ohio.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, Cincinnati Field Office and Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Office announced the guilty pleas entered before U.S. District Judge Timothy S. Black.
According to court documents, Niehaus managed the Union Savings Bank branch in Centerville between 2007 and 2010. Using her position with USB, Niehaus created fraudulent withdrawal slips to withdraw thousands of dollars in funds from multiple customer accounts using cashier’s checks or official checks she wrote to herself between 2008 and 2010. Niehaus illegally earned thousands of dollars through this embezzlement scheme, and she failed to report this fraudulently-obtained income on her federal income tax returns.
"As we often see, the victims are not only the taxpayers, but also the individuals and entities who suffer the financial harm," said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “This investigation is a direct result of the excellent partnership IRS, FBI, and the U.S. Attorney’s office has in combating violations of Federal law."
Embezzlement is punishable by zero to 30 years in prison. Money laundering carries a potential penalty of zero to 20 years and filing a false tax return has a sentence ranging from zero to three years in prison. The court can also impose fines and order her to pay the costs of prosecution associated with the false tax return charge. A sentencing hearing is set for January 9, 2014.
The court will conduct its own investigation prior to sentencing Niehaus, including determining the actual amount of loss to victims.
U.S. Attorney Stewart commended the cooperative investigation by special agents of the FBI and IRS, as well as Assistant U.S. Attorney Brent Tabacchi, who is prosecuting the case. U.S. Attorney Stewart also acknowledged the cooperation of U.S. Bank in the investigation.
Former Army Research Scientist Pleads Guilty to Conspiring to Defraud the GovernmentRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, before United States District Judge Terrence W. Boyle, former Army Research scientist DWIGHT WOOLARD of Raleigh, North Carolina plead guilty to conspiring to defraud the United States government, in violation of Title 18, United States Code, Section 371. At sentencing in January 2014, he faces a maximum term of imprisonment of five years, a $250,000 fine, and forfeiture of assets derived from his fraudulent activities. As part of his plea agreement, DR. WOOLARD will pay $842,403.70 in restitution to the Department of Defense.
United States Attorney Thomas G. Walker expressed his Office’s commitment to the prosecution of public officials who abuse their power for personal financial gain. “For almost a decade, Dwight Woolard abused the Army’s trust and stole monies designated for researching and developing innovative ways to protect and defend American military personnel in battle.”
According to the Government’s proffer, DR. WOOLARD worked at the Army Research Office in Durham as a Program Manager from September 1998 until his resignation in December 2012. The Army Research Office falls under the command of the United States Army Research and Development and Engineering Command whose mission is to provide integrated research, development, and engineering solutions to empower, unburden, protect, and sustain the warfighter. In his civilian position, DR. WOOLARD had control over Department of Defense funding on numerous government contracts and grants. Beginning in December 2001, DR. WOOLARD used his position to steer sub-contracts to his spouse and her company Qtronika. This work consisted of data entry for University scientists, website development for scientific research areas monitored by DR. WOOLARD and planning annual scientific conferences. In total, Dr. Woolard’s wife or her company received $842,403.70 from government funded projects.
Special Agent-in-Charge John F. Khin, Defense Criminal Investigative Service (DCIS), Southeast Field Office stated, “It is a top priority of the DCIS to ferret out and prosecute corrupt Department of Defense (DoD) officials. Former Army Engineer Dwight Woolard was terminated from his position with the Army Research Office in North Carolina in November 2012 based on findings of an investigation that he caused more than $1 million worth of DoD contracts to be awarded to his wife’s company. In addition to criminal sanctions, the DCIS is also pursuing forfeiture action to recoup losses to the Government.”
This was a joint investigation conducted by the Defense Criminal Investigative Service (DCIS) and the Army’s Criminal Investigation Division. Assistant United States Attorney Susan Menzer is prosecuting the case for the government.For Reentry After DeportationRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that yesterday in federal court, Chief United States District Judge James C. Dever III sentenced Hermelindo Velasquez-Rivera , 36, of Sonora, Mexico, to 125 months imprisonment, followed by 3 years of supervised release.
VELASQUEZ-RIVERA was named in an Indictment filed on April 3, 2013, charging him with illegal reentry into the United States after deportation subsequent to aggravated felony convictions. On June 4, 2013, velasquez-rivera pled guilty to that charge.
