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Wednesday 28 August 2013
New York Man Admits Role in Foreign Student Visa Fraud SchemeRead the Press Release
NEWARK, N.J. – A New York man today admitted his role in a widespread foreign student visa fraud that took place in Iselin and Jersey City, U.S. Attorney Paul J. Fishman announced.
Manamadurai Somalingam, 64, of Pelham, N.Y., pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with one count of conspiring to commit visa fraud and one count of conspiring to conceal and harbor illegal aliens for private financial gain.
According to documents filed in this case and statements made in court:
Somalingam admitted that from March 2011 through May 2012, while he was the owner of a school called PC Tech Learning with campuses in Iselin and Jersey City, he engaged in a conspiracy to obtain student visas for foreign citizens who were not eligible for such visas. Somalingam admitted that he falsely certified that a woman he hired to work for him at the Jersey City campus of PC Tech was eligible for a student visa even though he knew that she would be working full-time and was not eligible.
He also admitted that he never terminated a foreign citizen’s student status as long as that individual paid his tuition fees, even though Somalingam, as the primary designated school official for PC Tech, was required to terminate any student who failed to make proper progress in his studies.
The conspiracy to commit visa fraud charge to which Somalingam pleaded guilty is punishable by a maximum potential penalty of five years in prison, and the conspiracy to harbor illegal aliens charge is punishable by a maximum potential penalty 10 years in prison. Both offenses are also subject to a maximum fine of $250,000. Sentencing before U.S. District Judge Anne E. Thompson is scheduled for Dec. 5, 2013.
U.S. Attorney Fishman credited special agents of U.S. Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Shana W. Chen of the Economic Crimes Unit in Newark.
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Defense counsel: Timothy R. Anderson Esq., Red Bank, N.J.Somalingam Information
New Philadelphia Man Charged with Child Pornography CrimesRead the Press Release
Brian Meck, 25, of New Philadelphia, Ohio, was charged with production of child pornography, receipt and distribution of visual depictions of real minors engaged in sexually explicit conduct, and possession of child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that between the dates of August 31, 2011 and September 30, 2011, Meck produced visual depictions of a minor engaged in sexually explicit conduct, using materials that were mailed, shipped, or transported in or affecting interstate or foreign commerce.
During that same date range, Meck received and distributed in interstate and foreign commerce, numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct. In addition, on or about August 2, 2013, Meck possessed an Apple laptop computer that contained child pornography, which had been shipped and transported, or was produced using materials that had been shipped and transported, in interstate and foreign commerce by any means including by computer, according to the indictment.
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Northern District of Ohio Assistant United States Attorney Carol M. Skutnik. The case was investigated by the Federal Bureau of Investigation, Canton Resident Agency.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Mri Diagnostic Testing Company, Imagimed Llc, and Its Former Owners and Chief Radiologist to Pay $3.57 Million to Resolve False Claims Act AllegationsRead the Press Release
Performed MRI Scans Without Doctor Supervision
ALBANY, NEW YORK - United States Attorney Richard S. Hartunian announced that New York-based Imagimed LLC, the company’s former owners, William B. Wolf III and Dr. Timothy J. Greenan, and the company’s former chief radiologist, Dr. Steven Winter, will pay $3.57 million to resolve allegations that they submitted to federal healthcare programs false claims for magnetic resonance imaging (MRI) services. Imagimed owns and operates fifteen MRI facilities, located primarily in New York State, under the name “Open MRI.”
Allegedly, from July 1, 2001, through April 23, 2008, Imagimed, Greenan, Wolf and Winter submitted claims to Medicare, Medicaid and TRICARE for MRI scans performed with a contrast dye without the direct supervision of a qualified physician. Since a potential adverse side effect of contrast dye is anaphylactic shock, federal regulations require that a physician supervise the administration of contrast dye when it is used for an MRI. Also, allegedly, from July 1, 2005, to April 23, 2008, Imagimed, Greenan, Wolf and Winter submitted claims for services referred to Imagimed by physicians with whom Imagimed had improper financial relationships. In exchange for these referrals, Imagimed entered into sham on-call arrangements, provided pre-authorization services without charge and provided various gifts to certain referring physicians, in violation of the Stark Law and the Anti-Kickback Statute.
“The Department of Justice is committed to guarding against abuse of federal healthcare programs,” said Stuart F. Delery, Assistant Attorney General for the Civil Division. “We will help protect patients’ health by ensuring doctors who submit claims to federal healthcare programs follow proper safety precautions at all times.”
U.S. Attorney for the Northern District of New York, Richard S. Hartunian said: “This case is an example of our commitment to using all of the remedies available, including civil actions under the False Claims Act, to ensure patient safety and combat health care fraud. Stripping away the profit motive for circumventing physician supervision requirements has both a remedial and a deterrent effect. The settlement announced today advances our critical interest in both the integrity of our health care system and the safe delivery of medical services.”
The allegations resolved by the settlement were brought in a lawsuit filed under the False Claims Act’s whistleblower provisions, which permit private parties to sue for false claims on behalf of the government and to share in any recovery. The whistleblower in this case, Dr. Patrick Lynch, was a local radiologist and will receive $565,500.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $14.8 billion through False Claims Act cases, with more than $10.8 billion of that amount recovered in cases involving fraud against federal health care programs.
The investigation and settlement were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York; the Justice Department’s Civil Division, Commercial Litigation Branch and the Department of Health and Human Services’ Office of Inspector General.
The case is United States of America ex rel. Lynch v. Imagimed LLC, et al. (N.D. N.Y.). The claims released by the settlement are allegations only, and there has been no determination of liability.
Michelle Renee Kindness Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on August 28, 2013, before Senior U.S. District Judge Jack D. Shanstrom, MICHELLE RENEE KINDNESS, a 48-year-old resident of Billings, was sentenced to a term of:
Prison: 98 months
Special Assessment: $100
Supervised Release: 5 years
KINDNESS was sentenced in connection with her guilty plea to conspiracy to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
After learning that KINDNESS routinely brought methamphetamine onto the Northern Cheyenne Indian Reservation for distribution, Bureau of Indian Affairs (BIA) drug unit agents began an investigation into KINDNESS. During the investigation, the BIA received reports from the FBI indicating that KINDNESS had been involved with trafficking meth since at least 2005, and that KINDNESS had purchased and sold twelve ounces of meth during the FBI investigation. FBI agents had purchased eight 1/2 gram baggies containing meth directly from KINDNESS.
On January 9, 2007, KINDNESS was arrested on the Crow Indian Reservation. During the arrest KINDNESS had several paper bindles of meth on her person.
The BIA drug unit conducted a controlled purchase of two grams of meth directly from KINDNESS on December 20, 2010.
On November 29, 2011, agents interviewed an individual in custody on tribal charges of possession of methamphetamine. The individual told the agents that she had purchased 1/2 ounce of meth directly from KINDNESS, in October 2011, and that she saw another 1/2 ounce of meth during the deal.
On April 30, 2012, KINDNESS was arrested on the Northern Cheyenne Indian Reservation for intoxication. During a search incident to arrest, three grams of meth and $6,985 were found in KINDNESS's pants pockets.
On May 27, 2012, less than 30 days after the previous arrest, KINDNESS was arrested for DUI, which involved a head-on collision with a tractor and trailer. Once again, during a search incident to arrest, law enforcement seized 31 paper bindles of meth, 3.8 grams of loose meth in a plastic baggie, and $1,020.
On May 1, 2012, during an in-custody interview with KINDNESS, KINDNESS admitted that she had purchased and sold over one pound of meth over the past year.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that KINDNESS will likely serve all of the time imposed by the court. In the federal system, KINDNESS does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Bureau of Indian Affairs.
Michael Bearhill, Jr. Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on August 27, 2013, before Chief U.S. District Judge Dana L. Christensen, MICHAEL BEARHILL, JR., a 21-year-old resident of Wolf Point and an enrolled member of a federally-recognized tribe, was sentenced to a term of:
Prison: 40 months
Special Assessment: $100
Supervised Release: 3 years
BEARHILL was sentenced in connection with his guilty plea to robbery.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
In the early hours of February 2, 2013, BEARHILL entered a convenience store in Wolf Point, which is within the exterior boundaries of the Fort Peck Indian Reservation, and pointed what appeared to be a gun at two employees behind the counter. He forced them to open the till while he continued to point the gun at an employee. An employee described the robber as having a blank stare, and she realized he was serious. He removed over $300 from the till and fled. He was later identified on video by other employees as BEARHILL.
When questioned, BEARHILL admitted to going into the convenience store, pulling a gun out of his coat, and telling the employees he wanted money.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that BEARHILL will likely serve all of the time imposed by the court. In the federal system, BEARHILL does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Fort Peck Tribes Criminal Investigation Division.
Mexican Who Tried to Threaten Girlfriend into Marriage Gets Federal Time for Illegally Re-Entering the CountryRead the Press Release
LAREDO, Texas – Alejandro Mendoza-Delgado, a 35-year-old citizen of Mexico, has been handed a more than two-year federal prison sentence for entering the United States illegally after having been deported, United States Attorney Kenneth Magidson announced today. Mendoza-Delgado pleaded guilty March 12, 2013.
Today, U.S. District Judge Diana N. Saldaña handed Mendoza-Delgado a sentence of 28 months. At the hearing, evidence established that Mendoza-Delgado was previously deported on Nov. 7, 2012, after serving a two-year sentence for using a pistol to threaten to kill his then girlfriend and her family if she did not marry him.
On Jan. 19, 2013, Border Patrol (BP) agents encountered Mendoza-Delgado at the BP checkpoint 29 miles north of Laredo as a passenger aboard a commercial bus headed for San Antonio. Agents arrested him after they discovered he did not have permission to enter or remain in the United States.
Agents ran a background check and discovered Mendoza-Delgado had been previously convicted for aggravated assault with a deadly weapon.
The investigation leading to the charges in this case was conducted by Border Patrol. Assistant United States Attorney Homero Ramirez prosecuted the case.
McHenry County Man Pleads Guilty to Making A False Declaration in Bankruptcy CaseRead the Press Release
ROCKFORD — A Wonder Lake, Ill. man pleaded guilty today in federal court before U.S. District Judge Frederick J. Kapala to one count of making a false declaration under penalty of perjury in a bankruptcy case filed in the United States Bankruptcy Court in Rockford. JAMES GROSSMAYER, 51, filed a Chapter 7 Bankruptcy Petition on September 19, 2008. As he admitted in his Plea Agreement, Grossmayer also filed a Schedule B listing his personal property on which he intentionally omitted his ownership interest in a New York Life Annuity. Grossmayer further admitted he signed his bankruptcy schedules under penalty of perjury, knowing that Schedule B was false, and that his interest in the annuity at that time was approximately $25,000.
The charge in this case carries a maximum penalty of 5 years’ imprisonment, and a fine of up to $250,000, or twice the gross gain or gross loss resulting from that offense, whichever is greater. The judge may also impose a sentence of probation of one to five years, and a term of supervised release of up to three years. The actual sentence will be determined by the United States District Court, guided by the Sentencing Guidelines. Grossmayer is scheduled to be sentenced on December 5, 2013, at 9:30 a.m.
The guilty plea was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Robert J. Shields, Jr., Acting Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation.
The government was represented by Assistant U.S. Attorney Michael D. Love.
Maryland Man Sentenced to 10 Years in Prison for Traveling into the District of Columbia to Engage in Illicit Sexual Conduct with A Minor and Possession of Child PornographyRead the Press Release
WASHINGTON - Charles Nickerson, Jr., 35, formerly of Stevensville, Md., was sentenced today to a 10-year prison term on charges of traveling interstate to engage in illicit sexual conduct with a minor and possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Nickerson pled guilty in June 2013 in the U.S. District Court for the District of Columbia. The plea agreement, which was contingent upon the Court’s approval, called for the 10-year prison term. The Honorable Ketanji B. Jackson approved the plea and sentenced Nickerson today. Upon completion of his prison term, Nickerson will be placed on 10 years of supervised release. He also will be required to register as a sex offender for a minimum of 25 years.
