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19 November 2013
Phoenix, Arizona Man Faces Federal Child Sexual Exploitation Charges in New MexicoRead the Press Release
ALBUQUERQUE – Noah John Carney, 19, of Phoenix, Ariz., made his initial appearance in federal court in Las Cruces, N.M., on a criminal complaint charging him with enticing a minor to engage in explicit conduct and attempting to induce a minor to produce child pornography.
According to the criminal complaint, in Aug. 2013, a 13-year-old child (child victim) began “chatting” with Carney on her cellular telephone after meeting him through an Internet game. Carney allegedly told the child victim that he was a 19-year-old man and learned that the child victim was 13-years-old. Over the next two weeks, Carney allegedly asked the child victim to send him naked photos of herself. Carney also allegedly emailed a nude photo of himself to the child victim. The complaint further alleges that Carney instructed the child victim on how to access and view pornography on the Internet. Carney also allegedly inquired about meeting the child victim at hotels near her home for the purpose of engaging in sexual conduct.
According to the complaint, the FBI performed a search of the child victim’s cellular telephone and Kindle device, and found Carney’s nude photo and some of the “chats” between Carney and the child victim. In mid-Sept. 2013, the Albuquerque Police Department (APD) joined the FBI’s investigation and an APD officer assumed the child victim’s on-line identity and began communicating with Carney. During an Oct. 3, 2013 “chat,” Carney allegedly asked the officer who was posing as the child victim for a sexually explicit photo, and on the following day, Carney allegedly sent the officer a video of an adult engaged in sexually explicit conduct.
Carney was arrested in Phoenix by the FBI on Oct. 24, 2013, and was transferred to Las Cruces yesterday. If convicted on the charges in the complaint, Carney faces a federal prison sentence of not less than 25 years and not more than 50 years. If convicted, Carney also would be required to register as a sex offender. Carney faces enhanced penalties because he previously was convicted of a sex-related offense. Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Las Cruces office of the FBI and APD, and is being prosecuted by Special Assistant U.S. Attorney Anna Wright of the U.S. Attorney’s Las Cruces Branch Office. The case was filed as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Peruvian Woman Convicted of Running Sex Trafficking VentureRead the Press Release
ALEXANDRIA, Va. – Ruth Antuanet Miller, 35, originally from Peru but now a resident of Arlington, Va., pleaded guilty today to Conspiracy to Commit Sex Trafficking by Force, Fraud and Coercion.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, Scott R. Rittenberg, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement, Homeland Security Investigations in Washington, D.C., and Colonel Edwin C. Roessler, Jr., Fairfax County Chief of Police, made the announcement after the plea was accepted by United States District Judge Claude M. Hilton.
Miller faces a maximum penalty of life imprisonment when she is sentenced on March 28, 2014.
In a statement of facts filed with the plea agreement, Miller admitted that from May 2011 through July 2013, she was the leader of a venture that prostituted women, including illegal aliens, at various hotels and motels in Arlington, Alexandria, Falls Church, and Fairfax County, Virginia.
Miller coerced some of the women to prostitute by claiming that she had ties to U.S. immigration agencies and that she could have the victims removed from the United States if they refused. Miller coerced other women by claiming that she had ties with local law enforcement agencies and that the victims would be arrested if they did not perform commercial sex acts. One victim incurred a debt to Miller and Miller used a form of debt bondage to induce this victim to perform sex acts. Miller also claimed to be affiliated with a criminal street gang and implicitly threatened victims with harm if they failed to comply with Miller’s demands.
Miller allowed the victims to keep 50% of the money they earned from prostitution, while victims were required to pay Miller the other 50%. Although the prices varied over time, Miller typically instructed the women to charge $60 for 10 to 15 minutes of sex, $80 for 20 minutes, and $100 for one hour. Miller’s co-conspirators assisted her in operating the venture by doing such things as booking hotel rooms, helping her post advertisements on the Internet, transporting the victims, and collecting money from the victims. Miller admitted that she trafficked at least five victims.
This case was investigated by Homeland Security Investigations and the Fairfax County Police Department with the assistance of the Arlington County Police Department and the City of Falls Church Police Department. Assistant United States Attorneys Michael J. Frank and Inayat Delawala are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Owner of Local Tax Preparation Franchise Sentenced on Tax Conspiracy ChargesRead the Press Release
St. Louis, MO – JIMI CLARK, owner of a Mo' Money Tax franchise, was sentenced to 20 months in prison for falsely claiming educational tax credits on 47 returns. The American Opportunity Credit (AO Credit) allows certain taxpayers with educational expenses to take a refundable credit on their income taxes.
Jimi Clark supervised the preparation of tax returns at his franchise, addressed specific questions about returns as they arose, and generally supervised all preparers working in his franchise including his co-defendants, Justin Buford, Leslie Chaney, Ray Reed and Mary Taylor.
The defendants were trained on educational tax credits, including the American Opportunity Credit (AO Credit). Clark abused the AO Credit program at the Mo' Money franchise during the 2009 filing season to attract and keep clients. The office filed at least 47 returns with false and inflated AO Credit line items. On the vast majority of the line items on which AO Credits were claimed on the false returns, Clark and his preparers claimed exactly $3,765 in qualified education expenses. Out of 494 tax returns prepared for the 2009 tax year at Clark's franchise, more than half, 288 returns, claimed AO credits. On each of the 47 returns, the taxpayers did not incur the educational expenses claimed and were, therefore, not entitled to the AO credits. Defendants Chaney, Reed and Buford went so far as to false claim educational expenses on their personal 2009 returns. The tax loss to the United States on just the 47 returns exceeds $50,000. The tax loss for all 288 returns on which educational credits were claimed for the office in 2009 exceeds $300,000.
Sybil Smith, Special Agent in Charge of IRS Criminal Investigation said, "While most return preparers provide excellent service to their clients, a few unscrupulous tax preparers file false and fraudulent returns to defraud the government, the tax-paying public and their own clients."
Jimi Clark, Memphis, Tennessee, pled guilty in July to conspiracy to commit tax fraud and aiding and abetting the preparation of false tax returns. He appeared today before U.S. District Judge Audrey Fleissig. Co-defendant Mary Taylor, Memphis, TN, was also sentenced today to 6 months prison for her part in the scheme.
Co-defendants Justin Buford, Memphis, Tennessee; Leslie Chaney, St. Louis, Missouri; Mary Taylor, Memphis, Tennessee; and Ray Reed, of St. Louis, Missouri, previously pled guilty to related charges and have been sentenced.
This case was investigated by Internal Revenue Service Criminal Investigation. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney's Office.
Ohkay Owingeh Woman Pleads Guilty to Assaulting Tribal OfficerRead the Press Release
ALBUQUERQUE – Crystal Torres, 27, pleaded guilty this morning to an assault with a dangerous weapon charge under a plea agreement with the U.S. Attorney’s Office.
Torres, a member and resident of Ohkay Owingeh Pueblo, was arrested on Feb. 14, 2013, on an indictment charging her with (1) assaulting a woman with a hammer, and (2) assaulting a man with a knife. According to the indictment, both offenses occurred on Jan. 22, 2012, on Ohkay Owingeh Pueblo lands. Court filings reflect that the victim of the second assault was an officer of the Ohkay Owingeh Tribal Police Department.
This morning, Torres pled guilty to the second count of the indictment charging her with assault with a dangerous weapon, a knife. According to Torres’s plea agreement, on Jan. 22, 2012, tribal officers were dispatched to Torres’s residence on Ohkay Owingeh Pueblo. When the officers arrived, they observed Torres running towards a road and into traffic. When the victim attempted to catch Torres to get her out of the lane of traffic after three vehicles nearly struck her, Torres pulled out a hunting knife and advanced toward the victim, ignoring the victim’s commands that she drop the knife.
Under the terms of the plea agreement, Torres faces a sentence of 24 months in federal prison but retains the right to request a lower sentence. Torres remains on conditions of release pending her sentencing hearing, which has yet to be scheduled.
This case was investigated by the Northern Pueblos Agency of the BIA’s Office of Justice Services, and is being prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.
Ohio Men Indicted for Drug Trafficking in Harrison CountyRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
MARTINSBURG, WV – Two Chillicothe, Ohio, men were indicted by a federal grand jury today for conspiring to sell drugs in Harrison County earlier this month, and for using firearms in furtherance of the alleged drug distribution.
According to United States Attorney William J. Ihlenfeld, II, Dillon James BARILLARO, age 20, and Nicholas Stephen GARDNER, age 21, were charged with conspiring to distribute cocaine and heroin on November 4, 2013. Both men are alleged to have sold the drugs on that date to an informant near the Bridgeport Hampton Inn. Following the controlled purchase, a search of the room where the men were staying was conducted by officers from the Greater Harrison County Drug Task Force. Additional quantities of cocaine and heroin were found during the search, along with two firearms, ammunition, and $1,768 in United States Currency.
Both BARILLARO and GARDNER face charges of conspiracy to distribute drugs, the distribution of drugs, the possession of drugs with the intent to distribute, and maintaining a drug involved premise. BARILLARO faces one count of brandishing a firearm in connection with drug trafficking, and GARDNER is charged with possession of a firearm in connection with drug trafficking.
Both men face up to 20 years in prison on the drug charges. BARILLARO faces a minimum of 7 years in prison on the brandishing charge, consecutive to any other sentence he may receive. GARDNER faces a minimum of 5 years in prison on the gun possession charge, consecutive to any other sentence he may receive.
The case will be prosecuted by Assistant United States Attorney Shawn A. Morgan and was investigated by the Greater Harrison County Drug & Violent Crimes Task Force, consisting of officers and agents from the Clarksburg Police Department, the Bridgeport Police Department, the West Virginia State Police, and the Drug Enforcement Administration. Investigative support for the task force is provided by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the U.S. Marshals Service, and the U.S. Postal Inspection Service.
Both men are presumed innocent until and unless they are proven guilty.
Ohio Man Who Assaulted State Trooper Gets 35-year Federal Prison SentenceRead the Press Release
Defendant Robin Slater ran one of region’s largest-ever marijuana distribution conspiracies
HUNTINGTON, W.Va. – An Ohio drug dealer who assaulted a West Virginia state trooper during a January 2012 traffic stop was sentenced yesterday to 35 years in federal prison for a large-scale marijuana distribution conspiracy, announced U.S. Attorney Booth Goodwin. Robin Earl Slater, 51, of Langsville, Ohio, previously pleaded guilty in August to four federal charges: conspiracy to distribute 100 kilograms or more of marijuana; possession of firearms in furtherance of a marijuana conspiracy; being a convicted felon in possession of firearms; and obstruction of justice. The massive marijuana conspiracy was discovered in the traffic stop in which Slater attacked the state trooper. Slater’s sentence was handed down by Chief United States District Judge Robert C. Chambers in Huntington.
Slater’s sentence is the longest in recent memory in a marijuana conspiracy case in the Southern District of West Virginia. Slater conspired to distribute between 3,000 and 10,000 kilograms of marijuana by supplying the drug to lower-level dealers in Putnam and Kanawha counties, as well as out of state.
On January 23, 2012, a West Virginia state trooper followed Slater’s vehicle into a store parking lot in St. Albans, W.Va., after observing the defendant commit several moving violations. During the traffic stop, Slater, who had six firearms, nearly $25,000 cash, and drug ledgers in his car, made a violent attempt to flee. He bit the state trooper on the arm, inflicting a deep wound, and then pepper sprayed him. Police ultimately were able to restrain Slater and arrest him. The evidence that they recovered from his car allowed them to crack his distribution ring.U.S. Attorney Goodwin said, “Mr. Slater’s attack on a state trooper was a brazen and dangerous attempt to protect his drug enterprise. We’ve seen far too many law enforcement tragedies in situations like this: routine encounters that quickly turn violent.” Goodwin continued, “Law enforcement officers risk their lives every day to keep the rest of us safe. I will continue to spare no effort in prosecuting anyone who attacks them.”
Slater told police that the money he had was from individuals to whom he had supplied marijuana. Slater also admitted that he possessed firearms to protect himself and the proceeds of his drug activity.
The defendant had two prior felony drug convictions related to the distribution of marijuana.
Slater was released on bond from his initial state charges prior to being indicted on federal charges. In August 2012, Slater, while a fugitive on the federal charges, again attempted to flee a traffic stop, led police in Pulaski, Ky., on a high-speed chase over several miles, at one point nearly striking a police officer on the side of the road.Chief United States District Judge Robert C. Chambers said at sentencing that Slater was a “danger to law enforcement,” and further stated that the severe sentence was, in part, to punish Slater for putting law enforcement at risk – both when he initially assaulted a West Virginia state trooper and when he fled from police at high speeds in Kentucky.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
The West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Homeland Security Investigations and the Putnam County Sheriff’s Department conducted the investigation. Assistant United States Attorney Steven Loew handled the prosecution.
Nursing Home Operator to Pay $48 Million to Resolve Allegations <br /> That Six California Facilities Billed for Unnecessary TherapyRead the Press Release
The Ensign Group Inc., a skilled nursing provider based in Mission Viejo, Calif., that operates nursing homes across the western U.S. has agreed to pay $48 million to resolve allegations that it knowingly submitted to Medicare false claims for medically unnecessary rehabilitation therapy services, the Justice Department announced today. Six of Ensign’s skilled nursing facilities in California allegedly submitted the false claims: Atlantic Memorial Healthcare Center, located in Long Beach; Panorama Gardens, located in Panorama City; The Orchard Post-Acute Care (a.k.a. Royal Court), located in Whittier; Sea Cliff Healthcare Center, located in Huntington Beach; Southland, located in Norwalk; and Victoria Care Center, located in Ventura.
“Skilled nursing facilities that place their own financial interests above the needs of their patients will be held accountable,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “We will continue to advocate for the appropriate use of Medicare funds and the proper care of our senior citizens.”