According to the investigation, VELASQUEZ-RIVERA, also known as “Ramon Efrain Castro” and “Hermelindo Castro”, an alien, reentered the United States after having previously been deported from the United States on October 28, 1996, on December 17, 2003, and again on April 15, 2010. VELASQUEZ-RIVERA reentered the United States after having been convicted twice of transportation of illegal aliens and twice of illegal reentry after deportation. VELASQUEZ-RIVERA was found by immigration officials in this district as a result of his arrest for driving while impaired and the vehicular death of a 37-year-old mother of two children. VELASQUEZ-RIVERA was convicted of those offenses in Wayne County, North Carolina. The instant federal conviction constitutes VELASQUEZ-RIVERA’s third for illegal reentry to the United States after deportation.Investigation of this case was conducted by the U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations.
Five People Arrested; Charged with Illegal Marijuana Grow in Boise CountyRead the Press Release
Law Enforcement Eradicates 5,585 Live Plants at Two Grow Sites on Public Lands
BOISE – Juan Pablo Villasenor-Villa, 28, Marcos Solano-Farias, 30, Carlos Cerda-Carpio, 40, and Jose Misael Ayala-Talavera, 19, all Mexican nationals, and Mariah D. Villasenor-Rodriguez, 21, of Caldwell, Idaho, were arrested last week by the Drug Enforcement Administration, Bureau of Land Management and U.S. Forest Service in connection with a large marijuana growing operation on public lands, U.S. Attorney Wendy J. Olson announced.
The complaints allege the defendants knowingly and intentionally manufactured, distributed, or possessed with intent to distribute at least 100 marijuana plants, and that three of the defendants possessed or used a firearm during or in furtherance of a drug trafficking crime. Preliminary hearings are set for 9:30 a.m. on September 27, 2013, before U.S. Magistrate Judge Candy W. Dale at the federal courthouse in Boise.
On September 11, 2013, law enforcement conducted enforcement actions on an outdoor marijuana grow located near Rabbit Creek in Boise County, Idaho. Solano-Farias, Cerda-Carpio, and Ayala-Talavera were apprehended by law enforcement at a camp located approximately 100 meters from the marijuana grow site. According to the complaints, investigators found and seized two semi-automatic handguns, an SKS or AK-47 type rifle in the sleeping area of the camp, and several hundred marijuana plants that had already been harvested from the growing operation. Investigators also located and eradicated 785 live marijuana plants. Villasenor-Villa and Villasenor-Rodriguez were arrested on September 13 in Caldwell.
During the course of the investigation of the Rabbit Creek grow, investigators learned of another grow site at Beaver Creek, also off Highway 21, where, yesterday, investigators removed over 4,800 marijuana plants from the dispersed grow site.
Olson reminded hunters and others that if they encounter signs of a marijuana grow while recreating on public lands this fall, they should leave the area immediately and report the grow to law enforcement. “Marijuana growers can be dangerous,” said Olson. “Please leave investigations to properly trained law enforcement officers. Should you encounter any evidence of a marijuana grow on public lands, please contact your nearest federal, state or local law enforcement agency or call the Drug Enforcement Administration at (208) 386-2100, or the marijuana hotline at (208) 961-1111. For more information on what to do if you encounter a marijuana grow on public lands, please visit http://fishandgame.idaho.gov/public/hunt/?getPage=276.”
If convicted, the defendants face at least five years in federal prison, a maximum fine of $5 million, and at least four years of supervised release. Those who possessed the firearms face a consecutive five year sentence.
The case is being investigated by the Drug Enforcement Administration, Bureau of Land Management, and United States Forest Service, with assistance from the Ada County Sheriff’s Office, Boise County Sheriff’s Office, Boise Police Department, City County Narcotics Unit (Canyon County Sheriff’s Office and Caldwell Police Department), the Idaho National Guard, Meridian Police Department, Nampa Police Department, Spokane Police Department, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and Washington State Police.
