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13 November 2013
Former Albuquerque Police Department Officer Arrested on Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Nelson Begay, 32, of Albuquerque, N.M., was arrested this afternoon on a criminal complaint charging him with receiving and possessing visual depictions of minors engaged in sexually explicit conduct. Shortly before his arrest, Begay resigned from his position as an officer of the Albuquerque Police Department. Begay is scheduled to make his initial appearance in federal court tomorrow morning.
The arrest was announced by Acting U.S. Attorney Steven C. Yarbrough, Special Agent in Charge Dennis A. Ulrich, II, of Homeland Security Investigations (HSI) in El Paso, Texas, and New Mexico Attorney General Gary K. King.
According to the criminal complaint, in Sept. 2013, a special agent with the New Mexico Attorney General’s Office (NMAGO) identified an IP address that was being used share files containing child pornography while conducting an investigation targeting those who share child pornography on peer-to-peer file sharing networks. Subsequent investigation revealed that the IP address was subscribed to Begay at a residential address in northeast Albuquerque.
The criminal complaint states that on Nov. 7, 2013, HSI and other agencies participating in the New Mexico Internet Crimes Against Children (ICAC) Task Force executed a federal search warrant at Begay’s residence and seized computers and computer-related media. A preliminary forensic examination of a laptop computer taken from a bedroom allegedly used by Begay recovered more than 30 images consistent with child pornography.
If convicted of the charges in the criminal complaint, Begay faces a federal prison term of not less than five years and not more than 20 years. If convicted, Begay also would be required to register as a sex offender. Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.HSI Special Agent in Charge Dennis A. Ulrich, II, expressed his appreciation to Chief Allen Banks of the Albuquerque Police Department for the Department’s cooperation in the investigation of this case.
This case was investigated by the Albuquerque office of HSI and the New Mexico Attorney General’s Office, and is being prosecuted by Assistant U.S. Attorney Jacob A. Wishard as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The Operation also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
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Indictment
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Florida Man, George Potter, Pleads Guilty to Distribution of Child PornographyRead the Press Release
GEORGE POTTER, 27, of Gulf Breeze, Florida, pled guilty today before U.S. District Judge Martin L.C. Feldman to crimes involving the sexual exploitation of children, announced U.S. Attorney Kenneth Allen Polite, Jr.
According to court documents, following an investigation by the Louisiana State Police and the U. S. Department of Homeland Security, Homeland Security Investigations (HSI), POTTER was indicted by a federal grand jury on June 20, 2013 for Distribution of Child Pornography.
POTTER will be sentenced on February 26, 2014 and faces a mandatory minimum penalty of five (5) years and a maximum penalty of twenty (20) years, followed by up to a lifetime term of supervised release, and a $250,000.00 fine.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This case was investigated by special agents from the U. S. Department of Homeland Security, Homeland Security Investigations and the Louisiana State Police. The prosecution of this case is being handled by Strike Force Chief and Project Safe Childhood Coordinator, Assistant U.S. Attorney Brian M. Klebba.
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Disbarred Canadian Attorney Sentenced to Five Years for Unclaimed Funds Fraud Scheme He Ran in CincinnatiRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – L. Gino Boggia, 63, of Quebec, Canada was sentenced to 60 months in prison for engaging in a scheme to defraud a local bank in connection with dormant bank account funds.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation Cincinnati Field Office (FBI) announced the sentence handed down today by Chief U.S. District Judge Susan Dlott.
According to court documents, Boggia is a disbarred Canadian attorney who engaged in two related fraud schemes in the Southern District of Ohio to attempt to fraudulently acquire funds of dormant, unclaimed bank accounts that have been escheated (turned over) to the state of Ohio by financial institutions.
In the first scheme in May 2003, Boggiafalsely claimed to represent the account holder who was hospital-bound and in urgent need of surgery with life-threatening injuries. Further investigation found that the client Boggia claimed to represent had died 20 years earlier. In the second scheme Boggiafalsely claimed to represent a creditor of the account holder who was seeking to obtain a judgment against the account holder.
Like the first scheme, the attempted fraud was discovered before any funds were paid out. The amount of dormant account funds Boggia fraudulently attempted to obtain in this second scheme, which included the amount the dormant funds plus claimed accrued interest over several years, totaled $1,310, 670.06.
Boggia was indicted in Cincinnati in 2007. He was extradited from Canada earlier this year following completion of a sentence there on similar charges.
Boggia pleaded guilty in June 2013 to one count of bank fraud. Boggia was also sentenced to 12 months in prison for violating his supervised release imposed after his prior federal conviction on similar charges in California. The sentences will run concurrently.
Boggia was also ordered to pay restitution of $247,159.25.
U.S. Attorney Stewart commended the investigation by the FBI and Senior Litigation Counsel Anne Porter, who represented the United States in the case.
###Coeur D’Alene Man Sentenced for Unlawfully Possessing A FirearmRead the Press Release
COEUR D’ALENE – Kalum McPhedran, 29, of Coeur d’Alene, Idaho, was sentenced today in United States District Court to eight months in prison for unlawfully possessing a firearm, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered McPhedran to serve three years of supervised release and to forfeit the firearm he unlawfully possessed. He pleaded guilty to the charge on August 20, 2013.
According to the plea agreement, McPhedran admitted that on January 15, 2013, he unlawfully possessed a Remington 12 gauge shotgun, knowing that he was prohibited from possessing firearms due to a prior felony conviction in 2010 for possession of a controlled substance.
The case was investigated by the North Idaho Violent Crimes Task Force (NIVCTF). NIVCTF members include the Federal Bureau of Investigation, the Idaho State Police, Kootenai County Sheriff's Office, Shoshone County Sheriff's Office, Bonner County Sheriff's Office, Coeur d'Alene Police Department, Post Falls Police Department, and Coeur d'Alene Tribal Police. The NIVCTF investigates a myriad of violent crimes, including armed robbery, kidnapping, felonious assault and drug trafficking.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
City of Shreveport Agrees to $342 Million Sewer System Upgrade to Comply with Clean Water ActRead the Press Release
The city of Shreveport, La., has agreed to make significant upgrades to reduce overflows from its sanitary sewer system and pay a $650,000 civil penalty to resolve Clean Water Act (CWA) violations stemming from illegal discharges of raw sewage, the Department of Justice and the U.S. Environmental Protection Agency (EPA) announced today. The state of Louisiana, a co-plaintiff in this case, will receive half of the civil penalty.
When wastewater systems overflow, they can release raw sewage and other pollutants, threatening water quality and potentially contributing to disease outbreaks. To come into compliance with the CWA, the city estimates it will spend approximately $342 million over the next 12 years in order to improve the sewer system’s condition. While the city upgrades the system, it will also implement a program for capacity management, operation, and maintenance to help reduce sanitary sewer overflows.
“The key provisions of this settlement will eliminate overflows of raw sewage in neighborhoods that have for too long been subject to these contaminated overflows,” said Acting Assistant Attorney General Robert G. Dreher. “These provisions are critical to protecting the public health of all citizens of Shreveport.”
“The United States Attorney’s Office is committed to assisting our federal partners and the state in protecting the environment and public health,” said U.S. Attorney Stephanie Finley. “Sewer overflows are a public health hazard. The citizens of Shreveport are the beneficiaries of this settlement, which will eliminate these overflows.”
“Keeping these discharges out of our waterways is a priority for the EPA and the state of Louisiana,” said EPA Regional Administrator Ron Curry. “The residents of Shreveport deserve clean water and reliable infrastructure, and this agreement will help achieve that.”
The Justice Department, on behalf of the EPA, filed a complaint against the city alleging that, since 2005, the city has had untreated sewage overflows from its sanitary sewer system in violation of the CWA and state-issued discharge permits. The cause of these illegal overflows stems largely from the city’s failure to properly operate and maintain the condition of the sewer system, resulting in discharges of untreated sewage into local waterways and the community.
Shreveport’s wastewater collection and treatment system, including the Lucas and North Regional waste water treatment plants, serves approximately 220,000 people in an environmental justice area.
Keeping raw sewage out of the community and the waters of the United States is a national priority for EPA, as sewage overflows can present a significant threat to human health and the environment. These discharges can degrade water quality, spread bacteria and viruses, and cause diseases ranging from gastroenteritis to life-threatening conditions such as cholera and dysentery.
The settlement, which will be lodged in the U.S. District Court for the Western District of Louisiana, is subject to a 30-day public comment period before the court can give final approval and enter the consent decree as final judgment, at which time it will become effective. The proposed consent decree can be viewed online at www.justice.gov/enrd/Consent_Decrees.html.
More information about the settlement: www2.epa.gov/enforcement/city-shreveport-settlement
More information about EPA’s national enforcement initiative: www.epa.gov/compliance/data/planning/initiatives/2011sewagestormwater.html
More information about Integrated Municipal Stormwater and Wastewater Plans: cfpub.epa.gov/npdes/integratedplans.cfm
City of Sweetwater Mayor and Lobbyist Plead Guilty in Corruption InvestigationRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigations (FBI), Miami Field Office, announce that Manuel L. Maroño, 41, the former Mayor of the City of Sweetwater and Jorge L. Forte, 41, a lobbyist, both of Miami, pled guilty to one count of conspiracy to commit honest services wire fraud, for their participation in a scheme to personally benefit through the use of Maroño’s position as Mayor of Sweetwater.
Sentencing has been scheduled for January 23, 2014 at 10:00 a.m. before U.S. District Judge William J. Zloch. At sentencing, Maroño and Forte face a maximum statutory sentence of five years in prison.
U.S. Attorney Wifredo A. Ferrer stated, “Today, the former Mayor of Sweetwater admitted under oath in court that he sold the power granted to him by the people of Sweetwater. It is vitally important that the people of South Florida have confidence in their elected officials and know that any abuse of their trust will not be tolerated. I hope that today’s timely resolution and guilty plea will make others think twice before lining their pockets with the greed of corruption.”
“Corrupt officials – either elected or appointed - are on notice; if they breach the public’s trust through stealing or accepting bribes in the course of their official duties, they will be vigorously investigated,” said Michael B. Steinbach, Special Agent in Charge, FBI Miami. “Public corruption remains a top priority for the FBI. We encourage anyone who may have information about corruption to come forward and report it. This information is vital to our work.”
On October 17, 2013, Maroño and Forte were charged by way of information with one count of conspiracy to commit honest services wire fraud, in violation of 18 U.S.C. ' 371.
According to the facts admitted at today’s guilty plea and publically available information, Maroño was the elected Mayor of the City of Sweetwater. In his elected position, Maroño served as the chief executive officer of the City of Sweetwater and was responsible for the management and administration of the city government. Forte, a lifelong friend of Maroño, was a lobbyist and business partner of Maroño.
Maroño and Forte admitted today that beginning in late November 2011, they agreed to aid a company known as Sunshine Universal to obtain federal grant funds for the stated reason of preparing an economic development study for Sweetwater, all in exchange for cash kickbacks to Maroño and Forte. Unknown to Maroño and Forte, Sunshine Universal was an undercover FBI entity. To aid the scheme, Maroño caused the passage of a resolution in Sweetwater that authorized the undercover agents’ company to apply for federal grant moneys using the authority of the City of Sweetwater. After the resolution was passed, Maroño and Forte personally met and negotiated with the undercover agents and accepted a series of cash payments in exchange for Maroño’s official actions in support of the grant scheme. During these negotiations and meetings, Forte acted as the front man for Maroño.
To further the scheme and avoid detection, Maroño also participated in what he believed to be audit telephone calls from the federal government to confirm the grantees’ performance on the grant. During two separate audit calls, both of which were recorded, Maroño lied to and misled the auditor, who was in fact an undercover FBI agent, about the actual use of the grant money and the grantee’s performance. For their corrupt actions, Maroño and Forte received $45,000. Both defendants have agreed to forfeit all of the monies they received as part of their plea agreements.
Mr. Ferrer commends the investigative efforts of the FBI Miami Area Corruption Task Force. This case is being prosecuted Assistant U.S. Attorneys Jared E. Dwyer and Robert K. Senior.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Cicero Gear Manufacturing Firm Pleads Guilty to Violating Federal Clean Water Act and Agrees to Pay $1.5 Million FineRead the Press Release
CHICAGO — A suburban Cicero gear manufacturing company pleaded guilty today to illegally discharging industrial wastewater into the public sewer system and agreed to pay a $1.5 million fine. The defendant company, BRAD FOOTE GEAR WORKS, INC., began cooperating and taking remedial water treatment measures after federal environmental agents executed a search warrant in February 2011.
Brad Foote Gear Works pleaded guilty to one count of violating the federal Clean Water Act on at least 300 separate days between April 2007 and February 2011. The company, which manufactures precision gear parts for wind turbines, among other things, admitted illegally discharging spent acid wastewater and spent alkaline wastewater, industrial rinse waters, acidic solutions, oil, grease, and metal-bearing wastewater into the Metropolitan Water Reclamation District of Greater Chicago sewer system without a permit. The wastewater was received at the MWRDGC’s Stickney Water Reclamation Plant in southwest Chicago, where it was treated and discharged into the Chicago Sanitary and Ship Canal.
The company, located at 1309 South Cicero Ave., in Cicero, entered the guilty plea at its arraignment in U.S. District Court after being charged in September. U.S. District Judge Robert M. Dow, Jr., set sentencing for Feb. 19, 2014.
Under the terms of a plea agreement, which remains subject to court approval, Brad Foote will pay a $1.5 million fine in three $500,000 installments over three years. The fine is based on a mandatory minimum fine of $5,000 per day of violation, for a total of $1.5 million. The company faces a statutory maximum penalty of five years’ probation and a maximum fine of $500,000, twice the gross gain or loss, or $50,000 per violation, whichever is greater. The Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Randall Ashe, Special Agent-in-Charge of the Environmental Protection Agency’s Office of Criminal Enforcement in Chicago.
“To protect public health and our nation’s waterways, it is critical that industries treat their wastes safely and legally before sending them into the public sewers,” Mr. Ashe said. “For years, the defendant knowingly broke the law by allowing untreated industrial waste ― including corrosive liquids ― to be discharged into the public sewer system without a permit. Today’s guilty plea shows that those who engage in such conduct will be prosecuted.”