Between January 1, 1999, and August 31, 2011, these six Ensign skilled nursing facilities allegedly submitted false claims to the government for physical, occupational and speech therapy services provided to Medicare beneficiaries that were not medically necessary. Specifically, Ensign provided therapy to patients whose conditions and diagnoses did not warrant it, solely to increase its reimbursement from Medicare. The government further alleged that Ensign created a corporate culture that improperly incentivized therapists and others to increase the amount of therapy provided to patients to meet planned targets for Medicare revenue. These targets were set without regard to patients’ individual therapy needs and could only be achieved by billing at the highest reimbursement levels. The government also alleged that Ensign billed for inflated amounts of therapy it had not provided and that certain patients were kept in these facilities for periods of time exceeding what was medically necessary for treatment of their conditions.“The case against The Ensign Group involves a company that regularly bilked Medicare by submitting inflated bills that, in some cases, sought money for services that simply were never provided to patients,” said U.S. Attorney for the Central District of California André Birotte Jr. “This settlement – one of the largest Medicare fraud cases against a nursing home chain in U.S. history – demonstrates our commitment to protecting taxpayers who fund important programs that benefit millions of Americans, but don’t want to see their hard-earned money wasted on fraud or abuse.”
In addition to paying the settlement amount, Ensign also agreed that each of its skilled nursing facilities across the nation would be bound by the terms of a Corporate Integrity Agreement with the Department of Health and Human Services Office of Inspector General (HHS-OIG).
"Billing Medicare for costly, unnecessary skilled nursing services -- as the government alleged here -- inflates health care costs borne by taxpayers," said Special Agent in Charge for the Los Angeles Region of the HHS-OIG Glenn R. Ferry. “This settlement again puts on notice those who would consider defrauding federally funded health care programs."
This civil settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered more than $16.7 billion through False Claims Act cases, with more than $11.9 billion of that amount recovered in cases involving fraud against federal health care programs.
The allegations settled today arose from lawsuits filed by two former Ensign therapists under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring suit on behalf of the government and to share in any recovery. The dollar amount that the whistleblowers in this case, Gloria Patterson and Carol Sanchez, will receive has not been determined. The lawsuits are captioned as United States of America ex rel. Gloria Patterson v. Ensign Group Inc., Case No. SACV 06-6956 CJC (ANx) (C.D. Calif.) and United States of America ex rel. Carol Sanchez v. Ensign Group Inc., Case No. SACV 06-0643 CJC (ANx) (C.D. Calif.).
The case was handled by the U.S. Attorney’s Office for the Central District of California, with assistance from the Commercial Litigation Branch, Civil Division, U.S. Department of Justice and the U.S. Department of Health and Human Services Office of Inspector General. This action was supported by the Elder Justice and Nursing Home Initiative, which coordinates the department’s activities combating elder abuse, neglect and financial exploitation, especially as they impact beneficiaries of Medicare, Medicaid and other federal health care programs.
The claims settled by this agreement are allegations only; there has been no determination of liability.Nursing Home Operator Agrees to Pay $48 Million to Resolve Allegations That Six SoCal Facilities Billed for Unnecessary TherapyRead the Press Release
LOS ANGELES – A Mission Viejo-based corporation that operates nursing homes across the western United States has agreed to pay $48 million to resolve allegations that it knowingly submitted inflated bills to Medicare for therapy services that were medically unnecessary or were never provided to elderly patients at six of its Southern California skilled nursing facilities.
The settlement comes in a case against The Ensign Group, Inc. that was unsealed late Monday by a federal judge in Los Angeles.
The Ensign Group operated skilled nursing facilities that allegedly submitted false claims to Medicare. Between January 1, 1999, and August 31, 2011, the six Ensign facilities allegedly submitted false claims to the government for physical, occupational and speech therapy services provided to Medicare beneficiaries that were not medically necessary. The government alleged that certain patients were kept in these facilities for periods of time that exceeded what was medically necessary for the treatment of their conditions.
The six Ensign facilities named in two federal “whistleblower” lawsuits are the Atlantic Memorial Healthcare Center in Long Beach, Panorama Gardens in Panorama City, Orchard Post Acute Care (commonly called Royal Court) in Whittier, Sea Cliff Healthcare Center in Huntington Beach, Southland in Norwalk, and Victoria Care Center in Ventura.
The lawsuit specifically alleged that Ensign improperly incentivized therapists and others to increase the amount of therapy provided to patients to meet planned targets for Medicare revenue, which were set without regard to patients' individual therapy needs and could only be achieved by billing at the highest reimbursement levels.
The six facilities also allegedly submitted claims for services that were not provided.
“The case against The Ensign Group involves a company that regularly bilked Medicare by submitting inflated bills that, in some cases, sought money for services that simply were never provided to patients,” said United States Attorney André Birotte Jr. “This settlement – one of the largest of its kind in United States history – demonstrates our commitment to protecting taxpayers who fund important programs that benefit millions of Americans, but don’t want to see their hard-earned money wasted on fraud or abuse.”
Glenn R. Ferry, Special Agent in Charge for the Los Angeles Region of the Office of Inspector General of the U.S. Department of Health and Human Services. “Billing Medicare for costly, unnecessary skilled nursing services – as the government alleged here – inflates health care costs borne by taxpayers,” said “This settlement again puts on notice those who would consider defrauding federally funded health care programs.”
Ensign has entered into a Corporate Integrity Agreement with the HHS Inspector General’s Office.
“Skilled nursing facilities that place their own financial interests above the needs of their patients will be held accountable,” said Assistant Attorney General for the Justice Department’s Civil Division, Stuart F. Delery. “We will continue to advocate for the appropriate use of Medicare funds and the proper care of our senior citizens.”
The settlement resolves lawsuits filed by two former Ensign employees under the qui tam, – or whistleblower – provisions of the False Claims Act, which allow private citizens to bring suit on behalf of the government and share in any recovery. It has yet to be determined how much money the whistleblowers in this case, Gloria Patterson and Carol Sanchez, will receive in United States of America ex rel. Gloria Patterson v. Ensign Group, Inc., SACV 06-6956-CJC (Central District of California) and United States of America ex rel. Carol Sanchez v. Ensign Group, Inc., SACV 06-0643-CJC (Central District of California).
The case was resolved by the United States Attorney’s Office, with assistance from the Commercial Litigation Branch, Civil Division, U.S. Department of Justice; and the U.S. Department of Health and Human Services’ Office of Inspector General.
In settling these cases, Ensign did not admit liability.
Release No. 13-131
Nevada Man Pleads Guilty to Assaulting Fort Hall Correction Center OfficerRead the Press Release
POCATELLO – Clayton Amos Lossing, 53, of McDermitt, Nevada, pleaded guilty today in United States District Court to the indictment charging him with one count of assaulting an officer, U.S. Attorney Wendy J. Olson announced. Lossing was indicted by a federal grand jury in Pocatello on July 23, 2013.
According to the plea agreement, on May 5, 2013, Lossing was arrested for intoxication by Fort Hall Police and transported to the Fort Hall Correction Center. During the booking process, Lossing kneed an officer in the groin, causing the officer significant pain requiring medical attention.
The charge of assault on an officer is punishable by up to eight years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Lossing is scheduled to be sentenced on January 29, 2014, before Chief U.S. District Judge B. Lynn Winmmill at the federal courthouse in Pocatello.
The case was investigated by the Fort Hall Police Department.
Murdo Man Sentenced for Possession of A Firearm by A Prohibited PersonRead the Press Release
United States Attorney Brendan V. Johnson announced that a Murdo, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on November 7, 2013, by U.S. District Judge Roberto A. Lange.
Shaun Sporrer, age 42, was sentenced to 30 months of imprisonment, 18 months of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Sporrer was indicted for the above charge by a federal grand jury on April 2, 2013. He pled guilty on August 13, 2013.
The conviction stems from an incident occurring on March 1, 2013, in which Sporrer pulled a revolver on a neighbor. Sporrer has previous domestic violence convictions, and as a result is prohibited from owning firearms.
The investigation was conducted by the Jones County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay P. Miller prosecuted the case.
Sporrer was immediately turned over to the custody of the U.S. Marshals Service.
Mexican National Sentenced to 48 Months in Prison for Part in Drug Distribution ConspiracyRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that Joel Sotomayer Cervantes, 36, of Mexico, was sentenced by U.S. District Judge Richard T. Haik, to 48 months in prison and three years of supervised release for conspiracy to possess with intent to distribute cocaine and heroin. The defendant pleaded guilty to charges on April 24, 2013.
According to evidence presented at the guilty plea, from January 1, 2008 until March 1, 2011, Joel Cervantes along with Jesus Silverio Cervantes, Ramon Gaudalupe Aldama-Rodriguez, Jose Manuel Mojica-Echeverria, Turon Ajure Leduff, Nora Myriam Monge, and Rene Omar Monge conspired to distribute more than one kilogram of heroin and possessed with intent to distribute more than five kilograms of cocaine. Jesus Cervantes ran the cocaine and heroin trafficking organization from an Abbeville residence that Joel Cervantes owned. The drugs were distributed in the Acadiana and Baton Rouge areas.
The defendant was arrested as part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The Drug Enforcement Administration, the Baton Rouge Police Department, and the Vermillion Parish Sheriff’s Office participated in this OCDETF investigation. Assistant U.S. Attorney Brett L. Grayson prosecuted the case.
The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Maryland Man Sentenced to 11 ½ Years in Prison for 2012 Shooting in Southeast Washington-He and Another Man Targeted Victims, Who Were in A Car-Read the Press Release
WASHINGTON - Delonte Smith, 20, of Capitol Heights, Md., was sentenced today to a prison term of 11 ½ years on charges stemming from a shooting that took place last year in Southeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Smith, also known as “Unc,” was found guilty in July 2013 in the Superior Court of the District of Columbia of one count of conspiracy to commit a crime of violence, two counts of assault with a dangerous weapon, two counts of possession of a firearm during a crime of violence, and two counts of simple assault. The verdicts followed a two-week trial. Smith was sentenced by the Honorable Heidi M. Pasichow. Upon completion of his prison term, he will be placed on three years of supervised release.
According to the government’s evidence, at about 7:30 p.m. on Dec. 11, 2012, Smith approached a vehicle that was parked in the 5000 block of H Street SE and told the man in the driver’s seat, Christopher Ballard, to get out. When Mr. Ballard refused, Smith tried to open the car door, which was locked. He then walked around the vehicle to the passenger’s side and told the woman in the front passenger’s seat to get out of the car.
In the meantime, Smith’s best friend and accomplice, Jeffrey Ray Tyson, 20, also known as “Baby Boy,” approached the driver’s side door and produced a handgun. Tyson tapped several times on the driver’s side window with the handgun and ordered Mr. Ballard out of the car. Mr. Ballard refused, put the car into drive, and attempted to drive away from the area. Tyson fired six shots at the vehicle, at least two of which hit the car. Although neither of the people in the car was hit, the two rounds that struck the vehicle were in the direction of the driver’s head. The car’s occupants flagged down patrol officers just a few blocks away.
Tyson died as the result of a homicide five days later, in an unrelated incident.
In a related matter, Smith’s brother, Antoine Mayhand, 28, was sentenced Nov. 15, 2013 to a five-year prison term for obstruction of justice. According to the government’s evidence, on May 28, 2013, Mayhand confronted Mr. Ballard in Southeast Washington and stated, “I should put a knife on you and stab you.” Mr. Ballard called 911 and got away unharmed. Mayhand was arrested on the day of the threat and has been in custody ever since.
On July 8, 2013, less than 48 hours before he was scheduled to testify in the trial against Smith, Mr. Ballard, 38, was murdered in Southeast Washington. The murder of Mr. Ballard remains under investigation and no arrests have been made.
In announcing the sentence, U.S. Attorney Machen expressed appreciation for the work of the Metropolitan Police Department (MPD) which investigated the case. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Antoinette Sakamsa and Tony Griffith; Litigation Technology Specialists Leif Hickling and Claudia Gutierrez; Victim/Witness Advocate Jim Brennan, Victim/Witness Supervisor Michael Hailey, Victim/Witness Security Specialist Tanya Via, and Victim/Witness Services Coordinator David Foster. Finally, he praised the work of Assistant U.S. Attorney Richard E. DiZinno, who prosecuted the case.
13-399Man from Mexico Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Brendan V. Johnson announced that a man from Mexico convicted of Conspiracy to Distribute of a Controlled Substance was sentenced on November 15, 2013, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Lorenzo Camacho Tarango a/k/a "Lencho", a/k/a "Lecho", age 43, was sentenced to 120 months of imprisonment, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
The charge relates to Tarango conspiring with Abraham Romero and others to distribute at least 500 grams or more of methamphetamine in the District of South Dakota between 2010 and 2012. Tarango would deliver methamphetamine to Romero, and Romero would then engage in further distribution within the state. Tarango pled guilty to the charge on July 23, 2013.
This case was investigated by the Federal Bureau of Investigation, Northern Plains Safe Trails Drug Enforcement Task Force, South Dakota Division of Criminal Investigation, and the Bureau of Indian Affairs Office of Justice Services. Assistant U.S. Attorney Ted L. McBride prosecuted the case.
Tarango remains in the custody of the U.S. Marshals Service.
Lumberton Man Sentenced for Violation of Clean Air ActRead the Press Release
Gene Cornell Smith, 46, of Lumberton, New Jersey, was sentenced today to 42 months in prison for violating the Clean Air Act. Smith bought a warehouse, in the Logan section of Philadelphia, and got a quote for the cost of removing asbestos from the site. Instead of paying to remove or stabilize the asbestos-containing material, Smith enlisted his co-conspirator, Clarence Cole, to hire unqualified day laborers, who ripped out the asbestos illegally, without taking the precautions, required by federal regulations, to keep asbestos out of the air. Smith and Cole did not provide any safety equipment to the workers. When a conscientious citizen tipped off the Asbestos Control Unit of the City Public Health Department's Air Management Services, city inspectors ordered all work to stop. Instead of closing up the site, however, and hiring a qualified contractor to remediate the building as he was ordered to do, Smith continued to dispose of asbestos-containing material illegally, and to allow emission of asbestos to the outside air. Eventually, Superfund money had to be used to clean the contamination caused by the illegal work Smith and Cole had ordered.
