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6 November 2013
Two Hartford Men Charged with Murdering Potential Witness in Federal InvestigationRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the Federal Bureau of Investigation, and Hartford Police Chief James C. Rovella announced that a federal grand jury sitting in Hartford returned a superseding indictment today charging DOMINIQUE MACK, also known as “Lil Sweets,” 23, and KERONN MILLER, also known as “Fresh,” 23, both of Hartford, with the 2010 murder of Ian Francis of Hartford.
According to court documents and statements made in court, on December 21, 2010, Ian Francis was shot multiple times while sitting in his vehicle on Sigourney Street in Hartford. Francis succumbed to his injuries on January 15, 2011.
The superseding indictment alleges that MACK, MILLER and others murdered Francis with the intent to prevent the apprehension and appearance of MACK, who was a fugitive on a federal narcotics warrant, at a federal proceeding, and to prevent Francis and another person from communicating with a federal law enforcement officer or judge about the commission or possible commission of a federal crime, namely, narcotics trafficking. The indictment further alleges that MACK and MILLER conspired with others to commit this offense.
The charges of witness tampering murder and conspiracy to commit witness tampering murder carry a mandatory lifetime term of imprisonment or death, should the government seek the death penalty in this matter.
In addition to the murder charges, MACK is charged with unlawfully possessing a firearm as a convicted felon, an offense that carries a maximum term of imprisonment of 10 years.
MACK is currently in the custody of the federal Bureau of Prisons where he is serving a 37-month sentence for a narcotics offense.
MILLER has been detained since his arrest on a federal warrant on November 7, 2012. He was originally charged by indictment on March 14, 2013.
This indictment followed a joint law enforcement investigation headed by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes and Gang Task Force and the Hartford Police Department’s Major Crimes Division.
Acting U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
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(203) 821-3722 [email protected]Tulsa Man Sentenced to 17 Years in Federal Prison on Child Sex Trafficking ChargesRead the Press Release
TULSA, Okla. — Tarran Arnel Brinson, 24, of Tulsa, was sentenced to 17 years in federal prison today by U.S. District Judge Gregory K. Frizzell for Conspiracy to Engage in Sex Trafficking of Children, Sex Trafficking of Children, Attempted Sex Trafficking of Children, Interstate Travel, and Transportation in Aid of Racketeering, Coercion and Enticement, and Obstruction of Justice, announced U.S. Attorney Danny C. Williams, Sr. for the Northern District of Oklahoma. A Federal jury convicted Brinson on May 28, 2013 after a six-day trial.
“Child sex trafficking is one of the most heinous crimes. We are diligently working with our law enforcement partners to bring those who exploit minors to justice. We must protect the most vulnerable among us, our children.” said U.S. Attorney Williams.
From October 2012 to December 2012, Brinson conspired, attempted, and did, in fact, recruit, entice, transport, provide, and obtain girls under of 18 years of age knowing the teenage girls would be caused to engage in commercial sex acts. The victims were minors recruited by Brinson via Facebook, a social media site, into his commercial sex business. One victim was a 14 year-old when recruited.
The case was investigated by the Tulsa Police Department Vice Unit, the Federal Bureau of Investigation, and the U.S. Immigration and Customs Enforcement, Homeland Security Investigations. The case was prosecuted by U. S. Attorney Danny C. Williams Sr. and Assistant United States Attorneys R. Trent Shores and Clinton J. Johnson from the U.S. Attorney’s Office for the Northern District of Oklahoma.
Tom Beall Appointed First Assistant U.S. AttorneyRead the Press Release
TOPEKA, KAN. – Tom Beall has been appointed First Assistant, U.S. Attorney Barry Grissom said today.
As First Assistant, Beall will be the second in command of the U.S. Attorney’s Office in the District of Kansas, which comprises approximately 50 Assistant U.S. Attorneys and 50 support staff members working in offices in Topeka, Kansas City, Kan., and Wichita.
“I am impressed with Tom’s abilities as well as his management style,” Grissom said. “I believe he will be a good fit for the District.”
Beall joined Grissom’s staff as an Assistant U.S. Attorney in April 2011. A Leavenworth native, Beall served as chief deputy to Kansas Attorney General Steve Six. He previously spent eight years in private practice in Leavenworth and Topeka. He currently is an adjunct instructor at Washburn Law School teaching advanced trial advocacy.
Beall graduated in 2000 from the Washburn University School of Law after earning a master’s degree in public administration from Kansas State University and a bachelor’s degree from Baker University.Timber Lake Woman Sentenced for Misprision of A FelonyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Timber Lake, South Dakota, woman convicted of Misprision of a Felony was sentenced on November 4, 2013, by U.S. District Judge Roberto A. Lange.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. The case was prosecuted by Assistant U.S. Attorney Mikal Hanson.
Stephanie Vandervier, age 28, was sentenced to 18 months of probation, $972.61 in restitution, and a $100 special assessment to the Federal Crime Victims Fund.
Vandervier was indicted by a federal grand jury on February 13, 2013, and pled guilty to a Superseding Information that charged her with Misprision of a Felony on August 19, 2013.
The conviction is the result of a January 6, 2013, late night break-in at the Chatter Box Corner Café and Bar, a downtown business in Timber Lake. Vandervier had knowledge that the burglary was committed and concealed the same from tribal and federal authorities.
Timber Lake Man Sentenced for Assault by Striking, Beating and Wounding and Simple AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Timber Lake, South Dakota, man convicted of Assault by Striking, Beating and Wounding, and Simple Assault was sentenced on October 29, 2013, by U.S. District Judge Roberto A. Lange.
Vincent Archambeault, age 25, was sentenced to18 months in custody, 1 year of supervised release, and a $35 special assessment to the Federal Crime Victims Fund.
Archambeault’s conviction was the result of a June 2013 incident in Timber Lake, when Archambeault had a verbal argument with the two victims that escalated into a physical fight. During the fight, Archambeault bit the two victims. One victim had the end of his finger bitten off and the second victim sustained a bite wound on her arm.
The Cheyenne River Sioux Tribe Law Enforcement Division conducted the investigation. The case was prosecuted by Assistant U.S. Attorney Mikal Hanson.
Archambeault was remanded to the custody of the U.S. Marshals Service to begin serving his sentence.
Three Sentenced for Conspiracy, Insider Trading and Tax EvasionRead the Press Release
ATLANTA – Douglas Ballard, Guy Mitchell and Joseph Todd Foster have been sentenced for their roles in a conspiracy to commit bribery and bank fraud, insider trading and tax evasion that occurred at the now-failed Integrity Bank.
“Our nation’s financial crisis was fueled in part by bank insiders and major borrowers whose greed led them to break the law,” said United States Attorney Sally Quillian Yates. “The conduct of these defendants, two of whom once held prominent positions in banking, helped pave a path to the shocking number of bank failures Georgia has experienced in the last ten years.”Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “The magnitude and impact of this financial institution based fraud case clearly illustrates why these types of criminal investigations are a priority matter at the FBI. We will continue to work with our various investigative partners to identify, investigate, and present for prosecution those individuals who betray their positions of trust within these institutions for the sake of personal greed.”
“The sentence today does not replace the losses that were incurred due to this scheme,” stated Veronica F. Hyman-Pillot, Special Agent in Charge with IRS Criminal Investigation. “However, today’s sentence is a message to others that regardless of who you are, there are consequences for committing these types of crimes.”
“The FDIC OIG is pleased to join the U.S. Attorney’s Office and our law enforcement colleagues in announcing the sentencing of individuals whose criminal actions caused serious harm to Integrity Bank,” said Fred W. Gibson, Jr., Acting Inspector General, Federal Deposit Insurance Corporation. “It is particularly troubling to the FDIC OIG when a bank insider like Mr. Ballard, who is entrusted with operating the bank in a safe and sound manner, violates that trust and engages in activities that contribute to losses to the Deposit Insurance Fund. Mr. Mitchell’s sentencing should deter others who face similar opportunities to conspire with bank insiders in such criminal behavior. Today’s sentencing confirms that those who undermine the integrity of the financial system will be brought to justice and held accountable for their crimes.”
According to United States Attorney Yates, the charges and other information presented in court: Ballard, a former Executive Vice-President at the now-failed Integrity Bank, formerly headquartered in Alpharetta, Ga., received more than $200,000 in cash bribes from Mitchell, the bank’s largest borrower. At the same time in 2006, when Ballard was being bribed, he allowed Mitchell to draw more than $7 million from a loan that was supposed to be used for renovation and construction at the Casa Madrona Hotel in Sausalito, Calif., despite the fact that no renovation or construction work was done. Instead, Mitchell used the money to buy an island in the Bahamas, travel by private jet, purchase Miami Heat basketball tickets, buy fancy jewelry and expensive cars, and a mansion in Coconut Grove, Fla.
Mitchell received $20 million in additional business loans from Integrity Bank after the Casa Madrona loan proceeds were exhausted, and he continued to use some of that money for impermissible, personal expenses. Mitchell defaulted on the loans and Integrity Bank eventually failed.
Foster was Integrity Bank’s Vice President in charge of Risk Management. He sold nearly all of his Integrity stock in August of 2006 based on materially adverse information about the company that was not available to the public. Specifically, Foster knew that the bank was in an increasingly precarious position because of Mitchell’s financial difficulties and pending default.
Ballard, Mitchell, and Foster were sentenced by United States District Judge Julie Carnes.
Douglas Ballard, 44, was sentenced to serve two years and six months in federal prison, to be followed by three years of supervised release. He was ordered to pay restitution in the amount of $1,000,000, and a special assessment of $200. Ballard pled guilty to conspiracy to commit bank fraud and bribery, and income tax evasion, on July 6, 2010.
Guy Mitchell, 54, of Miami, Fla., was sentenced to five years in prison, to be followed by three years of supervised release. He was ordered to pay restitution in the amount of $5,661,650, a fine of $250,000, and a special assessment of $100. Mitchell pled guilty to conspiring to commit bank fraud and bribery on July 1, 2013.
Joseph Todd Foster, 46, of Blakely, Ga., was sentenced to three years of probation, and 120 hours of community service. He was also ordered to pay a $100 special assessment. Foster pled guilty to securities fraud on July 6, 2010.
This case was investigated by Special Agents of the Federal Bureau of Investigation, the Federal Deposit Insurance Corporation Office of Inspector General, and the Internal Revenue Service.
Assistant United States Attorneys Douglas W. Gilfillan and Christopher C. Bly prosecuted the case.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Three Area Woman Charged Separately for Stealing Unemployment Compensation BenefitsRead the Press Release
PITTSBURGH - Three Allegheny County residents have been indicted by a federal grand jury in Pittsburgh, on charges of theft of government money and making false statements to obtain unemployment compensation for federal service, United States Attorney David J. Hickton announced today.
Each of the three defendants was indicted separately. A three-count indictment named Jennifer Lang, 39, of Pittsburgh, Pa.; Sandra Delval, 39, of Carnegie, Pa.; and Sharday Thornhill, 27, of Turtle Creek, Pa.
According to the indictments presented to the court, each defendant converted to her own use unemployment compensation benefit payments, benefits of which she knew she was not entitled.
The law provides for a maximum total sentence of 12 years in prison, a fine of $450,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Koleen Kirkwood is prosecuting this case on behalf of the government.
The Inspector General for Tax Administration, Debt Management Section conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
St. Michael Woman Sentenced for Causing the Death of a ChildRead the Press Release
FARGO – U.S. Attorney Timothy Q. Purdon announced that on Nov. 6, 2013, Hope Louise Tomahawk Whiteshield, 32, of St. Michael, N.D., was sentenced before U.S. District Judge Ralph R. Erickson on one charge of felony child abuse, which caused the death of a young child, and one charge of witness tampering.
Judge Erickson sentenced Whiteshield to the maximum sentence of 20 years’ imprisonment on the felony child abuse charge. He also sentenced Whiteshield to 10 years’ imprisonment on the witness tampering charge. The sentences are to run consecutively and are to be followed by three years of supervised release. Whiteshield was also ordered to pay restitution in the amount of $6,952.54, and to pay a $200 special assessment to the crime victims fund.
United States Attorney Timothy Purdon said, “The 30 year sentence imposed today cannot undue this horrible situation. It does however, provide some measure of justice to the victim and her family. I am extremely proud of our law enforcement partners at the FBI and the BIA Office of Justice Services and of the Assistant United States Attorneys in this office whose investigation of this tragic incident led to a quick and correct identification of the perpetrator here and to the swift and just resolution of these charges.”
On May 7, 2013, Hope Whiteshield’s husband, Freeman Whiteshield, gained custody of his two-year-old twin granddaughters who had been previously living in a foster home in Bismarck, ND.
On June 12, 2013, Hope Whiteshield was outdoors at her residence with her three children, a niece and nephew, and the twin girls. The children observed Whiteshield push one of the twins (M.W.) down an embankment leading into a ditch area between her yard and the road. The girl landed on her back, got up and began to cry. Whiteshield then picked up the other twin girl (L.W.) under the arms and threw her down the embankment into the ditch area. After the fall, L.W. was breathing, but unresponsive.
The child was carried into the residence where Whiteshield bathed the girl, put pajamas on her and put her to bed alongside her twin sister, M.W. During all this time, the child remained unresponsive.
Whiteshield did not seek medical attention for the child and instructed the other children not to tell anybody what had happened to the girl. The following morning, Whiteshield went in to wake up the child and found her “cold and blue.”
During a subsequent interview with law enforcement, Whiteshield said she intentionally threw the child down the embankment because she was depressed about having to care for the kids all the time.
The case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs.
Assistant U.S. Attorneys Janice M. Morley and Megan A. Healy prosecuted the case.
Spokane Valley Methamphetamine Dealer Sentenced to 25 Years in Federal PrisonRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Ian Michael Harris, age 41, of Spokane Valley, Washington was sentenced, after having previously pleaded guilty on August 5, 2013 to Conspiracy to Possess With Intent to Distribute 50 Grams or More of Pure (Actual) Methamphetamine, and Possession with Intent to Distribute 50 Grams or More of Pure (Actual) Methamphetamine. Senior United States District Court Judge Justin L. Quackenbush sentenced Harris to a twenty-five year term of imprisonment, to be followed by a ten-year term of court supervision, after he is released from federal prison.
According to information disclosed during the court proceedings, in 2012, the North Idaho Violent Crimes Task Force ("NIVCTF") began an investigation into Harris' methamphetamine trafficking organization. The investigation revealed that Harris was a multi-pound distributor of methamphetamine in the Eastern District of Washington, as well as in the District of Idaho. Harris would make a trip to the Tri-Cities area about every 10 days to obtain methamphetamine, which he would bring to the Spokane area and distribute in large quantities to individuals he knew would re-sell the drugs in Washington and Idaho. Immediately after one trip to the Tri-Cities, Harris was observed with approximately 8-10 pounds of methamphetamine.
On April 2, 2013, the NIVCTF obtained a search warrant for Harris' shop on Dishman Road in Spokane Valley, Washington. The search warrant was executed following a reported shooting at that location. The search of the shop revealed over 1,600 rounds of various caliber ammunition hidden in a secret room, as well as firearms and a small amount of methamphetamine. A search warrant was also obtained for Harris' Chevrolet Camaro. The search of the Camaro revealed four firearms and ammunition, as well as explosives. During the investigation, the NIVCTF also located approximately 3 pounds of methamphetamine and several loaded handguns in motorcycle saddle bags in the master bedroom of Harris' residence.