Following the search of its premises in February 2011, the company began cooperating and implementing protocols to ensure the proper discharge and disposal of industrial wastewater from its facility. As a result, the government did not seek a court-imposed corporate compliance agreement.
According to the plea agreement, Brad Foote’s manufacturing operations included a nital etch line, in which finished parts were dipped into a series of tanks containing caustic cleaners, rinse waters, and nitric acid and hydrochloric acid solutions. The etching acids and caustic cleaners of the nital etch line generally exhibited impermissibly low acidic solutions and impermissibly high alkaline solutions and, over time, those solutions and rinse waters became “spent,” meaning they lost their effectiveness and needed to be replaced.
Beginning in 2004, the company’s then chief executive officer and the manager of the nital etch line created a piping system that allowed untreated wastewater to be discharged into the public sewer system. The discharged wastewater from acid and alkaline tanks generally exhibited a pH of less than 2.0 or greater than 10.5. A second source of illegal discharge involved the company’s “Superfinish” process that used chemicals and abrasive sand-like material to smooth and polish gear parts. As a significant industrial user, Brad Foote was required to have a valid discharge authorization permit to discharge these wastewaters into the sewer system. Brad Foote knew that it did not have, and never applied for, a discharge authorization permit.
The government is being represented by Assistant U.S. Attorney Peter Flanagan. The case was investigated by the EPA’s Criminal Investigation Division.
Plea Agreement
Bryn Mawr Realtor Pleads Guilty to Tax ChargesRead the Press Release
Randall Stein, 55, of Bryn Mawr, PA pleaded guilty today to three counts of filing a false tax return for the years 2006, 2007, and 2008. Stein is the co-founder and former President of WP Realty, Inc. Stein founded WP Realty (formerly known as Weingarten Properties) with Bryan Weingarten in 1995. WP Realty is a Bryn Mawr, PA based commercial real estate company that specializes in the acquisition, development, leasing and management of grocery store-anchored shopping centers. Weingarten, 53, of Ardmore, PA, is the co-founder and CEO of WP Realty.
According to the informations filed separately against Stein and Weingarten, the defendants established the partnership entities of Stein Realty Capital, LP and Weingarten Capital, LP, as repositories for fee income earned through their employment with WP Realty. These partnerships had no business relationship to the fees earned, no operating expenses, and no employees. Both men used these partnerships as a means to deduct personal expenses, thereby reducing their taxable income on their personal income tax returns.
For the years 2006 through 2008, Weingarten filed tax returns with the Internal Revenue Service claiming approximately $5.5 million in false business expenses for his company, Weingarten Captial, LP, in an attempt to reduce his federal income tax liability. Weingarten knew that these were in fact personal expenditures. Weingarten pleaded guilty on April 10, 2013 to three counts of filing false tax returns for the tax years 2006, 2007, and 2008.
For the years 2006 through 2008, Stein filed tax returns with the Internal Revenue Service claiming approximately $334,499 in false business expenses for his company, Stein Realty Capital, LP, in an attempt to reduce his federal income tax liability. Stein knew that these expenses were personal in nature.
Stein will be sentenced on February 18, 2014, before the Honorable Legrome D. Davis, Jr., United States District Court for the Eastern District of Pennsylvania. He faces a maximum sentence of nine years imprisonment. A sentencing date has not yet been set for Weingarten. He also faces a maximum sentence of nine years imprisonment.
This case was investigated by IRS Criminal Investigations. It is being prosecuted by Assistant United States Attorney A. Nicole Phillips and Special Assistant United States Attorney Tiwana Fleming of United States Department of Justice, Tax Division.Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Attorney General Eric Holder Announces First Public Hearing of Task Force to Examine Impact of Violence on American Indian and Alaska Native ChildrenRead the Press Release
Attorney General Eric Holder today announced the first public hearing of a new task force to examine the impact of exposure to violence on American Indian and Alaska Native children. Joining President Obama and other officials at the Department of the Interior for the White House Tribal Nations Conference, Attorney General Holder shared the announcement with leaders from the 566 federally recognized tribes and emphasized the Justice Department’s long-standing collaboration with leaders in American Indian and Alaska Native communities to improve public safety.
“We must not accept the shameful reality that American Indians and Alaska Natives are disproportionately likely to be exposed to crime and violence – and that many who suffer exposure are children,” said Attorney General Holder. “By bringing together federal officials, tribal leaders, and local partners to focus on the unique challenges that Indian children face, this task force will enhance public safety. And these leaders will strengthen our communities by ensuring that every child can have the opportunity to learn, to grow, and to thrive – free from violence and fear.”
This task force is anchored by both a federal working group that includes U.S. Attorneys and officials from the Departments of the Interior and Justice and an advisory committee of experts appointed to examine the scope and impact of violence facing American Indian and Alaska Native children and make policy recommendations to Attorney General Holder on ways to address it.
The advisory committee will convene four public hearings across the country beginning in Bismarck, N.D., Dec. 9, focusing on violence in children’s homes, schools and communities in Indian country. Associate Attorney General Tony West will join the task force at the first hearing in Bismarck. The other hearings will be held in Phoenix, Ariz., Fort Lauderdale, Fla. and Anchorage, Alaska early in 2014.
The advisory committee will be co-chaired by former U.S. Senator Byron Dorgan and Iroquois composer and singer Joanne Shenandoah. They will be aided by tribal members and national experts on American Indian studies, child health and trauma, and child welfare and law. There are currently 12 advisory committee members:• Dolores Subia Bigfoot, Caddo Nation of Oklahoma, Director, Indian Child Trauma Center, University of Oklahoma
• Rear Admiral Eric Broderick, former Deputy Administrator, Substance Abuse and Mental Health Services Administration
• Eddie Brown, Pasqua Yaqui Tribe and Tohono O’odham Nation, Executive Director of the American Indian Policy Institute and Professor of American Indian Studies, Arizona State University
• Valerie Davidson, Orutsararmiut Native Council Member and Senior Director, Legal and Intergovernmental Affairs, Alaska Native Tribal Health Consortium
• The Hon. Byron Dorgan, Chairman, Board of Advisors, Center for Native American Youth; former U.S. Senator and chair of the Senate Committee on Indian Affairs
• Anita Fineday, White Earth Band of Ojibwe, Director, Indian Child Welfare, Casey Family Programs
• Matthew Fletcher, Grand Traverse Band of Ottawa and Chippewa Indians, Director, Indigenous Law and Policy Center, Michigan State University
• Alicia Lieberman, Director, Child Trauma Research Program, University of California at San Francisco
• Joanne Shenandoah, Iroquois, composer and musical artist
• Chaske Spencer, Lakota, actor
• Ron Whitener, Squaxin Island Tribe, Executive Director, Native American Law Center, University of Washington School of Law
• Marilyn J. Bruguier Zimmerman, Assiniboine-Sioux/Fort Peck Reservation, Director, National Native Children’s Trauma Center, University of Montana
This new task force is a key part of Attorney General Holder’s Defending Childhood initiative to prevent and reduce children’s trauma from experiencing violence as victims or witnesses. The task force was created in response to a recommendation in the Attorney General’s National Task Force on Children Exposed to Violence December 2012 final report. The report noted that American Indian and Alaska Native children have an exceptional degree of unmet needs for services and support to prevent and respond to the extreme levels of violence they experience.
For more information about the Defending Childhood initiative, please visit www.justice.gov/defendingchildhood.
To submit oral or written testimony to the committee, please contact the Tribal Law and Policy Institute, the Office of Juvenile Justice and Delinquency Prevention’s technical assistance provider to the committee, at [email protected]; or 323-650-5467.Atlantic, Iowa, Resident Sentenced to 46 Months for Possession of A Stolen FirearmRead the Press Release
COUNCIL BLUFFS, IA- On November 12, 2013, Gregory Allen Jennings, a 42 year-old resident of Atlantic, Iowa, was sentenced by United States District Court Judge John Jarvey to 46 months in prison for possessing a stolen firearm, announced United States Attorney Nicholas A. Klinefeldt. Judge Jarvey also ordered Jennings to serve three years of supervised release when he completes his imprisonment.
On November 12, 2013, Jennings pled guilty to knowingly possessing a stolen firearm. The charge was the result of an investigation into firearms which were stolen from a vehicle in Atlantic, Iowa, in January of 2013. The investigation revealed that Jennings had received the firearm shortly after it was stolen, and was attempting to sell the firearm when it was located by law enforcement.
The investigation was conducted by the Atlantic, Iowa, Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the case was prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.
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Allen Locke Pleads Not Guilty to Failing to Register as Sex OffenderRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Allen Locke, 64, a New Hampshire native who moved to Vermont in early 2013, pleaded not guilty today in United States District Court in Burlington to a charge that he travelled in interstate commerce without updating his registration under the Sex Offender Registration and Notification Act. U.S. Magistrate Judge John M. Conroy released Locke on conditions, which includes house arrest, pending trial. Locke’s trial has not been scheduled.
According to court records, Locke was convicted in New Hampshire in 1984 of aggravated sexual assault. That conviction requires him to register as a sex offender with officials of any state where he resides or to which he moves. In early 2013, after being released from prison in Massachusetts, Locke moved to Vermont. However, he did not register as a sex offender with Vermont officials until late October 2013. Under federal law, when a sex offender moves from one state to another, he has three days to update his registration. On November 7, 2013, a federal grand jury in Burlington returned a one-count indictment charging Locke with failing to timely register as a sex offender after moving to Vermont.
The United States Attorney emphasizes that the charge against Locke is merely an accusation and that the defendant is presumed innocent unless and until he is proven guilty.
If convicted, Locke faces up to ten years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
This case was investigated by the U.S. Marshals Service and the Office of Inspector General of the Veterans Administration.
Locke is represented by Federal Public Defender Michael Desautels. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Alleged Leader of Mexican Narcotics <br /> Trafficking Organization Extradited to U.S.Read the Press Release
The alleged leader of a Mexican narcotics trafficking organization responsible for trafficking multi-ton quantities of cocaine, Juan Juarez Orosco, aka “El Abuelo,” was extradited to the United States from Panama on Nov. 8, 2013, and arraigned on Nov. 10, 2013, before U.S. Magistrate Judge Lois Bloom in the Eastern District of New York.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Special Agent in Charge James T. Hayes Jr. of U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI) and Special Agent in Charge Brian R. Crowell of the Drug Enforcement Administration’s (DEA) New York Division made the announcement.
According to court documents, from the early 1990s until his arrest by Panamanian law enforcement in March 2012, Juarez allegedly led a large-scale maritime and land transportation operation that was responsible for trafficking multi-ton quantities of cocaine from Central America via ship to the coast of Mexico. Once the cocaine arrived in Mexico, Juarez and his co-conspirators would transport the cocaine from the coast to Mexico City, where it was then destined for the United States. Throughout the 2000s, Juarez allegedly worked with major narcotics traffickers based in Colombia and Mexico, including the Norte Valle Cartel, the Beltran-Leyva Cartel and the Sinaloa Cartel. Through the mid-2000s, Juarez’s organization allegedly transported at least 35,000 kilograms of cocaine for the Beltran-Leyva organization alone. At the height of its activity, Juarez’s organization allegedly transported approximately eight tons a month in conjunction with the Sinaloa Cartel.
“As alleged in the indictment, Juarez’s trafficking organization was responsible for the importation of massive quantities of cocaine, across oceans and continents, into the United States,” said Acting Assistant Attorney General Raman. “Juarez’s arrest and extradition are a testament to the tenacity of law enforcement officers across the world, and show what we can accomplish when we work together with our partners around the globe to capture major drug traffickers and bring them to justice.”
“There is no escape from the reach of the law, no matter where drug kingpins operate their poisonous trade,” said U.S. Attorney Lynch. “Juan Juarez Orosco may have operated an international drug trafficking network that stretched across the Western Hemisphere, but today he faces justice in a courtroom in Brooklyn. Thanks to our law enforcement partners in Panama, today’s extradition also shows that there is no safe haven for drug traffickers on the run.”
Juarez was indicted on March 15, 2012, and charged with international narcotics importation and distribution conspiracy. If convicted, the defendant faces a mandatory minimum sentence of 10 years and a maximum penalty of life in prison.The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
This case is being investigated by ICE HSI and DEA. This case is being prosecuted by Trial Attorney Adrian Rosales of the Criminal Division’s Narcotic and Dangerous Drugs Section and Assistant U.S. Attorneys Gina M. Parlovecchio and Tiana Demas of the Eastern District of New York, with the assistance of the Criminal Division’s Office of International Affairs.
Alabama Man Pleads Guilty to Criminal Copyright InfringementRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that Johnson Augustus Powell, 53, of Huntsville, Ala., pleaded guilty Tuesday before U.S. District Judge Richard T. Haik to copyright infringement.
According to evidence presented at the guilty plea, Louisiana State Police stopped Powell’s vehicle August 10, 2011 on Interstate 10. During a search of the vehicle, State Police found 1,463 counterfeit DVD movies and 1,225 counterfeit music CDs. Powell surrendered the illegal materials and admitted that he was selling them for profit.On November 30, 2011, a Calcasieu Parish Anti-Drug Team officer stopped Powell’s vehicle on Interstate 10 for a routine traffic violation. After a vehicle search, officers found 1,085 counterfeit DVD movies and 836 counterfeit music CDs. Powell again admitted to making the illegal materials for profit. In January 2012, Powell turned over computer programs and equipment he used to counterfeit the media. On April 4, 2012, a Calcasieu Parish Anti-Drug Team officer again stopped Powell on Interstate 10, and after a search of the vehicle, found 511 counterfeit DVD movies and 423 counterfeit music CDs.
Powell faces up to five years in prison, a $250,000 fine, and three years of supervised release for one count of criminal copyright infringement. A sentencing date was not set.
The Louisiana State Police, Calcasieu Parish Anti-Drug Team and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Brett L. Grayson is prosecuting the case.
12 November 2013
Weight-Loss Infomercial Pitch-Man Kevin Trudeau Convicted of Criminal ContemptRead the Press Release
CHICAGO ― Author and television pitch-man KEVIN TRUDEAU was convicted today of criminal contempt for violating a 2004 federal court order that prohibited him from making deceptive television infomercials that misrepresented the contents of his weight loss cure book. A federal jury deliberated approximately an hour after a week-long trial in U.S. District Court.
