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15 November 2013
Vancouver, Washington Gang Member Convicted of Being a Felon in Possession of FirearmRead the Press Release
A repeat offender who used recorded jail telephone lines to try to get his girlfriend to hide his gun from law enforcement, was convicted late yesterday of being a felon in possession of a firearm. HERBERT D. ZENO, 33, a known gang member from the Vancouver, Washington area was convicted following a three day jury trial. ZENO was arrested and booked into the Clark County Jail on January 31, 2013. ZENO was charged federally February 19, 2013. When sentenced by U.S. District Judge Ronald B. Leighton on January 31, 2014 , ZENO faces up to ten years in prison.
According to testimony presented at trial, on the same day of his arrest on state charges, ZENO used the jail telephone system to attempt to get his girlfriend to hide a firearm he possessed. The jail calls were monitored and recorded. The recorded phone calls resulted in a court authorized search for the firearm. It was discovered hidden under a dresser in ZENO’s mother’s home. ZENO has prior convictions for drug possession (2003, 2005), robbery (2002) and illegal firearm possession (2002). ZENO’s prior convictions bar him from possessing firearms. ZENO has tattoos identifying him as a Bloods gang member and the firearm was found wrapped in a red Bloods bandana – a sign of his ownership.
The case was investigated by the FBI’s Safe Streets Gang Task Force which contains officers from the Vancouver Police Department and Clark County Sheriff’s Office. The Bureau of Alcohol, Tobacco, Firearms & Explosives assisted with the investigation.
The case was prosecuted by Assistant United States Attorneys Michael Dion and Thomas Bates.
U.S. Attorney Goodwin, Child Advocates Announce Luggage Collection Drive for Foster ChildrenRead the Press Release
West Virginians asked to participate to help kids in transition to foster care
CHARLESTON, W.Va. –U.S. Attorney Booth Goodwin, along with representatives from Mission West Virginia, Inc., the Children’s Home Society and other supporters gathered today at the Charleston Civic Center for the first of four regional events designed to help children transitioning into foster care. The second annual Thanksgiving time luggage collection drive dubbed “Give Thanks and Carry On”, launched today as part of Mission West Virginia’s Carry On Campaign, is an effort aimed at collecting luggage, essential personal care items, and items of comfort for children who are in transition to the state’s foster care system. West Virginia currently has more than 4,000 children in the foster care system.
U.S. Attorney Booth Goodwin said, "No child should have to use a trash bag to transport their belongings.” Goodwin continued, “That’s what was happening and that’s why the Carry On Campaign was formed a few years ago: to provide children with luggage and other items of comfort during a very difficult time. We're asking all West Virginians: as you’re preparing for the upcoming holiday season, add a child in need to your list.”
The Carry On Campaign began in October 2010 as a collaborative, multi-agency partnership that includes the U.S. Attorney’s Office for the Southern District of West Virginia, the West Virginia Department of Health and Human Resources, Mission West Virginia, Inc., the West Virginia Prosecuting Attorney’s Institute and the West Virginia Drug Endangered Children Task Force. Items sought after as part of the Carry On Campaign include new and gently used luggage, duffle bags, stuffed animals, coloring books, journals, toothbrushes, toothpaste, as well as non-perishable snacks. Additional items being collected during the winter months include coats, gloves, mittens, hats, scarves, earmuffs, socks, and blankets. All items collected will be distributed by Mission West Virginia.
This is the second year in a row that U.S. Attorney Goodwin has partnered with Mission West Virginia, and the West Virginia Children’s Home Society for a Thanksgiving collection drive in support of children in transition to foster care. Previous collection efforts have enabled Mission West Virginia to meet critical care needs for hundreds of young people.
Three additional collection campaign announcements are upcoming: in Ona, W.Va., at the Hovah Hall Underwood Children’s Home on Nov. 25; in Daniels, W.Va., at the Southern West Virginia Exceptional Youth Emergency Shelter on Nov. 26; and the Easton Center in Parkersburg on Nov. 27.
To find a drop-off location near you or to receive additional information regarding the Carry On Campaign, please contact Carrie Dawson at [email protected] or call toll free 1-866-CALL-MWV (1-866-225-5698).
Two More Defendants Plead Guilty in Manhattan Federal Court in Connection with Russian-American Organized Crime Gambling EnterpriseRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ANATOLY GOLUBCHIK pled guilty today in Manhattan federal court to participating in a racketeering conspiracy in connection with his role as a member of a Russian-American organized crime enterprise. ILLYA TRINCHER also pled guilty today in Manhattan federal court in connection with his leadership role in the operation of a high-stakes illegal sports gambling business. GOLUBCHIK and TRINCHER were charged in April 2013 along with 32 other alleged members and associates of two Russian-American organized crime enterprises in an indictment that included racketeering, money laundering, extortion, and various gambling offenses. They pled guilty before U.S. District Judge Jesse M. Furman.
Manhattan U.S. Attorney Preet Bharara said: “With Anatoly Golubchik and Illya Trincher’s guilty pleas today, 18 of the 34 defendants charged in this case now stand convicted. We remain committed to making sure that everyone charged in connection with this alleged Russian-American organized crime ring is held to account for their crimes.”
According to the Indictment, other documents filed in Manhattan federal court, and statements made at various proceedings in this case, including today’s guilty plea:
The Taiwanchik-Trincher Organization is a nationwide criminal enterprise with strong ties to Russia and Ukraine. The leadership of the organization ran an international sportsbook that catered primarily to Russian oligarchs living in Russia and Ukraine and throughout the world. The Taiwanchik-Trincher Organization laundered tens of millions of dollars in proceeds from the gambling operation from Russia and the Ukraine through shell companies and bank accounts in Cyprus, and from Cyprus into the United States. Once the money arrived in the United States, it was either laundered through additional shell companies or invested in seemingly legitimate investments, such as hedge funds or real estate. GOLUBCHIK was a U.S.-based participant in the enterprise. As part of his plea, GOLUBCHIK acknowledged that in furtherance of the Taiwanchik-Trincher Organization, GOLUBCHIK laundered the proceeds of their international sportsbook and assisted in the operation of the illegal gambling business.
TRINCHER and co-defendant Hillel Nahmad ran a high-stakes illegal gambling business that catered primarily to millionaire and billionaire clients. Their business utilized several online gambling websites that operated illegally in the United States to generate tens of millions of dollars of sports bets each year. The gambling operation was financed through a host of American and international bank accounts, including accounts associated with Nahmad , defendants John Hanson and Noah Siegel, a/k/a “The Oracle,” and a plumbing company in the Bronx that was acquired in repayment of a $2 million gambling debt. As part of his guilty plea, TRINCHER acknowledged that he was a leader and organizer of the illegal sports gambling business, he supervised the illegal gambling business, and he conducted numerous financial transactions on behalf of the illegal gambling business.
GOLUBCHIK, 57, of Fort Lee, New Jersey, faces a maximum of 20 years in prison and three years of supervised release. As part of his plea agreement, GOLUBCHIK agreed to forfeit cash and property worth over $20,000,000.00. He is scheduled to be sentenced by Judge Furman on March 25, 2014, at 3:00 p.m.
TRINCHER, 28, of Los Angeles, California, faces a maximum of five years in prison and three years of supervised release. As part of his plea agreement, TRINCHER agreed to forfeit cash and property worth over $6,000,000.00 and a black 2012 Porsche Cayenne. He is scheduled to be sentenced by Judge Furman on March 25, 2014, at 3:45 p.m.
GOLUBCHIK is the 17th defendant in this case to plead guilty. TRINCHER is the 18th defendant in this case to plead guilty. The defendants who have pled to date have agreed to forfeit, in total, more than $66,000,000.00. The following defendants previously pled guilty and await sentencing:
- Bryan Zuriff pled guilty to gambling charges on July 26, 2013;
- William Barbalat pled guilty to gambling charges on August 14, 2013;
- Kirill Rapoport pled guilty to gambling charges on August 16, 2013;
- Edwin Ting and Justin Smith pled guilty to gambling charges on September 4, 2013;
- Dmitry Druzhinsky and David Aaron pled guilty to gambling charges on October 4, 2013;
- Alexander Zaverukha pled guilty to gambling charges on October 10, 2013;
- Nicholas Hirsch pled guilty to conspiring to commit wire fraud on October 16, 2013;
- Anatoly Shteyngrab pled guilty to conspiring to commit money laundering on October 17, 2013;
- Yugeshwar Rajkumar pled guilty to gambling charges on October 18, 2013;
- Stan Greenberg pled guilty to conspiring to commit racketeering on October 22, 2013;
- Arthur Azen pled guilty to conspiring to commit money laundering and conspiring to collect extensions of credit by extortionate means on November 5, 2013;
- Hillel Nahmad pled guilty to gambling charges on November 12, 2013;
- Vadim Trincher pled guilty to conspiring to commit racketeering on November 14, 2013; and
- Eugene Trincher pled guilty to gambling charges on November 14, 2013.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation, the New York City Police Department, and the Internal Revenue Service.
The case is being prosecuted by the Office’s Organized Crime Unit. Assistant U.S. Attorneys Harris M. Fischman, Joshua A. Naftalis, Peter Skinner, and Kristy J. Greenberg of the Organized Crime Unit are in charge of the prosecution. Assistant U.S. Attorneys Alexander Wilson and Christine Magdo of the Office’s Asset Forfeiture Unit are responsible for the forfeiture aspects of the case.
U.S. v. Alimzhan Tokhtakhounov, et al. Indictment
Two Florida Men Convicted in Philadelphia of Conspiring and Trafficking in Protected ReptilesRead the Press Release
A federal jury today found Robroy MacInnes, 54, of Inverness, Fla., and Robert Keszey, 47, of Bushnell, Fla., guilty of conspiracy to traffic in state and federally protected reptiles. MacInnes also was convicted of trafficking in protected timber rattlesnakes in violation of the Lacey Act.
Between 2007 and 2008, the defendants, who own the reptile wholesaler Glades Herp Farm Inc., collected protected snakes from the wild in Pennsylvania and New Jersey, purchased protected eastern timber rattlesnakes that had been illegally collected from the wild in violation of New York law, and transported federally threatened eastern indigo snakes from Florida to Pennsylvania. MacInnes also violated the Lacey Act by purchasing illegal eastern timber rattlesnakes and having the snakes transported from Pennsylvania to Florida. The evidence at trial showed that the protected species were destined for sale at reptile shows in Europe, where a single timber rattlesnake can sell for up to $800. Snakes that were not sold in Europe were sold through the defendants’ business in the United States.
“These defendants broke numerous wildlife laws seeking to profit from an illegal trade in threatened species,” said Robert G. Dreher, Acting Assistant Attorney General for the Environment and Natural Resources Division. “The Justice Department is committed to enforcing wildlife laws like the Endangered Species Act and the Lacey Act that protect our environment and these threatened species from a destructive and dangerous black market trade.”
The eastern timber rattlesnake is a species of venomous pit viper native to the eastern United States, and is listed as threatened in New York. It is also illegal to possess an eastern timber rattlesnake without a permit in Pennsylvania. The eastern indigo snake, the longest native North American snake species, is listed as threatened by both Florida and federal law.
The Lacey Act, one of the oldest statutes in the United States, prohibits interstate trafficking in wildlife known to be illegally obtained. The maximum penalty for conspiring to commit offenses and for violations of the Lacey Act is up to five years in prison and a $250,000 fine for each violation.
This case was investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement, with assistance from the New York Department of Environmental Conservation. The case was prosecuted by Trial Attorney Patrick M. Duggan and paralegal Ashleigh Nye of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division and Assistant U.S. Attorney Mary Kay Costello of the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
Two Florida Men Convicted of Defrauding Homeowners in Home Loan Modification ScamRead the Press Release
BOSTON – Two Florida men were convicted yesterday for defrauding homeowners in Massachusetts and elsewhere in a home loan modification scam.
Christopher S. Godfrey, 44, of Delray Beach, Fla., Dennis Fischer, 42, of Highland Beach, Fla., were convicted of conspiracy, wire fraud, mail fraud, and misuse of a government seal.
From January 2009 through May 2011, Godfrey, Fischer, and their employees, operating under the name Home Owners Protection Economics, Inc. (HOPE), made a series of misrepresentations to induce struggling homeowners looking for a federally-funded home loan modification to pay HOPE a $400-$900 up-front fee in exchange for HOPE's help obtaining modifications. Among these misrepresentations were the claims that, with HOPE's assistance, the homeowner was guaranteed to receive a loan modification under the Home Affordable Modification Program (HAMP), which is part of the Troubled Asset Relief Program (TARP) and is a federally-funded mortgage assistance program. HOPE also claimed that it operated as a non-profit. In exchange for these up-front fees, HOPE sent its customers, including homeowners in Massachusetts, a do-it-yourself application package, which was virtually identical to the application that the government provides free of charge. The HOPE customers had no advantage in the application process, and, in fact, most of their applications were denied. Through these misrepresentations, HOPE was able to persuade thousands of homeowners to pay more than $4 million in fees.
Sentencing is scheduled for February 13, 2014. The defendants face a maximum sentence on each count of 20 years in prison, three years of supervised release, a $250,000 fine, and restitution.
United States Attorney Carmen M. Ortiz, Acting Assistant Attorney General Mythili Raman, and Christy Romero, Acting Special Inspector General for the Troubled Asset Relief Program (SIGTARP) in Wash., D.C., made the announcement today.
The case is being prosecuted by Assistant U.S. Attorney Adam Bookbinder of Ortiz's Computer Crimes Unit and Trial Attorney Mona Sedky of the Department of Justice's Computer Crime and Intellectual Property Section, Criminal Division.Two Arrested, Make Initial Appearance in Federal Court on Charges of Aggravated Identity Theft, Forging Endorsements on U.S. Government Checks, Money LaunderingRead the Press Release
PROVIDENCE, R.I. – Juliana Martins, 44, and Jairo Morales, 28, of Providence, R.I., were arrested by federal agents and made initial appearances today in U.S. District Court in Providence on charges of aggravated identity theft, theft of government property, forging endorsements on treasury checks and money laundering. The defendants were arrested by agents from Homeland Security Investigations, assisted by agents from the U.S. Secret Service and Internal Revenue Service Office of Investigation, as the result of an ongoing investigation into an alleged scheme to obtain federal tax checks with the use of stolen personal identifying information of others.