According to the government's evidence, on March 5, 2012, Nickerson contacted an undercover officer with the FBI's Child Exploitation Task Force, who had posted a message on a website that is frequented by individuals who have a sexual interest in children. As the online exchange continued, Nickerson sent the undercover officer, whom he believed was the father of an under-aged girl, five images of child pornography. During the conversation, they also discussed the possibility of meeting for the purpose of engaging in sexual acts with the child.
In the course of further communications, Nickerson arranged to meet with the undercover officer and the purported child on March 9, 2012. At about 7 that night, law enforcement stopped him in his vehicle in Northwest Washington and placed him under arrest. A search of Nickerson’s car led to the discovery of a blue bag with sex toys and personal lubricant.
Pursuant to a warrant, law enforcement searched Nickerson’s residence in Stevensville, Md., on March 12, 2012. Law enforcement seized a computer which contained numerous images of child pornography, including the five distributed to the undercover officer. As part of his guilty plea, Nickerson agreed to forfeiture of his car, computer, and other items.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the guilty plea, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorneys Cassidy Kesler Pinegar, David Last, and Amy H. Zubrensky, who investigated and prosecuted the case, and Catherine K. Connelly, who assisted with forfeiture issues.
13-295Manderson Man Pleads Not Guilty to MurderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Manderson, South Dakota, man has been indicted by a federal grand jury for allegedly using a blunt object to kill another man at Manderson on August 2, 2013.
Yankton was remanded to the custody of the U.S. Marshal. A trial date has not yet been set.
Leonard David Yankton, a/k/a Lenny Yankton, age 37, was indicted by a federal grand jury on August 13, 2013, for second-degree murder. Yankton appeared before U.S. Magistrate Judge Veronica L. Duffy on August 22, 2013, and pled not guilty to the indictment. The maximum penalty upon conviction is life imprisonment and a $250,000 fine.
The charge is merely an accusation and Yankton is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.Mandan Man Found Guilty of Felon in Possession ChargesRead the Press Release
BISMARCK– U.S. Attorney Timothy Q. Purdon announced that on Aug. 28, 2013, James A. Siegrist, a/k/a James A. Robinson, 33, Mandan, N.D., was found guilty by a federal jury on a charge of possession of firearm by a convicted felon and a charge of possession of firearms and ammunition by a convicted felon.
On July 25, 2012, near Glen Ullin, N.D., Siegrist was handling a .45 caliber handgun when it discharged and struck a woman in the leg. On March 19, 2013, in Mandan, N.D., Siegrist was arrested and found to be in possession of three handguns.
Siegrist was prohibited from possessing either a firearm or ammunition by virtue of multiple felony convictions, including possession of a controlled substance, forgery, counterfeiting, possession of drug paraphernalia and theft of property.
The charges each carry a statutory maximum penalty of 10 years in federal prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Morton County Sheriff’s Office and the Mandan Police Department.
Sentencing for Siegrist has been scheduled for Nov. 25, 2013, in U.S. District Court in Bismarck, N.D., at 10:00 a.m.
Assistant U.S. Attorney David Hagler is prosecuting the case.
Major Cocaine and Heroin Trafficker Pleads Guilty, Agrees to Forfeit $2.5 Million in AssetsRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Ronald Walker, 43, of Corona, N.Y., pleaded guilty before U.S. District Judge Frank P. Geraci, Jr., to conspiracy to distribute and possession with intent to distribute five kilograms or more of cocaine and one kilogram or more of heroin and conspiracy to commit money laundering. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, a fine of $10,000,000.00, or both. The defendant also agreed to the forfeiture of assets with a total value of $2,500,000 to the United States which represented the amount of proceeds from the drug trafficking conspiracy.
Assistant U.S. Attorney Frank H. Sherman, who handled the case, stated that between 2005 and August 2012, the defendant participated in a conspiracy to distribute cocaine and heroin. During that time, Walker, in New York City, arranged for the distribution of quantities of cocaine and heroin which was transported to Rochester and distributed. At least 40 kilograms of cocaine and a kilogram of heroin were involved in this conduct. The defendant also laundered drug proceeds by placing at least $911,000 in cash in safe deposit boxes opened by other individuals to conceal the proceeds.
In August 2012, law enforcement officials seized the cash from these safe deposit boxes, as well as approximately $615,000 in cash from two residences connected to Walker. The defendant agreed to forfeit all of that cash, as well as a 2012 Range Rover vehicle, articles of jewelry and two properties located in Corona, N.Y., and Union City, Georgia, all proceeds of his illegal activities.
The plea is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division, investigators with the Rochester Police Department, under the direction of Chief James Sheppard, and Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent in Charge Toni Weirauch, New York Field Office.
Sentencing is scheduled for Dec. 3, 2013, at 3:00 p.m. before Judge Geraci.Louisiana Man Guilty of Orange, Texas Bank RobberyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 49-year-old Cameron, LA, man has pleaded guilty to bank robbery in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Allen Keith Miller pleaded guilty to bank robbery today before U.S. Magistrate Judge Keith Giblin.According to information presented in court, on June 25, 2013, Miller entered the Capital One Bank branch office located on 16th Street in Orange, Texas, wearing a blonde wig, baseball cap, long-sleeve shirt, tan pants and a black knee brace. Miller approached a bank teller and presented a hand-written note advising that the bank was being robbed. Miller also advised that he was armed although a weapon was not displayed. Media outlets broadcast footage of the bank robbery and Miller was identified by citizens. Miller was stopped by law enforcement officers in Louisiana, at which time items from the robbery, including the wig, baseball cap, clothing, and knee brace, were located in Miller’s vehicle. Miller was indicted by a federal grand jury on July 11, 2013 and charged with bank robbery.
Miller faces up to 20 years in federal prison. A sentencing date has not been set.
This case is being investigated by the Federal Bureau of Investigation and the Orange Police Department and prosecuted by Assistant U.S. Attorney John Craft.
Local Man, Cristino Nunez, Pleads Guilty to Theft of Government MoneyRead the Press Release
CRISTINO NUNEZ, age 48, a resident of New Orleans, pled guilty in federal court today before U.S. District Court Judge Susie Morgan to theft of government money, announced U. S. Attorney Dana J. Boente.
According to the court records, from March 2001 through July 2011, NUNEZ stole approximately $186,917.50 from the Social Security Administration by obtaining Social Security Disability Insurance payments and other benefits to which he was not entitled.
NUNEZ faces a maximum sentence of ten years in prison, a maximum fine of $250,000, and up to three years of supervised release following any term of imprisonment. Sentencing is scheduled for November 20, 2013.
The case was investigated by the Social Security Administration-Office of Inspector General and is being prosecuted by Assistant U.S. Attorney Chandra Menon.
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Laredoans Sentenced in Alien Smuggling CaseRead the Press Release
LAREDO, Texas – Luis Alberto Loera, 27, and Anthony William Martinez, 19, both residents of Laredo, have been ordered to federal prison in relation to an alien smuggling conspiracy, United States Attorney Kenneth Magidson announced today. Both pleaded guilty Feb. 15, 2013.
Today, Senior U.S. District Judge George P. Kazen, who accepted the guilty pleas, sentenced Loera and Martinez to 80 and 60 months in prison, respectively. Both were further ordered to serve three-year-terms of supervised release following completion of their prison terms. In handing down the sentence, Judge Kazen took into consideration the extensive scope of the organization, the estimated number of aliens transported, the leadership roles of the defendants and their personal background. As a part of their supervised release, Judge Kazen also ordered Loera and Martinez to complete 150 and 120 hours of community service, respectively, after their release from federal custody.
Between July and August 2013, Loera and Martinez were suspected to be the organizers of several alien smuggling incidents involving numerous illegal aliens and stolen vehicles, but were never apprehended on scene by law enforcement. The investigation linked these two individuals as leaders and organizers of an extensive alien smuggling organization that coordinated the transportation and harboring of estimated several hundred illegal aliens over the course of several months.
At the time of their pleas, Loera and Martinez admitted to being involved in a long-running conspiracy to transport a large number of aliens within the United States for profit.
Both have been in custody where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Sonah Lee.
Joseph Michael Velk Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on August 27, 2013, before Chief U.S. District Judge Dana L. Christensen, JOSEPH MICHAEL VELK, a 24-year-old resident of Havre, was sentenced to a term of:
Prison: 8 months
Special Assessment: $100
Forfeiture: rifle
Supervised Release: 3 years
VELK was sentenced in connection with his guilty plea to being a felon-in-possession of a firearm and ammunition.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica A. Betley, the government stated it would have proved at trial the following:
On January 14, 2011, VELK was sentenced for felony burglary and felony criminal possession of dangerous drugs in the Twelfth Judicial District Court in Hill County and therefore prohibited from possessing firearms or ammunition.
On August 16, 2011, a Hill County Deputy was on patrol in an area of the county which had experienced recent break-ins. Around 3:39 a.m., the deputy observed a pickup in the same area. The deputy stopped the pickup for a traffic violation. The deputy identified the driver of the truck as VELK. The deputy also could see empty alcohol containers, a full Bud Light can, a large spotlight, and a dead rabbit in the truck. He also saw a rifle tucked between the driver's seat and driver's side door.
Later that same morning, law enforcement searched the pickup. During the search, the officers located a Henry Repeating Arms .22 Rifle, as well as an open box of Remington .22 shells. The officers found the shells by the clutch between the driver's seat and passenger seat. The rifle was still between the driver's seat and driver's side door.
When questioned, VELK admitted to possessing the Henry Repeating Arms .22 long rifle Lever Action and a box of Remington .22 shells.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that VELK will likely serve all of the time imposed by the court. In the federal system, VELK does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Havre Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jefferson City Man, Woman Indicted for $100,000 Student Loan FraudRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man and woman were indicted by a federal grand jury today for engaging in a bank fraud scheme in which they unlawfully received more than $100,000 in student loans under another person’s name.
Lisa Kay Baker, 52, and David Waymon Baker, 56, both of Jefferson City, were charged in an 11-count indictment returned by a federal grand jury in Jefferson City. Although Lisa and David Baker were married to each other at the time of the alleged criminal scheme, they divorced in 2009.
Today’s indictment alleges that Lisa and David Baker applied for student loans in the name of another person (identified in the indictment as “RLB”) without that person’s knowledge or consent from July 2005 to September 2007. In each application submitted, the indictment says, the applications were filled out by at least one or both of the defendants, and then one or the other (or a third person at their direction) would forge the signature of “RLB.”
In these loan applications, according to the indictment, Lisa Baker and David Baker, pretending to be “RLB,” concealed the fact that they were actually getting use of the money themselves and that “RLB” had no knowledge of the loan applications and did not authorize the applications to be made.
Fraudulent loan applications were submitted to Sallie Mae Loan Processing, the indictment says, which would then assign the loans to Sallie Mae Bank and The First National Bank of Sioux Falls (S.D.).
Lisa and David Baker are each charged in 11 counts of bank fraud for a series of 11 fraudulent loans, ranging from $6,500 to $19,200, totaling $109,000.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the FBI, the Cole County, Mo., Sheriff’s Department and the Jefferson City, Mo., Police Department.JaVierre Head Chosen as Detroit OneRap Contest WinnerRead the Press Release
Contest Showcasing Talented Teens from Detroit
Javierre Head, 17, of Detroit, Michigan was the winner of the first Detroit One Rap Contest promoting anti-violence, announced U.S. Attorney Barbara L. McQuade.
The rap contest was part of this year’s Youth Summit, the youth-led event hosted by the Detroit Youth Violence Prevention Initiative (DYVPI) in partnership with Detroit One and Youth Voice.