Trudeau, 50, of Oak Brook, had his bond revoked and he was ordered taken into custody by U.S. District Judge Ronald Guzman, who set a schedule for post-trial motions but no sentencing date.
Criminal contempt has no statutory maximum sentence. The Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The guilty verdict was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Tony Gómez, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
According to the evidence at trial, Trudeau appeared in three television infomercials between December 2006 and November 2007 in which he willfully misrepresented the contents of his book The Weight Loss Cure “They” Don’t Want You to Know About. In April 2010, U.S. District Judge Robert Gettleman issued an order to show cause why Trudeau should not be held in criminal contempt of a Sept. 2, 2004, settlement in which Trudeau agreed not to directly or indirectly produce and broadcast any deceptive infomercials that misrepresented the contents of any book, including the weight loss cure book. Federal Trade Commission v. Trudeau, No. 03 C 3904.
In closing arguments today, prosecutors listed a litany of blatant lies and misrepresentations made by Trudeau in his infomercials. These included his claims that his book was not a “diet,” when in fact it required at least three weeks of eating 500 calories or less a day, and that a hormone found only in pregnant women that was required to be injected daily could be obtained “anywhere,” when in fact it could be obtained in the United States only through a doctor’s prescription. He also claimed that after finishing the diet, consumers could eat anything they wanted without regaining weight, when in fact the diet required severe food deprivation that lasts for life.
The government was represented by Assistant U.S. Attorneys April Perry and Marc Krickbaum.
Two Sentenced to Federal CustodyIn Separate Firearms CasesRead the Press Release
TOPEKA, KAN. Two Topeka men have been sentenced to federal custody in unrelated federal firearms cases, U.S. Attorney Barry Grissom said today.
Tyrone J. Lewis, Sr., 33, was sentenced to 30 months. Matthew L. Hoag, 22, Topeka, was sentenced to six months in a halfway house.
Lewis pleaded guilty on one count of unlawful possession of ammunition after a felony conviction. In his plea, he admitted that on Jan. 19, 2013, he called the Topeka Police Department to report that people were chasing him in a vehicle. When officers arrived in the 1600 block of SW Topeka they found Lewis in the intersection jumping back and forth as if he were avoiding multiple football tackles. Believing him to be under the influence of a narcotic, they placed him under arrest. They found four .45 caliber bullets in a plastic bag in his possession. At the time, he was prohibited from possessing ammunition because of prior felony convictions in Shawnee County District Court for aggravated robbery and attempted criminal possession of a firearm.
Hoag pleaded guilty to one count of unlawful possession of a firearm after a felony conviction. In his plea, he admitted that officers of the Topeka Police Department encountered him on March 21, 2013, after being called to a report of shots fired. Hoag was riding in the back seat of a car officers stopped in the 1100 block of SW Lincoln. They found him in possession of a .380 caliber handgun. At the time, Hoag was prohibited from possessing a firearm because he had been convicted in June 2010 in Jackson County District Court on a charge of possession of methamphetamine.
Grissom commended the Topeka Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Richard Hathaway for their work on the cases.
Two Individuals Sentenced in Plot to Conceal and Dispose of Assets in Connection with Rothstein CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Kimberly Wendell Rothstein, 38, and Stacie Weisman, 49, were sentenced today before U.S. District Judge Robin S. Rosenbaum. Kimberly Rothstein was sentenced to 18 months in prison, to be followed by two years of supervised release. Stacie Weisman was sentenced to three months in prison, to be followed by nine months of home detention and three years of supervised release. Forfeiture of the jewelry valued in excess of one million dollars and $515,000 was also ordered as to both defendants. Both defendants previously pled guilty to conspiracy to commit money laundering and to obstruct justice, in violation of Title 18, United States Code, Section 371.
Kimberly Rothstein and Stacie Weisman were charged, along with Scott F. Saidel, 45, in September 2012 in connection with certain crimes committed in furtherance of a plot to conceal and dispose of assets which were subject to forfeiture in connection with a Ponzi scheme orchestrated by Scott W. Rothstein. At the same time, in September 2012, Eddy Marin, 50, and Patrick Daoud, 54, were also charged in a separate, but related, matter with obstruction of justice and perjury, in violation of Title 18, United States Code, Sections 1512(k) and 1621.
According to the documents filed with the court, former Ft. Lauderdale attorney Scott W. Rothstein, who was the Chief Executive Officer and Chairman of the law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA), used the funds obtained from the operation of a Ponzi scheme to purchase tens of millions of dollars of real estate, vehicles, vessels, business interests, luxury watches, jewelry and sports memorabilia for himself, his wife, Kimberly Rothstein, and others. As part of his plea agreement, Scott W. Rothstein agreed to forfeit to the government all assets acquired with funds derived from the aforesaid Ponzi scheme. On November 9, 2009, agents of the IRS-CI went to the Rothstein residence, where Kimberly Rothstein assisted the agents in retrieving what was believed to be all of the available cash, jewelry and luxury watches which had been purchased by Scott W. Rothstein with proceeds derived from the Ponzi scheme. However, according to court documents, before, during and after the aforesaid seizure by federal agents on November 9, 2009, Kimberly Rothstein, Stacie Weisman, and Scott F. Saidel knowingly took action to conceal certain items of jewelry, valued in excess of one million dollars, for the purpose of preventing the government from exercising its authority to take such property into its lawful custody and control. Thereafter, Kimberly Rothstein and Stacie Weisman sold and attempted to sell a portion of this jewelry to and through various persons, including Eddy Marin and Patrick Daoud.
The documents further allege that, in connection with civil proceedings instituted by the Trustee in bankruptcy for RRA, all of the defendants took steps to obstruct justice by concealing the true location of certain items of jewelry in order to prevent its availability for use in the bankruptcy proceedings. It is further alleged that Marin and Daoud committed perjury during depositions in connection with the bankruptcy proceedings, and that Kimberly Rothstein, Stacie Weisman and Scott F. Saidel sought to have Scott W. Rothstein testify falsely in connection with those proceedings.
Defendant Scott F. Saidel pled guilty on January 30, 2013. He was sentenced on October 7, 2013 to 36 months in prison, to be followed by two years of supervised release. Defendants Eddy Marin and Patrick Daoud pled guilty on October 18, 2013. Sentencing for both defendants is scheduled for February 3, 2014.
Mr. Ferrer commended the investigative efforts of IRS-CI and the FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence LaVecchio, Jeffrey Kaplan, Paul Schwartz and Evelyn Sheehan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Get Lengthy Federal Prison Sentences for Distributing Child PornographyRead the Press Release
FORT WORTH, Texas— Latona E. Long, 27, of Greenville, Texas, and Michael M. Bodie, 41, of North Richland Hills, Texas, were sentenced today, by U.S. District Judge Terry R. Means, to 120 months, and 108 months, respectively, following their guilty pleas in June 2013 to distribution of child pornography. Bodie was arrested in February 2013, and Long was arrested the following month, on related charges outlined in criminal complaints; they have been in custody since that time. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, in February 2013, FBI agents executed a search warrant at Bodie’s home, regarding his use of a Yahoo email account that was being used to send and receive images of child pornography. Bodie admitted that he did use that account to send and receive child pornography and that he had corresponded via Yahoo email, with a person, L.L., now known to be Long.
In February 2013, FBI agents and task force officers met with Long at her home regarding her use of a Yahoo email account that was used to send and receive child pornography. Long also said that she had corresponded via Yahoo Instant Messenger with a person she knew as M.B., now known as Bodie, and that during their communications, she sent Bodie an image of child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the FBI. Assistant U.S. Attorney Aisha Saleem prosecuted.
Two Conspirators Sentenced in Baltimore Reservoir Hill Neighborhood Mortgage Fraud SchemeRead the Press Release
Approximately $1 Million Loss
Baltimore, Maryland - U.S. District Judge George L. Russell III sentenced Kimberly Eileen McMillian, a/k/a Kimberly Simmons and Kimberly Simmons McMillian, age 46, of Baltimore, today to two years in prison, followed by five years of supervised release, for wire fraud in connection with a fraud scheme involving more than $1 million in fraudulently obtained mortgages. Judge Russell sentenced co-defendant Glenroy E. Day, Sr., age 73, of Oxon Hill, Maryland, to two years’ probation, with the first year to be served in home confinement, and as a special condition ordered Day to perform 200 hours of community service during his second year of probation. Judge Russell entered an order that McMillian and Day pay $1,028.003.20 and $540,000 in restitution, respectively.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Special Agent in Charge Brian Murphy of the United States Secret Service-Baltimore Field Office.
According to her plea, in 2007, McMillian told a man who had bought three houses in Baltimore and had finished renovations on two of them, that she had clients from the New York area who were interested in purchasing the properties. When he agreed to sell, McMillian submitted loan application packages to a loan officer at a mortgage corporation in connection with the three properties, as well as a fourth property. The four loan application packages were subsequently approved.
The government’s investigation revealed that virtually all of the information submitted in the four loan packages was false. In two cases, the purported buyers were individuals who had already returned to their home countries or planned to do so in the near future; the other two “buyers” listed on the loan applications were either stolen or fictitious identities. In none of the four cases was there a real individual who actually intended to live in the properties and make the mortgage payments on them. Moreover, the representations made and the supporting documentation provided on each loan application relating to the employment, income, and financial assets for each purchaser were likewise false.
McMillian arranged to have Day, an unlicensed appraiser, prepare the appraisal reports on all four properties because she knew he would provide an appraisal at the specific contract price without regard to the actual condition or value of the property. For two properties located at 2243 Madison Avenue and 2359 McCulloh Avenue, Day admitted that he falsely represented that both properties had been recently upgraded and renovated. Day further admitted that these two appraisals also included interior photographs that were actually taken in completely different and thoroughly renovated houses. Day’s appraisals indicated that each of the four appraisals had been reviewed and approved by a licensed appraiser, but the individual specified has denied that he saw or reviewed any of the four appraisals.
Based on the false information provided relating to the four “buyers” and the condition and market value of the properties, the mortgage company agreed to extend financing on each of the four properties, totaling $1.094 million in all.McMillian received a total of approximately $278,000 from the four transactions at the closings, although she in turn transferred $122,000 of the settlement proceeds to another individual and an associate’s business checking account. Day received approximately $2,000 which he had charged for preparing the four appraisals.
Following the closings, the mortgage on each property soon went into default. Typically, either no mortgage payments were made at all, or only a couple of payments were made.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage Fraud/index.html.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.United States Attorney Rod J. Rosenstein praised the FBI and U.S. Secret Service for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Jefferson M. Gray, who prosecuted the case.
Topeka Man SentencedIn Commercial RobberiesRead the Press Release
TOPEKA, KAN. – A Topeka man has been sentenced to 30 months in federal prison after pleading guilty to two commercial robberies, U.S. Attorney Barry Grissom said today.
Brendon R. Thompson, 26, Topeka, Kan., pleaded guilty to two counts of robbery. On Nov. 16, 2012, he robbed the EZ Payday Advance store at 2613 S.W. 21st Street in Topeka. On Jan. 17, 2013, he robbed the Family Dollar at 1313 S.W. 21st Street in Topeka.
Grissom commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.
Topeka Man Sentenced to Federal Prison on Firearm ChargeRead the Press Release
TOPEKA, KAN. - A Topeka man has been sentenced to 15 months in prison after pleading guilty to a federal firearm charge, U.S. Attorney Barry Grissom said today.
Frederick L. Sanders, 41, Topeka, Kan., pleaded guilty to one count of unlawful possession of a firearm after a felony conviction. Sanders was indicted by a federal grand jury May 29. The indictment alleged that on April 22, 2013, he unlawfully possessed a .45 caliber single-shot derringer pistol. At the time Sanders was prohibited by federal law from possessing a firearm because he had a prior felony conviction. He was convicted June 15, 2006, in Shawnee County District Court on a charge of possession of methamphetamine.
Grissom commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Tony Mattivi for their work on the case.Three More Charged in A Series of PNC Bank Robberies Across the StateRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, John A. Bolduc, Chief, Port St. Lucie Police Department, Kenneth Mascara, Sheriff, St. Lucie County Sheriff’s Office, J. Michelle Morris, Chief, Sebastian Police Department, Deryl Loar, Sheriff, Indian River County Sheriff’s Office, and Ric L. Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, announce the arrests of Raven Simone Sayers, 23, of Hallandale, Florida, Joe JR Desilien, 24, and Herbert LeNorris Smith, 36, both of West Palm Beach, Florida. Sayers, Desilien and Smith were arraigned on November 5, 2013 on a Second Superseding Indictment before U.S. Magistrate Judge Frank J. Lynch, Jr. in Ft. Pierce, Florida, bringing the number of defendants charged in the series of PNC Bank armed robberies to eight. Trial has been set for January 27, 2014, in Ft. Pierce before U.S. District Judge Jose E. Martinez.
The Second Superseding Indictment, filed October 31, 2013, charges the defendants with conspiracy to obstruct, delay, or affect commerce or the movement of any article or commodity in commerce by robbery (Hobbs Act), in violation of Title 18, United States Code, Section 1951; with obstruction, delay, or affect commerce or the movement of any article or commodity in commerce by robbery (Hobbs Act), in violation of Title 18, United States Code, Section 1951; and using and carrying a firearm during and in relation to a crime of violence, in violation of Title 18, United States Code, Section 924(c). If convicted of the Hobbs Act robbery conspiracy or Hobbs Act robbery, the defendants face a possible maximum statutory sentence of 20 years in prison. If convicted of using and carrying a firearm during and in relation to a crime of violence, the defendants face a mandatory minimum of seven years in prison. In the case of a second or subsequent conviction, the defendants face a mandatory minimum of 25 years in prison, up to a possible maximum sentence of life in prison, consecutive to any other sentence imposed.