Felon Who Illegally Possessed Firearm in Stamford Sentenced to More Than Seven Years in Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that MARCELLUS CATCHINGS, 27, of Bridgeport, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 90 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on March 18, 2011, CATCHINGS engaged a Stamford Police officer in a foot chase in the vicinity of Pacific Street. During the chase, CATCHINGS pointed a firearm at the officer, and then dropped it. CATCHINGS was apprehended and officers recovered a Browning 9mm handgun. The gun’s chamber contained two bullets, indicating that someone had attempted to fire it, but that it had jammed when two bullets had simultaneously entered the chamber.
Prior to March 2011, CATCHINGS had been convicted of multiple felony offenses, including first degree robbery, possession of narcotics and carrying a dangerous weapon. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
CATCHINGS has been detained since his arrest. On January 24, 2012, he pleaded guilty to one count of possession of a firearm by a convicted felon.
Judge Chatigny ordered the 90-month federal sentence to be served concurrent with a 15-year state sentence CATCHINGS is currently serving.
This matter was investigated by the Stamford Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Rahul Kale.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
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[email protected]Federal Jury Finds Idaho Contractors GuiltyRead the Press Release
Treasure Valley Residents Convicted of Conspiracy,
Obstruction of Justice, Wire and Tax FraudBOISE – Elaine Martin, 66, of Meridian, Idaho, the former president and majority stockholder of MarCon, Inc., was convicted by a federal jury in Boise today of 22 criminal counts, including four counts of filing false individual and corporate tax returns, two counts of conspiracy to defraud the United States, five counts of wire fraud, five counts of mail fraud, one count of false statement, three counts of interstate transportation of property taken by fraud, one count of conspiracy to obstruct justice and one count of obstruction of justice, U.S. Attorney Wendy J. Olson and Assistant Attorney General for the Tax Division Kathryn Keneally announced. Martin’s co-defendant, Darrell Swigert, 67, of Boise, a minority shareholder in Marcon, was found guilty of two counts of obstruction of justice and one count of conspiracy to obstruct justice. Sentencing for both defendants has been set for December 9, 2013, before Chief U.S. District Judge B. Lynn Winmill.
“The jury's verdicts send the strong message that those who seek federal government contracts must deal openly and honestly with the federal government,” said Olson. “I commend the cooperative investigation and prosecution in this case that involved the efforts of several agencies. This office will continue to prioritize and vigorously prosecute those who defraud the federal government and federal taxpayers.”
During the 26-day trial, the jury heard evidence that as early as 2000, Martin submitted false and fraudulent applications to have her construction company, Marcon, admitted and/or remain in two different federally funded programs, the U.S. Small Business Administration (SBA) 8(a) Program, and the Department of Transportation Disadvantaged Business Enterprise (DBE) Program. Both programs are designed to help economically and socially disadvantaged businesses compete in the marketplace. To be admitted into the program, the owner/shareholder that qualifies as socially disadvantaged must also demonstrate economic disadvantage, in part by having a personal net worth below a certain statutory cap.
According to evidence presented at trial, Martin took steps to artificially lower her personal net worth, such as acquiring, holding and transferring assets into the names of nominees in order to appear to be economically disadvantaged. This allowed Martin’s construction firm, MarCon, to qualify for the DBE and SBA 8(a) programs. Martin also caused false and fraudulent tax returns to be filed for herself and Marcon, Inc., which did not report all of the income received by Martin or the company. The false returns were submitted in support of Marcon’s applications to the SBA 8(a) Program and DBE Programs for Idaho and Utah, along with false personal financial statements. The government presented evidence that Martin omitted, deleted, altered and mis-categorized entries in Marcon’s financial books and records. Martin also concealed her role or relationship in other business entities that dealt with Marcon, Inc.
The jury heard evidence that Marcon received more than $2.5 million in government contracts based on the company’s fraudulently obtained SBA 8(a) status, and that Marcon received more than $15 million in government contracts based on the company’s fraudulently obtained DBE status in the states of Idaho and Utah.
The government presented evidence that in order to impede an IRS audit of MarCon and criminal investigation into Martin, Martin and Swigert conspired to obstruct justice by fabricating documents and making false statements that sought to conceal the true nature, source, and extent of property belonging to Martin.
The government is seeking $9,237,722.10 in forfeiture from Martin, which represents the proceeds obtained as a result of the criminal conduct.
