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24 October 2013
Canadian Indicted for Securities and Wire FraudRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that on October 18, 2013, a federal grand jury in Raleigh, North Carolina returned a two count indictment charging JAMES ALAN ROWAN with securities fraud and wire fraud.
ROWAN is a Canadian citizen who served as President and Chairman of Enviro-Energies, a Delaware-registered corporation, headquartered in Canada. As detailed in the Indictment, ROWAN claimed to have developed and patented a new type of turbine to generate clean electricity for homes and small commercial establishments. He told potential investors, distributors, and customers in the United States that he developed and patented a new type of wind turbine that did not require a tower to support the turbine assembly. ROWAN referred to his line of wind turbine models as “Mag Wind Turbines.”
Through aggressive marketing efforts over the Internet and in person, ROWAN received endorsements for the Mag-Wind Turbine design concept from unwitting Hollywood celebrities and environmental activists. Additionally, the Grand Jury alleges that ROWAN made numerous false and deceptive claims to his U.S. based distributors and customers about the Mag-Wind Turbine by exaggerating its power generation capacity, falsifying scientific and technical data, and falsifying information regarding his capacity to manufacture and distribute the Mag-Wind turbines. The Grand Jury also alleges that ROWAN inveigled U.S. investors in North Carolina, California, and elsewhere into purchasing Enviro-Energies shares by falsely telling them that these shares would be listed on the stock exchanges through an Initial Public Offering (IPO). Even though some investors responded to ROWAN’S false claims, once they paid for their shares, ROWAN never delivered the actual share certificates.If convicted, the maximum penalties for the charged counts are twenty years in prison for securities fraud and twenty years in prison for wire fraud. The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty. The case is being investigated by the Federal Bureau of Investigation (FBI) and is being prosecuted by Assistant United States Evan Rikhye.
Bruce Wayne Eagleman, Jr. Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena, on October 24, 2013, before U.S. District Judge Sam E. Haddon, BRUCE WAYNE EAGLEMAN, JR., a 25-year-old resident of Crow Agency and an enrolled member of the Crow Tribe of Indians, was sentenced to a term of:
- ison: 405 months
- ecial Assessment: $100
- pervised Release: 5 years
EAGLEMAN was sentenced in connection with his guilty plea to second degree murder.
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 November 23, 2011, the Hardin City Court ordered EAGLEMAN to participate in the 24/7 sobriety program in Bighorn County. EAGLEMAN had just been arrested for disorderly conduct, criminal trespass to property, an open container violation, and possession of drug paraphernalia. He pleaded guilty to disorderly conduct after he admitted to drinking a gallon of gin on the day of his arrest.
The 24/7 sobriety program became law in Montana on October 1, 2011. The program is designed to address the most serious alcohol offenders in the state, and also, to verify that these people are not drinking and driving. Pursuant to this program, the Hardin Court ordered EAGLEMAN to take a breath test twice a day - the first between 7 a.m. and 9 a.m. and the second between 7 p.m. and 9 p.m.
The Hardin City Court was also familiar with EAGLEMAN due to his previous driving under the influence conviction. On July 11, 2008, EAGLEMAN pleaded guilty to driving under the influence of alcohol after he stated he drank twelve, 24-ounce, cans of beer. EAGLEMAN, who is 25-years-old, also has never had a valid driver(s license.
During the morning of December 29, 2011, EAGLEMAN's mother drove him from Crow Agency to Hardin to take his morning breath test. EAGLEMAN and his mother then returned to Crow Agency. Sometime in the early afternoon, EAGLEMAN took his mother's 2006 Dodge Durango and said he was leaving to go check the mail. Instead, EAGLEMAN left the house and met up with V.F.
EAGLEMAN and V.F. drove to a friend's house in Crow Agency. Everyone discussed driving to Hardin. Shortly thereafter, EAGLEMAN, V.F., and a friend drove to Hardin. EAGLEMAN drove his mother's Durango. EAGLEMAN and V.F. had already drank four malt liquors earlier in the afternoon. As EAGLEMAN drove to Hardin, the friend said EAGLEMAN began to drive more erratically.
EAGLEMAN first drove to a pawn shop, where he pawned a few items and received $10. EAGLEMAN used the $10 to buy a liter of Nikolai gin. EAGLEMAN next drove to another pawn shop. At the pawnshop, an employee observed that EAGLEMAN was extremely intoxicated. She saw EAGLEMAN leave and get in the driver's seat of the Durango.
After leaving the pawn shops, EAGLEMAN made a few more stops for gas and at another friend's house. Finally, he drove to the grocery store where he purchased two cans of Mike's Hard Lemonade and left the store. EAGLEMAN dropped the friend off in Hardin, which left just V.F. in the car with EAGLEMAN. EAGLEMAN then drove back to Crow Agency.
EAGLEMAN drove back to Crow Agency by way of the two-lane East Frontage Road. Initially he drove in the correct lane of travel - the southbound lane. At approximately 5:40 p.m., however, EAGLEMAN crossed into the northbound lane of the road and directly in front of S.S.'s oncoming car. S.S. attempted to drive to the left to avoid the oncoming crash, but was unsuccessful. The passenger side of EAGLEMAN's Durango collided with the passenger side of S.S.'s car in the northbound lane of traffic - the correct lane of traffic for S.S. A witness drove up almost immediately thereafter and saw EAGLEMAN in the driver's seat of the Durango.
Responding medical and law enforcement saw that V.F. was still alive, but he could not breathe well. He died shortly thereafter. S.S. had two other passengers in her car, both of whom died on scene. An ambulance transported S.S. to the hospital where she died. EAGLEMAN suffered minor injuries and was released from the hospital. Soon after the crash, at 6:52 p.m. that evening, his blood alcohol content was .257. He also tested positive for opiates and THC.
Bruce Eagleman killed four people on the Crow Indian Reservation while driving drunk. The Montana United States Attorney's Office takes very seriously the danger of drunk driving in Indian Country. This sentence imposed today will not bring back the four people he killed, but it will justly punish Mr. Eagleman for his actions and serve as deterrence to the general public from engaging in similar criminal conduct." said U.S. Attorney Michael W. Cotter.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that EAGLEMAN will likely serve all of the time imposed by the court. In the federal system, EAGLEMAN 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 Federal Bureau of Investigation, the Montana Highway Patrol, and the Bureau of Indian Affairs.
Bridgeport Man Pleads Guilty to Federal Narcotics Distribution ChargeRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that LAWRENCE BLUE, 36, of Bridgeport, pleaded guilty yesterday before Chief U.S. District Judge Janet C. Hall in New Haven to one count of possession with intent to distribute cocaine base (“crack”).
In December 2002, BLUE was sentenced by Judge Hall to 92 months of imprisonment and three years of supervised release for possession of a firearm by a previously convicted felon. He was released from federal prison in June 2009.
According to court documents and statements made in court, on March 20, 2012, the U.S. Marshals Service and members of the Connecticut Violent Fugitive Task Force arrested BLUE at his Bridgeport residence on a federal violation of supervised release warrant. On that date, a search of BLUE’s bedroom revealed narcotics, two loaded firearms and approximately $2,500 in cash.
Judge Hall has scheduled sentencing for February 3, 2014, at which time BLUE faces a maximum term of imprisonment of 20 years.
BLUE has been detained since his arrest. On April 17, 2012, Judge Hall sentenced BLUE to 21 months of imprisonment for violating the conditions of his supervised release stemming from his prior federal conviction.
This case is being prosecuted by Assistant U.S. Attorney Alina P. Reynolds.
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(203) 821-3722 [email protected]Beasley SentencingRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Walt Green announced today that U.S. District Judge James J. Brady sentenced KIAMANI A. BEASLEY, age 28, of Jeanerette, Louisiana, to 12 months and a day imprisonment and 12 months of supervised release following imprisonment. The sentence results from BEASLEY’s conviction for embezzlement from a federally funded entity in violation of Title 18, United States Code, Section 666.
BEASLEY’s conviction stems from actions she took while serving as Finance Director of the Louisiana Association of Community Action Partners (LACAP), a non-profit organization which receives funding from the federal government’s American Recovery and Reinvestment Act Program. LACAP was established to organize and strengthen the forty-two (42) private and public Community Action Agencies (CAAs) in Louisiana. CAAs were established to address the effects and causes of poverty and to increase self-sufficiency among the poor. CAAs implemented many educational and health-oriented programs funded by the federal government. As Finance Director of LACAP, BEASLEY was responsible for overseeing the financial integrity of the organization, including the accounting and distribution of federal funds.
BEASLEY admitted that, while working for LACAP, she used her position of trust to embezzle $50,858, which funds were to be used for computer software training and weatherization services. BEASLEY further admitted to using the funds for her personal entertainment.
The investigation of this matter was conducted by the U.S. Department of Energy Office of Inspector General and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Reginald E. Jones.