The day-long Summit included presentations on safe routes to school, the consequences of bullying, student-led school safety stations, self-defense tactics, and a rap contest featuring original material with a non-violence theme prepared and performed by Detroit high school students.
Javierre appeared on Fox 2's morning show and performed his rap and will be featured in a local public service announcement. Rap contest judges included City Council President Saunteel Jenkins, DJ BJ of 107.5 FM, a Detroit high school student, and a representative of the United States Attorney’s Office.
United States Attorney Barbara L. McQuade stated, “The youth summit provided a positive image of Detroit by showcasing talented teens working to prevent violence.”
Below is a link to Javierre’s performance on Fox 2 News: http://www.myfoxdetroit.com/video?clipId=9238003&autostart=true
Indictment: Former Employee Stole $1 Million Worth of Garmin GPS DevicesRead the Press Release
KANSAS CITY, KAN. – A man who used to work for the Garmin company in Olathe, Kan., has been indicted on federal charges of stealing more than $1 million worth of GPS devices from the company, U.S. Attorney Barry Grissom said today.
Terrence M. Heathington, 31, currently of Atlanta, Ga., is charged with forty counts of mail fraud. The indictment alleges that the crimes were committed between March and September 2008 while Heathington worked as a warehouse material handler for Garmin International, Inc., in Olathe. He caused boxes of GPS devices to be shipped via commercial carrier to his residence and the residences of co-conspirators. He and other conspirators sold the GPS devices on eBay and through other means. He stole approximately 165 cases of Garmin GPS devices with a wholesale value of more than $1 million.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each count. The U.S. Secret Service investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
OTHER INDICTMENTS
Derrick L. Freeman, 28, Kansas City, Kan., Joe Freeman, 33, Kansas City, Kan., and Jeffrey B. Jackson, 47, Kansas City, Kan., are charged in a superseding indictment with one count of conspiracy to commit armed robbery. In addition, Derrick Freeman and Jeffrey Jackson are charged with one count of brandishing and discharging a firearm. In addition, Derrick Freeman is charged with one count of carjacking, two counts of brandishing and discharging a firearm, and one count of unlawful possession of a firearm after a felony conviction. The crimes are alleged to have occurred in May 2013 in Kansas City, Kan.
The defendants initially were charged in a criminal complaint filed June 5 in U.S. District Court in Kansas City, Kan.
The indictment alleges the defendants arranged to buy synthetic marijuana from a man in Kansas City, Kan. Once at his home, they threatened him with a gun and stole his money.
Upon conviction, the crimes carry the following penalties:
Conspiracy: A maximum penalty of 20 years in federal prison and a fine up to $250,000
Brandishing and discharging a firearm in a crime of violence: Not less than 10 years and not more than life and a fine up to $250,000 on each count. Conviction for a second or subsequent conviction: Not less than 25 years and a fine up to $250,000.
Carjacking: A maximum penalty of 15 years and a fine up to $250,000.
Unlawful possession of a firearm after a felony conviction: A maximum penalty of 10 years and a fine up to $250,000.The Kansas City, Kan., Police Department investigated. Special Assistant U.S. Attorney Erin Tomasic and Special Assistant U.S. Attorney Trent Krug are prosecuting.
Adrian L. Brown, 29, is charged with escaping from federal custody at the Grossman Community Corrections Center, a halfway house located in Leavenworth, Kan.. The crime is alleged to have occurred Aug. 21, 2013.
If convicted, he faces a maximum penalty of five years in federal prison and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
Dale Ray Reiman, 53, Lawrence, Kan., is charged with one count of possession with intent to distribute methamphetamine, one count of unlawful possession of a firearm after a felony conviction, and one count of unlawful possession of a firearm in furtherance of drug trafficking. The crimes are alleged to have occurred Oct. 25, 2012, in Douglas County, Kan.
If convicted he faces a maximum penalty of 20 years in federal prison and a fine up to $1 million on the charge of possession with intent to distribute, a maximum penalty of 10 years and a fine up to $250,000 on the charge of unlawful possession of a firearm after a felony conviction and a penalty of not less than five years on the charge of unlawful possession of a firearm in furtherance of drug trafficking. The Kansas City Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Tris Hunt and Assistant U.S. Attorney Scott Rask are prosecuting.
Shawn Richard Seburn, 35, Topeka, Kan., is charged with one count of failing to register as required by the Sex Offender Registration and Notification Act. The crime is alleged to have occurred between April 15 and Aug. 21, 2013, in Shawnee County, Kan.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000. The Topeka Police Department and the U.S. Marshals Service investigated. Assistant U.S. Attorney Christine Kenney is prosecuting.
Johnathan Rush, 28, who is in federal custody, is charged with unlawful possession of a firearm after a felony conviction. The crime is alleged to have occurred July 27, 2013, in Topeka, Kan.
If convicted, Rush faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Shawnee County Sheriff’s Office, the Lawrence Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. U.S. Attorney Barry Grissom is prosecuting.
Arthur D. Mitchell, 20, Kansas City, Kan., is charged with one count of unlawful possession of a firearm after a felony conviction. The crime is alleged to have occurred Aug. 21, 2013, in Kansas City, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Kansas City, Kan., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Special Assistant U.S. Attorney Erin Tomasic is prosecuting.
Aarick M. Warren, 28, Kansas City, Mo., is charged with one count of conspiracy to distribute crack cocaine; two counts of distributing crack cocaine within 1,000 feet of Bethany Park in Kansas City, Kan.; one count of possession with intent to distribute crack cocaine within 1,000 feet of Bethany Park in Kansas City, Kan.; one count of maintaining a residence at 1026 Reynolds Avenue in Kansas City, Kan., in furtherance of drug trafficking; one count of unlawful possession of a firearm in furtherance of drug trafficking; one count of unlawful possession of a firearm after a felony conviction; and two counts of using a telephone in furtherance of drug trafficking. The crimes are alleged to have occurred at various times between Jan. 1, 2012, and Jan. 16, 2013, in Kansas City, Kan.
Upon conviction, the crimes carry the following penalties:
Conspiracy: Not less than five years and not more than 40 years in federal prison and a fine up to $5 million.
Distributing crack cocaine within 1,000 feet of a public park: A maximum penalty of 40 years and a fine up to $4 million on each count.
Possession with intent to distribute crack cocaine within 1,000 feet of a public park: Not less than five years and not more than 80 years and a fine up to $10 million.
Maintaining a residence in furtherance of drug trafficking: A maximum penalty of 20 years and a fine up to $500,000.
Unlawful possession of a firearm in furtherance of drug trafficking: Not less than five years and a fine up to $250,000: A maximum penalty of 10 years and a fine up to $250,000.
Using a telephone in furtherance of drug trafficking: A maximum penalty of four years and a fine up to $30,000 on each count.The Kansas City, Kan., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Special Assistant U.S. Attorney Erin Tomasic is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.Independence, Mo., Man and Woman Plead Guilty to Violating Civil Rights of Family by Torching Their HomeRead the Press Release
Tammy Dickinson, U.S. Attorney for the Western District of Missouri, and Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division of the U.S. Department of Justice, announced that an Independence, Mo., man and woman pleaded guilty in federal court today to violating the civil rights of an African-American family by setting fire to their residence.
Logan J. Smith, 25, and Victoria A. Cheek-Herrera, 34, both of Independence, pleaded guilty before U.S. District Judge Brian C. Wimes to one count of conspiring to threaten and intimidate an Independence family from exercising their constitutional right to reside in their home because of their race or color and one count of a civil rights violation for committing a racially-motivated arson. Smith waived his right to a grand jury indictment and pleaded guilty to a two-count information, whereas Cheek-Herrera pleaded guilty to two of three counts charged in an indictment returned by the grand jury on May 23, 2013.
By pleading guilty, Smith and Cheek-Herrera admitted that on June 26, 2008, they conspired to injure, oppress, threaten and intimidate an African-American couple and their minor children in the free exercise of their constitutional rights to occupy and rent their home in Independence, because of their race and color.
According to the plea agreements, Smith and Cheek-Herrera discussed their desire to set fire to the home of the couple, and they drew a swastika and wrote the words “White Power” on the driveway. Smith and Cheek-Herrera asked a juvenile acquaintance for gasoline and then created a Molotov cocktail by filling a glass bottle with gasoline and inserting a rag into the bottle to serve as a wick. Smith and Cheek-Herrera then lit the wick and threw the gasoline-filled bottle into the side of the house that the couple was renting and set the residence on fire.
Smith and Cheek-Herrera each face a statutory maximum penalty of 10 years in prison and a fine of $250,000 for one count of conspiracy against rights and a statutory maximum penalty of 10 years in prison and a fine of $250,000 for one count of interference with housing rights.
This case was investigated by the FBI and is being prosecuted by First Assistant U.S. Attorney David M. Ketchmark and Trial Attorney Shan Patel of the Civil Rights Division of the U.S. Department of Justice.
Husband and Wife Sentenced to Five Years Each for Filing False Tax ReturnsRead the Press Release
PHOENIX – On Aug. 27, 2013, Shelia Young, 49, and Deane Young, 49, of Overgaard, Ariz., were each sentenced by U.S. District Judge David G. Campbell to five years of imprisonment for submitting false tax returns to the Internal Revenue Service. The Youngs were found guilty by a federal jury on Feb. 21, 2013, of conspiring to defraud the United States and submitting false claims for tax refunds.
Evidence at trial showed that the Youngs owned and operated Accurate Consulting LLC, an accounting and tax preparation business in Heber-Overgaard, Ariz. In addition to preparing lawful tax returns, the Youngs prepared and filed fraudulent tax returns on behalf of some of their clients that claimed false refunds ranging from $12,405 to $368,102 per return. In total, the Youngs filed 122 false returns claiming nearly $10 million in fraudulent refunds. To make the false claims appear legitimate, the Youngs filed tax forms with the IRS, including the Form 1099-OID, that reported false income and tax withholding for the clients. Evidence also showed that the Youngs lied to their clients, telling them that the refund claims were based on tax loopholes unknown to the general public. They also bolstered their credentials, falsely claiming over 86 years of combined experience and assuring their clients that a federal judge had approved the filing method.
“Tax fraud is an insult to all honest, taxpaying citizens in this country,” said U.S. Attorney John S. Leonardo. “Hopefully the sentences imposed will discourage others from engaging in similar conduct.”
“The Youngs stole money from the taxpayers of the United States through their fraudulent tax return scheme. In addition, their clients are now responsible for paying back the taxes, penalties, and interest associated with these bogus tax returns and potentially will be prosecuted,” said Dawn Mertz, Special Agent in Charge of the Phoenix Field Office of Internal Revenue Service, Criminal Investigation. “Be wary of any tax return preparer who promises a refund that sounds too good to be true.”
The investigation in this case was conducted by the Internal Revenue Service, Criminal Investigation. The prosecution was handled by James R. Knapp and Michael T. Morrissey, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-10-8216-PCT-DGC
RELEASE NUMBER: 2013-070_Young_etal# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/Houston Man Charged with Sex Trafficking of A MinorRead the Press Release
HOUSTON – Alexander Joseph Johnson, 24, of Houston, has been indicted on charges of sex trafficking of a 15-year-old female, United States Attorney Kenneth Magidson announced today.
Johnson was arrested on Aug. 6, 2013, based on a criminal complaint. On Aug. 8, he appeared before U.S. Magistrate Judge Nancy Johnson for a detention hearing. At that time, Judge Johnson found there was probable cause to believe he committed the crime of sex trafficking of a minor, that he was a danger to the community and a flight risk and ordered him into custody.