“The Small Business Administration Office of Inspector General is committed to helping ensure that only eligible disadvantaged small businesses benefit from the SBA’s 8(a) Business Development Program. We are pleased with the jury's verdict today which sends a strong message to those who lie to obtain preferences for federal contract awards,” said Inspector General Peggy E. Gustafson of the Small Business Administration.
“This verdict should send a clear message, income tax evasion is unacceptable and those who attempt to commit such fraud will be brought to justice,” said Stephen Boyd, IRS Criminal Investigation Special Agent-in-Charge for the State of Idaho.
“The Disadvantaged Business Enterprise (DBE) Program is a business assistance program of the U.S. Department of Transportation (DOT) which helps economically and socially disadvantaged small businesses compete in the marketplace. DBE fraud harms the integrity of the program and adversely impacts law-abiding, small business contractors trying to compete on a level playing field,” said William Swallow, regional Special Agent-in-Charge of the DOT’s Office of Inspector General. “Working with our Federal, State, and local law enforcement and prosecutorial colleagues, we will vigorously pursue those who violate the law, and expose and shut down fraud schemes that adversely affect public trust and DOT-assisted highway programs.”
The charge of making and subscribing a false return is punishable by up to three years in prison and up to three years of supervised release. The charge of conspiracy is punishable by up to five years in prison and up to three years of supervised release. Wire fraud is punishable by up to 20 years in prison and up to five years of supervised release. The charge of making a false statement is punishable by up to two years in prison and up to one year of supervised release. The charge of mail fraud is punishable by up to 20 years in prison and up to five years of supervised release. Each charge of interstate transportation of property taken by fraud is punishable by up to 10 years in prison and up to three years of supervised release. The charges of conspiracy to obstruct justice and obstruction of justice are each punishable by up to five years in prison and up to three years of supervised release. The aforementioned charges are each punishable by a maximum fine of $250,000, per count.
The case was investigated by Internal Revenue Service-Criminal Investigation, Federal Bureau of Investigation, the Office of Inspector General for the U.S. Small Business Administration, and the Office of Inspector General for the U.S. Department of Transportation.
Today's announcement is part of an effort by President Obama's Financial Fraud Enforcement Task Force (FFETF), created in November 2009, to combat financial fraud crimes by waging aggressive, coordinated and proactive investigations and prosecutions. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, the task force is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Federal Judge Sends Cuban to Prison for Possessing Debit and Credit Card Account NumbersRead the Press Release
McALLEN, Texas - Pedro Garcia-Morales, a legal permanent resident from Cuba living in Donna, has been sentenced to federal prison for approximately eight years following his conviction of possessing more than 15 unauthorized access devices with intent to defraud, United States Attorney Kenneth Magidson announced today. A McAllen federal jury convicted Garcia-Morales on May 14, 2013, following one day of trial and less than two hours of deliberation.
Today, U.S. District Judge Micaela Alvarez, who presided over the trial, handed Garcia-Morales a 97-month sentence and further ordered he pay $1,359.61 in restitution. In handing down the sentence, Judge Alvarez noted that too many people think credit card abuse is a type of criminal activity that doesn’t really hurt anybody. However, it affects individuals whether they have a lot or a little in their accounts. Several victims struggled while their accounts were closed. Their accounts were overdrawn or they were financially stressed to find money to eat or pay for gas. The court noted that the defendant seemed to be living off of these people for several years.
During trial, the government contended Garcia-Morales, 41, knowingly possessed more than 500 account numbers linked to credit and debit cards belonging to people from all over the United States.
On Jan. 11, 2013, a search warrant was executed at the defendant’s home, at which time agents discovered two laptops, two flash drives, a credit card encoder and 49 gift/prepaid cards that had been encoded with stolen/unauthorized debit or credit card account numbers. The government proved Garcia-Morales knew the cards were to be used to make fraudulent purchases.
In fact, testimony of witnesses established that over a two-year period, Garcia-Morales used international hacking websites to purchase hundreds of account numbers. He then wired money internationally to hackers in China, Vietnam, Romania and the Ukraine. Encoding software on his laptops and flash drives was used to transfer the purchased account numbers on to the magnetic strips of gift/prepaid cards. The cards could then be used at retail stores to make seemly legitimate purchases. However, use of the cards unlawfully charged those transactions to others’ credit and debit card accounts.
