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8 November 2013
Rosebud Man Sentenced for Sexual AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, man convicted of Sexual Abuse was sentenced on November 6, 2013, by U.S. District Judge Roberto A. Lange.
Eagle Elk was remanded to the custody of the U.S. Marshals Service.
Ricky Eagle Elk, age 45, was sentenced to 121 months in custody, 5 years of supervised release, $100 to the Federal Crime Victims Fund, and is required to register as a sex offender.
Eagle Elk was indicted by a federal grand jury on April 12, 2013, and pled guilty to the charge on August 14, 2013.
The conviction stems from an incident that took place on August 27, 2012, at a local fair after the victim fell asleep in a tent. Eagle Elk entered the tent and sexually assaulted the victim while she was unconscious and not capable of consenting to the act.
The investigation was conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
Registered Sex Offender Senenced to 10 Years in Prison for Processing Child PornographyRead the Press Release
CHARLOTTE, N.C. – On Thursday, November 7, 2013, U.S. District Court Judge Robert J. Conrad, Jr. ordered a Charlotte man to serve 10 years in prison for possessing child pornography, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. In addition to the prison term, Jerry Keith Kramer, 58, of Charlotte, was ordered to serve a lifetime of supervised release and to continue to register as a sex offender.
Brock D. Nicholson, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Georgia and the Carolinas joins U.S. Attorney Tompkins in making today’s announcement.
In May 2012, a federal criminal indictment charged Kramer with one count of possession of child pornography. According to filed documents and statements made in court, the investigation began while Kramer was on state probation, after a North Carolina probation officer discovered questionable images involving children on Kramer’s computer during a routine home visit. Court records indicate that law enforcement executed a search warrant at Kramer’s Charlotte residence and seized his home computer. A forensic examination revealed that Kramer’s computer contained several images of child pornography. In December 2012, Kramer pleaded guilty to the charge in the indictment.
Kramer’s registered sex offender status stems from his prior convictions for sexually assaulting two minors, in 1992 and 1997, respectively. At yesterday’s hearing, Kramer’s sentence was enhanced because of his prior state convictions.
Kramer has been in federal custody since May 2012. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The case was investigated by HSI. In making today’s announcement U.S. Attorney Tompkins thanked the North Carolina Department of Corrections’ Community Supervision Section for their assistance in this case. Assistant U.S. Attorney Kimlani Ford of the U.S. Attorney’s Office in Charlotte prosecuted the case.
The case is being prosecuted by Assistant U.S. Attorney Kimlani M. Ford of the Western District of North Carolina and Trial Attorney Michael W. Grant of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). The investigation was conducted by ICE-HSI.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Rapid City Man Pleads Guilty to Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Brendan V. Johnson announced that Damian Antonia Quintana, age 30, of Rapid City, South Dakota, appeared before U.S. Magistrate Judge Veronica L. Duffy on November 6, 2013, and pled guilty to Conspiracy to Distribute a Controlled Substance.
The maximum penalty upon conviction is at least 10 years up to life imprisonment and/or a $10,000,000 fine.
During a timeframe of no later than 2008 and up to May 2013, Quintana received ounce quantities of methamphetamine in Rapid City from individuals who knew that it would be subject to further distribution in South Dakota. During the course of this conspiracy, more than 1.5 kilograms of methamphetamine had been distributed.
The investigation was conducted by the Drug Enforcement Administration and the Unified Narcotic Enforcement Team. The case is being prosecuted by Assistant U.S. Attorney Ted L. McBride.
A presentence investigation was ordered and a sentencing date has not been set. The defendant was remanded to the custody of the U.S. Marshals Service pending sentencing.
Property Manager Admits Role in Multimillion-Dollar Mortgage FraudRead the Press Release
CAMDEN, N.J. – A property manager admitted today to conspiring to defraud financial institutions as part of a multimillion-dollar mortgage fraud scam that used phony documents and “straw buyers” to make illegal profits on over-developed condominiums in the Wildwood, N.J., U.S. Attorney Paul J. Fishman announced.
Steven Schlatmann, 27, of Jersey City, N.J., pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging him with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering.
According to documents filed in this case and statements made in court: Schlatmann and his conspirators identified homes in Wildwood and Wildwood Crest. Schlatmann’s conspirators recruited straw buyers to purchase those properties at inflated rates. The straw buyers had good credit scores but lacked the financial resources to qualify for mortgage loans. Schlatmann was aware that his conspirators created fraudulent loan applications that contained false information concerning the straw buyers’ employment, income, assets and intended use of the properties. These actions were designed to make the straw buyers appear more creditworthy than they actually were in order to induce the lenders to make the loans.
Schlatmann and his conspirators caused fraudulent mortgage loan applications in the name of the straw buyers, including the supporting documents, to be submitted to mortgage brokers that the brokers knew were false. Once the loans were approved and the mortgage lenders sent the loan proceeds, Schlatmann’s conspirators took a portion of the proceeds, having funds wired or checks deposited into various accounts they controlled from the fraudulent mortgage loans or lines of credit on several properties. They also distributed a portion of the proceeds to other members of the conspiracy for their respective roles. For his part in the conspiracy, Schlatmann received $259,294 from four separate real estate transactions.
The wire fraud conspiracy charge is punishable by a maximum potential penalty of 30 years in prison and a $1 million fine. The conspiracy to commit money laundering charge is punishable by a maximum potential penalty of 10 years in prison and a $250,000 fine. Schlatmann’s sentencing is scheduled for March 24, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and IRS–Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen in Newark, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jacqueline M. Carle of the U.S. Attorney’s Office Criminal Division in Camden.
13-432
Defense counsel: John Klotz Esq., Clifton, N.J.Schlatmann, Steven Information
Pilot and Passenger of Plane Each Sentenced to Two Years in Federal PrisonRead the Press Release
Plane, With Approximately 160 Pounds of Marijuana on Board, Crashed at Yoakum County Airport
LUBBOCK, Texas — A pilot and his passenger, who belly landed their Beechcraft plane at the Yoakum County Airport on April 30, 2013, and subsequently admitted possessing with the intent to distribute 50 kilograms or more of marijuana, were sentenced this morning in federal court in Lubbock, Texas. Pilot Gregory Thomas, 50, of Sacramento, California, and his passenger, Dorothea Cangelosi, 66, of Waller, Texas, were each sentenced by U.S. District Judge Sam R. Cummings to 24 months in federal prison. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to plea documents filed in the case, on April 30, 2013, deputies with the Yoakum County Sheriff’s Department (YCSD) responded to a plane crash at the Yoakum County Airport, in Plains, Texas. When they arrived, they observed a Beechcraft Bonanza A36 plane that had belly landed in a field approximately 50 yards past the end of the runway.
On April 29, 2013, the day before the crash, Cangelosi flew a commercial airline from Houston, Texas, to Sacramento, California, where she met up with Thomas, a charter pilot, who was paid approximately $5,000 cash to fly her from Sacramento back to Houston. They left Sacramento during the early morning hours of April 30, 2013, and in route to Houston, landed in Plains to refuel. After fueling, the plane encountered engine problems when attempting to take off and crashed.
The YCSD received a 911 call from an individual who reported seeing a female with bags by a road that runs parallel to the airport. Later, deputies located four large canvas duffel bags that were hidden next to a bush more than 100 yards from the crash site. A YCSD drug-detector dog alerted on the bags for the presence of drugs and deputies discovered 151 individual packages of marijuana, with a total weight of 72.8 kilograms or 160 pounds. The drug-detector dog also alerted to the presence of drugs inside the plane.
Thomas admits that after the plane crashed, he and Cangelosi retrieved the duffel bags from the plane’s passenger compartment and hid them more than 100 yards away, across two barbed-wire fences and a road, from the plane. Cangelosi admitted that Thomas carried most of the bags and threw some of them over the fence. They both admitted that they had intended to distribute the marijuana to other individuals in Houston.
The case was investigated by the Drug Enforcement Administration, the Federal Aviation Administration, the YCSD and the Texas Department of Public Safety. Assistant U.S. Attorney Justin Cunningham prosecuted.
Peru, Ill., Physician Indicted on Federal Charges for Allegedly Illegally Dispensing Presecription MedicationsRead the Press Release
CHICAGO — A LaSalle County physician was taken into federal custody this morning after being indicted on federal charges alleging that he illegally dispensed prescription narcotics to three patients in 2012 and 2013. The defendant, Dr. CONSTANTINO PERALES, was charged with 17 counts of illegally dispensing Oxycodone and/or Alprazolam in an indictment returned by a federal grand jury on Wednesday and made public today.
Perales, 62, of Peru, Ill., was expected to appear at 2 p.m. today before U.S. Magistrate Judge Sidney I. Schenkier in Federal Court in Chicago. Perales has been in state custody on related charges, which were dismissed today by LaSalle County prosecutors. Perales’ Illinois medical license was suspended, and he surrendered his DEA registration, after federal and local authorities executed a search warrant at his office and he was arrested on state charges in August.
According to the indictment, Perales dispensed Oxycodone and/or Alprazolam outside the scope of professional practice and without a legitimate medical purpose to three different patients on 17 occasions between May 2012 and August 2013.
Each count carries a maximum penalty of 20 years in prison and a $1 million fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The arrest and charge were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Shields, Jr., Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation, Jack Riley, Special Agent-in-Charge of the Drug Enforcement Administration; Lamont Pugh, III, Special Agent-in-Charge of the U.S. Department of Health and Human Services Office of Inspector General in Chicago; and the Peru Police Department.
The government is being represented by Assistant U.S. Attorney Lela Johnson.
An indictment contains merely charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Pennsylvania Man Sentenced for Conspiracy to Distribute and Possess with Intent to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Blossburg, Pennsylvania, man convicted of Conspiracy to Distribute and Possess with Intent to Distribute a Controlled Substance was sentenced on November 6, 2013, by U.S. District Judge Roberto A. Lange.
Michael Pearlingi, age 44, was sentenced to 13 months of imprisonment, a $1,000 fine, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Pearlingi was indicted for the above charge by a federal grand jury on April 2, 2013. He pled guilty on August 27, 2013.
The conviction stems from an incident on March 14, 2013, when a South Dakota Highway Patrol Trooper spoke with occupants of a motor home, including Pearlingi, when they stopped for fuel. The trooper’s suspicions were heightened during the conversations, and he deployed his narcotics detection dog. The dog indicated to the odor of illegal drugs in the motor home.
The trooper searched the motor home and found large garbage bags containing marijuana, packaged in approximately one-pound bundles. There was also 673 grams of hashish oil and a smaller amount of personal use marijuana in the motor home. The total amount of marijuana found was approximately 113 pounds.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force and South Dakota Highway Patrol. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Pearlingi was immediately turned over to the custody of the U.S. Marshals Service.
Palm Beach County Gastroenterologist Charged with Filing False Tax ReturnsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the unsealing of an indictment charging Krishna Tripuraneni, 55, of Palm Beach County, with three counts of filing false tax returns for 2006 through 2008, in violation of Title 26, United States Code, Section 7206(1). The defendant is scheduled to be arraigned on November 22, 2013.
According to the indictment, Tripuraneni was the registered agent and manager of Palm Beach Surgery Center and other companies operating in Palm Beach County.
If convicted, Tripuraneni faces a maximum sentence of three years in prison for each count of filing false tax returns.
Mr. Ferrer commended the investigative efforts of IRS-CI and the FBI. This case is being prosecuted by Assistant U.S. Attorney Christopher J. Clark.
An Indictment is only an accusation and a defendant is presumed innocent unless and 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.
Officials Announce Formation of Human Trafficking Task ForceRead the Press Release
ROANOKE, VIRGINIA – Officials announced this morning the formation of the Western District of Virginia Human Trafficking Task Force, a joint effort spearheaded by the United States Attorney’s Office for the Western District of Virginia and the Office of the Attorney General for the Commonwealth of Virginia.
The task force will operate across the entirety of the Western Judicial District with the goal of providing comprehensive support for law enforcement, training and victim services in relation to incidents of human trafficking.
“Human trafficking is an emerging issue in the Western District of Virginia, one that must be met with a comprehensive approach,” United States Attorney Timothy J. Heaphy said today. “The establishment of this task force will help law enforcement coordinate efforts to recognize and combat this problem. The group will provide training to law enforcement and other organizations and facilitate investigations and prosecutions of traffickers. It will also connect victims of human trafficking with local service providers. As with other public safety challenges, success in this area requires that we augment our enforcement work with prevention and education.”
The Western District of Virginia Human Trafficking Task Force is broken into four distinct regions: Region One covers the Winchester, Staunton and Harrisonburg areas; Region Two covers the Charlottesville and Lynchburg areas, Region Three covers the area of Roanoke and Danville and Region Four covers the Abingdon and Big Stone Gap regions.
New Jersey Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Deborah R. Gilg announced that Stephen Tanner, age 35, formerly of Omaha, Nebraska, was sentenced for failing to register as a sex offender. The Honorable Joseph F. Bataillon sentenced Tanner to 12 months and 1 day in prison. After his release from prison Tanner will begin a 5 year term of supervised release.
Tanner was previously convicted in state court in Iowa of Sexual Abuse in the Third Degree. He received a sentence of not more than 10 years imprisonment and was required to register as a sex offender. Upon his release, Tanner moved to Nebraska and while he registered with authorities in Iowa, he was required by law to register in Nebraska within three days of moving here. He failed to do so. In March of this year when officers were doing a routine check of registrants, they found he wasn’t at the address where he said he would be when he moved from Iowa. A warrant was issued for his arrest and he was located in West Berlin, New Jersey in May. He claimed to have moved there in March.