According to the criminal complaints filed in these matters, on July 8, 2013, the PNC Bank located in Ft. Pierce, Florida and the PNC Bank in Port St. Lucie, Florida were robbed almost simultaneously at gunpoint by groups of black males wearing white clothing and white cloth masks. In each robbery, the groups of males fled in mini vans stolen earlier that morning. One group was apprehended after a police chase that ended near the intersection of Port St. Lucie Boulevard and Aster Road in Port St. Lucie, Florida. The driver Tomaleesha Jeffie Laqua McKeliver, and the three passengers, Anthony Isaac Johnson, Allan Demetrius Bradford, and Ivory Lee Robinson, III, were arrested.
The criminal complaints also state that shortly after two of the males fled the PNC Bank in Port St. Lucie, Florida, the third male became momentarily trapped inside, and was observed removing clothing as he fled the bank. A bag containing money was recovered near the PNC Bank and defendant Paul Edward Moore was arrested nearby. With the exception of Moore, the other individuals involved in the Port St. Lucie bank robbery remained at large until the recent arrests of defendants Sayers, Desilien and Smith.
Mr. Ferrer commended the investigative efforts of the FBI, Port St. Lucie Police Department, St. Lucie County Sheriff’s Office, Sebastian Police Department, Palm Beach County Sheriff’s Office, Port Orange Police Department, and Hillsborough County Sheriff’s Office for their work on this case. The case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three Members of “La Onu” Found Guilty for Rico Act ConspiracyRead the Press Release
SAN JUAN, Puerto Rico – Today, after 12 days of jury trial, three members of La ONU, Edwin Bernard Astacio-Espino aka Bernard, Luis D. Rivera-Carrasquillo aka Danny KX, Danny Vorki and Ramón Lanza-Vàzquez aka Ramoncito, were found guilty of drug trafficking and murder charges. Namely, violations to the Racketeer Influenced and Corrupt Organizations Act (RICO), Violent Crimes in Aid of Racketeering Activity (VICAR), use of firearms in furtherance of crimes of violence, conspiracy to possess with intent to distribute controlled substances, and possession of firearms by prohibited persons, announced United States Attorney Rosa Emilia Rodríguez-Vélez. The United States District Court Judge José A. Fusté presided over the trial.
The indictment alleged that from in or around 2004, the leaders of different drug points operating in the metropolitan area formed an alliance. This alliance would help them resolve conflicts between the previously rival drug gangs in a way that would not bring about the attention of local and federal authorities, thus ensuring increased profits from drug sales for all and reducing the risk of charges. It is further alleged that the alliance initially worked, but weakened over time. Several housing project gangs became disgruntled with La ONU and sought to break away from the organization. After several conflicts, La ONU broke into two (2) separate rival factions, La ONU and La Rompe ONU (La Rompe). The housing project gangs were split between those belonging to La ONU and La Rompe.
From the time of the split, the goal of La ONU was to maintain control through the use of force over the drug points in their members’ housing projects, and to kill La Rompe members and leaders in order to expand. Members of La ONU who committed murders and other violent acts were given benefits, including weapons, money and the ability to advance within the criminal enterprise. Though unwritten, the general rules followed by members of La ONU included, but were not limited to: 1) no associating with La Rompe members; 2) kill La Rompe members on sight; 3) no killing of other members of La ONU without leadership authorization; 4) no overtaking housing projects/drug points owned by other members of La ONU; and 5) no cooperating with law enforcement. Any violation of these rules was punishable by death of the violator and/or his/her family members.During the trial, evidence was presented relating to defendants’ participation in eleven (11) murders and three (3) attempted murders, all committed in furtherance of the activities of La ONU. These acts are as follows:
- On or about November 12, 2007, in Puerto Rico, defendant Ramón Lanza-Vàzquez, aka “Ramoncito” and other ONU members shot and killed Orlando Medina-Serrano.
- In October 2008, Luis D. Rivera-Carrasquillo, aka “Danny KX” or “Danny Vorki,” tortured and killed Isaac Nair Ortiz-Rivera aka Kiki.
- On or about February 19, 2009, in Puerto Rico, defendant Luis D. Rivera-Carrasquillo, aka “Danny KX” or “Danny Vorki,” and other ONU members killed Ángel Gonzàlez-Villanueva, aka “Chaple.”
- In July 2009, Luis D. Rivera-Carrasquillo, aka “Danny KX” or “Danny Vorki,” killed Jayson Rivera Rivera, Camilo Ruiz Concepcion and Juan Pagan Lopez in what was known as the Cocobongo Massacre.
- On or about January 5, 2010, in Puerto Rico, defendants Luis D. Rivera-Carrasquillo, and others killed Luis Antonio De-Jesús-Pérez.
- On or about April 8, 2010, in Puerto Rico, ONU membersshot and killed Victor Vega-Ortega, aka “Victor El Nazi.”
- On or about May 4, 2010, in Puerto Rico, defendant Edwin Bernard Astacio-Espino, aka “Bernard” shot into a patrolling police helicopter and killed Jesús Quiñones-Santiago, and attempted to kill José Rivera-Quinoñes, Eduardo Alvelo-Meléndez, and Shakira Vàzquez-Nieves.
- On or about July 7, 2010, in Puerto Rico, defendant Edwin Bernard Astacio-Espino and others shot and killed Puerto Rico Police Officer Blanca De Los Santos-Barbosa and Manuel Medina-Rivera.
- On or about August 8, 2010, in Puerto Rico, defendant Edwin Bernard Astacio-Espino, and Luis D. Rivera-Carrasquillo and others killed Christian Toledo-Sànchez, aka “Pekeke.” During the course of the murder, Luis Gallardo-Rivera, aka “El Tuerto,” was shot and killed by the rival drug gang.
“These convictions demonstrate the commitment of the Department of Justice and the U.S. Attorney’s Office in Puerto Rico to eradicate drug trafficking and violent crimes in Puerto Rico. For many years these individuals intimidated the citizens of the metropolitan area with their violence and drug trafficking,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “We are pleased with the jury’s verdict. “The jury trial which led to today’s conviction was one of the first ever RICO Act prosecutions of its nature in the District of Puerto Rico. We will use all the tools at our disposal to take dangerous criminals off the streets of Puerto Rico, until we break their grip on our communities and bring them to justice.”
The case was prosecuted by Assistant United States Attorney Jenifer Y. Hernàndez-Vega and Special Assistant US Attorney Victor Acevedo-Hernàndez.
The defendants face up to life imprisonment. The sentencing hearings were scheduled for February 10, 2014.
The United States and CA, Inc. Settle Federal Civil Fraud Claims for $8 MillionRead the Press Release
Loretta E. Lynch, United States Attorney for the Eastern District of New York, today announced the settlement of claims that CA, Inc. (CA), an Islandia, New York-based software and information technology company, defrauded the federal government in connection with contracts administered by the General Services Administration (GSA) and the Department of Defense (DOD). Pursuant to the settlement, which has been approved by United States District Judge Leonard D. Wexler, CA has paid the United States eight million dollars ($8,000,000.00).
The settlement announced today is the result of a joint investigation conducted by the GSA Office of the Inspector General, and, on behalf of DOD, the Defense Criminal Investigative Service (DCIS).
Between 2001 and 2010, federal government agencies purchased software maintenance services from CA, including upgrades and technical assistance, in accordance with contracts between CA and the GSA. The government’s investigation established that CA knowingly double-billed federal agencies by charging for periods of software maintenance for which the agencies had already paid. Specifically, when federal customers entered into software maintenance renewal agreements with CA, the company began the renewal periods on the day CA processed the order, rather than the day after the expiration of the customer’s then-existing maintenance period.
The government’s investigation also encompassed claims that CA prevented DOD buying commands, including military bases, from taking advantage of pre-paid software inventory and discounts available under several contracts known as Blanket Purchase Agreements (BPAs). The investigation established that CA fraudulently administered the BPAs by steering DOD customers away from BPA purchases and toward purchases under more costly contracts.
The settlement resolves claims filed under seal by Ann-Marie Shaw pursuant to the False Claims Act (FCA) in the action United States of America, et al., ex rel. Shaw v. CA, Inc. The FCA provides that a person with information that false claims for payment have been presented to the United States may bring a lawsuit for the United States and may share in any recovery. The Shaw suit also alleged fraud claims on behalf of California, Florida, Hawaii, Illinois, Massachusetts, Nevada, Virginia, New York, the District of Columbia, and the City of New York. The state claims are being settled pursuant to a separate agreement. The seal in the Shaw case was lifted on November 5, 2013.
CA has denied the government’s claims.
“The United States is not a deep pocket of taxpayer dollars to be exploited by private industry. We expect those who conduct business with the United States to honor their obligations accurately and honestly,” stated United States Attorney Loretta E. Lynch. “We will continue to vigorously enforce the False Claims Act for the protection of taxpayers and the United States government.” Ms. Lynch praised the successful partnership between the United States Attorney’s Office and the investigative agencies to carry out the mission to detect and prevent fraud.
“The federal government cannot afford to be overcharged,” said GSA Inspector General Brian D. Miller. “We need to save every taxpayer dollar we can.”
“By steering DOD customers away from the value-saving contract instruments, CA, Inc. took advantage of their federal customers and the U.S. taxpayers through their disregard for appropriate corporate governance. CA’s actions resulted in DOD paying again for software maintenance already paid for,” commented Special Agent in Charge Craig W. Rupert, DCIS Northeast Field Office. “The Defense Criminal Investigative Service, with our partner agencies, continues to aggressively pursue defense contractors who disregard the rules of commerce and law that disadvantage their customers.”
The United States’ claims were litigated by Assistant United States Attorney Robert W. Schumacher.
Suspended Border Patrol Agents Sentenced to PrisonRead the Press Release
TUCSON, Ariz. - On Nov. 12, 2013, United States District Court Judge Jennifer G. Zipps sentenced suspended Border Patrol Agents Dario Castillo, age 25, of Yuma, Ariz., and Ramon Zuniga, age 31, of San Luis, Ariz., to 24 months in prison, as a result of their convictions for civil rights offenses. Both were ordered to self-surrender for service of their sentence on or before Jan. 14, 2014.
On April 19, 2013, a federal jury in Tucson found Castillo guilty of four felony counts of deprivation of rights under color of law, and Zuniga guilty of four misdemeanor violations. The case was tried before Judge Zipps from April 8 through April 19, 2013.
“The United States Attorney’s Office will continue to hold accountable all federal law enforcement officers in Arizona who abuse their authority in violation of their oath of office,” said United States Attorney John S. Leonardo. “Violations of the law by those sworn to enforce it undermine public confidence in the entire criminal justice system and will not be tolerated. The sentences imposed today reinforce the fundamental principle that no one, including a law enforcement officer, is above the law.”
Evidence at trial showed that on Nov. 12, 2008, Zuniga and Castillo participated in a Border Patrol operation to track and contact border-crossers in Southern Arizona. At approximately 10:30 p.m., agents located a group of persons carrying backpacks containing marijuana. Most of these individuals fled, but four of the group were apprehended by the defendants and two other agents. During a search of the four, Zuniga discovered a small baggie of personal-use marijuana on one of them. He then shoved the marijuana into several of the victims’ mouths and yelled “cometela” (eat it). The defendants ordered the victims to take off their shoes, socks, jackets, and extra shirts, which the victims had layered to protect against the cold, leaving them barefoot and wearing a single layer of clothing. Defendant Castillo asked another agent for a cigarette lighter and then lit a fire which contained the victims’ shoes and clothing. Zuniga and Castillo then ordered the victims to run away, without shoes or socks, and wearing only a single layer of clothing. The four victims spent the night in the desert and were rescued the next morning by a Tribal Police Officer.
Following the completion of their prison sentences, each defendant will serve a three year term of supervised release.
The investigation in this case was conducted by the Department of Homeland Security’s Office of Inspector General. The prosecution was handled by Karen Rolley and Eric Markovich, Assistant United States Attorneys, District of Arizona, Tucson.
CASE NUMBER: 11-CR-02727-JGZ
RELEASE NUMBER: 2013-085_ Zuniga&CastilloFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Springfield Man Sentenced for Selling CocaineRead the Press Release
BOSTON - A Springfield man was sentenced in U.S. District Court in Springfield today for cocaine possession and distribution.
Bryan Murph, 24, was sentenced by U.S. District Court Judge Michael A. Ponsor to 14 months in prison and three years of supervised release. In April 2013, Murph pleaded guilty to two counts of possession with intent to distribute and distribution of cocaine base. On two occasions in February 2012, the defendant sold crack cocaine to a cooperating witness.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Mark Mastroianni, Hampden County District Attorney; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; Commissioner William Fitchet of the Springfield Police Department; and Sheriff Michael J. Ashe, Jr., of Hampden County, made the announcement today. The case was prosecuted by Alex J. Grant of Ortiz’s Springfield Branch Office Unit.
Phoenix, New York - Man was sentenced for a felony violation of the Clean Air ActRead the Press Release
SYRACUSE, New York - Richard S. Hartunian, United States Attorney for the Northern District of New York, announced today that Edward Palmer, 47, of Phoenix, N.Y., was sentenced in U.S. District Court in Syracuse before the Honorable Frederick J. Scullin, for a felony violation of the Clean Air Act, 42 U.S.C. § 7413(c), related to the illegal removal and disposal of asbestos. Palmer was sentenced to serve sixth months of home detention as part a two year term of Probation. He was further ordered to pay a criminal fine of $25,000 and to perform 50 hours of community service.
Palmer is the owner of Carbonsted, LLC, a company that owns the former Nestles Plant, 555 Fourth Street, Fulton, NY. The plant contains pipes with more than two thousand of feet of friable asbestos insulation. Palmer engaged in asbestos renovation activities without filing a notification with the United States Environmental Protection Agency. He directed unlicensed individuals to perform asbestos removal without wetting the asbestos and keeping it wet, and without properly disposing of the asbestos at a state-approved landfill.
Asbestos exposure has been determined to cause various forms of cancer, asbestosis, and mesothelioma, a nearly always fatal disease. The Environmental Protection Agency has determined that there is no safe level of exposure to asbestos. This case was investigated by Special Agents of the Environmental Protection Agency, and N.Y. State Department of Environmental Conservation. Inspectors with the NYS Department of Labor also assisted. Prosecution is being handled by Assistant United States Attorney Craig A. Benedict. Mr. Benedict may be contacted for questions regarding this case at 315-448-0672.