Garcia-Morales will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
U.S. Secret Service and the Hidalgo County Sheriff’s Office investigated. The case is being prosecuted by Assistant United States Attorney (AUSA) Kristen Rees and former AUSA Patricia Rigney.
Federal Disability Discrimination Lawsuit DismissedRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that U.S. District Court Judge Edward Shea dismissed a disability lawsuit brought by a former federal employee of the Department of Energy.
According to information disclosed during the court proceedings, Mary Hollen, formerly of Richland, Washington, sued the Department of Energy claiming that her employer did not accommodate her asthma. Hollen had been an employee of the Bonneville Power Administration (BPA) and had been stationed in Richland since 1994. In her lawsuit, Hollen claimed that her asthma prevented her from working in the Tri-Cities area and that in 2006 she was forced to quit her job and move. Paper's filed in the lawsuit indicated Hollen claimed she could only work at one location "north of Seattle, west of Everett, east of Port Angeles and south of the San Juan Islands." Hollen had sought damages of about $960,000.00.
In dismissing Hollen's case, Judge Shea found that Hollen had not shown that her asthma limited ability to breathe or work when compared to the average individual. Judge Shea also found that BPA had offered Hollen reasonable accommodation but that she did not take advantage of that accommodation. He also found that her request to work from just one location was unreasonable. The court also noted that her claim that she was constructively discharged was meritless.
Michael C. Ormsby stated, "claims of employment discrimination in federal employment are taken seriously. But when meritless lawsuits are brought, our office is dedicated to vigorously defending those suits and protecting the public purse."
This case was defended on behalf of the United States by Rudy J. Verschoor, an Assistant United States Attorney for the Eastern District of Washington.
CV-11-5045-EFS
Fayetteville Woman Pleads to Involuntary Manslaugter in Death of Fort Bragg SoldierRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, SARAH ASHLEY ROGERS, 21pled guilty before Senior United States District Judge W. Earl Britt to one count of Involuntary Manslaughter in violation of Title 18, United States Code, Section 1112, and one count of Driving While Impaired in violation of Title 18, United States Code section 13, assimilating North Carolina General Statute 20-138.1.
The investigation revealed that on or about December 8, 2012, at approximately 1:40 a.m., ROGERS killed Richard Bradley Powell while driving impaired with a blood alcohol concentration exceeding the legal limit of 0.08.
Investigation of this case was conducted by the Fort Bragg Military Police, Fort Bragg Criminal Investigative Detachment, Fort Bragg Department of the Army Uniformed Police and the Federal Bureau of Investigation. Assistant United States Attorney Leslie Cooley and Special Assistant United States Attorney David Coleman prosecuted the case of the government.Escapee Sentenced to 51 Months in PrisonRead the Press Release
COUNCIL BLUFFS, IA - On September 18, 2013, Princeton C. Baker, a 25 year-old former resident of Omaha, Nebraska, was sentenced by United States District Court Chief Judge James Gritzner to 51 months in prison for escape from a federal facility. Judge Gritzner also ordered Baker to serve three years of supervised release when he completes his imprisonment. On July 3, 2012, Baker entered a guilty plea to escape from a federal facility. The basis for the charge and plea was that on November 6, 2012, Baker was transferred to a halfway house in Council Bluffs, Iowa, to complete a 27 month sentence imposed by the Federal District Court for the District of Nebraska. On November 7, 2013, Baker complained of feeling ill and staff from the CH, Inc. halfway house transported Baker to a medical facility. While being transported from the medical facility to a secure facility, Baker jumped from the moving transport vehicle and attempted to take several cars before being apprehended by Council Bluffs, Iowa, police. Judge Gritzner ordered that the 51 months be served consecutively to the prison time Baker is currently serving for attempted robbery in the State of Iowa.
The investigation was conducted by the Council Bluffs, Iowa, Police Department and the United States Marshal’s Service, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Drug Conspiracy and Money Laundering Ring Leader Heads to Prison for 30 YearsRead the Press Release
CORPUS CHRISTI, Texas – Manuel Pena aka “Super,” 48, the leader of a drug trafficking and money laundering conspiracy, has been handed a significant federal sentence, announced United States Attorney Kenneth Magidson.