The case was prosecuted as a part of Project Safe Childhood. Project Safe Childhood is an initiative of the United States Department of Justice designed to protect children from individuals who would exploit them online or offline and includes individuals who travel in interstate commerce and fail to register as sex offenders as required by law. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
NYPD Detective Pleads Guilty in Manhattan Federal Court to Computer HackingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that EDWIN VARGAS, a detective with the New York City Police Department (“NYPD”), pled guilty to computer hacking crimes. Specifically, VARGAS paid others to hack into e-mail accounts, including e-mail accounts belonging to other NYPD officers and employees, and also accessed a federal law enforcement database without authorization to obtain information about other NYPD officers. VARGAS was arrested in Bronxville, New York, in May 2013. He pled guilty before U.S. District Judge P. Kevin Castel.
Manhattan U.S. Attorney Preet Bharara said: “Detective Edwin Vargas broke the law, instead of upholding it as he swore to do. He accessed a law enforcement database without authorization and paid hackers to illegally obtain e-mail login information for his fellow officers and others. Vargas’s guilty plea today and his forthcoming punishment make clear that those who illegally invade others’ privacy, including members of law enforcement, will not escape prosecution. ”
According to the Complaint and Information filed against VARGAS in Manhattan federal court and statements made in related court proceedings:
Between April 2010 and October 2012, VARGAS, an NYPD detective assigned to a precinct in the Bronx, hired e-mail hacking services to hack into various e-mail accounts so he could obtain log-in credentials, such as the password and username, for those accounts. In total, VARGAS purchased hacks of at least 43 personal e-mail accounts and one cellular phone belonging to at least 30 different individuals, including 20 current or former NYPD officers and an NYPD administrative employee. After receiving the log-in credentials he had purchased from the e-mail hacking services, VARGAS accessed at least one personal e-mail account belonging to an NYPD officer. VARGAS paid a total of more than $4,000 to entities associated with the e-mail hacking services.
VARGAS also admitted to accessing the National Crime Information Center (NCIC) database, a federal database, to obtain information about at least two NYPD officers without authorization to do so. The e-mail accounts of those two officers were among the e-mail accounts VARGAS paid the e-mail hacking services to hack into so he could obtain log-in credentials.
VARGAS, 42, of Bronxville, New York, pled guilty to one count of conspiring to commit computer hacking and one count of computer hacking. Each count carries a maximum sentence of one year in prison. He is scheduled to be sentenced by Judge Castel on March 14, 2014, at 2:00 p.m.
Mr. Bharara praised the investigative work of the FBI and thanked the Internal Affairs Bureau of the New York City Police Department for its cooperation and assistance in the investigation.
The prosecution of this case is being handled by the Office’s Complex Frauds Unit. Assistant United States Attorney Rosemary Nidiry is in charge of the prosecution.
U.S. v. Edwin Vargas Information
Mortgage Loan Officer Is Sentenced to More Than Seven Years in Federal Prison for Role in $1.8 Million Fraud SchemeRead the Press Release
DALLAS — David Joe Cano, was sentenced this morning by Chief U.S. District Judge Sidney A. Fitzwater to 87 months in federal prison and ordered to pay $1,795,125 in restitution for his nearly two-year role in a scheme to launder the proceeds of mortgage fraud. Judge Fitzwater ordered Cano, who, according to a court order setting conditions for his release, is a resident of Arlington, Texas, to surrender to the Bureau of Prisons on January 7, 2014. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Cano, 41, pleaded guilty in November 2012 to one count of conspiracy to engage in monetary transactions in property derived from specified unlawful activity. According to documents filed in the case, Cano was a mortgage loan officer at 1st Capital Investment located in Richardson, Texas. From January 2006 to November 2007, Cano, along with other coconspirators, operated a scheme to obtain fraudulent loans from Bank of America and IndyMac Bank, as well as GreenPoint Mortgage Funding, Inc. and WMC Mortgage Corporation, both located in California, and Everett Financial Inc. dba Supreme Lending and America Homekey, Inc., both in Dallas. Cano and his conspirators then laundered the money from those loans back to themselves using shell corporations such as Comex International Korea Corporation, Eagle’s Marc Enterprises, Inc. and Sunko Construction.
To defraud the banks and mortgage lenders, Cano and his conspirators selected newly constructed or distressed properties whose value could be inflated without raising lenders’ suspicions. Cano and company then recruited individuals with good credit scores to act as loan applicants for the purchase of the properties and paid them to apply for loans using applications that falsely inflated the applicant’s income and assets. The applicants were deceitfully promised that the properties would be leased until they were sold at a profit and that the applicants would receive regular payments from the rental income that would be sufficient to repay their loans until the properties sold. In reality, the applicants were left with unpaid loans that ruined their credit scores.
“Today’s sentence is a strong reminder how serious our courts consider mortgage fraud,” said Madie M. Branch, Acting Special Agent in Charge, Dallas Field office, IRS Criminal Investigation. “IRS Criminal Investigation is committed to ‘following the money trail’ to ensure that those who engage in mortgage fraud are brought to justice.”
As charged in the Information, the scheme focused on seven properties located at: St. George Place in DeSoto, Texas; Golden Pond Drive in Cedar Hill, Texas; Summerfield Court in Fairview, Texas; Tangleglen Drive in Dallas; Roma Court in Allen, Texas; Avondale Drive in Murphy, Texas; and Stephenville Drive in Frisco, Texas.
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 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The case was investigated by IRS Criminal Investigation with assistance from the U.S. Postal Inspection Service and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Assistant U.S. Attorney Walt M. Junker was in charge of the prosecution.
Massachusetts Man Pleads Guilty to Possession of Crack Cocaine with Intent to DistributeRead the Press Release
CONCORD, N.H. – James Murphy, 30, of Massachusetts, entered a guilty plea in the United States District Court for the District of New Hampshire for possessing crack cocaine with intent to distribute, announced United States Attorney John P. Kacavas.
On February 3, 2013, Murphy was pulled over on Interstate 95 near Spaulding, New Hampshire, for driving erratically and disobeying a police officer. A subsequent search of Murphy’s person resulted in the discovery of a substantial amount of crack cocaine, bagged for distribution.
Murphy faces a maximum sentence of forty years in prison and criminal fines of up to $250,000. Murphy will be detained pending sentencing, which is presently scheduled for February 12, 2014.
Murphy’s prosecution arose from a vehicle stop and investigation by the New Hampshire State Police. The case is being prosecuted by Assistant United States Attorney Nick Abramson.
Maryland Man Sentenced to 20 Months in Prison for Robbery and Assault of Woman in Northwest Washington-Victim Suffered A Traumatic Brain Injury in the Attack-Read the Press Release
WASHINGTON – Derius Pierre, 20, of Cheverly, Md., has been sentenced to a 20-month prison term for assaulting a woman during a robbery last year in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced today.
Pierre pled guilty in September 2013, in the Superior Court of the District of Columbia, to charges of aggravated assault and attempted robbery. He was sentenced on Nov. 7, 2013 by the Honorable Robert I. Richter. Upon completion of his prison term, Pierre will be placed on three years of supervised release.
According to the government’s evidence, on May 17, 2012, at about 11 p.m., the victim was walking in the 2200 block of Ontario Road NW when she was struck from behind in the neck. She lost consciousness and fell to the ground, on top of a laptop computer she was carrying. She chipped several teeth and suffered a traumatic brain injury as a result of the fall. Pierre and his accomplice, meanwhile, fled with the victim’s purse, which contained her wallet, sunglasses, keys, Metro card, Blackberry and other items.
An eyewitness, who yelled for police, reported seeing Pierre and a second assailant attack the victim. Pierre was arrested a short time later by officers with the Metropolitan Police Department (MPD). Officers’ recovered the victim’s wallet, with her bank and credit cards, keys, and driver’s license from Pierre’s pocket. The second assailant, a juvenile, also was arrested.
Since the attack, the victim has experienced severe pain, an inability to focus, and difficulty maintaining her attention. It is unknown how long these effects will last.
At his plea hearing, Pierre admitted to aiding and abetting the assault and the robbery.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case from the MPD. He also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Elsa Resendiz and Assistant U.S. Attorney Scott L. Sroka, who investigated and prosecuted the case.
13-385Marshalltown Man Sentenced to Prison on Mail Fraud ChargeRead the Press Release
DES MOINES, IA – United States Attorney Nicholas A. Klinefeldt announced that on November 7, 2013, Michael James Allison, age 48, of Marshalltown, was sentenced to 24 months in federal prison based on his earlier guilty plea to mail fraud in connection with a scheme to defraud his employer through the mailing of fraudulent expense reports for reimbursement. Sentence was imposed by United States District Judge John A. Jarvey. Judge Jarvey also ordered that Allison serve three years of supervised release following his release from federal prison.
Allison also will be required to pay restitution to the victim of his offense. Judge Jarvey will issue an order at a later date, which will set forth the amount of restitution to be paid.
According to the written plea agreement, Allison, while in his position as Chief Financial Officer and Director of Finance of a regional subsidiary of Airgas, Inc., mailed falsified expense reports to the region’s accounting office. Allison categorized personal expenses as business expenses and fabricated expenses on the reports. In one instance, Allison claimed he was entitled to reimbursement for approximately $9,000 for Ryder Cup golf tickets and expenses, when the tickets were for his personal use. Based on the evidence presented at the sentencing hearing, Allison obtained more than $400,000 as a result of his scheme over a period of approximately ten years.
This case was investigated by the Federal Bureau of Investigation, following a referral from Airgas, Inc., and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Married Couple Guilty of Pseudoephedrine ConspriacyRead the Press Release
A man and woman who distributed pseudoephedrine for the use in the manufacture of methamphetamine pled guilty on October 4, 2013, in federal court in Cedar Rapids.
Enrique Manzo, 36, and his wife Jessica Manzo, 31, from Fredericksburg, Iowa, were each convicted of conspiring to distribute pseudoephedrine knowing that the pseudoephedrine would be used in the manufacture of methamphetamine.
At their respective plea hearings, the Manzo’s admitted to agreeing with each other and others, to collect pseudoephedrine and sell or trade the pseudoephedrine to a methamphetamine cook. Testimony at a prior hearing in the case indicated that Enrique and Jessica Manzo purchased pseudoephedrine from pharmacies themselves, but also received pills from other sources. On several occasions, pharmacy surveillance video captured other people buying pseudoephedrine and meeting Enrique or Jessica Manzo in the parking lot to hand them the pills.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Enrique and Jessica Manzo each remain in custody of the United States Marshal pending sentencing. They each face a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, $100 in special assessments, and up to three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Justin Lightfoot and was investigated by the Iowa Division of Narcotics Enforcement and the Northeast Iowa Narcotics Task Force, including law enforcement officials from the Decorah Police Department, West Union Police Department, Postville Police Department, Monona Police Department, Chickasaw County Sheriff’s Office, Fayette County Sheriff’s Office, and Winneshiek County Sheriff’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin /login.pl. The case file number is CR 13-2019.
Manhattan U.S. Attorney Announces Civil Action Seeking Forfeiture of Four Bank Accounts and 47 Cars Tied to Auto Export SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and James T. Hayes, Jr., the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), today announced the filing of a civil complaint seeking the forfeiture of four bank accounts and 47 luxury cars tied to a scheme to purchase new cars for immediate export overseas through a fraud on car dealerships and car insurance companies. The civil forfeiture complaint (the “Complaint”) was filed in Manhattan federal court following the seizure of approximately $3.7 million from the four bank accounts, and the seizure of 20 of the 47 luxury cars, which include BMWs and Mercedes Benzes. The scheme described in the Complaint is alleged to have been carried out by a vehicle broker known as Efans Trading Corporation (“Efans”), which recruited straw buyers to purchase luxury cars that were paid for in full on the date of the sale by cashier’s checks draw on an Efans bank account. The straw buyers, according to the Complaint, did not use, and frequently never even saw, the cars, which were exported by sea immediately after being purchased and netted double or triple their domestic value when sold in overseas markets. The Complaint further alleges that when the cars were purchased, Efans caused materially false statements to be made to the dealerships and insurance companies, in an effort to remove the cars from the dealerships without revealing that they were being purchased for immediate export overseas, rather than for the use of drivers in the United States.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Efans defrauded dealerships, insurance companies, and authorities in its scheme to export luxury automobiles in violation of the law. With this forfeiture complaint, this Office continues its work to protect the markets and consumers from illegal export schemes.”
ICE HSI Special Agent-in-Charge James T. Hayes, Jr. said: “Consumers are the ultimate victims of fraud schemes like the one these perpetrators allegedly carried out. The HSI New York BEST task force brings law enforcement agencies together in New York City to put criminal organizations who seek profit from unlawful cross-border activity out of business.”
According to the allegations in the Complaint:
Automobile manufacturers generally have contractual agreements with their dealerships that new cars made for sale within the United States may not be sold to individuals or companies intending to export the new cars outside the United States. Automobile manufacturers impose this prohibition on exporting new automobiles because unauthorized exports of their new automobiles cause numerous financial problems to the manufacturers by circumventing the manufacturers’ distribution markets, causing market infringement issues, harming franchise dealerships, and complicating the process of vehicle recall registration and service. The contractual agreements between automobile manufacturers and dealerships often carry monetary penalties, commonly called “charge backs,” which automobile manufacturers may assess against dealerships if the manufacturers determine that dealerships are selling new automobiles to purchasers who intend to export them rather than use them in the United States. To avoid the appearance that a car is intended for immediate export, a vehicle broker, such as Efans, will recruit a straw buyer to purchase and title the car. The straw buyers are typically unwitting individuals who receive minimal compensation for their cooperation.