The arrests were announced by United States Attorney Peter F. Neronha; Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Steven D. Ricciardi, Special Agent in Charge of the Boston Field Office of the U.S. Secret Service; and John Collins, Acting Special Agent in Charge of the Boston Field Office of Internal Revenue Service Criminal Investigation.
According to information presented to the court, the defendants are alleged to have participated in a scheme to steal the identity of approximately forty individuals, nearly all of whom appear to live in Puerto Rico, including their names, social security numbers and dates of birth. It is alleged that they used the information to fraudulently obtain federal tax checks totaling more than $277,300. The investigation revealed that the checks were allegedly deposited into various bank accounts and then cash withdrawn in an attempt to conceal the scheme.According to information presented to the court, the investigation began in January 2013, based on information developed by Customs and Border Protection officers at Logan International Airport in Boston during a routine inspection of a laptop computer belonging to Morales as he passed through customs during a return trip to the United States from the Dominican Republic.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Martins and Morales were released on unsecured bond following their initial appearance before U.S. District Court Magistrate Judge Patricia A. Sullivan.
Theft of government property and forging endorsements on treasury checks are each punishable by statutory penalties of up to ten years in federal prison and a fine of up to $250,000. Money laundering is punishable by a statutory penalty of up to twenty years in federal prison and a fine of up to $500,000. Aggravated identity theft is punishable by a statutory penalty of a mandatory minimum sentence of two years in federal prison, to be served consecutive to any other sentence imposed
The case is being prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and John P. McAdams.
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Twenty Arrested for Roles in Methamphetamine Trafficking ConspiracyRead the Press Release
Drug Trafficking Organization Based in Stephenville, Texas, is
Allegedly Responsible for Distributing Hundreds of Pounds of Methamphetamine
Primarily in Rural Texas CountiesFORT WORTH, Texas — A total of 31individuals are now in custody following an Organized Crime Drug Enforcement Task Force (OCDETF) operation yesterday, led by special agents of the Drug Enforcement Administration (DEA) and officers from the Stephenville Police Department, on conspiracy and drug trafficking charges outlined in a criminal complaint filed last week and unsealed today. Defendants arrested yesterday made their initial appearance this morning before a U.S. Magistrate Judge. Today’s announcement was made by Sarah R. Saldaña, U.S. Attorney for the Northern District of Texas, and Daniel R. Salter, Special Agent in Charge of the DEA in Dallas.
The complaint charges 32 defendants with conspiracy to possess a controlled substance (methamphetamine) with intent to distribute. Twenty of those defendants were arrested in yesterday’s operation, 11 are in custody at various locations on unrelated state charges, and one has not yet been arrested.
“These arrests illustrate the success of our District’s federal, state and local law enforcement partners’ collaboration in taking down these drug trafficking organizations — whether they operate in large communities, or in several rural counties as this one allegedly did,” said U.S. Attorney Saldaña. “I commend the dedicated efforts of the DEA and the Stephenville Police Department, who led this OCDETF investigation, along with the Erath, Parker, Palo Pinto and Stephens County Sheriff’s Offices, the Erath County District Attorney’s Office, the Fort Worth and Weatherford Police Departments, the U.S. Marshals Service and the Texas Department of Public Safety.”
“Drug trafficking organizations are determined to spread their poison in an attempt to make a profit on the backs of addiction,” said Special Agent in Charge Salter. “Today, the DEA and our state and local partners have made a significant impact on these organizations operating in our rural counties. I am grateful for the efforts of our special agents, prosecutors, and law enforcement partners in dismantling this organization. Our law enforcement community is strong and together we are committed to ensuring that our communities are safe and drug free.”
The investigation began in December 2012 when the DEA and the Stephenville Police Department began investigating the methamphetamine trafficking of the Brittany Barron Drug Trafficking Organization (DTO) and identified more than 100 individuals distributing for, or obtaining methamphetamine from, that DTO.
The investigation involved undercover purchases and search warrants, and throughout the investigation, substantial amounts of methamphetamine and cash were seized from the DTO. Law enforcement learned that this DTO, based in Stephenville, Texas, was allegedly responsible for distributing hundreds of pounds of methamphetamine, primarily in rural Texas counties, including: Erath County, Parker County, Palo Pinto County, Comanche County, Eastland County, Stephens County, Hood County, Hamilton County, Somervell County and Taylor County.
In addition, law enforcement has dismantled several of the DTO’s suppliers, and it continues to investigate others that remain in operation.
A federal criminal complaint is a written statement of the essential facts of the offense charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The statutory penalty, upon conviction, for the offense charged is not less than five years or more than 40 years in prison and a $5 million fine. The U.S. Attorney’s Office has 30 days to present the matter to a grand jury for indictment.
The case is being prosecuted by Assistant U.S. Attorney Shawn Smith.
The Riddler and the Penguin Charged with Conspiracy and Kidnapping; Duo Faces Long Prison Terms Thanks to BatkidRead the Press Release
SAN FRANCISCO/GOTHAM – Edward “E.” Nigma, aka, “The Riddler,” and Oswald Chesterfield Cobblepot, aka, “The Penguin” were formally arrested today and charged with multiple counts of conspiracy and kidnapping for their all too familiar villainous ways in Gotham City, according to Melinda Haag, U.S. Attorney for the Northern District of California and FBI Special Agent in Charge David J. Johnson.
The unique and somewhat unprecedented indictment not only outlines the charges against “The Riddler” and “The Penguin” but it also includes a special thanks to a certain caped crusader who was pivotal in making this day a reality.
“We’ve been chasing Nigma and Cobblepot for years and just when I was about to give up hope that we would ever bring them to justice, wouldn’t you know it – Batkid shows up and saves the day,” said United States Attorney Melinda Haag. “I’ve been involved in some unbelievable cases and I’ve worked with some pretty remarkable law enforcement officers, but the bravery displayed by Batkid is off the charts. I’m absolutely certain that there is no villain this remarkable super-hero can’t defeat.”
According to the indictment, “The Penguin” and “The Riddler” thought it was a good idea to put an unnamed female in the path of a cable car, rob a bank, and kidnap San Francisco Giants mascot Lou Seal. Somehow they thought these latest stunts would go undetected by Batkid. However, at approximately 9 p.m. last night, the bat signal went up and predictably the crime rate began to go down in Gotham and San Francisco.
“I’ve talked a lot about cooperation in the past with other outstanding law enforcement partners, but I can honestly say we broke some new ground today,” said FBI Special Agent in Charge David J. Johnson. “The FBI and the San Francisco Police Department are good, but if it wasn’t for Batkid, I guarantee you that these two villains would still be at-large on the streets of Gotham today. Citizens of this great city are not only safer tonight because of Batkid, but they will undoubtedly be humbled by the courage he has displayed in battles he has taken on and won.”
The Assistant U.S. Attorneys all want to prosecute this case, and are currently drawing straws to see who will have the honor. This will presumably be the easiest case in U.S. Attorney history thanks to Batkid, who pretty much was able to not only capture the humanity of this great city, but was also able to capture all of the Riddler’s and Penguin’s crimes on video. The prosecution is the result of a multi-agency investigation led from a cave in a location we cannot disclose.
Please note, an indictment contains only allegations against a person and, as with all defendants, Edward “E.” Nigma, aka, “The Riddler,” and Oswald Chesterfield Cobblepot, aka, “The Penguin” must be presumed innocent unless and until proven guilty.
(Riddler & Penguin indictment )
Sulphur Men Plead Guilty to Making and Distributing Counterfeit MoneyRead the Press Release
LAKE CHARLES, La. –United States Attorney Stephanie A. Finley announced that Shaun Daigle, 34, and Patrick Murray, 46, both of Sulphur, La., pleaded guilty Thursday before U.S. Magistrate Judge Kathleen Kay, to conspiring to counterfeit U.S. currency.
According to the evidence presented at the guilty plea, from May 1, 2013 to May 25, 2013, Daigle and Murray conspired to manufacture and distribute counterfeit U.S. currency in the Sulphur, Lake Charles, and Westlake, La. areas.
The defendants each face up to five years in prison, a $250,000 fine, and three years of supervised release for conspiracy to counterfeit and forge obligations to the United States. A sentencing date has not been set.The U.S. Secret Service and Sulphur Police Department conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy is prosecuting the case.
Staff Pharmacists at Kentwood Pharmacy Sentenced to Stiff Fines on Charges of Misbranding Drugs and Face Exclusion and Debarment from Federal ProgramsRead the Press Release
GRAND RAPIDS, MICHIGAN – James D. Orr, 76, and Eugene A. Biegert, 69, of Grand Rapids, Michigan, and Thomas N. VerHage, 68, of Kentwood, Michigan were sentenced by U.S. District Judge Janet T. Neff to substantial fines following their guilty pleas to charges of the felony misbranding of drugs while working as staff pharmacists at Kentwood Pharmacy. The judge imposed monetary penalties exceeding the fine range recommended by federal sentencing guidelines: a fine of $30,000.00 for VerHage and Orr and $15,000.00 for Biegert.
In addition, as a consequence of the convictions, U.S. Department of Health and Human Services will exclude the defendants from participation in any Federal Health Care Program (Medicaid and Medicare) and the U.S. Food and Drug Administration will debar them from working for anyone with an approved or pending drug product application.
During their earlier plea hearings, the pharmacists acknowledged that they were aware that Kentwood Pharmacy restocked drugs that were returned from nursing homes and adult foster care homes. The defendants admitted that receiving such returned drugs and placing the returned drugs back on the stock shelves resulted in the drugs being placed into stock bottles and other containers which did not maintain the accurate lot numbers and expiration dates for the drugs. The defendants admitted that, in their position as staff pharmacists, they approved prescriptions that were prepared and dispensed to foster care and nursing homes. They acknowledged that some of the prescriptions contained drugs that they knew were returned to stock in violation of state and federal laws, including drugs that had been misbranded.
At the sentencing hearings, Judge Neff found that the staff pharmacists created a substantial risk of harm by approving the illegal restocking and re-distribution of prescription drugs. The judge described the scheme to collect unused drugs from nursing homes and adult foster homes and then re-dispense these drugs as “clever, illegal, and potentially lethal.” She explained that the substantial fines were necessary to deter others and to punish these defendants for their failure to exercise their professional responsibilities as pharmacists and stop or report the illegal practices at Kentwood Pharmacy. Judge Neff further explained that none of the defendants had any prior criminal history, did not financially benefit from the criminal activities and that federal sentencing guidelines did not call for substantial prison time as a deterrent.
U.S. Attorney Patrick Miles said, “The public must be able to rely on pharmacists who have both professional and statutory duties to ensure that pharmacies operate in compliance with federal and state laws regulating the handling, packaging, and distribution of drugs. As this case demonstrates, even semi-retired pharmacists who work part-time are expected to fulfill their statutory and professional obligations. If such professionals fail to comply with state and federal laws, they should expect to be prosecuted and face loss of their license, substantial financial penalties, and the possibility of imprisonment for violations of the public’s trust.”
“Patients must have confidence that the prescription drugs they receive from pharmacies are safe and effective,” said Special Agent in Charge John J. Redmond of the U.S. Food and Drug Administration, Office of Criminal Investigations, Chicago Field Office. “The FDA will aggressively pursue those who cause drugs to become misbranded while held for sale, and the agency will strive to ensure that they are prosecuted to the full extent of the law.”
The investigation of this matter involves the FDA, FBI, DEA, HSS and IRS. Assistant U.S. Attorney Ray Beckering is the prosecutor.
The investigation of this case was initiated by confidential tips. If Michigan residents or medical professionals suspect possible violations of law or other dangerous practices involving pharmacies or prescription drugs, they can contact the FDA at http://www.fda.gov/ICECI/criminalInvestigations/default.htm or the DEA at http://www.justice.gov/dea/index.html.
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St. Charles Man Sentenced on Federal Drug and Weapons ChargesRead the Press Release
St. Louis, MO – EHRICK PREIS was sentenced to 37 months in prison. On six occasions between December 2012 and March 2013 in St. Charles County, he distributed at total of 858 units of LSD to undercover law enforcement personnel in exchange for more than $6,000. During the transactions, Preis made statements indicating he knew the substance was intended for human consumption, including statements that the substance was "LSA, 2CI and LSD," a "beefed up version of LSD." A subsequent search of Preis’ residence following the sixth drug purchase revealed two improvised explosive devices (IEDs), pipe bomb type devices/destructive devices, which he admitted creating.
Ehrick Stefan Preis, St. Charles, MO, pled guilty in August to one felony count of distribution of a controlled substance and one felony count of possession of an unregistered destructive device. He appeared today for sentencing before United States District Judge Carol E. Jackson.
This case was investigated by the St. Louis County Multi-Jurisdictional Drug Task Force, the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Michael Reilly handled the case for the U.S. Attorney's Office.
Sixth Defendant in New York-Based Armed Robbery Crew Convicted of Gruesome North Carolina MurderRead the Press Release
Earlier today, Wendell Alomar-Cabrera, a citizen of the Dominican Republic, pled guilty at the federal courthouse in Brooklyn, New York, to the October 16, 2006, murder of Luis Sifuentes in Durham, North Carolina. The proceeding took place before United States District Judge Nicholas G. Garaufis. When sentenced, Alomar-Cabrera faces up to life imprisonment.
The plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Robert T. Johnson, District Attorney, Bronx County, New York, Brian R. Crowell, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division, and Raymond W. Kelly, Commissioner, New York City Police Department (NYPD).
“Alomar-Cabrera was part of a vicious robbery crew that viewed the East Coast of the United States as their hunting ground. They traveled the highways impersonating police officers, and showed their victims no mercy. Today a sixth perpetrator of the murder of Luis Sifuentes has been brought to justice,” stated United States Attorney Lynch. “We pursued these defendants to North Carolina to show the extent of our commitment to protecting communities, in New York and elsewhere, from the violence posed by violent robbers and drug traffickers.” Ms. Lynch congratulated the Bronx County District Attorney’s Office and the members of law enforcement who led the investigation, and thanked the New York State Police; the Durham County District Attorney’s Office; and the Durham, North Carolina Police, Special Operations Division, Major Crimes Unit for their assistance in the investigation.