Michael C. Ormsby said, "The 25 year sentence imposed in this case reflects the serious impact that methamphetamine has on communities. Methamphetamine is a dangerous drug and this Office, in partnership with state, local and Federal law enforcement officers, is committed to aggressively prosecute methamphetamine traffickers and to seek appropriate punishment, as was done in this case. Distribution of methamphetamine in the Eastern District of Washington and in the surrounding areas will not be tolerated."
This case was investigated by the North Idaho Violent Crimes Task Force, which is comprised of law enforcement offices with the Federal Bureau of Investigation, the Idaho State Police, Kootenai County Sheriff's Office, Bonner County Sherriff's Office, Coeur d'Alene Police Department, Post Falls Police Department, and Coeur d'Alene Tribal Police. This case was prosecuted by Caitlin A. Baunsgard, an Assistant United States Attorney for the Eastern District of Washington.
13-0053-JLQ
Smith County Man Sentenced for Stealing Government PropertyRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 34-year-old Tyler, Texas man has been sentenced for stealing government property in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Raymond Kyle Welsh pleaded guilty on Jan. 3, 2013, to theft of government property and was sentenced to three years of probation today by U.S. District Judge Leonard E. Davis. Welsh was also ordered to pay restitution in the amount of $222,162.14 and ordered to submit to the forfeiture of $26,588.
According to information presented in court, from January 2003 to September 2010, Welsh concealed and failed to disclose his financial resources and income in order to receive Social Security and Medicaid benefits. Welsh stole approximately $26,588.00 from the Social Security Administration in the form of Social Security Supplemental Income (SSI) payments and $195,574.14 from the Department of Health and Human Services in the form of Medicaid benefits. Welsh admitted that he knew he was not entitled to the benefits and that they belonged to the United States government.
This case was investigated by the Social Security Administration and prosecuted by Assistant U.S. Attorney Mary Ann Cozby.
Smith County Man Sentenced for Child Pornography ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 45-year-old Flint, Texas, man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Barry Porter Griffith pleaded guilty today to possession of child pornography and was then sentenced to 42 months in federal prison by U.S. District Judge Leonard Davis.According to information presented in court, on Oct. 31, 2012, Texas Department of Criminal Justice network engineers detected significant Internet bandwidth being used by a state-owned computer to view pornography online. The engineers identified the user as Griffith, a state parole officer. They remotely viewed the web-sites that Griffith was accessing and determined that he was viewing child pornography from his office. When approached by investigators from the Office of the Inspector General for the Texas Department of Criminal Justice, Griffith admitted to the conduct. He later met investigators at his residence, and surrendered two personal computers. Forensic examination of the computers confirmed that they contained images depicting child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov .
This case was investigated by the U.S. Secret Service, the Office of the Inspector General for the Texas Department of Criminal Justice, the Texas Department of Public Safety, and the Longview Police Department. The case was prosecuted by Assistant U.S. Attorney Frank Coan.
Sioux Falls Woman Sentenced for Bank EmbezzlementRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota, woman convicted of Embezzlement of Bank Funds was sentenced on November 4, 2013, by U.S. District Judge Lawrence L. Piersol.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Ann M. Hendrickson prosecuted the case.
Andrea Schwartz, age 23, was sentenced to time served and 2 years of supervised release, to include 50 hours of community service. She was also fined $500 and ordered to make restitution of $7,720.
Schwartz was indicted for the above charge by a federal grand jury on May 8, 2013. She pled guilty to the offense on August 12, 2013.
The conviction stems from incidents that took place when Schwartz was employed as a teller at Home Federal Bank in Sioux Falls. Schwartz made several withdrawals from customers’ accounts under the pretense that the customers called her on the telephone, authorized withdrawals from their accounts, and told her another person would come to the bank to pick up the cash.Second Member of Altamont Global Partners Pleads Guilty to $16 Million Investment FraudRead the Press Release
Orlando, Florida – Acting United States Attorney A. Lee Bentley, III announces that Philip Leon (68, Altamonte Springs) today pleaded guilty to conspiracy to commit mail fraud and wire fraud. He faces a maximum penalty of 20 years in federal prison. Leon has also agreed to forfeit over $4 million in artwork and monies that are being held in various bank and trading accounts. These proceeds will be returned to the victims as partial payment towards the expected restitution in the case of over $16 million. Sentencing has been set for January 23, 2014.
According to court documents, Altamont Global Partners, L.L.C owned or managed a series of investment funds. Leon registered Altamont Global with the Florida Secretary of State in March 2009 and was a managing member of the company.
The Matterhorn Fund, LLC was the first fund for which investors were solicited by Altamont Global. Leon served as the Fund Manager for the Matterhorn Fund. To induce individuals to invest, Leon and others falsely represented that the Matterhorn Fund had a long history of making profits, that Leon was a graduate of Stanford University, that he worked for Salomon Brothers as an institutional investment advisor, and that he had successfully traded worldwide investment vehicles for over three decades. None of those representations were true.
In the first quarter of 2010, the Matterhorn Fund experienced significant trading losses. Rather than accurately reflect those losses on the quarterly statements, Leon falsified the quarterly statements and the claim that the Matterhorn Fund was earning an above-market rate of return.
The false rates of returns that were claimed for the Matterhorn Fund were then used to induce individuals to invest in the McKinley Fund. The McKinley Fund also lost money, and Leon again falsified quarterly statements for that fund. Leon and others then used their alleged performance with the Matterhorn Fund and the McKinley Fund to solicit investments in two other funds: Midas Management Partners LLC and Binary Strategy One Fund, LLC. In total, over 200 individuals invested more than $16 million in the four funds owned or managed by Altamont Global.
In June 2012, the National Futures Association (NFA) conducted a surprise examination of Altamont Global. During that examination, the NFA discovered that the quarterly statements were being falsified to hide losses and that the net asset values of the Matterhorn Fund and the McKinley Fund were being inflated, to make it appear that trading had been successful. On July 16, 2012, the U.S. Commodity Futures Trading Commission filed a complaint against Leon and others. That same day, the District Court entered an emergency order freezing the assets of the defendants in that civil case.
Leon is the second individual to be charged and plead guilty in this case. On August 22, 2013, one of Leon’s partners (John G. Wilkins, 63, of Chuluota, Florida) pleaded guilty to conspiracy to commit mail fraud and wire fraud. Wilkins’ sentencing is set for November 21, 2013.
These cases were investigated by the United States Secret Service and the State of Florida, Office of Financial Regulation. They are being prosecuted by Assistant United States Attorney Roger B. Handberg.
Schuylkill County Man Sentenced to Prison for Oxycontin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 43-year-old Tamaqua, Pennsylvania resident was sentenced to nearly seven months in prison today by Senior U.S. District Court Judge Edwin M. Kosik for his role in an Oxycontin trafficking conspiracy that operated in Schuylkill and Berks County in 2011.
According to United States Attorney Peter J. Smith, Michael Beaver previously admitted to conspiring with at least two others to unlawfully distribute 80mg Oxycontin pills.
Beaver was indicted by a federal grand jury in April 2011, as a result of an investigation by the Drug Enforcement Administration and the Pennsylvania State Police. He pleaded guilty in October 2011.
Judge Kosik also ordered Beaver to pay a $300 fine and a $100 special assessment. Beaver was placed on supervised release for three years, including six months on home confinement with electronic monitoring.
Two of Beaver’s co-defendants previously entered guilty pleas in the case. Richard Law was sentenced to 15 months in prison. Stephen Nesspor was sentenced to one year in prison.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
School Proctor and Admissions Officer Plead Guilty in Student Financial Aid Fraud SchemeRead the Press Release
Three Defendants Convicted to Date for Changing Test Scores to Qualify Students for Federal Grants
Baltimore and Greenbelt, Maryland – Jacqualyn Sue Caldwell, age 55, of Baltimore, and Jesse Raymond Moore, Sr., age 30, of Crofton, Maryland, pleaded guilty today to conspiring to defraud a student financial aid program.
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; and Steven Anderson, Special Agent in Charge of the U.S. Department of Education, Office of Inspector General Mid-Atlantic Regional Office.“Students without high school diplomas who applied for financial aid to attend trade schools were required to pass the Ability to Benefit test and demonstrate their aptitude to complete the educational program and work in the field,” said U.S. Attorney Rod J. Rosenstein. “By cheating, the defendants defeated the purpose of the tests and defrauded the government.”
Caldwell was a test administrator for a company that offered cognitive tests to schools and businesses. During her employment, Caldwell worked almost exclusively as a test proctor for student admissions at the All-State Career School, a for-profit trade school located on Broening Highway in Baltimore. Moore worked as an admissions representative for All-State. Moore was paid a salary and was eligible for performance-based raises and commissions for each student that graduated.
Students who applied for federal financial aid at All-State were required to have a high school diploma, possess a GED, or pass a designated Ability to Benefit (ATB) test. Caldwell was certified to administer the ATB test onsite at All-State’s campus. Her duties did not include scoring the tests; rather, she was to collect the students’ answer sheets, seal them in an envelope and mail them to her company employer’s headquarters in Illinois, where they were scored and the results sent back to All-State. The ATB test used a Scan Tron answer sheet that required students to use pencils to fill in circles next to the correct answers. Student applicants who failed the ATB test the first time could take it again.
According to Caldwell’s plea agreement, soon after starting her job as a test proctor at All-State in 2008, an All-State admissions representative asked Caldwell for an applicant’s answer sheet so that the representative could change some of the applicant’s answers to allow the applicant to pass the test. Caldwell agreed. Caldwell allowed the representative access to the answer sheet by not sealing the envelope containing the applicants’ answer sheets and leaving the envelope on the receptionist’s desk. After the admissions representative corrected the applicant’s wrong answers, the representative put the answer sheet back into the envelope, sealed it and left it to be mailed. Thereafter, this process was repeated by the representative for other applicants. Caldwell also agreed to employ the same process for a second representative.
Subsequently, the second representative suggested a different method to change the answers on the ATB test which Caldwell agreed to do. The representative gave Caldwell a completed Scan Tron answer sheet which allowed Caldwell to erase and change just enough incorrect answers to provide a passing grade. The representative told Caldwell which student applicants were taking the test for a second time, so that Caldwell could correct their answer sheets.
Although the first two representatives agreed not to tell anyone that Caldwell was changing test scores for their student applicants, a third admissions representative asked Caldwell to change scores on answer sheets, which Caldwell agreed to do. Thereafter, Caldwell was continuously approached in the hallways by the three admissions representatives about “helping” a student pass the ATB test on the second try, and Caldwell agreed to do it every time.
According to Moore’s plea agreement, Moore learned through another admissions representative that Caldwell could ensure that students who failed the ATB the first time would pass it the second time. Between January and December 2011, Caldwell agreed to Moore’s requests to help prospective students pass the test the second time.
Additionally, All-State admissions representative Barry Sugarman, age 63, of Owings Mills, pleaded guilty on March 13, 2013 to the conspiracy. Sugarman admitted that he also asked Caldwell to manipulate the test results to give applicants taking the test a second time a passing score, which she did. Sugarman also told prospective students to understate their income from previous years when they applied for federal aid in order to qualify for the maximum amount of Pell grants and student loans.
During her tenure at All-State from 2008 to December 2011, Caldwell changed the answer sheets for approximately 170 students. Approximately 102 of them went on to enroll at All-State and became eligible to receive federal financial aid in the form of Pell Grants and student loans. Approximately 72 of those students received financial aid totaling approximately $572,255.
Caldwell, who pleaded guilty to a felony, faces a maximum sentence of five years in prison and a fine of $250,000 or not more than the greater of twice the pecuniary loss or gain from the fraud. Moore and Sugarman, who each pleaded guilty to a misdemeanor, face a maximum sentence of one year in prison. U.S. District Judge George L. Russell, III scheduled sentencing for Caldwell in federal court in Baltimore on February 14, 2014 at 9:30 a.m. U.S. Magistrate Judge Timothy J. Sullivan scheduled sentencing for Sugarman and Moore in federal court in Greenbelt on December 18, 2013 and January 28, 2014, respectively.
United States Attorney Rod J. Rosenstein praised the FBI and Department of Education, Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Martin Clarke, who is prosecuting the cases.Rosebud Man Charged and Sentenced for Theft of Governement PropertyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, man convicted of Theft of Government Property has pled guilty to the charge and was sentenced on November 4, 2013, by U.S. Magistrate Judge Mark A. Moreno.
Christopher Menard, age 39, was ordered to pay a $350 fine, $150.08 in restitution, and $25 to the Federal Crime Victims Fund.
The conviction stems from incidents that occurred on three separate occasions between December 3, 2012, and January 19, 2013, when Menard used gas cards that belonged to the Bureau of Indian Affairs Fire Management Office to steal gas money, which he put into his own personal vehicle.
The investigation was conducted by the U.S. Department of Interior – Office of Inspector General. The case was prosecuted by Assistant U.S. Attorney Tim Maher.
Rochester Man, A Registered Sex Offender, Convicted of Attempted Sexual Enticement of A Minor and Attempted Production of Child PornographyRead the Press Release
BINGHAMTON, NEW YORK – On October 10, 2013, a federal jury in Binghamton found JOHN LAWRENCE DOOLEY, 56, of Rochester, New York, guilty of (1) attempted enticement of a minor to engage in sexual activity, (2) attempted production of child pornography, and (3) committing a felony offense involving a minor while already required to register as a sex offender, announced United States Attorney Richard S. Hartunian, Andrew W. Vale, Special Agent-in-Charge, Federal Bureau of Investigation, Albany Division, and Gregory Veitch, Chief, Saratoga Springs Police Department. DOOLEY faces at least 45 years and up to life imprisonment, a term of supervised release of at least five years and up to lifetime supervision, and a maximum fine of $500,000. DOOLEY is scheduled to be sentenced on February 10, 2014, before the Honorable Thomas J. McAvoy, Senior United States District Judge, in Albany, New York.
DOOLEY, a registered Level III sex offender, was arrested on May 11, 2012 in Saratoga Springs, New York, after he travelled there to meet “Kara,” a fifteen year old girl he met in a Yahoo! chat room. DOOLEY had been communicating with “Kara” for one and one-half months via Yahoo! Messenger. In reality, “Kara” was an undercover Saratoga Springs Police Investigator. During the online communications, the undercover investigator repeatedly told DOOLEY that “Kara’s” age was 15. DOOLEY told “Kara” that he would travel to Saratoga Springs, rent a motel room, have sex with her in the motel room, and capture that sexual conduct on digital photo and video. On May 11, 2012, Dooley drove from Rochester to Saratoga Springs, checked into his motel room, and brought with him various sexual devices, vodka, computer equipment, cameras, and presents for “Kara,” including lingerie.
This prosecution resulted from an investigation conducted by the Federal Bureau of Investigation, Albany, N.Y., and the Saratoga Springs Police Department. The case was prosecuted by Assistant United States Attorneys Jeffrey C. Coffman and Lisa Fletcher. Further questions may be directed to Assistant U.S. Attorney Elizabeth C. Coombe at (518) 431-0247.
