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Wednesday 18 September 2013
Owner of McFarland Tax Co. and Employee Indicted in Conspiracy to Defraud United StatesRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Chauncee McFarland, 35, and Kenyatta Hubbard, 32, both of Rochester, N.Y., have been charged in a 74-count indictment with conspiring to defraud the United States by submitting false income tax returns, and with submitting false income tax returns to the Internal Revenue Service. The charges carry a maximum sentence of 10 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Chauncee McFarland owned and operated McFarland Tax Company, a tax return preparation business. Hubbard was employed by McFarland. Together, the two defendants conspired to abuse the Earned Income Tax Credit by submitting false income tax returns and fake Forms W-2 on behalf of their clients. According to the indictment, the defendants prepared and submitted 73 fraudulent income tax returns, netting more than $442,000 in criminal proceeds. McFarland and Hubbard kept approximately half of the money for themselves, and gave the remainder to their clients.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The indictment is the culmination of an investigation by Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent in Charge Toni M. Weirauch.Owner of Home Health Agency That Defrauded Medicare Ordered to Pay $14.9 Million – Three Times the Losses Caused by SchemeRead the Press Release
LOS ANGELES – A federal judge has ordered the owner of a home health agency that operated in the Westlake District of Los Angeles to pay nearly $15 million – or approximately three times the losses suffered by Medicare as a result of the company’s illegal practices.
United States District Judge Stephen V. Wilson previously issued a $14,902,832 default judgment against Hee Jung Mun, the former owner and operator of GreatCare Home Health Agency, who was commonly known as Angela Mun. The judgment resolves a “whistleblower” lawsuit filed by GreatCare’s receptionist.
The judgment against Mun and the conclusion of the whistleblower lawsuit was announced today when the U.S. Marshals service transferred to the United States Treasury $1,297,958 that was seized in March 2011 when federal agents executed a search warrant at GreatCare and executed seizure warrants on GreatCare’s and Mun’s bank accounts.
GreatCare paid kickbacks to physicians and others to induce them to refer patients to GreatCare in a $5 million Medicare fraud scheme.
In January 2012, Mun pleaded guilty to healthcare fraud charges for her central role in a scheme that paid kickbacks to physicians and marketers who referred patients to GreatCare (see: http://www.justice.gov/archive/usao/cac/Pressroom/2012/008.html). As part of the scheme, Medicare beneficiaries were also paid to sign up for GreatCare’s service, even though many of them were not eligible for home health services. GreatCare billed Medicare for services that were not rendered, were unnecessary, and/or were performed by unlicensed personnel. Mun is currently scheduled to be sentenced in February.
In June, one of the physicians who received kickbacks for referring patients to GreatCare and signed false certificates of medical necessity – Dr. Dong Shin – agreed to pay the United States $217,810 to resolve his civil liability for his role in the scheme. The settlement amount was based upon Dr. Shin’s assessed ability to pay. Shin has paid $150,000 and has agreed to make monthly payments until the balance is paid off.
Also in June, Seonweon Kim, a physical therapist at GreatCare, agreed to pay the United States $205,000 to resolve his civil liability for his participation in the scheme. Kim pleaded guilty last year to healthcare fraud and admitted that he created false physical therapy notes that falsely indicated he had provided various services to patients. Kim is also scheduled to be sentenced early next year. Kim has already paid $85,000 of the settlement amount; the remainder will be paid in monthly installments.
Another referring physician, Dr. Whan Sil Kim, pleaded guilty to receiving kickbacks and was sentenced last year to one year and one day in prison. In March, the Court entered a consent judgment against Dr. Kim pursuant to which she agreed to pay the United States $1,088,799 to resolve her liability in the civil action.
The judgment against Mun – which was filed by Judge Wilson on July 23 – and the settlements resolve the civil lawsuit United States ex rel. Kim v. GreatCare Home Health Agency, et al., a “whistleblower” lawsuit that alleged GreatCare billed Medicare for thousands of home health visits that were not rendered and/or were medically unnecessary. The lawsuit further alleged that GreatCare executed the scheme by recruiting Medicare beneficiaries and paying kickbacks to the beneficiaries and to doctors to induce referrals for home health services.
The Medicare fraud scheme came to light in March 2010 when GreatCare’s then-receptionist, Misha Kim, filed the qui tam lawsuit under the federal False Claims Act. United States District Judge Stephen V. Wilson unsealed the whistleblower lawsuit in October 2011. The United States did not intervene in the lawsuit, but actively participated in settlement negotiations and coordinated extensively with Relator’s counsel in bringing this case to completion.
The civil case was investigated by the Federal Bureau of Investigation and the Office of Inspector General of the U.S. Department of Health & Human Services.
Release No. 13-116
Oncologist Charged in Superseding Indictment with Medically Unnecessary Cancer Treatments SchemeRead the Press Release
Dr. Farid Fata was charged in a superseding indictment in the Eastern District of Michigan for a health care fraud scheme involving the administration of medically unnecessary drugs, including chemotherapy, announced the Department of Justice, the FBI and the Department of Health and Human Services (HHS). The superseding indictment adds eleven additional health care fraud counts, a count of conspiracy to receive and pay kickbacks as well as one count of naturalization fraud. Criminal forfeitures are also sought in the indictment.
According to court documents, Dr. Fata was the owner of Michigan Hematology Oncology, P.C. (MHO), a Michigan hematology and oncology practice that did business at multiple locations and billed multiple health care providers, including Medicare, Blue Cross Blue Shield of Michigan, Health Alliance Plan and Aetna. Beginning in August 2007 and continuing through July 2013, Dr. Fata is alleged to have submitted or caused the submission of false and fraudulent claims for services that were not medically necessary, including claims for (a) administering chemotherapy and other cancer treatments to patients whose medical conditions did not support the treatments; (b) administering intravenous immunoglobulin therapy to patients whose medical conditions did not support the therapy; and (c) administering intravenous iron treatments to patients who were not iron deficient.
For Medicare alone, from in or around August 2007, through in or around July 2013, MHO submitted approximately $225 million in claims to Medicare, of which approximately $109 million was for chemotherapy or other cancer treatment drugs. Of the approximate $225 million, Medicare paid over $91 million, of which over $48 million was for chemotherapy or other cancer treatment drugs. Dr. Fata is alleged to have submitted and caused MHO to submit claims for years of medically unnecessary treatments including repeated and unnecessary chemotherapy and cancer drug treatments for individuals who did not, in fact, have cancer. One patient who did not have cancer received approximately 155 chemotherapy treatments over a period of approximately two and a half years.
The indictment also alleges that Dr. Fata engaged in a scheme to unlawfully enrich himself through the solicitation and receipt of kickbacks in exchange for the referral of services and arranging for the furnishing of services, including home health care services and hospice services.
In addition, Dr. Fata is alleged to have procured his naturalization unlawfully by falsely stating on his application for naturalization that he never committed a crime or offense for which he was not arrested when in fact Dr. Fata then well knew he had, as of March 10, 2008, committed crimes of health care fraud.
Upon conviction, each of the health care fraud counts carries a maximum term of imprisonment of 10 years. The kickback conspiracy carries a maximum term of imprisonment of 5 years. The naturalization fraud carries a maximum term of imprisonment of 10 years, with the additional penalty that the order admitting the defendant to citizenship must be voided, and the certificate of naturalization must be cancelled.
Please contact the United States Attorney’s Office Victim Information Line at 888-702-0553 to access information relating to scheduled court events and procedures for requesting copies of patient files. Updates will be posted as information becomes available.
The case is being prosecuted by Fraud Section Assistant Chief Catherine K. Dick and Deputy Chief Gejaa T. Gobena, as well as Assistant United States Attorneys Wayne Pratt and Sarah Resnick Cohen. The investigations were conducted jointly by the FBI and HHS-OIG, as part of the Medicare Fraud Strike Force, supervised by the U.S. Attorney's Office for the Eastern District of Michigan and the Criminal Division's Fraud Section.
Since its inception in March 2007, strike force operations in nine locations have charged more than 1,330 defendants who collectively have billed the Medicare program for more than $4 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team, go to: www.stopmedicarefraud.gov.
Ocala Woman Sentenced to Federal Prison for Medicaid FraudRead the Press Release
Tampa, FL - U.S. District Judge James S. Moody, Jr. today sentenced Tiffany McIntyre (34, Ocala) to three years in federal prison for committing health care fraud and aggravated identity theft. As part of her sentence, the court ordered restitution and entered a money judgment in the amount of $128,051.76, the proceeds of the health care fraud. McIntyre pleaded guilty on June 3, 2013.
According to court documents, McIntyre engaged in a scheme to defraud the State of Florida Medicaid Program ("Medicaid") by billing for services that were not rendered, using the identities of Medicaid recipients without their knowledge or permission. Medicaid, a federal health insurance program that provides coverage for indigent persons, children, and certain disabled individuals, is funded through federal and state tax revenue.
In August 2009, McIntyre was issued an Adult Family Care Home license by the Agency for Health Care Administration (AHCA). The license allowed her to operate an adult family care home in Ocala. She also submitted an application to become a Medicaid Provider to AHCA, requesting approval to provide daily living assistance as an assistive care provider, in her Ocala adult care family home, to Medicaid recipients who are not able to function by themselves. For a period of time in 2009 and 2010, McIntyre provided some of these services. Thereafter, she submitted false claims to Medicaid for assistive care services for Medicaid recipients who never resided at her adult family care home. From January 2011 through at least September 2012, McIntyre submitted false and fraudulent claims to Medicaid in the amount of approximately $148,681, using the identities of Medicaid recipients without their knowledge or authorization. McIntyre was paid a total of $128,051.76 by Medicaid for these false and fraudulent claims.
This case was investigated by Department of Health and Human Services and the Medicaid Fraud Control Unit of the Office of the Florida Attorney General. It was prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
Ocala Dentist Convicted on Counts of Failure to File Income Tax ReturnsRead the Press Release
Ocala, Florida - Acting United States Attorney A. Lee Bentley, III announces that yesterday a federal jury found Thomas W. Harter, D.M.D. guilty of six counts of willful failure to file income tax returns for the years 2006 through 2011. Harter faces a maximum penalty of six years in federal prison. His sentencing hearing has not yet been set. Harter was charged in a superseding information on April 16, 2013.
According to evidence and testimony presented at trial, Harter stopped filing income tax returns in 2000. From 2006 through 2011, Harter received gross income from his dental practice of at least $1,709,230.00, and he filed no tax returns and paid no income taxes for those years.
This case was investigated by the Internal Revenue Service - Criminal Investigation, with assistant from Special Enforcement Program Revenue Agents of the Internal Revenue Service. It is being prosecuted by Assistant United States Attorney Samuel D. Armstrong.
Obama Administration Announces a Coordinated Effort to Protect Consumers by Preventing and Detecting Potential Fraud in the Health Insurance MarketplaceRead the Press Release
Today, Attorney General Eric Holder, Health and Human Services (HHS) Secretary Kathleen Sebelius, and Federal Trade Commission (FTC) Chairwoman Edith Ramirez met at the White House to kick off a comprehensive interagency initiative to prevent, protect against, and where necessary prosecute consumer fraud and privacy violations in the Health Insurance Marketplace. Representing key state partners in this critically important effort to protect consumers were Maryland Attorney General Douglas Gansler and Kansas Insurance Commissioner Sandy Praeger. Senior White House officials also attended the meeting.
Meeting participants reaffirmed their ongoing commitment to protect consumers from potential threats in this area. Building on a successful infrastructure that already exists, the interagency officials highlighted the following new initiatives: 1) the dedication of the Marketplace Call Center as a resource and referral to FTC for consumer fraud concerns, with trained Call Center staff to effectively refer consumer threats and complaints; 2) connecting consumers to FTC’s Complaint Assistant through HealthCare.gov; 3) development of a system of routing complaints through the FTC’s Consumer Sentinel Network for analysis and referral as appropriate; 4) establishment of a rapid response mechanism for addressing privacy or cybersecurity threats and; 5) ramping up public education to empower consumers and assisters to know the facts and avoid scams.
“Today we are sending a clear message that we will not tolerate anyone seeking to defraud consumers in the Health Insurance Marketplace,” said Health and Human Services Secretary Sebelius. “We have strong security safeguards in the Marketplace to protect people’s personal information against fraud and we will work with our partners to aggressively prosecute bad actors, just as we have been doing in Medicare, Medicaid and the Children’s Health Insurance Program.”
The experienced and dedicated professionals at HHS, DOJ and FTC, together with their state and local partners, are ready to anticipate and respond to the law enforcement challenges that may arise with the launch of the Marketplace. They will be using tried and tested methods for combatting fraud associated with other government programs, so that consumers can confidently and securely shop for affordable health insurance beginning on October 1.“I am proud of the proactive approach that the Justice Department is taking with our colleagues at HHS and FTC, and with the state law enforcement community, to prevent and detect consumer fraud in the Health Insurance Marketplace,” said Attorney General Eric Holder. “Going forward, we intend to share information, work cases, and hold wrongdoers accountable as we always do. We plan to use our tried-and-tested collaborative methods to ensure that we can identify trends and take swift action against those seeking to take advantage of consumers.”
Consumers who report that their personal information may have been compromised will be given information about steps to take to prevent or respond to identity theft. If a consumer reports suspected fraud, his or her complaint will be entered into the FTC’s Consumer Sentinel Network database, which is used by federal and state law enforcement agencies to track potential fraud activity. Federal law enforcement officials will be able to monitor complaint activity for trends within and across all 50 States."At the FTC, we know all too well how scammers invariably try to take advantage of developments in the marketplace and new government programs," said FTC Chairwoman Edith Ramirez. "We will be vigilant as always in cracking down on this type of opportunistic fraud."
Consumer fraud experts from across state and federal agencies will continue to meet on a regular basis to monitor potential fraud associated with the Marketplace and ensure the strength of preventive measures.
“State Attorneys General have extensive experience working proactively with our Federal law enforcement partners to anticipate and respond to consumer fraud,” said Maryland Attorney General Douglas Gansler. “We look forward to continuing to partner with the Justice Department, the FTC, and HHS to educate consumers, investigate cases, identify patterns associated with different types of fraud, and hold scammers accountable.”
Steps have already been initiated to prevent and respond to individuals attempting to take advantage of the public during health care implementation. These measures include:
• Reporting fraud mechanism: A new feature of the Marketplace Call Center (1-800-318-2596, TTY 1-855-889-4325) will now enable individuals to report fraud simply by calling the 1800 number. Call Center operators have been trained to take a fraud complaint, and refer them to FTC’s Consumer Sentinel Network.