Newport Man Detained on Federal Drug & Firearm ChargesRead the Press Release
PROVIDENCE, R.I. – Ian Andrade, 36, of Newport, was ordered detained today by U.S. District Court Magistrate Judge Patricia A. Sullivan on federal drug and firearm charges, announced United States Attorney Peter F. Neronha and Newport Police Chief Gary T. Silva. Andrade was arrested by Newport Police on Friday.
According to an affidavit in support of an arrest warrant and a criminal complaint charging Andrade with one count each of possession with intent to distribute cocaine and possession of a firearm in furtherance of a drug trafficking crime filed with the court, Newport Police executed court authorized search warrants on Friday at Andrade’s Newport residence and for his vehicle. Detectives seized approximately than 400 grams of cocaine and a loaded firearm from a hidden compartment discovered inside a rear passenger seat of the vehicle; nearly three-quarters of a pound of marijuana and a shotgun from Andrade’s residence; and $4,435 from Andrade’s person.
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.
Possession of cocaine with the intent to distribute is punishable by a statutory penalty of up to 20 years in federal prison and a fine of up to $1,000,000. Possession of a firearm in furtherance of a drug trafficking crime is punishable by a statutory penalty of a minimum of 5 years and up to life imprisonment, to be served consecutive to any other sentence imposed, and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorneys Pamela E. Chin and Stephen G. Dambruch.
The DEA and DEA Drug Task Force assisted Newport Police in the investigation of this matter.
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]New York Man Pleads Guilty in Huge Stolen Identity Refund Fraud CaseRead the Press Release
Admits He was Personally Involved in $9.9 Million in Phony Transactions
NEWARK, N.J. – A New York man today admitted his role as a leader of one of the nation's largest and longest running stolen identity refund fraud schemes ever identified, U.S. Attorney Paul J. Fishman announced.Jose Torres, a/k/a “Jose Quilestorres,” a/k/a “Carlos Jose Luis,” 47, of Bronx, N.Y., pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging him with conspiracy to defraud the United States, theft of government property and aggravated identity theft.
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 resulted in losses to the United States of more than $12 million. Torres admitted the fraudulently obtained tax refund checks in which he was personally involved totaled $9.9 million.
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. The schemes generally share a number of hallmarks:
• The 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.
• They complete individual income tax returns (Form 1040) using the fraudulently obtained information and falsifying wages, taxes withheld and other data. They use the 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 generated by the fraudulent 1040 forms to locations they control or can access.
• With the checks in hand, SIRF perpetrators generate cash proceeds. Some sell the checks at a discount to face value, and the buyers cash them, either themselves or using straw account holders, at banks or check cashing businesses or deposit them into bank accounts. They often use fraudulent identification documents to do this.
The Investigation
Federal law enforcement agencies in New Jersey created a multi-agency task force composed of investigators from the IRS and the U.S. Postal Inspection Service, along with the U.S. Secret Service, and the Drug Enforcement Administration.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 2008, 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.
Torres and others obtained personal identifiers, such as dates of birth and Social Security numbers, belonging to Puerto Rican citizens. Torres then directed others to use those identifiers to create fraudulent 1040 forms to create the appearance they were entitled to tax refunds. The fraudulent 1040 forms were created and filed electronically. By tracing the specific IP addresses that submitted the electronically filed 1040s, law enforcement officers learned that only a handful of IP addresses created many of the fraudulent 1040 forms, which, in turn, led to the issuance of refund checks that the conspirators obtained, sold, cashed, and spent.
Torres and others gained control of the refund checks by bribing mail carriers to intercept checks and deliver them to other conspirators. In exchange for cash payments, the carriers gave checks to conspirators, who sold the checks to other conspirators.
Torres and others also purchased “mail routes,” lists of addresses covered by a single mail carrier. Conspirators applied for refunds, inserted addresses along the mail route as the purported home addresses of the taxpayers, and obtained the refund checks sent to the addresses. In other instances, the conspirators applied for checks using addresses otherwise controlled by, or accessible to, certain conspirators, and collected the checks after they were delivered to those addresses. During the course of the scheme, hundreds of tax refund checks were mailed to just a few different addresses in a few different towns, including Nutley, Somerset and Newark, N.J., and Shirley, N.Y.
The New Jersey task force identified certain “hot spots” of activity; millions of dollars of tax refund checks were being directed to just a few towns and cities in and around New Jersey. Task force members then interacted with U.S. Postal Service employees in these hot spots and identified the characteristics of refund checks connected to the scheme. As a result of these efforts, more than $22 million in refund checks, applied for fraudulently, that had been issued by the U.S. Treasury were not delivered to the conspirators or others, but were interdicted by law enforcement officers.
The conspiracy count is punishable by a maximum potential penalty of five years in prison and up to a $250,000 fine. The substantive count of theft of government property is punishable by a maximum potential penalty of 10 years in prison and up to a $250,000 fine. The aggravated identity theft count is punishable by a statutory mandatory minimum sentence of two years in prison, which must run consecutively to any other sentence.
Torres previously pleaded guilty in the Southern District of New York to charges arising out of the same scheme. He will be sentenced in the Southern District of New York on the charges from both states at a date to be determined.
U.S. Attorney Fishman praised special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and inspectors of the U.S. Postal Inspection Service, under the direction of Maria L. Kelokates, with the investigation leading to today’s guilty pleas. He also thanked the special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola; the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski; and HSI-ICE, under the direction of Special Agent in Charge Andrew M. McLees, for their roles.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.
13-433
Defense Counsel: Joseph Bondy Esq., New York, and Paul Warburgh Esq., Huntington, N.Y.
Torres, Jose Information
Members of New York Cell of Cybercrime Organization Plead Guilty in $45 Million Cybercrime CampaignRead the Press Release
BROOKLYN, NY – Earlier today, Evan Jose Peña pleaded guilty to participating in two worldwide cyberattacks that inflicted $45 million in losses on the global financial system in a matter of hours. Peña’s plea followed two other guilty pleas in this case entered by defendants Emir Yasser Yeje and Elvis Rafael Rodriguez in October 2013. These three defendants were members of the New York-based cell of an international cybercrime organization that used sophisticated intrusion techniques to hack into the systems of global financial institutions, steal prepaid debit card data, and eliminate withdrawal limits. The stolen card data was then instantly disseminated worldwide and used in making fraudulent ATM withdrawals on a massive scale across the globe. The New York cell in which Pena, Yeje, and Rodriguez participated withdrew almost $2.8 million in a matter of hours.
The pleas were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Steven Hughes, Special Agent in Charge, United States Secret Service, New York Field Office.
“These three defendants participated in a criminal flash mob, using data stolen through the most sophisticated hacking techniques to withdraw millions of dollars in mere hours in an unprecedented cyber heist,” stated United States Attorney Lynch. “Their pleas demonstrate that the United States government will not relent in its efforts to investigate and prosecute the perpetrators of these financially devastating cyberattacks.” Ms. Lynch expressed her grateful appreciation to the United States Secret Service, New York Field Office for their work on the investigation.
The “Unlimited Operation”
As alleged in the indictment and other court filings, the cyberattacks employed by the defendants and their co-conspirators in this case are known in the cyber underworld as “Unlimited Operations” — through its hacking “operation,” the cybercrime organization can access virtually “unlimited” criminal proceeds.
The “Unlimited Operation” begins when the cybercrime organization hacks into the computer systems of a payment card processor, compromises prepaid debit card accounts, and essentially eliminates the withdrawal limits and account balances of those accounts and also manipulates the security protocols that would alert the victim to the attack. The compromised card data is then distributed to cells worldwide who use the data to encode magnetic stripe cards to use at ATMs. These sophisticated techniques enable the participants to withdraw literally unlimited amounts of cash until the operation is finally detected and shut down. “Unlimited Operations” are marked by three key characteristics: (1) the surgical precision of the hackers carrying out the cyberattack, (2) the global nature of the cybercrime organization, and (3) the speed and coordination with which the organization executes its operations on the ground. These attacks rely upon both highly sophisticated hackers and organized criminal cells whose role is to withdraw the cash as quickly as possible.
The Defendants’ Roles in the Charged Cyberattacks
Evan Peña, Elvis Rafael Rodriguez, and Emir Yasser Yeje participated in two recent “Unlimited Operations” of staggering size. The first operation, on December 22, 2012, targeted a payment card processor that processed transactions for prepaid MasterCard debit cards issued by the National Bank of Ras Al-Khaimah PSC, also known as RAKBANK, in the United Arab Emirates. After the hackers penetrated the credit card processor’s computer network, compromised the RAKBANK prepaid card accounts, and manipulated the balances and withdrawal limits, casher cells across the globe operated a coordinated ATM withdrawal campaign. In total, more than 4,500 ATM transactions were conducted in approximately 20 countries around the world using the compromised RAKBANK account data, resulting in approximately $5 million in losses to the credit card processor and RAKBANK.
The second, and even more damaging, of these Unlimited Operations occurred on the afternoon of February 19 and lasted into the early morning of February 20, 2013. This operation again breached the network of a payment card processor that serviced MasterCard prepaid debit cards, this time issued by Bank Muscat, located in Oman. Again, after the cybercrime organization’s hackers compromised Bank of Muscat prepaid debit card accounts and distributed the data, the organization’s casher cells engaged in a worldwide ATM withdrawal campaign. Over the course of approximately 10 hours, cyber cells in 24 countries executed approximately 36,000 transactions worldwide and withdrew about $40 million from ATMs.
Peña, Rodriguez, and Yeje operated the New York cell of “cashers,” who encoded magnetic stripe cards, such as gift cards, with the compromised card data. After receiving the compromised account information and personal identification numbers (PINs) for the hacked accounts, the defendants’ cells sprang into action, immediately fanning out across the New York area making thousands of withdrawals from ATMs. During the RAKBANK Unlimited Operation, over the course of just two hours and 25 minutes, the defendants and their co-conspirators conducted approximately 750 fraudulent transactions, totaling nearly $400,000, at over 140 different ATM locations in New York City. The Bank Muscat Unlimited Operation was even more devastating. From 3 p.m. on February 19 through 1:26 a.m. on February 20, the defendants and their co-conspirators withdrew approximately $2.4 million in nearly 3,000 ATM withdrawals in the New York City area.
The defendants then passed portions of the proceeds back to the hackers organizing the attack and kept the rest for themselves. Notably, defendants Rodriguez and Yeje laundered hundreds of thousands of dollars in illicit cash proceeds. In one transaction alone, nearly $150,000 in the form of 7,491 $20 bills, was deposited at a bank branch in Miami, Florida, into an account controlled by defendant Alberto Yusi Lajud-Peña, who is now deceased. New York cell members also invested the criminal proceeds in portable luxury goods, such as expensive watches and cars. To date, the United States has seized hundreds of thousands of dollars in cash, bank accounts, and luxury merchandise, including two Rolex watches and a Mercedes SUV, and is in the process of forfeiting a Porsche Panamera. The Mercedes and Porsche were purchased with $250,000 in proceeds of this scheme.
In announcing the pleas, United States Attorney Lynch praised the extraordinary efforts of the Secret Service in responding to these attacks and investigating both the complex network intrusions that occurred overseas and the criminal activity occurring locally, and also expressed gratitude to U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) in New York for their assistance in this investigation. Ms. Lynch also thanked MasterCard, RAKBANK, and Bank Muscat for their cooperation with this investigation.
Today’s plea took place before United States District Judge Kiyo A. Matsumoto. When sentenced, the defendants face up to 7.5 years in prison, as well as forfeiture and a fine of up to $250,000.
The government’s case is being prosecuted by Assistant United States Attorneys Cristina Posa, Hilary Jager, David Sarratt, and Brian Morris.
The Defendants:EVAN JOSE PEÑA
Age: 35ELVIS RAFAEL RODRIGUEZ
Age: 24EMIR YASSER YEJE
Age: 24McKean County Man Sentenced to 5 Years in Prison for Receiving Child PornographyRead the Press Release
ERIE, Pa. - A resident of Smethport, Pennsylvania, has been sentenced in federal court to 60 months in jail and ordered to pay a fine in the amount of $36,000 on his conviction of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
United States District Judge Maurice B. Cohill, Jr. imposed the sentence on Peter Nollen Hergenrother, 63.
According to information presented to the court, Hergenrother received computer images depicting minors engaging in sexually explicit conduct.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Pennsylvania State Police for the investigation leading to the successful prosecution of Hergenrother.
Launched in February 2006, Project Safe Childhood is a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys' Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Maui Business Owner Sentenced to 12 Months Imprisonment for Tax Evasion and StructuringRead the Press Release
HONOLULU – United States District Judge Leslie E. Kobayashi today sentenced Roger Santos, age 54, of Kahului, Maui to 12 months and 1 day imprisonment, 6 months home confinement, 3 years supervised release, 100 hours of community service and restitution to the Internal Revenue Service in the amount of $317,599.00 for one count of income tax evasion and one count of structuring. Santos pled guilty to these offenses on May 22, 2013.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to documents filed in connection with the case, in 2008, Santos diverted approximately $959,883 from the checking account of the business he operated, Paradise Asian Foods, Inc., .into multiple personal checking accounts. He then reported as income only the money that was deposited into the business account. These actions fraudulently lowered his taxable income by approximately $365,267 for the 2008 tax year.
Information produced to the court also reflected that Santos deposited $30,000 in currency into multiple bank accounts on the same day in order to evade certain regulations relating to currency transactions. Under federal law, a Currency Transaction Report must be filed by a financial institution with the Internal Revenue Service in regard to any currency transaction over $10,000. It is illegal to structure transactions with financial institutions in order to avoid this filing requirement.
The charges resulted from an investigation conducted by IRS - Criminal Investigation. Assistant United States Attorney Leslie E. Osborne, Jr. handled the prosecution.