According to the criminal complaint, the victim was forced to perform sex acts with strangers for money and turn that money over to Johnson. Johnson allegedly posted advertisements online for commercial sex for the victim in Houston and Colorado. The victim was forced to earn $500 dollars an evening, according to the complaint, and when she met her quota, Johnson would allegedly “reward” her by having sex with her. Allegations also include that Johnson provided the victim with marijuana and alcohol and only provided her food at his discretion.
If convicted, Johnson faces a minimum of 10 years and up to life in federal prison as well as a maximum fine of $250,000. Upon completion of any prison term imposed, he also faces a maximum lifetime term of supervised release and he will be required to register as a sex offender.
The Houston FBI Innocence Lost Task Force, which includes such agencies as the Houston Police Department, investigated.
This case, prosecuted by Assistant U.S. Attorney Sherri L. Zack, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Fugitive Couple Sentenced for Identity TheftRead the Press Release
Tampa, FL - Acting United States Attorney A. Lee Bentley, III announces that U.S. District Judge Mary S. Scriven today sentenced Michelle M. Lutz (Clearwater, 36) to two years in federal prison for aggravated identity theft. On August 20, 2013, Senior U.S. District Judge Susan C. Bucklew sentenced her husband, Paul M. Lutz (Clearwater, 44), to two years and eight months in federal prison for misuse of a passport and aggravated identity theft.
According to court documents, Paul and Michelle Lutz were arrested in San Bernadino, California, for drug and weapon violations in October 2001. Shortly after their arrests, they fled California and assumed new identities. The Lutzs lived in Nevada for several years before moving to Clearwater, Florida, in 2008. While living in Clearwater, the couple had a son. Michelle Lutz worked as an exotic dancer, while Paul M. Lutz attended school, cared for the minor son, and coached a Clearwater Little League team.
In May 2012, Michelle M. Lutz, using an assumed identity, applied for a United States Passport in Clearwater. During the processing of her application, fraud detection managers determined that the information provided in the application was false. A follow up investigation revealed that Michelle and Paul Lutz had active warrants out of the State of California and were hiding out in Clearwater.
On March 6, 2013, a federal search warrant was executed at the Lutzs' Clearwater residence. Law enforcement seized blank birth certificates from more than seven different states, blank baptismal records, blank education school diplomas, a blank marriage license, social security cards and numbers in approximately fifteen different identities, stamps and seals for official documents, counterfeit currency, and an instruction book on how to establish a new identity.
This case was investigated by the Department of State Diplomatic Security Service. It was prosecuted by Assistant United States Attorney Stacie B. Harris.
Four Men Charged with Conspiring to Engage in Sex Trafficking of A MinorRead the Press Release
NEWARK, N.J. – Four men from Haverstraw, N.Y., and Philadelphia, Pa., have been charged in federal court with conspiring to engage in the sex trafficking of a minor, U.S. Attorney Paul J. Fishman announced.
Karl Venord, 30, a/k/a “Dreadhead,” and Samuel Verrier, a/k/a “Dre,” 35, both of Philadelphia, were charged by complaint with conspiring to engage in the sex trafficking of a minor. Both are scheduled to appear in Newark federal court later today before U.S. Magistrate Judge Stephen C. Mannion.
Varian Charles, 28, a/k/a “Bob,” of Philadelphia, was indicted August 27, 2013, by a federal grand jury for conspiring to engage in the sex trafficking of a minor. He was previously charged with the same offense in a criminal complaint and appeared in Camden federal court on July 24, 2013, before U.S. Magistrate Judge Ann Marie Donio, where he was ordered detained.
Wilbur Senat, 23, a/k/a “Wilby,” of Haverstraw, was charged in a criminal complaint with conspiring with Charles to engage in the sex trafficking of a minor. He appeared in Newark federal court on August 6, 2013, before U.S. Magistrate Judge Cathy L. Waldor, where he was ordered detained.
According to the documents filed in this case:
In the summer of 2011, the minor victim met Senat in upstate New York. Shortly after they met, Senat allegedly took the minor victim to a motel in Nyack, N.Y. At the motel, Senat forced the victim to engage in commercial sex acts with various individuals, who paid Senat money in exchange for the sex acts performed by the minor victim.
Shortly after this incident, Senat allegedly threatened the victim that if she did not agree to leave New York with him, her family would be harmed. As a result of these threats, the victim agreed to leave with Senat. Senat then purchased tickets for himself and the victim to travel from New York City to Philadelphia via public transportation.
Upon arriving in Philadelphia, the victim and Senat were picked up by Charles. Charles took them back to his house in Philadelphia, where Senat and Charles told the victim that she would be staying at Charles’ house in order to engage in prostitution. While at Charles’ house, the victim was forced to have sex with various individuals, who paid Senat and Charles in exchange for the sex acts performed by the victim. While the victim was staying at Charles’ house, she was also physically abused by Senat and Charles.
While at Charles’ house, the victim met Verrier. Verrier took the victim from Charles and told her that she could make more money working for him. Verrier then brought the victim to various clubs in Philadelphia, where he instructed her to solicit club patrons for sex acts in exchange for money.
In late August 2011, after the victim began working for Verrier, he introduced her to Venord. Venord and Verrier asked the victim to accompany them on a car ride to New Jersey. The victim agreed, because she thought she would be taken to visit her family member who lived in New Jersey.
During the drive to New Jersey, Venord and Verrier told the victim that they intended to blackmail an individual who was in New Jersey. Venord and Verrier told the victim that she was to have sex with this individual and take photographs of him, and that they would use these photographs to blackmail him.
Venord and Verrier drove the victim to Bordentown, N.J., to locate the individual that they intended to blackmail. After locating the individual outside a bank, Venord and Verrier attempted to have the victim proposition the individual, but they were unsuccessful in this attempt.
The count of conspiracy to engage in the sex trafficking of a minor is punishable by a maximum statutory penalty of life in prison. It also carries a maximum fine of $250,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Sarah Wolfe in Trenton and Courtney M. Oliva in Newark.
The charges and allegations summarized above are merely accusations and the defendant is considered innocent unless and until proven guilty.
13-349Defense counsel:
Venord and Verrier: TBD
Charles: Richard Coughlin Esq., Assistant Federal Public Defender, Camden
Senat: Michele Ann Adubato Esq., Bayonne, N.J.Charles Indictment
Venord, Karl, et al., ComplaintFormer State Prison Guard to Serve 43 Years in Prison for Child Exploitation, PornographyRead the Press Release
Springfield, Ill. – U.S. District Judge Richard Mills this afternoon sentenced former Illinois correctional officer Steven L. Carson, of Hillsboro, Ill., to serve 520 months (43 years, 4 months) in federal prison, to be followed by a lifetime term of supervised release. Carson pleaded guilty in February 2013, to charges that he sexually exploited a minor, and that he distributed and possessed images of child pornography.
Carson has remained in the custody of the U.S. Marshals Service since his arrest in August 2012, when he was charged with distribution of child pornography in a federal criminal complaint. According to the affidavit filed in support of the complaint, the Sacramento, Ca. division of the FBI’s Cyber Crime Unit was conducting an undercover investigation of peer-to-peer file-sharing accounts in April 2012, when an undercover agent conducted a file sharing session with Carson. At the time, Carson was employed as a prison guard at Graham Correctional Center.
Carson was indicted by a grand jury, and on Feb. 21, 2013, pled guilty to three counts: sexual exploitation of a minor; distribution of child pornography; and possession of child pornography. Carson admitted that he used a child to perform sexually explicit conduct which he videotaped. Further, Carson admitted that he engaged in peer-to-peer file sharing of child pornography, including prepubescent boys; and that he possessed images of child pornography, including more than 2,300 images and 40 videos which agents recovered from Carson’s computers.
The charges were investigated by the FBI. The case was prosecuted by Assistant U.S. Attorney Gregory K. Harris.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Non-Native Employee of Indian Health Services Pleads Guilty to Fraudulent Acquisition of Controlled SubstancesRead the Press Release
ALBUQUERQUE – Jason Lucas, 30, of Albuquerque, N.M., pleaded guilty this morning to the acquisition of a controlled substance through fraud and deception under a plea agreement with the U.S. Attorney’s Office.
Lucas was indicted in Jan. 2013, and charged with five counts of acquiring controlled substances through fraud and deception and three counts of defrauding a health care benefit program by having the program pay for fraudulently acquired controlled substances. According to the indictment, between Feb. 2012 and March 2012, Lucas fraudulently obtained Oxycodone and Hydrocodone by filling fraudulent prescriptions at retail pharmacies in Bernalillo County, N.M. At the time of the crimes alleged in the indictment, Lucas, who is not a Native American, was employed as an emergency medical technician at the Acoma-Canoncito-Laguna (ACL) Service Unit of the Indian Health Services (IHS) in San Fidel, N.M.
During this morning’s proceedings, Lucas pled guilty to Count 5 of the indictment, charging him with obtaining Hydrocodone on March 29, 2012 by using a fraudulent prescription. In his plea agreement, Lucas admitted that he fraudulently obtained blank prescription sheets from the ACL Service Unit and filled out fraudulent prescriptions by forging the names and DEA numbers of two physician assistants employed by the ACL Service Unit. One of the falsified prescriptions was dated March 23, 2012, and Lucas filled the prescription for 90 tablets of Hydrocodone on March 29, 2012.
Lucas remains on conditions of release under pretrial supervision pending his sentencing hearing, which has not yet been scheduled. At sentencing, Lucas faces a maximum penalty of four years in prison and a $250,000. Under the terms of the plea agreement, the remaining seven counts of the indictment will be dismissed when Lucas is sentenced.
This case was investigated by the Office of the Inspector General of the U.S. Department of Health and Human Services and is being prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.Former Executive Director of Gallup Housing Authority Charged with Federal Fraud and Theft OffensesRead the Press Release
ALBUQUERQUE – A federal grand jury has indicted two men from Gallup, N.M., on charges that they engaged in a scheme to defraud the United States and the U.S. Department of Housing and Urban Development (HUD) of more than $100,000. The indictment was announced by Acting U.S. Attorney Steven C. Yarbrough, Phyllis Robinson, Special Agent in Charge of Region 6, HUD Office of Inspector General, and Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI.
Danny Garcia, 37, and Michael Virruso, 61, are charged in a 12-count indictment that was filed late yesterday afternoon. The indictment charges Garcia and Virruso with one count of conspiracy and eight counts of making false claims against the United States. It also charges Garcia with three counts of theft from programs receiving federal funds. According to the indictment, from June 2010 through Oct. 2012, Garcia and Virruso engaged in a scheme to steal federal funds provided by HUD to the Gallup Housing Authority (GHA). At the time of the offenses charged in the indictment, Garcia was the Executive Director of GHA.
HUD is a federal agency whose core mission is to make quality, affordable housing accessible to all Americans. It oversees and funds programs designed to provide affordable housing for low-income Americans. One such program is the Capital Fund Program (CFP) which provides grants to public housing agencies for the purpose of making improvements to public housing developments. According to the indictment, GHA is a public housing agency that receives approximately $400,000 in CFP grants each year.
The indictment alleges that as Executive Director of GHA, Garcia was responsible for selecting contractors to carry out GHA projects, reviewing and approving invoices payable by GHA, and requesting HUD funds to pay for GHA projects. It further alleges that in summer 2010, Garcia awarded a contract to remove and replace sidewalks in a GHA housing development to a construction company that employed Virruso (company) and also appointed Virruso to act as safety inspector. While working on the project, Virruso allegedly submitted invoices to GHA for work performed by the company and for which the company received payment, and Garcia allegedly used GHA funds to pay Virruso’s invoices and then obtained reimbursement from HUD’s CFP. According to the indictment, Virruso fraudulently received more than $75,000 through this scheme. The indictment also alleges that Garcia embezzled more than $15,000 of HUD funds by misusing a GHA debit card.