• Creating new pathways: HealthCare.gov offers easy access to connect consumers to FTC’s Complaint Assistant.
• Establishing a routing system for complaints through a centralized database: Routing complaints through the Sentinel Network will ensure Federal, state and local law enforcement have access to consumer complaints and can analyze and refer those complaints as appropriate.
• Protecting personal data: Building on the certification of the Health Insurance Marketplace’s data hub on September 6, 2013 as in compliance with the stringent security, privacy and data flow standards developed by the National Institute of Standards and Technology - the gold standard for information and independent security controls assessment - the interagency officials have also established a rapid response mechanism that will be employed in the unlikely event of a data security breach.
• Empowering consumers with information: Building on a proactive effort to inform consumers about potential fraud and privacy threats, the federal government is releasing new educational materials to empower consumers and assisters who are helping consumers navigate the Marketplaces. They include online tip sheets like Protect Yourself from Fraud in the Health Insurance Marketplace and Tips for Assisters to Help Consumers Navigate the Marketplace. The materials remind consumers that there is free assistance available to navigate the Marketplace and that they should be suspicious of persons who ask for a fee before providing assistance.
In addition, the FTC and DOJ are hosting events this week in anticipation of the launch of the Marketplace:
• Thursday, September 19th, the FTC, will host a roundtable in Washington, DC to discuss how to empower and protect consumers from scammers with the advent of the Health Insurance Marketplace. The roundtable will bring together experts on the health care law, federal and state consumer protection officials, representatives of legal services and community-based organizations, and consumer advocates to discuss key features of the law, state approaches to implementation, and how to help consumers avoid potential scams.• Friday, September 20th, DOJ will host a law enforcement meeting to convene state and local officials. This meeting is part of ongoing efforts urging state AGs to work with HHS and federal, state, and local law enforcement to mount a substantial outreach campaign to educate consumers about how to prevent scams and fraud and protect their personal information in the Marketplace.
These comprehensive preventive and detection efforts build on the extensive experience and federal, state and local intergovernmental infrastructure that has protected consumers from fraud.
• Since its creation in 1997, the HHS Senior Medicare Patrol has educated to more than 28 million Medicare beneficiaries and counseled more than 1.3 million individuals about specific concerns, one-on-one. Coupled with other outreach efforts, Medicare’s toll-free customer service operations sent nearly 45,000 inquiries to law enforcement partners for fraud investigations in 2012 alone. These direct-from-consumer leads ultimately supported the Administration’s work to prosecute criminals, returning $6.7 billion to the Medicare Trust Fund in the last four years.
• In the last several years, the FTC’s Bureau of Consumer Protection has put a stop to over 50 health fraud scams, government grant schemes, and mortgage relief services frauds, and has independently secured nearly $6 million in monetary relief for consumers. The Bureau conducts investigations, sues companies and people that violate the law, and works to educate consumers and businesses about their rights and responsibilities. The Bureau coordinates its work in these areas with Federal, state and local partners.
• Over the last four years, DOJ has successfully prosecuted over four thousand defendants in identity theft and aggravated identity theft cases, and convicted over 200 defendants in advance fee fraud cases, over 500 defendants in consumer fraud cases, and over 100 defendants in telemarketing fraud cases.
For more information on CMS’s efforts to protect consumers in the Marketplace, please visit: http://www.cms.gov/Newsroom/MediaReleaseDatabase/Fact-Sheets/2013-Fact-Sheets-Items/2013-09-18.html
North Wilmington Man Sentenced to Six Years in Prison for Receipt of Child PornographyRead the Press Release
Jason Jay Mills, age 36, of Wilmington, Delaware, was sentenced today to six years in prison for receipt of child pornography via a website discovered by Italian law enforcement authorities. Mills also was sentenced to five years of supervised release following his prison sentence. He also will be required to register as a sex offender in any jurisdiction in which he lives, works, or attends school. United States Attorney Charles M. Oberly, III made the announcement following Mills’ sentencing hearing before United States District Judge Richard G. Andrews.
According to statements made at today’s hearing and documents filed in court, Mills was a user of a child pornography website discovered by the National Centre for Combating Pedophilia Online (Centro Nazionale per il Contrasto alla Pedopornografia On-line, or C.N.C.P.O.) located within the Italian State Police Postal and Communication Service. After executing a search warrant on the website servers, the C.N.C.P.O. was able to identify over 900 U.S.-based users of the website. The C.N.C.P.O. provided the identities of these users to the U.S. Department of Homeland Security, Homeland Security Investigations, which has been conducting investigations of the identified individuals across the United States.
On November 30, 2012, Wilmington-based Homeland Security Investigations agents arrested Mills and searched his North Wilmington residence, which was located just two blocks from Carrcroft Elementary School. They found computers containing over 40,000 still images and movies of some of the most graphic and violent depictions of child sexual abuse uncovered by investigators who routinely work child pornography cases in Delaware. The images featured mostly infants, toddlers and girls under age 8 being violently raped and assaulted. In some images, the children appear to be deceased following the violent sexual abuse. One image depicts a prepubescent girl with the following words over her naked torso:
CHILD PORNOGRAPHY
BEHIND EVERY PICTURE IS
A CHILD HAVING A HELL OF
A GOOD TIME!
In addition to the computers containing extremely violent child pornography featuring girls of elementary school age and younger, federal agents also found various dolls the size of toddlers, some of which had been used as sexual props or mutilated, in Mills’ residence. Located with the computer equipment to which Mills downloaded tens of thousands of images of violent sexual abuse was a cache of assault weapons that Mills legally owned, including AR-15, M-4, and AK-47 assault rifles.
Following the sentencing hearing, United States Attorney Charles M. Oberly, III thanked the Department of Homeland Security and the Italian State Police Postal and Communication Service for their collaborative efforts to work across an ocean to protect children: “Two weeks before the tragedy that occurred at Sandy Hook Elementary School, in Newtown, Connecticut, HSI agents removed Mills from his residence located two blocks from a local elementary school. Mills, who openly expressed his hatred of children to investigators, was fixated on imagery depicting depraved violence inflicted upon school-aged girls and young women, and he was armed with a cache of some of the most fearsome assault weapons legally available for purchase by private citizens, including the same model rifle used in the Sandy Hook tragedy. We are extremely grateful that the excellent work of our Homeland Security agents and our Italian law enforcement partners led to his arrest before he could harm children in ways beyond his online victimization of those depicted in the horrific images that he spent over a decade collecting.”
This case is being investigated by the United States Department of Homeland Security, with assistance from Italy’s Centro Nazionale per il Contrasto alla Pedopornografia On-line, which is part of the Italian State Police Postal and Communication Service. This case is being prosecuted by Assistant United States Attorney Edward J. McAndrew.
For more information about reporting online child exploitation to the national CyberTipline, visit the National Center for Missing and Exploited Children’s website at: www.missingkids.com. For more information about the United States Department of Justice’s Project Safe Childhood program, visit http://www.justice.gov/psc/.New York Man Pleads Guilty to over $300,000 in Credit Card FraudRead the Press Release
Orlando, Florida - Acting United States Attorney A. Lee Bentley, III announces that Werawat Isaraphanich (38, Bronx, New York) today pleaded guilty to access device fraud. Isaraphanich faces a maximum of 15 years in federal prison. A sentencing date has not yet been set. As part of his plea agreement, Isaraphanich has agreed to forfeit more than$176,000 that is being held in two accounts. These funds will be returned to the victims as partial payment toward their losses.
According to court documents, Isaraphanich used stolen credit card numbers to purchase tickets from Walt Disney World, Universal Studios, StubHub, and Ticket Master. He then sold the tickets at a discount. To purchase the tickets, Isaraphanich used software that generated a fictitious caller ID, which allowed him to mask the telephone number that he was using when he called to purchase the tickets and other items. Between April 2010 and June 2013, Isaraphanich made approximately 1,800 calls using fictitious caller IDs, and used more than 100 stolen credit card numbers to make fraudulent purchases. As part of his scheme, Isaraphanich attempted over $1.1 million in fraudulent credit card transactions, with victims suffering more than $323,000 in actual losses.
This case was investigated by the United States Secret Service. It is being prosecuted by Assistant United States Attorney Roger B. Handberg.
New Orleans Woman, Rachell Thomas, Sentenced for Conspiracy to Commit Wire Fraud in Aftermath of Bp Oil SpillRead the Press Release
RACHELL THOMAS, age 37, of New Orleans, Louisiana, was sentenced today before U.S. District Court Judge Stanwood R. Duval, Jr. to 12 months and one day imprisonment for conspiracy to defraud the Gulf Coast Claims Facility (GCCF) in the aftermath of the BP oil spill, announced U.S. Attorney Dana J. Boente. In addition to the term of imprisonment, THOMAS was ordered to pay restitution in the amount $8,000 and be placed on three years of supervised release following her imprisonment.
The GCCF made disaster assistance money available to individuals affected by the oil spill resulting from the Deepwater Horizon explosion in the Gulf of Mexico. The GCCF required individuals to verify loss of income. According to court documents, THOMAS and approximately 22 co-conspirators created claim forms in which they falsely claimed to work for seafood restaurants and to have suffered financially through lost employment as a result of the Deepwater Horizon incident. To support these fraudulent claims, THOMAS created false earnings statements and letters from fictitious restaurants and faxed them to the GCCF during September and October 2010. THOMAS and the other conspirators attempted to defraud the GCCF of a total of $188,500. THOMAS obtained $8,000 as a result of the scheme.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Chandra Menon.
New Orleans Man, Davis Norman, Iii, Sentenced to 2 Years for Manufacturing and Selling Counterfeit Motion Pictures and Musical AlbumsRead the Press Release
DAVIS NORMAN, III, age 36, a resident of New Orleans, Louisiana, was sentenced today before U.S. District Court Judge Stanwood R. Duval, Jr. to 24 months in prison followed by 3 years of supervised release after previously pleading guilty to a Bill of Information charging him with criminal infringement of a copyright, announced U.S. Attorney Dana J. Boente.
According to court documents, an investigation revealed that NORMAN created and sold counterfeit motion pictures and musical albums using a “burner” in his home. NORMAN sold the pirated works out of the back of his car in the parking lot of 2130 North Claiborne Avenue in New Orleans for approximately $10 each. Based in part on his prior arrests for selling counterfeit goods, NORMAN was aware that his conduct was illegal. A search warrant conducted on NORMAN’S home revealed 2 CD/DVD “burners,” over 200 blank CDs and DVDs, 467 DVDs containing pirated motion pictures, and 573 CDs containing pirated music, having a total retail value of at least $12,890.53.
The case was investigated by Immigration and Customs Enforcement, Homeland Security Investigations. The case was prosecuted by Department of Justice Trial Attorney Thomas S. Dougherty of the Computer Crime and Intellectual Property Section and Assistant United States Attorney Jordan Ginsberg.
New Hampshire Woman Charged with Theft from Non-Profit OrganizationRead the Press Release
BOSTON – A New Hampshire woman was charged today for stealing from an organization that receives substantial federal funding.
Tysen Julian, 33, of East Hampstead, New Hampshire, was charged by complaint with wire fraud and theft from an organization receiving more than $10,000 in federal funds in a one year period.
The complaint alleges that from approximately October 2009 until July 2013, Julian stole about $120,000 from a nonprofit organization by submitting false expense reimbursements. The complaint further alleges that among other things, Julian forged various approval signatures in order to receive the money.
If convicted, Julian faces a maximum penalty of 20 years in prison for each count of wire fraud and 10 years in prison for each count of theft from a program receiving more than $10,000 in federal funding.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Sara Miron Bloom of Ortiz=s Economic Crimes Unit.
Nesspor Sentenced to Prison for Oxycontin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 54-year-old West Lawn, Pennsylvania resident was sentenced to one year in prison today by Senior U.S. District Court Judge Edwin M. Kosik for his role in an Oxycontin trafficking conspiracy that operated in Schuylkill and Berks County in 2011.
According to United States Attorney Peter J. Smith, Stephen Nesspor previously admitted to conspiring with at least two others to unlawfully distribute 80mg Oxycontin pills.
Nesspor was indicted by a federal grand jury in September 2011, as a result of an investigation by the Drug Enforcement Administration and the Pennsylvania State Police.
Judge Kosik also ordered Nesspor to pay a $500 fine and a $100 special assessment. Nesspor will be on supervised release for three years after serving his prison sentence.
Two of Nesspor’s co-defendants previously entered guilty pleas in the case. Richard Law was sentenced to 15 months in prison. Michael Beaver pleaded guilty and is awaiting sentencing.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Members of Jewelry Theft Ring SentencedRead the Press Release
NEWPORT NEWS, Va. –Lucesita Argueta, 34, of Richmond, Va., was sentenced today to 108 months in prison, and Juanita Diaz, 44, of Henrico, Va., was sentenced to 12 months home confinement for their participation in a violent and highly sophisticated jewelry theft ring that operated out of Richmond, Va.
Kathleen Kahoe, Acting United States Attorney for the Eastern District of Virginia; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; and Carl J. Vasilko, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division made the announcement after sentencing by United States District Court Judge Arenda L. Wright Allen.
According to court documents, co-defendant Alexander Cuadros-Garcia, 37, from Colombia, led the organized criminal group that stole more than $4.6 million in jewelry from victims in Virginia and at least four other states, including New York, New Jersey, North Carolina, and Maryland. In March, 2012, Cuadros-Garcia, Argueta, and Diaz were charged along with five other members of the Richmond-based ring. Members regularly conducted lengthy surveillance on jewelry stores to identify vulnerable individuals and then follow their targets back to the individuals’ hotel or home.
In most of the robberies, several men would suddenly appear as the victims approached or entered their car, punch out the car’s windows, threaten the victims at knife-point and steal the victims’ merchandise. In addition, the robbers would puncture the victims’ car tires and steal their cell phone to reduce the chance of pursuit or apprehension. After a successful robbery, members of the ring would travel to New York to sell the merchandise to businessmen, who coordinated re-selling the stolen property or melting it down for future use. Members of the ring then laundered the proceeds through bank accounts and businesses.