According to court filings and facts presented in court, Alomar-Cabrera was a member of a violent robbery crew responsible for more than 100 armed robberies of narcotics traffickers along the east coast of the United States that netted more than 750 kilograms of cocaine and $4 million in drug proceeds. Crew members posed as police officers in order to subdue narcotics traffickers and their families, and then kidnaped, tortured, and robbed their victims. In 2006, members of the crew traveled to North Carolina from New York to engage in a series of robberies. On October 16, 2006, near Durham, North Carolina, the defendants kidnaped Luis Sifuentes by executing a police-style car stop of Sifuentes’ pickup truck using lights and sirens. The robbery crew then drove Sifuentes to a rented house where they beat and tortured him for several hours, demanding that he provide information regarding the location of narcotics and cash. Crew members then carried Sifuentes outside, placed him in his pickup truck, shot him twice killing him, and set the truck on fire.
Alomar-Cabrera’s guilty plea is the most recent of 51 convictions in a group of interlocking cases brought in the Eastern District of New York against members of violent drug robbery crews who impersonated police officers and frequently committed robberies with real officers. Of the 51 convictions, nine defendants have been convicted for their roles in murders, including six for the Sifuentes murder.
The government’s case is being prosecuted by Assistant United States Attorneys Justin D. Lerer, Shreve Ariail, Gina M. Parlovecchio, and Douglas M. Pravda and Special Assistant United States Attorney Jeremy Shockett, an Assistant District Attorney from the Bronx County District Attorney’s Office.
The Defendant
WENDELL ALOMAR-CABRERA, aka “gregorio”
Age: 35E.D.N.Y. Docket No. 08 CR 115 (S-4) (NGG)
Reva, Virginia Man Sentenced on Stalking ChargesRead the Press Release
CHARLOTTESVILLE, VIRGINIA – A 61-year-old former employee of the Library of Congress, who pled guilty in August to charges involving stalking and identification fraud, was sentenced today in the United States District Court for the Western District of Virginia in Charlottesville.
Kenneth Edward Kuban, 61, of Reva, Va., was sentenced today to 66 months in federal prison. Kuban previously pled guilty to one count of stalking in violation of a protective order, one count of identification fraud and one count of violating a protective order within the special maritime and territorial jurisdiction of the United States.
“Mr. Kuban used his government computer and the internet to harass and intimidate the victim in this case,” United States Attorney Timothy J. Heaphy said today. “While the actions of Mr. Kuban caused the victim months of emotional trauma, they could have resulted in much more serious harm. Fortunately, law enforcement acted swiftly and put an end to Mr. Kuban’s horrific behavior before it resulted in violence. This case shows both the dangerous potential of web portals like the one Mr. Kuban used to stalk his victim, and our commitment to vigorously pursue actual or threatened violence against women in whatever form it takes.”
Kuban has admitted to posing online as the victim, an ex-girlfriend, and using the website Craigslist to post advertisements and lure third parties to the victim’s home in anticipation of having direct contact with the victim for the purpose of having sexual encounters. The defendant admitted to posting more than 165 advertisements on the website between January and March of 2013. Many of the advertisements contained the victim’s address and/or a photograph. Fifty-four of those advertisements were posted from Kuban’s personal computer. One-hundred and eleven of the ads were placed from Kuban’s government-issued computer at the Library of Congress.
As a result of the advertisements, more than 100 men appeared at or around the victim’s home between January and March 2013 seeking sexual encounters with her. In one instance, a man arrived at the victim’s home with a crowbar in order to pry open an electronic gate the victim had installed to protect herself. The man brought the crowbar at the urging of Kuban, who communicated with him while posing as the victim.
The threat to the victim’s safety became so great that local law enforcement felt it necessary to post deputies at her home in order to deter trespassing and harassment.
The investigation of the case was conducted by the Library of Congress-Office of the Inspector General. United States Attorney Timothy J. Heaphy, Assistant United States Attorney Ronald Huber and Special Assistant United States Attorney Jason Beaton are prosecuting the case for the United States.
Raceland Man, Ronald Breaux, Sentenced to 151 Months for Distributing Child PornographyRead the Press Release
RONALD BREAUX, age 66, of Raceland, Louisiana, was sentenced yesterday by United States District Judge Nannette Jolivette Brown to 151 months in prison for crimes involving the sexual exploitation of children, announced United States Attorney Kenneth Allen Polite, Jr. Judge Brown also ordered the defendant to pay $1,750 to one of the victims whose images he downloaded. After his term of imprisonment BREAUX will be placed on supervised release for five years.
According to court documents, BREAUX used “peer-to-peer” file sharing programs on his computer to search for, download, and share videos and images of children as young as eighteen (18)-months-old engaging in sexually explicit conduct. On September 25, 2012, law enforcement officials, led by the State of Louisiana Department of Justice - Office of the Attorney General, executed a search warrant at BREAUX’S residence and seized two computers and five electronic storage devices. BREAUX catalogued the pictures and videos in computer folders he created with names like “young,” “crime,” and “incest. In total, BREAUX downloaded, viewed, and saved at least 1,485 images and 479 videos of children being victimized.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety, please visit www.usdoj.gov/psc and click on the tab "resources."
This case was investigated by agents from the State of Louisiana - Office of the Attorney General. The prosecution of this case was handled by Assistant United States Attorneys Jordan Ginsberg and Matthew S. Chester.Queens Man Convicted of Bribery of A Public OfficialRead the Press Release
ALBANY, NEW YORK – On November 14, 2013, a federal jury in Albany found YANG CHIA TIEN, a/k/a ANDREW TIEN, 62, of Queens, NY, guilty of three counts of bribery of a public official, announced United States Attorney Richard S. Hartunian, Homeland Security Investigations Assistant Special Agent in Charge Nicholas DiNicola, and New York State Police Special Investigations Unit Major Thomas G. Marmion. Sentencing is scheduled for March 10, 2013 at 9:00 a.m. before Chief United States District Judge Gary L. Sharpe.
TIEN was convicted of paying a total of $51,000 to a federal immigration official with the corrupt intent to influence official acts, namely the granting of lawful permanent resident status to aliens. In reality, the recipient was an undercover law enforcement officer with Homeland Security Investigations. The payments took place on May 1, 2008, July 11, 2008, and October 8, 2008. The evidence at trial showed that TIEN made these payments in an effort to secure green cards for his “customers,” illegal aliens from Malaysia and China.
For each count of conviction, TIEN faces a maximum term of imprisonment of fifteen years and a maximum fine of $250,000.
The prosecution resulted from a joint investigation by ICE-Homeland Security Investigations and the New York State Police. The case was prosecuted by Assistant United States Attorney Sean O’Dowd.
Providence Felon Sentenced to 37 Months in Federal Prison on Firearm ChargeRead the Press Release
PROVIDENCE, R.I. – William McKinney 23, of Providence, was sentenced on Thursday to 37 months in federal prison for being a felon in possession of a firearm, announced United States Attorney Peter F. Neronha, Providence Police Chief Colonel Hugh T. Clements, Jr., and Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police.
At sentencing, U.S. District Court Judge William E. Smith also ordered McKinney to serve three years of supervised release upon completion of his prison term. McKinney pleaded guilty on August 26, 2013, to one count of being a felon in possession of a firearm.
According to information presented to the court, on December 28, 2012, a Providence Police patrolman and a Rhode Island State Police trooper working together in a marked cruiser on routine patrol encountered McKinney. As the patrolman attempted to speak with McKinney, he pivoted the right side of his body away from the officer, began to back away, turned and ran. As the patrolman and State Police trooper pursued him through the backyard of a Southside residence, McKinney tossed a loaded handgun to the ground. McKinney was apprehended a short distance away and the officers retrieved the firearm, a loaded 9mm semiautomatic pistol which contained eight hollow point bullets.
According to information presented to the court, McKinney admitted to Providence Police that he had been in possession of the firearm because he had “beefs with people” and mentioned the recent homicide of a relative.
According to information presented to the court, McKinney had been convicted previously in state court on drug possession and drug trafficking charges.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Pittsburgh Repeat Offender Sentenced to Prison for Tax ObstructionRead the Press Release
Michael Carlow, a resident of Pittsburgh, Pa., was sentenced today to serve 35 months in prison for corruptly endeavoring to obstruct the Internal Revenue Service (IRS), the Justice Department and IRS announced. The sentence was imposed by U.S. District Judge David Cercone for the Western District of Pennsylvania.
Carlow pleaded guilty to tax obstruction on Jan. 4, 2013. In an earlier case, Carlow pleaded guilty in 1996 to bank fraud and tax fraud in federal court and was sentenced to eight years in prison. After his release in 2002, Carlow resided with his girlfriend, Elizabeth Jones, in Pittsburgh.
According to documents filed in the case, the IRS assessed more than $6 million in overdue taxes, interest and penalties against Carlow for the years 1992 through 1996. However, from 2000 through 2011, in order to thwart efforts by the IRS to collect what he owed, Carlow concealed his assets and income through Jones and numerous nominee corporations. According to documents filed in the case, Carlow maintained a secret interest in various corporations and had fees and royalties paid to Jones rather than to himself. He also failed to report his ownership and control of corporate assets to the U.S. Probation Office and the IRS. Carlow filed false U.S. individual income tax returns for 2003-2006 and failed to file U.S. individual income tax returns from 2008 through 2011. In August 2011, Jones pleaded guilty to her conduct related to acting as a nominee for Carlow. Sentencing for Jones is scheduled for Dec. 18, 2013.
Kathryn Keneally, Assistant Attorney General for the department’s Tax Division, commended the investigative efforts of IRS - Criminal Investigation Special Agents, who investigated the case, and Tax Division Trial Attorneys Kenneth Vert and Jeffrey McLellan, who are prosecuting the case.
Pediatric Oncologist Pleads Guilty to Accessing Child PornRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO -- Christopher E. Pelloski, MD, 39, of Upper Arlington, Ohio, pleaded guilty in U.S. District Court today to one count of accessing child pornography.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Franklin County Sheriff Zach Scott, Upper Arlington Police Chief Brian Quinn and members of the Franklin County Internet Crimes Against Children Task Force announced the plea entered today before U.S. District Judge Algenon L. Marbley.
According to court documents, investigators patrolling the internet between March and July 2013 identified a computer belonging to Pelloski using a peer-to-peer file-sharing program and possibly possessing child pornography. The investigators executed a search warrant at Pelloski’s home on July 16, 2013 and seized numerous computers and digital media. A forensic preview of one of the computers revealed evidence of approximately 85 images of child pornography.
The crime is punishable by up to ten years in prison. Judge Marbley will set a date for sentencing.
Pelloski was a radiation oncologist at The Ohio State University Wexner Medical Center in Columbus, where he also held the title of Director of the Pediatric Radiation Oncology Program.
The Franklin County ICAC Task Force is a multi-agency effort dedicated to the fight against computer facilitated crimes against children. Since the task force began in 2009, over 400 arrests have been made and dozens of child victims of sex abuse and exploitation have been identified and rescued.
The following agencies are members:
Franklin County Sheriff’s Office
Upper Arlington Police Department
Grove City Police Department
Columbus Police Department
Grandview Heights Police Department
Whitehall Police Department
Hilliard Police Department
Westerville Police Department
Homeland Security Investigations
U.S. Secret Service
Ohio ICAC
Franklin County Prosecutor's OfficeThis case is being brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney's Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims.
U.S. Attorney Stewart commended the investigation by the ICAC Task Force and Assistant U.S. Attorney Heather Hill, who is prosecuting the case.
Palatka Man Found Guilty of Receiving and Possessing Child PornographyRead the Press Release
Jacksonville, Florida – Acting United States Attorney A. Lee Bentley, III announced that a federal jury in Jacksonville today has found Travis Rocky Dixon (35, Palatka) guilty of receiving and possessing videos of child pornography using the Internet. Dixon faces a minimum of 5 years, up to 20 years in prison on each of the two receipt charges and a maximum of 10 years in prison on the possession charge. After the return of the jury’s verdict, Dixon was remanded to the custody of the United States Marshals Service. A sentencing hearing has been scheduled for February 24, 2014.
Travis was indicted on March 28, 2012.
According to testimony and evidence introduced during the trial, during 2011, two different law enforcement officers downloaded videos depicting child pornography over the Internet from a host computer using Internet Protocol (IP) addresses that resolved back to Dixon’s residence located at 2011 Locust Avenue in Palatka. On January 18, 2012, a federal search warrant was executed at this residence. FBI Forensic examiners entered the residence and discovered that Dixon’s computer was, at that time, actively downloading video files with titles indicative of child pornography. During an interview, Dixon told agents, among other things, that he was the primary user of the computer, that he used a file sharing program to download video files of young girls, and that he had been looking at child pornography for about one year. Dixon also stated that on the morning of January 18, 2012, he got on the file sharing program and “just started looking around.” He stated that one thing led to another and he started downloading.
A subsequent forensic analysis of Dixon’s computer revealed that it contained at least 64 videos depicting children engaged in sexually explicit conduct and that at least two videos of child pornography were downloaded on the morning of January 18, 2012.
This case was investigated by the Federal Bureau of Investigation in Daytona Beach, Miami and Jacksonville, the Clewiston (Florida) Police Department, and the Putnam County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Onebanc Borrower Indicted for $1.5 Million Bank FraudRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; Christopher A. Henry, Special Agent in Charge of the IRS-Criminal Investigation Nashville Field Office; Howard S. Marshall, Acting Special Agent in Charge of the Federal Bureau of Investigation, and Christy Romero, Special Inspector General for TARP (SIGTARP) announced that an Indictment charging Alberto Solaroli, age 59, of Jacksonville, Florida, with one count of bank fraud was unsealed November 14, 2013. The indictment also seeks $1.5 million in forfeiture. A warrant has been issued for his arrest.
“As the financial institutions recover from the economic downturn, our investigative partners on the Financial Fraud Task Force are closely scrutinizing irregularities in loan transactions to determine if deceit is involved,” stated Thyer. If it is, those who circumvent a lender’s loan requirements through fraud will have to face justice and a substantial prison sentence.”
“Bank fraud burdens lenders with bad loans and weakens our economy. Today's indictment is strong reminder of the seriousness of these crimes," said Christopher A. Henry, Special Agent in Charge of the IRS Criminal Investigation. "Individuals who engage in this type of financial fraud should know they will not go undetected and will be held accountable.”