Restaurant Owners in Olathe Charged with Harboring Undocumented WorkersRead the Press Release
KANSAS CITY, KAN. – The owners of Wei’s Super Buffet restaurant in Olathe have been charged with harboring undocumented workers who were in the United States unlawfully, U.S. Attorney Barry Grissom said today.
A federal criminal complaint filed in U.S. District Court in Kansas City, Kan., alleges the owners and managers of the restaurant violated federal law by knowingly employing, transporting and housing undocumented workers.
The following defendants were charged with one count of conspiracy to transport undocumented workers; conceal, harbor and shield undocumented workers; and encourage or induce undocumented workers to unlawfully enter or remain in the United States.
Wei Liu, 40,Olathe, Kan., owner of Wei’s Super Buffet at 12225 Strang Line Road in Olathe and Wei’s Super Buffet at 7531 Wornall Road in Kansas City, Mo.
Xiang Liu, 35, Olathe, Kan., Wei Liu’s wife and restaurant manager.
Jin Hui Liu, 47, Olathe, Kan., Wei Liu’s brother in law.
Huiqing Liu, 44, Olathe, Kan., Wei Liu’s sister.
Quan Liu, 25, Kansas City, Mo., manager of the Wei’s Super Buffet in Kansas City, Mo.
Bin Liu, 39, Olathe, Kan.An investigator’s affidavit filed in support of the complaint alleges that beginning in February 2011 agents of Homeland Security Investigations began surveillance on the owners, managers and employees at Wei’s Super Buffet. They checked Quarterly Wage Report and Unemployment Tax Returns submitted by the restaurant to the Kansas Department of Labor and they identified employees who were illegally present in the United States. They also identified apartments rented by the defendants where undocumented workers were living.
On Nov. 5, 2013, investigators served search and seizure warrants. During a search of Wei and Xiang Liu’s residence, where Biu Liu also resided, they found boxes of records associated with the daily operations of the restaurant and ledgers identifying the restaurant’s revenue. During the search of Jin Hui and Huiqing Liu’s residence, they found six undocumented workers residing the basement, all of whom worked at the restaurant. During the search of an apartment leased by Quan Liu near the restaurant in Kansas City, Mo., they found six undocumented workers residing there.
If convicted, the defendants face a maximum penalty of 10 years in federal prison and a fine up to $250,000.
The Department of Homeland Security (DHS), Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Scott Rask is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Real Estate Developer Sentenced to Federal Prison for Mortgage Fraud OffensesRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JOHN J. DORAN, 64, of Niantic, formerly of Deep River, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 12 months and one day of imprisonment, followed by five years of supervised release, the first six months of which DORAN must serve in home confinement under electronic monitoring. On April 4, 2013, DORAN pleaded guilty to one count of making false statements to influence a bank in connection with a mortgage application.
For much of his professional life, DORAN has been a builder and construction manager of high-end homes and real estate developments throughout Connecticut. According to court documents and statements made in court, in March 2005, DORAN submitted a false individual tax return to JP Morgan Chase in connection with a $500,000 refinance loan application. The tax return indicated that his adjusted gross income for 2003 was $296,735 when, in fact, the actual 2003 tax return he filed with the Internal Revenue Service showed an adjusted gross income of -$81,911.
In March 2007, DORAN submitted false individual 2003 and 2004 tax returns in connection with a loan application to Wachovia Dealer Services to finance the purchase of a yacht.
In May 2007, DORAN applied to Bank of America for a mortgage to purchase a condominium in New Haven. In connection with the application, DORAN submitted a false individual tax return that indicated that his adjusted gross income for 2004 was $464,197 when, in fact, his actual 2004 tax return showed an adjusted gross income of -$69,298. DORAN also submitted to the bank a fictitious sale contract for his personal residence in Deep River and a false bank statement.
DORAN subsequently defaulted on the three loans.
As part of his sentence, Judge Chatigny ordered DORAN to pay restitution of $991,883.65.
This case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney David T. Huang.
PUBLIC AFFAIRS CONTACT:
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Tom Carson
(203) 821-3722 [email protected]Rapid City Man Pleads Not Guilty to Child Pornography ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for allegedly downloading images of child pornography onto a computer in September 2013.
Rodney Volker, age 67, was indicted by a federal grand jury on October 22, 2013, for Possession of Child Pornography and Receipt of Child Pornography. Volker appeared before U.S. Magistrate Judge Veronica L. Duffy on November 4, 2013, and pled not guilty to the Indictment.
The penalty upon conviction for the Possession charge is a mandatory minimum of 10 years and up to 20 years of imprisonment and a $250,000 fine, and for Receipt of Child Pornography the penalty is a mandatory minimum of 5 years and up to 20 years of imprisonment and a $250,000 fine. The charges are merely accusations and Volker is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rapid City Police Department and the South Dakota Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Sarah Collins is prosecuting the case.
Volker was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Randall Michael Lawson Sentenced to 216 Months in Prison and Lifetime Supervision for Narcotics, Firearms, Money Laundering, and Social Security Fraud ConvictionsRead the Press Release
GREENEVILLE, Tenn. – Randall Michael Lawson, 58, of Limestone, Tenn., was sentenced on Nov. 6, 2013, to serve 216 months in prison, followed by lifetime of supervised release, by the Honorable J. Ronnie Greer, U.S. District Judge. Lawson was also ordered to pay restitution to the Social Security Administration in the amount of $10,784.16; forfeit two firearms, and pay a $3 million judgment to the United States.
Lawson pleaded guilty in August 2012 to a federal indictment charging him with conspiracy to distribute and to possess with the intent to distribute 1,000 kilograms or more of marijuana; conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine; conspiracy to commit money laundering; social security fraud; and, being a felon in possession of firearms.
Lawson admitted to conspiring to distribute approximately 14,400 pounds, or 6,545 kilograms, of marijuana and 24 kilograms of cocaine between December 2002 and December 2010. Additionally, in a related case, Lawson was convicted in North Carolina of possessing two firearms after having been convicted of a prior felony offense.
As a result of this investigation, several other individuals have been convicted and sentenced for their involvement in the drug conspiracies.
On Apr. 25, 2013, Michael L. Dykes, 51, of Rogersville, Tenn., was sentenced to serve 37 months in prison, followed by one year of supervised release. Dykes was allowed to remain on bond until reporting to the Bureau of Prisons to serve his sentence. He pleaded guilty in January 2013 to conspiracy to distribute and possess with intent to distribute marijuana and conspiracy to distribute and possess with intent to distribute oxycodone pills.
On Apr. 16, 2013, Lorne L. Loucel, 32, of Rogersville, Tenn., was sentenced to serve 108 months in prison, followed by three years of supervised release. Loucel pleaded guilty in December 2012 to conspiracy to distribute and possess with intent to distribute oxycodone pills.
On Apr. 16, 2013, Daniel L. Dykes, 29, of Rogersville, Tenn., was sentenced to serve 37 months in prison, followed by three years of supervised release. Dykes pleaded guilty in December 2012 to conspiracy to distribute and possess with intent to distribute marijuana and conspiracy to distribute and possess with intent to distribute oxycodone pills.
On Apr. 2, 2013, Christy D. Dykes, 32, of Rogersville, Tenn., was sentenced to serve 40 months in prison, followed by three years of supervised release. Dykes pleaded guilty in November 2012 to conspiracy to distribute and possess with intent to distribute oxycodone pills.
On Mar. 21, 2013, Christy R. Seay, 39, of Greeneville, Tenn., was sentenced to serve 57 months in prison, followed by three years of supervised release. Seay pleaded guilty in September 2012 to conspiracy to distribute and possess with intent to distribute oxycodone pills.
On Mar. 11, 2013, Ella Maria Camacho Garcia, 30, of Burlington, N.C., was sentenced to serve 78 months in prison, followed by two years of supervised release. Garcia pleaded guilty in August 2012 to conspiracy to distribute and possess with intent to distribute marijuana and a conspiracy to distribute and to possess with the intent to distribute cocaine. Garcia also pleaded guilty to money laundering and received a money judgment in the amount of $815,000.00.
On Mar. 7, 2013, Jonathan L. Light, 24, of Kingsport, Tenn., was sentenced to serve 84 months in prison, followed by three years of supervised release. Light pleaded guilty in August 2012 to conspiracy to distribute and possess with intent to distribute oxycodone pills.
On Mar. 7, 2013, Levi D. Love, 24, of Kingsport, Tenn., was sentenced to serve 37 months in prison, followed by three years of supervised release. Love was allowed to remain on bond until reporting to the Bureau of Prisons to serve his sentence. Love pleaded guilty in August 2012 to conspiracy to distribute and possess with intent to distribute oxycodone pills.
On Mar. 4, 2013, Charles Thomas Laing, 30, of Rogersville, Tenn., was sentenced to serve 157 months in prison, followed by four years of supervised release. Laing pleaded guilty in September 2011, to conspiracy to distribute and possess with intent to distribute oxycodone pills, possession of a firearm in furtherance of a drug trafficking offense, and money laundering.
On Feb. 28, 2013, Jessica R. Bernard, 23, of Greeneville, Tenn., was sentenced to serve 37 months in prison, followed by three years of supervised release. Bernard pleaded guilty in September 2012 to conspiracy to distribute and possess with intent to distribute oxycodone pills.
On Feb. 28, 2013, Amanda D. Bernard, 23, of Afton, Tenn., was sentenced to serve 37 months in prison, followed by three years of supervised release. Bernard pleaded guilty in August 2012 to conspiracy to distribute and possess with intent to distribute oxycodone pills.
On Feb.26, 2013, Shandeeda M. Compton, 31, of Rogersville, Tenn., was sentenced to serve 63 months in prison, followed by three years of supervised release. Compton pleaded guilty in October 2012 to conspiracy to distribute and possess with intent to distribute oxycodone pills.
On Feb. 25, 2013, Brock A. Lawson, 26, of Rogersville, Tenn., was sentenced to serve 118 months in prison, followed by five years of supervised release. Lawson pleaded guilty in July 2012 to conspiracy to distribute and possess with intent to distribute marijuana.
On Apr. 25, 2013, James Light, 65, of Rogersville, Tenn., was sentenced to serve 150 months in prison, followed by four years of supervised release. Light pleaded guilty in December 2012 to conspiracy to distribute and to possess with the intent to distribute 500 grams or more of cocaine and a conspiracy to distribute and possess with intent to distribute oxycodone.
On Apr. 25, 2013, Michael L. Dykes, of Rogersville, Tenn., was sentenced to serve 37 months in prison, followed by one year of supervised release. Dykes pleaded guilty in January 2013 to conspiracy to distribute and to possess with the intent to distribute 55 kilograms or more of marijuana and a conspiracy to distribute and possess with intent to distribute oxycodone.
On Apr. 30, 2013, Jeremy R. Light, of Rogersville, Tenn., was sentenced to serve 57 months imprisonment, followed by three years of supervised release. Light pled guilty on January 3, 2013 to conspiracy to distribute and possess with intent to distribute oxycodone.
On Apr. 30, 2013, Michael B. Dykes, of Rogersville, Tenn., was sentenced to 30 months in prison, followed by three years of supervised release. Dykes pleaded guilty in January 2013 conspiracy to distribute and possess with intent to distribute oxycodone.
On Jul. 23, 2013, Jackie D. Dykes, of Rogersville, Tenn., was sentenced to serve 80 months in prison, followed by three years of supervised release. Dykes pleaded guilty in December 2012 conspiracy to distribute and to possess with the intent to distribute 55 kilograms or more of marijuana and a conspiracy to distribute and possess with intent to distribute oxycodone.
On Aug. 5, 2013, James H. McMurray, Jr., of Blountville, Tenn., was sentenced to serve 60 months in prison, followed by four years of supervised release. McMurray pleaded guilty in April 2013 to conspiracy to distribute and to possess with the intent to distribute 100 kilograms or more of marijuana and money laundering.
On Aug. 5, 2013, Michael Lee Lawson, of Rogersville, Tenn., was sentenced to serve 70 months in prison, followed by four years of supervised release. Lawson pleaded guilty in April 2013 to conspiracy to distribute and to possess with the intent to distribute 100 kilograms or more of marijuana.
On Oct. 16, 2013, Parrie Christine Hudgins, of Kingsport, Tenn., was sentenced to serve 87 months in prison, followed by five years of supervised release. Lawson pleaded guilty in April 2013 to conspiracy to distribute and to possess with the intent to distribute 1,000 kilograms or more of marijuana and a conspiracy to distribute and possess with intent to distribute oxycodone.
The indictment and subsequent conviction of Light and other co-conspirators was the result of a three year investigation conducted by the Hawkins County Tennessee Sheriff’s Department, Sullivan County Tennessee Sheriff’s Department, Greene County Tennessee Sheriff’s Department, Second Judicial Drug Task Force, Kingsport, Tennessee, Police Department, Third Judicial Drug Task Force, Tennessee Bureau of Investigation, Federal Bureau of Investigation, Social Security Administration, and Drug Enforcement Administration. Assistant U.S. Attorney Caryn L. Hebets represented the United States.
Queens, N.Y., Men Plead Guilty to Large-Scale ATM Skimming Scheme Targeting New Jersey Bank CustomersRead the Press Release
NEWARK, N.J. – Two Romanian natives residing in Queens, N.Y., today admitted to a scheme to steal account information from bank customers throughout New York, New Jersey, and Connecticut by installing secret card-reading devices on ATMs, U.S. Attorney Paul J. Fishman announced.
Ioan Leusca, a/k/a “Ionel Spinu,” 30, and Dezso Gyapias, a/k/a “Valentin Folea,” 29, each pleaded guilty before U.S. District Judge William J. Martini to separate informations charging each with one count of conspiracy to commit bank fraud and one count of aggravated identity theft. Leusca and Gyapias have been held without bail since their arrests on Jan. 13, 2013.
According to documents filed these and other cases and statements made in court:
Leusca and Gyapias admitted that they and their fellow conspirators installed skimmers and pinhole cameras at bank ATMs. The devices were installed on multiple ATMs in New Jersey and Connecticut. Each skimmer, an electronic device, would read and record identity and account information contained in the magnetic strip of a customer’s ATM card. The pinhole camera secretly recorded bank customers’ keystrokes as they entered their personal identification numbers. Leusca and Gyapias admitted that they and other conspirators went back to collect the devices containing the recorded information.
Leusca and Gyapias acknowledged that after the stolen customer account and identification information had been loaded onto blank ATM cards, they and their conspirators used those cards to steal $985,000 from Citibank ATMs in New Jersey, New York and Connecticut.
The charges to which Leusca and Gyapias pleaded guilty arose from a larger investigation into a skimming scheme that targeted customers in the tri-state area in 2012 and early 2013. Together, the schemes cost a number of banks a total of $5 million in cash stolen from their customer accounts.
Of the eight others charged in relation to the wider scheme, all Romanian nationals who lived in Queens, seven are in custody. The leaders of the scheme, Marius Vintila, 31, and Bogdan Radu, 30, were charged by criminal complaint on July 10, 2013. Vintila and Radu designed and created the actual skimming devices and pinhole cameras and recruited individuals, including Leusca and Gyapias, to install them on bank ATMs. Vintila used an alias to rent multiple self-storage units, in which he stored the contents of an entire skimming operation, including skimming devices, pinhole cameras, super glue, tape, SD cards, batteries, computers, molds, fraudulent ATM cards, and cash proceeds. Radu taught co-conspirators how to install the skimming devices, and Radu used an alias to move skimming devices and cash proceeds overseas.