"These defendants knowingly removed asbestos-containing materials illegally, putting workers and the general public at great risk," said David G. McLeod, Jr., Special Agent in Charge of EPA's criminal enforcement program for the Middle Atlantic States. "The real victims in this case are neighboring residents who have no way to protect themselves against this type of environmental crime. EPA continues to work with our local, state and federal partners to vigorously prosecute those who place personal gain ahead of public health."
A representative from Philadelphia Air Management Services stated, "The convictions of Gene Cornell Smith and Clarence Cole arose from their decision, made knowingly, to abate and remove dangerous asbestos material in clear violation of the law. This matter was first investigated and reported to the EPA by the City of Philadelphia Air Management Services. We are grateful that with the assistance of the Philadelphia U.S. Attorney's Office and EPA Region 3, this matter has been brought to a satisfactory conclusion."
Smith was convicted of conspiracy, and five counts of violating the Clean Air Act after a jury trial, in January 2013. Cole pled guilty in January 2013, and was sentenced to 24 months in prison in June.
In addition to the prison term, Judge Cynthia M. Rufe also ordered the defendants to serve three years of supervised release, and to pay restitution of $451,936.80
The case was investigated by the Criminal Investigation Division of the Environmental Protection Agency, and was prosecuted by Assistant United States Attorney Elizabeth Abrams and Special Assistant United States Attorney Thomas Moshang III.
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Kinloch, Missouri, Fire Protection District Chief Sentenced for Federal Fraud ChargesRead the Press Release
St. Louis, MO – The Fire Chief for the Kinloch Fire Protection District, DARRAN KELLEY, was sentenced to 33 months in prison and ordered to pay $259,738 restitution. He was sentenced on charges involving his unauthorized use of more than $140,000 of District funds from January 2007 to January 11, 2013, as well as charges that he made false statements about his receipt of Social Security disability payments, which resulted in overpayments to him of approximately $120,000. Kelley has been the District Fire Chief since 2002.
According to court documents, the Kinloch Fire Protection District maintained a District banking account for the receipt and disbursement of District funds. From January 2007 through January 2013, the District received approximately $160,361 in tax revenues from St. Louis County, Missouri. The City of Kinloch also distributed city funds to the District's bank account for payroll and operations of the District. It was a part of Kelley's scheme that he made unauthorized cash withdrawals from the District's bank account for his own personal use, including for the purchase of various personal items and for gambling at several casinos in the St. Louis area, that were unrelated to the legitimate operations of the District. It was a further part of Kelley's scheme that he made unauthorized transfers of funds from the District's bank account to pay for charges on his own personal Mastercard credit card, which were unrelated to the legitimate operations of the District. Further, Kelley stole and embezzled a portion of the funds received by the District in June 2010 from the Federal Emergency Management Agency (FEMA), which awarded the District a grant to cover 95% of the $250,000 total cost of a fire engine. Additionally, Kelley stole and embezzled funds which were donated to the District by concerned citizens who made the donations to assist the District in paying for its operations.
While Kelley engaged in the theft and embezzlement of District funds, there were substantial outstanding bills from AmerenUE for electric service, American Water for water service, to AT&T for telephone and communications services, and to North Central County Fire Alarm System for dispatch services, radios and pagers. Many of these bills went unpaid as a result of his criminal conduct and some of the necessary services were reduced or cut off due to non-payment.
Beginning on August 15, 2000, Kelley began receiving monthly disability benefit payments through the Social Security Administration pursuant to his application for benefits relative to a personal medical condition. Following his initial application, and in order for the Social Security Administration to determine his continued eligibility for disability benefits, he was required to immediately report any work and income, and to periodically verify his continued disability and report any work on Continuing Disability Review Reports. Kelley failed to truthfully report his work for the Kinloch Fire Protection District, and his income from that work to the Social Security Administration. On July 26, 2011, Kelley made a false statement on his Continuing Disability Review Report by stating that he had not worked since April 1, 2006, the date of his last medical disability decision, when in fact, he had been working as the paid Chief of the Kinloch Fire Protection District during that period of time. Kelley was paid a salary of approximately $640 every two weeks until December, 2011.
Kelley, Ferguson, MO, pled guilty in July to three felony counts of wire fraud, one felony count of federal program theft and one felony count of making false statements. He appeared today for sentencing before United States District Judge Catherine D. Perry.
This case was investigated by the Federal Bureau of Investigation, the Social Security Administration Office of Inspector General and the St. Louis County Police Department. Assistant United States Attorney Hal Goldsmith handled the case for the U.S. Attorney's Office.
Kennewick Man Sentenced to Twelve Years in Federal Prison for Distribution of Child PornographyRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Brandon Gregory Wilder, age 21, of Kennewick, Washington, was sentenced after having previously pleaded guilty on July 23, 2013 to Distribution of Child Pornography. United States District Court Judge Edward F. Shea sentenced Wilder to a twelve year term of imprisonment, to be followed by a life term of court supervision after he is released from Federal prison.
According to information disclosed during the court proceedings, in March of 2012, the United States Secret Service conducted an online undercover investigation to identity those possessing and distributing child pornography on the Internet using peer to peer file sharing software. As a result of the investigation, on April 5, 2012, Secret Service agents executed a search warrant at Wilder's residence and located his computer, which was found to contain 237 videos and 64 still images of child pornography. Some of the videos depicted minors in bondage, and a number of the child pornography images were of children under the age of 12 years.
Michael C. Ormsby said, "The sentence imposed in this case reflects how serious the crime of distributing child pornography truly is. The United States Attorney's Office in the Eastern District of Washington continues to prioritize the investigation and prosecution of child pornography crimes. I commend the United States Secret Service agents who aggressively investigated this case."
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative ("PSC") has five major components:
- Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue child victims;
- Participation of PSC partners in coordinated national initiatives;
- Increased federal enforcement in child pornography and enticement cases;
- Training of federal, state, and local law enforcement agents; and
- Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources".
This investigation was conducted the United States Secret Service. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and PSC Coordinator for the Eastern District of Washington.
CR-13-6008-EFS
Kankakee Man to Serve More Than 15 Years in Federal Prison for Attempted Bank Robbery and Possession of A Firearm by A FelonRead the Press Release
URBANA, Ill. -- A Kankakee man who admitted that he attempted to rob two Kankakee banks in the fall of 2012 has been sentenced. On Nov. 14, 2013, U.S. District Judge Michael P. McCuskey ordered Nevin L. Lenton, 26, to serve 188 months in federal prison (15 years, 8 months). On Jul. 9, 2013, Lenton entered pleas of guilty to the three counts against him: attempted bank robbery, attempted aggravated bank robbery, and possession of a firearm by a felon. Lenton has been in the custody of the U.S. Marshals Service since his arrest in October 2012.
According to court documents, Lenton admitted that he entered Peoples Bank in Kankakee, with a bandana around his face, on Sept. 17, 2012, and appeared to be brandishing a firearm. Lenton slipped and fell when he entered the bank, and when a bank security guard appeared and drew his service weapon, Lenton dropped the firearm and fled. The firearm was later determined to be a pellet gun.
A month later, on Oct. 22, 2012, Lenton told an unnamed individual that he planned to rob a bank in Kankakee. The next day, Lenton drove the individual to the residence of a Kankakee police officer and said that he had gone to the home earlier to break in and steal a firearm; however, because a light was on inside the house, he believed someone was home and he did not break in. Lenton then drove to Mainsource Bank in Kankakee and told the individual in detail how he planned to rob the bank.
When the individual reported Lenton’s plans to law enforcement, officers were able to introduce an undercover officer to Lenton. At Lenton’s request, the undercover officer met Lenton in Chicago on Oct. 25, 2012, and provided Lenton with two firearms. The undercover officer then agreed to accompany Lenton to Kankakee to assist with the robbery of Mainsource Bank. Once Lenton and the undercover officer arrived and parked within one block of the bank, officers arrested Lenton. At the time Lenton possessed the firearms, he had at least three prior felony convictions, including two burglary convictions and a robbery conviction.
The case was investigated by the Kankakee Area Project Safe Neighborhoods Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Kankakee Police Department. The case was prosecuted by Assistant U.S. Attorney Eugene L. Miller.
Justice Department, Federal and State Partners Secure Record $13 Billion Global Settlement with JPMorgan for Misleading Investors About Securities Containing Toxic MortgagesRead the Press Release
*CORRECTION: The release below previously stated that New York is receiving $613.8 million in this settlement, however, the number is $613.0 million. This correction notice was posted on Nov. 20, 2013.*
The Justice Department, along with federal and state partners, today announced a $13 billion settlement with JPMorgan - the largest settlement with a single entity in American history - to resolve federal and state civil claims arising out of the packaging, marketing, sale and issuance of residential mortgage-backed securities (RMBS) by JPMorgan, Bear Stearns and Washington Mutual prior to Jan. 1, 2009. As part of the settlement, JPMorgan acknowledged it made serious misrepresentations to the public - including the investing public - about numerous RMBS transactions. The resolution also requires JPMorgan to provide much needed relief to underwater homeowners and potential homebuyers, including those in distressed areas of the country. The settlement does not absolve JPMorgan or its employees from facing any possible criminal charges.
This settlement is part of the ongoing efforts of President Obama’s Financial Fraud Enforcement Task Force’s RMBS Working Group.
“Without a doubt, the conduct uncovered in this investigation helped sow the seeds of the mortgage meltdown,” said Attorney General Eric Holder. “JPMorgan was not the only financial institution during this period to knowingly bundle toxic loans and sell them to unsuspecting investors, but that is no excuse for the firm’s behavior. The size and scope of this resolution should send a clear signal that the Justice Department’s financial fraud investigations are far from over. No firm, no matter how profitable, is above the law, and the passage of time is no shield from accountability. I want to personally thank the RMBS Working Group for its tireless work not only in this case, but also in the investigations that remain ongoing.”
The settlement includes a statement of facts, in which JPMorgan acknowledges that it regularly represented to RMBS investors that the mortgage loans in various securities complied with underwriting guidelines. Contrary to those representations, as the statement of facts explains, on a number of different occasions, JPMorgan employees knew that the loans in question did not comply with those guidelines and were not otherwise appropriate for securitization, but they allowed the loans to be securitized – and those securities to be sold – without disclosing this information to investors. This conduct, along with similar conduct by other banks that bundled toxic loans into securities and misled investors who purchased those securities, contributed to the financial crisis.
“Through this $13 billion resolution, we are demanding accountability and requiring remediation from those who helped create a financial storm that devastated millions of Americans,” said Associate Attorney General Tony West. “The conduct JPMorgan has acknowledged - packaging risky home loans into securities, then selling them without disclosing their low quality to investors - contributed to the wreckage of the financial crisis. By requiring JPMorgan both to pay the largest FIRREA penalty in history and provide needed consumer relief to areas hardest hit by the financial crisis, we rectify some of that harm today.”Of the record-breaking $13 billion resolution, $9 billion will be paid to settle federal and state civil claims by various entities related to RMBS. Of that $9 billion, JPMorgan will pay $2 billion as a civil penalty to settle the Justice Department claims under the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA), $1.4 billion to settle federal and state securities claims by the National Credit Union Administration (NCUA), $515.4 million to settle federal and state securities claims by the Federal Deposit Insurance Corporation (FDIC), $4 billion to settle federal and state claims by the Federal Housing Finance Agency (FHFA), $298.9 million to settle claims by the State of California, $19.7 million to settle claims by the State of Delaware, $100 million to settle claims by the State of Illinois, $34.4 million to settle claims by the Commonwealth of Massachusetts, and $613 million to settle claims by the State of New York.
JPMorgan will pay out the remaining $4 billion in the form of relief to aid consumers harmed by the unlawful conduct of JPMorgan, Bear Stearns and Washington Mutual. That relief will take various forms, including principal forgiveness, loan modification, targeted originations and efforts to reduce blight. An independent monitor will be appointed to determine whether JPMorgan is satisfying its obligations. If JPMorgan fails to live up to its agreement by Dec. 31, 2017, it must pay liquidated damages in the amount of the shortfall to NeighborWorks America, a non-profit organization and leader in providing affordable housing and facilitating community development.
The U.S. Attorney’s Offices for the Eastern District of California and Eastern District of Pennsylvania and the Justice Department’s Civil Division, along with the U.S. Attorney’s Office for the Northern District of Texas, conducted investigations into JPMorgan’s, Washington Mutual’s and Bear Stearns’ practices related to the sale and issuance of RMBS between 2005 and 2008.
“Today’s global settlement underscores the power of FIRREA and other civil enforcement tools for combatting financial fraud,” said Assistant Attorney General for the Civil Division Stuart F. Delery, co-chair of the RMBS Working Group. “The Civil Division, working with the U.S. Attorney’s Offices and our state and agency partners, will continue to use every available resource to aggressively pursue those responsible for the financial crisis.”
“Abuses in the mortgage-backed securities industry helped turn a crisis in the housing market into an international financial crisis,” said U.S. Attorney for the Eastern District of California Benjamin Wagner. “The impacts were staggering. JPMorgan sold securities knowing that many of the loans backing those certificates were toxic. Credit unions, banks and other investor victims across the country, including many in the Eastern District of California, continue to struggle with losses they suffered as a result. In the Eastern District of California, we have worked hard to prosecute fraud in the mortgage industry. We are equally committed to holding accountable those in the securities industry who profited through the sale of defective mortgages.”