“The charge against Mr. Solaroli for defrauding OneBanc is the result of a strong collaborative effort among partners,” stated Acting FBI Special Agent in Charge Howard Marshall. “We will continue to work together with the goal of bringing Mr. Solaroli to Arkansas to answer these allegations.”
Solaroli, a Canadian citizen purporting to be the owner of patents for technology related to a more efficient combustion engine, was living and working in Jacksonville, Florida when he borrowed $1.5 million, via a personal line of credit, from OneBanc in April 2007. He was approved for the loan based on financial statement he signed in which he claimed assets of $170,900,000 with a net worth of more than $169 million. According to the Indictment, Solaroli falsified the nature and scope of his assets, the value of his assets, and his overall personal net worth. As a result of his sworn financial statement, Solaroli received a one year line of credit which he took within the first month of the loan approval, with over $900,000 being paid to Porche Motorsport, N.A. Solaroli never made a single payment on the loan causing OneBanc to sue Solaroli. In 2008, OneBanc received a civil judgment in Florida for $1.5 million dollars which Solarioli has not paid.
The maximum sentence for bank fraud is not more than 30 years imprisonment, not more than a $1,000,000 fine and/or not more than five years of supervised release.
The case was investigated by special agents from the IRS-Criminal Investigations, Federal Bureau of Investigation, SIGTARP, Federal Reserve, and the FDIC. The case is prosecuted by First Assistant United States Attorney Pat Harris and Assistant United States Attorney Angela Jegley.
According to TARP records, One Financial Corporation, the parent company of One Bank and Trust of Little Rock, Arkansas, received $17.3 million in federal taxpayer funds through the U.S. Department of the Treasury Troubled Asset Relief Program (TARP) in June 2009. To date, these funds are still outstanding.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
The charges set forth in an Indictment are merely allegations. A defendant is presumed innocent until proven guilty.
Northern California Couple Indicted for Filing False Claims for Refunds and for Filing Liens Against the IRS CommissionerRead the Press Release
Robert Eldon Robertson and his wife Esther Lynne Robertson of Manteca, Calif., were indicted on charges of filing two false claims for federal tax refunds, filing liens against the former Internal Revenue Service (IRS) commissioner and impeding the administration of federal tax laws, the Justice Department and IRS announced today. The indictment was unsealed yesterday in the Eastern District of California.
According to the indictment, the Robertsons filed two false federal income tax returns claiming large refunds based on fictitious Form 1099-OID withholdings: one for tax year 2005 claiming a $90,538 refund and one for 2007 claiming a $313,248 refund. The indictment also charges each of the Robertsons with filing a false lien against the property of the IRS commissioner for “a sum certain amount determined as triple the stated amount of any purported determination of tax liability.” According to the indictment, the Robertsons also sent a bogus “international promissory note” with a request that the IRS apply the purported $800,000 face value of the note towards their outstanding tax liabilities. The IRS also received a letter containing credit card bills belonging to the Robertsons asking the IRS to pay nearly $20,000 worth of their credit card debt.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted, the Robertsons face a maximum of five years in prison for each false claim count, three years for the obstruction count and 10 years for the count of filing false liens.
The case was investigated by both IRS-Criminal Investigation and the Treasury Inspector General for Tax Administration. It is being prosecuted by Trial Attorney Ignacio Perez de la Cruz of the department’s Tax Division and Assistant U.S. Attorney Matthew Segal in the Eastern District of California.
Newnan Dentist Sentenced to Prison for Unlawfully Distributing Controlled SubstancesRead the Press Release
ATLANTA - Hugh Maddux, the former owner of a dental practice in Newnan, Ga., has been sentenced for drug distribution.
"Opiate abuse has risen to epidemic levels both in Georgia and nationally with deadly consequences," said United States Attorney Sally Quillian Yates. “In a small dental practice where the defendant had known many of his patients for years, things quickly spiraled out of control as the number of prescriptions and addicted patients grew. This dentist, whether he was motivated by greed or was simply blind to the consequences, completely abandoned his responsibility as a health care provider, dispensing controlled substances to his patients without any regard for medical necessity.”
Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division commented on the sentencing, “It is disturbing when healthcare providers break the law by unlawfully distributing pain medications. This individual distributed highly addicting opiates with total ill-will and disregard for the safety of those receiving them. The success of this investigation is a direct result of the hard work put forth by dedicated DEA Atlanta Field Division Diversion investigators and the United States Attorney’s Office.”
According to United States Attorney Yates, the charges and other information presented in court: Maddux owned a dental practice in Newnan, Ga., until he sold it. Shortly after his practice was sold, it came to light that Maddux had written hundreds of prescriptions for controlled substances to his patients, many of whom were addicted to the drugs he prescribed. In October 2011, DEA Diversion Investigators received a complaint from a source who wished to remain anonymous that Maddux was writing illegal prescriptions from his dental office. In response to the complaint, DEA Investigators examined prescriptions from three pharmacies for controlled substances issued by Maddux to several patients named in the original complaint. Investigators discovered an unusually large number of narcotic prescriptions had been issued to these patients.
Shortly thereafter, Investigators interviewed one of Maddux’s patients who had been named in the original complaint as an abuser of opiate pain pills. This patient was a long-time dental patient at Maddux’s dental clinic. The patient explained that she received numerous controlled substance prescriptions from Maddux’s dental office, even though she had not been examined by him for at least eight months. She admitted to being addicted to opiate pain pills.
In January 2012, Investigators interviewed the owner of a nearby pharmacy. The owner told investigators that in early 2011 he became suspicious of the numerous prescriptions called in by Maddux’s clinic. The pharmacy owner told Maddux that his pharmacy would no longer accept prescriptions from his dental office unless Maddux spoke with pharmacy staff and approved it. Investigators soon discovered that Maddux had issued hundreds of prescriptions for Schedule II narcotics between October 2009 and October 2011.
From March 2012 to October 2012, Investigators interviewed several former patients, most of whom admitted to seeking Schedule II pain pills from Maddux for the purpose of supporting their drug addictions. Most of these patients routinely received prescriptions from Maddux without being examined, and many stated that prescriptions were left for them outside of the clinic for them to pick up after regular business hours. One patient even admitted to obtaining the prescriptions for the purpose of selling pills on the street.
On March 21, 2013, Investigators interviewed Maddux. He confirmed his signature on numerous prescriptions that could not be accounted for in the patient's chart. Maddux also confirmed that he left prescriptions for controlled substances taped to the back door of his practice for his patients to pick up after business hours – a practice he conceded was ripe for abuse. He acknowledged that many of the narcotic prescriptions he wrote were not medically necessary or supported by sound medical judgment.
Maddux, 62, of Newnan, Ga., has been sentenced by United States District Judge William S. Duffey to one year, one month in prison to be followed by three years of supervised release, an $8,000 fine, and 250 hours of community service. Maddux was convicted on these charges on August 14, 2013, after he pleaded guilty.
This case is being investigated by the Drug Enforcement Administration.
Assistant United States Attorney Kurt R. Erskine prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
New Jersey Man Pleads Guilty in Manhattan Federal Court in Connection with Waste-Hauling Industry Extortion SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that PETER LECONTE pled guilty in Manhattan federal court to participating in a conspiracy to commit extortion in connection with his role in a scheme to exert control over the commercial waste-hauling industry in the greater New York City metropolitan area and in parts of New Jersey. LECONTE, who was among 32 defendants charged in the case in January 2013, pled guilty today before U.S. District Judge P. Kevin Castel.
Manhattan U.S. Attorney Preet Bharara said: “Today, Peter Leconte became the fourteenth defendant to be convicted in this scheme to control parts of the waste disposal industry that reached across the New York City metropolitan area and into New Jersey. We remain committed to ensuring that all those connected to this conspiracy are held to account.”
According to the Indictment against LECONTE, other documents filed in Manhattan federal court, and statements made at related court proceedings:
LECONTE who is a made member of the Genovese Crime Family, participated in a scheme, along with other members and associates of three different Organized Crime Families of La Cosa Nostra (“LCN”) – the Genovese, Gambino, and Luchese Crime Families – to control various waste disposal businesses in the New York City metropolitan area and multiple counties in New Jersey. Members of the scheme engaged in various crimes including extortion, loansharking, mail and wire fraud, and stolen property offenses. As part of his involvement in the scheme, LECONTE demanded that a waste disposal company owner turn over a percentage of his company to LECONTE and his associates by threatening that the waste hauling company would be economically harmed if the owner did not comply with LECONTE’s demands.
LECONTE, 43, of Lodi, New Jersey, pled guilty to one count of participating in a conspiracy to commit extortion, and he faces a maximum sentence of 20 years in prison. LECONTE is scheduled to be sentenced by Judge Castel on April 4, 2014, at 11:00 a.m.
Eight other defendants have also recently pled guilty before Judge Castel in connection with this case:
- JONATHAN GREENE, 48, of Teaneck, New Jersey, pled guilty on September 19, 2013, to participation in a conspiracy to transport stolen waste hauling containers across state lines. He faces a maximum sentence of five years in prison and is scheduled to be sentenced on March 7, 2014, at 2:00 p.m.
- JOSEPH BERTOLINO, 47, of Wantage, New Jersey, pled guilty on September 26, 2013, to participation in a conspiracy to transport stolen waste hauling containers across state lines. He faces a maximum sentence of five years in prison and is scheduled to be sentenced on March 28, 2014, at 2:30 p.m.
- ROBERT ZARZUELA, 39, of North Bergen, New Jersey, pled guilty on September 26, 2013, to participation in a conspiracy to transport stolen waste hauling containers across state lines. He faces a maximum sentence of five years in prison and is scheduled to be sentenced on March 28, 2014, at 11:30 a.m.
- WILLIAM RIVERA, 48, of Queens Village, New York, pled guilty on October 18, 2013, to misprision of extortion. He faces a maximum sentence of three years in prison and is scheduled to be sentenced on March 14, 2014, at 11:00 a.m.
- BRIAN PETROLL, 47, of Columbia, New Jersey, pled guilty on October 21, 2013, to participation in a conspiracy to transport stolen waste hauling containers across state lines. He faces a maximum sentence of five years in prison and is scheduled to be sentenced on March 20, 2014, at 11:00 a.m.
- ROBERT FRANCO, 51, of Hartsdale, New York, pled guilty on October 21, 2013, to one count of participating in a conspiracy to transport stolen waste hauling containers across state lines and one count of participating in a conspiracy to transport stolen cardboard across state lines. He faces a maximum sentence of five years in prison on each count and is scheduled to be sentenced on March 21, 2014, at 12:00 p.m.
- STEPHEN MOSCATELLO, 53, of Piermont, New York, pled guilty on November 4, 2013, to participation in a conspiracy to transport stolen waste hauling containers across state lines. He faces a maximum sentence of five years in prison and is scheduled to be sentenced on April 11, 2014, at 2:00 p.m.
- HOWARD ROSS, 54, of Brooklyn, New York, pled guilty on November 5, 2013, to participation in a conspiracy to commit extortion. He faces a maximum sentence of 20 years in prison and is scheduled to be sentenced on March 26, 2014, at 11:00 a.m.
The charges against the remaining defendants are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation and the Westchester County Police Department.
The prosecution of this case is being handled by the Office’s Organized Crime Unit.
Assistant United States Attorneys Brian R. Blais, Natalie Lamarque, and Patrick Egan are in charge of the prosecution. Assistant United States Attorney Micah Smith of the Office’s Asset Forfeiture Unit is responsible for the forfeiture aspects of the case.
U.S. v. Carmine Franco et al. Indictment
Middlesex County, N.J., Man Sentenced to Four Years in Prison in $65 Million Stolen Identity Income Tax Refund Fraud SchemeRead the Press Release
NEWARK, N.J. – A Middlesex County, N.J., man was sentenced today to 48 months in prison for his role in one of the nation’s largest and longest running stolen identity refund fraud schemes ever identified, U.S. Attorney Paul J. Fishman.
The scheme caused more than 8,000 fraudulent U.S. income tax returns to be filed, which sought more than $65 million in tax refunds, and which resulted in losses to the United States of more than $12 million.
Manuel Rodriguez, 50, of New Brunswick, N.J., previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with conspiracy to defraud the United States, theft of government property and aggravated identity theft. Judge Cecchi imposed the sentence today in Newark federal court.According to documents filed in this case and statements made in court:
Stolen Identity Refund Fraud
Stolen Identity Refund Fraud (“SIRF”) is a common type of fraud committed against the United States government that results in more than $2 billion in losses annually to the United States Treasury. SIRF schemes generally share a number of hallmarks:
- SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico.
- SIRF perpetrators complete Individual Income Tax Return Form 1040s (“Form 1040”) using the fraudulently-obtained information, and falsifying wages earned, taxes withheld and other data. Perpetrators use data to make it appear that the “taxpayers” listed on the fraudulent 1040 forms are entitled to tax refunds – when in fact, the various tax withholdings indicated on the fraudulent 1040s have not been paid by the listed “taxpayers,” and no refunds are due.
- Perpetrators direct the U.S.Treasury Department to issue the refunds through checks (“Tax Refund Treasury Checks”) generated by the fraudulent 1049 forms to locations they control or can access, in various ways.
- With Tax Refund Treasury Checks now in hand, SIRF perpetrators generate cash proceeds. Certain SIRF perpetrators sell Tax Refund Treasury Checks at a discount to face value. In turn, the buyers then cash the Tax Refund Treasury Checks, either themselves or using straw account holders, by cashing checks at banks or check cashing businesses, or by depositing checks into bank accounts. When cashing or depositing Tax Refund Treasury Checks, SIRF perpetrators often present false or fraudulent identification documents in the names of the “taxpayers” to whom the checks are payable.
The Investigation
Federal law enforcement agencies created a multi-agency task force in New Jersey composed of investigators from the IRS and the U.S. Postal Inspection Service, along with the U.S. Secret Service, and with assistance from the Drug Enforcement Administration (the “New Jersey Task Force”).
An investigation led by the New Jersey Task Force, with assistance from U.S. Immigration and Customs Enforcement, Homeland Security Investigations, revealed that from at least 2007, dozens of individuals in the New Jersey and New York area have been engaged in a large-scale, long running SIRF scheme that caused more than 8,000 fraudulent 1040 forms to be filed, seeking more than $65 million in tax refunds, with more than $12 million in losses to the U.S. Treasury.