Other charged conspirators, including Constantin Ginga, 53, Marius Cotiga, 35, Constantin Pendus, 30, Emil Revesz, 30, Florin Apetrei, 18 and another individual charged as “first name unknown, last name unknown,” a/k/a “Chioru,” installed the devices designed by Vintila and Radu onto bank ATMs and used fraudulent ATM cards to steal millions of dollars. They used hats, jackets, scarves and sunglasses to disguise themselves while installing the devices and while using the cards to withdraw money.
Ginga, Cotiga, Leusca, Gyapias, Pendus, Revesz, Apetrei, and Radu are in custody in New Jersey and being held without bail. Ginga previously pleaded guilty to conspiring to commit bank fraud and aggravated identity theft and awaits sentencing on Dec. 18, 2013. On Sept. 24, 2013, Vintila was apprehended in Sweden and awaits extradition to the United States. The individual known as “Chioru” remains at large.
The bank fraud conspiracy charge to which Leusca and Gyapias pleaded guilty is punishable by a maximum potential penalty of 30 years in prison and a $1 million fine. The aggravated identity theft charge carries a mandatory, consecutive penalty of two years in prison and a maximum $250,000 fine. Sentencing is currently scheduled for Feb. 20, 2014.
U.S. Attorney Fishman praised special agents of the U.S. Secret Service, Newark Field Office, under the direction of Special Agent in Charge James Mottola, along with special agents of Immigration and Customs Enforcement, Homeland Security Investigations (HSI) in Newark, under the direction of Andrew M. McLees, with the investigation leading to today’s guilty pleas.
The charges and allegations against the other defendants charged in the pending complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal and David Eskew of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense Counsel: Leusca: Frank Arleo Esq., West Orange, N.J.
Gyapias: Joe Rotella Esq., Newark
Leusca, Ioan Information
Gyapias, Dezso InformationPueblo Man Found Guilty of Tax Evasion, Bank Fraud and Interfering with IRS LawsRead the Press Release
DENVER – Michael Destry Williams, age 49, of Pueblo, Colorado, was found guilty by a jury late yesterday for tax evasion, structuring, bank fraud, and interfering with IRS laws, the U.S. Attorney’s Office, Internal Revenue Service – Criminal Investigation Division (IRS CI) and Treasury Inspector General for Tax Administration (TIGTA) announced. The guilty verdict was the result of a 6 day trial before U.S. District Court Judge Christine M. Arguello. Williams remained in the custody of the United States Marshals and is scheduled to be sentenced on January 27, 2014 at 3:30 p.m.
Williams was indicted by federal grand jury in Denver on March 22, 2012, followed by a superseding indictment on July 26, 2012.According to the indictment, superseding indictment and evidence presented at trial, Williams was self-employed as a general contractor focusing primarily on residential construction projects, including roofing, remodeling and the repair and restoration of residential structures sustaining fire and water related damage. He was also self-employed as a real estate investor involved in the purchase, renovation and resale (commonly known, as “fixing and flipping”) of residential properties. Williams operated under the name of Greenview Construction, Inc., a Colorado corporation.
From April 2005 and continuing through January 2008, Williams willfully attempted to evade a substantial amount of income tax and self-employment tax due and owing by him to the United States for calendar years 2005, 2006 and 2007. He failed to file income tax returns and failed to pay to the IRS income tax and self-employment tax. To conceal his income, Williams established and used trusts as part of his tax evasion scheme and structured over $90,000 in deposited funds from July 2008 through September 2008.
In November of 2009, Williams attempted to defraud a Colorado financial institution by depositing worthless fabricated United States Treasury checks for his own benefit. There were two false treasury checks totaling $55,000 payable to Greenview Construction. In February of 2010, there was a third fabricated United States Treasury check in the amount of $250,000 that Williams tendered to the El Paso County Court to settle a criminal misdemeanor case for which he had been sentenced to a jail term.
From October 2008 through December 2010, Williams mailed numerous frivolous correspondences to the Secretary of the Treasury as well as various IRS offices in an attempt to obstruct and impede the administration of the internal revenue laws. The obstructive efforts included attempts by Williams to target State of Colorado judicial officers who had presided over three separate state cases in which Williams was named as a defendant. In particular, Williams sent IRS criminal referrals accusing one of these judicial officers and the Clerk of the El Paso County District Court with committing criminal tax and related offenses.
“This defendant attempted to hide his income from the IRS, a ploy that doesn’t work,” said U.S. Attorney John Walsh. “The agents who investigated this case and the trial team who prosecuted the defendant deserve recognition for their hard work and successful outcome.”
“It’s only a matter of time -- when you willfully conceal income and interfere with IRS laws to this degree -- you will be investigated and brought to justice,” said Stephen Boyd, Special Agent in Charge for IRS Criminal Investigation, Denver Field Office.
“Without the outstanding teamwork demonstrated by the IRS Criminal Investigation, the U.S. Attorney’s Office in the District of Colorado and the Treasury Inspector General for Tax Administration, this conviction would not have been possible,” said P. Cordale Lamb, Special Agent in Charge in TIGTA’s Denver Office. “The conviction sends a strong message: those individuals who attempt to interfere with or impede the administration of Internal Revenue laws will be investigated and will be held accountable in a court of law.”
Williams was charged and found guilty of three counts of tax evasion, one count of structuring, two counts of bank fraud, three counts of fictitious obligations and one count of interfering with the administration of internal revenue laws. Tax evasion and structuring carries a penalty of not more than 5 years in federal prison, and a fine of up to $250,000 per count. Bank fraud carries a penalty of not more than 30 years in federal prison, and a fine of up to $1,000,000 per count. Fictitious obligations carries a penalty of not more than 25 years in federal prison, and a fine of up to $1,000,000 per count. Interfering with the administration of internal revenue laws carries a penalty of not more than 3 years in federal prison, and a fine of up to $250,000 per count.
This case was investigated by agents with IRS Criminal Investigation (IRS CI) and U.S. Treasury Inspector General for Tax Administration (TIGTA). The case is being prosecuted by Assistant U.S. Attorney Kenneth Harmon Department of Justice Tax Division Trial Attorney Kevin Sweeney.
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Prison inmate sentenced to five and a half years in prison for filing false tax refund claims and aggravated identity theftRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that an Anchorage man was sentenced today in federal court after being found guilty of conspiracy to defraud the government and aggravated identity theft.
Paulando Ramone Williams, 48, of Anchorage, Alaska, was sentenced today to five and half years in prison by Chief U.S. District Court Judge Ralph R. Beistline. Williams received a sentence of 42 months for conspiracy to defraud the government with respect to false refund claims and mail fraud and a consecutive sentence of 24 months for aggravated identity theft to be followed by three years of supervised release. Williams had pled guilty in August 2013. In addition to his prison sentence, a money judgment of $108,003 was entered against Williams. The Court also forfeited $23,160 seized from U.S. Bank in April 2011 and ordered Williams to pay restitution in the amount of $108,003.Assistant U.S. Attorney Yvonne Lamoureux, who prosecuted the case, noted that according to filings with the court, Williams participated in a conspiracy to obtain tax refunds by filing fraudulent income tax returns. Between April 2010 and January 2012, Williams and co-conspirators prepared and submitted to the IRS approximately 67 false tax returns claiming refunds of over $150,000.
Court documents also revealed that Williams and co-defendant Steve McComb, both prison inmates, obtained the names and social security numbers of individuals, many of whom were also inmates at correctional facilities to use in their scheme. Williams and McComb then provided that information to other co-conspirators to prepare and file false individual income tax returns. McComb authorized the co-conspirators to retain a portion of the money from the refunds, and directed them to wire or mail the remainder of the refunds to other co-conspirators or to hold the money for McComb. Recorded jail calls between the co-conspirators about the scheme included statements by McComb to another co-conspirator to make sure that Williams got his cut or portion of the proceeds.
Williams and co-conspirators Steve McComb, Helen Delores Maloney, and Michael Lee Sexton were indicted by a federal grand jury in February 2013 for conspiracy to defraud the government with respect to false claims, mail fraud, and aggravated identity theft. Their current status is as follows:
- McComb pled guilty to conspiracy to defraud the government with respect to claims, mail fraud, and aggravated identity theft in June 2013 and was sentenced to 9 years in prison on August 22, 2013;
- Maloney pled guilty to conspiracy to defraud the government with respect to claims and mail fraud in April 2013 and was sentenced to 28 months in prison on July 2, 2013; and
- Sexton has pled not guilty to the charges and is awaiting trial scheduled for December 9, 2013.
Ms. Loeffler commends the Internal Revenue Service, Criminal Investigation Division for conducting the investigation leading to the successful prosecution of Williams.
Porcupine Man Pleads Guilty to Child AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that Corey Good Crow, age 37, of Porcupine, South Dakota, appeared before U.S. Magistrate Judge Veronica L. Duffy on November 1, 2013, and pled guilty to Felony Child Abuse and Neglect.
The maximum penalty upon conviction is 10 years of imprisonment and a $250,000 fine.
The charge relates to Good Crow engaging in a pattern of conduct between 2008 and 2010 that subjected a child to abuse and neglect which caused the child severe and permanent psychological injury.
The investigation was conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. The case is being prosecuted by Assistant U.S. Attorney Wayne Venhuizen.
A presentence investigation was ordered and a sentencing date will be set. The defendant was remanded to the custody of the U.S. Marshals Service pending sentencing.
Pine Ridge Man Pleads Guilty to LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that Michael Alford, age 31, of Pine Ridge, South Dakota, appeared before U.S. Magistrate Judge Veronica L. Duffy on October 31, 2013, and pled guilty to Larceny.
The maximum penalty upon conviction is 5 years of imprisonment and a $250,000 fine.
The charge relates to Alford and others stealing items from a house in Pine Ridge in the early morning hours of December 15, 2012. The items, valued at more than $1,000, included but were not limited to, an air compressor, tools, electronic devices, DVDs, games and jewelry.
The investigation was conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety.
A presentence investigation was ordered and a sentencing date will be set. The defendant was remanded to the custody of the U.S. Marshals Service pending sentencing.
Pine Ridge Man Pleads Guilty to Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that Michael Tobacco, age 21, of Pine Ridge, South Dakota, appeared before U.S. Magistrate Judge Veronica L. Duffy on October 31, 2013, and pled guilty to Assault with a Dangerous Weapon.
The maximum penalty upon conviction is 10 years of imprisonment and a $250,000 fine.
The charge relates to Tobacco assaulting a juvenile female at Pine Ridge on June 15, 2013. This assault resulted in the female receiving a severely bruised eye that was swollen shut and numerous bruises all over her upper body.
The investigation was conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. The case is being prosecuted by Assistant U.S. Attorney Eric Kelderman.
A presentence investigation was ordered. The defendant was remanded to the custody of the U.S. Marshals Service pending sentencing.
Pierre Woman Sentenced for Theft from an Indian Tribal OrganizationRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pierre, South Dakota, woman convicted of Theft From an Indian Tribal Organization was sentenced on October 29, 2013, by U.S. District Judge Roberto A. Lange.
Ravae Bowman, age 40, was sentenced to 3 years of probation with 6 months of home confinement, $5,183.07 in restitution, and a $100 special assessment to the Federal Crime Victims Fund.
In October 2012, Bowman embezzled money from a Subway store in Eagle Butte where she was the manager. At the time, the Subway store was an entity of the Cheyenne River Sioux Tribe Telephone Authority and the Cheyenne River Sioux Tribe.
The Federal Bureau of Investigation conducted the investigation. The case was prosecuted by Assistant U.S. Attorney Mikal Hanson.
Patient Broker of South Florida Psychiatric Hospital Sentenced for Role in $67 Million Health Care Fraud SchemeRead the Press Release
A patient broker of a South Florida psychiatric hospital was sentenced today to serve 24 months in prison followed by three years of supervised release for her participation in a $67 million Medicare fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office, and Special Agent in Charge Christopher Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations’ Miami Office made the announcement.
Gloria Himmons, 54, of Union Springs, Ala., was sentenced by U.S. District Judge Jose E. Martinez in the Southern District of Florida. In March 2013, Himmons pleaded guilty to one count of conspiracy to receive health care kickbacks and one count of receiving a health care kickback. In addition to her prison term, Himmons was ordered to pay $14 million in restitution, joint and severally with her co-defendants.
According to court documents, Himmons was a patient broker at Hollywood Pavilion LLC (HP), a state-licensed psychiatric hospital in South Florida that purported to offer both inpatient and outpatient mental health services. Himmons would provide Medicare beneficiaries to HP in exchange for bribes and kickbacks, and she knew that the patients she provided to HP were not appropriate for inpatient psychiatric hospitalization or for outpatient mental health treatment. The patients she provided to HP included those who were not severely mentally ill, as well as substance abusers looking for rehabilitation programs. The patients did not have legitimate referrals from hospitals or doctors who had been treating acute-phase, severe mental illness.
From at least 2005 through September 2012, in exchange for bribes and kickbacks, Himmons knowingly and willfully provided to HP Medicare beneficiaries who did not need inpatient or outpatient psychiatric treatment. As a result of Himmons’s participation in this scheme, HP was improperly paid more than $7 million by Medicare. From at least 2003 through at least August 2012, HP billed Medicare approximately $67 million for services that were not properly rendered, for patients that did not qualify for the services being billed, and for claims for patients who were procured through bribes and kickbacks. Medicare reimbursed HP on approximately $40 million of those claims.
On Sept. 10, 2013, co-defendants Karen Kallen-Zury, Daisy Miller and Christian Coloma were sentenced on their June 2013 jury convictions. Kallen-Zury, the chief executive officer of HP, and Miller and Coloma were convicted on all counts at trial and sentenced to 300 months, 180 months and 144 months, respectively. Kallen-Zury and Miller were ordered to pay, jointly and severally with their co-defendants, nearly $40 million in restitution. Coloma was ordered to pay, jointly and severally, more than $20 million in restitution.
This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Miami. This case is being prosecuted by Assistant Chief Robert A. Zink and Trial Attorneys Andrew H. Warren and Anne McNamara of the Fraud Section.
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,500 defendants who collectively have falsely billed the Medicare program for more than $5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.Patient Broker of South Florida Psychiatric Hospital Sentenced for Role in $67 Million Health Care Fraud SchemeRead the Press Release
A patient broker of a South Florida psychiatric hospital was sentenced today to serve 24 months in prison followed by three years of supervised release for her participation in a $67 million Medicare fraud scheme.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office, and Special Agent in Charge Christopher Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations’ Miami Office made the announcement.
Gloria Himmons, 54, of Union Springs, Ala., was sentenced by U.S. District Judge Jose E. Martinez in the Southern District of Florida. In March 2013, Himmons pleaded guilty to one count of conspiracy to receive health care kickbacks and one count of receiving a health care kickback. In addition to her prison term, Himmons was ordered to pay $14 million in restitution, joint and severally with her co-defendants.