“Today's settlement represents another significant step towards holding accountable those banks which exploited the residential mortgage-backed securities market and harmed numerous individuals and entities in the process,” said U.S. Attorney for the Eastern District of Pennsylvania Zane David Memeger. “These banks packaged and sold toxic mortgage-backed securities, which violated the law and contributed to the financial crisis. It is particularly important that JPMorgan, after assuming the significant assets of Washington Mutual Bank, is now also held responsible for the unscrupulous and deceptive conduct of Washington Mutual, one of the biggest players in the mortgage-backed securities market.”This settlement resolves only civil claims arising out of the RMBS packaged, marketed, sold and issued by JPMorgan, Bear Stearns and Washington Mutual. The agreement does not release individuals from civil charges, nor does it release JPMorgan or any individuals from potential criminal prosecution. In addition, as part of the settlement, JPMorgan has pledged to fully cooperate in investigations related to the conduct covered by the agreement.
To keep JPMorgan from seeking reimbursement from the federal government for any money it pays pursuant to this resolution, the Justice Department required language in the settlement agreement which prohibits JPMorgan from demanding indemnification from the FDIC, both in its capacity as a corporate entity and as the receiver for Washington Mutual.
“The settlement announced today will provide a significant recovery for six FDIC receiverships. It also fully protects the FDIC from indemnification claims out of this settlement,” said FDIC Chairman Martin J. Gruenberg. “The FDIC will continue to pursue litigation where necessary in order to recover as much as possible for FDIC receiverships, money that is ultimately returned to the Deposit Insurance Fund, uninsured depositors and creditors of failed banks.”
“NCUA’s Board extends our thanks and appreciation to our attorneys and to the Department of Justice, who have worked closely together for more than three years to bring this matter to a successful resolution,” said NCUA Board Chairman Debbie Matz. “The faulty mortgage-backed securities created and packaged by JPMorgan and other institutions created a crisis in the credit union industry, and we’re pleased a measure of accountability has been reached.”
“JPMorgan and the banks it bought securitized billions of dollars of defective mortgages,” said Acting FHFA Inspector General Michael P. Stephens. “Investors, including Fannie Mae and Freddie Mac, suffered enormous losses by purchasing RMBS from JPMorgan, Washington Mutual and Bear Stearns not knowing about those defects. Today’s settlement is a significant, but by no means final step by FHFA-OIG and its law enforcement partners to hold accountable those who committed acts of fraud and deceit. We are proud to have worked with the Department of Justice, the U.S. attorneys in Sacramento and Philadelphia and the New York and California state attorneys general; they have been great partners and we look forward to our continued work together.”
The attorneys general of New York, California, Delaware, Illinois and Massachusetts also conducted related investigations that were critical to bringing about this settlement.
“Since my first day in office, I have insisted that there must be accountability for the misconduct that led to the crash of the housing market and the collapse of the American economy,” said New York Attorney General Eric Schneiderman, Co-Chair of the RMBS Working Group. “This historic deal, which will bring long overdue relief to homeowners around the country and across New York, is exactly what our working group was created to do. We refused to allow systemic frauds that harmed so many New York homeowners and investors to simply be forgotten, and as a result we’ve won a major victory today in the fight to hold those who caused the financial crisis accountable.”
“JP Morgan Chase profited by giving California’s pension funds incomplete information about mortgage investments,” California Attorney General Kamala D. Harris said. “This settlement returns the money to California’s pension funds that JP Morgan wrongfully took from them.”
“Our financial system only works when everyone plays by the rules,” said Delaware Attorney General Beau Biden. “Today, as a result of our coordinated investigations, we are holding accountable one of the financial institutions that, by breaking those rules, helped cause the economic crisis that brought our nation to its knees. Even as the American people recover from this crisis, we will continue to seek accountability on their behalf.”
“We are still cleaning up the mess that Wall Street made with its reckless investment schemes and fraudulent conduct,” said Illinois Attorney General Lisa Madigan. “Today’s settlement with JPMorgan will assist Illinois in recovering its losses from the dangerous and deceptive securities that put our economy on the path to destruction.”
“This is a historic settlement that will help us to hold accountable those investment banks that played a role in creating and exacerbating the housing crisis,” said Massachusetts Attorney General Martha Coakley. “We appreciate the work of the Department of Justice and the other enforcement agencies in bringing about this resolution and look forward to continuing to work together in other securitization cases.”
The RMBS Working Group is a federal and state law enforcement effort focused on investigating fraud and abuse in the RMBS market that helped lead to the 2008 financial crisis. The RMBS Working Group brings together more than 200 attorneys, investigators, analysts and staff from dozens of state and federal agencies including the Department of Justice, 10 U.S. attorney’s offices, the FBI, the Securities and Exchange Commission (SEC), the Department of Housing and Urban Development (HUD), HUD’s Office of Inspector General, the FHFA-OIG, the Office of the Special Inspector General for the Troubled Asset Relief Program, the Federal Reserve Board’s Office of Inspector General, the Recovery Accountability and Transparency Board, the Financial Crimes Enforcement Network, and more than 10 state attorneys general offices around the country.
The RMBS Working Group is led by five co-chairs: Assistant Attorney General for the Civil Division Stuart Delery, Acting Assistant Attorney General for the Criminal Division Mythili Raman, Co-Director of the SEC’s Division of Enforcement George Canellos, U.S. Attorney for the District of Colorado John Walsh and New York Attorney General Eric Schneiderman.
Learn more about the RMBS Working Group and the Financial Fraud Enforcement Task Force at: www.stopfraud.gov.
Related Materials:
JPMorgan Settlement Agreement
Annex 1: Statement of Facts
Annex 2: Consumer Relief
Annex 3: List of RMBS covered by the settlement
Exhibit A: Claims resolved by the State of New York
Exhibit B: Claims resolved by the Federal Housing Finance Agency
Exhibit C: Claims resolved by the National Credit Union Administration
Exhibit D: Claims resolved by the Federal Deposit Insurance CorporationJury Convicts San Francisco Man of AssaultRead the Press Release
OAKLAND – Yesterday, a federal jury convicted Antonio Chavez of assaulting a private security guard who was assisting a federal officer, United States Attorney Melinda Haag announced.
The jury found that on December 8, 2012, Chavez assaulted a security guard who was protecting the Ronald V. Dellums Federal Building at 1301 Clay Street in Oakland, after the guard went to investigate apparent vandalism of the building. The guilty verdict followed a 4-day jury trial before The Honorable Phyllis J. Hamilton, United States District Court Judge.
Evidence at trial showed that on December 8, 2012, at about 3 a.m., private security guards noticed on surveillance video a group of six or seven people vandalizing the guard house next to the federal building on the corner of 12th Street and Jefferson Street in Oakland. One of the guards went to the guard house to investigate the vandalism. With the exception of two people, the group dispersed as the guard approached the guard house. As the guard continued his investigation, one of the individuals who remained at the guard house attempted to grab the guard’s flashlight, and a struggle ensued. During that struggle, Chavez attacked the guard with an electric stun gun, striking the guard in the neck and chest and knocking him to the ground. Chavez later brandished and activated the stun gun while threatening the security guard. Chavez was ultimately apprehended later that night by the Oakland Police Department.
Chavez, 21, of San Francisco, was charged by criminal complaint on February 12, 2013, and was indicted by a federal grand jury on February 21, 2013. Chavez was remanded into custody following his conviction.
Chavez’s sentencing hearing is scheduled for February 26, 2014, before Judge Hamilton, in Oakland. The maximum statutory penalties for a violation of 18 U.S.C. § 111(a)(1) and (b) are a prison term of 20 years, a fine of $250,000, and 3 years of supervised release. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Brian C. Lewis and Special Assistant United States Attorney Manish Kumar prosecuted this case with the assistance of Janice Pagsanjan and Noble Hughes. This prosecution is the result of an investigation by the Federal Protective Service, the Oakland Police Department, and the Federal Bureau of Investigation.
(Chavez indictment )
Jacksonville Man Sentenced to 5 Years in Federal Prison for Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan today sentenced Dwaine Charles Idleman (66, Jacksonville) to 5 years in prison for receiving child pornography over the Internet. Idleman was also ordered to serve a 5-year term of supervised release, following his incarceration, and to register as a sex offender.
According to court documents, an agent with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) began an undercover operation to identify persons using the Internet to receive and share child pornography. The agent identified a host computer using a particular Internet Protocol (IP) address that was sharing images of child pornography on a file sharing network. Further investigation revealed that the subscriber for this IP address was Dwaine C. Idleman, located at a residence in Jacksonville, Florida.
In June 2012, HSI agents and other law enforcement officers executed a federal search warrant at Idleman’s residence. During an interview, Idleman stated, among other things, that he had come across pornography sites with people that were too young but that he got out of it. When told that the agents knew that he was downloading child pornography files into his residence and that he was sharing it back out of the residence, Idleman stated, I know I got a problem and if this escalates into an arrest, my life is over. Idleman further stated that he would type in certain keyword searches and usually downloaded files from the file sharing program when he was alone in his home.
A subsequent forensic analysis of Idleman’s laptop computer revealed that it contained at least four images and one video depicting child pornography, along with other files containing titles indicative of child pornography. The analysis also showed that several videos were downloaded by Idleman using the file sharing program on the morning of June 28, 2012, just before the arrival of the HSI agents.
This case was investigated by ICE-HSI and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney D. Rodney Brown.It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Hogsett Presents United States Attorney Award to Federal, Local Law EnforcementRead the Press Release
NEW ALBANY – Joseph H. Hogsett, the United States Attorney, was in Floyd County today to acknowledge the presentation of a U.S. Attorney Award to a number of local and federal law enforcement officers. Joined by Sheriff Darrell Mills, Hogsett applauded the significant impact that federal-local collaboration has had in Southern Indiana. Those receiving awards today included: • Mark Slaughter, Task Force Officer with the Floyd County Sheriff’s Department
• Todd Combs, Washington County Drug Task Force
• Dave Mitchell, Indiana State Police
• Brendan Cryan, Drug Enforcement Administration
• Charley Scarber, Bureau of Alcohol, Tobacco, Firearms and Explosives
• John O’Boyle, Bureau of Alcohol, Tobacco, Firearms and Explosives
• Jan DeLancey, Internal Revenue Service
• William Birkofer, U.S. Department of Homeland SecurityThese individuals are being recognized for their roles in the investigation and prosecution of the Hermion Torres and Freddie Joe Taylor drug and gun trafficking organizations, which were responsible for the import and distribution of large amounts of marijuana, cocaine and methamphetamine throughout Southern Indiana and Kentucky. The investigation ultimately revealed a network of gun straw purchasers who obtained firearms for Torres in Indiana, which were later traded to the Mexico-based Gulf Cartel, an international criminal organization.
Hogsett said that these federal and state law enforcement partners used a variety of investigative techniques to bring those behind the criminal organizations to justice. As a result of these prosecutions, the flow of drugs and guns into Indiana was halted.
"The work of these officers and agents on this case is an example of law enforcement at its best," Hogsett said. "This was a complicated case with many moving parts, but the selfless dedication and tireless work of our partners in Southern Indiana helped ensure that these criminals won’t terrorize this area ever again."
The United States Attorney Award was established in 2003 to recognize outstanding law enforcement work in Hoosier communities as part of federal investigations and prosecutions. Just twenty total awards were awarded in 2013, and the Floyd County and Washington County Sheriff's Departments were two of only six local law enforcement agencies to be recognized.
Hogsett Presents Floyd County Law Enforcement with Grant of More Than $12,000Read the Press Release
NEW ALBANY – Joseph H. Hogsett, the United States Attorney, presented Floyd County law enforcement with a check for $12,011 this morning as part of the Edward Byrne Memorial Justice Assistance Grant Program. The award was accepted by Floyd County Sheriff Darrell Mills.
"Law enforcement here in Floyd County and across the state is tireless in their work to keep the Southern Indiana area safe and secure," Hogsett said. "But in these tight fiscal times, we should all welcome any opportunity to return federal dollars back in this community to make these efforts even stronger."
Hogsett said the Edward Byrne Memorial Justice Assistance Grant is a federal program designed to support local law enforcement programs across the country. Administered by the Department of Justice, the Byrne Grants are intended to be flexible enough to allow municipalities to prevent and control crime based on their local needs and conditions. Among other things, grant funds can be used for new initiatives, technical assistance, training, personnel, equipment, supplies, and many other purposes.
"Combating drug trafficking and violent crime is a team sport, and it takes all of us working together to be successful," Hogsett added. "I am happy to be in New Albany to present this award today, and I look forward to continuing our collaborative work toward a safer city, a safer county, and a safer state."
Hogsett Presents City of Jeffersonville with A Law Enforcement Grant of More Than $40,000Read the Press Release
JEFFERSONVILLE – Joseph H. Hogsett, the United States Attorney, presented City of Jeffersonville law enforcement with a check for $40,257 this morning as part of the Edward Byrne Memorial Justice Assistance Grant Program. The award was accepted by Jeffersonville Mayor Mike Moore and Police Chief Chris Grimm.
"Your law enforcement officers here in Jeffersonville are tireless in their work to keep the Southern Indiana area safe and secure," Hogsett said. "But in these tight fiscal times, we should all welcome any opportunity to return federal dollars back in this community to make these efforts even stronger."
Hogsett said the Edward Byrne Memorial Justice Assistance Grant is a federal program designed to support local law enforcement programs across the country. Administered by the Department of Justice, the Byrne Grants are intended to be flexible enough to allow municipalities to prevent and control crime based on their local needs and conditions. Among other things, grant funds can be used for new initiatives, technical assistance, training, personnel, equipment, supplies, and many other purposes.