Efans directed the straw buyers it recruited to go to car dealerships and purchase luxury cars, which were paid for in full on the date of the purchase by cashier’s checks drawn on an Efans bank account. The straw buyers purchased the cars, typically without test driving them or negotiating price, and immediately upon the purchase of the cars the straw buyers turned them over to Efans for immediate export from the country. Efans exported the cars from the country, typically to destinations in China, where the cars could be sold for double or triple their domestic value. As part of Efans’ scheme to purchase the cars in this manner, Efans caused materially false statements to be made to the car dealerships concerning the straw buyers’ intended use of the cars. In some cases, for instance, the straw buyer signed a form representing to the dealership that the car would not be exported out of the United States for a period of at least twelve months. Moreover, before the car could leave the dealership, the straw buyer was usually required to show that he or she had purchased insurance for the car. Accordingly, Efans caused an insurance policy for the car to be acquired in the name of the straw buyer, which, typically, was cancelled after the car left the dealership but before any payments were made on the policy. When the insurance policy was acquired, materially false statements were made to the insurance company with respect to the straw buyer’s intended use of the vehicle, for example, that the car would be garaged at the home of the straw buyer, even though the car would never even arrive at the straw buyer’s home. After the cars were purchased and the false statements were made, Efans caused Shippers Export Declarations for the cars to be submitted to U.S. Customs and Border Protection, which furthered the scheme to defraud by concealing the cars’ Vehicle Identification Numbers, thus preventing automobile manufacturers from tracking which cars were leaving the country.
The Complaint seeks the forfeiture of the four bank accounts and the 47 cars on several bases, including that Efans attempted to export the cars from the United States contrary to law, and that the bank accounts were used to facilitate the purchase of, and contain the proceeds of, cars that Efans exported from the United States contrary to law.
Mr. Bharara thanked HSI’s Border Enforcement Security Task Force and the NYPD for their leadership and work on this investigation, which he noted is ongoing. Mr. Bharara also thanked U.S. Customs and Border Protection for its work.
This matter is being handled by the Office’s Asset Forfeiture Unit. Assistant U. S. Attorney Sarah E. Paul is in charge of the case.
Efans Trading Corporation et al. Complaint
Manhattan U.S. Attorney Announces Charges Against Senior South American Counterterrorism Figure for Attempting to Support HezbollahRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Michelle M. Leonhart, the Administrator of the Drug Enforcement Administration (DEA), today announced the unsealing of a Superseding Indictment against DINO BOUTERSE, a citizen of Suriname who held himself out as Commander of that country’s Counter-Terrorism Unit, for attempting to provide material support and resources to Hezbollah, a designated terrorist organization. BOUTERSE and a second defendant (“Defendant-1”) were previously charged with conspiring to import cocaine into the United States, and BOUTERSE was also previously charged with using, carrying, and brandishing a rocket launcher during, and in relation to, the cocaine importation conspiracy. BOUTERSE was arrested in Panama on August 29, 2013, and arrived in the United States on August 30, 2013. The case is assigned to United States District Judge Shira A. Scheindlin.
Manhattan U.S. Attorney Preet Bharara said: “Today we add an additional charge of attempting to support Hezbollah to Dino Bouterse’s alleged crimes connected to a cocaine-smuggling conspiracy. We will be relentless in our efforts, working with our law enforcement partners around the world, to pursue and prosecute those who seek to support terrorist organizations.”
DEA Administrator Michelle M. Leonhart said: “Drug trafficking organizations and terror networks are joined at the hip in many parts of the world. DEA must relentlessly pursue these dangerous individuals and criminal groups that attempt to use drug trafficking profits to fuel and fund terror networks, such as Hezbollah. Alleged criminals like Bouterse and his facilitators pose a direct threat to the safety and security of the United States. Together with our law enforcement partners, DEA is dismantling narco-terror around the world and putting the criminals responsible behind bars where they belong.”
According to the allegations contained in the Indictment unsealed in Manhattan federal court:
In 2013, BOUTERSE used his position to assist individuals he believed were members of Hezbollah. In exchange for a multimillion-dollar pay-off, BOUTERSE agreed to allow large numbers of purported Hezbollah operatives to use Suriname as a permanent base for, among other things, attacks on American targets. In furtherance of his efforts to assist Hezbollah, BOUTERSE supplied a false Surinamese passport for the purpose of making clandestine travel easier, including travel to the United States; began determining which heavy weapons he might provide to Hezbollah; and indicated how Hezbollah operatives, supplied with a Surinamese cover story, might enter the United States.
In June 2013, BOUTERSE and Defendant-1 met in Suriname with DEA confidential sources (the “CSes”), in a local government office. During the meeting, BOUTERSE showed the CSes a rocket launcher and a kilogram of cocaine.
Approximately one month later, BOUTERSE and Defendant-1 worked to provide transportation and security for cocaine being sent through Suriname to the United States. As a test run, BOUTERSE and Defendant-1 sent ten kilograms of cocaine on a commercial flight departing from Suriname. BOUTERSE personally verified the arrangements for the 10-kilogram cocaine shipment in a text message. The cocaine was intercepted by law enforcement officials after it departed Suriname.
In July 2013, BOUTERSE met with one of the CSes to discuss opening Suriname to the CSes’ purported Hezbollah associates.
Later that month, BOUTERSE met in Europe with one of the CSes and with two other men who purported to be associated with Hezbollah. During this meeting, BOUTERSE discussed initially hosting 30 to 60 Hezbollah members in Suriname for training and operations. He also indicated that he wanted a Hezbollah cell in Suriname to, in part, act as a kind of personal armed force. BOUTERSE confirmed his understanding that the purported Hezbollah operatives would operate in South America against American targets, and he agreed to supply Surinamese passports to the operatives—and to assist with their applications for visas to travel from South America into the United States. In addition, in response to a request for surface-to-air missiles and rocket-propelled grenades, BOUTERSE stated that he would need “two months” and that he would provide a list of what he could supply. Finally, at the July 2013 meeting in Europe, BOUTERSE agreed to create a false Surinamese passport for one of the purported Hezbollah operatives, so that BOUTERSE and the Hezbollah operative could travel to Suriname to inspect the facilities that BOUTERSE had agreed to prepare for the Hezbollah contingent.
At a subsequent meeting in August 2013, BOUTERSE delivered a Surinamese passport with false identifying information. As had been discussed at the July 2013 meeting in Europe, one of the purported Hezbollah operatives was to use the fraudulent passport to travel to Suriname. BOUTERSE indicated that everything was ready in Suriname for the arrival of the purported Hezbollah members, and that some “toys,” or weapons, would be available for inspection.
The Indictment charges BOUTERSE in three Counts. Count One charges BOUTESRE with attempting to provide material support to Hezbollah, a designated foreign terrorist organization. Court Two charges BOUTERSE (and also Defendant-1) with conspiring to import cocaine into the United States and to distribute cocaine, knowing and intending that it would be imported to the United States. Count Three charges BOUTERSE with using, carrying, and brandishing firearms and a destructive device – a rocket launcher – during and in relation to the narcotics conspiracy alleged in Count Two.
If convicted, BOUTERSE faces a maximum sentence of 15 years in prison on Count One and a maximum sentence of life in prison on each of Counts Two and Three. Counts Two and Three also carry a total mandatory minimum term of 40 years in prison.
Mr. Bharara praised the outstanding efforts of the Special Operations Division of the DEA. Mr. Bharara also thanked the DEA’s Miami Field Division, Panama City Country Office, Port-of-Spain Country Office, and Bogota Country Office; the Government of the Republic of Panama; and the U.S. Department of Justice’s Office of International Affairs and its National Security Division.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Edward Y. Kim, Michael D. Lockard, and Adam Fee are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Dino Bouterse S2 Indictment
Manchester Man Found Guilty on Federal Child Exploitation ChargesRead the Press Release
CONCORD, N.H. – Robert Joubert, 60, of Manchester, was found guilty on three counts of sexual exploitation of a child, and one count of possession of child pornography following a three-day jury trial in United States District Court for the District of New Hampshire, announced United States Attorney John P. Kacavas.
The investigation began in March of 2012 when the York, Maine, Police Department received an e-mail from a New Hampshire resident warning them that Joubert, a youth baseball coach, had a history of inappropriate contacts with children. At the time, Joubert was instructing at the Seacoast Baseball Academy in York, Maine, after having been previously employed at a baseball academy in Newington, New Hampshire. The ensuing investigation led to interviews with numerous young men who told authorities that Joubert had sexually assaulted them. One man reported being sexually assaulted by Joubert in the 1980s.
A search of Joubert’s property in June of 2012 revealed numerous photographs and videotapes of adolescent boys. One videotape contained film of Joubert sexually molesting a young boy. Evidence at trial revealed that Joubert had been the child’s baseball coach and developed a close friendship with the family of the victim. The victim, now 21, testified that Joubert sexually assaulted him over a two year period. He was unaware that Joubert had filmed the abuse.
United States Attorney John P. Kacavas praised the jury’s verdicts and said, “This defendant is a quintessential predator. He deliberately sought out and insinuated himself into the lives of the most vulnerable young boys, gaining their trust by portraying himself as a coach and father figure. He then betrayed that trust by sexually exploiting those boys to produce child pornography. Identifying, finding, and prosecuting predators like the defendant has been, and will continue to be, among the highest priorities of my office.”
Joubert is scheduled to be sentenced on February 18, 2014 at 10:00 am.
This case was investigated by the Federal Bureau of Investigation, Concord Police Department, The Hillsborough County Attorney’s Office, Manchester Police Department, York, Maine Police Department and was prosecuted by Assistant United States Attorney Helen Fitzgibbon.
Criminal charges related to this investigation are pending against Joubert in Hillsborough and Merrimack Counties.
Leader of Smash-and-Grab Crew Sentenced to 240 Months for Role in $1,000,000 Robbery Spree at High-End StoresRead the Press Release
ALEXANDRIA, Va. – Walter Douglas, 34, of Washington, D.C., was sentenced today to 240 months in prison for his role in a series of smash-and-grab robberies. Douglas and his co-defendants were also ordered to pay $1,251,978.75 in restitution to the victims of these robberies.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police; M. Douglas Scott, Arlington County Chief of Police; and J. Thomas Manger, Montgomery County Chief of Police, made the announcement after sentencing by United States District Judge Leonie M. Brinkema.
Douglas pleaded guilty on August 8, 2013. According to court documents, Douglas was a leader of a smash-and-grab robbery crew that committed over twenty robberies in the Washington, D.C. area and elsewhere. The crew entered various high-end retail establishments as a group, and through force and intimidation, stole merchandise from the stores. Douglas and his crew stole over $1,000,000 in merchandise during the robbery spree from retailers such as Tourneau, Cartier, Saks Fifth Avenue, and Neiman Marcus.
This case was investigated by the FBI and the Fairfax County, Arlington County, Montgomery County, Baltimore County, Richmond, and Upper Merion Police Departments. Assistant United States Attorney Jonathan Fahey and Special Assistant United States Attorney Edward Reilly prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Kodiak Fisherman sentenced for felony violation of the Lacey ActRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a resident of the state of Washington who fishes out of Kodiak was sentenced in federal court in Anchorage for four felony violations of the Lacey Act.
Steven Carr, 54, who resides in Anacortes, Washington, but fished out of Kodiak, Alaska, was sentenced yesterday by U.S. District Court Judge Sharon L. Gleason, to 5 years’ probation.
Carr, at the time of the offense, was the owner and operator of the fishing vessel (F/V) Sea Mac, and caught Rockfish, primarily Pacific Ocean Perch (POP), in one regulatory area that was not available to him, and reported the catch as coming from another area.
According to Assistant U.S. Attorney Bryan Schroder, who prosecuted the case, in July 2008, Carr made 4 trips on the F/V Sea Mac to catch Rockfish. Carr had participated in a special program called the Rockfish Pilot Program (RPP), which was designed to encourage smaller processors to participate in the Rockfish fishery. When the RPP processors were accepting fish, participating fishermen were allowed to catch Rockfish in areas closer to Kodiak, as long as they delivered those fish to participating processors. In July 2008, none of the participating RPP processors were taking Rockfish, so CARR was not authorized to fish in the closed areas. During each of the four trips, Carr fished in the closed areas, but falsely reported to the government that his catch was from an area farther from Kodiak. During the four trips in July 2008, the value of the Rockfish (including POP) caught by CARR was worth approximately $146,000. CARR made three similar trips in July 2007, catching approximately $125,000 of Rockfish (including POP).
“Fisheries laws protect an important natural resource that belongs to all the people of the United States. Enforcement of fisheries laws is necessary to protect those resources for future generations,” stated U.S. Attorney Karen Loeffler.
Ms. Loeffler commends the National Oceanic and Atmospheric Administration, Office of Law Enforcement, Alaska Enforcement Division/Kodiak office, for the investigation of this case.
Jury Finds Georgia Men Guilty of Orchestrating Bank Fraud SchemeRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced today that a federal jury found Anthown Latarius Swan, 28, Orlando Brian Washington, 29, and Lavar Elliot Kittelberger, 33, all of Atlanta, Ga., guilty of operating a counterfeit check scheme that bilked thousands of dollars from business bank accounts in the south-central and southwest Louisiana areas. United States District Judge Patricia Minaldi presided over the trial.The defendants’ trial started Monday and ended today with the jury returning the guilty verdict after deliberating for two and a half hours. According to evidence and testimony presented at the trial, the defendants stayed at Lafayette, La., hotels and would steal from area businesses’ mailboxes looking for commercial checks sent to those businesses and drawn on local banks. They used account information on the original checks to print out counterfeit checks and recruited individuals off the street and from homeless shelters who had valid identification to cash the fake checks. Counterfeit checks were cashed at banks in Lafayette, Broussard, Crowley, Lake Charles and Sulphur. After a search of the group’s hotel room on November 27, 2012, authorities found the 43 original stolen checks worth $155,223 in addition to a computer, printer and blank check paper.