According to court documents, Himmons was a patient broker at Hollywood Pavilion LLC (HP), a state-licensed psychiatric hospital in South Florida that purported to offer both inpatient and outpatient mental health services. Himmons would provide Medicare beneficiaries to HP in exchange for bribes and kickbacks, and she knew that the patients she provided to HP were not appropriate for inpatient psychiatric hospitalization or for outpatient mental health treatment. The patients she provided to HP included those who were not severely mentally ill, as well as substance abusers looking for rehabilitation programs. The patients did not have legitimate referrals from hospitals or doctors who had been treating acute-phase, severe mental illness.
From at least 2005 through September 2012, in exchange for bribes and kickbacks, Himmons knowingly and willfully provided to HP Medicare beneficiaries who did not need inpatient or outpatient psychiatric treatment. As a result of Himmons’s participation in this scheme, HP was improperly paid more than $7 million by Medicare. From at least 2003 through at least August 2012, HP billed Medicare approximately $67 million for services that were not properly rendered, for patients that did not qualify for the services being billed, and for claims for patients who were procured through bribes and kickbacks. Medicare reimbursed HP on approximately $40 million of those claims.
On Sept. 10, 2013, co-defendants Karen Kallen-Zury, Daisy Miller and Christian Coloma were sentenced on their June 2013 jury convictions. Kallen-Zury, the chief executive officer of HP, and Miller and Coloma were convicted on all counts at trial and sentenced to 300 months, 180 months and 144 months, respectively. Kallen-Zury and Miller were ordered to pay, jointly and severally with their co-defendants, nearly $40 million in restitution. Coloma was ordered to pay, jointly and severally, more than $20 million in restitution.
This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Miami. This case is being prosecuted by Assistant Chief Robert A. Zink and Trial Attorneys Andrew H. Warren and Anne McNamara of the Fraud Section.
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,500 defendants who collectively have falsely billed the Medicare program for more than $5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
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.
Painting Contractor Admits Paying $800k in Bribes to West Haven Housing Authority OfficialRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that HARRY P. MICONI, 77, of West Haven, waived his right to indictment and pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to paying hundreds of thousands of dollars in bribes to a senior official at the West Haven Housing Authority.
According to court documents and statements made in court, MICONI owned and operated several painting and contracting businesses in West Haven, including P and K Contractor LLC. In pleading guilty, MICONI admitted that, between January 2007 and February 2012, he and his business made more than $800,000 in corrupt payments to a senior official at the West Haven Housing Authority, and to Four Star Development Company LLC, an entity personally owned and controlled by the official. In return, the official directed millions of dollars in business for or with the West Haven Housing Authority and its two affiliated instrumentalities, Meadow Landing and Spring Heights, to MICONI and his businesses.
MICONI pleaded guilty to one count of conspiracy to commit bribery in connection with a program receiving federal funds, which carries a maximum term of imprisonment of five years. Judge Shea has scheduled sentencing for January 29, 2014.
As part of his plea, MICONI has agreed to pay $862,563 in restitution.
Acting U.S. Attorney Daly stated that the investigation is ongoing.
This matter is being investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, Federal Bureau of Investigation, and Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorneys David T. Huang and Susan L. Wines.
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(203) 821-3722 [email protected]Owner of San Francisco Construction Company Pleads Guilty to Tax FraudRead the Press Release
SAN FRANCISCO – Brian Kenny pleaded guilty yesterday to one count of aiding and assisting in the preparation and presentation of a false U.S. Income Tax Return, United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation Special Agent in Charge José M. Martinez announced.
According to the plea agreement, Kenny, 40, of San Francisco, incorporated his business, SF Bay Construction, Inc. on or about February 17, 2005. SF Bay Construction is a subchapter “S” corporation, located in San Francisco, Calif. Kenny has been the sole shareholder of SF Bay Construction from its incorporation through at least December 31, 2007. Kenny admitted that during the 2006 tax year, SF Bay Construction performed a variety of construction-related jobs for clients and received $1,309,833.77 in business income from those jobs. Kenny knew the amount of business gross receipts reported on SF Bay Construction’s income tax returns was material to the calculation of income tax owed on his personal income tax return because he was required to pay tax on SF Bay Construction’s business income. Kenny knew that his tax return preparer filed a 2006 federal income tax return that failed to report more than $470,000 in gross receipts and instead contained the false business income figure that Kenny had provided to the tax preparer.
Kenny was charged on July 25, 2013, with six counts of assisting in the filing of false tax returns. He pleaded guilty to one count. Sentencing is scheduled for February 11, 2014, at 2:00 p.m., before The Honorable William H. Alsup, U.S. District Court Judge, in San Francisco. The maximum statutory penalty for each count of aiding and assisting in the preparation and presentation of a false U.S. income tax return, in violation of Title 26, U.S.C. § 7206(2), is three years in prison and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Cynthia Stier is the Assistant United States Attorney who is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
(Kenny indictment )
Oakland Man Sentenced to Seventeen Years in Prison for Conspiracy to Rob A Stash House Using Loaded FirearmsRead the Press Release
OAKLAND – George Branch was sentenced today to 204 months in prison, for conspiring to possess with intent to distribute 5 kilograms or more of cocaine; conspiring to commit robbery affecting interstate commerce; and possessing a firearm during and in relation to and in furtherance of a crime of violence and drug trafficking crime, United States Attorney Melinda Haag and Bureau of Alcohol, Tobacco, Firearms and Explosives, Special Agent in Charge Joseph M. Riehl announced.
Mr. Branch, 36, of Oakland, pleaded guilty to all three charges on July 10, 2013. During his change of plea hearing, evidence showed that Mr. Branch, and two co-conspirators, planned to rob a stash house containing over 5 kilograms of cocaine using loaded firearms. Evidence further showed that on several occasions Mr. Branch met with an undercover agent from the Bureau of Alcohol, Tobacco, Firearms, and Explosives to discuss the plans for the upcoming armed robbery.
“This sentence should serve to deter those who would seek to use firearms during robberies in Oakland or elsewhere. We thank the ATF and the Oakland Police Department for their investigation and dedication to battling gun violence through Operation Gideon," said U.S. Attorney Melinda Haag.
“Armed robbery crews prey on the neighborhoods in which they operate, and they instill fear through intimidation and violence,” said Bureau of Alcohol, Tobacco, Firearms and Explosives, Special Agent in Charge Joseph M. Riehl. “ATF’s priority is to combat violent criminals and by partnering with the Oakland Police Department we are successfully targeting, disarming, and removing them from our communities.”
The sentence was handed down by The Honorable Phyllis J. Hamilton, U.S. District Court Judge in Oakland. Judge Hamilton also sentenced the defendant to a ten-year period of supervised release. The defendant is already in custody and will begin serving the sentence immediately.
Natalie Lee and William Frentzen are the Assistant U.S. Attorneys who prosecuted the case with the assistance of Daniel Charlier-Smith.
(Branch indictment )
Newark, N.J., Corrections Officer Faces Indictment Charging Sexual Abuse of DetaineeRead the Press Release
NEWARK, N.J. – A corrections officer with the Essex County Correctional Facility is expected to appear in court this afternoon for allegedly sexually assaulting a pretrial detainee in the facility and then lying about it to investigators, U.S. Attorney Paul J. Fishman announced.
Shawn D. Shaw, 40, of Newark, was charged by indictment with depriving an individual of rights under color of law and with obstruction of justice. The indictment was unsealed upon Shaw’s arrest on Oct. 8, 2013. He appeared that day before U.S. Magistrate Judge Madeline Cox Arleo and was released on a $100,000 bond with home detention. Shaw has been suspended from his duties since his arrest. His arraignment is scheduled for this afternoon before U.S. District Judge Faith S. Hochberg in Newark federal court.
According to the indictment:
On Dec. 28, 2010, Shaw, while acting in his official capacity as a corrections officer, subjected a detainee in the custody of the Essex County Correctional Facility to aggravated sexual abuse that caused bodily injury to the victim.
When investigators questioned Shaw about the attack, he lied and intentionally omitted information from his statement in order to obstruct the investigation. Specifically, Shaw falsely stated that he did not make sexual comments to the detainee or enter the victim’s cell.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to the arrest. He also thanked the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, with providing valuable information.
The charge of deprivation of rights under color of law carries a maximum potential penalty of life in prison. The obstruction of justice count carries a maximum potential penalty of 20 years in prison. Each count also carries a maximum $250,000 fine.
The government is represented by Criminal Division Chief Thomas Eicher and Assistant U.S. Attorney Shana Chen of the U.S. Attorney’s Office in Newark, and Trial Attorney Shan Patel of the Justice Department’s Civil Rights Division.
The charges and allegations contained in the indictment are merely accusations and the defendant is considered innocent unless and until proven guilty.
13-429
Defense counsel: Anthony C. Mack Esq., Newark
Shaw Indictment
New Jersey Man Convicted of Distribution of Child Pornography Involving Oakland TeenagerRead the Press Release
OAKLAND – Alex Gonzalez pleaded guilty in federal court today to distribution and possession of child pornography, United States Attorney Melinda Haag announced.
In pleading guilty, Gonzalez, 21, of Wenonah, New Jersey, admitted to meeting the victim, a 15-year old high school student, through the internet. The victim resided in Oakland. According to the statements made in court, Gonzalez instructed the victim to take nude photos of herself and to send them to him. He also instructed her to engage in sexually explicit conduct while on internet video chats. Gonzalez secretly recorded these encounters. When the 15-year old high school student stopped communicating with him, Gonzalez created a false identity on a social media website and uploaded the victim’s nude images to the social media website for the specific purpose of distributing those nude images to the high school student’s classmates.
Gonzalez was charged by Indictment on February 21, 2013, with one count of distribution of child pornography and one count of possession of child pornography. He pleaded guilty to all counts. Gonzalez’ sentencing is scheduled for February 19, 2014, before The Honorable Phyllis J. Hamilton, United States District Court Judge, in Oakland. The maximum statutory penalty for distribution of child pornography in violation of 18 U.S.C. § 2252(a)(4)(B) is 40 years’ imprisonment with a mandatory minimum sentence of 5 years and a fine of $250,000. Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Rodney C. Villazor is the Assistant U.S. Attorney who is prosecuting the case with the assistance of legal assistant Vanessa Quant. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
(Gonzalez indictment )
New Haven Man Sentenced to 50 Months in Federal Prison for Distributing Crack Cocaine, MarijuanaRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ANTWAIN YOPP, 31, of New Haven, was sentenced today by Senior U.S. District Judge Ellen Bree Burns in New Haven to 50 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine and marijuana.
YOPP is one of more than 100 individuals charged as a result of “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants, and seizures of narcotics and firearms.
The investigation revealed that YOPP conspired with others to distribute cocaine base and marijuana.
YOPP’s criminal history includes multiple convictions in state court, including convictions for sale of narcotics, possession with intent to sell narcotics, escape in the first degree and engaging police in pursuit. He was incarcerated in state custody on an unrelated offense when he was charged by federal indictment in May 2012.
On July 10, 2013, YOPP pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, cocaine base (“crack”) and marijuana. He has been detained in federal custody since August 26, 2013, when he completed his state sentence.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant United States Attorneys S. Dave Vatti and Marc Silverman.
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(203) 821-3722 [email protected]Navy Commander Charged with Accepting $100,000 Cash and Prostitutes in Widening International Bribery SchemeRead the Press Release
A third senior U.S. Navy official has been charged in a complaint unsealed today with accepting prostitutes, luxury travel and $100,000 cash from a foreign defense contractor in exchange for classified and internal U.S. Navy information, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Laura E. Duffy of the Southern District of California.
U.S. Navy Commander Jose Luis Sanchez, 41, was arrested in Tampa, Fla., this morning and made his initial appearance in federal court in the Middle District of Florida this afternoon. Also named in a complaint unsealed today is Leonard Glenn Francis, 49, of Malaysia, the CEO of Glenn Defense Marine Asia (GDMA), who was arrested on Sept. 16, 2013, in San Diego.
Two other senior Navy officials – Commander Michael Vannak Khem Misiewicz, 46, and Naval Criminal Investigative Service Supervisory Special Agent John Bertrand Beliveau II, 44 – have been charged separately in connection with bribery allegations. GDMA executive Alex Wisidagama, 40, of Singapore, has also been charged with participating in a related scheme to overbill the Navy for services provided in ports throughout Southeast Asia.
“As described in the corruption charges unsealed today, senior officials with the United States Navy abused their trusted positions as leaders in our armed forces by peddling favorable treatment -- and even classified government information -- for their personal benefit,” said Acting Assistant Attorney General Raman. “In turn, the GDMA executives who illicitly sought information and favors from those Navy officials boasted about their unlawful access to those officials and then traded on the influence that they illegally bought. Day by day, this massive Navy fraud and bribery investigation continues to widen, and as the charges announced today show, we will follow the evidence wherever it takes us.”
“According to the allegations in this case, a number of officials were willing to sacrifice their integrity and millions of taxpayer dollars for personal gratification,” said U.S. Attorney Laura Duffy. “While the overwhelming majority of the 400,000 active duty Navy personnel conduct themselves in a manner that is beyond reproach, we and our law enforcement partners at Naval Criminal Investigative Service and Defense Criminal Investigative Service continue to investigate the allegations of fraud and corruption that tarnish the stellar reputation of the U.S. Navy.”
“The arrest and criminal complaint against Commander Sanchez is the result of an ongoing investigation by the Defense Criminal Investigative Service and its law enforcement partners to identify and prosecute those individuals who would abuse their positions of trust within the Department of Defense,” said Special Agent In Charge Chris D. Hendrickson of the Office of the Inspector General, Department of Defense, Defense Criminal Investigative Service Western Field Office. “Allegations like these against Commander Sanchez can tarnish the reputation of honest and hardworking government personnel and put military personnel defending our nation around the globe at risk. The mission of DCIS is to ‘Protect America’s Warfighters’ and we will continue to relentlessly identify and investigate those individuals seeking to enrich themselves at the expense of the U.S. taxpayers.”
According to the complaint, Sanchez received bribes in return for sending sensitive U.S. Navy information to Francis, and making recommendations within the Navy to benefit Francis’s company, GDMA. GDMA is a multinational corporation and longtime government contractor based in Singapore, which provides hundreds of millions of dollars of “husbanding” services for the U.S. Navy in at least a dozen countries throughout the Pacific. Husbanding involves supplying food, water, fuel, tugboats and fenders, security, transportation, trash and liquid waste removal, and other goods and services to ships and submarines in foreign ports.
Like Sanchez, Misiewicz is accused of providing sensitive Navy information to Francis and secretly working on behalf of GDMA in exchange for prostitutes and luxury travel. GDMA, which has operating locations in Japan, Singapore, Thailand, Malaysia, Korea, India, Hong Kong, Indonesia, Australia, Philippines, Sri Lanka and the United States, allegedly overcharged the Navy and submitted bogus invoices for millions of dollars in services. Beliveau, the NCIS agent, is charged in another complaint with illegally supplying Francis with sensitive information, including reports of investigations by NCIS into possible frauds committed by GDMA in billing the U.S. Navy under its contracts. Wisidagama is charged with conspiracy to defraud the United States related to the overbilling.