Rodriguez and others obtained personal identifiers, such as dates of birth and Social Security numbers, belonging to Puerto Rican citizens. They used those identifiers to create fraudulent 1040 forms, which falsely reported wages purportedly earned by the “taxpayers” and taxes purportedly withheld, to create the appearance that the “taxpayers” were entitled to tax refunds. The returns were filed electronically. By tracing the specific IP addresses that submitted the electronically-filed 1040s, law enforcement officers learned that just a handful of IP addresses created many of the fraudulent 1040 forms that led to the issuance of tax refund checks.
During the course of the investigation, members of the task force identified certain “hot spots” of activity and intercepted more than $22 million in refund checks – that had been applied for fraudulently – before they were delivered to members of the conspiracy.
In addition to the prison term, Judge Cecchi sentenced Rodriguez to three years of supervised release and ordered to pay restitution of $5.2 million.
U.S. Attorney Fishman praised special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; the U.S. Postal Inspection Service, under the direction of Inspector in Charge Marie L. Kelokates; the U.S. Secret Service, under the direction of Special Agent In Charge James Mottola; and the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl Kotowski, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Mala Ahuja Harker, Lakshmi Srinavasan Herman, Zach Intrater, and Danielle Walsman of the U.S. Attorney’s Office Criminal Division in Newark.13-438
Defense Counsel: Mark A. Berman, River Edge, N.J.
- SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico.
Maryland Man Sentenced to Five Years in Prison for Obstruction of Justice-Defendant Threatened Witness in Confrontation on Street; Witness Was Murdered Weeks Later-Read the Press Release
WASHINGTON – Antoine Mayhand, 28, of Capitol Heights, Md., was sentenced today to five years in prison for obstructing justice by confronting a witness in a criminal case that was pending at the time against his brother, U.S. Attorney Ronald C. Machen Jr. announced.
Mayhand was found guilty in September 2013 following a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Stuart G. Nash. Upon completion of his prison term, Mayhand will be placed on three years of supervised release.
At trial, the government’s evidence established that on Dec. 11, 2012, Christopher Ballard reported to the police that two men had tried to steal his car and then, when he resisted, shot at him. Mr. Ballard informed the police that he knew one of the assailants as “Unc.” Detectives with the Metropolitan Police Department (MPD) conducted an investigation, and Mr. Ballard identified a man named Delonte Smith as “Unc.”
As a result, on Jan. 30, 2013, Smith was arrested, charged with armed carjacking, and ordered held without bond pending trial. Smith and Mayhand are brothers. They grew up in and frequented the Benning Park area of Southeast Washington, which is where Mr. Ballard lived.
On May 28, 2013, at about 7:15 a.m., Mayhand encountered Mr. Ballard on Benning Road SE. Mayhand said, “I should put a knife on you and stab you!” Mr. Ballard called 911 and reported the threat while he walked up Benning Road to the Sixth District police station. During the following 17 minutes, Mr. Ballard stayed on the line with the dispatcher and Mayhand followed Mr. Ballard down the street. Moments before the police arrived on scene, Mayhand charged at Mr. Ballard as if he was going to assault him. When the police officers stopped Mayhand, and asked him what was going on, he responded, “Man, I don’t have time to f--- with that snitch!” He also told police that Mr. Ballard “got my brother locked up over some bull---.”
The criminal case against Mayhand stemmed from the May 28, 2013 confrontation. Mayhand has been in custody since his arrest that day.
On July 8, 2013, less than 48 hours before he was scheduled to testify in the trial against Delonte Smith, Mr. Ballard, 38, was murdered in Southeast Washington. Smith, 20, was nonetheless convicted of conspiracy to commit a crime of violence, two counts of assault with a dangerous weapon, and multiple related firearms offenses. He is awaiting sentencing.
The murder of Mr. Ballard is under investigation and no arrests have been made.
In announcing the sentence, U.S. Attorney Machen recognized the outstanding efforts of the detectives and officers from the Metropolitan Police Department who investigated the case. He also acknowledged the efforts of Supervisory Paralegal Specialist Anthony Griffith as well as Paralegal Specialists Antoinette Sakamsa and Theresa Nelson. Finally, he commended the work of Assistant U.S. Attorney Peter Lallas, who prosecuted the case.
13-396Manhattan Man Found Guilty in Federal Court of Sex Trafficking Three Minors and Possessing Child PornographyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ROYCE CORLEY, of New York, New York, was found guilty today in Manhattan federal court of sex trafficking of minors and possessing child pornography. CORLEY was convicted after a four-day jury trial before U.S. District Judge Robert P. Patterson.
U.S. Attorney Preet Bharara stated: “Sexually exploiting underage runaways by selling them for prostitution is a heinous and unfortunately all too common crime. Today’s guilty verdict against Royce Corley is a victory for the vulnerable girls he exploited, and for the larger fight to put an end to the sex trafficking of children.”
According to the Superseding Indictment filed in Manhattan federal court, other court filings, and the evidence presented at trial:
Between at least June 2011 and January 2012, using the alias “Ron Iron,” the defendant ran a prostitution ring in Manhattan that sold underage girls for sex. CORLEY’s victims included at least three 16-year-old runaway girls who had no place to stay when they met CORLEY (the “Minor Victims”). He prostituted each of his Minor Victims using the same methods. CORLEY photographed them in sexually-explicit poses, created advertisements for prostitution on Backpage.com, provided the Minor Victims with cell phones to communicate with potential clients, and furnished them with apartments all over Manhattan in which they were to meet clients for paid sex. CORLEY posted the advertisements to Backpage.com from his home and work computers.
For six months in the fall of 2011, CORLEY made thousands of dollars a week from trafficking his Minor Victims for sex on Backpage.com, all while CORLEY knew that they were each 16 years old.
On January 25, 2011, CORLEY was arrested by members of the New York City Police Department following an undercover sting which rescued one of the Minor Victims. At the time of his arrest, CORLEY had in his pocket a thumb drive, which contained child pornography of one of his Minor Victims.
CORLEY, 29, of Manhattan, New York, was found guilty of three counts of sex trafficking of minors and one count of possessing child pornography. He faces a mandatory minimum term of 10 years in prison, and a maximum term of life in prison. CORLEY is scheduled to be sentenced by Judge Patterson on February 20, 2014.
Mr. Bharara praised the efforts of the Federal Bureau of Investigation, the New York City Police Department, and the New York County District Attorney’s Office for their work in this case.
This case is being handled by the Office’s Organized Crime Unit. Assistant U.S. Attorneys Tatiana R. Martins and Amanda Kramer are in charge of the prosecution.
Liberty Man Indicted for Meth Conspiracy, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Liberty, Mo., man was indicted by a federal grand jury today on charges related to methamphetamine trafficking and illegally possessing firearms.
Alan Glenn Hampton, 42, of Liberty, was charged in a 10-count indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Hampton participated in a conspiracy to distribute methamphetamine from Feb. 18, 2011, to March 1, 2012. Hampton is also charged with six counts of distributing methamphetamine and one count of possessing methamphetamine with the intent to distribute.
The indictment also charges Hampton with two counts of being a felon in possession of a firearm. According to the indictment, Hampton, who has a prior felony conviction, was in possession of a Jimenez Arms 9mm pistol on Nov. 22, 2011, and a Ruger .380-caliber semi-automatic handgun on Dec. 1, 2011.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Patrick Edwards. It was investigated by the Jackson County Drug Task Force, the Independence, Mo., Police Department, the Holt County, Mo., Sheriff’s Department, the Buchanan County Drug Strike Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration.Justice Department and San Francisco Restaurant Settle Immigration-Related Discrimination ClaimRead the Press Release
The Justice Department today reached an agreement with Kim Hoang Coffee and Fast Food, a restaurant in San Francisco, resolving claims that the company violated the anti-discrimination provision of the Immigration and Nationality Act (INA).
In a charge filed with the department, a work-authorized immigrant alleged, and the department found, that Kim Hoang Coffee and Fast Food improperly rejected valid work-authorization documents when re-verifying her authorization for employment, which caused the immigrant to believe she had been terminated. The investigation also revealed that the employer believed she could ask non-U.S. citizens to produce specific documents to establish work authorization upon initial hire, but did not need to make similar demands of U.S. citizens. The INA’s anti-discrimination provision prohibits employers from discriminating against non-U.S. citizens in the employment eligibility verification process by demanding different documentation than U.S. citizens are required to present.
In response to the department’s investigation, Kim Hoang Coffee and Fast Food offered to rehire the charging party and provide back pay for the charging party’s month of lost wages. Under the terms of the agreement, Kim Hoang Coffee and Fast Food must pay $485 in civil penalties to the United States, undergo department training on the anti-discrimination provision of the INA and be subject to monitoring of its employment eligibility verification practices for a period of three years. The employer also agreed to post the Office of Special Counsel for Immigration-Related Unfair Employment Practices’ (OSC) “Right to Work” poster, which highlights the anti-discrimination provision of the INA. The case settled prior to the department filing a complaint in this matter.
“Imposing different documentary requirements on individuals based on their citizenship status during the employment eligibility verification process is discrimination prohibited by the INA,” said Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels. “The Department of Justice is committed to protecting U.S. citizens and all work-authorized immigrants from document abuse.”
The OSC is responsible for enforcing the anti-discrimination provision of the INA. For more information about protections against employment discrimination under the immigration laws, call the OSC’s worker hotline at 1-800-255-7688 (1-800-237-2525, TDD for hearing impaired), call the OSC’s employer hotline at 1-800-255-8155 (1-800-362-2735, TDD for hearing impaired), sign up for a no-cost webinar at www.justice.gov/crt/about/osc/webinars.php, email [email protected] or visit the website at www.justice.gov/crt/about/osc .
Jeremy Hammond Sentenced to 10 Years in Prison for Hacking into the Stratfor Website and Other Company, Federal, State, and Local Government WebsitesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that JEREMY HAMMOND, a/k/a “Anarchaos,” was sentenced in Manhattan federal court to 10 years in prison in connection with his role in, among other hacks, the December 2011 hack of Strategic Forecasting, Inc. (“Stratfor”), a global intelligence firm in Austin, Texas, that affected hundreds of thousands of victims, including employees and subscribers. HAMMOND was also sentenced in connection with his involvement in multiple additional hacks, including computer intrusions into the Federal Bureau of Investigation’s Virtual Academy, the Arizona Department of Public Safety, the Boston Police Patrolmen’s Association, and the Jefferson County, Alabama, Sheriff’s Office. HAMMOND pled guilty in May 2013, and was sentenced today by Chief U.S. District Judge Loretta A. Preska.
Manhattan U.S. Attorney Preet Bharara stated: “As he admitted through his plea of guilty, Jeremy Hammond launched a series of computer hacks that stole confidential information pertaining to companies, law enforcement agencies, and thousands of innocent individuals. His sentence underscores that computer hacking is a serious offense with damaging consequences for victims, and this Office is committed to punishing the perpetrators of such crimes.”
According to the Complaint, the Superseding Indictment, the Superseding Information, and statements made in other public filings and in court:
In December 2011, HAMMOND and other members of “AntiSec” – an off-shoot of “Anonymous,” a loose confederation of computer hackers and others – hacked into computer systems used by Stratfor. HAMMOND and his co-conspirators stole confidential information from those computer systems, including Stratfor employees’ emails as well as account information for approximately 860,000 Stratfor subscribers or clients. HAMMOND and his co-conspirators also stole credit card information for approximately 60,000 credit card users and used some of the stolen data to make more than $700,000 in unauthorized charges.
In addition, at his guilty plea, HAMMOND admitted his involvement in multiple additional hacks, including: the June 2011 hack of computer systems used by the Federal Bureau of Investigation’s Virtual Academy; the June 2011 hack of computer systems used by the Arizona Department of Public Safety, a state law enforcement agency in Arizona; the July 2011 hack of computer systems owned by Brooks-Jeffrey Marketing, Inc., a company based in Mountain Home, Arkansas, and various law enforcement-related websites; the August 2011 hack of computer systems used by Special Forces Gear, a company based in California; the August 2011 hack of computer systems used by Vanguard Defense Industries, a company based in Texas; the October 2011 hack of computer systems used by the Jefferson County, Alabama Sheriff’s Office; the October 2011 hack of computer systems used by the Boston Police Patrolmen’s Association; and the February 2012 hack of computer systems used by the Combined Systems, Inc., a company based in Pennsylvania.
HAMMOND and his co-conspirators publicly disclosed some of the confidential information they had stolen from these various hacks, including personal information such as the home addresses of hundreds of current and retired law enforcement officers and financial information such as the credit card data of thousands of individuals.
HAMMOND, 28, of Chicago, Illinois, was sentenced in connection with his guilty plea to one count of conspiracy to engage in computer hacking. Restitution will be determined at a later date.
The Office’s Complex Frauds Unit is handling the case.
Hartford Man Sentenced to Federal Prison for Illegally Distributing Prescription PainkillersRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ANDREW PARENTE, 76, of Hartford, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to nine months of imprisonment, followed by three years of supervised release, for illegally distributing prescription narcotics.
According to court documents and statements made in court, in October and November 2011, PARENTE and Robert Gentile conspired to distribute and distributed Schedule II controlled substances, including oxycodone, in a form commonly known as OxyContin, and hydromorphone, in a form commonly known as Dilaudid.
PARENTE was arrested on February 10, 2012. On January 2, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute a Schedule II controlled substance, and one count of possession with intent to distribute, and distribution of, a Schedule II controlled substance.
In November 2012, Gentile pleaded guilty to multiple drug and firearms offenses and, on May 9, 2013, he was sentenced to 30 months of imprisonment.
This matter was investigated by the Federal Bureau of Investigation, with the assistance of the U.S. Department of Health and Human Services, Office of Inspector General, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Connecticut State Police. The case was prosecuted by Assistant U.S. Attorney John H. Durham.
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(203) 821-3722 [email protected]Goldfield, Nev. Man Sentenced to Two Years in Prison for Unlawful Possession and Attempted Purchase of FirearmsRead the Press Release
LAS VEGAS, Nev. – A long-time resident of Goldfield, Nev. was sentenced today to two years in federal prison and three years of supervised release for improperly possessing and attempting to purchase firearms, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Michael Rippie, 67, was sentenced by U.S. District Judge Gloria M. Navarro. Rippie was convicted by a jury on Aug. 9, 2013, of possession of a firearm by a person previously found to be a mental defective and committed to a mental institution and making false statements to acquire firearms. Rippie, who was arrested and charged in April 2013, had been released pending trial with special conditions and was residing in Pahrump with his former wife. Rippie was placed in federal custody immediately following sentencing.