Baltimore Police Officer Sentenced to 8 Years in Prison for Drug Dealing and Gun Charge Uncovered by Federal WiretapRead the Press Release
Corrupt Officer Protected Drug Dealer, Filed False Police Reports, Planned Armed Robbery and Sold Stolen Property
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Baltimore Police officer Kendell Richburg, age 36, of Baltimore, today to eight years in prison, followed by four years of supervised release, for conspiracy to distribute heroin and possession of a firearm in furtherance of drug trafficking. Judge Bennett ordered that as a special condition 10 months of his supervised release be served in home detention.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to his plea agreement, from June 2011 through October 2012, Richburg, who was assigned to the Violent Crimes Impact Section in the Northwestern District of the Baltimore Police Department, conspired with a street level drug trafficker to distribute heroin. Richburg’s co-conspirator was a registered confidential informant with the Baltimore Police Department. The co-conspirator sold drugs in the Pimlico area of Northwest Baltimore. Richburg provided information to the co-conspirator that permitted him to sell drugs without interference from law enforcement, telling the co-conspirator on a near daily basis when it was “safe” to go out to sell drugs. In return, the co-conspirator provided Richburg with information about his drug customers so that Richburg could arrest them. Richburg paid his co-conspirator with official Baltimore Police Department funds for providing the information that resulted in the arrest of the drug customers. Richburg sometimes gave the co-conspirator back some of the drugs seized from the co-conspirator’s customers so that the co-conspirator could re-sell the drugs. Richburg falsified the arrest documents to eliminate the co-conspirator’s involvement, often falsely stating that Richburg had witnessed a drug transaction.
In early 2012, the FBI received information that Richburg was trafficking in stolen property, including iPhones, iPads and other electronics, and obtained a wiretap of Richburg’s cellphone. Intercepted conversations confirmed that Richburg was trafficking in stolen property and led to the discovery of Richburg’s drug trafficking.
Richburg and the co-conspirator were also overheard discussing the “planting” of evidence, and arranging an armed robbery. For example, on September 2, 2012, Richburg and the co-conspirator discussed having the co-conspirator plant a gun in an unlicensed cab, then having Richburg pull over and arrest the cab driver on a gun violation and pay the co-conspirator $350 to $400 as an informant fee for recovering a firearm. On October 9, 2012, Richburg, armed with his service weapon, searched a person, without probable cause, and located a large amount of cash. The victim told Richburg that he had just received his paycheck. Richburg contacted his co-conspirator and arranged for the co-conspirator, whom Richburg knew was armed, to rob the victim, identifying where the victim was located.
Richburg has been detained since his arrest on January 18, 2013.
United States Attorney Rod J. Rosenstein praised the FBI and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys A. David Copperthite and Peter M. Nothstein, who prosecuted the case.
Attica Pleads Guilty to Child Pornography ChargeRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Paul J. Havlen, Jr., 48 of Attica, N.Y., pleaded guilty before U.S. District Judge Richard J. Arcara, to attempting to receive child pornography.
Assistant U.S. Attorneys Kathleen A. Lynch and Paul J. Campana, who are handling the case, stated the defendant posted an ad on Craigslist seeking a young man who was interested in smoking marijuana and engaging in sexual activities. Between October 26, 2011 and December 19, 2011, Havlen engaged in graphic email and text exchanges with a person he believe to be a 15 year old boy. During those chats, the defendant asked the 15 year old for pictures and made arrangements to meet him at a park in Attica. The individual that Havlen was actually chatting with was an undercover police officer, and the defendant was arrested after he drove to the area of the park on December 19, 2011.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea is the culmination of an investigation on the part of the Special Agents of the Federal Bureau of Investigation, under the direction of Brian P. Boetig, Special Agent in Charge and the Wyoming County Sheriff’s Department, under the direction of Acting Sheriff Gregory J. Rudolph.Armed Pharmacy Robber SentencedRead the Press Release
PHILADELPHIA - William Webb, 51, of Philadelphia, was sentenced today to 25 years in prison for a string of armed robberies that targeted pharmacies. Webb pleaded guilty July 24, 2013 to conspiracy, interference with interstate commerce by robbery, and brandishing a firearm during a crime of violence. He and Edward Schaeffer conspired to target approximately 19 pharmacies in order to steal prescription pharmaceuticals, including oxycontin, oxycodone, and percocet. Schaeffer, 30, pleaded guilty Sept. 12th and will be sentenced December 5, 2013.
In addition to the prison term, U.S. District Court Judge John R. Padova ordered restitution in the amount of $65,270.15, and five years of supervised release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department, with assistance from the Abington Twp. Police and Glenolden Borough Police. It is being prosecuted by Assistant United States Attorney Jennifer Chun Barry.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Albuquerque Woman Sentenced to Prison for Attempted Armed Bank Robbery ConvictionRead the Press Release
ALBUQUERQUE – Late yesterday afternoon Emma Rosemary Hossy, 23, was sentenced to 24 months in federal prison followed by three years of supervised release for her attempted armed bank robbery conviction. Hossy is a naturalized U.S. citizen from South Africa who was residing in Albuquerque, N.M., when she was arrested in this case.
Hossy was arrested on Dec. 9, 2012, on a criminal complaint charging her with attempted armed bank robbery. She subsequently was indicted on that same charge.
According to court records, Hossy attempted to rob the Wells Fargo Bank branch located at 8333 Montgomery Boulevard NE in Albuquerque on Dec. 7, 2012. On that day, a woman, subsequently identified as Hossy, approached a teller station and told the teller that she needed four thousand dollars. Hossy then displayed an object and said she would press “the detonator and blow up the building” if the teller did not promptly comply with her demand. Hossy left the bank without any cash after she apparently noticed that the teller had pressed an emergency button located under the counter of the teller station.
Hossy was arrested two days later after an anonymous tipster provided information about her whereabouts after seeing bank surveillance camera photographs of Hossy in news reports. Following Hossy’s arrest, the bomb squads of the FBI and Albuquerque Police Department located the object displayed by Hossy during the attempted bank robbery and determined that it was a hoax bomb device.
Hossy pleaded guilty to the indictment on June 20, 2013, without the benefit of a plea agreement.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department and was prosecuted by Assistant U.S. Attorney William J. Pflugrath.
Alabama Man Pleads Guilty to Stealing Tax RefundsRead the Press Release
Tarrish Tellis of Montgomery County, Ala., pleaded guilty today to conspiracy, theft of public funds and aggravated identity theft, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney for the Middle District of Alabama George L. Beck Jr.
According to court documents, Tellis obtained and used the stolen means of identification of individuals, including their names, dates of birth and Social Security numbers, for the purpose of filing false federal income tax returns. Tellis instructed his co-conspirators and others to provide him with bank account numbers for accounts at financial institutions that were used to receive the fraudulently obtained tax refunds. Tellis used the account numbers and stolen means of identification to file false tax returns that claimed over $700,000 in false refunds. As a result of his plea, Tellis faces a maximum sentence of 17 years in prison and a maximum fine of $250,000 per count.
This case was investigated by special agents of the Internal Revenue Service (IRS) - Criminal Investigation. Trial Attorneys Charles M. Edgar Jr. and Michael Boteler of the Justice Department’s Tax Division prosecuted the case.
Alabama Man Pleads Guilty to Federal Murder-for-hire Charge for Attempting to HireKu Klux Klan to Kill NeighborRead the Press Release
A Talladega County, Ala., man pleaded guilty today in federal court to attempting to hire a member of the Ku Klux Klan to murder an African-American neighbor, the Justice Department announced today.
Allen Wayne Densen Morgan, 29, of Munford, Ala., entered a guilty plea before U.S. District Judge Karon O. Bowdre to one count of using and causing someone else to use interstate facilities and travel -- a telephone and a motor vehicle -- with the intent to commit a murder-for hire. Morgan's sentencing is scheduled Feb. 27, 2014, and he faces a statutory maximum penalty of 10 years in prison.
Federal officials arrested Morgan in August of 2013 after he told FBI agents posing as members of the KKK that he would pay them to murder his neighbor. Morgan admitted he offered a watch, a necklace and a gun as payment for the murder and gave explicit details for the man's torture and murder.
Morgan's efforts to arrange the paid murder of his neighbor unfolded as follows, according to his plea:
Morgan talked to an undercover FBI agent by telephone on Aug. 22, 2013, who identified himself as a KKK member. The men arranged to meet three days later at an Oxford motel to discuss payment for the murder. In that phone conversation, Morgan used a racial slur to describe the man he wanted killed and bragged that he had just fired several shots toward the man to intimidate him. Morgan also described, in detail, how he wanted the man to be “hung from a tree like a deer and gutted," to have body parts cut off and to "die a slow, painful death."
“The defendant attempted to arrange the brutal murder of his neighbor as vengeance for a perceived wrong,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division of the Department of Justice. “The Justice Department will prosecute with vigor those who seek violent vigilantism.”
“This defendant’s effort to solicit a murder for hire is a federal crime,” Joyce White Vance, U.S. Attorney for the Northern District of Alabama said. “The prosecution here was swift and the punishment will be in a federal penitentiary. Future wrongdoers are on notice that we vigorously prosecute these crimes."
The FBI investigated the case. Assistant U.S. Attorneys Pat Meadows and John B. Felton of the Northern District of Alabama and Civil Rights Division Trial Attorney David Reese are prosecuting the case.