Co-defendants Cuadros-Garcia, Leonardo Ortiz, Raul Antonio Escobar-Martinez, Luis Carlos Muchado, William Leandro Herrera-Bohorquez, and Jose Alfredo-Rivero-Garcia previously pleaded guilty for their roles in the theft ring. Escobar-Martinez and Herrera-Bohorquez were sentenced on March 7, and March 14, 2013, respectively, to serve 87 months in prison. Rivero-Garcia was sentenced on July 24, 2013, to 37 months in prison. Leonardo Ortiz’ sentencing date has not yet been set, Luis Carlos Muchado is scheduled to be sentenced on September 27, 2013, and Cuadros-Garcia is scheduled to be sentenced on October 25, 2013.
The investigation of this case was led by the ATF’s Washington Field Division, with the assistance of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the police departments in Williamsburg, Virginia Beach, Henrico County, Chesterfield, Prince William County and Fairfax County in Virginia, along with the Virginia State Police; the Baltimore County, Md., Police Department; the Port Authority of New York and New Jersey; the New York City Police Department; and the police departments in Rutherford, N.J., and Gwinnett County, Ga.; and the Morris County, N.J. Prosecutor’s Office.
Assistant U.S. Attorney Eric M. Hurt of the Eastern District of Virginia and Trial Attorney Jerome M. Maiatico of the Criminal Division’s Organized Crime and Gang Section prosecuted 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.Martins Ferry Man Sentenced for Cocaine TraffickingRead the Press Release
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Bridgeport, OH, sex offender convicted for failing to register
WHEELING, WEST VIRGINIA - A Martins Ferry, Ohio man was sentenced to federal
prison for his role in the sale of large quantities of cocaine.United States Attorney William J. Ihlenfeld, II, announced that SHERMAN L. GRIFFIN, age 36, was sentenced to 37 months in prison and 4 years of supervised release for “Conspiracy to Distribute More than 500 Grams of Cocaine.” GRIFFIN was also ordered to forfeit $1,155 seized from him on December 19, 2012, which constitutes proceeds from the drug activity. GRIFFIN, who is free on bond, will self-report to the designated Federal institution. The case was prosecuted by Assistant United States Attorney John C. Parr and was investigated by the Ohio Valley Drug & Violent Crimes Task Force, which consists of officers from the Wheeling Police Department, the Ohio County Sheriff’s Department, the West Virginia State Police, and the Drug Enforcement Administration.
In a separate matter, MICHAEL RUNYON, age 33, of Bridgeport, Ohio, appeared and entered a plea of guilty to “Failure to Update Sex Offender Registration.” RUNYON admitted that between January, 2013 and May, 2013, he failed to register as a sex offender as required due to his federal conviction in 2006 for “Transportation of a Minor Across State Lines for Sexual Purposes.” RUNYON faces up to 10 years in prison. The RUNYON case was prosecuted by Assistant United States Attorney David J. Perri and was investigated by the United States Marshals Service.
Manhattan U.S. Attorney Charges Seven Additional Members and Associates of Genovese and Bonanno Organized Crime Families with Narcotics Trafficking Conspiracy and Loan SharkingRead 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”), and Raymond W. Kelly, the Police Commissioner of the City of New York (“NYPD”), announced today the unsealing of charges in Manhattan federal court against seven additional alleged members and associates of the Genovese and Bonanno organized crime families, including a Genovese “Capo,” for offenses including narcotics trafficking conspiracy and loan sharking. Five other defendants, including a solider in the Genovese organized crime family, were charged in a prior Indictment with narcotics trafficking.
In connection with the Superseding Indictment unsealed today, six defendants have been arrested in New York. The six defendants taken into custody today in New York were presented and arraigned in Manhattan federal court before U.S. Magistrate Judge Henry B. Pitman this afternoon. An additional defendant, ELON VALENTINE, was previously arrested on state charges and remains detained.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, these defendants, all of whom were members and associates of the Genovese and Bonanno families, operated a narcotics trafficking scheme that ran across the country and onto our streets, on one hand, and a conspiracy to make extortionate loans, on the other. This Office is committed to rooting out any and all organized crime activity wherever we find it.”
FBI Assistant Director-in-Charge George Venizelos said: “Today’s charges show that the wise guys in New York tried to take a ‘higher,’ albeit illegal, approach to make money along with their usual loan sharking ways. Allegedly, members and associates of the Genovese and Bonanno organized crime families along with their cohorts ran a large scale marijuana operation that included the transport of marijuana from California to New York. However wise they thought their alleged antics would be, today, the FBI stands with our law enforcement partners announcing charges to end this cross country drug trade.”
NYPD Police Commissioner Raymond Kelly said: “I commend the NYPD Organized Crime Investigations Division and their FBI partners in the Joint Organized Crime Task Force for seeing this case through, as well as the prosecutors in U.S. Attorney Bharara’s office for their work on this case.”
According to the allegations in the Indictments unsealed today in Manhattan federal court and other court documents and proceedings:
Narcotics Trafficking
VINCENT BASCIANO, JR., STEPHEN BASCIANO, GEORGE KOKENYEI, JOEY BASCIANO, and VALENTINE conspired to distribute hundreds, and in some cases, thousands, of pounds of marijuana. For example, KOKENYEI arranged for large shipments of marijuana to be sent from California to New York, while BASCIANO, JR., ran a marijuana route in the Bronx, New York, that distributed hundreds of pounds of marijuana.
Loan Sharking
PASQUALE FALCETTI, a “capo” in the Genovese crime family, and THOMAS JOY conspired to make extortionate loans to victims in the Bronx, New York, and elsewhere.
A chart containing the ages and charges against the defendants, as well as the maximum penalties they face is attached.
Mr. Bharara thanked the FBI and the NYPD, specifically the FBI-NYPD Joint Organized Crime Task Force, for their work in the investigation.
The case is being prosecuted by the Office’s Organized Crime Unit. Assistant U.S. Attorneys Rebecca Mermelstein and Peter Skinner of the Organized Crime Unit are 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.
Click here to view chart(s)
U.S. v. Vincent Basciano et al S3 Indictment
Man Sentenced to 24 Years in Prison for Distribution of Methamphetamine in Reno AreaRead the Press Release
RENO, Nev. - A California man who led a group of individuals selling methamphetamine in the Reno area, has been sentenced to 24 years in prison and five years of supervised release for his conviction on federal drug trafficking charges, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Antonio Casares-Cuevas, 30, of San Jose, Calif., was sentenced on Thursday, Sept. 12, 2013, by Senior U.S. District Judge Larry R. Hicks. Casares-Cuevas pleaded guilty in May 2013, to conspiracy to possess with the intent to distribute at least 500 grams of methamphetamine.
According to the court filings, Casares-Cuevas lived in San Jose, Calif. and made frequent trips to Reno, Nev. where he supplied persons with methamphetamine for distribution. Co-defendants Mario Perez, Javier Zaragoza, and Tony Berliner lived in Reno and either distributed methamphetamine or arranged methamphetamine transactions for Casares-Cuevas.
On Jan. 5, Feb. 22, and March 7, 2012, at Casares-Cuevas’ direction, Perez and Zaragoza sold a total of about 5½ ounces of methamphetamine to a person in Reno, who, unbeknownst to them, was a confidential source working with the DEA. The government then obtained a court order authorizing a wiretap of Casares-Cuevas’ cellular telephone. Intercepted calls revealed Casares-Cuevas’ arrangement to pick up a supply of methamphetamine from co-defendant Armando Romero at his residence in Sacramento, Calif. on April 4, 2012. On April 4, 2012, Casares-Cuevas picked up the methamphetamine and was later pulled over by California Highway Patrol Officers as he was driving on Highway 99 near the Sacramento and San Joaquin County line. The officers recovered almost two pounds of pure methamphetamine from his vehicle.
Also on April 4, 2012, agents executed a federal search warrant at Casares-Cuevas’ home in San Jose, where Casares-Cuevas resided with co-defendant Leonela Urbina, and recovered more than six ounces of methamphetamine from a shed and $13,738 in cash from his bedroom. Federal search warrants were also executed at two homes in Reno where Zaragoza and Perez resided, and from those homes, agents recovered over five more ounces of methamphetamine. A state search warrant was executed at Romero’s residence, where officers recovered approximately 1½ pounds of pure methamphetamine.
Co-defendants Armando Romero, Mario Perez, Javier Zaragoza, Leonela Urbina, and Tony Berliner, also pleaded guilty to drug trafficking charges and were sentenced to prison terms of between three and 10 years.
The case was prosecuted by Assistant U.S. Attorney James E. Keller and investigated by the Drug Enforcement Administration (DEA).Man Charged with Distributing Heroin That Caused Tuscaloosa Overdose Death SurrendersRead the Press Release
BIRMINGHAM -- Two more defendants among 49 indicted in federal court for distributing heroin have turned themselves in to authorities following a Monday law enforcement roundup, announced U.S. Attorney Joyce White Vance and Drug Enforcement Administration Assistant Special Agent in Charge Clay A. Morris.
One of the men who surrendered Tuesday is HAROLD DONNELL MIMS, 31, of Birmingham, whose drug distribution charges include that he sold heroin on Feb. 21 and that "death resulted from the use of said heroin." The charge is related to the death of a 28-year-old man at a Tuscaloosa apartment complex.
The second defendant who surrendered on heroin distribution charges Tuesday is TERRANCE DESHAWN JOHNSON, 34, also of Birmingham.
Mims' and Johnson's arrests bring to 42 the number of defendants now in custody as part of a months-long Organized Crime Drug Enforcement Task Force operation to take heroin dealers off the streets. Seven defendants still are being pursued. One of those seven also is charged with selling heroin that caused a death. That case is related to the death of a 20-year-old University of Alabama student in Tuscaloosa.
The operation is part of a larger multi-agency Heroin Initiative launched early last year to attack the supply side of the growing heroin problem in the Northern District of Alabama. Multiple federal, state and local law enforcement agencies are involved in the ongoing initiative.
The public is reminded that an indictment contains only charges. It is the government's responsibility to prove a defendant's guilt, beyond a shadow of a doubt, at trial.
*NOTE: The total number of defendants in the roundup has been revised from 50 to 49.
Malian National Indicted in Brooklyn Federal Court for Murder of U.S. DiplomatRead the Press Release
An indictment was unsealed today in federal court in Brooklyn, New York, charging Alhassane Ould Mohamed, also known as “Cheibani,” a Malian citizen, with the murder and attempted murder of United States Embassy personnel stationed in Niamey, Niger in December 2000. In addition, a reward of $20,000 was announced for information that leads to the defendant’s capture.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office; Lieutenant General Michael T. Flynn, Director of the Defense Intelligence Agency; and Greg Starr, Principal Deputy Assistant Secretary for Diplomatic Security, U.S. Department of State.
According to the indictment, in the early morning hours of December 23, 2000, the defendant and a co-conspirator accosted a group of employees of the United States Embassy in Niger as they left a restaurant in Niamey, Niger. Carrying a pistol and an AK-47 assault rifle, the two men approached Department of Defense official William Bultemeier as he was about to enter his car, a white sport-utility vehicle bearing diplomatic license plates clearly indicating that it belonged to the United States Embassy. The defendant demanded that Mr. Bultemeier turn over the keys to the diplomatic vehicle and used the pistol to shoot Mr. Bultemeier. Staff Sergeant Christopher McNeely, the Marine Detachment Commander for the United States Embassy in Niger at the time, ran to Mr. Bultemeier’s aid. The defendant’s co-conspirator then fired his AK-47 at Mr. Bultemeier and Staff Sergeant McNeely, hitting them both. After rifling through Mr. Bultemeier’s pockets to get the car keys, the defendant and his fellow assailant drove away in the United States Embassy vehicle.
Mr. Bultemeier died of the injuries inflicted by the gunshot wounds. Staff Sergeant McNeely survived the shooting, and later retired from the Marine Corps as a Master Sergeant.
On September 13, 2013, a grand jury in the Eastern District of New York returned a sealed indictment charging the defendant with one count of murdering an internationally protected person, in violation of Title 18, United States Code, Section 1116(a), and one count of attempting to murder an internationally protected person, in violation of Title 18, United States Code, Section 1116(a). The indictment was unsealed earlier today.
“U.S. diplomat William Bultemeier lost his life while representing his country overseas, and U.S. Marine Christopher McNeely was gravely wounded trying to protect him, all during the brazen armed carjacking allegedly perpetrated by the defendant and his confederate. The sacrifice of Mr. Bultemeier and the courage of Staff Sergeant McNeely in service to their country will not be forgotten. The United States will work ceaselessly to bring those who harm our diplomats and military personnel to justice,” stated United States Attorney Lynch. Ms. Lynch expressed her grateful appreciation to the governments of Niger, Mali and Algeria for their substantial assistance and cooperation in connection with this investigation. The FBI and the State Department’s Bureau of Diplomatic Security are currently coordinating with foreign partners to apprehend the defendant.
“As alleged in the indictment, Mr. Bultemeier was representing the United States Government in Niger when he was callously murdered by the defendant. U.S. Marine Staff Sergeant McNeely, who courageously attempted to come to Mr. Bultemeier’s aid, was seriously injured in the ambush. An attack on U.S. Government personnel, whether domestically or abroad, is an attack on the United States. The perpetrator of these crimes should always be looking over his shoulders; it is only a matter of time before he is apprehended. The FBI will continue working with its partners overseas to ensure that the defendant is captured and brought to justice,” stated FBI Assistant Director-in-Charge Venizelos.
Lieutenant General Flynn expressed his deep gratitude for the long and dedicated service of the FBI, Department of Justice, and Department of State personnel involved in the effort to bring Mr. Bultemeier’s alleged murderers to justice.
“The Bureau of Diplomatic Security has been working with our domestic and international law enforcement partners to locate, pursue, and apprehend Mohamed since his prison escape. With agents in more than 270 U.S. diplomatic missions around the world, Diplomatic Security is uniquely positioned for this effort,” stated Principal Deputy Assistant Secretary Starr.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorney Zainab Ahmad, with assistance from Trial Attorney Jennifer Levy of the Justice Department’s Counterterrorism Section and Trial Attorney Dan Stigall of the Justice Department’s Office of International Affairs.
The Defendant:
ALHASSANE OULD MOHAMED
Age: 42Unseald Indictiment Alhassane Mohamed
Photograph of Victim-William Bultemeier
DOJ/FBI Wanted PosterMaine Resident Pleads Guilty to Engaging <br /> in Cyber “Sextortion” of New Hampshire VictimRead the Press Release
A Maine resident pleaded guilty today in federal court to engaging in a type of cyberstalking known as “sextortion,” announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney John P. Kacavas of the District of New Hampshire.