“Federal laws prohibit certain individuals from prohibiting firearms, including felons, drug addicts, illegal aliens, persons convicted of domestic violence offenses or subject to restraining orders, and persons who have been previously adjudicated as a mental defective or committed to mental institution,” said U.S. Attorney Bogden. “Too many recent shooting incidents have demonstrated how dangerous firearms can be when they are in the hands of someone with a mental disorder. We will work with our local and federal law enforcement partners to ensure that persons who unlawfully possess firearms in violation of these laws are prosecuted federally.”
The case was investigated by ATF and prosecuted by Assistant United States Attorney Eric Johnson.
According to the court records, in 1971, Rippie was adjudicated not guilty by reason of insanity for a 1970 armed robbery in Colorado and was committed to a mental institution. On about Sept. 10, 2010, Rippie knowingly made a false written statement to a firearms dealer in Tonopah, Nev., in an attempt to purchase a long gun, stating that he had not been adjudicated a mental defective or committed to a mental institution. On April 10, 2013, Rippie was arrested at his home in Goldfield with 15 firearms, including two loaded semi-automatic assault-type rifles with extended 30-round clips and a loaded semi-automatic .40 caliber pistol. Rippie also possessed over 22,000 rounds of ammunition at his residence. Rippie was well-known to law enforcement and others in the Goldfield and Tonopah areas and had one conviction and 13 arrests over the last 48 years, including six involving firearms.Gettysburg Attorney Pleads Guilty to Defrauding Clients of OverRead the Press Release
$3 Million
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Wendy Weikal-Beauchat, age 46, of Gettysburg, Pennsylvania, pleaded guilty today to wire fraud and money laundering before U.S. District Court Judge John E. Jones, III.
According to United States Attorney Peter J. Smith, Weikal-Beauchat, a former attorney at a Gettysburg law firm, was charged earlier this month with defrauding eight clients of more than $3 million from 2007 through 2013. She misappropriated client funds to pay for her business and personal expenses.
Weikal-Beauchat concealed her fraudulent actions by providing clients with bogus Certificates of Deposit and IRS 1099 Interest Forms. The investigation is continuing in an effort to identify other clients who may have been victimized by her scheme.
The investigation is being conducted by Internal Revenue Service, Criminal Investigations, and the FBI.
The case is being prosecuted by Assistant U.S. Attorney Joseph J. Terz and Special Assistant U.S. Attorney Brian Sinnett from the Adams County District Attorney’s Office.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.In this case, the maximum penalty under the federal statute is 30 years’ imprisonment, a term of supervised release following imprisonment, a forfeiture and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Former Watertown Police Officer Sentenced for Passing False Prescriptions Using Another's IdentityRead the Press Release
BOSTON - A former Watertown Police Officer was sentenced today for passing false prescriptions, using a stolen identify.
Joseph Deignan, 58, was sentenced by U.S. District Court Judge Douglas P. Woodlock to 90 days in prison and three years of supervised release. In August 2013, Deignan pleaded guilty to unlawful possession of a controlled substance by fraud and of fraud in connection with identification documents.
Deignan, a former Watertown Police Officer who retired in February 2012, used the identity of another person to obtain oxycodone and other controlled substances by forging prescriptions in the other person’s name. Deignan stole the driver’s license of the person in 2010, while he was working as the traffic supervisor for the Watertown Police Department. Using various doctors’ information, Deignan forged over 100 prescriptions for controlled substances and used the stolen identity to fill the scripts.
United States Attorney Carmen M. Ortiz and John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement today. The case was prosecuted by Eugenia M. Carris of Ortiz’s Public Corruption Unit.
Former Vice President at Harrisburg Area Community College Pleads GuiltyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Nancy Rockey, age 55, of Harrisburg, Pennsylvania, pleaded guilty Thursday to wire fraud before U.S. District Court Chief Judge Christopher C. Conner.
According to United States Attorney Peter J. Smith, Rockey was employed by Harrisburg Area Community College (HACC) from 1980 until her resignation in February 2012. At the time of her resignation, Rockey was Vice-President of the Harrisburg campus and Vice-President of College and Community Development.
In October 2013, Rockey was charged with using a credit card issued by HACC, to make online purchases of Target gift cards which she then used to purchase non-work-related items for herself, her family, and her friends. Rockey then created bogus invoices, later submitted to the HACC Finance Office, to conceal the unauthorized purchases.
Rockey is charged with purchasing $228,000 worth of gift cards with her HACC credit card.
The investigation was conducted by the FBI and the Dauphin County Criminal Investigations Division. The case is being prosecuted by Assistant U.S. Attorney Joseph J. Terz.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Former Skagit County Bank CEO Sentenced to Three Years in Prison for Falsifying Regulatory DocumentsRead the Press Release
The former Chairman and CEO of Summit Bank, a Skagit County community bank, was sentenced today in U.S. District Court in Seattle to three years in prison and two years of supervised release for Making a False Entry in a Report of an Insured Bank, announced U.S. Attorney Jenny A. Durkan. JAMES E. BISHOP, 70, of Mount Vernon, Washington pleaded guilty August 21, 2013. In his plea agreement BISHOP admits that between 2009 and 2011, BISHOP and his son, who was the bank president, concealed from regulators the mounting number of loans that were in default. Summit bank was ultimately closed by state regulators and sold in May 2011. At sentencing Chief U.S. District Judge Marsha J. Pechman noted the length of the scheme, the number of accounts manipulated and the control BISHOP exerted over employees to stop them from notifying regulators. “This conduct hurts communities greatly,” Chief Judge Pechman said.
“This defendant falsified reports to save ‘his’ bank and his fortune,” said U.S. Attorney Jenny A. Durkan. “Rather than be up front with the regulators about the condition of the bank, the defendant and his son initiated a high-stakes shell game to deceive the FDIC. Through his actions he shifted the risk for losses to the FDIC, and consequently to the public.”
According to the records filed in the case, in 2005 JAMES E. BISHOP became CEO of Summit Bank and Chairman of Summit Bank’s Board of Directors. His son, James E. Bishop II, served as president of the bank, and both were significant shareholders in the bank. James E. Bishop II has also been charged in the case. The younger BISHOP served as president of Summit Bank from 2005-2011. According to the statement of facts in the plea agreement, the bank was required to file various reports with the Federal Deposit Insurance Corporation (FDIC) disclosing the loans the bank had made and the status of the loans. In his plea agreement BISHOP admits that between 2009 and 2011, he caused the bank to undertake financial transactions related to past due loans, which concealed the overdue loans in the quarterly reports that went to the FDIC, essentially hiding millions of dollars in loans that were past due, and causing the bank to appear financially healthier than it actually was. For example, in one report on June 30, 2010, the Bank reported past due loans of approximately $6 million in outstanding loans, payments on which were past due for 30 or more days. In truth, the bank had at least $13 million in outstanding loans, payments on which were past due for 30 or more days.
“The FBI values its partnership with the FDIC Office of Inspector General because the complexity of a fraud like this requires tremendous time and expertise,” said Special Agent-in-Charge Laura M. Laughlin of the FBI Seattle office. “Collaboration between our offices brought specialized resources to bear and the USAO commendably used the uncovered information to bring a significant schemer to justice.”
“Today Mr. Bishop is being held accountable for deceiving regulators and seeking to undermine the integrity of the FDIC’s examination process,” said Fred W. Gibson Jr., Acting Inspector General for the Federal Deposit Insurance Corporation. “In addition to his prison sentence, it is fitting that he will be banned from participating in the affairs of any federally insured financial institution going forward. We appreciate the U.S. Attorney’s Office’s efforts in bringing this matter to a successful conclusion and achieving results that should deter others from similar criminal activity.”
As part of a civil enforcement agreement entered with the FDIC, BISHOP will pay $300,000 to the FDIC.
James E. Bishop II is scheduled for sentencing on December 6, 2013.
The case was investigated by the FDIC Office of Inspector General (FDIC-OIG) and the FBI. The case was prosecuted by Assistant United States Attorney Matthew Diggs.
Former Omaha Police Officer Sentenced for Improper Computer SearchesRead the Press Release
United States District Court Judge Joseph F. Bataillon, sentenced Kevin Cave, age 36 of Bellevue, Nebraska, following his conviction for Exceeding Authorized Access to a Protected Computer. Cave was sentenced to three years of probation and fined $8.000.00.
Cave worked as an Omaha Police Officer and, in that capacity, had been granted access to the NCJIS, (Nebraska Criminal Justice Information System), database. NCJIS is a protected database that links numerous databases together and provides law enforcement officers with a broad range of information on suspects and witnesses. Officers granted access to NCJIS are trained that the database contains sensitive information, is protected from unauthorized disclosures, and can only be searched for legitimate law enforcement purposes. Commencing in approximately March of 2010 and continuing up to August of 2012, Kevin Cave began conducting unauthorized searches of the NCJIS database looking for information that would assist car dealerships, owned by relatives of his, locate cars for repossession. Cave conducted the improper searches because he was being paid up to $200 for every successful lead he provided. In total, Cave received over $16,000.00 for having conducted the improper searches.
This case was investigated by the Federal Bureau of Investigation.
Former Miami Mortgage Broker and Real Estate Agent Sentenced for Role in Multimillion-Dollar Mortgage Fraud SchemeRead the Press Release
A former Florida-licensed real estate associate and mortgage broker was sentenced to serve 135 months in prison for his role in a $2.4 million mortgage fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division made the announcement.
Jose Armando Alvarado, 64, of Miami, was found guilty on Sept. 9, 2013, of eight counts of wire fraud and six counts of bank fraud and was sentenced on Nov. 14, 2013, by U.S. District Judge William J. Zloch of the Southern District of Florida. In addition to his prison term, Alvarado was ordered to serve three years of supervised release.
Two of Alvarado’s co-conspirators previously convicted at the same trial of various counts of wire and bank fraud were also sentenced on Nov. 14, 2013. Alberto Morejon, 27, of Miami, a former loan closer and title agent, was sentenced to serve 36 months in prison. Alvarado’s sister, Reyna Orts, 58, of Miami, a former mortgage broker and the mother of Morejon, was sentenced to serve 50 months in prison.
According to court documents and evidence presented at trial, Alvarado, along with his co-conspirators, operated a mortgage fraud scheme by controlling and operating three real estate entities in the Miami area: South Florida Realty; American Mortgage Lending, a mortgage broker; and Royal Atlantic Title, a title insurance agency. From February 2004 through November 2009, Alvarado and his co-conspirators used their control over these three companies to falsify and misrepresent important facts provided to financial institutions in order to fraudulently secure loans totaling more than $2.4 million. The loans were often obtained through submitting falsified supporting documentation, such as false tax returns, W2 forms, bank statements and employment verifications.
Evidence at trial showed that Alvarado and his co-conspirators subsequently enriched themselves by diverting loan proceeds, collecting brokerage fees and inflating real-estate commissions generated by the sales of the properties. Alvarado and his co-conspirators obtained control of multiple properties during the real estate market boom with the intent to flip and sell them for a profit or control them as rental properties. The defendants used their knowledge and experience in the real estate industry to conceal the scheme by executing quit-claim deeds and failing to record, and falsely recording, mortgage deeds and other documentation with the State of Florida.
The case was investigated by the FBI’s Miami Field Office and the Miami-Dade Police Department. The case was prosecuted by Trial Attorney Nathan Dimock of the Criminal Division’s Fraud Section.
Former Jefferson Parish Sheriff's Deputy, Mark Hebert, Pleads Guilty to Civil Rights, Bank Fraud and Aggravated Identity Theft ViolationsRead the Press Release
Former Jefferson Parish Sheriff’s Deputy MARK HEBERT, 48, pled guilty today to one civil rights violation, five bank fraud violations and one aggravated identity theft violation, announced Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division, U.S. Attorney Kenneth A. Polite Jr. for the Eastern District of Louisiana, Special Agent in Charge Michael J. Anderson of the FBI New Orleans Field Office and Sheriff Newell Normand from the Jefferson Parish Sheriff’s Office.
According to the plea agreement and other documents, HEBERT engaged in a scheme to defraud J.P. Morgan Chase Bank (Chase Bank) from Aug. 2, 2007 through Nov. 21, 2007. The scheme began when HEBERT, in his capacity as a Jefferson Parish Sheriff’s Deputy, responded to an automobile accident involving Albert Bloch and stole Bloch’s VISA debit card, as well as other items. While Bloch was hospitalized following the accident, HEBERT used that debit card to make unauthorized purchases of merchandise, including two Global Positioning System units, and to withdraw funds from Bloch’s Chase Bank account via Automatic Teller Machines (ATMs). After Chase Bank cancelled the debit card due to Bloch filing a dispute with the bank, HEBERT continued his scheme to defraud by negotiating and attempting to negotiate forged checks drawn from Bloch’s account. HEBERT then obtained the replacement debit card sent to Bloch and used that card to make further unauthorized transactions at Chase Bank ATMs. Bloch has not been seen since 2007.
By pleading guilty, HEBERT admitted that he violated Bloch’s civil rights when he responded in his official capacity to Bloch’s automobile accident and unreasonably seized and converted Bloch’s property, including funds that Bloch had on deposit with Chase Bank. HEBERT also admitted that on at least five occasions he executed his bank fraud scheme against Chase Bank by unlawfully using Bloch’s original ATM card, replacement ATM card and Chase Bank checks. In addition, HEBERT admitted that on at least one occasion he used Bloch’s driver’s license number and social security number in order to execute his bank fraud scheme and thereby committed aggravated identity theft.
“When the defendant officer responded to an automobile accident and stole the victim’s credit cards and used them to commit fraud, he violated not only the law, but the core law enforcement values of trust and respect for civil rights,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Civil Rights Division will continue to work with our partners in the U.S. Attorney Offices and FBI to ensure that civil rights violations are identified and where appropriate prosecuted.”
“Mark Hebert’s guilty plea occurred as a result of the successful collaboration of local and state law enforcement agencies in our continued fight to eradicate corruption in our community,” said U.S. Attorney Kenneth A. Polite for the Eastern District of Louisiana. “The U.S. Attorney’s Office and its law enforcement partners are delivering the same message in a unified voice: we will not tolerate abuse of power and official position. If you violate the public trust in Southeast Louisiana, you will be held accountable.”