7th National Take Back Initiative to be held October 26thRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul Jr. and Drug Enforcement Administration Resident Agent in Charge Michelle Spahn announced today that the public will have another opportunity to prevent prescription pill abuse and theft by ridding their homes of potentially dangerous expired, unused, or unwanted prescription drugs. The seventh National Take Back Initiative will take place this Saturday, October 26th from 10:00 A.M. to 2:00 P.M. The service is free and anonymous, no questions asked.
During the first six National Take Back events since September 2010, Americans turned in nearly 2.8 million pounds—almost 1,409 tons—of prescription drugs. Over 27 tons were collected in Western New York during the first six take backs, a total that represents one of the highest in the nation.
Prescription drugs that languish in medicine cabinets create a public health and safety concern because they are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high and indicate that almost twice as many Americans (6.8 million) currently abuse prescription drugs than the number of those abusing cocaine, hallucinogens, heroin, and inhalants combined, according to the 2012 National Survey on Drug Use and Health. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet.
DEA is in the process of drafting regulations to implement the Secure and Responsible Drug Disposal Act of 2010, which amends the Controlled Substances Act to allow an “ultimate user” (the patient or patient’s caregiver, including the owners of animals being treated by veterinarians) of controlled substance medications to dispose of them by delivering them to entities authorized by the Attorney General to accept them. The Act also allows the Attorney General to authorize long term care facilities to dispose of their residents’ controlled substances in certain instances.
The following is a list of local collection sites:Erie County Botanical Gardens, 2655 South Park Ave., Buffalo
St. Joseph’s Hospital, 2605 Harlem Rd., Cheektowaga
West Seneca Senior Center, 4620 Seneca St., West Seneca
Buffalo State College “C” Lot, 1300 Elmwood Ave., Buffalo
Kenmore Mercy Hospital, 2950 Elmwood Ave., Kenmore
West Herr Collision Center, 5140 Camp Road, Hamburg
Millard Fillmore Suburban Hospital, 1540 Maple Rd., Williamsville
DeGraff Memorial Hospital, 445 Tremont St. North Tonawanda
Twin District Fire Department, 4999 William St., Lancaster
Mercy Ambulatory Center, 3669 Southwestern Blvd, Orchard Park
Grand Island Town Hall, 2255 Baseline Rd., Grand Island
Lockport Plaza, South Transit and Willow Streets, Lockport
North Collins Police Department, 10543 Main St., North Collins
Former Niagara Falls Police Headquarters, 520 Hyde Park, Niagara Falls
Mt. St. Mary’s Hospital, 5300 Military Rd., Lewiston
Bertrand Chafee Hospital, 224 E. Main St., Springville
Gowanda Village Municipal Building, 27 East Main St., Gowanda
Cattaraugus Indian Reservation Health Center, 36 Thomas Indian School Drive, Irving
Pembroke Town Highway Barns, Routes 5 and 77, East Pembroke
Batavia Police Department, 10 W. Main St., Batavia
Arcade Police Station, 17 Church St., Arcade
Wyoming County Sheriff’s Department, 151 North Main St, Warsaw
Alstar Hqs. North, 738 Monroe St., Dunkirk
LeRoy Police Department, 3 W. Main St. Le Roy
Salamanca City Municipal Building, 225 Wildwood Ave., Salamanca
Lionel R. John Health Center, 987 R.C. Hoag Dr., Salamanca
Medina Fire Department, 600 Main St., Medina
Orleans County Public Safety Building, 13925 State Route 31, Albion
Geneseo Fire Department, 132 Center St., Geneseo
Holley Fire Department, 7 Thomas St., Holley
E. Avon Fire Department, 1615 W. Henrietta Road, Avon
Cuba Volunteer Fire Department, 51 East Main St., Cuba
Cattaraugus County Office Building, 1 Leo Moss Dr., Olean
Chautauqua Mall, 318 East Fairmount Ave., Lakewood
Brockport Police Department, 1 Clinton St., Brockport
Dansville Fire Department, 11 Franklin St., Dansville
Wellsville Fire Department, 20 S. Main St., Wellsville
Jamestown Pharmacy, 121 Liberty St., Jamestown
Monroe County Ecopark/Monroe County Sheriff’s Office, 10 Avion Dr., Rochester
Dansville Fire Department, 11 Franklin St., Dansville
Gates Police Department, 1605 Buffalo Rd., Gates
Brighton Police Department, 2300 Elmwood Ave., Brighton
Greece Police Department, 400 Island Cottage Rd., Greece
Almond Volunteer Fire Department, 1 Marvin Lane, Almond
East Rochester Police Department, 254 W. Ivy St., East Rochester
FF Thompson Hospital, 350 Parrish St., Canandaigua
Fairport Police Department, 31 S. Main St., Fairport
Webster Police Department, 226 Phillips Rd., Webster
Macedon Town Hall, 1620 Wayneport Rd., Macedon
Palmyra Police Department, 144 E. Main St. Palmyra
Wayne County Sheriff’s Office, Ontario Sub Station, 1850 Ridge Rd., Ontario
Wegman’s Plaza, 800 W. Miller St., Newark
Loson’s Big M Market, 33 Forgham St., Lyons
New York State Police, 3957 Rt. 104, Williamson
Yates County Sheriff's Department, 415 Liberty St., Penn Yan
Hammondsport Volunteer Fire Department, State Route 54, HammondsportSodus Police Department, 39 Gaylord St., Sodus
Tyrone Fire Station, 3600 State Route 226, Tyrone
Corning Police Department, 1 Civic Center Plaza, Corning
23 October 2013
Zachary T. Fardon Takes Oath of Office as U.S. Attorney for the Northern District of IllinoisRead the Press Release
CHICAGO ― Zachary T. Fardon, who served as a federal prosecutor for nearly a decade before entering private law practice, returned to government service today as the United States Attorney for the Northern District of Illinois. Mr. Fardon, 47, took his oath of office from Chief U.S. District Court Judge Ruben Castillo after President Obama signed his commission.
“I am honored and excited to serve as United States Attorney for the Northern District of Illinois. I spent my formative years as a prosecutor in this office, so I feel like I am back home. This is a great office, full of smart and passionate people. I look forward to continuing the office’s strong traditions of fairness and excellence in the pursuit of justice on behalf of the nine million residents of the Northern District of Illinois,” Mr. Fardon said.
A public investiture ceremony for Mr. Fardon is planned for the future but no date or details have yet been determined.
Gary S. Shapiro, who served as interim U.S. Attorney after Patrick J. Fitzgerald stepped down nearly 16 months ago, remains First Assistant U.S. Attorney. Mr. Fardon commended Mr. Shapiro for his stewardship of the office.
Mr. Fardon leads an office that is widely recognized for numerous significant investigations and prosecutions involving international terrorism and terrorism financing, public corruption, corporate fraud, violent crime, narcotics, and gangs. As U.S. Attorney, Mr. Fardon manages more than 300 employees, including approximately 170 authorized Assistant U.S. Attorney positions in Chicago and Rockford.
Mr. Fardon became an Assistant U.S. Attorney in Chicago in 1997 and tried several highprofile cases, including the 2005-06 corruption trial against former Illinois Governor George Ryan. From 2003 to 2006, he served as First Assistant U.S. Attorney for the Middle District of Tennessee in Nashville, where he supervised approximately 30 Assistant U.S. Attorneys in all federal criminal and civil matters. In 2007, he became a partner at Latham & Watkins LLP, where he chaired the Litigation Department in Chicago.
Mr. Fardon was born in Kansas City and raised in Knoxville, Tenn. He graduated in 1988 from Vanderbilt University in Nashville, where he also earned his law degree in 1992. He is married and has three children
Wisconsin Man Sentenced for Defrauding Local RetailersRead the Press Release
A man who defrauded local retailers by switching UPC codes on consumer products was sentenced today to more than one year in federal prison.
Jeremy J. Fishnick, age 27, from Lancaster, Wisconsin, received the prison term after a July 1, 2013, guilty plea to one count of wire fraud.
In a plea agreement, Fishnick admitted that, between at least July 2012 and November 20, 2012, he using home computer equipment and a printer to create fraudulent UPC codes on adhesive labels. He then entered retail stores and covered real UPC codes on higher‑priced models of certain products using the fraudulent UPC codes he created. In so doing, Fishnick caused the items to reflect substantially lower prices when electronically scanned at checkout. Fishnick admitted fraudulently purchasing products from stores in, at least, Dubuque, Iowa, Maquoketa, Iowa, Anamosa, Iowa, Cedar Rapids, Iowa, Coralville, Iowa, Monticello, Iowa, and Prairie Du Chien, Wisconsin. Fishnick also admitted his scheme caused a loss to retailers of more than $30,000. Fishnick admitted that he sold or attempted to sell a substantial portion of the fraudulently-obtained items over the Internet.
Fishnick was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Fishnick was sentenced to fourteen months’ imprisonment to be followed by a three-year term of supervised release. A special assessment of $100 was imposed, and he was ordered to make $33,632.74 in restitution to victim retailers. The restitution amount included $9,912.75 to one retailer as compensation for costs incurred in investigating Fishnick’s offense. There is no parole in the federal system.