Count 1 of the indictment charges the defendants with conspiracy and carries a maximum penalty of five years of imprisonment and a $250,000 fine on conviction. Counts 2 through 9 each charge the defendants with making false claims against the United States. A conviction on each of these counts carries a maximum penalty of five years of imprisonment and a $250,000 fine on conviction. Counts 10 through 12 each charge Garcia with theft of government property. A conviction on each of these counts carries a maximum penalty of ten years of imprisonment and a $250,000 fine. Charges in indictments are only accusations and defendants are presumed innocent unless proven guilty.
The case was investigated by the Region 6, HUD Office of Inspector General and the Albuquerque Division of the FBI, and is being prosecuted by Assistant U.S. Attorney Jeremy Peña.-
Indictment
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Former Commodities Trader Charged with Causing $5 Million Loss to Bank and Others in Alleged $10 Million Fraud SchemeRead the Press Release
CHICAGO ― A former Chicago commodities trader was charged today with allegedly fraudulently raising more than $10 million and misappropriating a substantial portion of the money for his personal commodities futures trading, to make Ponzi-type payments to investors, and to benefit himself and his family, resulting in a loss of at least $5 million. The defendant, BRADLEY SCHILLER, allegedly used some of the funds to pay for personal and family expenses, including a Range Rover, jewelry, condominium fees, housing rental fees for his mother-in-law, and country club fees.
Schiller, 37, of Chicago, was charged with three counts of wire fraud in an information filed today in U.S. District Court. He will be arraigned on a date to be determined.
According to the charges, Schiller, who represented himself as a successful commodities future trader, raised more than $10 million between 2007 and 2012 from various sources, including The PrivateBank and Trust Company, in connection with his futures trading. In raising the funds, Schiller allegedly lied to sources and prospective providers of funds about the profitability of his futures trading, the use of money he raised, the risks involved in providing him with money, his financial condition and the status of the funds. He misappropriated a substantial portion of the money raised and concealed the scheme by making Ponzi-type payments to victims and by creating and distributing fraudulent documents, including phony commodities brokerage and bank account statements, false financial statements, and false tax forms, the charges allege. During the scheme, Schiller had trading losses of more than $1.5 million and need to continually raise new funds to repay earlier providers of funds.
In obtaining a $2 million line of credit from The PrivateBank, for example, Schiller allegedly falsely represented that he had a net worth of about $2.6 million and an overall balance in his commodities accounts in April 2009 of approximately $5.5 million. Schiller allegedly knew, however, that he had a negative net worth at the time and his overall balance in his commodities accounts was nearly zero.
The charges were announced by Gary S. Shapiro, Acting United States Attorney for the Northern District of Illinois, and Robert J. Shields, Jr., Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Commodity Futures Trading Commission provided assistance.
Each count of wire fraud affecting a financial institution carries a maximum penalty of 30 years in prison and a $1 million fine, or an alternative fine totaling twice the gross gain or twice the loss, whichever is greater, and restitution is mandatory. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines. An information contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is being represented by Assistant U.S. Attorney Edward Kohler.
The investigation falls under the umbrella of the Financial Fraud Enforcement Task Force, which includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task
force, visit: www.StopFraud.gov.Former Chicago White Sox Executive Sentenced for Taking Kickbacks from Latin American Players’ Signing BonusesRead the Press Release
CHICAGO — A former Chicago White Sox scouting executive was sentenced today to two years in federal prison for accepting approximately $440,000 in kickbacks from the signing bonuses and contract buyouts that two of the team’s Latin American scouts paid to secure 23 prospective players between December 2004 and February 2008. The defendant, DAVID S. WILDER, the White Sox farm system director from late 2003 to 2006, when he became the team’s senior director of player personnel until May 2008, had pleaded guilty to mail fraud in February 2011.
Wilder, 52, of San Francisco, was ordered to begin serving his sentence on Oct. 31 by U.S. District Judge Charles Norgle. Wilder was also ordered to pay $440,781 in restitution to the White Sox.
Wilder admitted that he defrauded the White Sox of money and his honest services while concealing the kickbacks from the team and its more senior executives. He later cooperated with the investigation, leading the government to ask for a reduced sentence.
Two former White Sox scouts, JORGE L. OQUENDO RIVERA, 52, of Puerto Rico, the team’s Latin American scout between November 2004 and October 2007, and VICTOR MATEO, 42, of the Dominican Republic, a Sox scout in the Dominican Republic between November 2006 and May 2008, were also charged and pleaded guilty to mail fraud. Oquendo Rivera is scheduled to report to prison this Friday to begin serving a sentence of a year and a day that Judge Norgle imposed in June. Mateo is scheduled to be sentenced on Sept. 18.
According to court documents, the White Sox relied on Wilder, as well as Oquendo Rivera and Mateo, to recommend and approve signing bonus and related payments, depending on a player’s talent, necessary to induce a player to sign with the White Sox, or to induce another team to release the player to the White Sox, without being inflated for kickbacks. Instead, Wilder and the other defendants facilitated, solicited, or obtained more than $440,000 in kickbacks from at least 23 Latin American players signed by the White Sox.
The White Sox reported findings of an internal investigation to Major League Baseball and baseball officials referred the matter to federal authorities. Both the team and Major League Baseball were instrumental in launching the investigation and provided continuing cooperation.
The government is being represented by Assistant U.S. Attorneys Christopher K. Veatch and Michelle Nasser.
The sentence was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Robert G. Shields, Jr., Acting Special Agent-in-Charge of the Federal Bureau of Investigation.
Former Bank Vice President Charged with Attempted Online Enticement of A MinorRead the Press Release
Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Kirk A. Simmons, age 59, of Newark, Delaware, was arrested earlier today and charged by criminal complaint with attempted coercion and enticement of a minor, in violation of Title 18, United States Code, Section 2422(b). This federal criminal charge results from an online sting operation conducted in June and July 2013 by an undercover Delaware State Police detective posing as a father who posted an online advertisement seeking other men to join him for sex with his 13-year-old daughter.
At the time of the sting operation, Simmons was employed as a Vice President, Market Information Manager II at Bank of America’s Newark, Delaware facility. Bank of America terminated Simmons’s employment following notification of his alleged conduct. According to his LinkedIn profile, Simmons also currently works as a “Professional private tutor” through WyzAnt Tutoring, “providing private in-home tutoring at the high school and college levels.”
If convicted of the charges, Simmons faces a mandatory minimum sentence of at least ten years of imprisonment and up to life in prison, a fine of up to $250,000, and a term of supervised release of at least five years to life following his prison sentence. He also will be required to register as a sex offender in any jurisdiction in which he resides, works or attends school.
Simmons began his online relationship with the undercover “father” in June 2013, when Simmons responded to a “personals” advertisement for “fam love/taboo” on an adult social networking website. Through online chats, Simmons indicated and graphically described that he wanted to engage in sexual activity with the purported “father” and his child. After a number of online conversations, the “father” agreed to bring his “13-year-old daughter” to a Newark hotel on July 18, 2013, where Simmons would meet them for sexual activity.
Simmons was arrested by the Delaware State Police Child Predator Task Force on July 18, 2013, after he arrived at a Newark hotel to engage in sex acts with the fictitious “father” and “13-year-old daughter.” Shortly before that meeting, Simmons was under surveillance by Delaware State Police and was observed driving directly from his workplace to the hotel. In a recorded interview with a Delaware State Police detective, Simmons admitted that he intended to engage in sexual activity with the fictitious “father” and “13-year-old daughter” at the hotel. Simmons also admitted that he brought a digital camera with him to photograph the sexual activity.
Simmons was released from state custody after posting bail in July 2013 on a state charge of Attempted Rape Third Degree of a Minor filed in Delaware Superior Court. The Delaware Child Predator Task Force thereafter referred the case to the United States Department of Homeland Security and the United States Attorney’s Office for possible federal prosecution. The state charge remains pending.
Simmons will remain in federal custody pending a detention hearing scheduled for Tuesday, September 3, 2013, at 8:30 a.m., before Chief United States Magistrate Judge Mary Pat Thynge. At that hearing, the court will determine whether to detain Simmons or to release him on bail conditions pending trial.
Any person possessing information about this matter are encouraged to contact the United States Department of Homeland Security’s Tip Line at 302-428-0104, extension 3.Florida Man, Roger Brent Churchwell, Pleads Guilty to Receiving Images Depicting the Sexual Exploitation of ChildrenRead the Press Release
ROGER BRENT CHURCHWELL, age 38, a resident of Vero Beach, Florida, plead guilty as charged today before U.S. District Judge Helen G. Berrigan, after previously being charged with receiving images depicting the sexual victimization of children, announced U.S. Attorney Dana J. Boente.
According to court documents, during the summer of 2012, CHURCHWELL resided in New Orleans, Louisiana. During the early morning hours of September 16, 2012, CHURCHWELL entered the Old Point Bar, located in Algiers, Louisiana. When he left the bar approximately one hour later, he left his iPhone in the bathroom. A patron found the phone and, in an attempt to identify to whom it belonged, looked at photographs on the phone. The patron saw images of child pornography, and the Federal Bureau of Investigation was notified. After obtaining a search warrant, agents conducting a forensic examination found more than 300 images depicting children as young as 3-years-old engaging in sexually explicit conduct.
CHURCHWELL faces a mandatory minimum of 5 years, and a maximum of 20 years in prison, followed by up to a life term of supervised release, and a $250,000 fine. He can also be required to register as a sex offender. Sentencing has been scheduled for December 4, 2013, before Judge Berrigan.
This case is being investigated by special agents from the Federal Bureau of Investigation. The prosecution of this case is being handled by Assistant United States Attorney Jordan Ginsberg.
(Download Factual Basis )
Filer Man Sentenced for Conspiring to Distribute Meth in Twin Falls AreaRead the Press Release
BOISE – Christopher Palacios, a/k/a “Paco,” 41, of Filer, Idaho, was sentenced today to 218 months in prison followed by five years of supervised release for conspiracy to possess with intent to distribute 50 grams or more of actual methamphetamine, U.S. Attorney Wendy J. Olson announced. Palacios appeared today before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise. He pleaded guilty to the charge on February 26, 2013.
According to court documents, Palacios admitted that between March 29 and May 21, 2012, he conspired with his co-defendants, Terry O’Brien and Krystal Reese, to distribute methamphetamine in the Twin Falls area.
Co-conspirator Terry Lee O’Brien, 54, of Boise, Idaho, was sentenced on July 2, 2013, to 66 months in prison for conspiracy to possess with intent to distribute 50 grams or more of actual methamphetamine.
Co-conspirator Krystal Amber Reese, 32, of Filer, pleaded guilty on July 2, 2013, to possession with intent to distribute methamphetamine. Sentencing is set for September 23, 2013.
The case was investigated by the Idaho State Police.
Federal Grand Jury in Fort Wayne Returns IndictmentsRead the Press Release
Hammond South Bend Fort Wayne
Fort Wayne, Indiana - The United States Attorney's Office announced that a Grand Jury sitting in Fort Wayne, Indiana, returned the following Indictments on August 28, 2013:
Damion Alexander, 19, of Fort Wayne, Indiana, is charged in a single count Indictment with possession of a firearm by a domestic batterer on or about July 23, 2013. The Indictment also seeks the forfeiture of firearms and ammunition. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Lovita Morris King.
Raul Resendiz, 34, of Fort Wayne, Indiana, is charged in a single count Indictment with being a felon in possession of a firearm on or about July 21, 2013. The Indictment also seeks the forfeiture of firearms. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Tina L. Nommay.
Trevor Rodriguez, 22, and Hayley VanDurmen, 20, both of Fort Wayne, Indiana, are charged in an eight count Indictment respectively. Both defendants are charged with knowingly selling a firearm to a convicted felon and aiding and abetting on or about April 26, 2013. In addition, Rodriguez is also charged with distribution of marijuana on or about May 24, 2013, possession of a firearm in furtherance of a drug trafficking crime on or about May 24, 2013,
knowingly selling a firearm to a convicted felon on or about June 25, 2013, July 1, 2013, July
15, 2013 and July 30, 2013, and maintaining a drug involved premise. These charges were filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case has been assigned to and will be prosecuted by Assistant United States Attorney Lovita Morris King.