John Bryan Villegas, 23, of Kittery, Maine, pleaded guilty before U.S. Magistrate Judge Landya B. McCafferty in the District of Maine to a one-count information charging him with interstate stalking.
T he information charges that from July 10-16, 2012, the defendant, while in Kittery, anonymously sent multiple email messages to a New Hampshire resident identified as “Jane Doe.” In those messages, Villegas told Jane Doe that he had “x-rated” photos of her and, as proof, sent her private photos that had been stored on Jane Doe’s stolen laptop computer. Villegas directed Jane Doe to take new photographs and videos of herself engaging in various sexually explicit scenarios and directed her to email the files to him. When she refused, Villegas threatened to “dox” her, meaning that he would “leak” on the Internet the photographs and other personal information about her. Villegas further warned Jane Doe that if she did not provide him with the requested materials, he would send the photographs he already had to individuals throughout New Hampshire, as well as to her ex-husband, boyfriend and a recent former employer.At sentencing, scheduled for Jan. 7, 2014, Villegas faces a maximum sentence of five years in prison.
The case was investigated by the U.S. Secret Service and is being prosecuted by Assistant U.S. Attorney Arnold H. Huftalen of the District of New Hampshire and Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section. The police departments of Kittery and Dover, N.H., and the U.S. Naval Criminal Investigative Service provided valuable assistance.
Lower Brule Man Pleads Guilty to Abusive Sexual Contact with A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that Robert Stricker, age 39, of Lower Brule, South Dakota, appeared before U.S. District Judge Roberto A. Lange on September 17, 2013, and pled guilty to Count I of the Indictment that charged him with Abusive Sexual Contact With a Minor.
The maximum penalty upon conviction is 3 years of imprisonment and/or a $250,000 fine, a mandatory minimum term of 5 years up to life of supervised release, an additional 1 year of supervised release upon revocation, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The conviction stems from an incident that took place in Lower Brule between August 25th and into the early morning hours of August 26, 2012, when Stricker engaged in sexual contact by touching the victim over the clothes. At the time of the offense, the victim was under the age of 16.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Stricker was remanded to the custody of the U.S. Marshals Service pending sentencing, which has been set for December 2, 2013.
Liberal Man Pleads Guilty to Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Liberal, Mo., man pleaded guilty in federal court today to receiving and distributing child pornography over the Internet.
Timothy Curless, 53, of Liberal, pleaded guilty before U.S. Magistrate Judge David P. Rush to receiving and distributing child pornography over the Internet between Nov. 4, 2012 and April 19, 2013.
According to court documents, a law enforcement officer was conducting an undercover investigation into the distribution of child pornography by suspect(s) using file-sharing software. On two separate occasions the officer downloaded images of child pornography from Curless’s computer. Among those images were children who have not reached puberty and a child as young as three years of age. When officers executed a search warrant they learned that Curless had been using his neighbor’s wi-fi network in order to access the Internet.
Under federal statutes, Curless is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cyber Crime Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Law Enforcement Suicide Awareness & Prevention Training Provided to over 200 Law Enforcement in MassachusettsRead the Press Release
BOSTON – The United States Attorney’s Office in partnership with the Massachusetts Department of Public Health, Massachusetts Major City Chiefs, Massachusetts Chiefs of Police Association, Municipal Police Training Committee and In Harm’s Way®, a Department of Justice funded initiative, joined forces today to promote the importance of mental wellness among law enforcement. Held during Suicide Prevention Month, the goal of the training is to raise awareness of the problem of law enforcement suicide, with the hope of making a small step toward changing the culture.
The training, attended by over 200 law enforcement personnel at Regis College, provided an avenue to increase awareness regarding the risk factors and warning signs of law enforcement suicide and provide strategies for prevention, intervention and postvention. Participants included federal Special Agents in Charge, Chiefs of Police, law enforcement supervisors as well as peer support officers, training officers and agency Employee Assistance Program (EAP) coordinators.
“Reducing suicide by law enforcement is dependent upon changing law enforcement's perceptions of mental wellness," said United States Attorney Carmen M. Ortiz. "Law enforcement faces significant amounts of stress on a regular basis. Although they are heroes in their own right, they are not made of armor. As leaders, we must take every opportunity to encourage proactive and preventative measures so they can continue with long and successful careers.”
Dr. Barry Feldman, Director of Psychiatry Programs in Public Safety for UMass Medical School, and James Steffens, Chief Forensic Investigator and SWAT Commander of the Pasco County Sheriff's Office (Fla.), were the key presenters of the day. Yvette Lillge with the U.S. Coast Guard (USCG) spoke about the USCG’s comprehensive wellness program. Will Brown of AllOne Health Resources, a contracted EAP provider for the Massachusetts Interlocal Insurance Association (MIIA), discussed EAP related issues specific to the law enforcement community. Assistant U.S. Attorney Jamie Herbert, Everett Police Chief Steven Mazzie, President of the Major City Chiefs and Natick Police Chief James Hicks, President of the Massachusetts Chiefs of Police Association, provided welcome remarks.
“In this profession, we spend a lot of time training to respond to a whole host of issues that affect the people we serve in our communities. Sometimes, we forget to put the time into ensuring that our own people are ok. Today, we are taking steps in educating our own in hopes that we can aid fellow officers that may be in need of care before a tragedy occurs,” said Chief Mazzie.
“As Police Chiefs and leaders in law enforcement it is incumbent upon us to bring awareness to all of the law enforcement community of the potential danger that exists around suicide and law enforcement officers. This seminar will hopefully educate all that attend that we must think proactively and focus on prevention. Any knowledge gained will be a tremendous benefit to our employees and hopefully prevent a tragedy that can affect our departments for a long time after,” said Chief Hicks.
This training would not have been possible without resources provided by the Massachusetts Department of Public Health, In Harm's Way and Regis College.
Law Enforcement Crackdown on Food Stamp FraudRead the Press Release
Nine individuals have been charged and six arrested during a two day period on food stamp fraud charges, announced United States Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Assistant Special Agent-in-Charge Andrew LaFleur, United States Department of Agriculture, Office of Inspector General, Special Agent-in-Charge Erik Martinez, Internal Revenue Service, Criminal Investigation, Colonel Kriste Kibbey Etue, Director, Michigan State Police andWilliam Hayes, Special Agent- in-Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), to highlight the district’s continued work in combating fraud against the United States Department of Agriculture’s Supplemental Nutrition and Assistance Program (SNAP) (Food Stamp Program).
Today’s announcement comes at the conclusion of a two-day federal search and arrest warrant operation which targeted numerous retailers in Detroit’s Eastern Market Terminal, and other locations in the city, who the government alleges to have been engaged in the illegal practice of exchanging cash for food stamp benefits (trafficking). The principal scheme alleged in a number of the cases involved individuals, known as “runners”, who would obtain food stamp recipients’ EBT (Electronic Benefits Transfer), or Bridge Cards, and take them to the various stores in the Eastern Market Terminal to conduct fraudulent discounting transactions. These transactions totaled millions of dollars during the past year.
The following individuals and Detroit establishments were subjects of the warrants:
Ronnie’s Quality Meats, 1429 Gratiot Avenue;
Embassy Foods, 2478 Riopelle Street;
Ftoni Meat & Produce, 2800 Riopelle Street;
Detroit Wholesale Produce, 2614 Riopelle Street;
Dayton Market, 8002 Dayton Street.Cheech’s Chicken Company, 1429 Gratiot Avenue. Frank Paul Buonbrisco, resident of Saint Clair Shores, Eric Lamont Owensby, resident of Romulus, and Damon Keith Ownensby, resident of Detroit, , all managers of Cheech’s Chicken Company were arrested on criminal complaints charging them with SNAP Fraud.
Gratiot Produce & Grocery Inc., 1429 Gratiot Avenue. Rassoul Ali Jamil, owner of Gratiot Produce & Grocery, and resident of Dearborn, has been named in a criminal complaint charging him with SNAP Fraud.
Greg’s Pallet Company, 1483 Winder Street. Greg King, resident of Detroit, and owner of Greg’s Pallet Company was arrested on a criminal complaint charging him with SNAP fraud, and being a felon in possession of a firearm.
Campus Diner, 5470 Cass Avenue. Anton Vuljaj, resident of Waterford and Owner of Campus Diner, was arrested on a criminal complaint charging him with SNAP Fraud.
Mike’s K&G Deli, 15500 East Warren Avenue. Ghassan Ghazi Shamoon, resident of Livonia and former Manager of Mike’s K&G Deli, was arrested on a criminal complaint charging him with SNAP Fraud.
Dayton Market, 8002 Dayton Street. Waleed Hindo, manager of Dayton Market, resident of Inkster, was arrested on a criminal complaint charging him with SNAP fraud.
Christopher Stanley Jackson, resident of Detroit, and employee of the Eastern Market Terminal, has been named in a criminal complaint charging him with SNAP Fraud.
"Taxpayers in Michigan fund the Food Stamp Program to provide food for the needy, not to create a commodity to be traded for profit," McQuade said. "We will work to ensure that food assistance programs are not abused."
Assistant Special Agent in Charge Andrew LaFleur stated, “SNAP is the largest program in the domestic hunger safety net, and retailers who prey on the poor by illegally purchasing SNAP benefits erode public trust in the program. As we conduct investigations throughout the State of Michigan, we appreciate the support of our Federal and State law enforcement partners and the U.S. Attorney’s Office’s long-term commitment to prosecuting SNAP fraud.”
“This is another positive step in our ongoing effort to combat food stamp fraud,” stated IRS-Criminal Investigation Special Agent in Charge, Erick Martinez. “The activities over the past days demonstrate our collective efforts to enforce the law and ensure public trust."
“The Michigan State Police recognize how important the coordination of law enforcement resources are when working with our federal law enforcement partners,” stated Col. Kriste Kibbey Etue, director of the Michigan State Police. “Bridge Card fraud harms those less fortunate so we are thankful for the support of the USDA and U.S. Attorney’s Office in bringing these cases to justice.”
“Taxpayers fund food stamps as a benefit to those who need assistance,” said William Hayes, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Detroit. “When unscrupulous business owners take advantage of these benefits for their own profit, the taxpayer is cheated and the individuals who really need the help also suffer.”
Prosecution is being coordinated by Assistant United States Attorneys Craig Weier, Christopher Varner, Graham Teall, and Stephen Hiyama.LRGP Member Pleads Guilty to Murder; Attempted Murder of Rival Gang MemberRead the Press Release
BUFFALO, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that Anthony Skinner, 20, of Buffalo, N.Y., pleaded guilty to murder in aid of racketeering activity (RICO) and attempted murder in aid of racketeering involving the shooting of a rival gang member before U.S. District Court Judge Richard J. Arcara. The charges carry a maximum penalty of life in prison, a fine of $500,000 or both.
Assistant U.S. Attorney Thomas S. Duszkiewicz, who handled the case, stated that the defendant was a member of the LRGP Gang. LRGP is named after Lombard, Rother, Gibson and Playter Streets. On August 3, 2009, to increase his position within the LRGP Gang, the defendant murdered Andre Anderson by shooting him at the corner of Peckham and Lombard. Skinner murdered Anderson because he believed Anderson had stolen a shotgun and an assault rifle belonging to LRPG members.On March 15, 2010, the defendant attempted to murder a member of the Bailey Boys, a rival gang. Skinner shot the victim, hitting him in the leg, on Bailey Avenue near Berkshire Avenue. The defendant believed the victim was responsible for the previous murder of LRGP Gang member Eddie Battles on October 9, 2009.
"Today's murder conviction is an example of the extreme violence gang members are willing to commit,” said U.S. Attorney Hochul. “Sometimes the motive is to increase their stature in the group; on other occasions, out of the misguided belief that a particular street or area should belong to them. Whatever the perpetrator may think, the streets of our community belong to the public, and we in law enforcement will not tolerate gang activity in our neighborhoods. We have, in the past several years, removed more than 160 gang members from our city neighborhoods, and these efforts will continue."
The plea is the culmination of an investigation on the part of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig and the Buffalo Police Department Homicide Unit, under the direction of Commissioner Daniel Derenda.
Sentencing is scheduled for February 6, 2014 at 1:00 p.m. before Judge Arcara.Kingston, NY Man Sentenced on Drug ChargesRead the Press Release
BUFFALO, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that John Joseph Stasinski, 35, of Kingston, N.Y., who was convicted of importation of MDMA, also known as Ecstasy, and possession with intent to distribute MDMA, was sentenced to 70 months in prison by U.S. District Court Judge Richard J. Arcara.
Assistant U.S. Attorney Thomas S. Duszkiewicz, who handled the case, stated that the defendant was a passenger on a commercial bus that originated in Toronto, Canada and was bound for New York City on October 20, 2011. At the Peace Bridge, the defendant was referred for secondary inspection after law enforcement officers noticed what appeared to be a bulge protruding from his back. During the secondary inspection, officers recovered two duct taped packages, each contained one kilogram of MDMA. The drugs had a street value of $221,300.
This is the second case this week involving large amounts of synthetic drugs. Earlier this week, eight people were arrested in Rochester and charged with conspiracy to import and distribute significant quantities of Methylone, also known as “Molly.”
The sentencing is the culmination of an investigation on the part of the Customs and Border Protection, under the direction of Acting Director of Field Operations Randy Howe and the Drug Enforcement Administration, under the Brian R. Crowell, Special Agent in Charge, New York Field Division.Justice Department Awards $90 Million to Enhance, Support Tribal Justice and SafetyRead the Press Release
The Department of Justice today announced the awarding of 192 grants to 110 American Indian tribes, Alaska Native villages, tribal consortia and tribal designated non-profits. The grants will provide more than $90 million to enhance law enforcement practices and sustain crime prevention and intervention efforts in nine purpose areas including public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; violence against women; juvenile justice; and tribal youth programs. The awards are made through the department’s Coordinated Tribal Assistance Solicitation (CTAS), a single application for tribal-specific grant programs.
Associate Attorney General Tony West and Office of Justice Programs Assistant Attorney General Karol V. Mason made the announcement during a meeting of northwest tribal leaders with the Attorney General’s Advisory Committee’s Native American Issues Subcommittee (NAIS) in Celilo Village, Ore.
“These programs take a community-based and comprehensive approach to the root causes and consequences of crime, as well as target areas of possible intervention and treatment,” said Associate Attorney General West. “The CTAS programs are critical tools to help reverse unacceptably high rates of crime in Indian country, and they are a product of the shared commitment by the Department of Justice and tribal nations to strengthen and sustain healthy communities today and for future generations.”