"Combating drug trafficking and violent crime is a team sport, and it takes all of us working together to be successful," Hogsett added. "I am happy to be in Jeffersonville to present this award today, and I look forward to continuing our collaborative work toward a safer city, a safer county, and a safer state."
FreshPoint Inc. to Pay $4.2 Million for Overbilling the Department of Defense for ProduceRead the Press Release
The Justice Department announced today that FreshPoint Inc., a Houston, Texas-based food distribution company and wholly owned subsidiary of Sysco Corp., has agreed to pay $4.2 million to resolve allegations that it overcharged the Department of Defense for fresh fruit and vegetables purchased under 15 separate contracts. The contracts were awarded to East Coast Fruit Company and subsequently performed by FreshPoint following FreshPoint’s acquisition of East Coast Fruit Company in 2007.
“The Department of Justice is committed to ensuring the integrity of federal contracts and will pursue contractors that knowingly overcharge the government for goods or services,” said Assistant Attorney General for the Department of Justice’s Civil Division Stuart F. Delery. “Contractors that do business with the government must do so honestly and fairly or suffer the consequences of their misconduct.”
“This settlement demonstrates one of the many types of fraud inflicted upon the American taxpayers,” said U.S. Attorney for the Southern District of Georgia Edward Tarver. “The U.S. Attorney’s Office will honor our commitment to vigorously enforce the False Claims Act in order to protect the financial soundness of our nation and its military.”
The settlement resolves allegations that from Dec. 17, 2007, through Sept. 11, 2009, FreshPoint overcharged the government on hundreds of sales of fresh fruit and vegetables by improperly inflating its prices to the government to reflect FreshPoint’s view of the prevailing market price of the goods at the time of sale. The government alleged that this practice violated FreshPoint’s contracts with the government that required FreshPoint to provide the produce at cost, plus a pre-established mark-up for profit, and did not allow FreshPoint to make additional price adjustments based upon perceived changes in market prices.
The allegations arose from a lawsuit filed under the whistleblower provisions of the False Claims Act, which allow private individuals to sue on behalf of the government and to share in the proceeds of any settlement or judgment. The whistleblower in this case, former FreshPoint employee Charles Hall, will receive $798,000.This settlement was the result of a coordinated effort by the Justice Department’s Civil Division, Commercial Litigation Branch; the U.S. Attorney’s Office for the Southern District of Georgia; the Defense Criminal Investigative Service; the Defense Contract Audit Agency and the Defense Logistics Agency Office of General Counsel. The claims settled by this agreement are allegations only, and there has been no determination of liability. The case is captioned U.S. ex rel. Hall v. SYSCO Corp., et al., Case No: 4:11-CV-57 (S.D. Ga.).
Fourteen Charged with Kilogram-Quantity Heroin Trafficking in City of MiddletownRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Ramon Bethencourt Jr., the Chief of the City of Middletown Police Department, and Joseph A. D’Amico, the Superintendent of the New York State Police, announced the arrest of 14 defendants and the unsealing of an Indictment charging a conspiracy to distribute kilogram quantities of heroin in and around Middletown, New York.
U.S. Attorney Preet Bharara stated: “This case is yet another example of this Office’s unrelenting efforts at purging the Hudson Valley of alleged violent drug trafficking gangs through the coordinated efforts of the FBI and our state and local law enforcement partners.”
FBI Assistant Director-in-Charge George Venizelos stated: “The arrests today target individuals who allegedly were involved in moving heroin into Middletown. These types of crimes are all too common in this area and the FBI’s Safe Streets Taskforce will continue to work with our partners to eradicate violent gangs and drugs in our communities.”
Middletown Police Department Chief Ramon Bethencourt Jr. stated: “Along with Mayor DeStefano, I want to praise the work of all of the law enforcement agencies involved. Once again our commitment to working together will have a positive influence on the quality of life for our residents. By ridding our streets of these drugs we are reducing the violent crimes that go along with them, making the City of Middletown a safer community.”
New York State Police Superintendent Joseph A. D’Amico stated: “A significant amount of heroin will not make it onto the streets of Middletown as a result of the dedication and due diligence of local, state and federal investigators and prosecutors working collaboratively to put a stop to these types of drug operations. It is through this cooperative effort among our partners in law enforcement that we will continue to target, and remove from our streets those who choose to engage in this type of illegal and dangerous activity. I thank all of the members of this team for their hard work and dedication to the citizens of New York.”
According to allegations in the Indictment unsealed in White Plains federal court today:
Fourteen people, MIGUEL MARGOLLA, 29, JESUS IRIZARRY NEGRON, a/k/a/ “Pablo,” 22, MARIO MARGOLLA, 32, ROBERTO MARGOLLA, 22, CARLOS MARTINEZ, a/k/a “B-Way,” 33, SHARLIM OMAR MORALES, a/k/a “Moreno,” 32, RICARDO RAMOS-MENDEZ, a/k/a “Keeke,” a/k/a “Brian,” 23, TEDDY RIVERA, a/k/a “Teddy Guns,” a/k/a “TG,” 20, CHRISTINA RODRIGUEZ, 23, JOHNATHAN RODRIGUEZ, a/k/a “J-Whispers,” a/k/a “Bigz,” 26, MANUEL SANTIAGO, 28, JESSICA SLOCUM, 24, ALEX TORRES, a/k/a “Broccoli,” a/k/a “Broc,” 28, and CHRISTIAN VERA MALDONADO, 22, are charged with conspiring to distribute, and possess with intent to distribute, kilogram quantities of heroin. As the Indictment describes, the defendants operated a large-scale heroin trafficking organization that distributed heroin throughout Middletown, New York since at least 2007. As further alleged, during the investigation, the defendants unwittingly sold heroin to confidential informants and an agent in an undercover capacity. As further alleged, one member of the conspiracy also discussed the possible murder of two individuals in or around Middletown.
The charge against each defendant and the corresponding maximum potential penalties are outlined in the chart attached to this press release.
All of the defendants charged in the Indictment were arrested last night or today, or have previously been taken into custody. Twelve of the defendants are to be presented in White Plains federal court this afternoon before U.S. Magistrate Judge Lisa Margaret Smith. One defendant is to be presented in the United States District Court for the District of New Hampshire, and one defendant is to be presented in the United States District Court for the District of Puerto Rico.
Mr. Bharara praised the outstanding investigative work of the FBI, the City of Middletown Police Department, the New York State Police, the Orange County Sheriff’s Department, the Town of Wallkill Police Department, and the Town of Ramapo Police Department. Mr. Bharara also thanked the Orange County District Attorney’s Office for its invaluable coordination and continuing support.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Michael Gerber is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Founder and Leader of Newburgh Latin Kings Sentenced to Life Plus 85 Years in Prison for Murder, Racketeering, Drug Distribution, and Other CrimesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that WILSON PAGAN, 27, the founder and top leader of the Latin Kings gang in Newburgh, New York (the “Newburgh Latin Kings”), was sentenced today by U.S. District Judge Cathy Seibel in White Plains federal court to life plus 85 years in prison. PAGAN was convicted of murder; racketeering; conspiracy to distribute crack, cocaine, and heroin; assault, and using and carrying firearms in connection with violent crimes. PAGAN is one of 35 members and associates of the gang who were charged in the case, all of whom have been convicted, 28 of whom have thus far been sentenced.
U.S. Attorney Preet Bharara stated: “Mr. Pagan was a gang leader, and what he led his followers to was a gang member’s life filled with death, blood, guns, drugs, and jail – and for him the gangster life in the street has become the inmate’s life in prison, forever. Gang leaders, members, associates, and wannabes in Newburgh and throughout the Hudson Valley need to understand: We will not tolerate gang violence. You will go to prison for it, potentially for the rest of your life.”
According to the Indictment and evidence presented at trial:
PAGAN founded the Newburgh Latin Kings, and grew the gang from roughly a dozen members in 2008 to more than 50 members and associates by early 2010. On May 6, 2008, PAGAN ordered aspiring gang members to go on a so-called mission, during which they committed a drive-by shooting and killed, mistakenly, Jeffrey Zachary, a 15-year old boy who was an innocent bystander. PAGAN sold crack and heroin, and helped other members and associates of his gang sell drugs, including at spots the Latin Kings controlled, such as the corner of Benkard Avenue and William Street in Newburgh. PAGAN also assaulted rivals of his gang, and carried guns and instructed others to carry guns to protect PAGAN and the Newburgh Latin Kings’ drug turf. In leading the gang, PAGAN recruited and inducted new members, instructed the members how to behave in order to protect and conceal the gang’s criminal activities, and issued orders to gang members to shoot and assault others. PAGAN organized and led gang meetings for this purpose. During one such meeting, according to papers filed with the court, PAGAN told more than 20 assembled gang members: “[W]e don’t even live by rules of society. . . .”
Mr. Bharara thanked the Hudson Valley Safe Streets Task Force for their work on the Latin Kings investigation. The Task Force is led by the Federal Bureau of Investigation (“FBI”), and combines the resources of dozens of law enforcement officers from federal, state, and local agencies and departments, including: agents and officers of the FBI; the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; the City of Newburgh Police Department; the U.S. Department of Homeland Security, Homeland Security Investigations; the Middletown Police Department; the Orange County Sheriff’s Office, and the New York State Police.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Benjamin Allee, Abigail Kurland, and Nicholas McQuaid are in charge of the prosecution.
Former Vickburg Mayor Sentenced to Prison for BriberyRead the Press Release
Natchez, Miss – Paul Winfield, former mayor of Vicksburg, Mississippi, was sentenced in U.S. District Court today to 25 months in federal prison followed by three years of supervised release for bribery in connection with a pre-event disaster contract for the city of Vicksburg, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen. Winfield was also ordered to pay a $5,000 fine and forfeit $7,000, the amount paid to him as a bribe.
In early 2012, while serving as the mayor of Vicksburg, Winfield met with a Federal Bureau of Investigation (“FBI”) source, where they discussed pre-event disaster contracts for the city of Vicksburg. On July 18, 2012, Winfield again met with the FBI source at a restaurant in Jackson. After dinner, Winfield and the FBI source met inside the source’s vehicle and the FBI source asked Winfield what would need to be done in order for the source’s company to get the pre-event disaster contract. Winfield responded “Ten” and held up ten fingers, signifying $10,000. The FBI source asked Winfield if the FBI source could pay $5,000 now and $5,000 once the contract was awarded. Winfield agreed and the FBI source paid Winfield $5,000 cash in the vehicle at that time.
On August 17, 2012, the FBI source met with Winfield in Natchez, Mississippi, where he paid Winfield an additional $2,000 in cash and asked if another $3,000 would be enough. The source then promised Winfield another $3,000 after the pre-event disaster contract was awarded.
As part of his plea agreement, Winfield agreed to forfeit the bribe money he accepted and he also agreed to neither run for elected public office nor apply for or be employed by any governmental entity in the future.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Mike Hurst.###
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Former Chairman of Mashantucket Pequot Tribal Nation Sentenced to 18 Months in Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that MICHAEL THOMAS, 45, the former Chairman of the Mashantucket Pequot Tribal Council, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 18 months of imprisonment, followed by three years of supervised release, for embezzling from the Mashantucket Pequot Tribal Nation.
On July 24, 2013, a jury found THOMAS guilty of one count of theft from an Indian tribal organization and two counts of theft from an Indian tribal government receiving federal funds.
“Mr. Thomas’s embezzlement of more than $100,000 was not only an abuse of his position as Chairman of the Mashantucket Pequot Tribal Nation, but also a theft of federal funds,” stated Acting U.S. Attorney Daly. “The U.S. Attorney’s Office is committed to prosecuting corrupt officials at all levels of government – federal, state, local and tribal – and I commend the FBI and Department of the Interior’s Office of Inspector General for their diligent investigation of this matter.”
“Today’s sentence is especially important because it holds Mr. Thomas accountable for stealing federal dollars to support a lifestyle which he could have legitimately afforded on his own,” stated FBI Special Agent in Charge Ferrick. “During these particularly severe fiscal times, Mr. Thomas’ abuse of position and unauthorized use of tribal money were done with a sense of entitlement and without ambiguity. The FBI is most appreciative of the efforts of the United States Attorney’s Office and the Department of the Interior’s Office of Inspector General for working with us to investigate and prosecute the corruption of public officials at all levels.”
According to the evidence at trial, between October 2007 and April 2009, THOMAS used an American Express card that was issued to him by the Mashantucket Pequot Tribal Nation (“MPTN”) for official MPTN government purposes to charge more than $100,000 in unauthorized personal expenses. THOMAS used the card to pay for monthly satellite television service for his home, satellite radio service for his vehicle, mobile phone service for other individuals, car service to transport his mother to kidney dialysis treatments and the purchase of personal computers. THOMAS knew that the expenses were personal, and that his use of the credit card was in violation of a Tribal Council Resolution.
Judge Arterton will issue a restitution order after further court proceedings.
This matter was investigated by the Federal Bureau of Investigation and U.S. Department of the Interior – Office of Inspector General. The case was prosecuted by Assistant U.S. Attorneys Christopher Mattei and Douglas Morabito.
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(203) 821-3722 [email protected]Former Animal Planet Television Network Host Pleads Guilty to Federal Charge of Selling Endangered WildlifeRead the Press Release
LOS ANGELES -- Donald Schultz, the former host of Animal Planet’s “Wild Recon” television show, pleaded guilty today in federal court to one count of violating the Endangered Species Act for selling two desert monitor lizards (Varanus griseus).
Schultz, 35, of Playa Vista, admitted in court that on July 29, 2010, he sold the two live desert monitor lizards to an undercover agent with the U.S. Fish and Wildlife Service who was posing as a prospective buyer. After meeting with the undercover agent at his residence to finalize the deal, Schultz agreed to ship the two live desert monitors from Los Angeles to Buffalo, New York, via airplane A federal agent then received the monitors in New York and took them into custody.