According to court records, Sanchez allegedly provided Francis with internal Navy information, such as U.S. Navy ship schedules – some of which were classified – and information about husbanding issues that could affect GDMA, in order to help GDMA win and maintain Navy business. Court records allege that Sanchez regularly emailed Francis internal Navy discussions about GDMA, including legal opinions, and made recommendations in GDMA’s favor about port visits and Navy personnel assignments. In return, Francis gave Sanchez over $100,000 in cash, together with travel expenses and prostitutes. Court records allege that the conspiracy started in January 2009, when Sanchez was the Deputy Logistics Officer for the Commander of the U.S. Navy Seventh Fleet in Yokosuka, Japan, and continued when he was transferred to serve as Director of Operations for Fleet Logistics Command in Singapore, until he transferred to Florida in April 2013.
Sanchez and Francis allegedly communicated regularly via email and Facebook. Sanchez referred to Francis as “Lion King” and “Boss” in the emails, while Francis called Sanchez “brudda.”
For his part, Francis allegedly hired female escorts for Sanchez and friends on multiple occasions, on one occasion emailing one escort: “Hey Love Jose is in Manila at the DIAMOND Hotel go and see him he needs some love asap.”
According to court records, in an email exchange on Oct. 16, 2009, Sanchez and Francis allegedly discussed a trip Sanchez planned to take to Kuala Lumpur and Singapore with Navy friends he called his “Wolf Pack.” They discussed the number of rooms the “Wolf Pack” needed, and Sanchez asked Francis for pictures of prostitutes for “motivation.” Francis replied: “J, got it we will hook up after the FLAG dinner, will arrange a nest for you guys and some birds [women].” A few days later, on Oct. 19, 2009, Sanchez sent a Facebook message to Francis saying, “Yummy . . . daddy like.” In an Oct. 23, 2009, Facebook message, Sanchez asked Francis, “Where r we staying in KL [Kuala Lumpur]? No pictures to get our spirits up?”
Between Aug. 26 and 28, 2011, Francis allegedly communicated through email to the address of an escort whom Francis had previously hired for Sanchez. Francis wrote: “Hey Love, Jose is in Manila at the Diamond Hotel go and see him he needs some love asap room.” The escort responded to Francis, “Papi, I'm here jose's fon is not answering. I'm here [h]aving dri[n]ks at the lobby. Call him:: (( maybe his sleeping?” Later that day, she emailed Francis, “I'm with h[i]m already heehhe.”
Court records alleges that Francis sent an email on Oct. 20, 2011, asking Sanchez to help “swing” business his way regarding a U.S. Navy ship’s need to refuel at a port in Thailand. The Navy can use “sea cards” to purchase fuel for its ships at a price negotiated by the Defense Logistics Agency for Energy, as opposed to procuring fuel at usually higher prices from the husbanding contractor. In an email from Sanchez the next day, he told Francis: “Ask and you shall receive...we worked this out this morning…” According to court records, the USS Mustin did conduct a port visit to Laem Chabang, Thailand, during which it purchased fuel from GDMA, not via “sea cards.” As a result, the USS Mustin allegedly paid more than $1 million for fuel – more than twice what the fuel would have cost through use of the “sea card.”
The criminal complaint alleges that in an alleged Dec. 2, 2011, email discussion in which Sanchez told Francis about the status of an investigation of GDMA, Francis replied: “I have inside Intel from NCIS and read all the reports. I will show you a copy of a Classified Command File on me from NCIS ha ha.”
This ongoing investigation is being conducted by NCIS, the Defense Criminal Investigative Service, the Defense Contract Audit Agency, and the Drug Enforcement Administration. The Criminal Division’s Office of International Affairs provided significant assistance in this matter, and the Royal Thai Police and the Corrupt Practices Investigation Bureau Singapore also provided law enforcement assistance. This case is being prosecuted by Assistant U.S. Attorneys Mark Pletcher and Robert Huie of the Southern District of California, and Catherine Votaw, Director of Procurement Fraud, and Brian Young, Trial Attorney, of the Criminal Division’s Fraud Section.
The details contained in the criminal complaints are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tipline at www.ncis.navy.mil or call the Department of Defense Hotline at (800) 424-9098.
Navy Commander Charged with Accepting $100,000 Cash and Prostitutes in Widening International Bribery SchemeRead the Press Release
SAN DIEGO, CA - A third senior U.S. Navy official was charged in a complaint unsealed today with accepting prostitutes, luxury travel and $100,000 cash from a foreign defense contractor in exchange for classified and internal U.S. Navy information, announced U.S. Attorney Laura E. Duffy and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
U.S. Navy Commander Jose Luis Sanchez, 41, was arrested in Tampa, Florida, this morning and made his initial appearance in federal court in the Middle District of Florida this afternoon. The United States will seek removal of Sanchez to San Diego to face charges. Also named in the complaint is Leonard Glenn Francis, 49, of Malaysia, the CEO of Glenn Defense Marine Asia (GDMA), who was arrested September 16, 2013, in San Diego.
Two other senior Navy officials – Commander Michael Vannak Khem Misiewicz, 46, and Naval Criminal Investigative Service Supervisory Special Agent John Bertrand Beliveau II, 44 – have been charged separately in connection with bribery allegations. GDMA executive Alex Wisidagama, 40, of Singapore, has also been charged with participating in a related scheme to overbill the Navy for services provided in ports throughout Southeast Asia.
“According to the allegations in this case, a number of officials were willing to sacrifice their integrity and millions of taxpayer dollars for personal gratification,” said U.S. Attorney Laura Duffy. “While the overwhelming majority of the 400,000 active duty Navy personnel conduct themselves in a manner that is beyond reproach, we and our law enforcement partners at Naval Criminal Investigative Service and Defense Criminal Investigative Service continue to investigate the allegations of fraud and corruption that tarnish the stellar reputation of the U.S. Navy.”
“As described in the corruption charges unsealed today, senior officials with the United States Navy abused their trusted positions as leaders in our armed forces by peddling favorable treatment -- and even classified government information -- for their personal benefit,” said Acting Assistant Attorney General Raman. “In turn, the GDMA executives who illicitly sought information and favors from those Navy officials boasted about their unlawful access to those officials and then traded on the influence that they illegally bought. Day by day, this massive Navy fraud and bribery investigation continues to widen, and as the charges announced today show, we will follow the evidence wherever it takes us.”
“The arrest and criminal complaint against Commander Sanchez is the result of an ongoing investigation by the Defense Criminal Investigative Service and its law enforcement partners to identify and prosecute those individuals who would abuse their positions of trust within the Department of Defense,” said Chris D. Hendrickson, Special Agent In Charge, Office of the Inspector General, Department of Defense, Defense Criminal Investigative Service Western Field Office. “Allegations like these against Commander Sanchez can tarnish the reputation of honest and hardworking government personnel and put military personnel defending our nation around the globe at risk. The mission of DCIS is to ‘Protect America’s Warfighters’ and we will continue to relentlessly identify and investigate those individuals seeking to enrich themselves at the expense of the U.S. taxpayers.”
According to the complaint, Sanchez received bribes in return for sending sensitive U.S. Navy information to Francis, and making recommendations within the Navy to benefit Francis’s company, GDMA. GDMA is a multinational corporation and longtime government contractor based in Singapore, which provides hundreds of millions of dollars of “husbanding” services for the U.S. Navy in at least a dozen countries throughout the Pacific. Husbanding involves supplying food, water, fuel, tugboats and fenders, security, transportation, trash and liquid waste removal, and other goods and services to ships and submarines in foreign ports.
Like Sanchez, Misiewicz is accused of providing sensitive Navy information to Francis and secretly working on behalf of GDMA in exchange for prostitutes and luxury travel. GDMA, which has operating locations in Japan, Singapore, Thailand, Malaysia, Korea, India, Hong Kong, Indonesia, Australia, Philippines, Sri Lanka and the United States, allegedly overcharged the Navy and submitted bogus invoices for millions of dollars in services, the complaint said. Beliveau, the NCIS agent, is charged in another complaint with illegally supplying Francis with sensitive information, including reports of investigations by NCIS into possible fraud committed by GDMA in billing the U.S. Navy under its contracts. Wisidagama is charged with conspiracy to defraud the United States related to the overbilling.
According to court records, Sanchez allegedly provided Francis with internal Navy information, such as U.S. Navy ship schedules – some of which were classified - and information about husbanding issues that could affect GDMA – some of which was classified – in order to help GDMA win and maintain Navy business.
Court records allege that Sanchez regularly emailed Francis internal Navy discussions about GDMA, including legal opinions, and made recommendations in GDMA’s favor about port visits and Navy personnel assignments. In return, Francis gave Sanchez over $100,000 in cash, together with travel expenses and prostitutes. Court records allege that the conspiracy started in January 2009, when Sanchez was the Deputy Logistics Officer for the Commander of the U.S. Navy Seventh Fleet in Yokosuka, Japan, and continued when he was transferred to serve as Director of Operations for Fleet Logistics Command in Singapore, until he transferred to Florida in April 2013.
Sanchez and Francis allegedly communicated regularly via email and Facebook. Sanchez referred to Francis as “Lion King” and “Boss” in the emails, while Francis called Sanchez “brudda.” For his part, Francis allegedly hired female escorts for Sanchez and friends on multiple occasions.
According to court records, in an email exchange on Oct. 16, 2009, Sanchez and Francis allegedly discussed a trip Sanchez planned to take to Kuala Lumpur and Singapore with Navy friends he called his “Wolf Pack.” They discussed the number of rooms the “Wolf Pack” needed, and Sanchez asked Francis for pictures of prostitutes for “motivation.” Francis replied: “J, got it we will hook up after the FLAG dinner, will arrange a nest for you guys and some birds [women].” A few days later, on Oct. 19, 2009, Sanchez sent a Facebook message to Francis saying, “Yummy . . . daddy like.” In an Oct. 23, 2009, Facebook message, Sanchez asked Francis, “Where r we staying in KL [Kuala Lumpur]? No pictures to get our spirits up?”
Between Aug. 26 and 28, 2011, Francis allegedly communicated through email to the address of an escort whom Francis had previously hired for Sanchez. Francis wrote: “Hey Love, Jose is in Manila at the Diamond Hotel go and see him he needs some love asap room.” The escort responded to Francis, “Papi, I'm here jose's fon is not answering. I'm here [h]aving dri[n]ks at the lobby. Call him:: (( maybe his sleeping?” Later that day, she emailed Francis, “I'm with h[i]m already heehhe.”
Court records allege that Francis sent an email on Oct. 20, 2011, asking Sanchez to help “swing” business his way regarding a U.S. Navy ship’s need to refuel at a port in Thailand. The Navy can use “sea cards” to purchase fuel for its ships at a price negotiated by the Defense Logistics Agency for Energy, as opposed to procuring fuel at usually higher prices from the husbanding contractor. In an email from Sanchez the next day, he told Francis: “Ask and you shall receive...we worked this out this morning…” According to court records, the USS Mustin did conduct a port visit to Laem Chabang, Thailand, during which it purchased fuel from GDMA, not via “sea cards.” As a result, the USS Mustin allegedly paid more than $1 million for fuel – more than twice what the fuel would have cost through use of the “sea card.”
The criminal complaint alleges that in an alleged Dec. 2, 2011, email discussion in which Sanchez told Francis about the status of an investigation of GDMA, Francis replied: “I have inside Intel from NCIS and read all the reports. I will show you a copy of a Classified Command File on me from NCIS ha ha.”
This ongoing investigation is being conducted by NCIS, the Defense Criminal Investigative Service and the Defense Contract Audit Agency. Significant assistance was provided by the Drug Enforcement Administration, Homeland Security Investigations, the DOJ Criminal Division’s Office of International Affairs, the Royal Thai Police and the Corrupt Practices Investigation Bureau Singapore. This case is being prosecuted by Assistant U.S. Attorneys Mark Pletcher and Robert Huie of the Southern District of California and Catherine Votaw, Director of Procurement Fraud for the Criminal Division’s Fraud Section and Brian Young, Trial Attorney, of the Criminal Division’s Fraud Section.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tipline at www.ncis.navy.mil, the DoD Hotline at www.dodig.mil/hotline or call (800) 424-9098.
DEFENDANTSCase Number: 13-MJ-4027
Leonard Glenn Francis
Jose Luis SanchezCase Number: 13-CR-3781
Leonard Glenn Francis
John Bertrand Beliveau II
Case Number: 13-CR-3782Leonard Glenn Francis
Michael Vannak Khem Misiewicz
Case Number: 13-MJ3783Alex Wisidagama
SUMMARY OF CHARGESCase Number: 13-MJ-4027
Conspiracy to Commit Bribery in violation of 18 U.S.C. § 371
Case Number: 13-CR-3781
Conspiracy to Commit Bribery in violation of 18 U.S.C. § 371
Case Number: 13-CR-3782
Conspiracy to Commit Bribery in violation of 18 U.S.C. § 371
Case Number: 13-MJ-3783
Conspiracy to Defraud the United States in violation of 18 U.S.C. § 371
INVESTIGATING AGENCIESDefense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency*A complaint is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
Navajo Man Pleads Guilty to Brandishing a Firearm During a Home Invasion on the Navajo Indian ReservationRead the Press Release
ALBUQUERQUE – Donovan F. Muskett, 21, an enrolled member of the Navajo Nation who resides in Navajo, N.M., pleaded guilty this morning to brandishing a firearm during a crime of violence. Under the terms of his plea agreement, Muskett will be sentenced to seven years in federal prison followed by a term of supervised release to be determined by the court. Muskett’s guilty plea was announced by Acting U.S. Attorney Steven C. Yarbrough and Director John Billison of the Navajo Nation Division of Public Safety.
Muskett was arrested on March 1, 2013, based on a criminal complaint charging him with assault with a dangerous weapon, using a firearm during a crime of violence and aggravated burglary. He subsequently was indicted and charged with committing the following offenses in Navajo, N.M., on Feb. 10, 2013: (1) assault with a dangerous weapon; (2) aggravated burglary; (3) brandishing a firearm during a crime of violence; and (4) negligent child abuse.
According to court records, on Feb. 10, 2013, Muskett forced his way at gunpoint into a Navajo residence occupied by a woman and a young child. Muskett pointed his firearm at the adult victim, demanded money from her, and threatened to shoot her. While Muskett was rummaging in the kitchen, the victim managed to push Muskett out of the residence and lock him out. After ensuring the child victim’s safety, the adult victim called the police and reported the break-in and assault. Officers were able to locate Muskett by following footsteps in the snow. Muskett was arrested on tribal charges and remained in tribal custody until his arrest on federal charges.
During this morning’s proceedings, Muskett entered a guilty plea to Count 3 of a superseding indictment charging him with brandishing a firearm during a crime of violence. In his plea agreement, Muskett admitted brandishing a .22 caliber revolver while committing a crime of violence. More specifically, Muskett admitted pointing the firearm at the adult victim with the intention of committing the felony offenses of assault with a dangerous weapon and aggravated battery.
Muskett was remanded into federal custody after entering his guilty plea and will remain detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Window Rock office of the Navajo Division of Public Safety with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant U.S. Attorneys Novaline D. Wilson and Kyle T. Nayback.
Minnesota Woman Sentenced for Failure to Pay Child Support and Failure to AppearRead the Press Release
United States Attorney Brendan V. Johnson announced that a Garden City, Minnesota, woman convicted of Failure to Pay Child Support and Failure to Appear was sentenced on November 4, 2013, by U.S. District Court Judge Charles B. Kornmann.