“In as much as I am very disappointed in the behavior of former JPSO officer Mark Hebert as outlined in his guilty plea today, I am extremely proud of the persistence of my criminal investigators and the efforts of the U. S. Attorney's Office in this investigation,” stated Jefferson Parish Sheriff Newell Normand. “My office will not tolerate any form of corruption.”
A sentencing hearing has been scheduled before the Honorable Jane Triche-Milazzo on March 24, 2014. For each of the five counts of bank fraud, HEBERT faces a maximum statutory sentence of 30 years in prison and a $1,000,000 fine. For the count of aggravated identity theft, HEBERT faces a maximum statutory sentence of two years in prison and a $250,000 fine. For the count charging a civil rights violation, HEBERT faces a maximum statutory penalty of one year in prison and a $100,000 fine.
The investigation of this matter was conducted by the Jefferson Parish Sheriff’s Office Detective’s Bureau and the FBI. The case is being prosecuted by Assistant U.S. Attorney Steve Parker, Assistant U.S. Attorney Tony Sanders and Civil Rights Division Trial Attorney Shan Patel.
Former Davenport Man Sentenced for Robbery of Family Credit UnionRead the Press Release
DAVENPORT, IA - On November 15, 2013, Elbert Lee Karr, Jr., age 48, formerly from Davenport, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 151 months imprisonment, after pleading guilty to bank robbery, announced United States Attorney Nicholas A. Klinefeldt. Karr was also ordered to serve three years of supervised release following the period of imprisonment, and to pay $2,920 in restitution and $100 towards the Crime Victims Fund.
On October 22, 2012, Karr entered the Family Credit Union in Davenport, Iowa, received cash after presenting a demand note, and left the bank. Karr was arrested later that evening, after refusing repeated attempts by law enforcements to stop while driving a stolen semi-tractor. Karr was found in possession of some of the stolen money and admitted committing the robbery.
This case was investigated by the Federal Bureau of Investigations, the Davenport, Iowa, Police Department, the Iowa State Highway Patrol, and the Cedar County Sheriff’s Department. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Former Broadlands Loan Officer Convicted of FraudRead the Press Release
ALEXANDRIA, Va. – Ging-Hwang “Felicia” Tsoa, 59, of Broadlands, Va., was convicted today by a federal jury of conspiracy to commit bank fraud and two counts of bank fraud in connection with her role in a large-scale mortgage fraud scheme.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the verdict was accepted by United States District Judge James C. Cacheris.
Tsoawas indicted on April 4, 2013, by a federal grand jury, and faces a maximum penalty of 30 years on each count when she is sentenced on February 7, 2014.
According to court records and evidence at trial, Tsoa used her position as a loan officer at First Empire Mortgage in Fairfax, Va. and Lifetime Financial Services in Herndon, Va., to defraud mortgage lenders as part of a scheme to profit from fraudulently-obtained mortgage loans and the purchase of residential real estate in northern Virginia. As part of the scheme, co-conspirator Robert Mikail recruited five individuals, known as “straw buyers,” to serve as nominal purchasers in these transactions. Tsoa worked with Mikail and co-conspirator Bing-Sing “Cindy” Wang, the owner of Lifetime Financial Services, to falsify critical information on the straw buyers’ loan applications in order to get the loans approved and the transactions closed. In particular, virtually all of the fraudulent loan applications falsely identified Mikail’s Ashburn, Va., jewelry store, Opus Jewelry, as the borrower’s employer, which the conspirators would then falsely verify to the lenders as part of the loan approval process.
In total, the conspiracy involved the purchase of approximately 36 homes in Ashburn, Va., from 2005 through 2007, and approximately $19.9 million in loan proceeds disbursed on the basis of fraudulent loan applications. According to the evidence at trial, Tsoa served as the loan officer on at least nine of these transactions, which resulted in approximately $1.4 million in losses to lenders.
Co-conspirator Wang pleaded guilty to a conspiracy charge on November 20, 2012, and was sentenced to 24 months in prison on February 26, 2013. Co-conspirator Mikail pleaded guilty to a conspiracy charge on July 17, 2013, and will be sentenced on January 10, 2014
This case was investigated by the FBI’s Washington Field Office. Assistant United States Attorney Paul J. Nathanson and Jasmine H. Yoon 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.Five Defendants Sentenced for Auto Accident Insurance FraudRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that five defendants were sentenced on Wednesday and Thursday by U.S. District Judge S. Maurice Hicks Jr. for their roles in a staged accident insurance scheme. The defendants pleaded guilty July 15, 2013.Larry Kimble, 33, of Athens, La., was sentenced to 13 months in prison and three years of supervised release for conspiracy and wire fraud. He was also ordered to pay $7,463 in restitution.
Bobby Lee Kimble, 42, of Athens, La., was sentenced to 14 months in prison and three years of supervised release for conspiracy, wire fraud and health care fraud.
Joe Abbott, 54, of Arcadia, La., was sentenced to four months in prison and three years of supervised release for conspiracy, mail fraud and health care fraud.
Marcus Kimble, 30, of Arcadia, La., was sentenced to one day in prison, time served and three years of supervised release for conspiracy, wire fraud, and health care fraud.
Monica Jenkins, 25, of Athens, La., was sentenced to five years of probation for conspiracy, mail fraud and health care fraud.
The members of the ring conspired to stage automobile accidents and submit fraudulent claims to various insurance companies for bodily injury and property damage. The “Kimble Ring,” was composed of family, friends and associates who staged two automobile rear-end collisions, single automobile collisions with trees, and false hit-and-run claims. The false claims were filed for accidents occurring in Bienville Parish; Ruston, La.; Athens, La.; and Claiborne Parish between December 2007 and March 2008.
Sentencing of co-defendant Damario Henderson, 29, of Homer, La., who is charged with conspiracy and health care fraud, has been delayed until December 18, 2013.
“The consumers pay the ultimate price through higher costs and premiums when fraudulent schemes like this are carried out,” Finley stated. “This group was motivated by greed, and their goal was to get as much money as possible by defrauding insurance companies out of thousands of dollars. Their actions placed unnecessary burdens on the local insurance system, causing money and time to be misspent on the false claims. This office will continue to prosecute these types of cases to the fullest extent of the law.”
The Louisiana State Police investigated the case. Assistant U.S. Attorney Earl M. Campbell prosecuted the case.Federal Grand Jury Indicts Dallas Police Department Vice DetectiveRead the Press Release
DALLAS — A detective who worked in the Dallas Police Department’s (DPD) Vice Unit, Jose Luis Bedoy, 39, of Dallas, was arrested this morning, by special agents with the FBI, on federal felony charges of obstruction of official proceedings and obstruction of the due administration of justice, as outlined in an indictment that was returned earlier this week by a federal grand jury in Dallas and was just unsealed. Bedoy made his initial appearance before U.S. Magistrate Judge David L. Horan this afternoon and was released on conditions. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically, the indictment charges Bedoy with three counts of obstruction of an official proceeding and one count of obstruction of due administration of justice.
According to the indictment, from November 28, 2007 through July 2013, Bedoy was assigned to the DPD’s Vice Unit. In early 2009, after a DPD Vice raid on an adult entertainment establishment, Bedoy met a female prostitute who worked at the establishment. Later, when she tried to reclaim property DPD seized during the raid, Bedoy assisted her.
Bedoy later contacted her and expressed an interest in seeing her and wanting a massage from her. They began communicating on a weekly basis, and Bedoy began giving her advice on the adult entertainment establishments at which she could work. Bedoy later met her for a massage, and during the massage, he explained how to screen her clients to avoid being arrested. Bedoy and the female began an intimate relationship.
From 2008 until 2013, while they were engaged in a sexual relationship, Bedoy provided law enforcement-sensitive information to her about DPD Vice Unit prostitution raids and other enforcement actions. In January 2013, Bedoy met her at her residence and showed her a DPD investigative case file targeting “Wet,” an adult entertainment establishment, which he had brought with him. Two days later, Wet was raided, and after the raid, Bedoy arranged to meet her at her residence.
In early 2013, according to the indictment, the Coppell Police Department began an investigation of “Studio Serene,” an adult entertainment establishment, and enlisted the help of the DPD Vice Unit in its investigation. In March 2013, Bedoy advised the female that Studio Serene was being targeted and advised her against working there. Bedoy told her that the information was only for her benefit, but she relayed the information to Studio Serene’s owner. Based on that information, Studio Serene closed for a number of days.
After it reopened, on April 25, 2013, the Coppell Police Department and the DPD Vice Unit raided Studio Serene. While law enforcement conducted interviews of individuals working at Studio Serene, members of the Coppell Police Department were informed that a DPD Vice Unit detective, named “Jose,” had “tipped off” the business weeks earlier about the pending raid. The phone number provided for “Jose” matched Bedoy’s contact information on his DPD personnel file. Based on the information received by the Coppell Police Department, an FBI and federal grand jury investigation of Bedoy were initiated.
According to the indictment, on multiple occasions in June 2013, Bedoy instructed the female on how to avoid being arrested while using Backpage.com for prostitution. He advised her to not only change her phone number every two weeks, but also advised her of the best days and times to work and the best days and times to avoid. On June 25, 2013, Bedoy contacted her to ensure that she wasn’t working Backpage.com during that week because DPD Vice was “working Backpage” that week. In fact, that same day, DPD Vice Unit and the FBI conducted a joint operation that was designed to deter prostitution by directing enforcement efforts at Internet-based prostitution. Bedoy was listed on the DPD Vice Unit roster of operation participants. On July 11, 2013, the FBI advised Bedoy and other DPD Vice Unit detectives that a federal grand jury investigation had been initiated and that the FBI was attempting to locate this female, as well as another woman, based on information that they were receiving law enforcement-sensitive information from a police officer.
The indictment alleges that on:
July 8, 2013, Bedoy told the female, a witness in the investigation, to leave Dallas and move somewhere else and to never give her real name if pulled over in a traffic stop by law enforcement.
July 11, 2013, Bedoy instructed the female to not let anyone into her apartment to talk to her, including FBI agents.
July 14, 2013, Bedoy told the female to get rid of her cell phone so that there would not be a connection between them.
July 23, 2013, Bedoy falsely told FBI agents that he never gave sensitive law enforcement information to this female.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, each count of obstruction of an official proceeding carries a maximum statutory penalty of 20 years in federal prison and the obstruction of due administration of justice count carries a maximum statutory penalty of 10 years in federal prison. Each count of conviction also carries a maximum statutory fine of $250,000.
The investigation is being conducted by the FBI and the DPD’s Public Integrity Unit. Assistant U.S. Attorneys Errin Martin and Mindy Sauter are prosecuting.
(Download Factual Basis)
Fairfield Man Pleads Guilty to Possessing Stolen FirearmsRead the Press Release
Chance W. Young, 29, of Fairfield, Illinois, pled guilty today in United States District Court in Benton to an indictment charging him with knowingly possessing stolen firearms, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The indictment, returned by a Federal Grand Jury on September 4th, alleged that Young possessed the firearms between June 30th and July 1st of this year. Young possessed a total of 4 stolen firearms which had been taken during a burglary of a Wayne County residence between those dates. Thus far, only two of the firearms have been recovered.
Sentencing was set for February 28, 2014, at 10:00 a.m. at the United States District Courthouse in Benton. At that time, Young faces up to 10 years in prison, a $250,000 fine, and 3 years of supervised release to follow his incarceration.
Young has been held without bond in the custody of the United States Marshal since his arrest on the federal charges in September. He was again remanded to the Marshal’s custody to await sentencing.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and the Wayne County Sheriff’s Department with the assistance of the Bureau of Alcohol, Tobacco, and Firearms.
The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
Dudley Sentenced to 60 Months in Federal Prison in Connection with Investment Fraud SchemeRead the Press Release
SALT LAKE CITY - John S. Dudley, age 59, of Sandy, who pleaded guilty to wire fraud in February in connection with a fraudulent investment scheme, will serve 60 months in federal prison. U.S. District Judge Robert J. Shelby, who imposed the sentence this week, also ordered Dudley to pay $6.8 million in restitution to victims of the fraud scheme.
“Mr. Dudley's web of lies damaged or destroyed the financial future of more than a hundred victims,” David B. Barlow, U.S. Attorney for Utah, said today. “After serving his five-year term of incarceration, Mr. Dudley will be deported from the United States. These steps should help make sure that Mr. Dudley is not able to harm residents of Utah again.”
Dudley was charged in a 17-count indictment returned in May 2011 in connection with what the indictment alleged was a scheme to induce individuals to invest money with him for use in various investment programs.
The indictment alleged Dudley made a variety of representations to potential investors, including telling them they could expect monthly returns of 5-10 percent; that he had not suffered a trading loss since 1978; that investors’ funds would be used exclusively for investment purposes; that he had personally done very well in his investments and had never made less than 5 percent per month over the last 30 years; that investors’ money was backed by a “senior life settlement policy” that reduced or eliminated investors’ risk of loss; and that investing with him was an exclusive opportunity with only a limited number of investors allowed to invest with him at one time.
As a part of the plea agreement reached with federal prosecutors, Dudley admitted he sent an e-mail to an individual, identified as U.A. in the plea agreement, with the subject line “Re: Castle Creek Bank Details.” He admitted that the e-mail was a part of his attempt to execute the fraud scheme by obtaining money under false representations. Investor U.A. is identified in the indictment as a Utah Department of Commerce’s Division of Securities investigator acting in an undercover capacity in the indictment.
“The successful prosecution of John Dudley was a joint effort between federal and state agencies in addressing an egregious Ponzi scheme. Mr. Dudley’s victims, ranging from young adults to the elderly, funded a lavish lifestyle which included a $1.5 million home, luxury cars and exotic vacations. The FBI and its law enforcement partners are committed to investigating and prosecuting those who fund a luxurious lifestyle at the expense of hard-working, trusting investors. Some victims in these types of cases have their life savings tied up in fraudulent investments and never fully recover. We encourage the public to remain vigilant—check your investments; ask your investment manager hard questions; obtain timely investment updates and reports; and report suspected fraud to the FBI,” Mary Rook, Special Agent in Charge of the FBI in Salt Lake City, said today.