Fishnick was released on the bond previously set and is to surrender to the United States Marshal on November 13, 2013.
The case was prosecuted by Assistant United States Attorney Peter Deegan and was investigated by the Dubuque, Iowa, Police Department; the Maquoketa, Iowa, Police Department; the Anamosa, Iowa, Police Department; the Cedar Rapids, Iowa, Police Department; the Coralville, Iowa, Police Department; the Monticello, Iowa, Police Department; the Vinton, Iowa, Police Department; the Lancaster, Wisconsin, Police Department; and the Prairie Du Chien, Wisconsin, Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-1009 LRR.
Washington’s Largest Used Car Dealership Pleads Guilty to Financial Reporting CrimesRead the Press Release
The largest volume used car dealership in Washington, pleaded guilty and was sentenced today in U.S. District Court in Seattle for failure to file a monetary transaction report, announced U.S. Attorney Jenny A. Durkan. ZEIN AUTOMOBILES, INC., d/b/a Independence Auto Sales and Best Bet Auto Sales with locations in Lynnwood and Everett, forfeited $1.5 million to the United States, paid a $250,000 fine and entered into a corporate integrity agreement to ensure the illegal conduct does not happen again. The car dealership was the subject of searches by law enforcement in September 2013.
“This resolution takes substantial profit from a business that flouted the law to fatten its bank account,” said U.S. Attorney Jenny A. Durkan. “It should serve as a warning to others – we will enforce laws on currency reporting which are an important tool for keeping illegal conduct out of the stream of commerce.”
In the plea agreement the corporation admits that between January 2010 and September 2013, its employees and agents entered into cash sales of vehicles in excess of $10,000 and failed to report the cash sales to the IRS. In a search warrant affidavit describing the Drug Enforcement Administration led investigation, undercover officers and confidential sources repeatedly purchased vehicles for cash at the two dealerships. Posing as drug traffickers, the undercover agents told sales people they did not want the cash transactions reported. The undercover agents were very clear that they wanted the vehicles for drug trafficking purposes. The sales people assured the agents that they were familiar and comfortable with such transactions and proposed various schemes that they said would avoid the cash transactions reporting requirements. Such schemes are illegal.
Under the terms of the corporate integrity agreement, the company is required to keep a log and report every cash transaction in excess of $10,000. Both the sales managers and title clerks are required to ensure the reports are made to the IRS. During a two year probationary period, the company is subject to unannounced audits to ensure such reports are being made. The company has also agreed to publicize its guilty plea, penalties, and compliance plan in formats to be approved by U.S. Probation.
The case was investigated by the Drug Enforcement Administration (DEA), the Internal Revenue Service Criminal Investigation (IRS-CI), the Seattle Police Department and the King County Sheriff’s Office.
The case was prosecuted by Assistant United States Attorneys Kate Vaughan and Robert Westinghouse.
Two Port St. Lucie Residents Sentenced in Conspiracy to Possess with Intent to Distribute Marijuana and Firearm ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, William D. Snyder, Sheriff, Martin County Sheriff’s Office (MCSO), John A. Bolduc, Chief, Port St. Lucie Police Department (PSLPD), announce the sentencing of Antione Elie Sparks, 41, and Jon Scott Merritt, 44, both of Port St. Lucie. Sparks and Merritt were each sentenced by U.S. District Judge Jose E. Martinez to a total of ten years in prison, followed by four years of supervised release. Sparks and Merritt also forfeited cash and a cache of weapons.
Sparks and Merritt had previously pled guilty to conspiracy to manufacture and possess with intent to distribute 100 or more plants of marijuana, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and (b)(1)(B), and possessing a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(ii).
According to the criminal complaints, MCSO deputies conducted a traffic stop of Antione Elie Sparks for speeding. During the traffic stop, a MCSO narcotics K-9 alerted for the presence of drugs. As a result, deputies conducted a search of the vehicle, and located approximately 120 grams of packaged marijuana. An inventory of the vehicle yielded Florida Power and Light bills for a residence in Port St. Lucie, as well as receipts from a hydroponics store for soil, nursery pots, LED lights, cloning gel and light bulbs, as well as receipts for several warehouse unit rentals in St. Lucie West. Deputies also recovered $3,900 during their inventory of the vehicle. Sparks admitted that there was additional marijuana and small marijuana plants growing at the residence.
Upon execution of the search warrant at the residence, detectives found loose marijuana and several plants, drug paraphernalia, a number of firearms and ammunition, including three pistols, three shotguns, two rifles and multiple magazines containing multiple rounds of ammunition and over $7,000 in U.S. currency.
Upon further investigation and execution of the search warrant at the storage units, detectives found a pistol, an AK-47 style rifle, an assault rifle, and a fully assembled Sig Sauer pistol with an obliterated serial number. In addition, detectives found a number of unassembled firearms, including several AK-47 kits, a shotgun, and revolvers.
Detectives also found approximately 380 grams of marijuana and three rooms that had been converted into marijuana grow rooms. Each grow room contained high intensity lighting, water irrigation systems, fans and climate control systems, timers, air filters, plastic buckets and marijuana plants with root systems. Detectives counted a total of 150 marijuana plants with root systems. PSLPD recovered multiple latent prints and partials from the grow equipment. A match was made between a recovered latent print and Jon Scott Merritt. Merritt was subsequently arrested at his residence where ATF agents found additional AK-47 type rifles and parts.
Mr. Ferrer commended the investigative efforts of ATF, the Martin County Sheriff’s Office and the Port St. Lucie Police Department. The case was prosecuted by Assistant U.S. Attorney Carmen Lineberger.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Men Admit Trafficking MarijuanaRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that OVES ST. ORBIN WRIGHT, 56, of Massapequa, N.Y., and KEVIN J. DUNBAR, 45, of Manchester, have pleaded guilty in Hartford federal court to marijuana distribution charges. WRIGHT pleaded guilty yesterday and DUNBAR pleaded guilty today.
According to court documents and statements made in court, on May 19, 2013, U.S. Customs and Border Patrol (CPB) agents in western Texas conducted a search of a tractor trailer and discovered approximately 315 pounds of marijuana secreted in a shipping crate. CBP agents contacted DEA agents in El Paso who determined that the crate was destined for a shipping facility in Enfield. On May 29, 2013, Connecticut DEA agents established surveillance at the Enfield shipping facility and observed WRIGHT and DUNBAR unpack the crate, load the contents into a van and travel to a storage facility in East Hartford where they were arrested.
WRIGHT and DUNBAR each pleaded guilty to one count of conspiracy to distribute and to possess with the intent to distribute marijuana, a charge that carries a maximum term of imprisonment of 20 years and a fine of up to $1 million. They are scheduled to be sentenced in January by U.S. District Judge Alvin W. Thompson in Hartford.
This matter is being investigated by the Drug Enforcement Administration, with the assistance of U.S. Customs and Border Patrol. The case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone and Special Assistant U.S. Attorney Michael Ahearn.
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(203) 821-3722 [email protected]Two Maui Residents Found Guilty of Fraud Charges Related to Debt Elimination SchemeRead the Press Release
HONOLULU -- A federal jury yesterday found Mahealani Ventura-Oliver, 44, and Pilialoha K. Teves, 52, both of Maui, guilty of conspiracy and mail fraud offenses arising out of their marketing of a debt elimination scheme between 2008 and 2009. The jury also found Ventura-Oliver guilty of conspiring to submit false tax returns, and of submitting a false tax return.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to evidence produced in court, Ventura-Oliver and Teves were part of a group known as Ko Hawaii Pae Aina, the Registry and Hawaiiloa Foundation. Between 2008 and 2009, the group held weekly seminars on Maui, where Ventura-Oliver and others spoke about Hawaiian history and culture, and royal land patents. The evidence showed that, in return for the payment of a fee, the group offered to provide distressed homeowners with “bonds” and other documents that would pay off their mortgages and forestall collection efforts. The “bonds” purportedly directed the United States Treasury Department or the State of Hawaii Comptroller of the Currency to make payments on behalf of the homeowners.
According to evidence presented at trial, Hawaiiloa Foundation collected approximately $468,000 from approximately 200 individuals who went through the debt elimination process. Many of the individuals tried to use the bonds, but ultimately lost their homes through foreclosure, or had to renegotiate loans.
The government presented evidence that, as part of its process, the Hawaiiloa Foundation also promoted a tax program whereby participants supposedly could seek refunds from the IRS for debts paid off with the purported bonds.
Following an 11 day trial, the jury found Ventura-Oliver guilty of conspiring to use fictitious financial instruments, 15 counts of mail fraud, one count of money laundering, one count of conspiring to submit false tax returns seeking $1.5 million in refunds from the IRS, and submitting one false tax return with her estranged husband, John Oliver, who pled guilty and testified at trial. Teves was convicted of conspiring to use fictitious financial instruments, and of 12 counts of mail fraud, and was acquitted of three counts of mail fraud.