Massive Medicare Fraud Mastermind Sentenced to 15 Years in Prison in Connection with $77 Million SchemeRead the Press Release
BROOKLYN, NY – Earlier today, Irina Shelikhova, 50, of Brooklyn, New York, was sentenced to 15 years in prison for her leadership role in a $77 million Medicare fraud scheme. In addition to the prison term, U.S. District Judge Nina Gershon of the Eastern District of New York sentenced Shelikhova to 3 years of supervised release with a concurrent exclusion from Medicare, Medicaid and all Federal health programs, ordered her to forfeit $36,241,545, and ordered her to pay restitution in the amount of $50,943,386. Shelikhova has been in custody since June 15, 2012, when she was arrested at JFK Airport after living as a fugitive in the Ukraine for almost two years. After serving her sentence, she faces deportation from the United States.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Special Agent-in-Charge Thomas O’Donnell of the HHS Office of Inspector General (HHS-OIG).
Shelikhova pleaded guilty on December 18, 2012 to conspiracy to commit money laundering. Including Shelikhova, 13 individuals have been convicted of the massive fraud scheme, either through guilty plea or trial conviction.
“Irina Shelikova used fake doctors and forged documents to defraud Medicare out of millions of dollars of very real money. As the owner and operator of three medical clinics, Shelikova engaged in a brazen scheme of fraudulent billing and kickbacks, going so far as to pay kickbacks to elderly patients in exchange for their Medicare numbers and their silence. She relied upon her web of payoffs, kickbacks, and Russian propaganda to support her criminal scheme, but the truth caught up with her and justice has now been served,” stated United States Attorney Lynch. “Protecting taxpayer funded programs like Medicare is a priority of this Office and the Department of Justice. Today’s sentence represents a clear warning to those who seek to defraud Medicare that they will be held accountable for their crimes.”
According to court documents, from 2005 to 2010, Shelikhova owned and operated a clinic in Brooklyn that billed Medicare under three corporate names: Bay Medical Care PC, SVS Wellcare Medical PLLC and SZS Medical Care PLLC (Bay Medical clinic). Shelikhova and her employees at the Bay Medical clinic paid cash kickbacks to Medicare beneficiaries and used the beneficiaries’ names to bill Medicare for more than $77 million in services that were medically unnecessary or never provided. The defendants billed Medicare for a wide variety of fraudulent medical services and procedures, including physician office visits, physical therapy and diagnostic tests.
According to testimony at the trial of her co-defendants, Shelikhova masterminded the health care fraud at the Bay Medical clinic, which included hiring a medically unlicensed co-defendant to impersonate the clinic’s “no-show” doctor and render phony medical “care” to such patients. Shelikhova also directed employees to create fake medical notes in an attempt to back up the false billing and to forge doctors’ names on prescriptions and charts.
The government’s investigation included the use of a court-ordered audio/video recording device hidden in a room at the clinic, in which the conspirators paid cash kickbacks to corrupt Medicare beneficiaries. The conspirators were recorded paying approximately $500,000 in cash kickbacks during a period of approximately six weeks from April to June 2010. This room was marked “PRIVATE” and featured a Soviet-era poster of a woman with a finger to her lips and the words “Don’t Gossip” in Russian. The purpose of the kickbacks was to induce the beneficiaries to receive unnecessary medical services or to stay silent when services not provided to the patients were billed to Medicare.
To generate the large amounts of cash needed to pay the patients, Shelikhova directed the recruitment and operation of a network of external money launderers who cashed checks for the clinic. Shelikhova wrote clinic checks payable to various shell companies controlled by the money launderers. These checks did not represent payment for any legitimate service at or for the Bay Medical clinic, but rather were written to launder the clinic’s fraudulently obtained health care proceeds. The money launderers cashed these checks and provided the cash back to the clinic. Shelikhova used the cash to pay illegal cash kickbacks to the Bay Medical clinic’s purported patients.
This case is being prosecuted by Trial Attorney Sarah M. Hall of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Shannon Jones of the Eastern District of New York. The case was investigated by the FBI and HHS.
The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Manhattan U.S. Attorney Files and Settles Lawsuit Against Owners and Operators of Carmine’s Restaurants for Violations of the Americans with Disabilities ActRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today the filing and settlement of a lawsuit against the owners and operators of the two Manhattan locations of the popular Carmine’s restaurant chain for violations of the Americans With Disabilities Act of 1990 (“ADA”). The defendant owners and operators of the Carmine’s Restaurants and owners of the buildings in which the Carmine’s Restaurants are located are GREYSTONE OWNER LLC, CARMINE’S BROADWAY FEAST INC., PARAMOUNT LEASEHOLD L.P., LITTLE FISH CORP., and THE ALICART RESTAURANT GROUP. The settlement, in the form of a consent decree, was docketed today, November 12, 2013 and approved Friday November 8, 2013 by U.S. District Judge Kimba M. Wood.
The lawsuit was brought as part of the Manhattan Restaurants ADA Compliance Initiative, announced in September 2011. As part of the initiative, the U.S. Attorney’s Office is reviewing and evaluating the ADA compliance of the “most popular” restaurants in Manhattan as designated by the 2011 Zagat Guide. Pursuant to the initiative, the U.S. Attorney’s Office resolved its lawsuit against three ROSA MEXICANO locations by Consent Decree entered on January 30, 2013.
Manhattan U.S. Attorney Preet Bharara said: “As this suit and settlement demonstrate, we remain committed to ensuring that the owners and operators of New York City’s restaurants and cultural venues comply with the ADA.”
According to the Complaint and Consent Decree filed in Manhattan federal court:
The U.S. Attorney’s Office identified numerous violations of the ADA at each of Carmine’s Manhattan locations: 2450 Broadway (“Carmine’s Upper West Side”) and 200 West 44th Street (“Carmine’s Theater District”). Most significantly, Carmine’s Upper West Side lacks an accessible main entrance, its “alternate entrance” is also non-compliant in several respects, and it lacks an accessible restroom. The accessible restrooms in Carmine’s Theater District are also non-compliant in multiple respects.
The Consent Decree requires the restaurants to improve the accessibility of their entrances, waiting areas, bar areas, dining areas, restrooms, coat checks, and hostess stations. The Consent Decree provides for renovations to the main and alternate entrances and construction of an accessible restroom at Carmine’s Upper West Side, and alterations to the restrooms at Carmine’s Theater District. In addition, the owners and operators of the restaurants will pay a $10,000 civil penalty to the United States.
Since President George H.W. Bush signed the ADA into law in 1990, the U.S. Attorney’s Office for the Southern District of New York has taken a leading role in bringing numerous New York City institutions into compliance with the ADA regulations. They include Avery Fisher Hall at Lincoln Center, the Metropolitan Opera, Yankee Stadium, Madison Square Garden, the Apollo Theater, the Puck Building, the Shubert Theaters, the Rainbow Room, and Radio City Music Hall.
Mr. Bharara thanked the Disability Rights Section of the Department of Justice, in particular its architectural staff, for their assistance in this matter.
The Restaurants Initiative is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorneys Amy A. Barcelo, Christopher Connolly, and Cristine Irvin Phillips are in charge of the Initiative.
To file a complaint alleging that a restaurant or any other place of public accommodation within the Southern District of New York is not accessible to persons with disabilities, use the Civil Rights Complaint Form available on the United States Attorney’s Office’s website, www.usdoj.gov/usao/nys. Complaints should be sent to:
U.S. Attorney’s Office, Southern District of New York
86 Chambers Street, 3rd Floor
New York, New York, 10007
Attention: Chief, Civil Rights Unit
U.S. v. Greystone Owners, LLC, et al. Complaint
U.S. v. Greystone Owners, LLC, et al. Executed Consent Decree 2013.11.8Man Sentenced to More Than 10 Years in Federal Prison in Child Sex-Trafficking CaseRead the Press Release
FORT WORTH, Texas — Deundrea R. Miller, 27, was sentenced today by U.S. District Judge Terry R. Means to 121 months in federal prison following his guilty plea in June 2013 to one count of count of conspiracy to commit sex trafficking of a minor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Miller’s co-defendant, Brittanie S. Brattain, 22, who pleaded guilty to the same offense, was sentenced in October 2013 to 72 months in federal prison.
According to documents filed in Miller’s case, prior to September 2012, Miller had a relationship with Brattain. In late September or early October 2012, Miller and Brattain met Jane Doe. They agreed to take pictures of Jane Doe to post advertisements for “dates” on Back Page that would be used for commercial sex acts. Miller and Brattain used a cell phone to take the pictures and post the advertisements.
Some of the commercial sex acts involving Jane Doe occurred in motels in East Fort Worth. After the commercial sex acts, Jane Doe would give the money she received to Miller. Miller and Brattain harbored and maintained Jane Doe while they stayed in these motels.
In January 2013, Miller and Brattain rented a duplex in Fort Worth where commercial sex acts involving Jane Doe also occurred. Also in January 2013, Miller and Brattain posted “escort” advertisements involving Jane Doe. While Jane Doe stayed with Miller and Brattain, Miller and Brattain received financial benefit from her participation in commercial sex acts, all in reckless disregard that Jane Doe was under age 18.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and other members of the North Texas Anti-Trafficking Team, including the Arlington, Fort Worth and Dallas Police Departments, the Texas Department of Public Safety and the Texas Attorney General’s Office. Assistant U.S. Attorney Aisha Saleem prosecuted.
Lummi Tribal Member Sentenced to Ten Years in Prison for RapeRead the Press Release
An enrolled member of the Lummi Tribe was sentenced last week to ten years in prison for aggravated sexual abuse, announced U.S. Attorney Jenny A. Durkan. ROBERT DEWEY JOHNSON, 48, of the Lummi Indian Reservation, sexually assaulted a woman who was a guest in his home while her young children were present. The assault occurred on December 3, 2012. At the sentencing hearing Chief U.S. District Judge Marsha J. Pechman imposed the ten year sentence saying she was concerned about the emotional harm to the victim and to her children who heard their mother’s screams.
According to records filed in the case, the victim and her family were socializing in JOHNSON’s home. When the victim’s significant other left to run an errand, JOHNSON sexually assaulted the victim in a bedroom of the home. JOHNSON was indicted in May 2013 and pleaded guilty in July 2013.
In addition to the prison term, JOHNSON will be on supervised release for five years and will be required to register as a sex offender.
The case was investigated by the Lummi Police Department and the FBI. The case was prosecuted by Assistant United States Attorney J. Tate London.
Lonnie Dean Sentenced to Twenty Years in Federal Prison for Trafficking Methamphetamine in Valencia County and Assaulting a Federal OfficerRead the Press Release
ALBUQUERQUE – Lonnie Dean, 48, of Belen, N.M., was sentenced this afternoon to 20 years in federal prison followed by five years of supervised release for his conviction on methamphetamine trafficking and assault on a federal officer charges. Dean’s sentence was announced by Acting U.S. Attorney Steven C. Yarbrough, Special Agent in Charge Joseph M. Arabit of the El Paso Division of the DEA, and Chief Roy E. Melnick of the Los Lunas Police Department.
Dean was one of twelve individuals from Valencia and Socorro Counties charged with federal methamphetamine trafficking charges in May and June 2011, following a 16-month investigation led by the DEA and the Los Lunas Police Department. The investigation, code-named “Vanilla Sky,” was pursued under the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide initiative that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated attack against major drug trafficking and money laundering organizations.
According to court filings, Dean was part of a large scale methamphetamine trafficking organization that operated in Valencia County. Between March 2010 and May 2011, members of the organization conspired to sell ounce quantities of methamphetamine to undercover DEA agents on at least ten separate occasions. They sold more than a pound of methamphetamine to the undercover DEA agents during a 14-month period.On April 2, 2013, Dean pled guilty to conspiracy to distribute methamphetamine, possession of methamphetamine with intent to distribute, and assaulting a federal officer with a dangerous weapon. In entering his guilty plea, Dean admitted conspiring with others to distribute methamphetamine in Los Lunas and Belen, and assaulting a federal officer as he attempted to avoid arrest.
More specifically, Dean admitted that on May 26, 2011, he drove to a gas station in Belen for the purpose of selling methamphetamine to another person. As Dean was talking to his customer, DEA agents approached Dean and attempted to arrest him. One DEA agent, who had blocked Dean’s car from the front, exited his car and was moving on foot to a better tactical position with his gun and badge drawn, while another DEA agent parked his vehicle behind Dean’s car to block Dean in. Dean admitted that, instead of surrendering, he put his car into reverse and hit the DEA agent’s car causing it to go backward. Dean then put his car into drive and drove forward, missing the DEA agent only because the agent jumped to the side to avoid being struck. Less than a minute later, Dean drove into a road and entered an intersection where he struck a car driven by Roberta Torres, a 40-year-old resident of Belen, who died as a result of the injuries she sustained in the crash.
Dean faces several state charges, including a vehicular homicide charge, relating to Ms. Torres’ death in the 13th Judicial District Court for the State of New Mexico. Dean has entered a not guilty plea to the state charges.
Seven other defendants have entered guilty pleas in federal cases filed as a result of Operation Vanilla Sky. Three defendants have pleaded not guilty and are scheduled for trial on Nov. 18, 2013. The remaining defendant, Arturo Acosta-Astorga, has yet to be arrested and is considered a fugitive. The charges against the defendants pending trial and the fugitive are merely accusations and they are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the DEA and the Los Lunas Police Department and is being prosecuted by Assistant U.S. Attorneys Nicholas J. Ganjei and Joel R. Meyers.
Kansas City Man Sentenced in Carjacking CaseRead the Press Release
KANSAS CITY, KAN. - A Kansas City, Kan., man has been sentenced to 10 years on a federal charge arising from a carjacking and armed robbery, U.S. Attorney Barry Grissom said today.
Terry D. Tillman, 26, Kansas City, Kan., pleaded guilty to one count of carjacking. In his plea, he admitted that on May 26, 2013, he and three co-defendants walked to a Stop Shop gas station at 6865 State Avenue in Kansas City, Kan., where co-defendant Derrick Freeman suggested they “get a car.” While co-defendant Anthony Irvin held the driver of a 2004 Ford Freestar minivan at gunpoint, Tillman and Freeman robbed the driver of wallet and keys. The defendants drove away in the minivan, with Tillman riding in a rear passenger seat.
When the defendants realized officers had spotted their vehicle they led police on a 17-minute chase at speeds up to 112 miles per hour. The minivan wrecked in a plowed field near Leavenworth Road and North 184th Street in Basehor, Kan., where the defendants fled on foot. Freeman fired a handgun at a law enforcement officer before being arrested. Tillman was arrested about 100 yards from the vehicle.