Schultz had never been issued a permit to sell the two lizards. Desert monitor lizards are listed as endangered under the Endangered Species Act.
Schultz is scheduled to be sentenced by United States Magistrate Judge Victor B. Kenton on January 28.
Pursuant to the plea agreement, Schultz has agreed to serve two years of probation, pay a $6,000 fine, pay restitution of $3,000, and perform 200 hours of community service.
This case was investigated by the U.S. Fish and Wildlife Service.
Release No. 13-132
Farmers Branch Man Pleads Guilty to Bank Robbery ChargesRead the Press Release
FBI Says Luis de la Garza was the “Mesh Mask Bandit”
DALLAS — Luis de la Garza, 59, of Farmers Branch, Texas, appeared this morning before U.S. Magistrate Judge Irma C. Ramirez and pleaded guilty to a superseding information charging five counts of bank robbery, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to plea papers filed, de la Garza not only admits committing the five below-listed bank robberies, he stipulates that he committed an additional 13 bank robberies and an additional two attempted bank robberies in the Dallas – Fort Worth metroplex between April 2010 and May 2013.
March 18, 2013 Chase Bank 6300 Harry Hines Blvd.
Dallas, Texas
April 5, 2013 Grand Prairie State Bank 2317 South Belt Line Rd.
Grand Prairie, Texas
April 22, 2013 Wells Fargo Bank 13297 Josey Lane
Farmers Branch, Texas
April 29, 2013 Capital One Bank 200 North Mesquite Street, Suite 121
Arlington, Texas
May 15, 2013 Chase Bank 111 South Garland Ave., Suite 150
Garland, TexasIn each of these five bank robberies, de la Garza wore long-sleeved clothing, a mesh mask, cap and gloves to disguise his identity, and in each robbery he brandished and used a BB pistol. In each of the robberies, the tellers were in fear for their lives. During the last robbery, on May 15, 2013, a bank customer grabbed de la Garza’s pistol and struck him in the head. While a struggle then ensued between de la Garza and a bank employee, de la Garza broke free and fled from the bank, leaving behind his pistol, which Garland Police Department determined was a CO2 BB gun.
De la Garza faces a maximum statutory penalty of 25 years in federal prison and a $250,000 fine for each of the five counts of conviction. In addition, according to the terms of his plea, he will pay a total of $145,947 in restitution. Sentencing is set for February 27, 2014, before U.S. District Judge Jane J. Boyle.
The investigation was conducted by the FBI, Dallas Police Department, Grand Prairie Police Department, Farmers Branch Police Department, Arlington Police Department, Garland Police Department, Carrollton Police Department, Addison Police Department, Lewisville Police Department and Plano Police Department. Assistant U.S. Attorney Keith Robinson is in charge of the prosecution.
Eastern Idaho Man Pleads Guilty to Federal Drug ChargeRead the Press Release
POCATELLO – Sammy Joe Aguirre, 26, of Idaho Falls, Idaho, pleaded guilty today in United States District Court to possession with intent to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, on March 21, 2013, law enforcement officers observed Aguirre traveling from Idaho Falls to Rupert, Idaho, where he obtained approximately one pound of methamphetamine. While transporting the methamphetamine back to eastern Idaho, Aguirre’s vehicle was stopped, he was arrested and law enforcement seized the methamphetamine. Aguirre admitted in court that he obtained the methamphetamine with the intention of distributing it to others.
Aguirre is scheduled to be sentenced on January 29, 2014, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
Aguirre’s co-defendant, Emilio Martinez, 31, of Rigby, Idaho, pleaded guilty on October 16, 2013, to possession with intent to distribute methamphetamine. According to the plea agreement, on February 26, 2013, during execution of a search warrant at a residence in Bonneville County, officers found Martinez in possession of methamphetamine and paraphernalia. He is scheduled to be sentenced on January 3, 2014.
Aguirre and Martinez face up to 20 years in prison, a maximum fine of $1 million, and at least three years of supervised release.
The case is the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Idaho State Police, with assistance from the Idaho Falls Police Department and Bonneville County Sheriff’s Office. Other federal agencies participating in the OCEDTF program include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Internal Revenue Service-Criminal Investigation (IRS-CI), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and U.S. Marshals Service.
The OCDETF program is a federal, multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Devils Lake Man Pleads Guilty to Abusive Sexual Contact at Spirit LakeRead the Press Release
FARGO – U.S. Attorney Timothy Q. Purdon announced that on Nov. 19, 2013, Erick McKay of Devils Lake, N.D., pleaded guilty before U.S. District Judge Ralph R. Erickson to two counts of abusive sexual contact.
McKay pleaded guilty to causing a female child, who had not attained 12 years of age, to have sexual contact with him by the use of threat and force against her.
The incidents occurred between April 2011 and June 2012 on the Spirit Lake Indian Reservation.
Each charge carries a maximum penalty of life imprisonment.
The case was investigated by the Federal Bureau of Investigation.
Sentencing for McKay has been set for Feb. 10, 2014, at 11:00 a.m.
Assistant U.S. Attorney Janice M. Morley is prosecuting the case.
Delaware Woman Pleads Guilty to $940,000+ Tax Fraud and Identity Theft SchemeRead the Press Release
WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Dawn Chamberlain, age 36, of Claymont, Delaware, pled guilty today to violations of 18 USC § 286 (False Claims Conspiracy) and 18 USC § 1341 (Mail Fraud). Chamberlain, who will be sentenced on April 3, 2013, 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 acted as a tax preparer in Delaware. From 2009 through 2012, she filed more than 450 false and fraudulent U.S. Individual Federal Income Tax Returns for other people. In the returns, the defendant claimed more than $730,000 in credits to which her clients were not entitled, including the American Opportunity Tax Credit and the Earned Income Tax Credit.
The defendant directed the taxing authorities to deposit the refunds generated by the fraudulent federal income tax returns into her own bank accounts, and bank accounts of her family members. She returned less than the full amount of the refunds to her clients, converting the remaining proceeds to her personal use.
The defendant also used her client’s names, dates of birth, and social security numbers to file false and fraudulent New York State Resident income tax returns, requesting refunds of more than $210,000.
U.S. Attorney Oberly gave the following comments: “This case should send a clear signal that individuals who file false claims against the United States Treasury will be prosecuted. I find fraud upon the government to be particularly troubling, and I am committed to working with the Internal Revenue Service to prosecute these cases and seek incarceration wherever possible.”
This case is the result of an investigation conducted by the Internal Revenue Service, the United States Postal Inspection Service, and the Social Security Administration, Office of the Inspector General, with the investigative assistance and cooperation of the State of New York. The prosecution is being handled by Assistant United States Attorney Lauren Paxton, District of Delaware.Dearborn-Based Business Owner and Former AttorneySentenced to Prison for Bank FraudRead the Press Release
The owner of a Dearborn, Michigan, based real estate company was sentenced to 110 months in prison, and a former Dearborn attorney was sentenced to 48 months in prison following their convictions for bank fraud and commercial bribery, announced United States Attorney Barbara L. McQuade.
Making the announcement along with U.S. Attorney McQuade were Paul M. Abbate, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, and Giovanni Tiano, Special Agent in Charge of the Dearborn office of the Department of Homeland Security - Office of Inspector General, and Jeffrey Frost, Special Agent in Charge of the Detroit office of the U.S. Secret Service.
Defendant, Hussein “Sam” Nazzal, 60, of Dearborn, and the owner of the of G & S Development real estate investment firm, was sentenced to serve 110 months in federal prison following his conviction at trial for bank fraud, bribery of a bank officer and obstruction of justice. Nazzal was also order to pay $2.9 million in restitution to his victims.
Defendant Edward A. Schneider, 60, of Dearborn, the former principal in the law firm Edward Schneider, P.C. was sentenced to serve 48 months in prison following his conviction at trial for bank fraud and bribery of a bank officer. Schneider was also ordered to pay more than $2.7 million in restitution to his victims.
Both defendants were sentenced before the Honorable David M. Lawson of the U.S. District Court for the Eastern District of Michigan.
As part of the same prosecution, four additional defendants were previously sentenced to terms ranging from two years of probation to 40 months in prison. One defendant faces deportation to Lebanon on his release from the Bureau of Prisons.
In announcing the two sentences, McQuade stated, ABank fraud offenses harm all of us by shifting costs to consumers and by making it harder for legitimate borrowers to obtain loans.”Special Agent in Charge Abbate stated, "These types of crimes target our financial institutions, the integrity of which is critical for our communities. The FBI Detroit Division, in concert with our law enforcement partners, will continue to aggressively pursue those who fraudulently enrich themselves at the expense of us all."
Special Agent in Charge Tianno stated, “The DHS-OIG is very pleased by the successful outcome of this investigation and will continue to be committed to working with our law enforcement partners to aggressively pursue those who selfishly engage in the corruption of our financial institutions, which ultimately results in the weakening of our nation’s economy.”
Special Agent in Charge Frost stated, “The consequences of financial crimes perpetrated against individuals and organizations are far-reaching and long-lasting. The Secret Service believes that building trusted partnerships between all levels of law enforcement has been a proven and successful model for facing the challenges of criminal activity. It is through our collaborative approach with established partnerships that the Secret Service plays a critical role in detecting, investigating and mitigating the effects of financial crimes.”
This case was investigated by the Federal Bureau of Investigation, the Department of Homeland Security - Office of Inspector General and the United States Secret Service.
Clarkston Man Sentenced to Fifteen Years in Federal Prison for Attempted Production of Child PornographyRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Christopher A. Knox, age 50, of Clarkston, Washington, was sentenced after having previously pleaded guilty on July 23, 2013 to Attempted Production of Child Pornography. United States District Court Judge Edward F. Shea sentenced Knox to a fifteen year term of imprisonment, to be followed by a life term of court supervision after he is released from Federal prison.
According to information disclosed during the court proceedings, in March of 2010, the Federal Bureau of Investigation and Grant County Sherriff's Office conducted an investigation of a mother using her children to produce images of child pornography. The mother, Pamela Ortega, plead guilty to three counts of Rape of a Minor and was sentenced in Washington State to 300 months imprisonment. As a result of the investigation into Ortega, law enforcement determined that one of the individuals she was communicating with about producing child pornography images was Christopher A. Knox. On March 30, 2011, the FBI executed a search warrant at Knox's residence and ultimately located a laptop computer that contained images of child pornography.
Michael C. Ormsby said, "Prosecuting offenders who are not only collecting child pornography, but also attempting to produce child pornography images is a priority of the United States Attorney's Office in the Eastern District of Washington. This Office, together with its Federal and state law enforcement partners, is and will continue to be committed to prosecuting aggressively and seeking appropriate punishment for child pornography crimes."
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative ("PSC") has five major components:
- Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue child victims;
- Participation of PSC partners in coordinated national initiatives;
- Increased federal enforcement in child pornography and enticement cases;
- Training of federal, state, and local law enforcement agents; and
- Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources".
This investigation was conducted the Federal Bureau of Investigation and Grant County Sherriff's Office. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and PSC Coordinator for the Eastern District of Washington.
CR-13-6004-EFS
Cheektowaga Man Convicted of Gun ChargeRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Jose Gonzalez, 37, of Cheektowaga, N.Y., was convicted of possession of a short-barrel shotgun following a jury trial before U.S. District Judge William M. Skretny. Gonzalez faces a maximum 10 years in prison, a $10,000 fine or both.
According to Assistant U.S. Attorneys Eric M. Opanga and Joseph M. Tripi, who handled the prosecution of the case, the defendant was driving his girlfriend’s car, which she reported to police had been stolen. Gonzalez and co-defendant Luis Osorio were stopped by Buffalo Police on Carolina St. because officers who were following the vehicle believed the defendants were attempting to evade police. During a subsequent search of the vehicle, officers discovered a defaced short-barrel shotgun behind the driver seat.
The defendant was acquitted on a charge of possession of a defaced firearm. The jury was unable to reach a verdict on charges of felon in possession of a firearm and possession of an unregistered short-barrel shotgun.
Gonzalez and Osorio were arrested on December 14, 2011. Osorio is scheduled to go to trial on December 3, 2013.
The conviction is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Frank Christiano, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Sentencing is scheduled for February 5, 2014 at 9:00 a.m. before Judge Skretnty.Charleston Man with More Than $20,000 Cash, Half-kilo of Cocaine Sentenced to Nearly 4 Years in Federal PrisonRead the Press Release
CHARLESTON, W.Va. – A thirty-five-year-old man who possessed a total of more than $20,000 in cash and nearly a half-kilogram of cocaine inside of his Charleston residence was sentenced today to 46 months in federal prison, announced U.S. Attorney Booth Goodwin. Jason McGhee, 35, previously pleaded guilty in July to possession with intent to distribute cocaine. On April 24, 2013, a confidential informant working with the Metropolitan Drug Enforcement Network Team (MDENT) arranged to purchase cocaine from McGhee. The police informant later arrived at McGhee’s residence and gave the defendant $2400 in pre-recorded buy money to fulfill a previous drug debt. A short time later, McGhee handed the informant five ounces of suspected cocaine. The informant later turned the suspected cocaine over to law enforcement agents. The suspected cocaine was tested by police and proved to be 146 grams of cocaine.
Following the controlled drug transaction between McGhee and the informant, police executed a search warrant on the defendant’s residence. During the search of the residence, police found $2400 in pre-recorded currency that was used as part of a previous controlled drug transaction, an additional $17,800 in cash, two sets of digital scales and approximately 499 grams of cocaine.In total, McGhee is responsible for distributing a total of at least two kilograms but less than 3.5 kilograms of cocaine in and around Charleston.
The investigation was conducted by MDENT and the Drug Enforcement Administration. Assistant United States Attorney Monica D. Coleman handled the prosecution. The sentence was imposed by United States District Judge Thomas E. Johnston in Charleston.