Dontae Travier, 29, of Kalamazoo, Michigan, and Cameron Patterson, 28 of Fort Wayne, Indiana, are charged in a single count Indictment with armed bank robbery and aiding abetting on or about May 29, 2013. The investigation of this bank robbery is being conducted by the Ossian Police Department, the FBI Fort Wayne Safe Streets Task Force, and the FBI Northeast Indiana Federal Bank Robbery Task Force. Both task forces are comprised of FBI agents and officers from the Indiana State Police, Allen County Police Department, and Fort Wayne Police Department. The Bureau of Alcohol, Tobacco, Firearms, and Explosives is also part of the Northeast Indiana Federal Bank Robbery Task Force. This case has been assigned to and will be prosecuted by Assistant United States Attorney Lesley Miller Lowery.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.Executive Indicted for Embezzling More Than Half A Million Dollars from Westin HotelRead the Press Release
San Diego, CA - United States Attorney Laura E. Duffy announced that Kevin Kelso, a former Director of Finance at the Westin San Diego, was arraigned yesterday in Los Angeles on charges involving his embezzlement of more than $500,000 from the Westin San Diego.
According to the indictment, Kelso served as the Director of Finance at the Westin San Diego between approximately December 2010 and September 2012. During that time, he embezzled funds using several different methods, including: (1) taking advantage of the hotel’s change order process – by which they converted larger denomination currency into smaller bills in order to make change for customers; (2) using an unauthorized corporate American Express card to pay personal expenses; (3) submitting duplicate expense reports to obtain undeserved reimbursement; (4) reversing charges at the Westin San Diego for his friends and acquaintances; and (5) writing Westin checks to improperly pay himself and third parties.
The defendant was arrested by U.S. Secret Service agents on August 27, 2013, at another hotel, his current place of employment. He was arraigned in the Central District of California before Magistrate Judge Ralph Zarefsky and pled not guilty. Magistrate Judge Zarefsky set bail at $100,000 and ordered the defendant to appear in the Southern District of California in the courtroom of Magistrate William V. Gallo on September 4, 2012 at 2 p.m.
The public is reminded that an indictment is not evidence that the defendant committed the crime charged. The defendant is presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
DEFENDANT Criminal Case No. 13CR3017-DMS Kevin Kelso SUMMARY OF CHARGESCounts 1-6: Title 18, United States Code, Section 1343 – Wire Fraud
Forfeiture: Title 18, United States Code, Sections 981(a)(1)(C) and Title 28, United States Code,
INVESTIGATING AGENCY
Section 246United States Secret Service
Euclid Man Charged with Child Pornography CrimesRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, announced today that Joseph D. Weiss, 44, of Euclid, Ohio, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.
The indictment charges that from on or about March 4, 2013, through on or about March 15, 2013, Weiss knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct. On March 22, 2013, images of child pornography were also found on his external hard drive.
If convicted, the sentence in this case will be determined by the Court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik. The case was investigated by the Ohio Internet Crimes Against Children Task Force and the Euclid Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Emory University to Pay $1.5 Million to Settle False Claims Act InvestigationRead the Press Release
University Overbilled Medicare and Medicaid for Patients Enrolled in Clinical Trial Research at Emory’s Winship Cancer Institute
ATLANTA - The United States Attorney’s Office for the Northern District of Georgia and Attorney General Sam Olens announced today they have reached a settlement with Emory University, which agreed to pay $1.5 million to settle claims that it violated the False Claims Act by billing Medicare and Medicaid for clinical trial services that were not permitted by the Medicare and Medicaid rules.
Providers generally are not permitted to bill Medicare for medical care and services for which the clinical trial sponsor has agreed to pay. Here, the United States and the State of Georgia alleged that Emory University billed Medicare and Medicaid for services the clinical trial sponsor agreed to pay (and, in some cases, actually did pay, thereby resulting in Emory’s being paid twice for the same service).
“This settlement demonstrates our office’s continued commitment to protect crucial Medicare and Medicaid dollars,” said United States Attorney Sally Quillian Yates. “Treatment of cancer is expensive, and Medicare and Medicaid dollars should be reserved for patients who need services that properly may be billed to these programs.”
“Our investigation of Emory University revealed the institution’s clinical trial false billing and led to today’s settlement,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General for the Atlanta region. “Protecting Medicare -- and taxpayer dollars -- remains a top priority.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “Federal funds, to include those of Medicare and Medicaid, are limited and are to be used as intended. The FBI will continue to play a role in enforcing federal law that governs the use of these much needed funds.”
Attorney General Sam Olens stated, “Cancer research is paramount to saving and extending lives. However, strict rules govern the use of Georgia Medicaid dollars. My office takes seriously its obligation to ensure that these resources are used properly.”
This civil settlement resolves a lawsuit filed by Elizabeth Elliot under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery obtained. The case, pending in the Northern District of Georgia, is filed under United States of America and State of Georgia ex rel. Elizabeth Elliott v. Emory University, et al., Civ. No. 1:09-cv-3569-AT (N.D. Ga. Dec. 18, 2009). Ms. Elliot will receive a share of the settlement payment that resolves the qui tam suit that she filed. The claims settled in the civil settlement are allegations only, and there has been no determination of liability.
This case was investigated by the United States Attorney’s Office for the Northern District of Georgia; the U.S. Department of Health & Human Services, Office of Inspector General; the Federal Bureau of Investigation; and the Georgia Medicaid Fraud Control Unit.
The civil settlement was reached by Assistant United States Attorney Darcy F. Coty.
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 HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.Emory Settlement Agreement
Eldora Man Charged with Federal Child Sexual Exploitation OffensesRead the Press Release
Kevin Trittien, age 35, of Eldora, Iowa, has been indicted on federal child sexual exploitation charges. The charges are contained in an Indictment unsealed August 23, 2013, in United States District Court in Cedar Rapids.
The Indictment alleges that, in 2012, Trittien used the Internet to attempt to persuade a person defendant believed to be under sixteen to engage in sexual activity. The Indictment also alleges that, between 2009 and 2012, Trittien distributed, received, and possessed child pornography.
If convicted on all charges, Trittien faces a mandatory minimum sentence of ten years’ imprisonment and a possible maximum sentence of life imprisonment, a $1,000,000 fine, a $400 special assessment, and at least five years and up to life on supervised release following any imprisonment.
Trittien appeared for a detention hearing today in federal court in Cedar Rapids and was held without bond. Trittien’s next appearance for trial is set for October 28, 2013.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Garner Police Department, the Iowa Division of Criminal Investigation, the Hancock County Sheriff’s Office, and the Grundy County Sheriff’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 13-67.
Delano Man Pleads Guilty to Robbing Buffalo McDonald’sRead the Press Release
MINNEAPOLIS—Yesterday in federal court, a 34-year-old Delano man pleaded guilty to committing the April 24, 2013, robbery of a McDonald’s in Buffalo. On August 27, 2013, Matthew Dillon Sisneros pleaded guilty to one count of interference with commerce by robbery, pursuant to the Hobbs Act, and one count of possession of a firearm in furtherance of a crime of violence. Sisneros, who was indicted on June 3, 2013, entered his plea before United States District Judge Ann D. Montgomery.
In his plea agreement, Sisneros admitted that on April 24, 2013, he took $3,266 from the restaurant and, with a firearm, threatened violence against the employees. Upon entering the restaurant, Sisneros admittedly pointed a sawed-off 12-gauge shotgun at employees and demanded money. After receiving the money, he ran to a waiting vehicle and left the area.
The Hobbs Act, passed by Congress in 1946, allows federal prosecutors to prosecute individuals who commit armed robberies of businesses engaged in interstate commerce.
For his crimes, Sisneros faces a potential maximum penalty of 20 years in prison for robbery and a mandatory minimum penalty of ten years for possession of a firearm in furtherance of a crime of violence. Judge Montgomery will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the Buffalo Police Department, the Wright County Sheriff’s Office, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, with cooperation from the Minnesota Bureau of Criminal Apprehension. It is being prosecuted by Assistant U.S. Attorneys Julie E. Allyn and Laura M. Provinzino.Dayton Man Pleads Guilty to Being an Armed Career CriminalRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON, OHIO – Mickey Allen Fugate, Jr, 40, of Dayton, Ohio pleaded guilty in U.S. District Court to one count of interference with commerce by threats or violence (Hobbs Act) and one count of possession of a firearm following three or more violent felony convictions, (Armed Career Criminal Act). If the court accepts the terms of the plea agreement, Fugate will serve at least 20 and up to 30 years in prison.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, and Dayton Police Chief Richard Biehl announced the pleas entered today before U.S. District Judge Walter H. Rice.
According to court documents, Fugate robbed at gunpoint the Kwik-n-Kold convenience store on Wyoming Street in Dayton on November 14, 2009. During the robbery, Fugate shot and wounded one of the employees and fled with less than $500 in cash.
Officers with the FBI Dayton Safe Streets Task Force recovered a 9mm firearm loaded with nine rounds of ammunition, the store’s cash register tray, a tip jar and approximately $168 from a residence to which Fugate fled following the robbery. Fugate was arrested and has been in custody since his arrest.
Fugate’s criminal record includes prior federal convictions for bank robbery, use of firearms in a crime of violence and attempted escape, and two burglary convictions in state court. Under federal law, this qualifies Fugate as an armed career criminal.
The court will conduct a pre-sentence investigation and determine whether or not to accept the terms of the plea agreement.
U.S. Attorney Stewart commended the cooperative investigation by special agents of the FBI and Dayton Police, as well as Assistant U.S. Attorneys Vipal Patel and Mary Beth Young, who are prosecuting the case.
Cleveland Man Charged with Robbing Shaker Heights BanksRead the Press Release
A Cleveland man was indicted on charges related to the robbery of a Shaker Heights bank, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Charles D. Moore, 28, was indicted on one count of armed bank bobbery. This charge arises from the July 9, 2013, bank robbery of the PNC Bank at 20711 Chagrin Boulevard. in Shaker Heights, Ohio, when Moore held the bank manager at gunpoint and stole approximately $46,000 from the bank's tellers, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant's prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant United States Attorneys Margaret A. Sweeney following an investigation by the Cleveland and Pittsburgh Field Offices of the Federal Bureau of Investigation and the Shaker Heights Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland Man Charged with Child Pornography CrimesRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, announced today that Steven L. Lantz, 30, of Cleveland, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.
The indictment charges that from on or about June 30, 2012, through on or about October 15, 2012, Lantz knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct. On October 31, 2012, images of child pornography were also found on his Toshiba laptop computer.
If convicted, the sentence in this case will be determined by the Court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik. The case was investigated by the Department of Homeland Security, Immigration and Customs Enforcement.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Christopher Cleveland Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on August 28, 2013, before Senior U.S. District Judge Jack D. Shanstrom, CHRISTOPHER CLEVELAND, a 34-year-old resident of Billings, appeared for sentencing. CLEVELAND was sentenced to a term of:
Prison: 72 months
Special Assessment: $100
Supervised Release: 5 years
CLEVELAND was sentenced in connection with his guilty plea to conspiracy to possess with intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Marcia K. Hurd, the government stated it would have proved at trial the following:
CLEVELAND came to the attention of law enforcement officers as part of the large drug case. CLEVELAND was identified as a person who purchased large amounts of methamphetamine from Las Vegas on behalf of supplier Howard Bonifant in Billings to distribute to his distributor network here. Other witnesses identified CLEVELAND as a distribution source from Bonifant. At first, CLEVELAND received the methamphetamine from Sheila Coffman, who received it directly from the Vegas source beginning in January 2010. Later in 2010 Coffman got out of the ring and introduced CLEVELAND to the Vegas sources and he then began getting it directly from Johnathan Balbin, Antonio Taylor, and Justin Fultz. CLEVELAND received significantly more than several pounds from each of the suppliers during the time he was involved. His involvement ended in November of 2010 when Taylor was arrested in Billings.