Co-defendants include: Derrick Freeman, 28, Kansas City, Kan.,who is awaiting sentencing.
Anthony L. Irvin, 19, Kansas City, Kan., who is set for sentencing Nov. 25.
Melvin L. Shields, 20, Kansas City, Kan., who is set for sentencing Nov. 25.
Joe Freeman, 33, Kansas City, Kan., who is set for trial Jan. 21.
Jeffrey B. Jackson, 47, Leavenworth, Kan., who is awaiting trial.Grissom commended the Kansas City, Kan., Police Department, the Wyandotte County Sheriff’s Department, the Kansas Highway Patrol, the Basehor Police Department, the Edwardsville Police Department, the Bonner Springs Police Department, the Leavenworth County Sheriff’s Department and Special Assistant U.S. Attorneys Erin Tomasic and Trent Krug for their work on the case.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Kamiah Man Sentenced for Unlawfully Possessing AmmunitionRead the Press Release
COEUR D’ALENE – James Reuben Norton Blackeagle, 30, of Kamiah, Idaho, was sentenced today in United States District Court to 21 months in prison for unlawfully possessing ammunition, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Blackeagle to serve three years of supervised release and forfeit the ammunition he unlawfully possessed. He pleaded guilty to the charge on August 21, 2013.
According to the plea agreement, Blackeagle admitted that on February 28, 2013, he possessed ammunition within his residence and vehicle. Blackeagle was prohibited from possessing firearms and ammunition due to a previous conviction in 2007 for possession of a destructive device, a felony punishable by a term of imprisonment exceeding one year.
The case was investigated by the Federal Bureau of Investigation, with the assistance of the Nez Perce Tribal Police Department.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Justice Department and HUD Settle Discrimination Claims Against the City of Joliet, Ill.Read the Press Release
Comprehensive Agreement Will Preserve Affordable Housing for City Residents for Next 20 Years
The Justice Department, the Department of Housing and Urban Development (HUD) and the City of Joliet, Ill., have settled housing discrimination litigation that will preserve affordable housing for low-income residents in the southwest Chicago suburb for at least the next 20 years, the U.S. Attorney’s Office for the Northern District of Illinois and the Civil Rights Division announced today.
The agreement, which was approved today by the U.S. District Court for the Northern District of Illinois, resolves the claims of the United States in two lawsuits in which the government contended that the city had discriminated against African Americans in violation of the Fair Housing Act when it attempted to condemn a federally subsidized affordable housing development. The development, known as Evergreen Terrace, contains 356 units of affordable housing that are currently operated by a private owner pursuant to a 20-year contract with HUD. The agreement ensures that, if the city acquires the property through condemnation or otherwise, any displaced resident will be able to remain in affordable housing in Joliet, and at least 115 low-income housing units will continue to be available for families at the property or, subject to HUD approval, elsewhere in Joliet.
“The United States is committed to ensuring that individuals and families, regardless of their race or income, have an opportunity to live in the community of their choosing,” said Jocelyn Samuels, Acting Assistant Attorney General for Civil Rights. “This settlement ensures that, if the city prevails in its eminent domain action, Evergreen Terrace residents will not be forced to leave the city and low-income housing opportunities will be preserved in the city.
“This settlement guarantees that the United States will attain its major goal in this litigation, namely to preserve the affordable housing rights of low-income residents in Joliet and those at Evergreen Terrace in particular,” said U.S. Attorney for the Northern District of Illinois Zachary T. Fardon. “Local governments that try to reduce affordable housing opportunities without providing meaningful alternatives risk running afoul of anti-discrimination laws. As a result of this settlement, the low-income residents of Evergreen Terrace will be able to either stay at Evergreen Terrace or move to suitable alternative housing in Joliet.”
“This settlement protects the housing rights of minority families living in Joliet and preserves affordable housing options for many years to come,” said HUD General Counsel Helen Kanovsky. “Government at every level should make certain they cultivate affordable housing and avoid creating obstacles that close doors on families who deserve a place to call home.”
Under today’s settlement, if the city acquires the property, consisting of eight buildings on North Broadway Street and North Bluff Street, it will still be bound by certain restrictions designed to protect residents and preserve affordable housing within the city of Joliet. Among other things, the agreement:
· Ensures that tenants who wish to remain in Joliet will not be displaced unless and until Joliet finds suitable housing in the city that will also accept the residents’ federal housing subsidies. The city will also provide relocation counseling to displaced residents through a HUD-approved organization and will provide all assistance required by the Uniform Relocation Act;
· Requires the city to preserve at least 115 of the low-income housing units for the next 20 years. The housing units would remain at the property initially, but the city could seek to transfer the subsidy to another development in Joliet pursuant to HUD’s program requirements for such transfers. No such transfer could be carried out until the replacement housing is ready for occupancy, and current and former Evergreen Terrace residents would have first priority for residency;
· Provides that to the extent any other housing is developed at the property, it would include the minimum number of affordable units required by the Low-Income Housing Tax Credit Program;
· Requires the city to construct and maintain a community center to provide services to current and former Evergreen Terrace residents and other low- and moderate-income residents of the city;
· Maintains most of the Evergreen Terrace site for use as a public purpose for at least twenty years;
· Restores to the city HUD funding under HUD’s Community Development Block Grant and HOME Investment Trust Funds program that HUD had previously withheld because of its conclusion that the city was not complying with the Fair Housing Act and other applicable civil rights laws; and
· Ends HUD’s participation in the ongoing trial in the condemnation lawsuit.
The current property owners of Evergreen Terrace and four current tenants had also challenged the city’s condemnation action, and today’s agreement does not resolve their claims.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. Fair housing enforcement is a priority of the Civil Rights Division. More information about the Civil Rights Division and the laws it enforces can be found at www.justice.gov/crt . Individuals who believe that they may have been victims of housing discrimination can call the housing Discrimination Tip Line at 1-800-896-7743, email the Justice Department at [email protected] , or contact the U.S. Department of Housing and Urban Development at 1-800-669-9777.
Justice Department Sues to Stop Louisiana Tax Return PreparerRead the Press Release
Return Preparer in La Place, La., Allegedly Overstated Refunds through Inflated Expenses, Deductions, Credits, and Fabricated Businesses
The United States has asked a federal court in New Orleans to permanently bar Shawanda Nevers (aka Shawanda Bryant, aka Shawanda Hawkins, aka Shawanda Johnson) of La Place, La., from preparing federal income tax returns for others, the Justice Department announced today. According to the complaint, Nevers has prepared federal income tax returns in Louisiana through a business named 3LJ’s Industrial Service Solutions LLC. The complaint alleges that she has prepared returns that unlawfully understate income tax liabilities and overstate refunds through a variety of schemes.
According to the complaint, Nevers prepared returns that claimed losses by fabricating expenses for fictitious businesses or overstating expenses incurred by legitimate enterprises. The deductions for these fictitious or overstated expenses were claimed on a Form Schedule C – Profit or Loss From Business, which Nevers often included in her clients’ returns without their knowledge. The returns Nevers prepared directed the Internal Revenue Service (IRS) to deposit the resulting refunds into her account, from which she deducted a fee before remitting the balance to her clients. The complaint states that the IRS has examined a sample of tax returns that Nevers prepared for her clients for the tax years 2009 through 2011 and almost all of the returns examined had Schedule C losses that audits proved were either overstated or falsified. Altogether, the complaint alleges that Nevers’ activities may have resulted in as much as $6 million of loss to the United States.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2013 . The IRS has tips for choosing a tax preparer: www.irs.gov/Tax-Professionals/Choosing-a-Tax-Professional . In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website.
Related Materials:
United States v.Shawanda Nevers, etc.
Complaint for Permanent Injunction and Other ReliefJustice Department Selects Four Courts to Identify Promising Practices <br /> in Custody and Visitation Decisions in Domestic Violence CasesRead the Press Release
The Department of Justice’s Office on Violence Against Women (OVW), in partnership with the National Council of Juvenile and Family Court Judges (NCJFCJ), announces the selection of four courts to participate in the Family Court Enhancement Project (FCEP) to improve custody and visitation decision-making for families who have experienced domestic violence. The four courts selected are: Circuit Court of Cook County in Chicago, Ill.; Family Court of the State of Delaware; Hennepin County Family Justice Center in Minneapolis, Minn.; and Multnomah County Family Court in Portland, Ore.
“In order to maintain safety for the entire family, it is crucial that judges weigh the dynamics of domestic violence and its impact on both adults and children when making custody and visitation decisions,” said OVW Acting Director Bea Hanson. “Ensuring the safety of domestic violence victims and their children during and after court proceedings is an essential component of the FCEP. This project will provide guidance to courts around the country in implementing proven procedures and practices that keep victims and children safe.”
The FCEP, a collaborative project of NCJFCJ, OVW, the Battered Women’s Justice Project, and the National Institute for Justice, is designed to determine what family court procedures, practices and structures related to custody and visitation can help keep victims of domestic violence and their children safe from further violence and trauma. The four courts chosen for the FCEP applied to an open call for concept papers that was issued by NCJFCJ. OVW, NCJFCJ and BWJP reviewed the concept papers based on the criteria set forth in the call.
OVW experts have identified, from a series of roundtable discussions and extensive research, challenges that affect the safety of domestic violence victims and their children involved in custody proceedings. These challenges include: failure to identify and understand domestic violence in court and in third-party assessments; structural and procedural barriers; limited legal and advocacy resources; and the effects of race, class, and gender biases on outcomes.
Over the next two years, the FCEP and the selected courts will work closely with national domestic violence and court improvement experts to implement better approaches for keeping domestic violence victims and their children safe through and beyond court proceedings. Additionally, the U.S. Department of Justice’s National Institute of Justice will lead efforts on data collection and assisting each site in measuring the impacts of their systems change.
According to the CDC, women experience two million injuries from domestic violence each year and approximately one third of all incidents involving female victims take place in homes in which children ages twelve and under reside. More than 15 million American children are exposed to domestic violence each year. Many domestic violence victims and their children will come before a family court, and these courts make custody, visitation and other decisions that will have a significant long-term effect on these children and adults.
OVW, a component of the U.S. Department of Justice, provides leadership in developing the nation’s capacity to reduce violence against women through the implementation of the Violence Against Women Act (VAWA) and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing 22 federal grant programs, OVW often undertakes initiatives in response to special needs identified by communities facing acute challenges. More information is available at www.ovw.usdoj.gov.
Justice Department Requires US Airways and American Airlines<br /> to Divest Facilities at Seven Key Airports to Enhance<br /> System-wide Competition and Settle Merger ChallengeRead the Press Release
The Department of Justice today announced that it is requiring US Airways Group Inc. and American Airlines’ parent corporation, AMR Corp. to divest slots and gates at key constrained airports across the country to low cost carrier airlines (LCCs) in order to enhance system-wide competition in the airline industry resulting in more choices and more competitive airfares for consumers.The department said the proposed settlement will increase the presence of the LCCs at Boston Logan International, Chicago O’Hare International, Dallas Love Field, Los Angeles International, Miami International, New York LaGuardia International and Ronald Reagan Washington National. Providing the LCCs with the incentive and ability to invest in new capacity and permitting them to compete more extensively nationwide will enhance meaningful competition in the industry and benefit airline travelers.
“This agreement has the potential to shift the landscape of the airline industry. By guaranteeing a bigger foothold for low-cost carriers at key U.S. airports, this settlement ensures airline passengers will see more competition on nonstop and connecting routes throughout the country,” said Attorney General Eric Holder. “The department’s ultimate goal has remained steadfast throughout this process - to ensure vigorous competition in airline travel. This is vital to millions of consumers who will benefit from both more competitive prices and enhanced travel options.”
Six state attorneys general–Arizona, Florida, Pennsylvania, Michigan, Tennessee and Virginia–and the District of Columbia joined in the department’s proposed settlement, which was filed in the U.S. District Court for the District of Columbia. If approved by the court, the settlement will resolve the department’s competitive concerns and the lawsuit.
“The extensive slot and gate divestitures at these key airports are groundbreaking and they will dramatically enhance the ability of LCCs to compete system-wide,” said Assistant Attorney General Bill Baer of the Department of Justice’s Antitrust Division. “This settlement will disrupt the cozy relationships among the incumbent legacy carriers, increase access to key congested airports and provide consumers with more choices and more competitive airfares on flights all across the country.”
On Aug. 13, 2013, the department, six state attorneys general and the District of Columbia filed an antitrust lawsuit against US Airways and American alleging that US Airway’s $11 billion acquisition of American would have substantially lessened competition for commercial air travel in local markets throughout the United States. The department alleged that the transaction would result in passengers paying higher airfares and receiving less service. In addition, the department alleged that the transaction would entrench the merged airline as the dominant carrier at Reagan National, where it would control 69 percent of take-off and landing slots, thus effectively foreclosing entry or expansion by competing airlines.
The settlement requires US Airways and American to divest slots, gates and ground facilities at key airports around the country. Specifically, the settlement requires the companies to divest or transfer to low cost carrier purchasers approved by the department:
All 104 air carrier slots (i.e. slots not reserved for use only by smaller, commuter planes) at Reagan National and rights and interest in other facilities at the airport necessary to support the use of the slots;
Thirty-four slots at LaGuardia and rights and interest in other facilities at the airport necessary to support the use of the slots; and
Rights and interests to two airport gates and associated ground facilities at each of Boston Logan, Chicago O’Hare, Dallas Love Field, Los Angeles International and Miami International.
The Reagan National and LaGuardia slots will be sold under procedures approved by the department. Under the terms of the settlement, JetBlue at Reagan National and Southwest at LaGuardia will be given the opportunity to acquire the slots they currently lease from American. The remaining 88 slots at Reagan National and 24 slots at LaGuardia plus any JetBlue or Southwest decline to acquire will be grouped into bundles, taking into account specific slot times to ensure commercially viable and competitive patterns of service for the recipients of the divested slots. The parties will divest these slot bundles and all rights and interests in any gates and other ground facilities (e.g., ticket counters, baggage handling facilities, office space and loading bridges) as necessary to support the use of the purchased slots.