All of the defendants were convicted on the conspiracy to defraud a financial institution and stolen mail counts. Swan and Washington were also convicted of eight counts of fictitious obligations, and Kittleberger was convicted of five counts of fictitious obligations.
The defendants face up to 30 years in prison, a $1 million fine and five years of supervised release. A sentencing date of February 13, 2014 was set.
The fourth co-defendant of the group, Kwame Raphael Cunningham, 22, of Augusta, Ga., pleaded guilty to conspiracy to commit bank fraud and identity theft charges August 22, 2013. His sentencing date is December 5, 2013.
The U.S. Secret Service and the Lafayette Police Department with assistance from the Sulphur Police Department, the Calcasieu Parish Sheriff’s Office and the Louisiana State Police conducted the investigation. Assistant U.S. Attorney Brett L. Grayson and Special Assistant U.S. Attorney Robert C. Abendroth prosecuted the case.
Jefferson City Man Indicted for Attempted Sex Trafficking of a ChildRead the Press Release
Project Safe Childhood
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Jefferson City, Mo., man has been indicted by a federal grand jury for the attempted sex trafficking of a child and for the distribution and possession of child pornography.
Jeremy Ryan Bappert, 29, of Jefferson City, was charged in a three-count indictment returned by a federal grand jury on Thursday, Nov. 7, 2013.
The federal indictment alleges that Bappert attempted to recruit a child under the age of 14 to engage in prostitution between July 2 and July 25, 2013.
Bappert is also charged with one count of distributing child pornography over the Internet and one count of possessing child pornography.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the FBI, the Boone County, Mo., Sheriff’s Department and the Columbia, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Jamesville Man Sentenced for Filing A False Tax ReturnRead the Press Release
SYRACUSE, NEW YORK –LLOYD F. MARTIN, JR., (68, of Jamesville, NY) was sentenced to 3 years probation with 6 months home detention, a $25,000.00 fine and 50 hours of community service for his conviction for filing a false income tax return according to RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York. Prior to the sentencing, MARTIN paid the IRS approximately $388,000.00 in back taxes, penalties and interest.
During entry of his guilty plea, MARTIN admitted that from 2006 through 2008, he was the president of a commercial construction company named Henderson-Johnson Co., Inc., located in Syracuse, New York. During that time, MARTIN realized income of approximately $657,640.57 from Henderson-Johnson over and above the income he reported on his personal federal income tax returns. Specifically, MARTIN received income from Henderson-Johnson in the form of payments toward personal expenses, such as the purchase and maintenance of a jet airplane. MARTIN failed to include $255,645.99 as income on his 2006 personal federal tax return, $241,892.78 as income on his 2007 personal federal tax return, and $160,101.80 as income on his 2008 personal federal tax return. Each of these returns were made and signed by him under penalty of perjury. MARTIN admitted he knew these tax returns were false because each substantially under reported his income and tax liability for that year.
This prosecution resulted from an investigation conducted by the Internal Revenue Service, Criminal Investigations, Syracuse, New York. The case was prosecuted by Assistant United States Attorney Ransom P. Reynolds. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315) 448-0672.
Jacksonville tax return consultant arrested for involvement in stolen identity refund fraud schemeRead the Press Release
Jacksonville, FL – Acting United States Attorney A. Lee Bentley, III announces the return of a fourteen count indictment charging Deangelo Parker with wire fraud and aggravated identity theft. If convicted, he faces a maximum penalty of 20 years in federal prison for each of the seven counts of wire fraud and two years’ maximum imprisonment for each aggravated identity theft offense. Parker made his initial appearance in federal court, in Jacksonville, on Thursday, November 7, 2013 before U.S. Magistrate James R. Klindt. He was released on a $20,000 unsecured bond.
According to the indictment, Parker stole personal identifying information, including the names and social security numbers of multiple individuals who sought the tax consulting services of his company (Certified Tax Consultants). From January 2012 through February 2012, Parker used this information to electronically file numerous fraudulent tax returns. The tax refunds were directly deposited into Certified Tax Consultants’ bank account.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Malisa Chokshi.Helmerich & Payne International Drilling Company Sentenced to $6.4 Million Criminal Penalty for False Writings Related to Well Control TestingRead the Press Release
HELMERICH & PAYNE INTERNATIONAL DRILLING COMPANY (“H&PIDC”), a corporation headquartered in Tulsa, Oklahoma, pleaded guilty today before the Honorable Magistrate Judge Sally Shushan to one count of violating Title 18, United States Code, Section 1018 which charged the drilling company with knowingly making and delivering false writings in connection with the company’s drilling activities in Gulf of Mexico. Pursuant to a plea agreement with the United States Attorney’s Office for the Eastern District of Louisiana, H&PIDC was sentenced today to pay a total monetary penalty of $6.4 million and placed on a three year term of probation during which it must institute and comply with an environmental compliance plan that incorporates increased well control monitoring and enhanced training for all their offshore drilling rig employees.
According to the court documents, from on or about October 14, 2009 until on or about May 27, 2010, H&PIDC owned and operated drilling Rig 206. Rig 206 was contracted by the lessee of a federal mineral lease to conduct oil drilling operations on MC 109 in the Gulf of Mexico. As mandated by federal regulation, Rig 206 was equipped with a safety device known as a blowout preventer system designed to ensure well control and prevent potential release of oil and gas and possible loss of well control. The blowout preventer system consisted of multiple components including a blowout preventer, choke and kill lines, and a choke manifold. The choke manifold was an arrangement of piping and valves designed to direct flow and control pressure from the well. As mandated by federal regulation, the blowout preventer system must be routinely pressure tested, and the entire system must pass the pressure test prior to continuing drilling operations. The requirements for testing the blowout preventer system include conducting pressure tests of the choke manifold valves.
On six occasions from on or about January 1, 2010 until May 27, 2010, five H&PIDC employees had deliberately not tested a number of valves on the choke manifold because they knew or believed that certain valves would leak. H&PIDC employees on Rig 206 deliberately created false blow out preventer test charts and pressure charts by closing manifold valves behind the ones they knew or believed would leak. When inspectors arrived onboard Rig 206 for inspections to include verifying that the blowout preventer system had been properly tested, the crew provided them with the falsified test charts and pressure charts. The former H&PIDC employees falsified the testing records for the benefit of the defendant, H&PIDC, to minimize downtime and costs associated with repairs.
Within 24 hours of notification that an employee on Rig 206 had deliberately falsified choke manifold tests by closing choke manifold valves behind other choke manifold valves that they knew or believed would leak, executives at H&PIDC notified the leaseholder and requested that the leaseholder notify personnel at the agency now known as BSEE that persons on Rig 206 had falsified the choke manifold tests by falsely reporting that every valve on the choke manifold was successfully pressure tested. After an internal investigation, H&PIDC terminated four of the H&PIDC employees who participated in the test falsification and demoted the one H&PIDC employee involved in the falsification who reported the conduct to the company.
Of the 6.4 million dollar criminal penalty, one million dollars is designated to go to the National Academy of Sciences as a community service payment for funding research to identify options to improve and promote offshore industry safety culture. During the three year term of probation, H&PIDC is subject to an environmental compliance plan (“ECP”). The ECP requires that H&PIDC develop and implement training and safety culture programs and requires, inter alia, the company to review their offshore drilling contracts as they relate to downtime and the costs associated with downtime, and implement well control equipment testing improvement solutions such as third party inspections of well control testing on H&PIDC offshore rigs.
The Director of the Bureau of Safety and Environmental Enforcement, Brian Salerno, praised DOJ's actions, stating, "the safety of offshore workers and the environment is dependent on the integrity of the safety and control equipment. Companies need to be on notice that falsification of test results will not be tolerated. "
The case was investigated by the Department of Interior-Office of Inspector General. The case was prosecuted by Assistant United States Attorney Emily K. Greenfield. The U. S. Attorney’s Office would also like to acknowledge the assistance provided by the Bureau of Safety and Environmental Enforcement’s New Orleans District.
Guilty Verdict in Firearms CaseRead the Press Release
SAN JUAN, PR – After a two-hour jury deliberation, yesterday evening, defendants Edwin Otero-Marquez, Isaias Mendoza-Ortega, Rafael Martínez-Trinidad, Edwin Otero-Díaz, Brian Pérez-Torres, Ángel Fernàndez-Orge and José A. De la Cruz-Vàzquez were found guilty for possession of a firearm in a School Zone, and aiding and abetting, announced today United States Attorney Rosa Emilia Rodríguez-Vélez. Defendants Otero-Marquez and Mendoza-Ortega were also found guilty of being felons in possession of firearms and ammunition.
On February 16, 2012, a shootout took place at the Jardines de Oriente Public Housing Project in Humacao, PR, during which two individuals were killed. Puerto Rico Police Department Officers arrived at the scene and observed several individuals run into a sewage tunnel. When the officers arrived at the tunnel, they found the seven defendants, along with various items, including: black gloves, ski masks, winter caps, jackets and seven firearms.
The firearms found were: three Springfield Armory pistols, two Glock pistols, one Smith & Wesson pistol and a revolver; six Glock magazines, one long Glock magazine, one Pro Way magazine, four Springfield Armory magazines, one Smith & Wesson magazine and 10 loose rounds.
“We congratulate the agents who investigated this case, and our attorneys for the successful prosecution of this case,” said Rosa Emilia Rodríguez-Vélez, US Attorney for the District of Puerto Rico.
The case was investigated by the FBI and the Puerto Rico Police Department and prosecuted by Assistant United States Attorneys Cesar S. Rivera-Giraud and Alberto López-Rocafort. Defendants are scheduled to be sentenced in March 2014, and are facing a possible sentence of five years in prison. Otero-Marquez and Mendoza-Ortega are facing up to 15 years in prison.
Gregg County Woman Sentenced for Federal Tax ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas - A 38-year-old Longview, Texas woman has been sentenced to federal prison for tax violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Racyna Antoinette Henry pleaded guilty on May 14, 2013, to aiding and assisting in the preparation of fraudulent tax returns and was sentenced to 24 months in federal prison today by U.S. District Judge Leonard Davis. Henry was also ordered to pay restitution in the amount of $277,364.
According to information presented in court, in 2006, Henry began working out of her home as a tax return preparer with a company known as Preyear’s Tax and Check Cashing Services, LLC, which is based in Alabama. Around October 2007, Henry also managed and operated a company known as Henry’s Tax Service LLC out of her home. At some point in 2006, Henry admits that she began assisting in the preparation of false federal income tax returns. The false items contained false dependents, false child tax credits, false child and dependent care expenses, false losses on farming activities, and false earned income tax credits.
The estimated tax loss related to the false federal income tax returns prepared with assistance from Henry from 2006 to 2010 was between $200,000 and $400,000. Henry must report to the U.S. Marshals Service on or before Jan. 6, 2014 to begin serving her prison sentence.
This case was investigated by the IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Alan R. Jackson.Grand Island Man Convicted of Drug Trafficking Sentenced to 5 YearsRead the Press Release
Noe Loera, 35, from Grand Island, Nebraska, was convicted of distribution of five grams or more of methamphetamine following a jury trial which concluded on August 1, 2013. Today, the Honorable Joseph Bataillon sentenced Loera to 5 years of imprisonment, to be followed by 4 years of supervised release, and was ordered him to pay a $100 special assessment.
The evidence presented at trial showed that a police informant contacted Noe Loera on September 22, 2010, to purchase about a half ounce of methamphetamine. The police then conducted surveillance while the informant met with Noe Loera and Jesus Samaniego at Noe Loera’s home in Grand Island. A transcription and translation of an audio recording of the meeting, prepared by an FBI linguist, provided key evidence of several incriminating statements made by Noe Loera. Jesus Samaniego pled guilty earlier to a related charge.
The case was investigated by Central Nebraska Drug and Safe Streets Task Force. That task force is comprised of the Adams County Sheriff’s Department, Hall County Sheriff’s Department, Buffalo County Sheriff’s Department, Hastings Police Department, Grand Island Police Department, Kearney Police Department, the Nebraska State Patrol, the Department of Homeland Security, and the Federal Bureau of Investigation.
Grain Valley Man Pleads Guilty to Failing to Pay Employment Taxes, Stealing from Small Business ClientsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Grain Valley, Mo., man who previously operated a payroll services company has pleaded guilty in federal court to failing to pay employment taxes on behalf of his clients, and instead stealing those funds for himself.
Geoffrey Scott Carter, 42, of Grain Valley, waived his right to a grand jury and pleaded guilty before U.S. District Judge Howard F. Sachs on Tuesday, Nov. 5, 2013, to a federal information that charges him with five counts of failure to account for and pay over employment taxes.
Carter admitted that he collected $82,580 in employment taxes from five small business clients, which he was supposed to submit to the IRS. Instead, Carter kept the money for his own personal use.
Carter began operating his own business, known as Carter’s Tax Service, in 2001. In the early years, Carter only prepared income tax returns, but starting in 2005 he also began providing payroll services to his small business customers. In 2008 he began only providing payroll services.