When questioned, CLEVELAND admitted his role within the conspiracy but noted that he had discontinued his involvement and had been clean for the last several years.
Bonifant, Coffman, Balbin, Taylor and Fultz pled guilty to federal charges and have been sentenced.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that CLEVELAND will likely serve all of the time imposed by the court. In the federal system, CLEVELAND does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Billings Big Sky Safe Streets Task Force, the Billings Police Department, and the Federal Bureau of Investigation.
Brothers Charged with Setting Fires on the Bayou Sauvage National Wildlife RefugeRead the Press Release
RYAN BURLETT, age 34, and DAMIEN BURLETT, age 39, both residents of Orleans Parish, were charged today in a one-count Bill of Information for setting fires on the Bayou Sauvage National Wildlife Refuge in violation of Title 16, United States Code, Section 688 dd(c), (f)(1), announced United States Attorney Dana Boente.
According to the Bill of Information, on February 9, 2012, a pilot with the Louisiana Department of Agriculture, while on aerial patrol in a Cessna over Slidell, Louisiana, spotted a column of smoke emanating from the Bayou Sauvage National Wildlife Refuge in New Orleans East. After seeing the smoke column, the pilot flew to the refuge and observed a fire burning on a marsh patch. The pilot also observed two men in a small boat leaving the area of the fire at a high rate of speed. Suspecting that they might have started the fire, the pilot began to follow the boat in an effort to identify them and photograph their activity. As he followed their boat, the pilot witnessed the men start two more fires on marsh patches located within the Refuge. After setting those fires, the men drove their boat to a dock located behind a residence in the Venetian Isles subdivision. The pilot then turned over the photographs of the two men, their boat, and the Venetian Isles residence to agents with the U.S. Fish and Wildlife Services for further investigation. Through their investigation, the agents were able to identify RYAN and DAMIEN BURLETT as the two men that set the fires in the Refuge. After confirming their identities, the agents interviewed the BURLETT brothers at New Orleans Fire Department Station 31, where they both worked as firemen. During the interview, they admitted that they were the two individuals in the photographs that the pilot took the day of the incident.
If convicted, each face a maximum term of imprisonment of one year, a fine of $100,000.00, a maximum supervised release term of one year following any term of imprisonment, and a $25 special assessment fee.
U.S. Attorney Dana Boente reiterated that the bill of information is merely a charge, and that the guilt of the defendants must be proven beyond a reasonable doubt.
The case was investigated by the U.S. Fish and Wildlife Service. The case is being prosecuted by Assistant U. S. Attorney Spiro G. Latsis.
(Download Bill of Information )
Birmingham Woman Sentenced for Multi-State Identity Theft ConspiracyRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Birmingham woman to more than six years in prison for her role in a multi-state identity-theft and counterfeit-check scheme that included recruiting homeless people to cash the fraudulent checks, announced U.S. Attorney Joyce White Vance, U.S. Postal Inspector in Charge Keith Morris, FBI Special Agent in Charge Richard D. Schwein Jr., and U.S. Secret Service Acting Special Agent in Charge Jeff Anderson.
DAPHNE COLLETTE TATE, 42, pleaded guilty in April to conspiring with five other people to defraud more than two dozen banks in Alabama, Georgia and Florida. She also pleaded guilty to aggravated identity theft, possessing a business check stolen from the U.S. mail, and possessing a counterfeit check. U.S. District Judge L. Scott Coogler sentenced her to six years and two months in prison for those crimes.
The five other defendants charged along with Tate in the multi-state identity-theft conspiracy are Tate's cousin, KEITH LAMAR REESE, 46, also of Birmingham, and four Atlanta-area residents, COLUNDRIA SEATS, 37, DEMARIO S. MORMON, 27, CLIFFTON A. MORMON, 30, and BRETT E. FALCONER, 27.
Reese and Falconer have pled guilty to conspiracy to commit bank fraud and aggravated identity theft. DeMario Mormon remains a fugitive. Seats was arrested in June; Cliffton Mormon was arrested in July, and their cases are proceeding toward trial.
According to Tate's indictment and other court records, Tate and other conspirators conducted their scheme in Alabama, Georgia and Florida between September 2011 and February 2013 as follows:
They obtained account and routing information for various businesses’ legitimate checking accounts in at least 25 banks through various means, including stealing checks from the mail and engaging people who had access to account information. Falconer was employed by Regions Bank and accessed the bank’s records for the conspiracy during her employment. Falconer provided co-conspirators with information from Regions’ accounts and from checks presented at Regions Bank. Other conspirators, including Demario and Cliffton Mormon, used that genuine account and routing information to manufacture counterfeit business checks.
Tate, Seats and Reese would locate people, often the homeless, who had government-issued identification cards and would join the conspiracy as check-cashers. Tate, Seats, Reese and other co-conspirators would transport the check-cashers to locations where they would cash or attempt to cash the counterfeit checks. Members of the conspiracy would divide the proceeds of the successfully cashed checks among themselves.
This case was investigated by the U.S. Postal Inspection Service, the FBI, the U.S. Secret Service, and the Pelham, Trussville and Vestavia Hills police departments, with assistance from Regions Bank corporate investigators. Assistant U.S. Attorney Melissa K. Atwood is prosecuting the case.Attorney General Eric Holder Announces $2.5 Million <br /> to Connecticut Law Enforcement for Costs Related to <br /> Sandy Hook School ShootingsRead the Press Release
Attorney General Eric Holder announced today that the Justice Department’s Bureau of Justice Assistance (BJA) will provide $2.5 million in funding to the Connecticut State Police, the Newtown, Conn., Police Department and their partner agencies that provided assistance in response to the shootings at Sandy Hook Elementary School last year. The funding compensates the agencies and jurisdictions for costs related to overtime, forensics and security during and in the aftermath of the crime.
“Providing support to the law enforcement agencies that responded to the horrific scene that awaited them at Sandy Hook Elementary School is one small action we can take to bring healing to a community that’s been devastated,” said Attorney General Holder. “Just over eight months after this senseless tragedy, those who lost their lives, and those who continue to grieve, remain in our thoughts and prayers.”
The funding is made available through BJA’s FY 2013 Edward Byrne Justice Assistance Grant Program and is scheduled for distribution as follows:
Connecticut State Police $663,444
Town of Newtown $602,293
Town of Monroe $882,812
Partner Agencies* $296,836* Connecticut jurisdictions of Avon, Bethel, Bloomfield, Bridgeport, Brookfield, Clinton, Coventry, Danbury, Darien, Easton, Fairfield, Glastonbury, Groton, Meriden, Middletown, New Britain, Newington, New Canaan, New Milford, Norwalk, Orange, Plainville, Redding, Ridgefield, Seymour, Shelton, Southington, Stratford, Trumball, Waterbury, Watertown, Wilton, Weston and Wolcott.
“This critical funding will compensate the Connecticut State Police and Newtown Police Department for their tireless work investigating this crime, as well as more than two dozen police departments from across the state whose officers responded to Newtown within minutes of this horrific act and, for months, helped to provide security and comfort to a courageous community,” said Acting U.S. Attorney for the District of Connecticut Deirdre M. Daly.
The Bureau of Justice Assistance is one of six components of the Office of Justice Programs (OJP) which is headed by Assistant Attorney General Karol V. Mason. OJP provides federal leadership in developing the nation's capacity to prevent and control crime, administer justice and assist victims. OJP’s six components include: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking.
For more information about OJP, please visit: www.ojp.gov.
Albuquerque, New Mexico, Resident Sentenced to 60 Months for Possession of Marijuana with Intent to DistributeRead the Press Release
COUNCIL BLUFFS, IA- On August 27, 2013, Oscar Salinas-Olivas, a 34 year old resident of Albuquerque, New Mexico, was sentenced by United States District Court Judge John A. Jarvey to sixty months in prison for possession with intent to distribute marijuana, and twelve concurrent months for violation of his federal supervised release from New Mexico, announced United States Attorney Nicholas A. Klinefeldt. Judge Jarvey also ordered Salinas-Olivas to serve six years of supervised release following the term of imprisonment, when he will also be subject to deportation.
On May 8, 2013, the defendant pled guilty to being in possession with intent to distribute marijuana and admitted the violation of the terms of his supervised release. The charge was the result of a traffic stop by Iowa State Patrol on January 16, 2013. Salinas-Olivas was driving the vehicle when he was stopped for speeding. A subsequent search found approximately 320 pounds of marijuana. Salinas-Olivas was on supervised release from New Mexico for a 2010 conviction of being an illegal alien in possession of a firearm.
The investigation was conducted by the Iowa State Patrol, Immigration and Customs Enforcement, and the Iowa Department of Narcotics Enforcement, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Alamance County Residents Sentenced for Health Care FraudRead the Press Release
Ordered to serve prison time and pay restitutionGREENSBORO, N.C. – United States Attorney Ripley Rand of the Middle District of North Carolina announced today that two Alamance County residents have been sentenced to prison for defrauding the Medicaid program.
EVELYN FULLER, 61, and MICHAEL McLEAN, 57, were sentenced by United States District Judge Catherine Eagles in federal court in Greensboro, North Carolina, on Tuesday, August 27, 2013. FULLER was sentenced to 26 months imprisonment. Her co-defendant, McLEAN, was sentenced to 36 months imprisonment. FULLER and McLEAN were also ordered to pay restitution to the Medicaid program in the amount of $399,811.44. Both FULLER and McLEAN will serve three years of supervised release after serving their prison sentences.
FULLER and McLEAN plead guilty on February 27, 2013, to health care fraud charges in connection with a scheme to defraud the North Carolina State Medicaid program in connection with community support services. Both worked for a company called Harvest House Community Development Corporation, through which they submitted false claims to the Medicaid program for community support services which were not actually rendered. Community support services are rehabilitative services for eligible children and adults in which the clinical and diagnostic needs of the clients are arranged, coordinated, and monitored.
The case was prosecuted by Assistant United States Attorney Robert M. Hamilton and Special Assistant United States Attorney and Assistant Attorney General Jacqueline Perez of the Medicaid Investigations Division of the North Carolina Attorney General’s Office. The case was investigated by the North Carolina Medicaid Investigations Division and the Office of the Inspector General of the United States Department of Health and Human Services.
Additional Charges, $1.3 Million Judgment against Springfield, Kirbyville Men Indicted for K2 ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that additional charges have been brought against a Springfield, Mo., man and two Kirbyville, Mo., men for their roles in a conspiracy to distribute synthetic marijuana, commonly referred to as K2, including a money judgment of more than $1.3 million.
Travis E. Butchee, also known as “Donkey,” 37, of Springfield, and Michael J. Saguto, 42, and Christian L. Turner, 45, both of Kirbyville, were charged in a 16-count superseding indictment returned by a federal grand jury in Springfield on Tuesday, Aug. 27, 2013. The superseding indictment replaces an indictment that was returned on June 12, 2013 and contains 10 additional counts of distributing a controlled substance and money laundering, as well as additional forfeiture allegations.
Butchee opened The Man Cave, a retail business at 1927 S.Glenstone in Springfield, in February 2013. Butchee and Saguto are the owners of Southern Spice, LLC and Saguto is the owner of Blues Away, a head shop and novelty store in Memphis, Tenn. Turner was employed by Saguto at Blues Away.