“The Department of Justice has a responsibility to make sure its resources are not only available but accessible to tribes in a manner that they have defined and envisioned to meet the needs of their communities,” said Assistant Attorney General Mason. “As we have shown over the last four years, the Department of Justice takes this responsibility very seriously.”
The department developed CTAS through its Office of Community Oriented Policing, Office of Justice Programs and Office on Violence against Women, and administered the first round of consolidated grants in September 2010. Over the past four years, it has awarded 989 grants totaling more than $437 million. Information about the consolidated solicitation is available at www.justice.gov/tribal/. A fact sheet on CTAS is available at www.justice.gov/tribal/ctas2013/ctas-factsheet.pdf.
Thirty U.S. Attorneys from districts that include Indian country or one or more federally recognized tribes serve on the NAIS. The NAIS focuses exclusively on Indian country issues, both criminal and civil, and is responsible for making policy recommendations to the Attorney General regarding public safety and legal issues.
Next month, the Justice Department will hold its annual consultation on violence against native women on Oct. 31st, 2013, in Bismarck, N.D. In addition, an Interdepartmental Tribal Justice, Safety and Wellness Session will be held in Bismarck on Oct. 29-30, 2013. It will include an important listening session with tribal leaders to obtain their views on the Department grants, as well as valuable training and technical assistance.
Today’s announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in tribal communities. A complete list of the 2013 awards is available at www.justice.gov/tribal/docs/ctas-award-list-2013.pdf.
John Philip Morrill, Jr, Sentenced for Assault Upon A Federal Officer, Access Device Fraud and Bank FraudRead the Press Release
JOHN PHILIP MORRILL, JR, age 32, a resident of New Orleans, Louisiana, was sentenced today in federal court by U.S. District Judge Ivan L.R. Lemelle to 57 months imprisonment, after pleading guilty to one count of assault upon a federal officer, two counts of access device fraud and one count of bank fraud, announced U.S. Attorney Dana J. Boente. In addition to the term of imprisonment, Judge Lemelle ordered that MORRILL be placed on 3 years of supervised release following the term of imprisonment, during which time the defendant will be under federal supervision and risks an additional term of imprisonment should he violated any terms of the supervised release. MORRILL was also ordered to pay $20,298.69 in restitution.
According to court documents, on or about September 21, 2012, MORRILL assaulted a special agent of the United States Secret Service who, in the performance of his official duty, was trying to apprehend him. MORRILL also fraudulently obtained goods/services valued at approximately $29,853.16 by using unauthorized credit cards, and by using a PayPal account in association with a fictitious business he claimed to own. MORRILL also defrauded the ASI Federal Credit Union of approximately $2,300, in the form of a personal loan, by using fictitious pay stubs.
The case was investigated by the United States Secret Service, Louisiana State Police and prosecuted by Assistant U. S. Attorney Julia K. Evans.
Inmate Sentenced for Beating Prison GuardRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced today that James Peter Thomas, 32, of Phoenix, Ariz., was sentenced to 176 months in prison and three years of supervised release for assaulting a federal prison guard. Thomas pleaded guilty June 18, 2013.According to evidence presented at the guilty plea, on April 3, 2013, two prison guards found Thomas along with two other inmates drinking a homemade alcoholic beverage in a cell at the U.S. Penitentiary at Pollock, La. One guard led Thomas and the other two inmates out of the cell, but Thomas returned later and began beating the guard who remained in the cell using a padlock tied to a belt. When another guard approached Thomas, he attacked that guard as well. Thomas was subdued after guards used pepper spray on him. The officer Thomas initially attacked was brought to a nearby hospital where he was treated for four days in an intensive care unit. When the attack occurred, Thomas was serving a 161-month combined sentence for one count of brandishing a firearm during a crime of violence and another count of assault resulting in serious bodily injury.
The FBI and the U.S. Bureau of Prisons conducted the investigation. Senior Litigation Counsel Joseph G. Jarzabek prosecuted the case.
Informational: Federal Court Initial AppearancesRead the Press Release
The United States Attorney(s Office announced that during a federal court session in Great Falls, on September 17, 2013, before U.S. Magistrate Judge Keith Strong, the following individuals were arraigned:
RANDY LEE RIDER, a 47-year-old resident of Klamath Falls, Oregon, appeared on charges of conspiracy to possess with intent to distribute methamphetamine and possession with the intent to distribute methamphetamine. He is currently detained. If convicted of these charges, RIDER faces possible penalties of a mandatory minimum of 10 years to life in prison, a $10,000,000 fine, and 5 years supervised release on each charge. Assistant U.S. Attorney Jessica A. Betley is the prosecutor for the United States. The investigation was a cooperative effort between the Federal Bureau of Investigation and the Montana Division of Criminal Investigation.
THOMAS MICHAEL BAD OLD MAN, a 21-year-old resident of Browning, appeared on a charge of burglary. He is currently detained. If convicted of this charge, BAD OLD MAN faces possible penalties of 20 years in prison, a $50,000 fine, and 3 years supervised release. Assistant U.S. Attorney Ryan G. Weldon is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
The defendants pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court Initial AppearancesRead the Press Release
The United States Attorney(s Office announced that during a federal court session in Missoula, on September 17, 2013, before U.S. Magistrate Judge Jeremiah C. Lynch, the following individuals were arraigned:
DARWIN KADE CLINGER, a 38-year-old resident of Gilbert, Arizona, appeared on charges of wire fraud and money laundering. He is currently released on special conditions. If convicted of these charges, CLINGER faces possible penalties of 20 years in prison, a $250,000 fine, and 3 years supervised release on each charge. Assistant U.S. Attorney Timothy J. Racicot is the prosecutor for the United States. The investigation was conducted by the United States Secret Service.
KELLY R. ETZEL, a 52-year-old resident of Missoula, appeared on a charge of distribution of controlled substances. ETZEL is currently released on special conditions. If convicted of this charge, ETZEL faces possible penalties of 20 years in prison, a $1,000,000 fine, and 3 years supervised release. Assistant U.S. Attorney Cyndee L. Peterson is the prosecutor for the United States. The investigation was a cooperative effort between the Drug Enforcement Administration and the Missoula High Intensity Drug Task Force.
The defendants pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney(s Office announced that during a federal court session in Billings, on September 17, 2013, before U.S. Magistrate Judge Carolyn S. Ostby, the following individual was arraigned:
CYD MARIE BABB, a 42-year-old resident of Billings, appeared on (21) counts of obtaining possession of controlled substance by deception. She is currently detained. If convicted of these charges, BABB faces possible penalties of 4 years in prison, a $250,000 fine, and 3 years supervised release on each count. Assistant U.S. Attorney Bryan R. Whittaker is the prosecutor for the United States. The investigation was conducted by the Drug Enforcement Administration Tactical Diversion Squad (includes the Billings Police Department, the Yellowstone County Sheriff's Office, the Montana Division of Criminal Investigation and the Laurel Police Department).
The defendant pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Illegal Alien Sentenced to 2 Years in Prison for Immigration ViolationsRead the Press Release
PITTSBURGH - An individual found by the United States Citizenship and Immigration Service has been sentenced in federal court to 24 months on his conviction of false statement under oath in a proceeding or matter related to naturalization and re-entry into the United States after deportation, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Ernesto Ivan Lazo-Rodriguez, a/k/a Daniel Mancero, 35, formerly from El Salvador.
According to information presented to the court, Lazo-Rodriguez, an alien, was admitted to the United States as a permanent resident on Dec. 2, 1993. Under the alias of Daniel Mancero, Lazo-Rodriguez was arrested and convicted of Aggravated Robbery and Robbery by the State of Texas. Lazo-Rodriguez under the alias of Daniel Mancero, was removed from the United States by United States Immigration and Customs Enforcement on June 27, 2000. Lazo-Rodriguez ultimately returned to the United States and applied for naturalization. At his naturalization interview with U.S. Citizenship and Immigration Service on July 18, 2012, Lazo-Rodriguez denied ever being previously arrested and denied ever being previously removed or deported.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the U.S. Immigration and Custom Enforcement for the investigation leading to the successful prosecution of Lazo-Rodriguez.
Idaho Man Pleads Guilty to Terrorism and Weapons Offenses in Connection with November 2011 Shooting at the White House-Defendant Arrested Within Days of Attack-Read the Press Release
WASHINGTON - Oscar Ramiro Ortega-Hernandez, a 22-year-old man from Idaho Falls, Idaho, who traveled to the District of Columbia and fired at least eight rounds at the White House in November 2011, pled guilty today in federal court to terrorism and weapons offenses.
Ortega-Hernandez pled guilty in the U.S. District Court for the District of Columbia to one count of injury to a dwelling and placing lives in jeopardy within the territorial jurisdiction of the United States, as well as one count of discharging a firearm during a crime of violence. Additionally, he admitted that the attack was a terrorist act, and therefore, a sentencing enhancement under the United States Sentencing Guidelines is applicable.
The guilty plea was announced by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Kathy A. Michalko, Special Agent in Charge of the Washington Field Office of the U.S. Secret Service.
As a result of his plea, Ortega-Hernandez will face a mandatory minimum sentence of ten years of incarceration, and a total of 24 to 27 ½ years of imprisonment pursuant to the United States Sentencing Guidelines. The plea agreement also provides that the United States will dismiss the 17 remaining counts charged in the indictment at the time of sentencing. The Honorable Rosemary M. Collyer scheduled sentencing for Jan. 10, 2014.
“Firing an assault rifle at the White House to make a political statement is terrorism, plain and simple,” said U.S. Attorney Machen. “As we have seen this week, gunmen who come to the nation’s capital bent on violence can inflict terrible damage. This act of cowardice put lives at risk. Today’s plea demonstrates that those who come to the District of Columbia, planning to use violence to send a message, should expect to spend decades behind bars.”
“Through the extensive efforts of the FBI's Violent Crimes Task Force and Evidence Response Team, the bullets that Mr. Ortega-Hernandez has admitted to shooting were recovered from the White House,” said Assistant Director in Charge Parlave. “This expert team's examination of impact points allowed for the FBI to identify the trajectory of the shots, which furthered our investigation into Mr. Ortega-Hernandez and held him responsible for this crime of violence.”
“The collaborative effort between the FBI, U.S. Attorney’s Office and U.S. Secret Service helped ensure the successful outcome of this case,” said Special Agent in Charge Michalko. “It is through effective partnerships such as these that we are able to accomplish our shared goal of ensuring the safety and security of the public.”
According to the government’s evidence, the events unfolded like this:
Beginning in 2010, Ortega-Hernandez made repeated statements to many friends and associates in Idaho about his contempt for the federal government, and he espoused numerous theories regarding how the federal government was seeking to control Americans through Global Positioning System chips, fluoride, and aspartame. He also criticized the federal government for the wars in Afghanistan and Iraq, claiming that the United States was “bullying” other countries to obtain oil. He made numerous statements vilifying the President of the United States, calling him “the devil” and “the anti-Christ,” among other things. On numerous occasions, he told friends and associates that “he was on a mission from God to take out Obama.”
On March 19, 2011, Ortega-Hernandez purchased a Romanian Cugir SA semi-automatic (AK-47-style) assault rifle from an individual in Idaho for $550. He also purchased more than 1,200 rounds of ammunition to use with the weapon. In August 2011, Ortega-Hernandez purchased a scope kit on the Internet and asked a friend to install it on the weapon for him. Over the course of six months, Ortega-Hernandez repeatedly practiced firing the weapon at a desolate crater located on land owned by the Bureau of Land Management outside of Idaho Falls, Idaho.
On Oct. 23, 2011, Ortega-Hernandez made two short videos at the home of one of his friends. In the videos, he praised Osama bin Laden for having the courage to stand up to the United States, and called for a revolution against the federal government. Ortega-Hernandez described himself as a “cold-hearted warrior of God” and declared, “it’s time for Armageddon.”
After making the two videos, Ortega-Hernandez departed Idaho Falls and drove more than 2,000 miles, armed with his Romanian Cugir SA semi-automatic assault rifle with the attached scope, and more than 180 rounds of ammunition.
On Nov. 11, 2011, at approximately 8:50 p.m., Ortega-Hernandez drove southbound on 15th Street NW and made a right turn onto Constitution Avenue NW. Shortly after passing the entrance to the Ellipse, he stopped his vehicle in the middle of the road. With the passenger-side window of his car lowered, he pointed his assault rifle out the passenger-side window of the car and aimed directly at the White House. He fired at least eight rounds at the White House.
Following the shooting, Ortega-Hernandez fled the scene, driving erratically and at a high rate of speed westbound on Constitution Avenue. Moments later, he lost control of the vehicle and crashed near the ramp from Constitution Avenue to the Theodore Roosevelt Bridge in front of the United States Institute of Peace. After efforts to restart the vehicle failed, Ortega-Hernandez fled from the vehicle on foot.
Following the crash, law enforcement launched a multi-jurisdictional search for Ortega-Hernandez. On Nov. 14, 2011, he was photographed riding inside an empty hopper car on a cargo train in the area of Shenandoah Junction, W. Va. The train was headed in a northwest direction away from Washington, D.C. The following day, he was identified standing outside a car wash in South Greensburg, Pa., and asking for a ride. A witness drove him to a store in Greensburg, Pa., where he purchased some items. He appeared on the store’s surveillance video. On Nov. 16, 2011, Ortega-Hernandez returned to the hotel in Indiana, Pa., where he had previously stayed with friends. Upon his return, the hotel staff notified the Secret Service, and the Secret Service coordinated his arrest by the Pennsylvania State Police.
The FBI examined the area around the White House and located approximately eight bullet impact points on the south side of the building on or above the second story. Two bullets were recovered from the White House: one from a window frame on the Truman Balcony and one found on the ground east of the South entrance. The FBI determined that both of those bullets were fired from Ortega-Hernandez’s assault rifle. The FBI also recovered a bullet jacket that was found in the window sill of the Truman Balcony, which was also fired from Ortega-Hernandez’s assault rifle.
At the time of the shooting, two U.S. Secret Service officers were stationed on the northeast section of the roof of the White House. One of the bullets fired by Ortega-Hernandez struck the roof of the White House within approximately 20 feet of where the officers were stationed. The officers each reported hearing approximately six shots fired. In addition, another U.S. Secret Service Officer was stationed at the South Portico underneath the Truman balcony at the time of the shooting. Several of the bullets fired by Ortega-Hernandez struck the Truman balcony directly above where this officer was stationed. This officer heard approximately six to eight shots and the sound of what appeared to be debris falling from above. The officer took cover behind the stairwell, drew a firearm, and readied a shotgun.