Ventura-Oliver and Teves will be sentenced on February 10, 2014 by United States District Judge J. Michael Seabright. Ventura-Oliver faces the following penalties at sentencing: (1) a maximum sentence of five years on each of the conspiracy offenses, and the false claim offense; (2) up to 20 years on each of the 15 mail fraud offenses; and (3) up to 10 years on the money laundering offense of which she was convicted. Teves faces a maximum sentence of five years on the conspiracy charge, and up to 20 years on each of the 12 mail fraud offenses of which she was convicted. Each charge also carries a potential fine of up to $250,000.
The court will also have a hearing on whether the United States can forfeit property seized during the investigation of the case. The property includes approximately $84,000 in cash, more than $18,000 seized from bank accounts, gold coins worth over $36,000, and vehicles.
The investigation of this case was conducted jointly by the Federal Bureau of Investigation, the Internal Revenue Service -- Criminal Investigation, the United States Postal Inspection Service, and the Maui Police Department. The prosecution was handled by Assistant United States Attorneys Larry Tong and Michael Nammar.
Two Charged with Placing “Skimmer” on Springdale ATM to Steal Bank Card InformationRead the Press Release
CONTACT: Fred Alverson
Public Affairs OfficerCINCINNATI – A federal grand jury has indicted Dimitar Angelov, 28 and Dimitar Kolev, 26, both of Chicago, for placing an electronic scanning receiver, known as a “skimmer”, and a hidden camera on an ATM at a Springdale, Ohio bank in order to steal account information of customers using the ATM.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Mark Porter, Special Agent in Charge, U.S. Secret Service and Springdale Police Chief Michael Mathis announced the indictment today following the arraignment hearing for both men.
The one-count indictment charges them each with fraud in connection with access devices, a crime punishable by up to 15 years in prison.
According to court documents, Springdale Police officers responded to a call on September 28, 2013 that two individuals had been sitting in a car parked in a lot adjacent to a credit union ATM. The subjects were seen individually walking to the ATM and returning to the vehicle. Springdale officers later approached the men and found evidence of possible credit card fraud. Upon further investigation, law enforcement discovered the skimming device and a pinhole camera attached to the ATM.
Springdale officers and Secret Service agents arrested Angelov and Kolev on a federal complaint. They have been in custody since their arrest. The grand jury indicted them on October 16. They entered pleas today of not guilty before U.S. Magistrate Judge Karen Litkovitz, who ordered them held without bond pending trial. U.S. District Judge Michael R. Barrett will schedule a trial.
U.S. Attorney Stewart commended the cooperative ongoing investigation by Secret Service agents and Springdale officers, as well as the prompt action of nearby business owners. Assistant U.S. Attorney Timothy Mangan is prosecuting the case.
An indictment contains allegations and is not evidence of guilt. The defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two Area Men Sentenced on Federal Charges Including the Assault of A Federal OfficerRead the Press Release
St. Louis, MO – FREDERICK CRAYTON, St. Louis City, was sentenced this morning to 168 months in prison. He pled guilty in July to federal gun and assault charges involving the April 18, 2013, assault of a federal officer. His brother, DWAYNE CRAYTON, also pled guilty in July to charges of selling crack cocaine to an undercover officer and was sentenced today to 32 months in prison. Both defendants appeared before United States District Judge Audrey G. Fleissig in St. Louis.
According to court documents, on April 15, 2013, Dwayne Crayton sold crack cocaine to an undercover agent. Three days later on April 18, 2013, his brother and Frederick and James Jones arranged to sell three firearms to an ATF undercover agent and two confidential informants. During a struggle involving several firearms, Frederick Crayton assaulted the undercover agent in an attempt to rob the agent of the money that was to be used to buy the three firearms.
Co-defendant James Edward Jones, also of St. Louis City, pled guilty to related charges and awaits sentencing in December.
This case was investigated by the Bureau of Alcohol, Tobacco and Firearms. Assistant United States Attorney Tom Mehan is handling the case for the U.S. Attorney's Office.
Torreon, N.M., Man Sentenced to Ten Years for Using a Firearm During an Assault on a Native WomanRead the Press Release
ALBUQUERQUE – Permanuel Castillo, 23, an enrolled member of the Navajo Nation who resides in Torreon, N.M., was sentenced this afternoon to ten years in federal prison followed by five years of supervised release for using a firearm in relation to a crime of violence.
The charges against Castillo arose out of the Sept. 27, 2012 shooting of his girlfriend. On that day, New Mexico State Police officers responded to a call regarding a shooting at Castillo’s residence, which is located on the Navajo Indian Reservation. During questioning, Castillo initially claimed that his girlfriend had been the victim of a drive-by shooting. After further questioning, Castillo admitted shooting the victim multiple times in the chest but claimed that it was an accident.
Castillo was arrested on Sept. 27, 2012, on tribal charges by officers of the Navajo Division of Public Safety and was held in tribal custody until his arrest on Oct. 24, 2012, on a federal criminal complaint. Castillo subsequently was charged in a three-count indictment with (1) assault with a dangerous weapon, (2) assault resulting in serious bodily injury, and (3) using a firearm during a crime of violence.
On April 30, 2013, Castillo pleaded guilty to Count 3 of the indictment, charging him with using a firearm during a crime of violence, and admitted assaulting the victim by shooting her with a rifle. As a result of the assault, the victim sustained three gunshot wounds to the chest.
This case was investigated by the Albuquerque office of the FBI, the Crownpoint office of the Navajo Nation Division of Public Safety and the New Mexico State Police, and was prosecuted by Assistant U.S. Attorney Novaline D. Wilson.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project which is sponsored by the Justice Department’s Office on Violence Against Women, and seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Three Metro Area Men Indicted for Food Stamp FraudRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Alaa K. Jaber (a/k/a “Ace”), 27, of Hazelwood, Missouri, Rami M. Abou Amra (a/k/a “Lucky”), 35, of Troy, Illinois, and Albraa K. Sabrah (a/k/a “Roy”), 25, of Bridgeton Missouri, were each indicted by the federal grand jury on charges that they stole Supplemental Nutrition Assistance Program or “SNAP” (f/k/a Food Stamp) benefits while working at quick shop stores in East St. Louis, Illinois.
The three indictments allege that during varying times from 2010 through 2012, the defendants illegally paid customers cash in exchange for SNAP benefits. Jaber was charged in five counts; Abou Amra and Sabrah were each charged in three counts. Each count carries a maximum penalty of 5 years in prison, a $10,000 fine, and up to 3 years of supervised release.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
The case was investigated by agents of the U.S. Department of Agriculture – Office of Inspector General, the Internal Revenue Service – Criminal Investigation, and the U.S. Department of Homeland Security – Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney Ranley R. Killian.
Three Charged in Energy Pricing SchemeRead the Press Release
Michael Mateja, 27, of Massachusetts, Matthew Morgan, 39, of Schnecksville, PA, and Samuel Puleo, 26, of Fogelsville, PA, are charged by Information, filed yesterday, with a fraud scheme involving energy contracts, announced United States Attorney Zane David Memeger. According to the information, Mateja and Puleo owned and operated Coastal Energy, LLC, a company that brokered energy contracts between commercial businesses and energy suppliers.
Between June 2011 and February 2013, Mateja and Puleo solicited clients whom they had sign contracts (“Fixed All-Inclusive”) stating that Coastal would negotiate fixed rates for each kilowatt hour. Alternatively, an “Energy Only” contract provides the customer with a rate for kilowatt hours but does not include additional charges for transmission and capacity. According to the information, Mateja and Puleo altered contracts to change the terms from “Fixed All-Inclusive” to “Energy Only” without the clients’ knowledge. The end result that that the total per kilowatt hour price that Coastal’s clients had to pay were higher than the rates they agreed to pay. They are each charged with wire fraud. Mateja and Morgan are also charged with obstruction of justice for an alleged attempt to delete documents located on Coastal’s computers.
If convicted, each defendant faces a maximum possible sentence of at least 20 years in prison, three years supervised release, $250,000 fine, and a $100 special assessment
The case was investigated by Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney David L. Axelrod.
Click here to view the indictment
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PATTY HARTMAN, Media Contact, 215-861-8525Steelton Resident Involved in Confrontation with Harrisburg Police Charged with Federal Firearm ViolationsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Donnell Thomas, 26, of Steelton, Pennsylvania, was indicted today by a federal grand jury in Harrisburg, Pennsylvania. The indictment charges Thomas with Possession of a Firearm by a Convicted Felon, Possession of a Firearm in furtherance of Drug Trafficking, Possession with Intent to Distribute a Controlled Substance, and Possession of a Firearm with an Obliterated Serial Number.