Jessica Lynn Voss, age 29, was sentenced to 5 years of unsupervised probation, a $100.00 special assessment to the Federal Crime Victims Fund, and child support restitution in the amount of $23,812.78 for failure to pay child support. In addition, she was sentenced to imprisonment of time served, 1 year of unsupervised probation, and a $100.00 special assessment to the Federal Crime Victims Fund for failure to appear.
Voss was indicted by a federal grand jury on October 10, 2012, for failing to pay over $19,000 in past due child support. She had been ordered by the Fifth Judicial Circuit Court, Roberts County, South Dakota, to pay $350.00 per month for her minor children, commencing December 1, 2007. At the time of indictment, she had not made a child support payment since August of 2009. After her initial appearance in federal court in South Dakota, she was released on bond.
Voss had a change of plea hearing scheduled for May 28, 2013. Through her attorney, the defendant conveyed that she was going to plead guilty. The defendant did not appear at her plea hearing and a warrant was issued for failure to appear. Voss pled guilty to the child support charge on August 5, 2013, and to the failure to appear charge on November 4, 2013.
This case was investigated by the Department of Health and Human Services, Office of Inspector General Assistant U.S. Attorney Thomas J. Wright prosecuted the case. The defendant was released from custody.Members of Illegal Drug Company Gallant Pharma Plead Guilty to Selling Misbranded DrugsRead the Press Release
ALEXANDRIA, Va. –Patricia Durr, 49, of Hopkinton, Massachusetts, and Lisa Coroniti, 46, of Philadelphia, Pennsylvania, both sales representatives for Gallant Pharma International Inc., headquartered in Arlington, Virginia, pleaded guilty today to selling misbranded Botox and other drugs.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Antoinette V. Henry, Special Agent in Charge of the Food and Drug Administration’s (FDA) Office of Criminal Investigations; Gary Barksdale, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Acting Special Agent in Charge Scot R. Rittenberg for U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Washington, D.C.; and M. Douglas Scott, Arlington Chief of Police, made the announcement after the pleas were accepted by United States District Judge Hilton.
Durr and Coroniti are the sixth and seventh members of Gallant Pharma, respectively, to enter guilty pleas:
- On October 3, 2013, sales representative Harvey Whitehead, 68, of Troy, Michigan, pleaded guilty to selling misbranded chemotherapy drugs and to engaging in unlicensed wholesale prescription drug distribution;
- On October 3, 2013, former sales representative Michael Merriam, 32, of Toronto, Canada, pleaded guilty to selling misbranded Botox;
- On October 8, 2013, Gallant Pharma office manager Robert Sparks, 30, of Springfield, Virginia, pleaded guilty to introducing misbranded drugs into interstate commerce;
- On October 15, 2013, Gallant Pharma co-founder and co-owner Talib Khan, 42, of Montreal, Canada and Barbados, pleaded guilty to selling misbranded chemotherapy and cosmetic drugs, and conspiracy to commit importation fraud, sell misbranded drugs, distribute prescription drugs without a license, and defraud the FDA; and
- On November 4, 2013, former Gallant Pharma office manager Tanya Smith, 40, of Springfield, Virginia, and Manassas, Virginia, pleaded guilty to introducing misbranded drugs into interstate commerce.
According to court documents, between October 2010 and August 2013, Durr sold more than $2.6 million in misbranded and non-FDA-approved intravenous chemotherapy drugs and injectable cosmetic drugs and devices (including tampered vials of Botox) to 33 doctors and medical practices in Massachusetts and Connecticut. Coroniti likewise admitted that, between June 2011 and August 2013, she sold more than $1.1 million in misbranded and non-FDA-approved intravenous chemotherapy drugs and injectable cosmetic drugs and devices to 15 doctors and medical practices in the greater Philadelphia, Pennsylvania, area.
Many of the drugs sold by Durr and Coroniti were required to contain a “black box” warning, the strongest warning issued by the FDA, which indicates that a drug has a significant risk of serious or life-threatening adverse effects. The versions sold by Gallant Pharma did not meet this or other FDA labeling requirements. Many of the drugs sold by Gallant Pharma were also subject to strict temperature controls and were required to be shipped in dry ice to protect the drug efficacy, which Gallant Pharma could not do.
Durr and Coroniti each face a maximum penalty of three years’ imprisonment when they are sentenced. Durr will be sentenced on February 28, 2014 and Coroniti on March 21, 2014. A jury trial is scheduled for January 6, 2014, for alleged Gallant Pharma co-founder and co-owner Syed “Farhan” Huda, 38, of Arlington, Virginia; his wife and alleged Gallant Pharma administrator Deeba Mallick, 36, of Arlington, Virginia; alleged supplier Mirwaiss Aminzada, 44, of Dubai, United Arab Emirates, and Montreal, Canada; and alleged drop-shipper and customer Anoushirvan Sarraf, 47, of Rockville, Maryland.
This case was investigated by FDA’s Office of Criminal Investigations, the Drug Enforcement Agency’s Group 33 Diversion Task Force, ICE, and the U.S. Postal Inspection Service, with assistance from the Arlington County Police Department. Assistant United States Attorneys Lindsay Kelly, Ryan Dickey, Jay Prabhu, and Maya Song are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Manhattan U.S. Attorney Announces Fraud Charges Against Provider of Services for Special Needs Preschool StudentsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Thomas P. DiNapoli, the New York State Comptroller, Richard Condon, the Special Commissioner of Investigation for New York City’s Department of Education, and Brian M. Hickey, the Special Agent-in-Charge of the Northeastern Region of the United States Department of Education’s Office of Inspector General (“ED-OIG”), announced today the arrest of CHEON PARK, owner and executive director of Bilingual SEIT, a federal, New York State, and New York City funded provider of special education services and preschool programs to New York City preschool children. PARK was arrested this afternoon and presented in Manhattan federal court before U.S. Magistrate Judge Ronald L. Ellis.
Manhattan U.S. Attorney Preet Bharara said: “Cheon Park allegedly orchestrated multiple schemes to enrich himself by taking funds intended for special needs children and diverting them into his own coffers. As today’s arrest makes clear, we will not tolerate individuals who cheat local, state, and federal government under the guise of helping children, and will do everything in our power to hold them accountable.”
New York State Comptroller Thomas P. DiNapoli said: “As alleged, Cheon Park blatantly ripped off taxpayers for hundreds of thousands of dollars, partly through kickbacks, to support his lavish lifestyle, even going as far as using the public’s money to clean his house. Our audits and investigations of special education providers have uncovered too much fraud and abuse that is depriving students with special needs of the resources intended for them. I urge the Governor to sign our bill that mandates an audit of every provider and give taxpayers assurance their money is being well-spent. I commend U.S. Attorney Preet Bharara for prosecuting Park and bringing abusers of the special education system to justice. I look forward to continuing this partnership.”
SCI Special Commissioner Richard J. Condon said: “As alleged, Park, through Bilingual SEIT, used a contract with the New York City Department of Education to misappropriate public funds for his own benefit. At the same time, Park allegedly deprived the neediest of preschool students of essential mandated services. This is one of a series of investigations that my office is conducting with the U.S. Attorney for the Southern District of New York.”
ED-OIG Special Agent-in-Charge Brian M. Hickey said: “Today’s arrest relates to allegations that Mr. Park not only knowingly and willfully abused his position of trust for personal gain, but did so at the expense of special needs students. That is completely unacceptable. Tracking down those who would cheat the children and families that rely on special education programs is a priority of our office.”
The following allegations are based on the Complaint unsealed today in Manhattan federal court:
Between 2005 and 2012, PARK engaged in a conspiracy to defraud the federal government, New York State, and New York City of millions of dollars by deliberately inflating both the amount of compensation Bilingual SEIT paid certain of its employees and contractors, and the type of work performed by certain employees on annual certified consolidated fiscal reports (“CFRs”) and financial statements submitted to the New York State Education Department (“NYSED”) and the New York City Department of Education (“NYCDOE”).
PARK owned and operated Bilingual SEIT from at least 2005 to 2012. During that time, Bilingual SEIT had a contract with the NYCDOE to provide publicly funded special education services and preschool programs to New York City schoolchildren aged three to five with physical, emotional, and/or developmental disabilities. Specifically, Bilingual SEIT received funding to provide: (1) special education itinerant teacher, commonly referred to as SEIT, services; (2) special education classes in a center-based setting for preschool students with special needs; (3) individual evaluations for preschool students with disabilities; and (4) physical, occupational, and/or speech therapy for preschool students who qualified for such services. As of September 2012, Bilingual SEIT operated out of five locations in Manhattan, Queens, and Brooklyn.
During the seven-year period that Bilingual SEIT was under contract with the NYCDOE, it claimed reimbursement for and received approximately $94.5 million in federal, New York State, and New York City funding to provide the services described above. In order to receive such money, on behalf of Bilingual SEIT, PARK was required to file a CFR supported by audited financial statements with the NYSED. The CFR and audited financial statements represented the costs that Bilingual SEIT had incurred the previous year and the justification for those costs, and included compensation Bilingual SEIT purported to pay its employees and contractors. Each year, PARK signed the certification pages for the CFRs filed with the NYSED, which relied on the CFR and audited financial statements in determining the amount of public funds to pay Bilingual SEIT per student for the services Bilingual SEIT provided to New York City preschool students.
Beginning in approximately June 2011, the New York State Comptroller’s office (the “Comptroller”) conducted an audit of Bilingual SEIT to determine whether the costs reported by Bilingual SEIT on the CFRs for the years July 2007 through 2009 were properly calculated, justified, and allowable under guidance issued by the NYSED. In July 2012, the Comptroller issued a report that concluded that nearly $1.5 million of the costs that PARK certified for the two-year audit period should have been disallowed, including money paid to 26 employees whose time and attendance could not be substantiated. As a result of the Comptroller’s report, the NYCDOE cancelled Bilingual SEIT’s classes and declined to renew its contract with Bilingual SEIT.
In fact, PARK engaged in several schemes designed to inflate the costs Bilingual SEIT represented it incurred, resulting in more public money for Bilingual SEIT, much of which, as set forth below, was kicked back to PARK.
Specifically, PARK engaged in three different fraudulent schemes. First, PARK fraudulently received funds from New York State and New York City to pay multiple individuals who performed little or no work for Bilingual SEIT. At PARK’s request and direction, these individuals then kicked back as much as 50% of the salary they fraudulently received from Bilingual SEIT to PARK. For example, PARK asked an individual who sporadically evaluated children for Bilingual SEIT (“Individual-3”) to accept payment from Bilingual SEIT in exchange for kicking back 50% of the payments to PARK. Individual-3 agreed, and kicked back approximately $3,500 a month in cash to PARK each month during the period between 2005 and 2008. During the Comptroller’s audit, PARK asked Individual-3 to sign various documents that falsely indicated that Individual-3 actually worked for Bilingual SEIT during the years 2007 through 2009.
Second, PARK fraudulently received funds from New York State and New York City to deliberately overpay other individuals who worked for Bilingual SEIT. At PARK’s request and direction, these individuals also kicked back a portion of the overpayment to PARK on a regular basis. For example, in 2006, PARK hired an individual as an office worker for Bilingual SEIT (“Individual-4”). Shortly after Individual-4 began working for Bilingual SEIT, PARK asked Individual-4 to kick back to PARK approximately $2,200 a month from Individual-4’s monthly salary. Individual-4 agreed to do so, and kicked-back approximately $2,200 a month to Park until Individual-4 stopped working for Bilingual SEIT in 2011.
Third, in addition to receiving kickbacks, PARK used Bilingual SEIT funds for his personal benefit in other ways. PARK arranged for Bilingual SEIT to pay his ex-wife and ex-sister-in-law for work they did not perform. According to various CFRs filed with the NYSED, PARK’s ex-wife served as Bilingual SEIT’s “Assistant Executive Director,” the second most senior executive at Bilingual SEIT. For the years 2006 through 2012, PARK’s ex-wife was one of the most highly compensated employees at Bilingual SEIT. According to witness interviews, as well as the audit performed by the Comptroller, PARK’s ex-wife did not function as the “Assistant Executive Director,” and, to the extent she performed any functions at all at Bilingual SEIT, she was an office worker. PARK also arranged to have Bilingual SEIT pay his ex-sister-in-law, who, according to witnesses, never worked at Bilingual SEIT. Finally, PARK also arranged for Bilingual SEIT to pay for tutoring for PARK’s children and for a Bilingual SEIT employee to clean PARK’s home twice a week.
PARK, 46, of Manhasset, New York, is charged with conspiracy to commit mail fraud, which carries a maximum term of 20 years in prison, and one count of mail fraud, which also carries a maximum term of 20 years in prison.
Mr. Bharara praised the investigative work of the Office of the State Comptroller, the Special Commissioner of Investigation for New York City’s Department of Education, the Office of Inspector General for the United States Department of Education. He also thanked the Queens County District Attorney’s Office for its assistance.
This case is being prosecuted by the Office’s Public Corruption Unit. Assistant United States Attorneys Paul Krieger, Rebecca Ricigliano, and Martin Bell are in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Cheon Park Complaint 13Mag2624
Manhattan U.S. Attorney Announces $5 Million Settlment of Civil Forfeiture Claim Against Dutchess County Medical PracticeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States has filed, and simultaneously settled, a civil forfeiture lawsuit against the assets of Mid Hudson Medical Group, P.C. (“MHMG”). The Government’s action alleges that MHMG received millions of dollars in proceeds from two schemes to defraud Medicare, the New York State Insurance Fund, and private health insurance providers (collectively, the “Health Insurance Providers”). The stipulation and order of settlement (the “Settlement”) requires MHMG to forfeit $5 million to the United States. The Government submitted the Settlement for approval this afternoon to U.S. District Judge Vincent L. Briccetti, who is presiding over the matter, captioned United States v. $5,000,000.00 in U.S. Currency, 13 Civ. 7898 (VB).
Manhattan U.S. Attorney Preet Bharara said: “The laws are clear and formidable when it comes to the bilking of health insurance providers: you cannot be permitted to keep and enjoy illicit proceeds of fraud. This Office and its partners will make every effort to intercept such activity wherever we find it.”
According to the Verified Complaint and other publicly filed documents:
Between at least 2006 and July 2011, Spyros Panos, an orthopedic surgeon and MHMG shareholder, engaged in an unlawful scheme to defraud Health Insurance Providers, in which Panos submitted, and caused MHMG to submit, fraudulent information to the Health Insurance Providers regarding the nature and details of surgical procedures he performed. As a result, the Health Insurance Providers paid MHMG millions of dollars more than MHMG was entitled to receive for the actual work that Panos did perform. On October 31, 2013, Panos pled guilty to one count of engaging in a scheme to commit health care fraud, in a criminal case captioned United States v. Spyros Panos, 13 Cr. 800 (NSR).
Additionally, from approximately 2009 through June 2012, certain employees of MHMG, who were responsible for submitting requests for pre-authorization/certification from certain Health Insurance Providers for Magnetic Resonance Imaging tests (“MRIs”), submitted requests to Health Insurance Providers in which the employees included details regarding patients’ history that the employees knew were necessary in order to obtain the approvals, but which the employees had no reason to know was or was not truthful, and which in at least some cases was not truthful. As a result, Health Insurance Providers paid MHMG more for MRI tests than MHMG was entitled to receive.