Chamberlain Man Charged with Access Device Fraud and LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Chamberlain, South Dakota, man has been indicted by a federal grand jury.
Warren LaRoche, age 23, was indicted on November 14, 2013, for Access Device Fraud and Larceny. LaRoche appeared before U.S. Magistrate Judge Mark A. Moreno on November 18, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 15 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, an additional 2 years of supervised release upon revocation, and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges are merely accusations, and LaRoche is presumed innocent until and unless proven guilty.
The Indictment alleges that between December 3, 2012, and April 16, 2013, LaRoche stole a credit card number and made unauthorized purchases in excess of $1,000.
The investigation is being conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
LaRoche was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Cabot Corporation Agrees to Spend over $84 Million to Control Harmful Air Pollution at Louisiana and Texas FacilitiesRead the Press Release
Boston-based Cabot Corporation, the second largest carbon black manufacturer in the United States, has agreed to pay a $975,000 civil penalty and spend an estimated $84 million on state of the art technology to control harmful air pollution, resolving alleged violations of the New Source Review (NSR) provisions of the Clean Air Act (CAA) at its three facilities in the towns of Franklin and Ville Platte, La., and Pampa, Texas, the Department of Justice and the U.S. Environmental Protection Agency (EPA) announced today. This agreement is the first to result from a national enforcement initiative aimed at bringing carbon black manufacturers into compliance with the CAA’s NSR provisions.
The state of Louisiana Department of Environmental Quality is a co-plaintiff in the case and will receive $292,500 of the penalty.
“By agreeing to pay an appropriate penalty and install state of the art technology to control harmful air pollution, Cabot Corp. is taking a positive step forward to address these alleged violations of the Clean Air Act,” said Acting Assistant Attorney General Robert G. Dreher of the Justice Department’s Environment and Natural Resources Division. “This agreement will serve as a model for how the industry can come into compliance with the Clean Air Act by installing controls that prevent harmful pollution and improve air quality for surrounding communities.”
“With today’s commitment to invest in pollution controls, Cabot has raised the industry standard for environmental protection,” said Assistant Administrator Cynthia Giles of EPA’s Office of Enforcement and Compliance Assurance. “These upgrades will have lasting, tangible impacts on improved respiratory health for local communities. We expect others in the industry to take notice and realize their obligation to protect the communities in which they operate.”
“This is a huge win for the citizens of our district,” said U.S. Attorney Stephanie A. Finley. “These harmful pollutants can cause serious, long term respiratory harm. The United States Attorney’s Office is committed to the enforcement of the environmental laws and protection of the community. This settlement promotes a healthier environment and an opportunity to allow the residents of the district to breathe cleaner air.”
At all three facilities, the settlement requires that Cabot optimize existing controls for particulate matter or soot, operate an “early warning” detection system that will alert facility operators to any particulate matter releases, and comply with a plan to control “fugitive emissions” which result from leaks or unintended releases of gases. To address nitrogen oxide (NOx) pollution, Cabot must install selective catalytic reduction technology to significantly reduce emissions, install continuous monitoring, and comply with stringent limits. At the two larger facilities in Louisiana, Cabot must address sulfur dioxide (SO2) pollution by installing wet gas scrubbers to control emissions, install continuous monitoring, and comply with stringent emissions limits. In addition, the Texas facility is required to comply with a limit on the amount of sulfur in feedstock that is the lowest for any carbon black plant in the United States.
These measures are expected to reduce NOx emissions by approximately 1,975 tons per year, SO2 emissions by approximately 12,380 tons per year, and significantly improve existing particulate matter controls. Exposure to NOx emissions can cause severe respiratory problems and contribute to childhood asthma. SO2 and NOx can be converted to fine particulate matter once released in the air. Fine particulates can be breathed in and lodged deep in the lungs, leading to a variety of health problems and even premature death. The harmful health and environmental impacts from these pollutants can occur near the facilities as well as in communities far downwind from the plants.
In the complaint filed by DOJ on behalf of EPA, the government alleged that, between 2003 and 2009, Cabot made major modifications at its carbon black facilities without obtaining pre-construction permits and without installing and operating required pollution technology. The complaint further alleges that these actions resulted in increased emissions of NOx and SO2, violating CAA requirements stating that companies must obtain the necessary permits prior to making modifications at a facility and must install and operate required pollution control equipment if those modifications will result in increases of certain pollutants.
Today’s action also requires that Cabot spend $450,000 on energy saving and pollution reduction projects that will benefit the communities surrounding the facilities in Franklin and Ville Platte, La., and in Pampa, Texas, such as upgrading air handling units at municipal buildings in the three communities to more efficient technology.
Carbon black is a fine carbonaceous powder used as a structural support medium in tires and as a pigment in a variety of products such as plastic, rubber, inkjet toner and cosmetics. It is produced by burning oil in a low oxygen environment; the oil is transformed into soot (carbon black), which is collected in a baghouse. Because the oil used in the process is low value high sulfur oil, the manufacturing process creates significant amounts of SO2 and NOx, as well as particulate matter.
This settlement is part of EPA’s national enforcement initiative to control harmful air pollution from the largest sources of emissions. Since 2010, EPA has been focusing enforcement efforts on reducing emissions at carbon manufacturing plants in the United States. Currently, none of the 15 carbon black manufacturing plants located in the United States have controls on emissions of SO2 and NOx or have continuous emissions monitors.
Cabot Corporation manufactures global specialty chemicals and performance materials, which include rubber additives for tires and brake pads, activated carbon for air purifiers, chemicals used in the manufacture of lithium-ion batteries, and inkjet colorants.
The proposed consent decree will be lodged with the U.S. District Court for the Western District Court for Louisiana and will be subject to a 45-day public comment period. The company is required to pay the penalty within 30 days after the court approves the settlement. The proposed consent decree can be viewed online at www.justice.gov/enrd/Consent_Decrees.html
More information about the settlement:
www2.epa.gov/enforcement/cabot-corporation-clean-air-act-settlement
More information about EPA’s national enforcement initiative: www.epa.gov/compliance/data/planning/initiatives/2011airpollution.html
Buffalo Grandmother who Headed Family Drug Organization Sentenced on Drug Conspiracy ChargesRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Theresa Anderson, 57, of Buffalo, N.Y. who was convicted of conspiracy to distribute and distribution of crack cocaine, was sentenced to 188 months in prison by U.S. District Court Judge, Richard J. Arcara.
Assistant U.S. Attorney Melissa Marangola, who handled the case, stated that between 2000 and February 2012, Anderson headed an illegal narcotics drug trafficking organization that controlled drug sales on Swinburne and Deshler Streets in the City of Buffalo. The defendant employed several family members to sell crack cocaine on a daily basis in the neighborhood. In order to monopolize narcotics sales in the area, the defendant threatened and intimidated rival narcotics traffickers and even purchased several homes in the area which were used for selling and storing the illegal narcotics.
“This defendant not only destroyed her own family by leading them into a life of illegal narcotics trafficking, she also damaged the neighborhood where the drug trafficking took place,” said U.S. Attorney Hochul. "Together with our law enforcement partners, we will continue our efforts to make Buffalo and its neighborhoods a safer place to live.”As part of this case, the Government seized over $50,000 in U.S. Currency and approximately nine houses used by the drug organization.
Anderson was arrested in February 2012 along with eight others: Steven Butler; Dion Anderson; Melvin Calhoun; Anquensha Hodge, a/k/a Anne Anderson; Wymiko Anderson, a/k/a Red; Toshia Hodge, a/k/a Toshia Anderson; Tajia Anderson, a/k/a Porkchop; and Leo Mellerson; all of Buffalo. Five of these are either children or grandchildren of Anderson. A sixth defendant is Anderson's husband and the two others are boyfriends of Andersons' daughters. All nine have been convicted.
The sentencing is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the New York State Police, Special Investigations Unit, under the direction of Major Thomas G. Marmion.Appeals Court Affirms Sentence for Olson’s Wire Fraud OffenseRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that the Third Circuit Court of Appeals Monday affirmed the 65-month prison sentence imposed by Senior U.S. District Court Judge James M. Munley on Jeffrey Olson for his scheme to defraud investors of $2.8 million and for violating conditions of his supervised release.
According to United States Attorney Peter J. Smith, Olson, age 51, who resided in Pocono Lake during the time of the offense, previously pleaded guilty to wire fraud in connection with soliciting investments in a business called Northco Investments between 2008 and 2011. Olson was sentenced to prison in February 2013.
Olson was charged in May 2011, as a result of an investigation by the Federal Bureau of Investigation.
In his appeal, Olson challenged the validity of his guilty plea; claimed that the government promised him a lesser sentence; and argued that consecutive sentences for the wire fraud offense and his supervised release violation were unreasonable. The Third Circuit Court rejected each of those claims and noted that Judge Munley’s sentence was “premised upon appropriate and judicious consideration of the relevant factors.”
Assistant United States Attorney Francis P. Sempa prosecuted the case and handled the appeal for the government.
18 November 2013
“Strategies for Justice – Collaboration in the Western Pacific: A Pacific Regional Response to Combat Human Trafficking”Read the Press Release
U.S. Attorney’s Office for the District of Guam and the Northern Mariana Islands Co-sponsors Human Trafficking Training in Palau
Alicia A.G. Limtiaco, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands, announced that her office co-sponsored the 2nd Pacific Regional Response to Combat Human Trafficking International Conference held in the Republic of Palau on July 22-26, 2013. U.S. Attorney Limtiaco, Assistant U.S. Attorney (AUSA) Rosetta San Nicolas and AUSA Rami Badawy, conducted training and presentations on topics including, “Pacific Regional Response to Combat Human Trafficking - Collaboration in the Western Pacific”; “Investigation and Prosecution of Sexually Oriented Businesses and Civil Code Enforcement”; and “Child Sexual Exploitation, Child Pornography and Human Trafficking of Minors.” U.S. Attorney Limtiaco, AUSA San Nicolas and AUSA Badawy were also instructors of the Human Trafficking Trial Advocacy Course, held at the Conference.
The U.S. Attorney’s Office (“USAO”) for the Districts of Guam and the Northern Mariana Islands (“NMI”) has been and continues to work collaboratively with the National District Attorney’s Association (NDAA); U.S. Department of Interior, Office of Insular Affairs, Federal Ombudsman Office; and U.S. Department of State, Monitoring of Trafficking in Persons Office, on a Pacific Regional Response to Combat Human Trafficking initiative. This response is a critical component of the USAO’s human trafficking strategic plan given increased concerns in the Pacific region regarding sex and labor trafficking, violence against women, and child abuse and sexual exploitation. Also of significance are the source countries within the Asia Pacific region from which victims are recruited and trafficked, and their close proximity to Guam, the NMI, Republic of Palau, Republic of the Marshall Islands, and Federated States of Micronesia (“FSM”); and the trafficking of victims in the islands themselves.
The Pacific Regional Response to Combat Human Trafficking initiative employs a multidisciplinary model, including participation, coordination, and collaboration among law enforcement; prosecution; victim service providers; social services; medical, mental and public health professionals; faith based organizations; educational institutions; Consulates; and other community stakeholders. The response calls for the establishment and provision of victim services, investigation and prosecution of human trafficking, training opportunities, community outreach/ public awareness and prevention programs, and creation of human trafficking task forces and coalitions in the Pacific region island communities.
Providing fundamental training in human trafficking, including victimization, investigation and prosecution, prevention efforts, and other related topics, to law enforcement; prosecution; victim service providers; social services; medical, mental and public health professionals; faith based organizations; educational institutions; Consulates; and other community stakeholders, in our Pacific region island communities, is critical to effective prevention and enforcement efforts in the region.
The conference provided a forum for governmental and non-governmental organizations to engage in dialogue and discuss issues, concerns, problems, plans, strategies and solutions relating to human trafficking in their respective Pacific island communities, in the Pacific region, and globally. The conference also provided an opportunity for the participants to establish professional relationships and partnerships, and to engage in cooperative and collaborative domestic and international efforts to prevent and fight against human trafficking, establish victim services, and prosecute and hold traffickers accountable for these heinous crimes.
The “2nd Pacific Regional Response to Combat Human Trafficking International Conference” was attended by approximately 100 leaders and members of the Pacific regional community.
Photos of the conference are attached.
Conference attendees from Guam and Saipan, left to right, Assistant U.S. Attorney Rami Badawy, Cynthia Kinto, UOG Student, Mary Kate Donnell, UOG Student, U.S. Attorney Alicia Limtiaco. Lauri Ogumoro, Director, Guma Esperanza, Saipan Attorney General Joey San Nicolas and Assistant U.S. Attorney Rosetta San Nicolas.
U.S. Attorney Alicia Limtiaco addressing conference participants.
William K. Harrington to Serve as U.S. Trustee for New York, Connecticut, VermontRead the Press Release
WASHINGTON – William K. Harrington, the U.S. Trustee for Massachusetts, New Hampshire, Maine and Rhode Island (Region 1), has been designated by Attorney General Eric Holder also to serve as the U.S. Trustee for New York, Connecticut and Vermont (Region 2), effective on November 27, 2013, the Executive Office for U.S. Trustees announced today. Mr. Harrington replaces Tracy Hope Davis, who has been appointed U.S. Trustee for Northern and Eastern California and Nevada (Region 17).
“The U.S. Trustee Program is tremendously fortunate to have Bill Harrington able to step in to serve as U.S. Trustee for this extremely significant region,” stated Clifford J. White III, Director of the Executive Office for U.S. Trustees. “Bill has many years of experience in the oversight of complex chapter 11 reorganizations, including as head of our office in Wilmington, Delaware, and he was a leader in the development of the updated chapter 11 attorneys’ fee guidelines that we issued in June.”