According to United States Attorney Peter J. Smith, the charges against Thomas are a result of allegations that in February 2013, Thomas attempted to ram a vehicle being driven by uniformed officers from the Harrisburg Police Bureau. He then fled from those officers but was ultimately apprehended after discarding a firearm with an obliterated serial number from the waistband of his pants. Upon his arrest, bags containing an alleged controlled substance were seized from his person and his vehicle.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Harrisburg Police Bureau and is being prosecuted by Assistant United States Attorney Meredith A. Taylor as part of the on-going cooperative effort by federal, county and Harrisburg law enforcement agencies to fight violent crime in the city.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Statement of Manhattan U.S. Attorney Preet Bharara on the Countrywide, Bank of America, and Rebecca Mairone VerdictRead the Press Release
“Almost a year to the day after we brought suit, a unanimous jury has found Countrywide, Bank of America, and senior executive Rebecca Mairone liable for making disastrously bad loans and systematically removing quality checks in favor of its own balance. As demonstrated at trial, they adopted a program that they called “the Hustle,” which treated quality control and underwriting as a joke.
In a rush to feed at the trough of easy mortgage money on the eve of the financial crisis, Bank of America purchased Countrywide, thinking it had gobbled up a cash cow. That profit, however, was built on fraud, as the jury unanimously found.
In this case, Bank of America chose to defend Countrywide’s conduct with all its might and money, claiming there was no case here. The jury disagreed. This Office will never hesitate to go to trial to expose fraudulent corporate conduct and to hold companies accountable, particularly when it has caused such harm to the public.
I want to thank the members of the jury for their service in this important trial. And I commend the Assistant U.S. Attorneys in the Office's Civil Division for their dedication, skill, and tireless efforts.”
Stamford Resident Charged with Running Fraud Scheme to Obtain Hundreds of Computer Networking PartsRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that CRAIG A. STANLAND, 40, of Stamford, has been charged by criminal complaint with operating a scheme through which he fraudulently obtained hundreds of computer networking parts from Cisco Systems, Inc.
STANLAND was arrested on October 1, 2013. Following his arrest, he appeared before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and was released on a $100,000 bond. The criminal complaint was unsealed on October 21.According to the criminal complaint, STANLAND operated a service contract fraud scheme for approximately a year leading up to his arrest. As alleged, STANLAND purchased or controlled approximately 14 service contracts for Cisco networking parts. Pursuant to these service contracts, STANLAND – using the aliases Alan Johnston of Opex Solutions, Kyle Booker of KLB Networks, Steve Jones of SHO Networks, Robert Johnson of Adaptations, and Paul Smith of PS Solutions, among others – made hundreds of false service requests to Cisco to replace purportedly defective computer networking parts. Based on these requests, Cisco shipped replacement parts to various addresses at STANLAND’s direction, including to his home in Stamford, to his wife’s business in Brooklyn, N.Y., and to two post office boxes in Greenwich. Although STANLAND was supposed to return each allegedly defective part to Cisco, he either returned no parts at all or instead sent to Cisco third-party, off-brand parts.
It is alleged that STANLAND fraudulently obtained more than 400 parts from Cisco through this scheme. The retail cost of the parts ranged from approximately $500 to $8,600.
The criminal complaint charges STANLAND with mail fraud, which carries a maximum term of imprisonment of 20 years.
Acting U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation with valuable assistance from the Greenwich Police Department. The case is being prosecuted by Assistant U.S. Attorney David T. Huang
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
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(203) 821-3722 [email protected]St. Louis Man Charged in Federal Court with Robbery of Cahokia Gas StationRead the Press Release
Case Is One of Many Brought as a Result of United States Attorney Wigginton’s Metro-East Armed Robbery Initiative
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on October 23, 2013, Carvin G. Brooks, 33, of St. Louis, Missouri, was indicted by a federal grand jury sitting in East St. Louis, Illinois, with count 1, interference with commerce by robbery (Hobbs Act) in connection with a robbery of a BP Gas Station that occurred in Cahokia, Illinois, on October 9, 2013.
If convicted of a violation of the Hobbs Act, Brooks faces a term in prison of up to 20 years, a fine of up to $250,000, or both, and a term of supervised release of up to 5 years, as well as a mandatory assessment of $100.
An indictment is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
A tip from Crimestoppers led to the arrest of the defendant. This case is being investigated the Cahokia Police Department and is assigned to Special Assistant United States Attorney Neal C. Hong for prosecution.
St. Charles County Man Indicted on Federal Child Enticement ChargesRead the Press Release
St. Louis, MO – MICHAEL ENGLER was charged for allegedly soliciting sex from a minor on Craigslist. But that minor was an undercover officer working with the FBI’s Crimes Against Children Task Force.
According to a federal criminal complaint filed October 17th, when an undercover officer posing as an 18-year-old posted a “male looking for a male” ad on Craigslist, Engler responded. When the undercover officer told Engler he was "14," Engler still wanted to meet the child. According to court documents, when the "14-year-old" expressed hesitation, Engler told him he knew about boys experimenting and told him he was in a Boy Scouts "venturing program" for kids aged 14 – 20. On October 15, Engler agreed to meet with the officer posing as the 14-year-old boy saying he would teach him about oral sex. Engler was arrested on October 16 when he showed up at the designated meeting spot behind an ice rink at Brentwood.
Engler, St. Charles, MO, was indicted by a federal grand jury today on one felony count of attempting to persuade, induce, entice and coerce a minor to engage in sexual activity.
If convicted, this charge carries a penalty range of ten years to life in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the St. Louis County Police Department in conjunction with the Federal Bureau of Investigation, the United States Secret Service and the St. Charles County Cybercrime Unit. Assistant United States Attorney Jennifer Winfield is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
St. Augustine Sex Offender Pleads Guilty in Federal Court to International Transportation of Child PornographyRead the Press Release
Jacksonville, Florida – Acting United States Attorney A. Lee Bentley, III announced today that Charles Lee Gorish (67, St. Augustine) pleaded guilty to transporting images and videos of child pornography from Florida to Canada. Gorish faces a mandatory minimum penalty of not less than 15 years and up to 40 years in federal prison. Gorish has been in custody since his arrest in St. Augustine on September 7, 2012. A sentencing hearing has not yet been set.
According to court documents, Gorish, using a fake name, sent a package by FedEx from St. Augustine to an individual in Ontario, Canada. The package was intercepted by Canadian law enforcement officers. It contained, among other things, two micro SD media cards with more than 600 images and videos depicting child pornography, and thousands of images of child erotica. Canadian officials notified the St. Johns County Sheriff=s Office (SJCSO), the Federal Bureau of Investigation, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations regarding the seizure of this package. Further investigation revealed that Gorish is a registered sex offender. He was convicted in Hillsborough County, Florida on February 24, 1992, for lewd and lascivious conduct on a minor child.
On September 7, 2012, FBI agents and SJCSO personnel executed a federal search warrant at Gorish=s residence in St. Augustine. During an interview, Gorish admitted, among other things, that he downloaded the files depicting the sexually explicit images of young boys on the SD cards from the Internet, over a period of years. Gorish was subsequently arrested.
This case was investigated by the Canadian Border Services Agency, Ottawa Police Services, St. Johns County Sheriff's Office, the Federal Bureau of Investigation, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Smith County Man Sentenced for Child Pornography ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 39-year-old Tyler, Texas, man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Mark Anthony Hicks pleaded guilty on June 4, 2013 to possession of child pornography and was sentenced to 24 months in federal prison today by U.S. District Judge Leonard E. Davis.According to information presented in court, on Feb. 28, 2013, federal and local law enforcement agents executed a search warrant at Hicks’ residence in Tyler, Texas. A computer hard drive was seized during the search and found to contain more than 100 images and nearly 30 videos of child pornography. Hicks was indicted by a federal grand jury on Mar. 27, 2013 and charged with child pornography violations.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by United States Secret Service and the Longview Police Department and prosecuted by Assistant U.S. Attorney L. Frank Coan, Jr.Shiprock Man Sentenced to Fifty-Seven Months for Aiding and Abetting an Armed Robbery on the Navajo Indian ReservationRead the Press Release
ALBUQUERQUE – Neilson McKensley, 49, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced this morning to 57 months in federal prison followed by three years of supervised release for his conviction for aiding and abetting an armed robbery in Indian Country.
McKensley was arrested on Nov. 13, 2012, on a criminal complaint charging him with being an accomplice to an armed robbery of a residence in Shiprock on Oct. 26, 2012. He subsequently was indicted on that same charge. McKensley has been in federal custody since his arrest.
According to court records, McKensley assisted Randy Coolidge, 46, in robbing the residence of an acquaintance in the early hours of Oct. 27, 2012, by driving Coolidge to the residence. After putting duct tape over his face to conceal his identity, Coolidge approached the residence armed with a pistol. When Coolidge tried to push his way into the residence, the victim attempted to take the pistol away from Coolidge. As the two men fought over the pistol, the pistol discharged and Coolidge was shot in the chest and stomach. Coolidge subsequently died of his wounds. The victim then realized that McKensley, whose face also was covered with black duct tape and who was armed with a steel pipe, was standing by his door. After attempting unsuccessfully to drag Coolidge from the residence, McKensley left Coolidge behind and drove away. Officers initiated the investigation leading to McKensley’s arrest after Coolidge’s body was found shortly thereafter.
On May 6, 2013, McKensley pleaded guilty to the indictment and admitted driving Coolidge to the victim’s residence knowing that Coolidge intended to take items of value from the victim by force and violence. McKensley also admitted that he intended to help Coolidge rob the victim.