Today, U.S. District Judge Janis Graham Jack determined Pena to be a leader in the conspiracy and sentenced him to a total of 360 months in federal prison. In handing down the sentence, Judge Jack considered his extensive criminal history and the need to protect the public from future criminal conduct. She further ordered he serve a five-year-term of supervised release following completion of his prison term and also ordered forfeiture of his interest in a property on Aaron Street in Corpus Christi.
Several others – Ignacio Pena aka “Nacho,” 45, Raul Leal Martinez aka “Indio” or “Wahoo,” 37, and, David Pete Dominguez aka “Buda,” 31, all also of Corpus Christi, previously pleaded guilty in relation to the case as well and were sentenced to 168, 85 and 120 months, respectively. Jose Guajardo aka “Garfield,” 41, Rocky Bazaldua aka “Rock,” 32, and Julieann Gutierrez, 25, also pleaded guilty and will be sentenced at a later date.
The indictment charged all of the defendants with conspiring from June 1, 2008, to Jan. 8, 2013, to possess with intent to distribute more than 50 grams of methamphetamine. The investigation revealed that Manuel Pena, a member of and former leader in the Texas Syndicate prison gang, orchestrated various drug deals in the Corpus Christi area. Evidence proved that in May 2011 Manuel Pena made deals to provide cocaine and methamphetamine to Bazaldua and Dominguez. He admitted he acquired cocaine and agreed to sell methamphetamine to Guajardo. Pena also received methamphetamine from Martinez, a local home builder. Ignacio Pena, Manuel Pena’s brother, helped receive and deliver various amounts of cocaine and methamphetamine to various drug dealers in Corpus Christi.
Martinez and Guajardo also pleaded guilty to conspiring to launder the proceeds of their drug sales through various financial transactions. As part of their plea agreements, Manuel Pena, Martinez and Guajardo also agreed to forfeit their interests in various properties around Corpus Christi.
Pena has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated through a joint effort by the Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Customs and Border Protection, Texas Department of Public Safety, the Nueces and Kleberg County Sheriff’s Offices, and the Corpus Christi, Aransas Pass and Portland Police Departments. The case is being prosecuted by Assistant United States Attorney Michael Hess.
District Man Found Guilty of Kidnapping and Sexual Abuse Charges in 2012 Attack in Northeast Washington-Defendant Sexually Assaulted Woman, Then Threw Her Down the Steps-Read the Press Release
WASHINGTON – Cornell “Man” Shumate, 30, of Washington, D.C., has been found guilty by a jury of charges stemming from the kidnapping and sexual assault of a woman in March of 2012, U.S. Attorney Ronald C. Machen Jr. announced today.
Shumate was found guilty on Sept. 18, 2013, in the Superior Court of the District of Columbia, of charges of kidnapping, attempted sexual abuse, and assault. He is to be sentenced on Nov. 22, 2013 by the Honorable John Ramsey Johnson. Shumate faces up to 12 ½ years in prison for the offenses, and lifetime sex-offender registration.
According to the government’s evidence, in March 2012, the victim met Shumate’s friend and they exchanged phone numbers. A few days later, on March 25, 2012, the victim agreed to get together with Shumate’s friend. The friend brought the victim to Shumate’s house in Northeast Washington, and they, along with several others, drank and had casual conversation.
Unbeknownst to the victim, Shumate and his friend were using her as part of a game to see if they could get a woman to have sex with every man in the apartment. After a night of drinking and socializing, the victim had consensual sex with Shumate’s friend in the apartment. After she rejected the defendant, he pushed her into his bedroom, locked the door and started to rape her. After she was able to get away, he threw her out of the apartment and down two flights of stairs. The victim reported the assault immediately and Shumate was apprehended that night.
In announcing the verdict, U.S. Attorney Machen commended the work of those who investigated the case from the Metropolitan Police Department’s Sexual Assault Unit. He also praised those who handled the case for the U.S. Attorney’s Office, including Victim/Witness Advocate Veronica Vaughan, Paralegal Specialist D’Yvonne Key, and Litigation Technology Specialist Kimberly Smith. Finally, he commended the efforts of Assistant U.S. Attorney Amy H. Zubrensky, who indicted the case, and Assistant United States Attorney Mervin A. Bourne, Jr., who prosecuted the case.