“Mr. Dudley touted various investment programs, including a foreign exchange trading program, mining speculation, and European and domestic stock options. He then diverted the investors’ funds for his own personal benefit,” Paul Camacho, Special Agent in Charge of IRS Criminal Investigation, said today. “Investors, as we often see in our trusting community, became victims to Mr. Dudley’s scheme. Those who operate Ponzi schemes have mastered the ability to earn the trust and confidence of their victims, and these crimes are very personal. We urge the public to be cautious and diligent in deciding where to invest their hard-earned money,” Camacho said.
The case is being prosecuted by the U.S. Attorney’s Office in Salt Lake City and investigated by special agents and investigators of the FBI, IRS Criminal Investigation, and the Utah Department of Commerce.
District Man Sentenced to 29 Years in Prison for 2010 Murder of His Mother and Assault on His Younger Brother-Jury Rejected Defendant’s Insanity Defense-Read the Press Release
WASHINGTON - Christopher Martin, 27, of Washington, D.C., was sentenced today to 29 years in prison on charges stemming from the May 2010 murder of his mother and a subsequent attack on his brother, U.S. Attorney Ronald C. Machen Jr. announced.
Martin was found guilty in June 2013, following a trial in the Superior Court of the District of Columbia, of second-degree murder while armed, assault with a deadly weapon, and simple assault. He was sentenced by the Honorable Ronna L. Beck.
According to the government’s evidence, on May 20, 2010, Martin’s younger brother, Demetrius Martin, escaped from a second-floor window of a home in the 4200 block of Fourth Street SE. He alerted a neighbor that he had been beaten by his brother, Christopher, who had also stabbed their mother. When police finally gained entry to the locked apartment, they found the body of Patricia Ann Martin, 58, in an advanced stage of decomposition spurred on by the heat in the apartment and the fact that the defendant had covered her with multiple blankets.
Upon entering the apartment, it became apparent that Martin had attempted to conceal his crime from discovery by covering his mother’s body with cleanser and dryer sheets and using odor-eating gels, and various perfumes, room deodorizers and bleach to cover her scent. Later that day, when Martin was arrested, police discovered that he had a long, deep gash to the palm of his hand, consistent with his hand having slid down the blade of a knife.
At trial, the defendant proceeded on an insanity defense, calling experts to establish that because of mental illness, he lacked the substantial capacity to conform his conduct to the requirements of the law or lacked a substantial capacity to recognize the wrongfulness of his conduct. The government countered with experts to establish that, although the defendant does have a diagnosed mental illness (schizo-affective disorder), there was no evidence that his criminal conduct resulted from his mental illness. The jury found Martin guilty of all charges and rejected the defense of insanity.
In announcing the sentence, U.S. Attorney Machen commended the efforts of those who investigated the case for the Metropolitan Police Department (MPD). He also extended his appreciation to Victim/Witness Advocate Marcia Rinker; Paralegal Specialists Alesha Matthews Yette, Sandra Lane, Fern Rhedrick and Benjamin Kagan-Guthrie, and Litigation Technology Specialists Jeanie Latimore-Brown, Kimberly Smith, and Paul Howell. He also expressed thanks for the assistance provided by Patricia A. Riley, Special Counsel to the U.S. Attorney, Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation, and Assistant U.S. Attorney Colleen Kennedy. Finally, he praised the work of Assistant U.S. Attorney Vinét Bryant, who indicted the case and prosecuted the case at trial.
13-395Defendant Convicted of Arranging Fraudulent Marriages to Deceive Immigration OfficialsRead the Press Release
ATLANTA - Rex Anyanwu has been found guilty of deceiving Immigration officials by helping aliens enter into fraudulent marriages to U.S. citizens and guilty of obtaining his own citizenship in violation of the law and of conspiracy to commit visa fraud and alien harboring.
"For at least eleven years, the defendant ran a fraudulent marriage factory," said United States Attorney Sally Quillian Yates. “He paid U.S. citizens to marry aliens and then lied to Immigration officials to assist the aliens in their illegal efforts to stay in the United States. Anyanwu's illegal business has been shut down and he will now lose his own citizenship.”
“By undermining the integrity of our immigration system, the defendant caused numerous people to receive immigration benefits to which they were not entitled, including the ability to fraudulently naturalize as U.S. citizens in some cases,” said Special Agent in Charge Brock D. Nicholson, head of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Georgia and the Carolinas. “By enlisting vulnerable homeless and destitute citizens in his scheme, the defendant exposed them to a criminal conspiracy in which they otherwise would likely never have been involved in.”
According to United States Attorney Yates, the charges and other information presented in court: Beginning in February 2001 and continuing until April 2012, Rex Anyanwu conspired with aliens and U.S. citizens to defraud immigration officials to obtain lawful status for the aliens in the United States. At trial, the United States called numerous U.S. citizen witnesses from Huntsville, Ala. who testified how they were recruited and paid $700 by Anyanwu to marry aliens, predominantly from Kenya and Nigeria. Alien witnesses were also called to testify that they had agreed to pay Anyanwu as much as $10,000 to find them a U.S. citizen willing to marry them, but not live with them.
The U.S. citizens and aliens testified that they typically did not meet each other until the very day of the wedding when they were introduced, sometimes on the court house steps, by Anyanwu. The defendant told the “couple” to bring multiple changes of clothes and in one case provided the U.S. citizen with the shirt off of his own back. He would then take pictures of the supposedly happily married couple in different clothing for use in proving to Immigration officials that the couple shared a life.
A true marriage, one where the couple intends to remain together, is one path through which an alien can become a U.S. citizen. Engaging in a marriage solely for immigration purposes is a crime. Evidence at trial showed that Anyanwu continued his scheme by filing fraudulent applications for visas with Citizenship and Immigration Services. Many witnesses testified the defendant would forge the U.S. citizens' names on the paperwork submitted to Immigration. For an additional fee, Anyanwu would create fraudulent documents to show the couple lived together, including false Form 1040 tax returns, false W-2s, fraudulent verification of employment letters, fraudulent leases and bills all intended to demonstrate that the couple was in fact sharing their life and living together.
When Immigration scheduled an interview with the couple, Anyanwu would then send the U.S. citizen spouse in to a Department of Motor Vehicles’ office to obtain a fraudulent Driver's License or Identification card. The U.S. citizens testified they were again paid by the defendant to do this and were told by him what address to put on the identification document. These documents were intended to deceive Immigration into believing the couple actually lived together when, in fact, they never did.
Lastly, Anyanwu would again contact the U.S. citizen spouse when it was time for the “couple” to go in for their Immigration interview. The defendant would meet with the couple and go through the questions, and the answers to questions, typically asked by Immigration to determine if a marriage is valid; simple questions that any legitimately married couple that lived with each other would know. However, since these couples did not live together and share their lives, they needed Anyanwu's coaching to pass the interview. The U.S. citizens testified that they were paid more money by the defendant for attending the interviews. The aliens testified that they paid Anyanwu additional money before the interview.
One Huntsville, Ala., witness testified that she was made to pose as another person and go to Immigration pretending to be the spouse of an alien. When she was arrested for using fraudulent identification, Anyanwu abandoned her in Atlanta, Ga., and later threatened her not to tell anyone about him. Another witness testified that she referred 50 U.S. citizens to Anyanwu to get paid to marry people born in Africa.The charges in this case - visa fraud in violation of 18 U.S.C. 1546(a), conspiracy to engage in visa fraud in violation of 18 U.S.C. 371, alien harboring in violation of 8 U.S.C. 1324(a)(1)(A)(iv) and (v)(II) and (B)(i), conspiracy to do the same in violation of 8 U.S.C. 1324(a)(1)(A)(v)(I), and procuring naturalization for himself in violation of 18 U.S.C. 1425(a) - carry a maximum sentence of up to 5 years in prison for the 371 conspiracy charge and 10 years in prison for the remaining charges, and a fine of up to $250,000 on each count. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but which provide appropriate sentencing ranges for most offenders.
Sentencing for Rex Anyanwu, 51, of Lithia Springs, Ga., is scheduled for sentencing on January 27, 2014, at 2:00 p.m. before United States District Judge Thomas W. Thrash.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. U.S. Citizenship and Immigration’s Fraud Detection National Security Unit and U.S. Department of State, Diplomatic Security Service also assisted in the case.
Assistant United States Attorney Susan Coppedge, Special Assistant United States Attorney Njeri Maldonado, and Intern Annalise Lisson are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Dallas Man Sentenced in Witness Intimidation SchemeRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – A 48-year-old Dallas man has been sentenced to federal prison for the carjacking of a witness in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Dietrick Lewis Johnson pleaded guilty to carjacking and tampering with a witness on Oct. 15, 2013 and was sentenced to 240 months for the carjacking violation and 125 months for the witness tampering charge today by U.S. District Judge Marcia Crone. Johnson was ordered to serve the sentences consecutively for a total of 365 months in federal prison.
According to information presented in court, on Mar. 21, 2011, Johnson kidnapped an ex-girlfriend who had a restraining order against him for stalking her. Johnson forced the woman into her vehicle at gunpoint and drove away with her in the car. Once they arrived at Johnson’s apartment, he forced the woman to call the Dallas county District Attorney’s office and request the stalking charges be dropped. Johnson was indicted by a federal grand jury on Apr. 11, 2013.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the McKinney Police Department and the Dallas Police Department and prosecuted by Assistant U.S. Attorney Tracey Batson.
Convicted Felon Sentenced for Possessing A Firearm with an Obliterated Serial NumberRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that William Thomas Holland III, 31, of Norfolk, Va., was sentenced Thursday by U.S. District Judge Tom Stagg to 24 months in federal prison and three years of supervised release for possessing a firearm after being convicted of a felony and for possessing a firearm with an obliterated serial number. He pleaded guilty July 11, 2013.
According to evidence presented at the guilty plea, on June 23, 2012, members of the 2nd Security Forces Squadron at Barksdale Air Force Base (BAFB) noticed a vehicle parked near a wooded area on BAFB. Upon looking through the window of the vehicle, officers saw a large knife, marijuana and evidence of marijuana use. Holland then walked from the woods and approached the vehicle and stated that he owned the vehicle. The defendant was detained and a warrant was obtained to search the vehicle to retrieve the knife and marijuana. Holland was the civilian spouse of a member of the military who lived on BAFB. A second search warrant was obtained to search Holland’s residence on BAFB. A loaded .357 caliber revolver was found along with other items. The serial number on the firearm was obliterated. Holland admitted to possessing the firearm, knowing that the serial number was obliterated on the firearm and that he had a prior felony conviction prohibiting him from possessing the firearm. He told law enforcement agents that he had bought the ammunition for the firearm from a local sporting goods store.“Barksdale Air Force Base is one of the largest Air Force bases in the world and is home of the 8th Air Force and B-52H bombers,” Finley stated. “The safety of the military and its civilian protection is a priority of our office. Vigilant action by Security Forces and the Air Force Office of Special Investigations (AFOSI) agents resulted in the arrest, conviction and imprisonment of this felon. It is a testament to the great working relationship between the military investigative personnel and the Alcohol, Tobacco, Firearms and Explosives.”
Members of the 2nd Security Forces Squadron, the AFOSI at Barksdale Air Force Base and the Shreveport Office of the ATF investigated the case. Assistant U.S. Attorney Robert W. Gillespie Jr. prosecuted this case as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide program started in 2001 designed to reduce violence by aggressively enforcing existing federal firearms laws.
Conspirators Sentenced in Alien Harboring CaseRead the Press Release
One Defendant Was a Police Officer with the Dallas Independent School District
DALLAS — Favian LaTorre, 57, of Dallas, was sentenced this morning, by Chief U.S. District Judge Sidney A. Fitzwater, to one year and one day in federal prison, and ordered to pay $10,493 in restitution, following his guilty plea in February 2013 to one count of conspiracy to harbor an alien. His co-conspirator, Gloria Palacios, 40, also of Dallas, pleaded guilty to the same offense and was sentenced earlier this month to 24 months in federal prison. LaTorre must surrender to the Bureau of Prisons on January 7, 2014; Palacios has been in custody since her arrest in December 2012. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
LaTorre was a police officer with the Dallas Independent School District (DISD).
According to his filed factual resume, in July 2008, LaTorre began recruiting “F.P.,” who was 15-years-old, to come to the U.S. illegally to provide care for a young child he and co-conspirator Palacios had together. LaTorre had taken his young child to El Salvador for a brief period during 2008, and during that time, F.P. had cared for the child in El Salvador.
LaTorre and Palacios promised F.P.’s parents that they would arrange for F.P. to travel to the U.S. with the help of a “coyote.” LaTorre and Palacios also promised F.P.’s parents that they would pay to smuggle F.P. into the U.S. and that she would be safe.
F.P. traveled from El Salvador to the U.S. with the “coyote” hired by LaTorre and Palacios. When F.P. entered the U.S. with the “coyote,” LaTorre picked F.P. up in Houston and transported F.P. to Palacios’s residence in Dallas.
F.P. lived and worked in Palacios’s residence, caring for LaTorre and Palacios’s young child, from September 2008 until approximately February 2009. During this time, LaTorre concealed, harbored and shielded F.P., an alien from El Salvador, from detection in Palacios’s residence, and elsewhere.
The case was investigated by the FBI and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Errin Martin prosecuted.
Co-Defendant of Bridgeport Mayor Sentenced for Lying to the Federal Bureau of InvestigationRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that on November 15, 2013, Paul R. Kramer, 63, of Vincennes, Indiana, was sentenced to two years of probation, with six months of home confinement and was ordered to pay fines and special assessments of $700.00, after pleading guilty to two counts of making false statements to the Federal Bureau of Investigation (FBI).
On November 6, 2012 Kramer, was indicted along with Max R. Schauf, the former Mayor of Bridgeport, Illinois. Schauf was charged with three counts of mail fraud and one count of obstruction, Kramer was charged with the two counts of making false statements. At his plea, on March 20, 2013, Kramer admitted that he had lied to FBI agents on two separate occasions when federal authorities were conducting a financial fraud investigation regarding the former mayor.
Kramer’s co-defendant, Max R. Schauf, was sentenced on October 17, 2013, to eighteen months in prison and ordered to pay fines and restitution totaling $59,000.
The case was investigated by agents of the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Ranley R. Killian and William E. Coonan.