The gates at the five airports will be transferred on commercially reasonable terms to the new acquirers. The acquirers of the slot and gate divestitures also require approval of the department. Preference will be given to airlines at each airport that do not currently operate a large share of slots or gates.
The proposed settlement allows the department to appoint a monitoring trustee to oversee the divestitures or transfers of the slots and gates. The settlement also prohibits the merged company from reacquiring an ownership interest in the divested slots or gates during the term of the settlement. The companies must also provide advance notice of any future slot acquisition at Reagan National regardless of whether or not it is a reportable transaction under the premerger notification law and further provides for waiting periods and opportunities for the department to obtain additional information in order to review the transaction.
AMR is a Delaware corporation with its principal place of business in Fort Worth, Texas. AMR is the parent company of American Airlines. Last year American flew more than 80 million passengers to more than 250 destinations worldwide and took in more than $24 billion in revenue. In November 2011, American filed for bankruptcy reorganization.
US Airways is a Delaware corporation with its principal place of business in Tempe, Ariz. Last year US Airways flew more than 50 million passengers to more than 200 destinations worldwide and took in more than $13 billion in revenue.
Jury Finds Laie Woman Guilty of Bankruptcy FraudRead the Press Release
HONOLULU –A jury in United States District Court found Michelle Malufau, 47, of Laie, Oahu, guilty today of bankruptcy fraud related to the Chapter 7 bankruptcy that she filed in 2011. Specifically, after a four day trial and less than an hour of deliberation, the jury convicted Malufau of making false statements under penalty of perjury on documents filed in that 2011 bankruptcy, and also of testifying falsely under oath at a hearing in that same proceeding.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that the evidence presented at trial showed that Malufau knowingly and fraudulently concealed at least three assets that she owned and/or controlled during her 2011 bankruptcy: a house on the North Shore of Oahu, which had over $322,000 in equity in it; a bank account; and rental income. Malufau received a discharge of over $1 million of debt through that proceeding.
Malufau faces up to five years in prison on each charge when she is sentenced by Senior United States District Judge Helen Gillmor on February 27, 2014.
The investigation that resulted in the charges against Malufau was conducted by the Internal Revenue Service - Criminal Investigation, with assistance from the Federal Bureau of Investigation. Assistant United States Attorneys Michael Nammar and Andrea Hattan handled the prosecution.
Joliet Settles U.S. Housing Discrimination Case, Preserves Affordable Housing for Low-Income Residents for 20 YearsRead the Press Release
CHICAGO ― The United States and the City of Joliet have settled housing discrimination litigation that will preserve affordable housing for low-income residents in the southwest suburb for at least the next 20 years, the United States Attorney’s Office and the Justice Department’s Civil Rights Division announced.
The agreement, which was approved today by U.S. District Judge Charles Norgle, resolves the claims of the United States in two lawsuits in which the government contended that Joliet had discriminated against African-Americans in violation of the Fair Housing Act when it attempted to condemn a federally subsidized affordable housing development. The development, known as Evergreen Terrace, contains 356 units of affordable housing that are currently operated by a private owner pursuant to a 20-year contract with the U.S. Department of Housing and Urban Development. The agreement ensures that if Joliet acquires the property through condemnation or otherwise, any displaced resident will be able to remain in affordable housing in Joliet, and at least 115 low-income housing units will continue to be available for families at the property or, subject to HUD approval, elsewhere in Joliet.
“This settlement guarantees that the United States will attain its major goal in this litigation, namely to preserve the affordable housing rights of low-income residents in Joliet and those at Evergreen Terrace in particular,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois. “Local governments that try to reduce affordable housing opportunities without providing meaningful alternatives risk running afoul of anti-discrimination laws. As a result of this settlement, the low-income residents of Evergreen Terrace will be able to either stay at Evergreen Terrace or move to suitable alternative housing in Joliet,” he said.
“The United States is committed to ensuring that individuals and families, regardless of their race or income, have an opportunity to live in the community of their choosing,” said Jocelyn Samuels, Acting Assistant Attorney General for Civil Rights. “This settlement ensures that, if the city prevails in its eminent domain action, Evergreen Terrace residents will be protected from forced to leave the city and low-income housing opportunities will be preserved in the city.”
Under today’s settlement, if the city acquires the property, consisting of eight buildings on North Broadway and North Bluff streets, it will still be bound by certain restrictions designed to protect residents and preserve affordable housing within the City of Joliet. Among other things, the agreement:
- ensures that tenants who wish to remain in Joliet will not be displaced unless and until Joliet finds suitable housing in the city that will also accept the residents’ federal housing subsidies. The city will also provide relocation counseling to displaced residents through a HUD-approved organization and will provide all assistance required by the Uniform Relocation Act;
- requires the city to preserve at least 115 of the low-income housing units for the next 20 years. The housing units would remain at the property initially, but the city could seek to transfer the subsidy to another development in Joliet pursuant to HUD’s program requirements for such transfers. No such transfer could be carried out until the replacement housing is ready for occupancy, and current and former Evergreen Terrace residents would have first priority for residency;
- provides that to the extent any other housing is developed at the property, it would include the minimum number of affordable units required by the Low Income Housing Tax Credit Program;
- requires the city to construct and maintain a community center to provide services to current and former Evergreen Terrace residents and other low- and moderate-income residents of the city;
- maintains most of the Evergreen Terrace site for use as a public purpose for at least twenty years;
- restores to the city HUD funding under HUD’s Community Development Block Grant and HOME Investment Trust Funds program that HUD had previously withheld because of its conclusion that the city was not complying with the Fair Housing Act and other applicable civil rights laws; and
- ends HUD’s participation in the ongoing trial in the condemnation lawsuit. (City of Joliet v. Mid-City National Bank of Chicago, et al., No. 05 C 6746, and United States v. City of Joliet, No. 11 C 5305.)
The current property owners of Evergreen Terrace and four current tenants had also challenged the city’s condemnation action, and today’s agreement does not resolve their claims. The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. Fair housing enforcement is a priority of the Civil Rights Division. More information about the Civil Rights Division and the laws it enforces is available at justice.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the housing Discrimination Tip Line at 1-800-896-7743, email the Justice Department at [email protected], or contact the U.S. Department of Housing and Urban Development at 1-800-669-9777.
The government was represented by Assistant U.S. Attorneys Patrick Johnson and Ernest Ling, together with trial attorneys from the Justice Department’s Civil Rights Division.
Inmate Sentenced to 30 Months in Prison for Assaulting Federal Correctional OfficerRead the Press Release
PROVIDENCE, R.I. – Earl Francis Hart, 53, an inmate at the Donald W. Wyatt Detention Facility in Central Falls, was sentenced today to 30 months in federal prison for assaulting a federal correctional officer in February 2013, announced United States Attorney Peter F. Neronha and United States Marshal Jamie A. Hainsworth.
Hart was ordered by U.S. District Court Judge Mary M. Lisi to serve the sentence consecutive to a 30-year federal prison sentenced imposed in U.S. District Court in Boston earlier the same day the assault occurred at the Wyatt Detention Facility. Hart was convicted in October 2010 by a federal court jury in Boston on drug trafficking and firearms charges.
According to information presented to the court, on February 1, 2013, correctional officers at the Wyatt Detention Facility went to the cell where Hart was housed to lock him down following an alleged assault on another inmate. Hart refused commands to turn around and allow the officers to handcuff him. When officers entered his cell, Hart punched one of the officers repeatedly and continued to throw punches at four other officers who worked to subdue and handcuff him.
Hart pleaded guilty on November 8, 2013, to one count of assaulting a federal employee as charged in a federal indictment returned on April 10, 2013.
The case was prosecuted by Assistant U.S. Attorney Zechariah Chafee.
The matter was investigated by the United States Marshals Service and investigators at the Donald W. Wyatt Detention Center.
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]Huntington Woman Who Participated in Illegal Drug Distribution Scheme Enters Federal Guilty PleaRead the Press Release
HUNTINGTON, W.Va. – A Huntington woman who participated in an oxycodone and heroin distribution conspiracy pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin. Kimberly Gayle Hamlett, 39, pleaded guilty to distribution of oxycodone before Chief United States District Judge Robert C. Chambers in Huntington. From at least 2011 through August 8, 2013, Hamlett participated in a conspiracy to sell oxycodone pills and heroin. In May, Hamlett sold approximately one gram of heroin to a police informant in exchange for $200. The illegal heroin transaction took place near 16th Street and 6th Avenue in Huntington.
Hamlett told police that during the conspiracy, she provided residences for her associates to store and sell drugs. She also told police that firearms were kept at the residences.
Hamlett faces up to 20 years in federal prison when she is sentenced on February 24, 2014.
The Huntington Violent Crimes and Drug Task Force conducted the investigation. Assistant United States Attorney Gregory McVey is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Habitual Domestic Violence Offender Pleads Guilty to Assaulting Pregnant GirlfriendRead the Press Release
ALBUQUERQUE – Tayah Edwards, 40, pleaded guilty this morning to a felony information charging him with assault resulting in serious bodily injury and domestic assault by a habitual offender. Under the terms of his plea agreement, Edwards will be sentenced to 70 months in federal prison followed by a term of supervised release to be determined by the court.
The guilty plea was announced by Acting U.S. Attorney Steven C. Yarbrough, Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, and Director John Billison of the Navajo Nation Division of Public Safety.
Edwards, an enrolled member of the Navajo Nation who resides in Cudei, N.M., was arrested in Aug. 2013, based on a criminal complaint alleging that he assaulted his domestic partner with dangerous weapons, including a stick, a knife and a rock. According to court filings, the assault occurred at a location within the Navajo Indian Reservation on Aug. 20, 2013. The victim, who was pregnant, sustained numerous injuries, including a compound fracture to her left leg, a large scalp laceration and multiple contusions, as a result of the assault.
This morning, Edwards pled guilty to assaulting his intimate partner by striking her in the head and face numerous times and hitting her repeatedly with a stick and a rock. In his plea agreement, Edwards acknowledged that the victim, who was 35 weeks pregnant with the couple’s child at the time of the assault, sustained serious injuries as a result of the assault. Edwards also admitted that he previously has been convicted on at least two occasions for assaulting his spouse or intimate partner in Utah state courts.
Edwards has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. The case is being prosecuted by Special Assistant U.S. Attorney David Adams pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project which is sponsored by the Justice Department’s Office on Violence Against Women, and seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Gonzales County, Texas, Woman Sentenced to 46 Months in Federal Prison for Possessing, with Intent to Distribute, Crack CocaineRead the Press Release
LUBBOCK, Texas — Catarina Munos Robledo, 24, of Waelder, Texas, was sentenced on Friday, by U.S. District Judge Sam R. Cummings, to 46 months in federal prison, following her guilty plea in August 2013 to one count of possession with the intent to distribute cocaine base (crack cocaine), announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, on March 20, 2013, an officer with the Early (Texas) Police Department stopped a Chrysler Town and Country vehicle, which was being driven by Robledo, for a traffic violation. After noting inconsistencies in the explanation she gave the officer about her travel, the officer asked for consent to search the vehicle, which she granted. The officer found a plastic bag containing eight “cookies” of suspected cocaine base in in the vehicle’s center console. Robledo was arrested and testing confirmed the substance was in fact, cocaine base, with a net weight of 72.25 grams.
The case was investigated by the Early Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Deputy Criminal Chief Assistant U.S. Attorney Denise Williams prosecuted.
G.R.E.A.T. Graduation at Harry S. Truman Elementary SchoolRead the Press Release
United States Attorney Alicia A.G. Limtiaco, announced today that after undergoing a six-week curriculum taught by Gang Resistance Education And Training (G.R.E.A.T.) officers, over 71 fifth grade students at Harry S. Truman Elementary School will be receiving their certificates of completion on Wednesday, November 13, 2013, at 12:30 P.M., in the school's cafeteria.
Parents are invited and highly encouraged to attend and participate alongside our students, in the graduation. The G.R.E.A.T. Program's primary objective is awareness and prevention of delinquency, youth violence, and gang membership. The G.R.E.A.T. lessons, aimed at elementary and middle school students, focus on providing life skills to help students avoid delinquent behavior and violence to solve problems.
Mr. Jon Fernandez, Guam Department of Education Superintendent and Santa Rita Mayor Dale Alvarez have also been invited to attend.
U.S. Attorney Limtiaco stated, AWe praise the hard work, motivation and significant accomplishments of our students in completing the G.R.E.A.T. Program, and the continued commitment and dedication of the G.R.E.A.T. instructors to our youth in taking the G.R.E.A.T. message to our schools in Guam.
Anyone interested in learning more about the program can log on to www.great-online.org.
Former SunTrust Assistant Branch Manager Sentenced to 18 Months in Federal Prison for Theft of over $250,000Read the Press Release
Orlando, Florida – U.S. District Judge Charlene Edwards Honeywell today sentenced Gabriel N. Nervig (39, Millville, Utah) to 18 months in federal prison for bank fraud. The court also ordered Nervig to pay restitution to SunTrust in the amount of $155,000 and to serve a four-year term of supervised release, following his release from prison.
Nervig pleaded guilty on August 29, 2013.
According to court documents, from January 2006 to January 2013, Nervig used his position as an Assistant Branch Manager at SunTrust Bank to steal over $274,000 in cash. To conceal his thefts, Nervig prepared General Ledger Debit tickets to correspond with each theft of cash from the bank. On those tickets, Nervig falsely represented that the cash was being used for legitimate SunTrust business purposes. To deceive SunTrust into believing that the proper policies were followed, Nervig made it appear that the General Ledger Debit tickets had been prepared by other employees and that they had been approved by him as the Assistant Branch Manager when, in fact, he had prepared the tickets himself.
Over a seven-year period, Nervig was successful in stealing over $274,000. His scheme was detected in January 2013 when SunTrust auditors found that a large sum of money was missing. After that discovery, Nervig agreed to sign over his bank account and 401(k) account to SunTrust, in order to repay a portion of the amount that he stole. On the date of his sentencing, Nervig made an additional payment towards his restitution. In total, he has paid over $119,000 to SunTrust towards his restitution, leaving a balance of $155,000.
This case was investigated by United States Secret Service. It was prosecuted by Assistant United States Attorney Roger B. Handberg.