This case was investigated by Albuquerque and Farmington offices of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorney Mark T. Baker.
Sex Offender Sentenced to 15 Years for Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Fordland, Mo., man who was on parole after being convicted of child molestation was sentenced in federal court today for downloading child pornography to his cell phone.
Thomas E. Wilson, 27, of Fordland, was sentenced by U.S. District Judge Beth Phillips to 15 years in federal prison without parole. Wilson was convicted of child molestation in Webster County Circuit Court in 2006 and sentenced to seven years in state prison. He was released on parole in January 2011, and was still on parole at the time of the federal offense. Wilson’s parole was revoked; his federal sentence will be served consecutively to the state sentence, followed by federal supervised release for the rest of his life.
Wilson pleaded guilty on June 10, 2013. He was arrested after an Ozark, Mo., police officer noticed him sitting in his car in the parking lot of a closed business on Nov. 15, 2012. When the officer examined Wilson’s cell phone, he discovered images of child pornography. More than 150 images of child pornography were identified in a forensic examination of the phone.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Ozark, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Seven Individuals Charged in Connection with Multi-Million Dollar Mortgage Modification SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Christy Romero, the Special Inspector General for the Troubled Asset Relief Program (“SIGTARP”), and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment in Manhattan federal court charging GUY SAMUEL, the co-owner of a company that purported to provide mortgage modification services, and four former employees of the company, ANTHONY BLACKWELL, ANGEL GONZALEZ, JONATHAN LYONS, and AREN GOLDFADEN, for their alleged participation in a multimillion-dollar scheme that victimized more than 500 financially struggling homeowners across the country. The defendants were arrested earlier this morning and will be presented in Manhattan federal court this afternoon before U.S. Magistrate Judge Frank Maas. The case is assigned to U.S. District Judge George B. Daniels.
Also unsealed today were the guilty pleas of SCOTT SCHREIBER and DARRELL KEYS in connection with their participation in the scheme. SCHREIBER pled guilty pursuant to an Information before U.S. District Judge Robert P. Patterson on October 16, 2013, and KEYS pled guilty pursuant to an Information before U.S. District Judge Robert W. Sweet on September 19, 2013.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, these defendants told one lie after another, purporting to help struggling homeowners looking for an end to their financial troubles but instead defrauding them out of millions. This Office has zero tolerance for those who would target already distressed borrowers in hopes of turning a profit at their expense, and we will continue to work to hold these and like-minded defendants accountable.”
Special Inspector General of SIGTARP Christy Romero said: “Samuel and his coconspirators stand charged today with ripping off struggling homeowners desperately trying to keep a roof over their heads in the midst of the nation’s housing crisis. They allegedly claimed their ‘business’ was affiliated with TARP’s housing program, HAMP, and instructed victims to stop paying their mortgages immediately, transfer thousands of dollars in upfront frees to their company in exchange for false promises of a guaranteed mortgage modification, and cease all communication with their mortgage lenders. After allegedly swindling more than 500 struggling homeowners nationwide out of $2.3 million in ill-gotten proceeds, Samuel refused to provide refunds to victims for whom he and others did little if any work. Instead, Samuel purportedly spent hundreds of thousands of dollars on vacations, entertainment, and personal expenses. I commend U.S. Attorney Bharara and his team for their efforts in prosecuting this case, and let this be a warning to anyone allegedly engaged in fraud related to TARP; if guilty, you will be held accountable and brought to justice by SIGTARP and our law enforcement partners.”
FBI Assistant-Director-in-Charge George Venizelos said: “Struggling homeowners became easy prey for these defendants, who allegedly lured their victims into a false sense of security by promising to save them from financial burden in exchange for a fee. Those charged allegedly conspired to divert these funds into their own pockets and hid behind the façade of a legitimate federal assistance program with which they were not affiliated. This type of criminal activity is not only devastating to victims, but poses a serious threat to the integrity of our marketplace. Today we remind everyone of our commitment to identify sophisticated schemes that take advantage of vulnerable homeowners; those responsible will not go unpunished.”
According to the allegations contained in the Indictment, the Informations unsealed today, and statements made in related proceedings:
From approximately January 2009 to June 2011, the defendants perpetrated a scheme to defraud homeowners who were in danger of losing their homes because they could not afford to pay their residential mortgages. Through a company located in Long Island, New York (“Company-1”), and its successor companies (the “Mortgage Modification Companies”), the defendants and other employees falsely promised to help financially struggling residential mortgage holders refinance their mortgages for lower interest rates and monthly payments. Despite the defendants’ claims, however, the Mortgage Modification Companies delivered little or no service to their customers, diverting most, if not all, of the customers’ payments to the Mortgage Modification Companies’ owners and employees rather than using those funds to assist customers in procuring mortgage modifications. Through their scheme, the Mortgage Modification Companies obtained at least $2.3 million from more than 500 homeowners throughout the United States.
The Mortgage Modification Companies charged customers thousands of dollars in up-front fees—in violation of New York State law—and made fraudulent claims about the companies’ services, including that the Mortgage Modification Companies guaranteed that they would either: (i) secure a mortgage modification that would result in a significant reduction in the customer’s interest rate and/or monthly payments; or (ii) provide the customer’s money back. Through the Mortgage Modification Companies, the defendants and other employees also falsely claimed to be affiliated with the federal government’s Home Affordable Modification Program (“HAMP”), a federally-funded mortgage assistance program that is part of the Troubled Asset Relief Program and is available to homeowners free of charge.
SAMUEL, the co-owner and operator of the Mortgage Modification Companies, purchased on behalf of those companies tens of thousands of “leads” containing names and contact information for homeowners who had fallen behind or were in danger of falling behind in making mortgage payments on their homes. SAMUEL, BLACKWELL, who held himself out as an attorney for the Mortgage Modification Companies despite not having a valid law license for most of the relevant period, and GONZALEZ, a sales manager, instructed the companies’ sales representatives—who were responsible for calling, and answering calls from, struggling homeowners—to make materially false or misleading representations to convince prospective clients to pay upfront fees to the companies. Those false or misleading representations included that the Mortgage Modification Companies were associated with HAMP; that a mortgage modification was guaranteed and would take only approximately thirty to sixty days; and that the Mortgage Modification Companies would issue a full refund of the upfront fee to any client whose mortgage was not successfully modified in the stated time period. At the direction of SAMUEL, BLACKWELL, and GONZALEZ, the Mortgage Modification Companies routinely refused to provide refunds to customers despite the fact that those customers did not obtain mortgage modifications as promised.
SAMUEL, BLACKWELL, and GONZALEZ also personally met with and spoke directly to customers and told similar lies. They sought to cover up their fraudulent scheme by, among other things, directing sales representatives to assuage customers by falsely claiming that work was being done on the customer’s behalf and that the company just needed more time to obtain a mortgage modification, when, in fact, little or no work was being done to provide a mortgage modification to the customers. SAMUEL also made materially false and misleading statements in a deposition conducted by the New York State Attorney General’s Office in connection with an investigation of complaints by the Mortgage Modification Companies’ customers.
LYONS, GOLDFADEN, and KEYS worked as sales representatives for the Mortgage Modification Companies. SCHREIBER was the co-owner of Company-1.
SAMUEL, 32, of Richmond Hill, New York; BLACKWELL, 47, of Manhattan, New York; GONZALEZ, 31, of Rosedale, New York; LYONS, 51, of Rockville Center, New York; and GOLDFADEN, 36, of East Rockaway, New York, are each charged with one count of conspiracy to commit wire fraud, and one count of wire fraud, each of which carries a maximum sentence of 20 years in prison.
SCHREIBER, 30, of Brooklyn, New York, pled guilty to one count of conspiracy to commit wire fraud and one count of wire fraud, and he faces a maximum sentence of 40 years in prison. KEYS, 51, of Uniondale, New York, pled guilty to one count of conspiracy to commit wire fraud, and he faces a maximum sentence of 20 years in prison.
Mr. Bharara praised SIGTARP and the FBI for their outstanding work in the investigation. Mr. Bharara also thanked the New York State Attorney General’s Office for its assistance.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
This matter is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorney Janis Echenberg is charge of the case.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Seven Arrested on Federal Drug and Gun Charges During Early Morning Round-upRead the Press Release
Seven More Arrested This Morning Will Face Criminal State Charges
CHARLOTTE, N.C. – A total of 14 defendants were arrested earlier today and face federal and state criminal charges, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Seven of the defendants have been charged with federal drug and gun offenses, and seven face state criminal charges.
U.S. Attorney Tompkins is joined in making today’s announcement by Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; Andrew Murray, District Attorney for Mecklenburg County; and Chief Rodney D. Monroe, of the Charlotte-Mecklenburg Police Department (CMPD).
The defendants were apprehended during an early morning round-up conducted by ATF, the U.S. Marshals and CMPD. Those arrested and charged by federal criminal complaints include, in alphabetical order:
• Donuell Johnson a/k/a “Rock,” 29, of Charlotte.
• Waycus Luckett, a/k/a “Lucky,” 31, of Charlotte.