13-323Department of Justice Awards $3 Million to Support Tribal Justice and Safety in the Northern District of CaliforniaRead the Press Release
SAN FRANCISCO – The Department of Justice awarded grants totaling over $3 million to Native American tribes in the Northern District of California, announced United States Attorney Melinda Haag. The list of this year’s grantees within the Northern District of California includes the Hoopa Valley Tribe ($1,379,961), the Yurok Tribe ($924,999), the Round Valley Indian Tribes ($300,000), the Hopland Band of Pomo Indians ($300,000), and the Cahto Tribe of the Laytonville Rancheria ($299,966).
The awards were made through the Department's Coordinated Tribal Assistance Solicitation (CTAS), a single application for tribal-specific grant programs. The Department of Justice developed CTAS through its Office of Community Oriented Policing, Office of Justice Programs and Office on Violence against Women, and administered the first round of consolidated grants in September 2010. Over the past four years, it has awarded 989 grants totaling more than $437 million. Information about the consolidated solicitation is available at www.justice.gov/tribal/. A fact sheet on CTAS is available at www.justice.gov/tribal/ctas2013/ctas-factsheet.pdf. CTAS grants enhance law enforcement practices and sustain crime prevention and intervention efforts in various purpose areas including public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; violence against women; juvenile justice; and tribal youth programs.
"These grants are crucial to establishing programs to ensure safe and secure native communities in the Northern District of California,” said United States Attorney Melinda Haag. She continued: “The grants announced today will enhance law enforcement practices, sustain crime prevention and intervention efforts, improve public safety, augment community policing, emphasize efforts to combat violence against women, assist tribes with justice system planning, and provide alcohol and substance abuse programs.”
The awards in the Northern District of California were made as follows:
Hoopa Valley Tribe
- Justice Systems, and Alcohol and Substance Abuse (BJA) $501,437
- Violence Against Women Tribal Governments Program (OVW) $878,524
- Hoopa Valley Tribe Total $1,379,961
Yurok Tribe
- Public Safety and Community Policing (COPS) $299,999
- Comprehensive Tribal Justice Systems Strategic Planning (BJA) $75,000
- Violence Against Women Tribal Governments Program (OVW) $550,000
- Yurok Tribe Total $924,999
Round Valley Indian Tribes
- Public Safety and Community Policing (COPS) $300,000
Hopland Band of Pomo Indians
- Public Safety and Community Policing (COPS) $300,000
Cahto Tribe of the Laytonville Rancheria
- Public Safety and Community Policing (COPS) $299,966
Thirty U.S. Attorneys from districts that include Indian country or one or more federally recognized tribes including, U.S. Attorney Haag, serve on the Native American Issues Subcommittee (NAIS). The NAIS focuses exclusively on Indian country issues, both criminal and civil, and is responsible for making policy recommendations to the Attorney General regarding public safety and legal issues.
Next month, the Justice Department will hold its annual consultation on violence against native women on Oct. 31st, 2013, in Bismarck, N.D. In addition, an Interdepartmental Tribal Justice, Safety and Wellness Session will be held in Bismarck on Oct. 29-30, 2013. It will include an important listening session with tribal leaders to obtain their views on the Department grants, as well as valuable training and technical assistance.
Today's announcement is part of the Justice Department's ongoing initiative to increase engagement, coordination and action on public safety in tribal communities. A complete list of the 2013 awards is available at http://www.justice.gov/tribal/docs/ctas-award-list-2013.pdf
Delaware Woman Pleads Guilty to $1.8 Million Tax Fraud ConspiracyRead the Press Release
WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Beverly Newton, age 52, of Middletown, Delaware, pled guilty today to violations of 18 USC § 286 (False Claims Conspiracy), 18 USC § 1341 (Mail Fraud), and 42 U.S.C. § 408(a)(7)(B) & 18 U.S.C. § 2 (Aiding and Abetting Social Security Fraud). Newton, who will be sentenced on January 14, 2014, by the Honorable Leonard P. Stark, United States District Judge for the District of Delaware, faces a maximum sentence of twenty years in prison, a fine of $250,000, and 3 years of supervised release.