The services Carter provided to his clients included preparing and filing Forms 940 and 941 and cutting payroll checks for his clients’ employees. In order to perform these services, Carter was given access to his clients’ bank accounts. To pay his clients’ employment taxes, Carter transferred money from their accounts into his Carter’s Tax Service business bank account, where he commingled the funds, and then submitted the appropriate Forms 940 and 941 to the IRS. He was supposed to submit the payment due along with the Forms 940 and 941.
From 2007 through 2010, Carter deducted and collected from the bank accounts of his clients a total of $82,580 in federal employment taxes, which he failed to pay to the IRS but instead kept and used for personal purposes.
Under federal statutes, Carter is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000 and an order of restitution, on each of the five counts. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Linda Parker Marshall. It was investigated by IRS-Criminal Investigation.
Goodwin Honors Law Enforcement and Victim Support Professionals for Public Service ExcellenceRead the Press Release
State Police Cpl. Marshall Bailey and Tpr. Eric Workman honored posthumously for major drug investigation
CHARLESTON, W.Va. – Law enforcement officers whose investigative work led to the convictions of a former Massey Energy executive, a Logan pill mill operator, an aspiring Hollywood actor who orchestrated a multimillion-dollar extortion plot, and a Michigan pedophile were among the honorees recognized today during the 2013 Law Enforcement and Victim Assistance Awards ceremony. The ceremony, hosted by U.S. Attorney Booth Goodwin, honored more than 60 individuals for outstanding law enforcement work on major cases involving drug crime, violent crime, workplace safety, and child exploitation at the Robert C. Byrd Federal Courthouse in Charleston.
“I am delighted to honor so many of our state’s most dedicated and respected law enforcement officers, crime victim advocates and community leaders,” U.S. Attorney Goodwin said. “These tremendously talented men and women have been engaged in vital work – often painstaking and dangerous work – that has removed drug dealers from our streets, strengthened community and workplace safety, eliminated fraud and abuse and made justice a reality for countless crime victims throughout southern West Virginia.”
Among the honors presented today were posthumous awards to West Virginia State Police Cpl. Marshall Bailey and Tpr. Eric Workman. Troopers Bailey and Workman initiated an investigation of methamphetamine dealer Raymond Hersman, who ran a pipeline that moved huge quantities of meth from North Carolina to West Virginia. In May, a federal jury convicted Hersman, 44, of possession with intent to distribute methamphetamine. Law enforcement agents began investigating Hersman’s meth distribution scheme in 2012. Cpl. Bailey and Tpr. Workman were an integral part of the Hersman investigative team, working on the case until the time of their deaths. Hersman faces a mandatory minimum of 20 years in federal prison when he is sentenced on Dec. 12.
In August of last year, Cpl. Marshall Bailey and Tpr. Eric Workman were shot and killed in the line of duty following a traffic stop near Clay County. Goodwin, who dedicated the awards ceremony to the two fallen officers, said, “This is perhaps the last investigation on which the late Trooper Eric Workman and the late Corporal Marshall Bailey worked. The superb efforts of these heroes paid off with a major drug dealer behind bars.”
Also during Friday’s ceremony, Goodwin presented the Law Enforcement Agency of the Year honor to the West Virginia State Police. Goodwin, who thanked the State Police for its partnership with his office, said, “The West Virginia State Police has one of the strongest and longest-running commitments to public safety in the nation." Goodwin continued, "The members of the State Police do their work with extraordinary pride and purpose, and routinely go above and beyond the call of duty for the citizens of West Virginia.”
In Friday’s ceremony, FBI Special Agent Joseph Ciccarelli received the Exceptional Career Service Award. Ciccarelli, a West Virginia native and a 28-year veteran of the FBI, will retire in January 2014. Ciccarelli is the former Supervisory Senior Resident Agent of the FBI’s Charleston, W.Va. field office. In his FBI career, he has investigated nearly every kind of offense in the FBI’s jurisdiction, ranging from child abductions to public corruption to major drug distribution rings. Ciccarelli’s work has resulted in hundreds of criminal convictions, including, last year, the convictions of a Lincoln County, W.Va. county commissioner, sheriff and county clerk in an election fraud scandal. Recently, Ciccarelli has played a central role in the ongoing federal investigation of public corruption in Mingo County, W.Va. He began his law enforcement career with the Huntington Police Department before joining the FBI. As an FBI Special Agent, Ciccarelli has served in St. Louis, Missouri; Miami, Florida; and Charleston and Huntington, West Virginia.
Federal Bureau of Investigation (FBI) Special Agent James Lafferty was presented with the Law Enforcement Officer of the Year Award. Special Agent Lafferty, an 11-year veteran of the FBI, has investigated a variety of complex criminal cases involving prescription drug traffickers and medical fraud, as well as mining and workplace safety investigations in southern West Virginia.
Agents from the FBI, the U.S. Department of Labor’s Office of Inspector General, and Internal Revenue Service Criminal Investigations were presented with the Outstanding Workplace Safety Investigation award for the investigation of David C. Hughart, the longtime president of a Massey Energy Company subsidiary. Hughart was sentenced in September to three-and-a-half years in federal prison. He was convicted of conspiring to violate federal mine safety laws and thwart federal mine inspectors by warning Massey mines when inspectors were approaching. Hughart is among the highest-ranking executives ever convicted in a mine safety investigation, and his sentence is believed to be the longest ever in a mine safety case.
Agents from the FBI, the U.S. Department of Health and Human Services’ Office of Inspector General, and the West Virginia State Police Bureau of Criminal Investigations were presented with the Outstanding Prescription Drug Diversion Investigation award for the arrest of a Logan doctor responsible for operating a pill mill. Investigators discovered that from September 2011 through March 2013, Dr. Fernando Gonzales-Ramos was operating a cash-only business in Logan where he charged patients $500 in exchange for prescribing them powerful narcotics. Investigators found that Gonzales-Ramos’s makeshift office had no exam table, no running water, and no medical equipment. Dr. Fernando Gonzales-Ramos was sentenced in September to five years and eleven months in prison after pleading guilty to conspiracy to distribute controlled substances without a legitimate medical purpose.
Three federal agents from the FBI and the U.S. Postal Inspection Service were presented with the Outstanding Violent Crime Investigation award for the arrest and conviction of Vivek Shah, an aspiring actor from West Hollywood, California. Last year, 26-year-old Shah orchestrated a multimillion-dollar extortion scheme that targeted seven prominent victims, including movie producer Harvey Weinstein, Groupon co-founder Eric Lefkofsky, West Virginia coal executive Chris Cline, and several others. During the scheme, Shah sent letters threatening to kill family members of his victims unless his targets wired tens of millions of dollars into offshore bank accounts. The case against Shah concluded in September, when he was sentenced to seven years and three months in federal prison.
Also on Friday, a group of nearly 20 police officers from West Virginia and Michigan received the Outstanding Project Safe Childhood Investigation Award for the conviction of Michigan pedophile Ashlee C. Liebert. In late 2011, thirty-four-year-old Liebert, of Whitmore Lake, Michigan, established a relationship with a minor child residing in Putnam County, W.Va. After communicating with the minor using e-mail and a cellphone, Liebert traveled from Michigan to Putnam County, West Virginia to meet the child to have illegal sexual contact. Police officers with the Putnam County Sheriff’s Department discovered Liebert and the minor inside Liebert’s parked vehicle near Buffalo, W.Va. Officers obtained a search warrant for Liebert’s vehicle. A Michigan state search warrant was also executed on Liebert’s Whitmore Lake residence on March 10, 2012, the same day the defendant was arrested by police in West Virginia. During the execution of the search warrant, officers seized several computers from Liebert’s residence. A forensic review of Liebert’s computers revealed more than 600 images and videos of child pornography. Liebert was sentenced in June to 12 years in federal prison followed by 20 years of supervised release for traveling in interstate commerce with intent to engage in illicit sexual conduct with a minor.
Goodwin also presented a group of educators from the Mary C. Snow West Side Elementary School and officers from the Charleston Police Department with the Award for Professional Innovation in Victim Services. The award recognizes their collaborative effort on the West Virginia Defending Childhood Initiative, which helps students who have been exposed to violence. A main component of the pilot initiative is a unique program dubbed “Handle With Care.” When officers encounter a child who has been exposed to violence – either as a direct victim of abuse or neglect, or as a witness to violence in the home or community – a Handle With Care notice is forwarded to the child’s school to alert teachers and school staff. As a result of the initiative, staff members at Mary C. Snow West Side Elementary School, along with their law enforcement partners from the Charleston Police Department, are developing a better understanding of the impact of trauma on learning and how they can work together to support children facing difficulties.
Also on Friday, Goodwin presented the West Virginia Crime Victim Service Award to representatives from Legal Aid of West Virginia and the West Virginia Coalition Against Domestic Violence for advocacy and assistance to victims of domestic violence, sexual assault, stalking and dating violence. The West Virginia Legal Assistance to Victims Partnership, a collaborative effort between Legal Aid of West Virginia and the West Virginia Coalition Against Domestic Violence, provides court based advocacy and legal representation to victims of domestic violence by offering solutions to help break the cycle of violence. Legal Aid and the Coalition Against Domestic Violence have worked to support 14 regional teams of attorneys and advocates providing comprehensive services to help crime victims attain self-sufficiency and independence from abuse.The information provided below lists the award category, along with the name of each individual and/or agency honored Friday:
Outstanding Child Advocacy Center
Child Youth and Advocacy CenterOutstanding Violence Against Women STOP Team
Raleigh County STOP TeamWest Virginia Crime Victim Service Award
Legal Assistance to Victims Partnership: Legal Aid of West Virginia and the West Virginia Coalition Against Domestic ViolenceOutstanding Volunteer Service
Cpl. Errol D. Randle, Charleston Police DepartmentAward for Professional Innovation in Victim Services
West Virginia Defending Childhood Initiative
Mary C. Snow West Side Elementary School & The Charleston Police DepartmentOutstanding Community Partner
Trifecta Productions, LLCOutstanding Criminal Justice Partner
West Virginia Division of Justice and Community ServicesOutstanding Project Safe Childhood Investigation
United States v. Ashlee LiebertPutnam County Sheriff’s Dept.
Sgt. Ryan E. Lockhart
Sgt. Allen Savilla
Det. Shawn Johnson
Dep. R. K. Lyon
Dep. William Seanze, Jr.
Dep. Chad Ashley
Dep. Brian Donohoe
Federal Bureau of Investigation
SA Jason Bollinger
SA J. T. WaggySA Jeff Long
SA Evan Patterson
Melinda CashWest Virginia State Police
David Miller
Cristalle WorkmanNorthfield Township Police Dept.
Inv. Jason Roberts
Officer Richard Paquette
Officer Tim GreeneCAMC Child Advocacy Center
Maureen RunyonOutstanding Workplace Safety Investigation
United States v. David HughartFederal Bureau of Investigation
SA James Lafferty
SA Sherry PayetteU.S. Dept. of Labor, OIG
SA Jeff Carter
Internal Revenue Service, CID
SA Karen AtkinsonOutstanding Violent Crime Investigation
United States v. Vivek ShahFederal Bureau of Investigation
SA Jim Lafferty
SA Brian ClarityU.S. Postal Inspection Service
Postal Insp. Josh MehallOutstanding Medicare Fraud Investigation
United States v. Shida JamieU.S. DHHS, OIG
SA Mary Ann WithrowWest Virginia Medicaid Fraud Control Unit
Federal Bureau of Investigation
SA Jim Lafferty
SA Brian Clarity
Tammi BlundonOutstanding Prescription Drug Diversion Investigation
United States v. Dr. Fernando Gonzales-RamosFederal Bureau of Investigation
SA Jim Lafferty
SA Todd Berry
Dean LaufferU.S. DHHS, OIG
SA Mary Ann Withrow
SA Scott CruikshankWest Virginia State Police, BCI
Cpl. Terry Toney
TFC Jared BrewerOutstanding Drug Investigations (3 investigations receiving awards)
United States v. Raymond Hersman
Charleston Police Dept./MDENT
Lt. Chad Napier
Det. Keven Allen
TFO Chris PowellClay County Prosecuting Attorney
Jim SamplesNorth Wilkesboro Police Department
Ptlm. Monty WolfeWest Virginia State Police
Sgt. James Light
Cpl. Marshall Bailey
Tpr. Charles Maynard
Tpr. Eric WorkmanUnited States v. Alvaro Jaime, et al.
Drug Enforcement Administration
SA Tom Bevins
SA Wren RayHuntington Police Department
Cpl. John Franklin
TFO Curt NethercuttUnited States v. Kevin Robinson and Jermaine Dickerson
Drug Enforcement Administration
SA Tom Bevins
SA Wren RayCharleston Police Dept./MDENT
TFO Chris PowellHuntington Police Department
Capt. Rocky Johnson
Lt. Eric Corder
Lt. John Ellis
TFO Curt Nethercutt
TFO Craig Preece
TFO John Franklin
PFC Paul Matovich
PFC Jamie Leist
Law Enforcement Officer of the Year
Special Agent James Lafferty, FBIDrug & Violent Crime Task Force of the Year
DEA AHIDTA Task ForceLaw Enforcement Agency of the Year
West Virginia State PoliceClick here to listen to an audio sound bite from U.S. Attorney Goodwin
Gang Leader Sentenced to 25 Years in Federal Prison in RICO CaseRead the Press Release
LOS ANGELES -- A Los Angeles man who was the leader of a criminal street gang that used violence and intimidation in an attempt to control the Pueblo del Rio Housing Projects in South Los Angeles was sentenced today to 25 years in federal prison.