In announcing the plea, U.S. Attorney Machen, Assistant Director in Charge Parlave and Special Agent in Charge Michalko expressed their appreciation to all those who diligently investigated this case from the FBI’s Washington Field Office, the U.S. Secret Service, and the U.S. Park Police. They also acknowledged the assistance provided by the Pennsylvania State Police; the Arlington County, Va. Police Department; the U.S. Attorney’s Office for the Western District of Pennsylvania; the FBI Laboratory at Quantico, Va.; FBI field offices in Pittsburgh and Salt Lake City, including the Idaho Falls Resident Agency, and Secret Service field offices in Pittsburgh, Salt Lake City, and Boise, Idaho. Additionally they thanked those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialists Jenifer Rowe and Devron Elliott, Victim/Witness Coordinator Dawn Tolson-Hightower, and Litigation Technology Specialist Leif Hickling.
Finally, they commended the efforts of Special Assistant U.S. Attorney George P. Varghese and Assistant U.S. Attorney Alessio D. Evangelista of the National Security Section of the U.S. Attorney’s Office for the District of Columbia, who are prosecuting the case.
13-320Henry Anthony Combs Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on September 18, 2013, before U.S. District Judge Donald W. Molloy, HENRY ANTHONY COMBS, a 56-year-old resident of Humboldt County, California, was sentenced to a term of:
- Probation: 5 years, with 6 months home arrest and electronic monitoring
- Special Assessment: $100
COMBS was sentenced in connection with his guilty plea to conspiracy to possess with the intent to distribute marijuana.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
From the summer of 2008, until the summer of 2010, Joseph Chartraw organized and profited from a marijuana distribution network across Montana. Chartraw had numerous distributors and drug couriers in Montana. Chartraw's sources of supply were identified by law enforcement as being in California. Chartraw used his cellular telephone to communicate with everyone in his distribution organization - including some of his sources of supply in California.
Chartraw's original connection to a group of marijuana growers and distributors in California was Kirk Felhaber. Felhaber would bring together multiple growers at his home whenever Chartraw or one of his couriers would be arriving in California. Felhaber would have several individuals bring their marijuana to his home for redistribution to Chartraw or one of his couriers. COMBS was one of the sources of supply for Chartraw through Felhaber from the summer of 2008 until approximately the spring of 2009. COMBS knew he was supplying marijuana for resale to Felhaber and received money for each of the transactions. Felhaber was the primary contact for the group and Chartraw until Felhaber and Chartraw had a falling out over a vehicle title.
The evidence would show that COMBS provided at least more than 2.5 kilograms of marijuana but less than 5 kilograms of marijuana to Felhaber for redistribution to Chartraw during the course of his involvement in the conspiracy.
Chartraw and Felhaber pled guilty to federal charges.
The investigation was conducted by the Billings Big Sky Safe Streets Task Force.
Hartford Drug Dealer Sentenced to More Than Five Years in Prison for Illegally Possessing FirearmsRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that OBED FRANCO, also known as “Obie,” 23, of Hartford, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 66 months of imprisonment, followed by five years of supervised release, for illegally possessing firearms.
According to court documents and statements made in court, FRANCO was a member of a drug trafficking organization that sold heroin in the Hartford area. One of FRANCO’s heroin customers held a Connecticut pistol permit. On five occasions between February 2011 and May 2011, FRANCO and others drove the drug customer to a federally-licensed firearms dealer in East Hartford and identified a total of eight guns for the customer to purchase. FRANCO and his other co-conspirators, including Wilson Morillo, then provided the customer with money to complete the purchases. After purchasing the firearms and leaving the store, FRANCO and his co-conspirators gave the drug customer heroin and cash in exchange for the firearms.
In May 2011, FRANCO also purchased a firearm from another heroin customer in exchange for cash and heroin.
FRANCO has been detained since his arrest on June 15, 2011, on unrelated state charges. On June 26, 2013, he pleaded guilty to one count of possession of a firearm in furtherance of a drug trafficking crime.
On May 28, 2013, Morillo pleaded guilty to the same charge. He awaits sentencing.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Jonathan S. Freimann and Special Assistant U.S. Attorney Natasha Dye.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]H. Ty Warner Charged with Tax Evasion for Allegedly Hiding Funds in Secret Offshore Account with Swiss Bank UBSRead the Press Release
CHICAGO — The creator of Beanie Babies and other plush animal toys was charged today with federal tax evasion for allegedly failing to report income he earned in a secret offshore financial account he held with UBS, a global financial services firm headquartered in Switzerland. The defendant, H. TY WARNER, was charged in a felony information filed this morning in U.S. District Court.
Warner, 69, of west suburban Oak Brook, is the sole owner of TY Inc., a Westmont-based company that designs and sells plush toy animals including Beanie Babies. Warner, who also owns other business interests, will be arraigned in U.S. District Court on a date yet to be determined.
Through his attorney, Warner authorized the government to disclose that he is cooperating with the Internal Revenue Service and will plead guilty to the charge.
“Regardless of wealth, everyone must pay taxes on all of their income, not just the amount they choose to report. The charge alleges that Warner went to great lengths to hide from his accountants and the IRS more than $3.1 million in foreign income generated in a secret Swiss account. Such conduct invites federal prosecution,” said Gary S. Shapiro, United States Attorney for the Northern District of Illinois.
“We encourage taxpayers to think of the serious consequences, including possible criminal penalties, for willfully presenting false information on their federal tax returns. All taxpayers must honor their obligation to report all of their income and pay all of the taxes they owe,” said James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.
Warner is the second taxpayer charged in Federal Court in Chicago in connection with an ongoing investigation of U.S. taxpayer clients of Union Bank of Switzerland (UBS) and other overseas banks that hid foreign accounts from the Internal Revenue Service. In February 2009, UBS entered into a deferred prosecution agreement with the United States, admitting that it helped taxpayers hide accounts from the IRS. As part of the agreement, UBS provided the government with the identities of, and account information for, certain customers of UBS’ U.S. cross-border banking business.
According to the charging document, Warner maintained a secret offshore account with UBS starting in 1996. In late 2002, Warner transferred the assets in his UBS account to a second Swiss financial institution, Zürcher Kantonalbank, when the account had a balance of approximately $93,630,083.
In 2002, Warner earned approximately $3,161,788 in gross income through investments held in his UBS account, according to the charge. Warner allegedly committed tax evasion for that year by failing to tell his accountants about that income and by failing to report that income or the existence of the UBS account in his 2002 form 1040 filed with the IRS in October 2003, as well as failing to report that same income on an amended 2002 form 1040 filed in November 2007. The charge states Warner initially failed to pay $1,257,064 in income tax on the unreported income, but his amended 2002 return reduced the amount of additional tax that he failed to pay to $885,300. By omitting his UBS income, Warner falsely reported his total income in 2002 was $49,124,095, according to the charge.
Tax evasion carries a maximum penalty of five years in prison and a $250,000 fine. In addition, a defendant convicted of tax offenses faces mandatory costs of prosecution and remains civilly liable to the government for any and all back taxes, as well as a potential civil fraud penalty of up to 75 percent of the underpayment plus interest. Federal tax law requires U.S. taxpayers pay taxes on all income earned worldwide. Taxpayers must also report foreign financial accounts if the total value of the accounts exceeds $10,000 at any time during the calendar year. A deliberate failure to file a Report of Foreign Bank and Financial Accounts (FBAR) with the IRS can result in a civil penalty of up to 50 percent of the amount in the account at the time of the violation. If convicted, the Court must determine a reasonable sentence to be imposed under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant U.S. Attorney James Conway.
The public is reminded that the information contains only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Information
Greece Man Pleads Guilty to Online Enticement of a MinorRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Terrance Junot, III, 37, of Greece, N.Y., pleaded guilty to online enticement of a minor before U.S. District Court Judge Frank P. Geraci. The charge carries a maximum penalty of life in prison with a mandatory minimum period of 10 years in prison, a fine of up to $250,000, or both.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that the defendant engaged in a series of sexually explicit online communications with a 13 year old child who was known to him. During those communications, Junot persuaded the child to produce sexually explicit photographs of herself which she then sent to him over the internet. The defendant also sent sexually explicit photos of himself to the child during these chats.
The case came to the attention of law enforcement after the child's mother found naked photos of the defendant on her child's phone. The parent recognized the defendant as someone who was known to the family, and took the phone to the Greece Police who began an investigation. In the course of their investigation, Greece Police executed several search warrants and searched the victim's cell phone. Following their discovery of sexually explicit pictures of the victim, Greece Police contacted the FBI Cyber-Crimes Task Force for assistance.
“Our Office frequently tells parents and guardians to monitor the computer and cell phone usage of their children,” said U.S. Attorney Hochul. “The mother of the victim in this case did just that and now a predator will not be allowed to victimize any other children. I urge all parents to be on alert. If you see something, please say something, and, as in this case, we will do something.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea is the culmination of an investigation on the part of Officers of the Greece Police Department, under the direction of Chief Todd Baxter, and Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig.
Sentencing is set for January 10, 2014 at 3:30 p.m. before Judge Geraci.Garland, Texas, Man Sentenced to 48 Months in Federal Prison for Failing to Register as A Sex OffenderRead the Press Release
DALLAS — Upwardly departing from the U.S. Sentencing Guidelines, U.S. District Judge Jorge A. Solis sentenced James K. Jenkins, 38, most recently of Garland, Texas, to 48 month in federal prison. Jenkins pleaded guilty in March 2013 to one count of failure to register as a sex offender. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Officers with the Garland, Texas, police department arrested Jenkins in October 2012 on a warrant out of DeKalb County, Georgia, for failure to register as a sex offender and a probation violation. Jenkins had been convicted in DeKalb County for statutory rape in 2002 and was required to register as a sex offender for life. After he served the sentence in this case, Jenkins registered as a sex offender, in DeKalb County, in 2006 and 2007. Sometime between September 1, 2012 and October 1, 2012, Jenkins moved to Texas, and failed to register as a sex offender, even though he resided in Texas for more than 10 days. In fact, Jenkins advised that he’d lived in Tennessee, Louisiana and Texas and had failed to register in any of those states.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the 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 sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the Garland Police Department and the U.S. Marshals Service. Assistant U.S. Attorney Camille Sparks prosecuted.
Four Men Charged in Counterfeit Sports Jersey Scheme on Wildwood BoardwalkRead the Press Release
NEWARK, N.J. – Two Atlantic County men were arrested today on charges that they participated in a multi-year conspiracy to traffic in counterfeit merchandise, including professional sports teams’ jerseys, U.S. Attorney Paul J. Fishman announced.
Brett Strothers, 32, of Egg Harbor Township, N.J,, and his brother Evan Strothers, 28, of Mays Landing, N.J., were arrested at their homes this morning by agents of U.S. Immigration and Customs Enforcement, Homeland Security Investigations, on a complaint charging both men with conspiracy to traffic in counterfeit goods. Both men are scheduled to appear before U.S. Magistrate Cathy L. Waldor in Newark federal court today. Also charged in the complaint were Joseph Cuozzo, 44, a United States Citizen residing in Thailand, and Haresh Aildasani, 27, an Indian Citizen residing in the People’s Republic of China (PRC).
According to the Complaint:
From 2010 to 2012, Brett and Evan Strothers purchased large quantities of counterfeit National Basketball Association (NBA) and National Football League (NFL) sports jerseys, which they used as prizes in several different basketball and football tossing amusement park games they operated on the Wildwood and North Wildwood boardwalk. The games enticed customers to pay for the chance to win a purported authentic NBA or NFL jersey by shooting basketballs into a hoop or tossing footballs through a target at various stands.
Brett and Evan Strothers purchased the counterfeit sports jerseys from, among others, Couzzo, who operated as a middleman between the defendants and Aildasani, who manufactured the jerseys in the PRC and sold them to numerous customers.
Between 2010 and 2012, the defendants Brett and Evan Strothers allegedly purchased at least 16,700 counterfeit NBA and NFL jerseys from defendant Cuozzo, who in turn purchased the jerseys from defendant Aildasani and kept a portion of money for himself. The Manufacturer Suggested Retail Price for authentic versions of these jerseys is estimated at approximately $4 million.
The count with which the defendants are charged carries a maximum penalty of 10 years in prison and a fine of up to $2 million, or twice the gross amount of gain or loss sustained by any victim.
U.S. Attorney Fishman credited special agents of HSI, under the direction of Special Agent in Charge Andrew M. McLees in Newark, with the investigation leading to today’s arrests. He also thanked officers of U.S. Customs and Border Protection, under the direction of Director of New York Field Operations Robert E. Perez their role in the case.
The government is represented by Assistant U.S. Attorney Josh Hafetz of the U.S. Attorney’s General Crimes Unit in Newark.
The charges and allegations contained in the Complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
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Strothers, Brett et al. Complaint
Exhibit 1 PhotoFormer Union President Pleads Guilty to Failure to Maintain RecordsRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Mark Valerio, 57, of Macedon, N.Y., pleaded guilty to violating a provision of the Labor Management Reporting and Disclosure Act before U.S. Magistrate Jonathan W. Feldman. The defendant faces up to one year in prison and a fine of up to $10,000. The charge also carries a thirteen year prohibition from holding a leadership role in a labor organization.
Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that between 2003 and 2012, the defendant was President of the International Brotherhood of Electrical Workers (IBEW) Union, Local 249, in Geneva, N.Y. As Local 249 President, Valerio also held a position as an officer on the executive board of IBEW System Council U-7, a labor organization affiliated with four IBEW locals in matters of collective bargaining and contract negotiations.
During this time, the defendant prepared and submitted duplicate claims for reimbursement of travel expenses to both Local 249 and IBEW System Council U-7. Valerio also claimed reimbursement from the unions for instances when he was already being compensated by his employer. The defendant knew that he had an obligation to submit true and accurate documentation regarding his expense records and that he recklessly disregarded that obligation.As a result, Valerio obtained reimbursements from the IBEW in the amount of $39,049 to which he was not entitled. The defendant resigned as the President of Local 249 in 2012.
Sentencing is set for December 2, 2013 at 10 a.m., before Magistrate Feldman.