Under the terms of the Settlement, MHMG is awarded credits for reimbursements it has already made to certain Health Insurance Providers, and MHMG is required to transfer an additional $3.67 million to the United States pursuant to an agreed-upon schedule. The Settlement amount represents an estimate of the amount of proceeds MHMG obtained from Health Insurance Providers as a result of the alleged unlawful activity and is not a final determination by the Government as to the loss amounts incurred by all Health Insurance Providers, collectively or individually, as a result of the unlawful activity.
Mr. Bharara praised the work of the United States Postal Inspection Service, the United States Department of Health and Human Services – Office of Inspector General, and the Federal Bureau of Investigation, and thanked the United States Department of Health and Human Services, Office of Counsel to the Inspector General and Office of General Counsel, the New York State Insurance Fund, and the New York Workers’ Compensation Board Office of the Fraud Inspector General for their assistance.
This case is being handled by the White Plains Division. Assistant United States Attorneys Lee Renzin and Daniel Filor are in charge of the case.
MHMG Forfeiture Stip Settlement.Filed
MHMG Forfeiture Complaint.FiledLutz, Fla., Man Convicted on Drug Distribution and Sex Trafficking ChargesRead the Press Release
Acting U.S. Attorney A. Lee Bentley III and Acting Assistant Attorney General Jocelyn Samuels of the Civil Rights Division today announced the conviction of Andrew Blane Fields, 62, of Lutz, Fla., in the Middle District of Florida on charges of possession with intent to distribute controlled substances, namely Oxycodone, Dilaudid and Morphine, and sex trafficking by force, fraud and coercion. Fields faces a mandatory minimum of 15 years in prison and a statutory maximum of life in prison on each of the five sex trafficking convictions.
In a superseding indictment returned Aug. 22, 2013, a federal grand jury charged Fields with engaging in a sex trafficking scheme whereby he controlled his victims by supplying them with highly addictive controlled substances and by using their fear of withdrawal symptoms to force them into prostitution for his profit. At trial, the government presented evidence that the defendant recruited vulnerable young women who were engaging in prostitution or performing at strip clubs and then rapidly escalated their drug use into full-blown addiction. Other evidence included the testimony of five victims of the defendant’s scheme, quantities of narcotics seized from the defendant’s possession and images of the defendant surreptitiously distributing narcotics to a hospitalized victim.
During the execution of a federal search warrant, law enforcement officers recovered thousands of prescription pills from Fields' residence. As a result, Fields was charged by criminal complaint on March 20, 2013 and by indictment on April 18, 2013.
“This defendant preyed on vulnerable members of our society--young women living in the shadows and on the margins, struggling to get by,” said Acting Assistant Attorney General Jocelyn Samuels of the Civil Rights Division. “Using false promises to lure them in, he cruelly exploited them for his own profit, destroying them with drugs and selling them for sex, using highly addictive illegal drugs to hold them under his control. Our Constitution guarantees freedom from involuntary servitude and slavery to all members of our society, and we will continue to enforce our human trafficking laws to restore freedom and dignity to victims of modern day slavery.”
“Today’s verdict provides a measure of justice for the vulnerable victims this defendant systematically forced into prostitution,” said Acting U.S. Attorney A. Lee Bentley III. “The United States Attorney’s Office and the Civil Rights Division are committed to prosecuting all human trafficking, regardless of the form it takes.”
“Sex trafficking is one of the most heinous crimes our special agents investigate and HSI is committed to protecting those who cannot protect themselves”, said Susan McCormick special agent in charge of HSI Tampa. “These cases are extremely difficult to investigate and prosecute and it would not be possible without the hard work and dedication of our special agents and law enforcement partners.”
This case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), with the assistance of the Clearwater Police Department and members of the Clearwater Area Human Trafficking Task Force. It is being prosecuted by Assistant U.S. Attorney Josephine W. Thomas and Trial Attorney William E. Nolan with the Civil Rights Division's Human Trafficking Prosecution Unit.
Lutz, FLA., Man Convicted on Drug Distribution and Sex Trafficking ChargesRead the Press Release
WASHINGTON – Acting U.S. Attorney A. Lee Bentley III and Acting Assistant Attorney General Jocelyn Samuels of the Civil Rights Division today announced the conviction of Andrew Blane Fields, 62, of Lutz, Fla., in the Middle District of Florida on charges of possession with intent to distribute controlled substances, namely Oxycodone, Dilaudid and Morphine, and sex trafficking by force, fraud and coercion. Fields faces a mandatory minimum of 15 years in prison and a statutory maximum of life in prison on each of the five sex trafficking convictions.
In a superseding indictment returned Aug. 22, 2013, a federal grand jury charged Fields with engaging in a sex trafficking scheme whereby he controlled his victims by supplying them with highly addictive controlled substances and by using their fear of withdrawal symptoms to force them into prostitution for his profit. At trial, the government presented evidence that the defendant recruited vulnerable young women who were engaging in prostitution or performing at strip clubs and then rapidly escalated their drug use into full-blown addiction. Other evidence included the testimony of five victims of the defendant’s scheme, quantities of narcotics seized from the defendant’s possession and images of the defendant surreptitiously distributing narcotics to a hospitalized victim.
During the execution of a federal search warrant, law enforcement officers recovered thousands of prescription pills from Fields' residence. As a result, Fields was charged by criminal complaint on March 20, 2013 and by indictment on April 18, 2013.
“This defendant preyed on vulnerable members of our society--young women living in the shadows and on the margins, struggling to get by,” said Acting Assistant Attorney General Jocelyn Samuels of the Civil Rights Division. “Using false promises to lure them in, he cruelly exploited them for his own profit, destroying them with drugs and selling them for sex, using highly addictive illegal drugs to hold them under his control. Our Constitution guarantees freedom from involuntary servitude and slavery to all members of our society, and we will continue to enforce our human trafficking laws to restore freedom and dignity to victims of modern day slavery.”
“Today’s verdict provides a measure of justice for the vulnerable victims this defendant systematically forced into prostitution,” said Acting U.S. Attorney A. Lee Bentley III. “The United States Attorney’s Office and the Civil Rights Division are committed to prosecuting all human trafficking, regardless of the form it takes.”
“Sex trafficking is one of the most heinous crimes our special agents investigate and HSI is committed to protecting those who cannot protect themselves”, said Susan McCormick special agent in charge of HSI Tampa. “These cases are extremely difficult to investigate and prosecute and it would not be possible without the hard work and dedication of our special agents and law enforcement partners.”
This case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), with the assistance of the Clearwater Police Department and members of the Clearwater Area Human Trafficking Task Force. It is being prosecuted by Assistant U.S. Attorney Josephine W. Thomas and Trial Attorney William E. Nolan with the Civil Rights Division's Human Trafficking Prosecution Unit.
Logan Men Enter Guilty Pleas in Connection with Arson SchemeRead the Press Release
Defendants conspired to set blaze to Logan office building to collect $1 million insurance payment
CHARLESTON, W.Va. – Two men entered guilty pleas in federal court today in connection with a Logan arson scheme, announced U.S. Attorney Booth Goodwin. James Gregory Glick, and co-defendant Guy R. Miller, 39, both pleaded guilty to arson and conspiracy to commit mail and wire fraud. Glick, 44, of Logan, also pleaded guilty to conducting unlawful monetary transactions, and structuring currency transactions in connection with the scheme.
In November 2011, Glick arranged to have an office building located at 111 Stratton Street in Logan burned to collect more than $1 million in insurance proceeds. In late December 2011, the building was purchased by a known person for $45,000 prior to the scheme. That person, in turn, immediately sold the property to Glick in early January 2012 purportedly for $50,000.
During the scheme, Mr. Glick then paid William Jamey Thompson, 44, an independent insurance agent from Chapmanville, approximately $50,000 to obtain a fraudulently-inflated $1 million insurance policy from General Star Indemnity Company (“General Star”) in connection with the scheme.
On the night of February 1, 2012, Guy Miller, Shawn C. Simon, 41, of Charleston and another associate worked together to set the fire by spreading gasoline throughout the main floor.
Additionally, Mr. Glick made illegal transactions of more than $10,000 from the Logan Bank & Trust (“LB&T”) on more than nine occasions. Mr. Glick also structured more than $170,000 in monies from accounts at LB&T during the conspiracy. “Structuring” involves the breaking down of cash transactions in amounts of $10,000 or less for the purpose of avoiding a financial institution’s reporting requirements to the Internal Revenue Service (IRS).
Glick faces a minimum of seven years in prison when he is sentenced on February 19, 2014, by United States District Judge Thomas E. Johnston.
Miller, who also pleaded guilty today to a federal drug charge, participated in an oxycodone distribution conspiracy in and around Logan County during the spring of 2011. In the weeks following July 3, 2011, Miller made several trips to Florida to illegally obtain more than 1,000 oxycodone pills.
Miller faces a minimum of seven years in prison when he is sentenced on February 19, 2014.The plea hearings for Thompson and Simon are set for Thursday, Nov. 7, 2013.
The West Virginia State Police and the IRS conducted the investigation. Assistant United States Attorney Thomas Ryan is in charge of the prosecution.
The case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Local Doctor Pleads Guilty to Making False Statement to AgentRead the Press Release
St. Louis, MO – DR. ERICK FALCONER pled guilty to making a false statement to federal agents regarding his purchases of misbranded Botox® from a foreign unlicensed drug wholesaler, some of which had counterfeit exterior packaging.
According to court documents, during the summer of 2009, Dr. Falconer received a facsimile transmission from an unlicensed drug wholesaler that offered low prices for assorted prescription drugs, including “Botox (Turkish)” for $354.99 a vial, listing a 1-800 telephone number and an individual’s “g-mail” address for contact purposes. The facsimile was sent to his medical practice, The Youthful Body, Inc., in Florissant, Missouri. During this same time frame, the FDA-approved version of Botox® was sold through licensed drug wholesales at higher prices in the United States, typically $525 a vial. From August 2009 through February 2013, Dr. Falconer and his corporation made over fifty separate purchases of these counterfeit drugs, which he provided to his patients without informing them of the source of the drugs. During an interview in February 2013 with special agents of the U.S. Food and Drug Administration (“FDA”), Dr. Falconer told the agents he had only made three purchases of the illegal drugs from this unlicensed foreign wholesaler. On April 26, 2013, FDA issued an alert regarding “fraudulent versions of Botox found in the United States” with counterfeit exterior cartons.
Falconer, of St. Louis, Missouri, pled guilty to one felony charge of making a false statement before United States District Judge Carol E. Jackson. Sentencing has been set for February 4, 2014.
Dr. Falconer faces a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the U.S. Food and Drug Administration, with assistance from the Office of Inspector General for the U.S. Department of Health and Human Services.
Jamesville Man Sentenced to 540 Months for Producing Child PornographyRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today MEREDITH CLIFTON COOK, 47, was sentenced by Federal District Court Judge Louise W. Flanagan to 540 months imprisonment followed by a lifetime of supervised release and a fine of $50,000 for two counts of producing child pornography.
Investigation of this case was conducted by the Federal Bureau of Investigation with the assistance of the Martin County Sheriff’s Office. Prosecution was coordinated with the Martin County District Attorney’s Office. Assistant United States Attorneys Jay Exum and Ethan Ontjes handled the case for the United States.
U.S. Attorney Thomas G. Walker commented, “This is one of the worst cases of child sexual abuse and exploitation ever discovered in our district,” said Walker. “To sexually abuse the most helpless of children and then share that abuse with the world is conduct that cannot and should not be tolerated.”
Two separate offices of the Federal Bureau of Investigation – one in Charlotte, the other in Houston, Texas – developed leads in June of 2011 that an individual later determined to be COOK was engaged in trading child pornography over a peer-to-peer network frequented by child pornography traffickers. Investigators traced the account to Jamesville, North Carolina, leading to a search in November of 2011. Investigators discovered that COOK had amassed a massive library of multiple hundreds of thousands of child pornography images and videos and that he had been actively talking about his interest in the sexual abuse of infants online. After the initial search, investigators discovered that COOK had recorded his own sexual abuse of multiple children and redistributed the images over the internet. The victims were all younger than 7 years of age.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.Illegal Alien from the Domincan Republic SentencedRead the Press Release
Defendant Who Illegally Re-Entered the United States Sentenced to Ten Months Imprisonment
ALBANY, NEW YORK—HERMIS ANTONIO ADAMES, age 35, a citizen of the Dominican Republic, was sentenced today to ten months of imprisonment for illegally reentering the United States after removal by Chief United States District Court Judge Gary L. Sharpe, announced United States Attorney Richard S. Hartunian and Michael T. Phillips, Field Office Director, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations. Following ADAMES’ sentence he will be remanded to the Department of Homeland Security for removal proceedings. Today’s sentencing followed ADAMES’ July 9, 2013, guilty plea.
ADAMES, a citizen of the Dominican Republic, was involuntarily removed from the United States to the Dominican Republic on May 6, 2009. On April 3, 2013, ADAMES, who did not have permission to re-enter the United States, was encountered by Immigration and Customs Enforcement officers in Albany, New York.
This case was investigated by the Department of Homeland Security, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, Albany, New York.
Hilliard Woman Sentenced to 5-1/2 Years in Prison for Role in Mortgage Fraud SchemesRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Deborah L. Kistner, 50, Hilliard, Ohio was sentenced to 66 months in prison, five years of supervised release and ordered to repay victims $9,644,601.84 for deceiving lenders while securing fraudulent real estate loans in three different conspiracies between July 2006 and July 2010. Her husband, Mark A. Kistner, 52, was sentenced to five years of probation, ordered to forfeit his retirement account worth about $300,000 and make restitution of $381,764.92.
Carter M. Stewart, United States Attorney for the Southern District of Ohio; Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI) and other agencies participating in the mortgage fraud task force announced the sentences imposed by U.S. District Judge Gregory L. Frost.
“Over five years, Kistner participated in an ongoing, multi-million dollar mortgage fraud in which banks and lending institutions were defrauded out of several million dollars in mortgage loans,” Assistant U.S. Attorney Laura Fulton told the court prior to sentencing. " Her role as a title agent mandated that she be a ‘gatekeeper’ for banks funding these mortgages, and she violated that position of trust.”
The Hilliard couple pleaded guilty on January 18, 2013, four days after their trial started. Deborah Kistner pleaded guilty to three counts of conspiracy to commit bank fraud, three counts of conspiracy to commit money laundering, and one count of bank fraud. Mark Kistner pleaded guilty to one count of conspiracy to commit money laundering.
Deborah Kistner operated Premiere Title Company in Hilliard. She deceived lenders in connection with the purchases of real estate in Ohio and Florida. She conspired with others to secure inflated loans for real estate and kept the excess proceeds or used them to pay others involved in the conspiracy. Deborah Kistner intentionally failed to provide lenders with critical purchase contract language and accurate settlement statements.
Deborah and Mark Kistner also schemed to defraud lenders and launder the money they received through simultaneous “short sale” closings where the lenders would agree to absorb losses on existing mortgage loans while Deborah Kistner actually sold those properties on the same day for a profit and laundered the profits through bank accounts controlled by Mark Kistner.
Stewart commended the cooperative investigation of this case by IRS and FBI agents, and Assistant U.S. Attorney’s Laura Fulton and Dan Brown, who prosecuted the case.