Kevin Eleby, who was known on the street as “L,” 49, a longtime leader of the Pueblo Bishop Bloods street gang, was sentenced by United States District Judge S. James Otero. During a 10-year period of supervised release that will follow his prison term, Eleby will be banned from entering the Pueblo del Rio Housing Projects, the veritable headquarters of the gang.
Eleby was convicted in October 2012 of four felony charges: conspiracy to violate the federal Racketeer Influenced and Corrupt Organizations (RICO) ACT; conspiracy to distribute cocaine, crack cocaine and heroin; possession with the intent to distribute crack cocaine; and possession of a firearm in furtherance of a crime of violence.
The gun offense related to a shooting in which members of the gang used a Thompson submachine gun and other weapons to fire more than a dozen rounds into a residence in the projects where a rival gang member lived. Only the mother and 11-year-old brother of the intended victim were home at the time of the attack. Both victims survived, but the family moved out of the projects shortly thereafter. The evidence at trial showed that the shooting followed a gang meeting where Eleby passionately advocated that younger gang members needed to increase their retaliatory violence against rival gangs and drive Hispanic residents out of the projects.
Eleby was one of three defendants convicted following a four-week trial. The jury determined the Eleby and his co-defendants were members of a criminal enterprise that engaged in drug dealing, firearms trafficking, murder, witness intimidation and armed robbery as part of the gang’s efforts to control and terrorize the housing projects. Co-defendant Jason Davis was sentenced by Judge Otero on July 29 to 25 years in federal prison. The third person convicted at that trial -- Rashaad Laws, also known as “Big Time” -- is scheduled to be sentenced on December 9.
As a result of the federal investigation into the Pueblo Bishop Bloods, a total of 45 defendants were charged in federal indictments. Prosecutors have convicted 40 of those defendants, while two defendants are in state custody and two others are fugitives.
The final defendant in this case -- Rondale Young, who is accused of executing a young man with no gang affiliation by shooting the victim in front of the victim’s 2-year-old son, among other racketeering charges -- is scheduled to be tried before Judge Otero on December 3.
This case against members and associates of the Pueblo Bishop Bloods is the result of an investigation by the Los Angeles Metropolitan Task Force on Violent Gangs and other agencies, including, the Federal Bureau of Investigation, the Los Angeles Police Department, the United States Department of Housing and Urban Development - Office of Inspector General, and the Los Angeles County District Attorney’s Office.
Release No. 13-127
Fort Worth Man Sentenced to 192 Months in Federal Prison on Methamphetamine Distribution ConvictionRead the Press Release
DALLAS — Charles Michael Owens, 28, of Fort Worth, Texas, was sentenced by U.S. District Judge Sam A. Lindsay to 192 months (16 years) in federal prison for possessing, with the intent to distribute, methamphetamine, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to plea papers filed in the case, Owens admitted that on June 29, 2012, he knowingly and intentionally possessed, with intent to distribute, 50 grams or more of methamphetamine.
That morning, law enforcement observed Owens as he left his residence on McLemore Avenue in Fort Worth, got into a black Cadillac and drove away. When a deputy with the Tarrant County Sheriff’s Office attempted to initiate a traffic stop because Owens had an outstanding misdemeanor warrant, Owens did not stop. While he also did not stop for a Fort Worth Police officer after running a stop sign, he did tap his brakes and throw something out of the window. He continued to drive and ran another stop sign; he eventually stopped in the 1100 block of North Riverside Drive in Fort Worth.
A narcotics-detecting dog alerted positively to the presence of controlled substances in Owens’s vehicle, and officers found $57,573 in cash in a non-functional 12-volt automotive battery that had been hollowed out. Officers also recovered a plastic bag containing methamphetamine that Owens had thrown from the vehicle, and pursuant to a state search warrant, law enforcement recovered a digital scale and hand-written drug-related notes in his residence.
The case was investigated by HIDTA, the Fort Worth Police Department and the Tarrant County Sheriff’s Office. Assistant U.S. Attorney Mary Walters prosecuted. Assistant U.S. Attorney John de la Garza is handling the forfeiture.
Former Washington Park Trustee and St. Clair County Probation Officer Pleads Guilty to Health Care FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on November 8, 2013, Darron A. Suggs, 39, of Washington Park, Illinois, pled guilty to a one-count indictment charging that he engaged in a scheme to commit health care fraud. Sentencing has been set for March 14, 2014, in United States District Court in East St. Louis, Illinois. At that time, Suggs will face up to 10 years in prison, a fine of up to $250,000, and up to 3 years of supervised release.
During his plea hearing, Suggs admitted that he had submitted false and fraudulent bills in relation to his alleged performance of personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home. Suggs admitted to falsely billing the program between June 30, 2006 and April 16, 2013, when he purportedly rendered personal assistant services to two individuals when he, in fact, did not. Many times Suggs would just contact them by telephone. As a result, Suggs improperly received $64,867.00 in payments for services not performed.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General and the Illinois State Police, Medicaid Fraud Control Bureau. The case is being prosecuted by Assistant United States Attorney William E. Coonan.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General, or you may call 1.800.447.8477.
Former United Medical Center Employee Sentenced to A Year in Prison for Embezzling over $335,000 in Overtime Pay-Defendant Manipulated Electronic Time-Keeping System-Read the Press Release
WASHINGTON – Marlene L. Merchant, 55, of Washington, D.C., was sentenced today to a year and a day in prison on a federal theft charge stemming from her embezzlement of more than $335,000 from her former employer, United Medical Center, announced U.S. Attorney Ronald C. Machen Jr. and Charles J. Willoughby, Inspector General for the District of Columbia.
Merchant pled guilty in August 2013 in the U.S. District Court for the District of Columbia to one count of theft concerning programs receiving federal funds. She was sentenced by the Honorable Reggie B. Walton. Upon completion of her prison term, she will be placed on three years of supervised release. As part of the plea agreement, Merchant agreed to criminal forfeiture and restitution in the amount of $335,663.
According to the government’s evidence, from Oct. 28, 2002, through April 8, 2013, Merchant was employed as an administrative assistant by United Medical Center (UMC) and its predecessor, Greater Southeast Community Hospital. UMC is a non-profit community hospital located in Southeast Washington. As a non-union employee, Merchant was exempted from the overtime pay provisions of the Fair Labor Standards Act. As an “exempt” employee, she was not entitled or eligible to receive overtime pay from UMC, regardless of the number of hours she actually worked.
From January 2005 through March 2013, Merchant and the payroll manager at UMC manipulated UMC’s electronic timekeeping system to cause the hospital to pay the defendant $335,663 in overtime pay to which Merchant knew she was not entitled. In the beginning of the scheme, the payroll manager repeatedly changed Merchant’s status from “exempt” to “non-exempt” in the electronic timekeeping system, resulting in overtime pay. Starting in 2008, Merchant learned the log-in and password of her supervisor, which she then used, without permission, to change her status from “exempt” to “non-exempt” in the electronic timekeeping system. Merchant also changed her start and finish times from what her identification badge logs reflected to increase her work hours.
In announcing the sentence, U.S. Attorney Machen and Inspector General Willoughby commended the investigative work of Special Agent John DiGravio and former Special Agent Anthony McGail of the District of Columbia Office of Inspector General. They also praised the efforts of Paralegal Specialist Corinne Kleinman, Assistant U.S. Attorney Catherine K. Connelly, who worked on forfeiture issues, and Assistant U.S. Attorney David Johnson, who prosecuted the case.
13-386Former School Teacher Sentenced to 14 Years in Prison in $8 Million Food Stamp Fraud CaseRead the Press Release
Federal authorities dismantled an organization that operated 13 phony grocery stores across Georgia which trafficked in Food Stamp and WIC benefits
SAVANNAH, GA: Rashella Reed, 41, a former Atlanta Public School teacher from Riverdale, Georgia, was sentenced on Wednesday by United States District Judge William T. Moore, Jr. to serve 14 years in prison for her role in a massive $8 million fraud upon the Food Stamp and WIC programs. Earlier this year, Reed and 2 others were convicted after a 4-day jury trial of conspiring to defraud the Supplemental Nutrition Assistance Program (SNAP), commonly known as the Food Stamp Program, and the Women, Infant and Children Program (WIC). In addition to her prison sentenced, Reed was ordered to serve 3 years of supervised release upon her release from prison and to pay $8,254,239.46 in restitution.
According to evidence presented during the trial and at Reed’s sentencing, Reed and others conspired to traffic over $8 million in government benefits from the Food Stamp and WIC programs, and to launder the proceeds of their ill-gotten gains. The scheme involved 13 storefronts throughout Georgia, including stores in Savannah, Augusta, Atlanta, Decatur, Macon and Columbus. Reed owned and operated the Decatur, Georgia store known as, “The Baby Spot.” The 13 stores amounted to “pretend” grocery stores, which were used as a front to buy over $8 million in food stamp benefits and WIC vouchers for cash. Food Stamp and WIC recipients were paid anywhere from $.10 to $.60 on the dollar for their benefits; Reed and other conspirators pocketed the rest. The organization was attempting to expand into Alabama and Tennessee when it was dismantled by federal agents investigating the case. A total of 16 defendants were charged with the scheme; 13 pled guilty and 3 were convicted at trial. To date, this case was the largest prosecution of its kind in the State of Georgia.
United States Attorney Edward J. Tarver said, “SNAP and WIC are part of the hunger safety net put in place to provide assistance to eligible, low income individuals and families who qualify. These defendants scammed federal food programs, swindled American taxpayers and literally took food out of the mouths of children. The work of dedicated and hardworking federal agents prevented this scam from spreading further into neighboring states and costing taxpayers many more millions of dollars. This case is an example of the work that federal agents and prosecutors are doing to end fraud in federal programs.”
Karen Citizen-Wilcox, Special Agent-in-Charge of the United States Department of Agriculture, Office of Inspector General said, “This OIG investigation shows how greed attracts individuals at all levels. Ms. Reed was college educated and employed as a teacher. However, she found it necessary to take part in a multi-million dollar fraud scheme that offended the sensibilities of the American taxpayer and deprived needy individuals of nutrition. The jury conviction and 14 year sentence handed down by U.S. District Court Judge Moore serves as an extreme eye opener for individuals who think that such crimes only get a slap on the hand. OIG remains ever committed to such investigations and to working with the DOJ to prosecute individuals consumed by such greed.”
The prosecution of this case arose out of an investigation led by Special Agent Salina Walker of the USDA-OIG. Assistant United States Attorneys James D. Durham and E. Gregory Gilluly prosecuted the case for the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Former Peoria Real Estate Developer to Serve Two Years in Prison for Fraud SchemeRead the Press Release
Springfield, Ill. – Former Peoria, Ill., real estate developer Shara Andrews, now of Mobile, Ala., was sentenced today in Springfield. Andrews, 40, formerly known as Shara Manning, was ordered to serve 24 months in prison and pay restitution in the amount of $598,536 to various real estate buyers and the bank. Andrews was ordered to report to the federal Bureau of Prisons on Jan. 1, 2014, to begin serving her prison sentence. Andrews was also ordered to remain on supervised release for five years following completion of her prison term.
On Feb. 13, 2013, Andrews entered pleas of guilty to a single count each of bank fraud and money laundering. At the time of the fraud, Andrews was the owner and operator of Shara Manning Properties (SMP), a real estate development and construction company based in Peoria.In court documents and statements, Andrews admitted that in November 2004, she purchased, on behalf of her company, a residential development property in Peoria known as the Wyndhill Estates subdivision. To finance the purchase, Andrews obtained a bank loan of $895,000. In March 2005, Andrews obtained a second loan from the bank for $670,000 for development of the subdivision. The two loans were later consolidated into a single loan of approximately $1,453,000, which was secured by the Wyndhill Estates Project real estate.
Andrews’ firm was the developer and general contractor for the project. From August 2006 to January 2009, Andrews sold lots, ranging in price from $80,000 to $300,000, to various real estate buyers and then served as the general contractor for construction of the buyers’ homes. As part of the bank’s loan agreement and to obtain a release of the mortgage from the bank, Andrews was required to make payment to the bank when an individual lot was sold. The release of the mortgage from the bank was also necessary to fulfill Andrew’s obligation to provide clear title to the real estate buyers.
Andrews admitted that she converted money to her personal use and that of her company, rather than repaying the bank as required and ensuring clear title to the buyers. As part of the fraud scheme, Andrews wrote a check, which she knew would bounce due to insufficient funds, to the bank for release of a mortgage, and then converted the proceeds from the lot’s sale to her and her company’s use. Andrews submitted fraudulent lien waivers from subcontractors and suppliers to real estate buyers to cause the buyers to release funds to her. Those funds were then converted to her personal use and to the use of SMP.
The charges were investigated by the Internal Revenue Service Criminal Investigation Division and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Timothy A. Bass.
# # # #Former Onebanc Vice President Indicted for Bank Fraud and Money LaunderingRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; Christopher A. Henry, Special Agent in Charge of the IRS-Criminal Investigation Nashville Field Office; and Christy Romero, Special Inspector General for TARP (SIGTARP) announced that an Indictment charging Matthew Daniel Sweet, age 41, of Timbo, Arkansas, with thirty counts of bank fraud and thirty counts of money laundering was unsealed today. Sweet made his initial appearance before United States Magistrate Judge Joe Volpe. Sweet was released on his own recognizance after his court appearance. The trial was scheduled for December 9, 2013 before United States District Judge J. Leon Holmes.