The plea is the culmination of an investigation on the part of Investigators with the United States Department of Labor, Office of Labor Management Standards, under the direction of Acting District Director Mark Neylon.Former U.S. Army Officer “Hitman” Sentenced for in Murder-for-Hire PlotRead the Press Release
LAREDO, Texas – Kevin Corley, 30, the convicted “hitman” involved in a murder-for-hire plot and drug conspiracy has been ordered to federal prison for 13 years, announced United States Attorney Kenneth Magidson.
Corley, of Columbia, S.C., pleaded guilty last September to conspiracy to commit murder for hire, conspiracy to possess with intent to distribute cocaine and marijuana and for possessing a firearm during in and in relation to a crime of violence. He is the last of seven co-defendants to be sentenced in a conspiracy involving some of the defendants in murder-for-hire and all of them in a drug trafficking conspiracy.
Today, Senior U.S. District Judge George P. Kazen handed Corley 96 months for the conspiracy charges and a consecutive sentence of 60 months for the use of a firearm during the commission of a violent crime for a total of 13 years in federal prison. He was also ordered to pay a $5,000 fine. In pronouncing the sentence, Judge Kazen noted that although Corley became the leader in the overall conspiracy by getting the team together, selling armored vests, purchasing assault rifles and giving them to undercover agents, he ultimately took responsibility by pleading guilty and assisted in the convictions of others as a very effective witness at trial.
Samuel Walker, 29, also a former Army Soldier of Sharon, Miss., and Calvin Epps, 29, of Hopkins, S.C., were convicted following the jury trial in which Corley testified. The remaining four - Marcus Mickle, 21, and Robert Corley, 24, both of Columbia, S.C.; Shavar Davis, 30, of Denver, Colo.; and Mario Corley, 41, of Saginaw, Texas - all pleaded guilty and have been sentenced to terms ranging from 30 months to 15 years in prison for their roles in the overall conspiracy.
The investigation began in January 2011, when Mickle began negotiations with persons whom he thought were members of the Los Zetas Cartel, actually undercover Drug Enforcement Administration (DEA) agents, to purchase marijuana in return for stolen weapons. According to the testimony of DEA agents, the discussions concerned the distribution of marijuana in the Columbia, S.C., area and how Mickle and Epps told undercover agents about a friend in the military who could provide military weapons to them. The agents were later introduced to Kevin Corley who identified himself as an active duty officer in the Army responsible for training soldiers. According to the agents’ testimony, Kevin Corley offered to provide tactical training for cartel members and to purchase weapons for the cartel.
Over the next several months, Kevin Corley continued to communicate with undercover agents regarding the services he could provide the cartel as a result of the training, experience and access to information and equipment items afforded him as an active duty soldier.
On Jan. 7, 2012, Kevin Corley traveled to Laredo and met with undercover agents. During this meeting, he claimed he could raid a ranch located at or near Laredo containing 20 kilograms of cocaine and conduct a contract killing there. Kevin Corley proposed a $50,000 fee for this work but stated he would need to bring his own team. After further negotiation, Kevin Corley stated he would accept a $50,000 fee and five kilograms of cocaine.During March 2012, Kevin Corley allegedly arranged for 300 pounds of marijuana to be delivered to Mario Corley in Charleston, S.C. Kevin Corley also assisted in brokering 500 pounds of marijuana and five kilograms of cocaine for Mickle and Epps and discussed with agents the distribution of these narcotics in South Carolina, Texas and Colorado.
Agents testified that on March 5, 2012, Kevin Corley delivered two AR-15 assault rifles with scopes, an airsoft assault rifle, five allegedly stolen ballistic vests and other miscellaneous equipment to an undercover agent in Colorado Springs, Colo., in exchange for $10,000. At the meeting, Kevin Corley and the undercover agent again discussed the contract killing and the retrieval of the cocaine which was to occur on March 24, 2012. Kevin Corley stated he had purchased a new Ka-Bar knife to carve a “Z” into the victim’s chest and was planning on buying a hatchet to dismember the body. He further told agents he had discussed the plan with Walker, that Walker was going to be a part of the team that would come to Texas to commit the murder for hire and that he and Walker had gone to the rifle range and test-fired Walker’s scoped rifle.
On March 24, 2012, Kevin Corley, Walker and Davis traveled to Laredo and met with undercover agents, at which time they discussed the location of the intended victim, the logistics of performing the contract kill and their respective roles. Walker said he could hit the intended victim from more than two football fields away with his rifle. Immediately thereafter, the three were arrested, during which time a fourth suspect was shot and killed. A subsequent search of the vehicle in which Corley and the other co-conspirators arrived revealed two semi-automatic rifles with scopes, one .300 Caliber Weatherby Magnum bolt-action rifle with a scope and bipod, one hatchet, one Ka-Bar knife, one bag of .223 caliber ammunition and one box of .300 caliber ammunition. During the trial, Kevin Corley testified that the .300 caliber Weatherby Magnum rifle and ammunition belonged to Walker and that Walker was supposed to take the long-distance shot at the intended victim with this weapon.
Meanwhile, also on March 24, 2012, undercover agents met with Epps and Mickle in Columbia, S.C. at a motel parking lot. During this meeting, Epps and Mickle discussed with the undercover agent the pre-arranged purchase of five kilograms of cocaine and 500 pounds of marijuana for which Epps and Mickle were supposed to provide $50,000 as an initial payment. During the meeting, Epps and Mickle were arrested. Epps had a loaded Raven Arms Model MP-25 handgun in his right cargo pants pocket, while Mickle had a loaded Springfield Armory XD-40 handgun in the right side waistband of his pants as well as a loaded spare magazine.
On this same date, Mario Corley, having traveled from Texas to Columbia, S.C., to pick up Robert Corley, proceeded to Summerville, S.C. (near Charleston) to meet with persons who Mario and Robert Corley believed would provide them with 300 pounds of marijuana. Robert Corley admitted to making an agreement with Mario Corley to go to Charleston to pick up “a bunch of weed,” and test the quality of the marijuana, in addition to helping Mario Corley load the bundles of marijuana into Mario Corley’s white van. At the time of his plea, Robert Corley stated he was expected to be paid a pound of marijuana from Mario Corley.
Kevin Corley was permitted to voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges was conducted by the DEA and the FBI with the assistance of U.S. Army Criminal Investigation Division. The case is being prosecuted by Assistant United States Attorneys Roberto Ramirez and Jody Young.
Former Teacher Sentenced on Heroin Distribution ChargeRead the Press Release
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WHEELING, WEST VIRGINIA - A former teacher and basketball coach
from Marshall County was sentenced today on heroin distribution charges.United States Attorney William J. Ihlenfeld, II, announced that AMANDA
ALLISON, age 27, of Cameron, West Virginia, was sentenced to 30 months of imprisonment and 3 years of supervised release as a result of her conviction for “Conspiracy to Distribute Heroin.” ALLISON had previously admitted to conspiring to sell heroin between January and April of 2013.ALLISON was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The case was prosecuted by Assistant United States Attorney Randolph J. Bernard and investigated by the Marshall County Drug Task Force, which consists of officers and agents from the Moundsville Police Department, the Marshall County Sheriff’s Department and the Drug Enforcement Administration.
Former Mingo Pill Mill Office Manager Sentenced to Prison TimeRead the Press Release
CHARLESTON, W.Va. – Myra Sue Miller was sentenced today to six months in federal prison for her role in operating a former Mingo County-based pill mill, U.S. Attorney Booth Goodwin announced. Miller, 50, of South Williamson, Ky., previously pleaded guilty in March to misusing a Drug Enforcement Administration (DEA) registration number that did not belong to her. Miller’s sentence was handed down today by United States District Judge John T. Copenhaver, Jr. in federal court in Charleston.
U.S. Attorney Goodwin said, “Every time we put a pill dealer out of business or shut down a pill mill, it’s a big step toward getting this problem under control.”
In February 2010, Miller used the DEA registration number assigned to former Mingo County doctor William F. Ryckman to illegally distribute the painkiller hydrocodone, as well as the prescription drug alprazolam, also known as “Xanax.” Miller was the office manager at Mountain Medical, formerly located in Williamson, W.Va. The clinic was Dr. Ryckman’s primary medical practice at the time.
Dr. Ryckman, 66, was convicted in March 2012 of conspiracy to misuse a DEA registration number and sentenced to six months in prison followed by one year of supervised release.
During the scheme, on February 17, 2010, Miller faxed several blank “doctor’s lists” from Ryckman’s Williamson office to Dr. Ryckman, who was residing in Pennsylvania. To further the scheme, Ryckman signed and faxed the lists and sent them back to Miller at his office in Mingo County. With Ryckman’s authorization, the lists were improperly used to prescribe painkillers to people who were not evaluated or seen by a physician.
As the office manager, Miller directed individuals under her authority to fill in blank doctor’s lists with information that included patients' names, prescription type, strength, and quantity. The lists were then faxed to local pharmacies in order to be filled and dispensed. Miller also admitted that while Dr. Ryckman was absent from his Williamson office on February 18 and 19, 2010, she accepted cash fees from individuals who arrived at Mountain Medical. She later directed individuals to one of at least two pharmacies located in Mingo County to obtain prescriptions for hydrocodone and Xanax.
At sentencing, the Court ordered Miller to pay a $5,000 fine. Miller was also sentenced to one year of supervised release.
Miller agreed to forfeit her interest in the clinic building and personal assets totaling $475,823.75.
This case was investigated by the Drug Enforcement Administration, the West Virginia State Police, the Department of Health and Human Services – Office of Inspector General, and the FBI. Assistant United States Attorney John Frail handled the prosecution.This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Former Fortune 500 Top Executive of Miami Beach Manufacturing Company Is Sentenced in Multi-Million Dollar Investment SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Claudio Eleazar Osorio, a/k/a “Claudio Osorio Rodriguez,” 54, of Aventura, was sentenced today by U.S. District Court Judge William Dimitrouleas to 150 months imprisonment and three years of supervised release on two counts of conspiracy to commit wire fraud, and 120 months imprisonment and three years of supervised release on one count of conspiracy to commit money laundering. The terms of imprisonment run concurrently. Osorio was also ordered to pay $23,000,000 in restitution to the victims, and to forfeit his interest in the marital home. Osorio had pled guilty earlier this year, in February 2013.
According to documents filed with the court and statements made in court during the plea, Osorio was the owner and majority shareholder of Innovida Holdings, LLC, a Florida limited liability company, located in Miami Beach. Innovida manufactured fiber composite panels for the construction industry for use in residential, commercial, governmental, and other structures without the need for cement, steel or wood. Innovida purported to be a rapidly expanding and financially strong international operation with facilities in the United States, the United Arab Emirates, Germany, Angola, Tanzania, and other countries.
According to statements made in court, between March 2007 and March 2011, Osorio offered and sold shareholder interests and joint-venture partnerships in Innovida to select individuals and groups, raising more than $40,000,000 from approximately ten (10) investors and investment groups in the United States and abroad. Osorio solicited and recruited investors by making materially false representations and concealing and omitting material facts regarding, among other things, the profitability of the company, the rates of return on investment funds, the use of investors’ funds and the existence of a pending lucrative contract with a third-party entity. Osorio received moneys from investors based on these misrepresentations. Osorio used investor monies for his and his co-conspirators’ personal benefit and to maintain and further the fraud scheme.
According to statements made in court, the second conspiracy to commit wire fraud related to a $10,000,000 loan that Osorio and another applied for and obtained a from the Overseas Private Investment Corporation (“OPIC”), a U.S. government agency that promotes U.S. government investments abroad to foster the development and growth of free markets. The purported purpose of the loan was to build a manufacturing facility and 500 homes in Haiti (“the Haiti project”) for displaced families in the aftermath of the January 2010 earthquake. Osorio and others made materially false representations and omissions concerning, among other things, the profitability of Innovida, the purported use of the loan proceeds, an equity contribution to be made by Innovida, and contracts that Innovida purportedly had obtained with third-party vendors. Osorio used the OPIC loan proceeds to repay investors and for his and his co-conspirators’ personal benefit and to further the fraud scheme.
Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorney Lois Foster-Steers.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Department of Veterans Affairs Official Admits Fraud Taking $1.2 Million in KickbacksRead the Press Release
TRENTON, N.J. – A former Department of Veterans Affairs (VA) employee who worked as a supervisory engineer at the VA’s campus in East Orange, N.J., today admitted accepting more than $1.2 million in kickback payments in connection with VA contracts awarded to companies with which he had relationships, and to engaging in a scheme to defraud the VA by claiming one of those companies was owned by a service-disabled veteran when it was not, New Jersey U.S. Attorney Paul J. Fishman announced.
Jarod Machinga, 43, of Hopewell, N.J., pleaded guilty today to an information charging him with one count of honest services wire fraud, one count of wire fraud and one count of engaging in a monetary transaction in criminally derived property. Machinga entered his guilty plea before U.S. District Judge Mary L. Cooper in Trenton federal court.
“When trusted with the important work of serving and honoring our nation’s veterans, Jarod Machinga took the opportunity to serve himself,” said U.S. Attorney Fishman. “Taking more than $1 million in kickbacks – including money meant for service-disabled veteran-owned businesses – not only violates the law, it violates our sense of decency.”
“Jarod Machinga’s criminal behavior violated the public trust, betrayed the best interests of disabled veteran entrepreneurs and besmirched the reputations of the overwhelming majority of the employees in the Department of Veterans Affairs who are dedicated to serving veterans,” said Department of Veterans Affairs Inspector General George Opfer. “We will spare no effort to protect the interests of veterans and taxpayers in identifying and prosecuting those who seek to criminally enrich themselves by virtue of their employment.”
According to documents filed in this case and statements made in court:
In his position as a supervisory engineer, Machinga had the authority and influence to direct certain VA construction contracts to particular companies. Machinga partnered with a person – identified in the information as “Individual 1” – to set up three companies that could be used to obtain VA work, then directed more than $6 million worth of VA construction projects to those companies. Machinga admitted he accepted approximately $1,277,205 in kickbacks in exchange for his official action and influence between 2007 and July 2012.
Congress has established a program through which certain VA contracts are reserved for small businesses that are owned and controlled by service-disabled veterans. One of Individual 1’s companies entered into such a contract with the VA after Machinga falsely represented to the VA that it was a service-disabled veteran-owned small business – even though Individual 1 was not a veteran. Machinga then used his official position and influence at the VA to award such a contract to Company 1. The company was paid more than $3 million by the VA in connection with the contract.
Machinga also admitted that for many of the projects awarded to Individual 1’s companies, he recruited other contractors to perform the work so the companies were able to keep the money paid to them without having to incur the expense of actually completing the projects.