Mr. Harrington has served as U.S. Trustee for Region 1 since October 2010. Prior to that appointment, he served for two years as the Assistant U.S. Trustee in Wilmington, Del., after joining the U.S. Trustee Program (USTP) in March 2004 as a Trial Attorney. Previously, Mr. Harrington practiced law in a large regional law firm concentrating on bankruptcy, corporate and commercial litigation matters. Before attending law school, he worked as a senior accountant for an investment management firm in Boston.
Mr. Harrington received a law degree from Villanova University School of Law in Villanova, Pa., and a Bachelor of Science (Economics) degree from the Wharton School, University of Pennsylvania, in Philadelphia.
The USTP is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The USTP has 21 regions and 95 field offices. Region 2 is headquartered in New York City with additional offices in Albany, Brooklyn, Buffalo, Central Islip, Rochester and Utica, N.Y., and New Haven, Conn.
Contact:Jane Limprecht, Public Information Officer
Executive Office for U.S. Trustees
(202) 305-7411Wichita Man Sentenced for HelpingPolice Officer in Scheme to Pay BribeRead the Press Release
WICHITA, KAN. – A Wichita man has been sentenced to two years on federal probation for helping a former officer of the Wichita Police Department in a scheme to bribe a witness in hopes of keeping the officer from losing her job, U.S. Attorney Barry Grissom said today. He already spent five months in jail.
Patrick Melendrez, 40, Wichita, Kan., pleaded guilty to one count of conspiracy to commit wire fraud. In his plea, he admitted that co-defendant Joletta Vallejo developed a plan and asked him to assist her in bribing a witness to recant statements the witness made about Vallejo to the police department’s Professional Standards Bureau.
Vallejo was employed by the Wichita Police Department from Jan. 9, 2006, to Aug 24, 2012. On Oct. 16, 2011, two citizens approached her to report they were victims of an aggravated robbery, aggravated kidnaping, aggravated battery and attempted first degree murder. Vallejo did not follow the police department’s policies in responding and filing their complaints. As a result, Vallejo was investigated by the police department’s Professional Standards Bureau. When she was interviewed she lied to investigators. When she became aware she was going to be fired, she and Melendrez devised a scheme to attempt to keep her job.
On Aug. 22, 2012, Vallejo created a Google Voice number in the name of Melendrez. On Aug. 22 and 23, that number was used to call and text a witness to persuade him to recant his statements to the Professional Standards Bureau. In return, Vallejo and Melendrez offered the witness money. What Vallejo and Melendrez did not know is the witness was cooperating with an undercover investigation into the bribery attempt.
Co-defendant Vallejo is set for sentencing Dec. 2.
Grissom commended the Wichita Police Department, the FBI and Assistant U.S. Attorney Debra Barnett for their work on the case.
West Memphis Arrests Take Violent Drug Dealers Off the StreetsRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; along with Howard S. Marshall, Acting Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation; Colonel Stan Witt, Arkansas State Police; and Chief Donald Oakes, West Memphis Police Department; announced today that on November 6, 2013, a federal grand jury returned a twenty-five count indictment charging twenty individuals in Crittenden County with participating in a drug conspiracy and firearms offenses.
“I made a commitment to the Arkansas Delta law enforcement to work side-by-side with them to take violent drug dealers off their streets,” stated Thyer. “The arrests this morning were the result of a coordinated effort with the West Memphis Police Department. When we work together, we will make a difference for the citizens of Eastern Arkansas.”
“Today's arrests in Operation Delta Crossroads are intended to reiterate the strong message to gang members and other criminals who pose the greatest threat of violence to the safety and security of those who live and work in Eastern Arkansas," stated Acting FBI Special Agent in Charge Howard S. Marshall. "We are here, we are working together, and we are committed to dismantling and disrupting your illegal operations.”
“With the arrests made this morning we took a big step in the fight against drugs and violence it in our community, and it is a great example of what can be accomplished when Local, State and Federal Law Enforcement cooperate for a common goal.”
The charges stem from a state and federal Organized Crime and Drug Enforcement Task Force (OCDETF) investigation operationally dubbed "Delta Crossroads." The investigation, which primarily focused on drug trafficking in West Memphis, was initiated by the FBI at the request of the West Memphis Police Department, which assisted extensively with the investigation. During the course of the investigation, law enforcement utilized three court-authorized wiretaps, during which hundreds of calls pertaining to cocaine and crack cocaine trafficking and firearms offenses were intercepted.
Defendants arrested in a round-up conducted by the FBI, ASP, and West Memphis Police Department, on November 18, 2013 will appear before United States Magistrate Judge Joseph J. Volpe for Plea and Arraignment on November 19, 2013, at 11:00 a.m. The remaining defendants will appear for Plea and Arraignment on a later date. The case, 4:13CR00329 BSM, is pending before U.S. District Chief Judge Brian S. Miller.
The investigation was conducted by the United States Attorney=s Office, FBI, ASP, and West Memphis Police Department. It is being prosecuted by Assistant United States Attorney Julie Peters.
An indictment contains only allegations. The defendants are presumed innocent unless and until proven guilty.
See attachment for specific information on individual defendants.
Delta Crossroads
Attachment
Statutory Sentences
Conspiracy to distribute and to possess with intent to distribute more than five hundred grams of mixtures containing cocaine and more than twenty-eight grams of mixtures containing cocaine base, commonly known as crack cocaine, in violation of 21 U.S.C. ' 846 carries a possible punishment of no less than five years and up to forty imprisonment, a fine of up to $5 million, and not less than four years and up to life supervised release.
Possession with intent to distribute cocaine in violation of 21 U.S.C. ' 841(a)(1) carries a possible punishment up to twenty years imprisonment, a fine of up to $1 million, and not less than three years and up to life supervised release.
Possession with intent to distribute crack cocaine in violation of 21 U.S.C. ' 841(a)(1) carries a possible punishment up to twenty years imprisonment, a fine of up to $1 million, and not less than three years and up to life supervised release.
The use of a telephone in furtherance of a drug trafficking crime in violation of 21 U.S.C. § 846 carries a possible punishment of up to four years imprisonment, a fine of up to $250,000, and up to one year supervised release.
The possession of a firearm in furtherance of a drug trafficking crime in violation of 18 U.S.C. ' 924(c) carries a possible punishment of no less than five years and up to life imprisonment, up to a $250,000 fine, and up to five years supervised release.
Osiel Acuna-Perez age 34 (BOP Custody) Memphis, TN Demetreuis Barrett age 30 West Memphis, AR Brandon Bohannon age 29 West Memphis, AR Brent Bohannon age 21 West Memphis, AR Willie Brown age 35 West Memphis, AR Willie Cooper age 50 West Memphis, AR David Edwards age 28 Olive Branch, MS Wendell Glenn age 27 West Memphis, AR David Green age 25 West Memphis, AR Delvin Green age 23 West Memphis, AR Courtney Hamilton age 23 West Memphis, AR John Hayes age 48 Houston, TX Rafael McDaniel age 31 West Memphis, AR Michael McDonald age 27 West Memphis, AR Gregory Miller age 34 (BOP Custody) Memphis, TN Deloricko Prewitt age 32 West Memphis, AR Detarious Robinson age 21 West Memphis, AR Dominique Robinson age 31 West Memphis, AR Jesse Robinson age 23 West Memphis, AR Ronnie Sanes age 33 West Memphis, ARWatertown Man Charged with Unlawful Taking of Migratory Birds and Lacey Act ViolationsRead the Press Release
United States Attorney Brendan V. Johnson announced that a Watertown, South Dakota, man has been charged with Unlawful Taking of Migratory Birds and Lacey Act Violations by an Information filed October 30, 2013.
Roger Meyer, age 52, appeared before U.S. Magistrate Judge William D. Gerdes on November 8, 2013, and pled not guilty to the charge.
The maximum penalty upon conviction is 1 year of imprisonment and/or a $100,000 fine, 1 year of supervised release and an additional year of supervised release upon revocation, and a $25 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges are merely accusations, and Meyer is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Fish and Wildlife Service. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Meyer was released on bond pending trial which has not been set.
Waterford Man Sentenced to Federal Prison for Mortgage Fraud OffensesRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JUAN VELEZ, 60, of Waterford, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 12 months and one day of imprisonment, followed by five years of supervised release, for his role in a mortgage fraud scheme. Judge Chatigny also ordered VELEZ to spend the first six months of his supervised release in home confinement, and to perform 120 hours of community service.
According to court documents and statements made in court, in 2006 and 2007, VELEZ and others engaged in a mortgage fraud scheme involving multiple properties in New London. As part of the scheme, VELEZ acquired properties from a co-defendant and other individuals and then sold the properties to another co-defendant, Flavia Mendoza, at inflated prices using fraudulently obtained mortgage loans.
On June 20, 2013, VELEZ pleaded guilty to one count of bank fraud. In pleading guilty, VELEZ specifically acknowledged that he was involved in the fraudulent transaction of a property located at 624-626 Montauk Avenue in New London. When VELEZ sold the property to Mendoza, the loan paperwork contained multiple false statements, including information related to Mendoza’s income, her intention to occupy the property as her primary residence, and the amount of money she was providing to purchase the property. Additionally, the Housing and Urban Development Settlement Statement form (“HUD-1”), which VELEZ signed, falsely stated that Mendoza had provided VELEZ with approximately $29,760 for the purchase of the property when Mendoza had not, in fact, provided any down payment money for the transaction. Based on these false statements, Mendoza obtained a mortgage loan in the amount of $492,699 from the bank.
VELEZ, Mendoza and others shared the profits of this and other fraudulently obtained residential mortgage loans, which totaled more than $1.2 million.
Judge Chatigny ordered VELEZ to pay restitution in the amount of $908,695.64 to four victim financial institutions.
Mendoza has pleaded guilty and awaits sentencing.
This matter was investigated by the U.S. Postal Inspection Service, the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Michael S. McGarry and Peter S. Jongbloed.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Wanblee Woman Pleads Guilty to Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Brendan V. Johnson announced that Shy Bettelyoun, age 30, of Wanblee, South Dakota, appeared before U.S. Magistrate Judge Veronica L. Duffy, on November 8, 2013, and pled guilty to Conspiracy to Distribute a Controlled Substance and Distribution of a Controlled Substance.
The maximum penalty upon conviction is up to 20 years of imprisonment and/or a $1,000,000 fine.
On or about August 2009 through February 20, 2013, Bettelyoun conspired with other persons to distribute 50 grams or more of methamphetamine in and around the Pine Ridge Indian reservation.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, the Bureau of Indian Affairs Office of Justice Services, the Federal Bureau of Investigation, and Rapid City Police Department. The case is being prosecuted by Assistant U.S. Attorney Ted L. McBride.
A presentence investigation was ordered and a sentencing date has not been set. The defendant was remanded to the custody of the U.S. Marshals Service pending sentencing.
US Attorney Marshall presents at White House Tribal Leaders ConferenceRead the Press Release
US Attorney Amanda Marshall with Grand Ronde Tribal Council Member Cheryle Kennedy
U.S. Attorney’s Office for the Districts of Guam and the Northern Mariana Islands Conducts Training in Palau, Pohnpei and ChuukRead the Press Release
Alicia A.G. Limtiaco, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that her office, together with the FBI, conducted training in the Republic of Palau; Pohnpei State, Federated States of Micronesia (FSM), and Chuuk State, FSM. The training was held in Palau in December 6-7, 2012, in Ponape on January 7- 8, 2013, and in Chuuk on January 9-10, 2013. U.S. Attorney Limtiaco, AUSA Rosetta San Nicolas, and AUSA Rami Badawy conducted presentations on topics including, “Pacific Regional Response to Combat Human Trafficking - Collaboration in the Western Pacific;” “Introduction to Human Trafficking Investigation and Prosecution;” and “Nuts and Bolts: Investigation and Prosecution of Human Trafficking Cases;” and “Bullying and Cyberbullying.” FBI Special Agent Jason Todd provided training on “Active Listening; Suspect Interviews;” “Crime Scene Investigation;” and “Introduction to Cyber Crime.”The U.S. Attorney’s Office (“USAO”) for the Districts of Guam and the NMI has been and continues to work collaboratively with the National District Attorney’s Association; U.S. Department of Interior, Office of Insular Affairs, Federal Ombudsman Office; and U.S. Department of State, Monitoring of Trafficking in Persons Office, on a Pacific Regional Response to Combat Human Trafficking. The Pacific Regional Response to Combat Human Trafficking initiative employs a multidisciplinary model, including participation, coordination, and collaboration among law enforcement; prosecution; victim service providers; social services; medical, mental and public health professionals; faith based organizations; educational institutions; Consulates; and other community stakeholders. The response calls for the establishment and provision of victim services, investigation and prosecution of human trafficking, training opportunities, community outreach/ public awareness and prevention programs, and creation of human trafficking task forces and coalitions in the Pacific region island communities. Providing fundamental training in human trafficking, including victimization, investigation and prosecution, prevention efforts, and other related topics, to law enforcement; prosecution; victim service providers; social services; medical, mental and public health professionals; faith based organizations; educational institutions; Consulates; and other community stakeholders, in our Pacific region island communities, is critical to effective prevention and enforcement efforts in the region.
Participants also learned about human trafficking, including sex trafficking and labor trafficking, the seriousness of the problem, and how to identify, communicate with, and respond to the needs of victims. Also discussed was a review of the Trafficking Victims Protection Act and other related federal laws.
The second day brought to the participants an overview of technology, what cybercrime is and related issues such as terrorism. Participants were also given an overview of bullying and cyberbullying; the seriousness of the problem; the impact on the community including youth suicide; enforcement efforts including civil rights lawsuits and consent decrees issued against school districts; and prevention efforts including public awareness outreaches to schools and parent groups, training of school districts, and other related activities.
Participants were provided information about child sexual and physical abuse. Also discussed were issues relating to children with special needs, and the relationship between child abuse and human trafficking of children.