“The past few years have been financially challenging for individual citizens and institutions alike,” stated Thyer. “Most have made adjustments and found positive solutions to manage their financial health. For those who choose illegal methods, it is one of our highest priorities to prosecute where the facts and the law warrant charges.”
“IRS Criminal Investigation is committed to investigating individuals who use their corporations as personal piggy banks," said SAC Henry. With both law enforcement and financial investigation expertise, our agents are uniquely qualified to assist state and federal law agencies with these types of cases by following the money. We are pleased with the successful resolution of this investigation due to the cooperative efforts of our law enforcement partners.”
“Matthew Sweet, former Vice President and Controller at TARP recipient One Bank & Trust, allegedly abused his position at the bank to steal almost $75,000 to pay his personal credit card bills,” said Special Inspector General Romero. “TARP was designed to provide support to our nation’s banks and financial system during a time of crisis, not to provide a personal bailout for bank insiders to support their spending habits. SIGTARP and our law enforcement partners will not tolerate crime related to TARP and will aggressively investigate allegations of fraud and hold perpetrators accountable for their conduct.”
According to TARP records, One Financial Corporation, the parent company of One Bank and Trust of Little Rock, Arkansas, received $17.3 million in federal taxpayer funds through the U.S. Department of the Treasury Troubled Asset Relief Program (TARP). To date, these funds are still outstanding.
Sweet was the former Vice President and Controller (VP&C) of One Bank & Trust N.A. (Onebanc) until February of 2012. While employed with Onebanc, the indictment alleges that Sweet obtained thirty cashier’s checks from January 2009 to October 2011 by using his position as VP&C to sign cashier’s checks drawn on a Onebanc clearing account. He would then mail the cashier’s checks to his two personal credit cards to pay off the credit card bills. In total, Sweet is alleged to have stolen approximately $74,974.15. When confronted by Onebanc management, Sweet admitted his actions. He was allowed to resign and paid back the amount he had stolen with two cashier’s checks from another bank. One check for $9,662.25 was made payable to Onebanc and one for over $101,003.49 payable to Layton Stuart, former President and CEO of Onebanc.
The maximum sentence for bank fraud is not more than 30 years imprisonment, not more than a $1,000,000 fine and/or not more than five years of supervised release. The maximum sentence for money laundering is not more than 20 years imprisonment, not more than $500,000 fine and/or not more than three years of supervised release.
The case was investigated by the agents from the IRS-Criminal Investigations, SIGTARP, Federal Bureau of Investigation, Federal Reserve, and the FDIC. The case is prosecuted by First Assistant United States Attorney Pat Harris and Assistant United States Attorney Angela Jegley.
The charges set forth in an Indictment are merely allegations. A defendant is presumed innocent until proven guilty.
Former Investment Adviser Sentenced to Ten Years for Fraud and Tax EvasionRead the Press Release
BOSTON – A North Attleboro man was sentenced yesterday on fraud and tax evasion charges arising from his operation of a financial planning service called The Center for Senior Financial Planning.
John A. Picini, 54, was sentenced by U.S. District Court Judge Joseph L. Tauro to 121 months in prison, three years of supervised release, $3.5 million in restitution to his investment clients, and $490,000 in unpaid taxes to the IRS.
Picini targeted senior citizen investors as his clients and persuaded them to cash out annuities for the supposed purpose of investing with Picini. Picini failed to roll these sums over into annuities, as promised, and instead spent a total of $3.5 million of 70 victims’ retirement savings. Picini lulled his victims into believing that their funds were safely invested by producing bogus account statements and also by making periodic payments to his victims with sums that supposedly represented investment earnings, but which were actually sums stolen from other victims.
United States Attorney Carmen M. Ortiz; Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service; and John G. Collins, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The investigation was assisted by the Massachusetts Securities Division and the case was prosecuted by Lori J. Holik of Ortiz’s Economic Crimes Unit.
Former Fugitive Sentenced to 16 Years for Production of Child Pornography and AbscondingRead the Press Release
ALEXANDRIA, Va. – Alex Ernesto Calderon Velasquez, 27, of Reston, Va., was sentenced today to 192 months in prison for production of child pornography and failure to appear in court as required.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Colonel Edwin C. Roessler, Jr., Fairfax County Chief of Police, made the announcement after sentencing by United States District Judge Anthony J. Trenga.
Calderon Velasquez pleaded guilty on July 25, 2013. According to court documents, Calderon Velasquez used his computer to communicate with a 14-year-old girl in Texas, referred to as Minor A. In about September 2012, Calderon Velasquez sexually groomed and then extorted the victim to strip and engage in sexual activity over Skype chats, which Calderon Velasquez recorded and kept on his computer along with other child pornography. Separately, from about September 2011 through about October 2011, Calderon Velasquez persuaded and enticed another 14-year-old female victim, Minor B, in Arizona to engage in sexually explicit conduct for the purposes of producing video recordings, which the defendant then stored on his laptop computer.
Originally, Calderon Velasquez was scheduled to plead guilty to production of child pornography on May 24, 2013. On the morning of his guilty plea hearing, however, Calderon Velasquez absconded. That morning, law enforcement officers discovered his cut-off ankle bracelet in Vienna, Virginia. He was captured later on June 7, 2013, in San Antonio, Texas.
In addition to the term of imprisonment, Judge Trenga imposed 10 years of supervised release, forfeiture of the bond amount of $25,000, and restitution in the amount of $4,890.
This case was investigated by the FBI Washington Field Office’s Child Exploitation Task Force, the Fairfax County Police Department, and the Harris County Constable’s Office in Texas. Assistant United States Attorney Alexander T.H. Nguyen and Jay V. Prabhu prosecuted the case on behalf of the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’'s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Former Doctor at D.C. Jail Sentenced to Five Years in Prison for Sexually Assaulting A Male Inmate in 2008-Defendant Now Serving Prison Time for Similar Charges in Georgia-Read the Press Release
WASHINGTON - Lewis Jackson, 37, of Atlanta, Ga., who formerly did contract work as a medical doctor at the District of Columbia Jail, was sentenced today to a five-year prison term on a felony charge stemming from a sexual assault of an inmate, announced U.S. Attorney Ronald C. Machen Jr.
Jackson, formerly of Washington, D.C., pled guilty in January 2013 in the Superior Court of the District of Columbia to one count of second-degree sexual abuse. He was sentenced by the Honorable Herbert B. Dixon, Jr. Upon completion of his prison term, Jackson will be placed on 10 years of supervised release. He also must register as a sex offender for the rest of his life.
According to the government’s factual proffer at the plea hearing, on Nov. 10, 2008, Jackson was working at the D.C. Jail as a medical doctor. The victim, then an inmate at the jail, was sexually assaulted by Jackson when he went to him for medical care. The victim immediately reported the matter to authorities at the D.C. Jail.
The government secured Jackson’s indictment last year after developing DNA evidence. Within weeks of Jackson’s indictment in the District of Columbia, he was indicted for similar crimes in federal court in Atlanta. In that case, Jackson pled guilty in November 2012 to federal charges stemming from the sexual abuse of three inmates at a federal penitentiary where Jackson had worked as a doctor. Jackson, who worked at the federal penitentiary from January 2011 through July 2012, admitted that he sexually abused the three inmates in October 2011. He has been sentenced to 25 months in prison for those crimes.
In announcing the sentence, U.S. Attorney Machen praised the work of members of the Metropolitan Police Department’s Sexual Assault Unit. He also acknowledged the efforts of Paralegal Specialist Jason Manuel and Victim Advocate Tracey Hawkins. Finally, he commended the work of former Assistant U.S. Attorney Stephanie Brooker, and Assistant U.S. Attorneys Sharon Donovan and Peter V. Taylor, who investigated and prosecuted this case.
13-388Former Delphi Corporation to Pay $23.3 Million to Clean up Polluted Sites in Michigan and OhioRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States, the State of Michigan, and the State of Ohio have settled environmental claims and liabilities asserted against DPH HOLDINGS CORPORATION, formerly known as Delphi Corporation (“Delphi”), and its corporate affiliates (collectively, “DPH”), under the Resource Conservation and Recovery Act, the Comprehensive Environmental Response, Compensation and Liability Act (also known as the Superfund law), and state environmental laws.
U.S. Attorney Preet Bharara stated: “As a result of today’s settlement, Delphi will pay for the clean-up of four sites contaminated with hazardous waste. This settlement demonstrates again that the United States will pursue all available remedies to prevent polluters from escaping their environmental liabilities through the bankruptcy process.”
Under the Settlement Agreement filed today in bankruptcy court in White Plains, DPH will pay approximately $23.1 million in cash for the clean-up of four properties in Michigan and Ohio contaminated with hazardous waste. The remaining approximately $158,000 will be paid to the United States to reimburse the United States Environmental Protection Agency (“EPA”) for prior environmental clean-up work performed at an additional property in Ohio.
In October 2005, Delphi, one of the largest auto parts manufacturers in the world, filed chapter 11 bankruptcy petitions in the United States Bankruptcy Court for the Southern District of New York; Delphi expects to complete its bankruptcy process and dissolve by year-end. The four properties that are the subject of the settlement are among the last assets owned by DPH. Under the settlement, an environmental response trust will be established to take ownership of, and oversee clean-up at, the four properties. The $23.1 million payment by DPH will fund the administrative costs of the trust and the clean-up of the properties.
Three of the four properties are the sites of former auto parts manufacturing plants: the former Delphi Automotive Systems Dort Highway Flint East Plant 400 and Plant 500 in Flint, Michigan, and the former Delphi Saginaw Division Plant 2 in Saginaw, Michigan. Through the settlement, DPH will pay for the clean-up of both soil and groundwater contamination at these sites. The fourth site is an inactive asbestos landfill in Rootstown, Ohio, formerly operating under Delphi’s Packard Electric/Electronic Architecture Division. The funds provided by DPH in the settlement will pay for groundwater monitoring and ensure continued public safety and security at this property.
The Settlement Agreement will be filed with the Bankruptcy Court for a period of 15 days before its entry to provide public notice and to afford members of the public the opportunity to comment on the Settlement Agreement.
This is the second environmental settlement in this bankruptcy. In 2011, the United States recovered more than $857,000 in a settlement of other environmental liabilities in the case.
Mr. Bharara praised the efforts of EPA, the State of Michigan, the State of Ohio, and the Environment and Natural Resources Division of the U.S. Department of Justice in this case.
Assistant United States Attorney Cristy Irvin Phillips is in charge of the case, which has been handled by the Office’s Environmental Protection Unit and Tax and Bankruptcy Unit.
In re DPH Holdings - Settlement Agreement with Exhibit A
Former DMV Employee and Two Others Plead Guilty to Bribery ChargesRead the Press Release
ALEXANDRIA, Va. – Maria Cavallaro, 45, of Springfield, Va., pleaded guilty yesterday to accepting bribes while employed as a DMV employee from 2007 to 2011. Jose Calderon and Noemi Barboza, both 42 and of Sterling, Va., also pleaded guilty to conspiracy charges stemming from the bribery scheme.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement.
According to court documents, from September 2007 to July 2010, Calderon solicited cash payments from illegal aliens in return for helping them secure DMV documents for which they were not eligible. After Calderon collected cash from ineligible applicants, he and Barboza provided Cavallaro a portion of the money to induce her to falsely verify that the ineligible applicants had produced documentation necessary to establish eligibility for issuance of the requested DMV documents. Calderon and Barboza also accompanied ineligible applicants to the DMV Service Center located at the Fair Oaks Mall and directed them to Cavallaro. Together, Calderon and Barboza brought over 100 ineligible applicants to Cavallaro. In exchange for hundreds of dollars per applicant, Cavallaro processed their applications. By falsely verifying that the ineligible applicants had produced the requisite documentation, Cavallaro caused DMV to issue driver’s licenses, learner’s permits, and identification cards to individuals who were not eligible to obtain them.
Cavallaro, Calderon, and Barboza are scheduled to be sentenced on January 31, 2013. Cavallaro faces a maximum penalty of ten years. Calderon and Barboza each face a five-year maximum sentence.
This case was investigated by the Federal Bureau of Investigation with assistance by the Department of Homeland Security, Homeland Security Investigations. Assistant United States Attorney Rebeca H. Bellows is prosecuting the case on behalf of the United States.
Any person who believes they may have information regarding public corruption in the northern Virginia area is encouraged to contact the FBI’s Northern Virginia Public Corruption Hotline at 703-686-6225 or [email protected].
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Former Belen, N.M., Police Department Detective Indicted for Using Excessive Force Against ArresteeRead the Press Release
A federal grand jury in Albuquerque, N.M., has returned a one-count indictment charging former Belen Police Department Detective John Lytle with unlawfully assaulting a victim, identified in the indictment as R.A., during an investigative stop and arrest on March 15, 2012.
Lytle is charged with violating R.A.’s right to be free from unreasonable search and seizure by a law enforcement officer, which includes freedom from the use of excessive force. The indictment alleges that Lytle unlawfully assaulted R.A. by striking R.A. while R.A. was in handcuffs. The indictment also alleges that Lytle’s actions resulted in bodily injury to R.A.
Lytle faces a statutory maximum penalty of 10 years in prison for the civil rights violation.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
This case is being investigated by the Albuquerque Division of the Federal Bureau Investigation. It is being prosecuted by Assistant U.S. Attorney for the District of New Mexico Mark T. Baker and Trial Attorney Julia Gegenheimer of the Civil Rights Division.
Former Belen Police Department Detective Indicted for Using Excessive Force Against ArresteeRead the Press Release
ALBUQUERQUE – A federal grand jury in Albuquerque, N.M., has returned a one-count indictment charging former Belen Police Department Detective John Lytle with unlawfully assaulting a victim identified in the indictment as “R.A.,” during an investigative stop and arrest on March 15, 2012.