According to statements made at the plea hearing and documents filed in court, the defendant participated in a tax fraud conspiracy involving the filing of more than 180 false individual federal income tax returns with the Internal Revenue Service, using stolen identities. The returns sought refunds of more than $1.8 million. The defendant and her co-conspirators received more than $800,000 on account of the fraudulent returns. The defendant’s role in the conspiracy involved providing names and social security numbers to another co-conspirator, who used the information to file the fraudulent returns. The defendant received more than $300,000 in refunds for her part in the scheme.
U.S. Attorney Oberly gave the following comments: “This case should send a clear signal that individuals who conspire with others to file false claims against the United States Treasury will face significant penalties. My office is committed to working with the Internal Revenue Service to prosecute these cases, and I will seek incarceration wherever possible and appropriate.”
“Investigating identity theft and refund fraud is a priority for IRS Criminal Investigation,” said Akeia Conner, IRS Special Agent in Charge, Philadelphia Field Office. “Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers. Today’s plea signifies a surrendering to the resolve of IRS Criminal Investigation and the United States Attorney’s Office to combat and bring to justice those who dare to abuse our tax system and victimize our innocent taxpayers.”
This case is the result of an investigation conducted by the Internal Revenue Service Criminal Investigation, the United States Postal Inspection Service, and the Social Security Administration Office of the Inspector General. The case is being prosecuted by Assistant United States Attorney Lauren Paxton.
Defendant Convicted of Felon in PossessionRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces today that Janice Ford Green of Marion, Alabama was convicted by a federal jury of possession of a firearm by a felon. Green was indicted for knowingly possessing a 7mm magnum rifle as a convicted felon and firing it at law enforcement officials on or about April 17, 2013 in Marion, Alabama in the Southern District of Alabama, Northern Division. The statutory maximum penalty provided by law is 10 years imprisonment. Sentencing is set for January 8, 2014.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives in cooperation with the Alabama Attorney General’s Office and the Alabama Bureau of Investigation. The case was prosecuted by Special Assistant United States Sinan Kalayoglu, Assistant United States Attorney Greg Bordenkircher, and Assistant United States Attorney Maria Murphy for the United States Attorney’s Office in Mobile, Alabama.
Dawn Marie Menjivar Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on September 18, 2013, before U.S. District Judge Donald W. Molloy, DAWN MARIE MENJIVAR, a 37-year-old resident of Riverton, Wyoming, was sentenced to a term of:
- Prison: 27 months
- Special Assessment: $100
- Community Service: 200 hours
- Supervised Release: 5 years
MENJIVAR was sentenced in connection with her guilty plea to conspiracy to possess with intent to distribute and distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
In October of 2010, the FBI Safe Streets Task Force (BSSSTF) received information about a large scale methamphetamine distribution organization operating in Yellowstone County.
In the spring of 2011, law enforcement began performing electronic surveillance on C.M., an individual living in Billings. Investigators discovered that C.M., MENJIVAR and Armando Hernandez-Vaca began supplying the larger methamphetamine organization in late 2010 with methamphetamine after the prior source of supply had a run in with law enforcement. During the investigation law enforcement learned that Hernandez-Vaca delivered methamphetamine to C.M., his co-conspirator, MENJIVAR, and several other individuals from approximately April 2011 to October 2011. Hernandez-Vaca regularly transported two to three pounds of methamphetamine per trip during his involvement in the conspiracy.
In approximately July of 2011, C.M. was incarcerated on non-drug related charges. MENJIVAR took over the distribution of methamphetamine and collection of money for the organization. MENJIVAR stored methamphetamine, distributed methamphetamine, collected money owed for methamphetamine, and regularly kept C.M. informed of the organizations operations while he was incarcerated.
MENJIVAR is responsible for the possession with intent to distribute and the distribution of over 50 grams of a substance containing a detectable amount of methamphetamine in the Billings area.
Hernandez-Vaca pled guilty to conspiracy to possess with the intent to distribute and distribution of methamphetamine.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that MENJIVAR will likely serve all of the time imposed by the court. In the federal system, MENJIVAR 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 Billings Big Sky Safe Streets Task Force.