The two wire fraud counts each carry a maximum potential penalty of 20 years in prison and a $250,000 fine or twice the gross gain or loss from the offense. The monetary transaction count carries a maximum potential penalty of 10 years in prison and a fine equal to the greatest of: $250,000, twice the pecuniary gain or loss or not more than twice the amount of the criminally derived property involved in the transaction. Sentencing is scheduled for Jan. 15, 2014.
U.S. Attorney Fishman praised special agents of the Department of Veterans Affairs, Office of Inspector General, under the direction of Special Agent in Charge Jeffrey Hughes; the FBI, under the direction of Special Agent in Charge Aaron T. Ford; and IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, for their work leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Vikas Khanna of the U.S. Attorney’s Office Special Prosecutions Division and Peter Gaeta of the U.S. Attorney’s Office Asset Forfeiture and Money Laundering Unit in Newark.
13-380Defense counsel: Fortunato N. Perri Jr., Philadelphia
Machinga Information
Former County Prosecutor Convicted of Oxycodone Distribution Six Others Appear for Hearings in Martinsburg Federal CourtRead the Press Release
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MARTINSBURG, WEST VIRGINIA - A former assistant county prosecutor was
convicted in federal court for the illegal distribution of painkillers, according to United States Attorney William J. Ihlenfeld, II.JAMES CASIMIRO, III, age 37, of Ranson, West Virginia, and a former assistant prosecuting attorney in Jefferson County, WV, entered a plea of guilty to “Distribution of Oxycodone” and now faces up to 20 years in prison. CASIMIRO admitted to obtaining the painkillers from a cancer patient and then selling them for profit. The investigation involved the use of a confidential informant who made purchases of oxycodone tablets from CASIMIRO in May and June of 2013, a time period during which he was still employed as a prosecutor.
“Because of the defendant’s occupation we moved quickly to investigate and to prosecute this matter,” said U.S. Attorney Ihlenfeld. “If someone who is sworn to uphold the law is instead breaking the law then we must move swiftly to preserve the integrity of the criminal justice system.”
The CASIMIRO case was investigated by the Federal Bureau of Investigation and the Eastern Panhandle Drug & Violent Crimes Task Force. It was prosecuted by Assistant U.S. Attorney Paul T. Camilletti.
In another matter, Ihlenfeld announced that two Hedgesville residents were convicted for the sale of heroin.
DANIEL ROBERT MYERS, JR., age 35, and JORDAN BROOKE GAMBRELL, age 20, both of Hedgesville, West Virginia, entered pleas of guilty to “Possession with Intent to Distribute Heroin” on November 15, 2012. MYERS, who is in custody, and GAMBRELL, who is free on bond, each face up to 20 years in prison when sentenced.
The MYERS & GAMBRELL cases were prosecuted by Assistant United States Attorney Jarod J. Douglas and investigated by the Eastern Panhandle Drug & Violent Crime Task Force, consisting of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, and the Berkeley County Sheriff’s Department.
BRIAN NICKENS, age 38, of Shenandoah Junction, West Virginia, entered a plea of guilty to “Drug User in Possession of a Firearm” on March 26, 2012. NICKENS, who is in custody pending sentencing faces up to 10 years in prison. This case was investigated by the Jefferson County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives, and prosecuted by Camilletti.
ERIC SCOTT TAYLOR, age 34, of Gerrardstown, West Virginia, entered a plea of guilty to “Distribution of Marijuana” on July 31, 2013. TAYLOR, who is free on bond pending sentencing, faces up to 5 years in prison. This case was prosecuted by Douglas and investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives.
KEIRA LEE WIDDOWS, age 31, of Falling Waters, West Virginia, and formerly of Hagerstown, Maryland, was sentenced to 15 months in prison and 2 years of supervised release for “False Statement in Acquisition of a Firearm” on January 10, 2012. WIDDOWS, who is free on bond, will self-report to the designated Federal Institution. This case was investigated by the Washington County, Maryland, Sheriff’s Department, the Maryland State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives, and prosecuted by Camilletti.
JASON SWISHER, age 30, and JENNIFER HILEMAN, age 30, of Elizabethtown, Pennsylvania, were sentenced to 33 months in prison and 3 years of supervised release and 16 months in prison and 3 years of supervised release, respectively, for “Conspiracy to Distribute Heroin” in the Berkeley County, West Virginia, area. SWISHER was remanded to the custody of the United States Marshal pending designation to a Federal institution and HILEMAN will self-report to the designated Federal institution in October. This case was prosecuted by Assistant United States Attorney Robert H. McWilliams, Jr. and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Former Cook County Official Convicted of Steering Four Contracts Under $25,000 in Return for Nearly $35,000 in KickbacksRead the Press Release
CHICAGO ― A federal jury today convicted a former Cook County official of steering four county contracts, each just under $25,000, to four acquaintances and then taking a portion of the contract payments as kickbacks from each of them, totaling $34,700. The defendant, EUGENE MULLINS, who was director of the Cook County Department of Public Affairs and Communications between March 2008 and November 2010, was found guilty by jurors who began deliberating Monday afternoon after a week-long trial in U.S. District Court.
Mullins, 49, of Chicago, a former Chicago police officer, was convicted of three counts of wire fraud and four counts of accepting kickbacks. He was acquitted of one count of wire fraud. He faces a maximum penalty of 20 years in prison on each count of wire fraud and 10 years in prison on each count of accepting a kickback, and a maximum $250,000 fine on each count. U.S. District Judge Amy St. Eve scheduled sentencing for Dec. 19. The judge must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The four individuals who received county contracts and returned a portion of the payments to Mullins were each charged with misprision of a felony for concealing Mullins’ fraud and kickback scheme. Each of them entered into pretrial diversion agreements and were placed on probation, were ordered to pay full restitution to the county, and testified as government witnesses at Mullins’ trial. They are: Gary Render, Michael L. Peery, and Clifford Borner, all of Chicago, and Kenneth Gregory Demos, of Oak Park.
The verdict was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Anita Alvarez, Cook County State’s Attorney; Robert J. Shields, Jr., Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Patrick Blanchard, Cook County Inspector General. The case stemmed from a state and federal corruption investigation that resulted recently in the state court conviction of Carla Oglesby, a former Cook County official, who also illegally steered county contracts under $25,000.
Evidence at Mullins’ trial showed that between January 2010 and January 2011, he used his county position to submit and cause others to submit false documents to the county to assist the four vendors in obtaining professional and managerial service contracts and payment from the county. Mullins then solicited the individuals who obtained contracts for payments from the proceeds for his own benefit.
Cook County contracts for professional and managerial services under $25,000 required approval only by the county purchasing agent and did not require approval by the county Board of Commissioners. In 2010, Mullins’ public affairs and communications department, as well as other county departments, had access to federal funds and county money to promote awareness and increase response rates by county residents for the 2010 U.S. Census, to promote awareness and assist residents impacted by floods in 2008, and to promote and increase energy efficiency and conservation.
During 2010, Mullins schemed to fraudulently steer the following contracts: a $24,980 disaster grant contract to Render, who kick-backed $9,000 to Mullins; a $24,985 energy grant contract to Peery, who kick-backed $12,000; a $24,995 census contract to Borner, who kickbacked $5,000; and a $24,997 census contract to Demos, who kick-backed $8,700.
Evidence also showed that Mullins steered an additional census contract for $24,390 to another individual, and then solicited a portion of the proceeds. However, this individual instead returned the uncashed vendor check to the county. In each instance, Mullins told the individuals who received the contracts that he could arrange for a subcontractor to perform some of the work in exchange for a portion of the county payments they received. In fact, the money that Mullins received from the individuals was not used for any subcontracts. Instead, Mullins used it for his own benefit, while Render, Peery, Borner, and Demos performed little or no work for the county.
To conceal the scheme, Mullins advised the contract recipients to falsely deny the circumstances surrounding the contracts if questioned by investigators. For example, he advised Peery not to say anything about paying him a portion of the contract in cash, and advised Borner to claim ownership of the invoice submitted in support of his census contract.
The government was represented by Assistant U.S. Attorneys Lindsay Jenkins and Sarah E. Streicker.
Former Charter School Principal and Former Special Education Teacher Sentenced for Child Pornography ChargesRead the Press Release
ASHEVILLE, N.C. – U.S. District Court Judge Martin Reidinger sentenced today a former charter school principal and a former special education teacher on charges related to child pornography, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Chadwick Hamby, 42, of Hendersonville, N.C., was sentenced to 51 months in prison, to be followed by lifetime of supervised release. He was also ordered to register as a sex offender for a period of 15 years. Deborah Lee Tipton, 45, of Burt, N.C. was sentenced to 216 months in prison and a lifetime of supervised release. She was ordered to register as a sex offenders for a period of 25 years.
Joining U.S. Attorney Tompkins in making today’s announcement is John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division.
In August 2012, Hamby, a former principal at Mountain Community School, pleaded guilty to one count of receiving child pornography. In September 2012, Tipton, who was a teacher at the same school as Hamby at the time of the offense, pleaded guilty to one count of possession and one count of transportation of child pornography. According to filed court documents and today’s sentencing hearing, in or about September 10, 2011, Tipton produced two sexually explicit videos of a child under the age of 12. Court records indicate that Tipton sent these videos to Hamby via the internet. Court documents show that Hamby admitted to viewing the videos at least once before deleting them.
In handing down Hamby’s sentence, Judge Reidinger noted that the offense is one of lasting damage, and that the crime is all the more serious in light of Hamby being an educator and a principal. In announcing Tipton’s sentence, the Judge said that he had never seen a case like this.
Hamby has been in federal custody in the Western District since August 2012. Tipton has been in custody since April 2012. Each defendant will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The case was investigated by the FBI. The prosecution was handled by Assistant U.S. Attorneys David Thorneloe and Cortney Escaravage of the U.S. Attorney’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Bank Executive Pleads Guilty in Connection with Accounting Fraud at Olympus CorporationRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that CHAN MING FON (“CHAN”), a former bank vice president based in Singapore, pled guilty today in connection with his participation in a scheme to defraud investors and auditors regarding the financial condition of Olympus Corporation (“Olympus”). CHAN, who was arrested in December 2012, pled guilty before U.S. District Judge Laura Taylor Swain, pursuant to a cooperation agreement.
According to the Information to which CHAN pled guilty and other court documents:
Olympus is a major manufacturer of medical devices and cameras. Olympus common stock is listed on the Tokyo Stock Exchange. In addition, Olympus American Depository Receipts are traded in the United States. Olympus owns, both fully and in part, numerous subsidiaries and related companies, located in many countries, including the United States.
From 1995 through 2004, CHAN was employed as an executive at two different international financial institutions (“Bank-1” and “Bank-2”). While employed at Bank-1, CHAN served as the relationship manager for Olympus. While employed at Bank-2, he facilitated a loan for hundreds of millions of dollars to a special purpose entity established by Olympus known as Easterside. Olympus did not disclose to its auditor, investors or shareholders the existence of this loan or that it was collateralized by Olympus’s deposits.
Subsequently, from 2005 through 2010, CHAN participated in a scheme to disguise hundreds of millions of dollars that Olympus purportedly invested in government bonds and other secure investments (the “Investment Portfolio”). He served as the manager of a fund – known as SG Bond – that held the Investment Portfolio and, at the direction of Olympus’s executives, transferred the Investment Portfolio to Easterside, which then liquidated the bonds and used the proceeds, in part, to repay the loan from Bank-2.
As the manager of Olympus’s purported investment, CHAN submitted, and caused to be submitted, false and misleading documents to Olympus’s outside auditor (“Auditor”) regarding the Investment Portfolio. Specifically, CHAN prepared and provided several false and misleading confirmations of the Investment Portfolio’s value. He did not disclose in these confirmations that the Investment Portfolio had been transferred to Easterside, nor did he disclose that the Investment Portfolio had been liquidated. In June 2009, he provided the Auditor with a confirmation of the Investment Portfolio’s net asset value and a list of assets that purportedly constituted the Investment Portfolio. At the direction of a co-conspirator, CHAN forged a signature on the confirmation to make it appear that it had been signed by a bank representative. CHAN submitted these false and misleading documents, including the confirmation with the forged signature, to deceive the Auditor into believing that Olympus’s purported investment in bonds and fixed income securities was safe and secure at SG Bond.
In 2010, Olympus-controlled entities transferred hundreds of millions of dollars to an entity controlled by CHAN. In turn, he used these funds to purchase bonds and other securities that were similar to the assets that originally had constituted the Investment Portfolio. Upon acquiring these bonds and securities, he caused the assets to be transferred to Easterside, which in turn transferred the assets to SG Bond in order to replace the Investment Portfolio that SG Bond had purportedly held for Olympus since 2005.
In consideration for his assistance to Olympus including in this accounting fraud scheme, CHAN received in excess of $10,000,000 from Olympus or entities controlled by Olympus.
CHAN, 50, resides in Singapore and is a citizen of Taiwan. He pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum potential penalty of five years in prison. CHAN is scheduled to be sentenced by Judge Swain on January 10, 2014.
Mr. Bharara praised the Federal Bureau of Investigation for its outstanding work in the investigation. He also thanked the U.S. Securities and Exchange Commission.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorney Zachary Feingold is in charge of the prosecution.
U.S. v. Chan Ming Fon Information
Former Air Force Official Pleads Guilty to Receiving GratuitiesRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Dennis Charles Toenjes, Sr., 66, has been charged and pled guilty to receiving gratuities in connection with his former role as a contracting official with the United States Air Force. Earlier today, Toenjes pled guilty to the charge in the United States District Court.
Evidence revealed in Court showed that on or about February 3, 2009, Toenjes received and accepted gratuities from Stephen Keith Sweet, an owner of an asbestos abatement company which performed work on Scott Air Force Base. Sweet would not have given such gratuities to Toenjes but for his position as a contracting official with the United States Air Force. Gratuities included Sweet paying for Toenjes’ car repairs and for his home heating and cooling repairs. All payments made by Sweet to Toenjes totaled $9,382.01.
The charge carries maximum penalties of 2 years in prison, a $250,000 fine, and 1 year of supervised release. Sentencing has been set for January 24, 2014, at 11:00 a.m.
The case was investigated by the Internal Revenue Service - Criminal Investigation Division and the United States Air Force Office of Special Investigations. The case is being prosecuted by Assistant U.S. Attorney Liam Coonan.