The superseding indictment maintains the allegation that Butchee, Saguto and Turner participated in a mail fraud conspiracy from March 1, 2011 to May 16, 2013. They allegedly devised a scheme to defraud the Food and Drug Administration and to defraud the public in order to profit from false claims that synthetic marijuana products (such as Blazed, Red Eyed, Donkey Punch, Jolly Grape Giant, South of the Tracks, Baby Face, Scarface, Hillbilly Hay and others) – which were mailed or delivered by commercial carriers – were “incense” or “potpourri” and “not for human consumption.” In reality, the indictment says, these substances were synthetic cannabinoids that contained controlled substances and were intended for human consumption as a drug.
The indictment also maintains the allegation that Butchee, Saguto and Turner participated in a conspiracy to distribute a controlled substance. They allegedly manufactured and distributed synthetic cannabinoids using ingredients obtained through the mail from China and Thailand.
In addition to the conspiracy, the superseding indictment now charges Butchee, Saguto and Turner in six counts of distributing a controlled substance.
The superseding indictment also charges Butchee and Saguto with participating in a money-laundering conspiracy from March 1, 2011, to May 16, 2013. Butchee and Saguto allegedly conducted financial transactions that involved the proceeds of the unlawful mail fraud conspiracy and the unlawful drug-trafficking conspiracy. They allegedly conspired to wire funds to the People’s Republic of China in order to carry on those conspiracies.
In addition to the conspiracy, Butchee and Saguto are charged in three counts of money laundering related to specific financial transactions in February 2013.
As in the original indictment, Butchee and Saguto are charged with three counts of maintaining a place for the purpose of unlawfully storing and distributing a controlled substance. They allegedly used residences in Kirbyville, Merriam Woods, Mo., and Springfield to store and distribute synthetic marijuana. Turner is also charged with being a felon in possession of firearms. Turner, having been convicted of a felony, allegedly possessed a Ruger .22-caliber rifle, a Marlin 30-30 caliber rifle, a Rossi .243-caliber rifle with an interchangeable 20-gauge barrel, a Remington 12-gauge shotgun and a Remington .270-caliber rifle.
The indictment also contains a forfeiture allegation, which would require Butchee, Saguto and Turner to forfeit to the government any property obtained from the proceeds of the alleged offenses. In the superseding indictment, that now includes a money judgment of $1,354,034, representing the total amount of money involved in the conspiracy. The forfeiture also includes $31,580 that was seized by law enforcement officers, four rifles and a shotgun.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the U.S. Postal Inspection Service, IRS-Criminal Investigation, the Missouri State Highway Patrol, COMET (Combined Ozarks Multi-jurisdictional Enforcement Team) and the Springfield, Mo., Police Department.126 Individuals Indicted for Drug Trafficking in the Municipality of CaguasRead the Press Release
Defendants face a forfeiture allegation of 76 million dollars
SAN JUAN, Puerto Rico – U.S. Attorney for the District of Puerto Rico Rosa Emilia Rodríguez-Vélez announced the indictment and arrest of 126 defendants charged with conspiracy to possess with intent to distribute, and distribution of controlled substances. Today, FBI agents and officers of the Puerto Rico Police Department (PRPD), the agencies in charge of the investigation, executed the arrest warrants with assistance from the U.S. Drug Enforcement Administration, U.S. Immigration and Customs Enforcement – Homeland Security Investigations, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the U.S. Marshals Service.
The indictment, handed down Aug. 15, 2013 by a federal grand jury and unsealed in federal court today, charges 126 individuals with conspiracy to knowingly and intentionally possess with intent to distribute cocaine base (crack), heroin, cocaine, marihuana, Oxycodone (commonly known as Percocet) and Alprazolam (commonly known as Xanax), all within 1,000 feet of the real property comprising a public or private school and/or playground at the Morales Ward (Barriada Morales) in the Municipality of Caguas, Puerto Rico.
The indictment alleges that beginning in 2005, the organization operated six different drug points located within Barriada Morales. These drug points would have fixed prices for each type of drug, in order to maintain the parity of the sales among the drug points.The 126 co-conspirators had many roles in order to further the goals of the conspiracy. The following are the roles as alleged in the indictment: 18 leaders or drug point owners; 26 enforcers; three drug processors; 23 runners/suppliers; 40 sellers; and 16 facilitators. All defendants are facing a forfeiture allegation of seventy-six million dollars.
Some of the defendants and their co-conspirators would be paid $500 a week in exchange for their job as enforcers. During the holiday season, the sellers would often receive a cash award or a “Christmas bonus” in addition to their regular pay.
The indictment further alleges that the co-conspirators would have access to different vehicles, usually parked in strategic locations, inside and outside Barriada Morales, in order to transport money, narcotics and firearms. These vehicles would often be used by some of the defendants and their co-conspirators to conduct drive-by shootings and to go out and “hunt” rival gang members.
Fifty-two of the co-conspirators are charged with using and carrying firearms during and in relation to a drug trafficking crime. Some of the defendants and their co-conspirators would often act as look-outs and armed surveillance at five strategically located observation points, used to alert other co-conspirators of the presence of law enforcement agents and/or rival drug traffickers.
During daylight hours the armed surveillance would be conducted with pistols and revolvers. At night, the co-conspirators in charge of the armed surveillance would conduct the same by possessing, carrying and brandishing high power rifles, often altered to function as fully automatic.
The members of the conspiracy used force, violence and intimidation in order to scare rival drug traffickers and members of their own organization. Sometimes, the leaders would discipline the members of their own organization by breaking their legs and arms using an axe handle.
“Violent drug trafficking gangs should take note, and know that we are determined to break their grip on communities, and that they will face severe penalties for their crimes,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “Federal and local law enforcement agencies remain committed to using every tool available to attack these criminal organizations, and to reduce gang violence and bring narcotics and firearms violators to justice.”
“The FBI's message is clear and unequivocal. We will work together with our federal, state and local law enforcement partners to assign all necessary resources to identify, locate, and arrest violent crimes offenders. They will face our justice system. They will be prosecuted to the fullest extent of the law,” said Carlos Cases, Special Agent in Charge of the FBI in Puerto Rico.
Assistant U.S. Attorneys Alberto López-Rocafort and Teresa Zapata and Special Assistant U.S. Attorney Victor O. Acevedo-Hernàndez are in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
The defendants were the targets of a long-term Organized Crime Drug Enforcement Task Force (OCDEFT) investigation, responsible for drug trafficking in Puerto Rico. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Tuesday 27 August 2013
Woman Faces Five Years in Federal Prison for Filing False Claims in Tax CaseRead the Press Release
DALLAS — Mary Ngacha appeared this morning before U.S. Magistrate Judge David L. Horan and pleaded guilty to one count of filing false claims against an agency of the United States. She faces a maximum statutory penalty of five years in federal prison, a $250,000 fine and restitution. Ngacha will remain on bond, pending sentencing, which is scheduled for December 4, 2013, before U.S. District Judge Ed Kinkeade. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Ngacha’s co-defendant in the case, Harriet Mathita, pleaded guilty in November 2012 to a related tax offense and is currently serving a 30-month federal prison sentence. She was also ordered to pay $45,906 in restitution.
According to the factual resume filed in her case, Mathita admitted that from December 2009 through June 2010, an individual in Dallas, later identified as Ngacha, mailed multiple federal tax returns to the IRS that used stolen identification information and made false and fictitious claims for payment of tax refunds. Each return contained a false Form W-2 that reported significant, although fictitious, wages and withholding so as to result in a claim for a large tax refund. The returns directed the IRS to pay the refund either into a bank account or a physical address controlled by a conspirator.
The factual resume further stated that three of these fraudulent tax returns directed the refund check to be delivered to the Mathita’s address in Plano, Texas. In May 2010, a U.S. Treasury check in the amount of $45,206 was, in fact, delivered to her Plano address. Only one of the three fraudulent returns actually resulted in a refund check being mailed; the other refunds were not released by the IRS.
Ngacha, according to the order setting the conditions of her release, is a Dallas resident.
According to the stipulated facts outlined in her factual resume, from at least November 2009 through April 2010, Ngacha willfully assisted in the preparation of, and then filed, 10 federal income tax returns that contained false information. These returns had been mailed to Ngacha from an accomplice located outside the United States. After receiving them, Ngacha printed them, signed the purported taxpayer’s name and then mailed them to the IRS for processing. These returns used the last names and social security numbers of taxpayers without their knowledge or authorization and each return included a false form W-2 with fictitious wages and withholding amounts. A form schedule C was also attached showing a substantial business loss from a sole proprietorship.
Specifically, on November 2, 2009, according to the factual resume, Ngacha signed and then mailed to the IRS a tax return in the name of “Motachwa Poliquin” that used the social security number belonging to an individual that had been used without that individual’s knowledge or consent. The return also included a fictitious form W-2 that falsely reported “Motachwa Poliquin” had earned $495,855 from Fann Contracting for 2008 and that $152,054 had been withheld by the IRS. The return claimed a $147,464 refund and directed the IRS to electronically deposit that refund into an account at JPMorgan Chase Bank that Ngacha had opened. On November 27, 2011, the IRS electronically deposited the “Poliquin” refund of $148,264 into that account, and on the same day, Ngacha transferred the entire amount from that account to her personal bank account at JPMorgan Chase. Ngacha then wired $100,000 of that amount to a bank in Nairobi, Kenya, and spent the rest of the refund for her own personal use and benefit.
The investigation was conducted by IRS-CI. Assistant U.S. Attorney Christopher Stokes is in charge of the prosecution.
Wilma Jamie Rae Hoyt Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on August 27, 2013, before Chief U.S. District Judge Dana L. Christensen, WILMA JAMIE RAE HOYT, a 29-year-old resident of Browning, was sentenced to a term of:
Prison: 60 months
Special Assessment: $100
Supervised Release: 4 years
HOYT was sentenced in connection with her guilty plea to conspiracy to possess with the intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Ryan G. Weldon, the government stated it would have proved at trial the following:
On February 23, 2012, "X.X." and HOYT were arrested in Browning. X.X. was arrested because he had a state warrant out for his arrest. HOYT was arrested for a federal warrant because she violated conditions of her supervised release. At the time of the arrest, law enforcement collected $600 in U.S. currency from X.X. The money was claimed to be from X.X.'s "tax return."
When interviewed, HOYT stated that she first became romantically involved with X.X. in approximately 2009 or 2010. Both X.X. and HOYT were initially "clean," but X.X. lost his job, and they were in need of money to maintain their household and take care of their children. HOYT admitted that is when they began selling methamphetamine for income.
In approximately February or March of 2011, HOYT admitted that individuals approached her and X.X., requesting that they sell methamphetamine. X.X. and HOYT complied with such a request, and this relationship lasted until January of 2012. X.X. and HOYT would receive three grams of methamphetamine at a time. HOYT estimated that she received methamphetamine, to sell, every week, and the longest without receiving drugs was three weeks.
HOYT explained that, after selling for awhile, she met another methamphetamine dealer, who provided her and X.X. with a higher-quality methamphetamine. This new dealer initially provided them with a "weighed out gram" of methamphetamine, which they would break down and sell. However, as the relationship grew, so did the amounts that the new distributor provided. For example, the new distributor eventually provided HOYT and X.X. with a "weighed out eight ball." In total, HOYT stated that the new distributor provided them a "weighed out gram" on six occasions and a "weighed out eight ball" on three occasions.
Law enforcement interviewed X.X. the day after interviewing HOYT. X.X. also admitted that he began selling methamphetamine, and stated that such sales began from late December 2010, until approximately June 2011. X.X. provided specifics as to amounts sold and prices paid to the distributors.
The FBI interviewed various "customers" of HOYT and X.X.. These individuals confirmed that HOYT and X.X. sold methamphetamine, and the amounts of the conspiracy involved more than 50 grams of a substance containing a detectable amount of methamphetamine.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that HOYT will likely serve all of the time imposed by the court. In the federal system, HOYT does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.