Lytle is charged with violating R.A.’s right to be free from unreasonable search and seizure by a law enforcement officer, which includes the right to be free from the use of excessive force. The indictment alleges that Lytle unlawfully assaulted R.A. by striking R.A. while R.A. was in handcuffs. The indictment also alleges that Lytle’s actions resulted in bodily injury to R.A.
Lytle faces a statutory maximum penalty of 10 years in prison for the civil rights violation.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.This case is being investigated by the Albuquerque Division of the FBI. It is being prosecuted by Assistant U.S. Attorney for the District of New Mexico Mark T. Baker and Trial Attorney Julia Gegenheimer of the Civil Rights Division of the Department of Justice.
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Indictment
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Foreign National Sentenced for Role in Large Cocaine ConspiracyRead the Press Release
Victor Manuel Diaz-Lucas, also known as “Victor Raul Cruz-Gutierres,” 31, a citizen of Mexico who most recently resided in Berkeley, MO, was sentenced to 188 months in prison, to be followed by five years of supervised release, on November 8, 2013, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Diaz-Lucas was also ordered to pay a special assessment of $100 and to forfeit $1,500,000 to the United States. In addition, the Court entered a Judicial Order of Removal, which will require that Diaz-Lucas be deported from the United States after his term of imprisonment.
Diaz-Lucas had previously entered a plea of guilty on July 25, 2013, to Conspiracy to Distribute and Possess with the Intent to Distribute Cocaine. Diaz-Lucas was charged on August 22, 2012, in an eleven-count indictment charging a total of ten individuals with being members of a large drug trafficking organization. Diaz-Lucas, was only charged in Count 1.
According to the Stipulation of Facts which was filed with the Court at the time of the Diaz-Lucas’ plea, the organization charged in the Indictment was responsible for importing cocaine from Mexico into the United States, where it was taken to Salt Lake City, Utah. From Salt Lake City, the cocaine was transported by members of the conspiracy to the St. Louis Metropolitan area where it was distributed by various members of the organization, including some who operated within the Southern District of Illinois. Proceeds for the sales of the cocaine were then transported back to the leaders of the conspiracy in Salt Lake City.
Of the nine individuals named in the indictment with Diaz-Lucas, six others have entered pleas of guilty; two others have been arrested and are awaiting trial; one is a fugitive. Four other members of the conspiracy have been charged in separate indictments. The co-defendants not yet convicted are presumed innocent because an indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
Evidence in support of the indictment in this case was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Participating agencies include the Drug Enforcement Administration (DEA), Internal Revenue Service, Criminal Investigations, the U.S. Immigration and Customs Enforcement Office of Homeland Security Investigations (ICE HSI), U.S. Marshal Service, the Granite City Police Department, Fairview Heights Police Department, the Collinsville Police Department, the St. Louis Metropolitan Police Department, the St. Louis County (Missouri) Police Department, the St. Charles County (Missouri) Sheriff's Department, and the Nebraska State Patrol. This case is assigned to Assistant United States Attorney Randy G. Massey for prosecution.
Five More Defendants, Including A Correctional Officer, Plead Guilty to A Racketeering ConspiracyRead the Press Release
Smuggled Drugs and Other Contraband for BGF Gang Members into Baltimore Correctional Facilities
Baltimore, Maryland – Five defendants, all from Baltimore, pleaded guilty this week to their participation in a racketeering conspiracy in which drugs and other contraband were smuggled inside several correctional facilities for members of the Black Guerilla Family (BGF) gang. The following defendants pleaded guilty today: Katrina Laprade, a/k/a Katrina Lyons, age 31, a correctional officer; Kenneth Parham, age 23, a BGF inmate; and
Tyrone Thompson, a/k/a Henry, age 36, a supplier of contraband.Jermaine McFadden, a/k/a Maine, age 24, an inmate, pleaded guilty on November 5th and Teshawn Pinder, age 24, a supplier, pleaded guilty on November 4th.
The guilty pleas were 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; Secretary Gary D. Maynard of the Maryland Department of Public Safety and Correctional Services; Baltimore Police Commissioner Anthony W. Batts; and Baltimore City State’s Attorney Gregg L. Bernstein.According to court documents, BGF has been the dominant gang at the Baltimore City Detention Center (BCDC), and in several connected facilities, including the Baltimore Central Booking Intake Center, the Women’s Detention Center, which houses many men, and in the Jail Industries Building.
Katrina Laprade, a correctional officer at BCDC, admitted that in 2012 and 2013, she helped smuggle contraband, including marijuana and tobacco, into BCDC on behalf of Stephen Loney, a BGF leader.
Kenneth Parham, a BGF member, while in pretrial custody at the BCDC from 2012 to 2013, directed the smuggling of contraband into BCDC, including cell phones, tobacco and drugs, through the services of correctional officers who received payments, gifts or a share of the profits. As a close associate of inmate and BGF leader Tavon White, Parham knew many correctional officers involved in contraband trafficking. Parham also helped conceal contraband from prison officials at BCDC.
Tyrone Thompson admitted that he distributed prescription pills to other co-defendants who then smuggled the pills to inmates at BCDC.
Jermaine McFadden was associated with BGF while incarcerated at BCDC in 2012 and 2013. McFadden arranged with correctional officer Katera Stevenson and another correctional officer to bring Percocets, cell phones, tobacco, marijuana, and other contraband into BCDC. He then sold the contraband to other inmates including members of BGF.
Teshawn Pinder, at the direction of a BGF inmate, picked up controlled substances and other contraband from sources outside the BCDC. Pinder held the items until she could turn them over to a correctional officer recruited by the BGF inmate to smuggle them into BCDC. Pinder also helped pay for the drugs, purchasing “Money Paks” for the BGF inmate and transmitting the numbers to him, or loading them herself onto Green Dot cards. Sometimes, she paid cash to the drug suppliers.
The defendants face a maximum sentence of 20 years in prison for the racketeering conspiracy. U.S. District Judge Ellen L. Hollander scheduled sentencing for Parham, Pinder and Thompson on February 6, 2014, and scheduled sentencing for Laprade and McFadden on March 12, 2014.
In addition to Laprade, seven other CO’s have pleaded guilty to the racketeering enterprise:
Kimberly Dennis, age 26, of Baltimore, Maryland
Jasmin Jones, a/k/a/ J.J., age 24, of Baltimore; Taryn Kirkland, age 23, of Baltimore; Jennifer Owens, a/k/a/ O and J.O., age 31, of Randallstown; Adrena Rice, age 25, of Baltimore; Katera Stevenson, a/k/a KK, age 24, of Baltimore; and
Jasmine Thornton, a/k/a J.T., age 26, of Glen Burnie.Three other co-defendants, inmates Tavon White, age 36, and Steven Loney, age 24, both of Baltimore, and Tyesha Mayo, age 29, of Baltimore, have also pleaded guilty.
The investigation was a result of the efforts of the Maryland Prison Task Force, formed in 2011 with the Maryland Department of Public Safety and Correctional Services, local, state and federal law enforcement agencies, and prosecutors. The Task Force has met regularly for more than two years and generated recommendations to reform prison procedures. The investigation is continuing.U.S. Attorney Rosenstein recognized the efforts of the other members of the Maryland Prison Task Force, including: Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Chief Mark A. Magaw of the Prince George’s County Police Department; United States Marshal Johnny Hughes; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Tom Carr, Director of the Washington-Baltimore High Intensity Drug Trafficking Area; and Dave Engel, Executive Director of the Maryland Coordination and Analysis Center.
United States Attorney Rod J. Rosenstein praised the FBI, Maryland Department of Public Safety and Correctional Services, Baltimore Police Department, and Maryland Prison Task Force, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Ayn B. Ducao, who are prosecuting this Organized Crime Drug Enforcement Task Force case.Exira, Iowa, Resident Sentenced to 30 Months for Possession of A Firearm by A Prohibited PersonRead the Press Release
COUNCIL BLUFFS, IA - On November 7, 2013, Randy Eugene Doss, a 51 year-old resident of Exira, Iowa, was sentenced by United States District Court Chief Judge James E. Gritzner to thirty months in prison for possessing a firearm after a felony conviction, announced United States Attorney Nicholas A. Klinefeldt. Chief Judge Gritzner also ordered Doss to serve two years of supervised release when he completes his imprisonment.
On August 1, 2013, Doss pled guilty to being a convicted felon in possession of a firearm. The charge was the result of a June 12, 2013, search by law enforcement of Doss’ home in Exira, Iowa, in which a loaded .410 shotgun was located by the front door of the residence.
The investigation was conducted by the Council Bluffs, Iowa, Police Department, the United States Marshall Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Erwin Residents Sentenced for Conspiracy to Manufacture MethamphetamineRead the Press Release
GREENEVILLE, Tenn.- Three individuals involved in a conspiracy to manufacture methamphetamine were sentenced on Nov. 6, 2013, by the Honorable J. Ronnie Greer, U.S. District Judge. Timothy Dunbar, 42 of Erwin, Tenn., was sentenced to 84 months prison. Darren Hensley, 27 of Erwin, Tenn., was sentenced to 75 months in prison. Nathaniel Effler, 23, of Erwin, Tenn., was sentenced to 60 months in prison.
Each of these individuals pleaded guilty to a March 2013 federal indictment charging a total of 25 individuals with conspiracy to manufacture methamphetamine. Three additional separate but related conspiracies to manufacture methamphetamine cases from in and around the Erwin area were also recently prosecuted in U.S. District Court, resulting in the conviction of a total of 52 individuals. Sentencing is currently pending for nine of the individuals involved in these conspiracies.
The methamphetamine manufacturing conspiracy that these individuals admitted to being a part of involved a network of overlapping associates that relied on coordinated efforts to procure methamphetamine precursors which they then used to make methamphetamine using a "shake and bake" manufacturing method. The drugs the conspirators were responsible for making were being distributed both for profit and for use by people within the conspiracy.
The indictment and subsequent conviction of these individuals was the result of an ongoing and collaborative investigation conducted by the Unicoi County Sheriff’s Department, Washington County Sheriff’s Department, Erwin Police Department, First Judicial District Drug Task Force, Tennessee Bureau of Investigation, and Drug Enforcement Administration. Assistant U.S. Attorney J. Christian Lampe represented the United States.
Equity Research Analyst Pleads GuiltyIn Manhattan Federal Court to Insider Trading ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that SANDEEP AGGARWAL, a former equity research analyst for a financial services firm located in San Francisco, California (“the Firm”), pled guilty today in Manhattan federal court to charges arising from his involvement in an insider trading scheme. The scheme involved the improper disclosure of material, nonpublic information (“Inside Information”) concerning a strategic partnership in internet search and advertising between Microsoft Corporation and Yahoo! Inc. (the “Partnership”). AGGARWAL was arrested in connection with this scheme on July 29, 2013, and he pled guilty today before U.S. Magistrate Judge Ronald L. Ellis, pursuant to a cooperation agreement.
According to the Superseding Information to which AGGARWAL pled guilty, statements made during today’s guilty plea proceeding and other court documents:
From April 2008 up through March 2010, AGGARWAL was a senior internet analyst at the Firm. The Inside Information concerning the Partnership originated from an executive in Microsoft’s internet search business (the “Microsoft Insider”), who was a friend of AGGARWAL. On various occasions between March 2009 and July 2009, AGGARWAL had discussions with the Microsoft Insider about the likelihood of the Partnership. During this same period, two senior sales executives at the Firm arranged meetings and telephone calls between AGGARWAL and the Firm’s clients. These meetings and calls were for the purpose of facilitating the transmission of information AGGARWAL learned about the status of the Partnership.
For example, on the evening of July 9, 2009, AGGARWAL learned from the Microsoft Insider that discussions about the Partnership had recommenced and that a transaction was likely within the next few weeks. The very next day, on July 10, AGGARWAL provided the Inside Information about the Partnership to the senior sales executives at the Firm, who then arranged for AGGARWAL to provide the Information to representatives of certain hedge fund clients of the Firm. One of the representatives to whom AGGARWAL provided the Information was Richard Lee, then a portfolio manager at S.A.C. Capital Advisors, L.P.
On July 10, 2009, following the conversations AGGARWAL had with hedge fund clients, the portfolios managed by certain portfolio managers of those clients, including Richard Lee, purchased shares of Yahoo securities. Following press reports confirming that a transaction between Microsoft and Yahoo could be announced within one week, the portfolios managed by certain of the portfolio managers, including Richard Lee, sold Yahoo stock and generated substantial profits.
AGGARWAL, 40, of Gurgon, India, pled guilty to one count of conspiracy to commit securities fraud and one count of securities fraud. The conspiracy count carries a maximum sentence of five years in prison and a fine of the greater of $250,000, or twice the gross gain or loss from the offense. The securities fraud count carries a maximum sentence of 20 years in prison and a fine of the greater of $5,000,000, or twice the gross gain or loss from the offense. AGGARWAL will be sentenced on May 15, 2014 before United States District Judge Colleen McMahon.
Richard Lee pled guilty on July 23, 2013, to an Information charging him with one count of conspiracy and one count of securities fraud in connection with insider trading between April 2009 and 2010.
Mr. Bharara praised the investigative work of the FBI. He also thanked the U.S. Securities and Exchange Commission. He also noted that the investigation is continuing.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which U.S. Attorney Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
The case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys John J. O’Donnell and Arlo Devlin-Brown are in charge of the prosecution.