• Erecai Lynch, 26, of Charlotte.
• David Ray McCullough, 37, of Charlotte.
• Christopher Roseboro, 33, of Charlotte.
• Brandon Tate, 26, of Charlotte.
• Terrence Tate, 21, of Charlotte.
Click on the links below to view a chart of federal charges and penalties for each defendant: Penalties
Federal arrest warrants have also been issued against Rodney Reid, 37, Jimareo Sherrill, 21, and Quandarius Shine, 23, all of Charlotte, who are still wanted by law enforcement.
Five additional defendants previously arrested on state charges have now been charged with federal offenses in connection with this investigation, bringing the total number of those charged federally to 15. They are: Jerry Lee Edwards, 27; Isiah Ezechukwu, a/k/a “Donte,” 26; Denis Joel Argueta Gonzalez, 20; Jamil Weaks, 19; and Darryl Whiteside, Jr., 26, all of Charlotte.
Seven more defendants arrested during this morning’s round-up face state criminal charges.
Over the course of the investigation law enforcement seized 10 firearms, including two loaded SKS rifles and stolen firearms brought into North Carolina from out of state.
Today’s arrests are the result of a four-month investigation targeting drug trafficking and violent crime in and around the Sugar Creek/Interstate 85 corridor. The agencies involved in this initiative are dedicated to working together to identify violent and repeat offenders for federal prosecution. This investigation, which began in early summer, is part of U.S. Attorney General Eric Holder’s Anti-Violence Initiative, which calls for federal, state and local agencies to target violent crime hot spots and collaborate on developing strategies to reduce crime and violence in those communities.
In making today’s announcement U.S. Attorney Tompkins stated, “This morning’s arrests are the result of a joint law enforcement investigation targeting an area of Charlotte that is afflicted by crime and drug-fueled violence. I want to thank our law enforcement partners who united to identify and remove violent felons from our streets and let this be a warning that we will not sit on the sidelines while our neighborhoods are polluted with drugs and violence.”
“Today’s law enforcement operation in the Interstate 85 corridor area in Charlotte should send the clearest message possible. As long as those individuals who insist on returning here again and committing violent crimes and violations of gun and drug laws, the ATF/CMPD Violent Crimes Task Force and our law enforcement partners will continue to identify you and put you behind bars where you belong,” said ATF Special Agent in Charge Wayne L. Dixie. “Our commitment to providing a safe and secure community for the citizens of Charlotte should not continue to be challenged, because we have demonstrated that we will utilize all of our joint resources and rise to that challenge if necessary.”
“We will continue to work to improve the quality of life for the citizens in this community by working with our committed partners in reducing crime,” said Charlotte-Mecklenburg Police Chief Rodney D. Monroe.
“We’re proud to stand beside our U.S. Attorney’s Office and law enforcement partners today and every day in our efforts to seek justice in our community,” said Mecklenburg County District Attorney Andrew Murray.
The seven federal defendants arrested today are currently in federal custody. Their initial appearances will be held in U.S. District Court before U.S. Magistrate Judge David Keesler.
The charges contained in these complaints are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The investigation is being conducted by the ATF and CMPD. U.S. Attorney Tompkins also thanked the U.S. Marshals for their invaluable assistance in making today’s arrests.
Assistant U.S. Attorney Ann Claire Phillips of the U.S. Attorney’s Office in Charlotte is leading the prosecution.
Rising Sun Man Sentenced to over 17 Years in Prison for Sexually Exploiting A Minor to Produce Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Michael Dale Irwin, age 27, of Rising Sun, Maryland, today to 210 months in prison, followed by lifetime supervised release, for the sexual exploitation of a minor to produce child pornography. Judge Bennett also ordered that upon his release from prison, Irwin must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel Marcus L. Brown, Superintendent of the Maryland State Police (MSP); and Cecil County State’s Attorney Ellis Rollins.
According to Irwin’s plea agreement, on March 12, 2013, a witness reported to Maryland State Police that Irwin had sent an image to her cellular phone documenting his sexual abuse of a prepubescent minor female. The witness contacted MSP when she recognized Irwin in the image. Although the messages were set to “auto delete” and were no longer on the witness’ phone, with the consent of the witness MSP began monitoring calls and text messages between Irwin and the witness and directed all communication by the witness with Irwin. After Irwin sent the witness a video depicting a six to eight year old female engaged in sexually explicit conduct, troopers arrested Irwin at his place of employment and seized his phone, which had been used to text and call the witness. MSP recovered the images and video documenting Irwin’s sexual abuse of a prepubescent minor female and obtained the sexually explicit text messages that he had previously sent to the witness describing in graphic detail the sexual acts he performed on the child. HSI special agents in Baltimore conducted the forensic examination on Irwin’s phone and HSI’s victim witness specialist provided substantial assistance to the victims and their families.
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 "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, the Maryland State Police and the Cecil County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Sandra Wilkinson, who prosecuted the case.
Richmond Man Sentenced to More Than 12 Years in Federal Prison for Holding Undercover Agent at Gunpoint During Attempted RobberyRead the Press Release
OAKLAND – Khusar Mobley was sentenced today to 147 months’ imprisonment, for conspiracy to commit robbery; assault on a federal officer; robbery; and brandishing a firearm during a crime of violence, United States Attorney Melinda Haag announced.
Mobley, 20, of Richmond, was convicted after a four-day jury trial on June 20, 2013. During the trial, evidence showed that Mobley held a loaded gun to the head of an undercover agent from the Bureau of Alcohol, Tobacco, Firearms, and Explosives. As the agent attempted to push the gun away, Mobley – with his finger on the trigger – demanded that the agent empty his pockets. When nearby government agents came to the rescue, Mobley attempted to pull the trigger several times, but he was prevented from doing so by a heroic person who jammed his thumb under the trigger of the gun.
Mobley’s co-defendants – Otis Mobley and D’Marce Hutcherson – pleaded guilty and were sentenced to 114 months’ and 108 months’ imprisonment respectively in May 2013.
“The defendant’s conduct in this case should remind us all of the grave danger that law enforcement officers face every day when they do their jobs of keeping the public safe,” said United States Attorney, Melinda Haag. “The substantial sentence that the court imposed today should demonstrate that the U.S. Attorney’s Office will prosecute violent offenders to the full extent of the law and hold them accountable for their crimes.”
“This case shows how firearms used by violent criminals terrorize our communities and put the public at risk,” stated Bureau of Alcohol, Tobacco, Firearms, and Explosives, Special Agent in Charge Joseph M. Riehl. “We are grateful for the safety of our agent who worked in an undercover capacity and was robbed at gunpoint. I would like to thank the cover team and the undercover agent for their brave response to a dangerous situation. I would also like to thank the United States Attorney’s Office for their diligent work in prosecuting this case. Let this sentencing be a message to those who pose a threat to our community that ATF will hold them accountable.”
The sentence was handed down by The Honorable Yvonne Gonzalez Rogers, U.S. District Court Judge. The defendant was also sentenced to a five-year period of supervised release. Mr. Mobley is already in custody and will begin serving his sentence immediately.
James C. Mann and Natalie Lee are the Assistant U.S. Attorneys who prosecuted the case with the assistance of Vanessa Vargas.
(Mobley indictment )
Reeds Spring Man Sentenced to 15 Years for Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Reeds Spring, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Seth Eugene Henderson, 40, of Reeds Spring, was sentenced by U.S. District Judge Beth Phillips to 15 years in federal prison without parole. Henderson was sentenced as an armed career criminal due to his prior felony convictions.
On June 26, 2013, Henderson pleaded guilty to being a felon in possession of a firearm. Henderson admitted that he was in possession of a loaded Hi-Point 9mm pistol on Dec. 19, 2012. Henderson was the passenger in a stolen truck that eluded law enforcement officers during a pursuit. Henderson, carrying the pistol, fled from the vehicle and was chased by a sheriff’s deputy. After a short chase, the officer subdued Henderson with his Taser and arrested him.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Henderson has two prior felony convictions for distributing a controlled substance as well as prior felony convictions for manufacturing or possessing a controlled substance with the intent to distribute, burglary and possession of a chemical with the intent to manufacture a controlled substance.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Stone County, Mo., Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Philadelphia Woman Sentenced to More Than Three Years for Identity TheftRead the Press Release
SAN JOSE – Vernina Adams was sentenced today to 38 months in prison for wire fraud and aggravated identity theft, United States Attorney Melinda Haag announced.
On January 9, 2013, pursuant to a plea agreement with the government, Adams pleaded guilty to one count of wire fraud and one count of aggravated identity theft. Adams admitted that beginning in March 2010, and continuing to approximately June 2010, she carried out a scheme to defraud Paymate, which was a credit card processing company for people who bought and sold goods on the Internet located in Woodside, Calif.
As part of her guilty plea, Ms. Adams, 31, of Philadelphia, Pennsylvania, admitted that she had created several fictitious businesses on the Internet using the names of other people without authorization, and also opened bank accounts for each of those fictitious businesses, again using the names of real people without authorization. Adams also admitted that she had opened Paymate accounts in the names of those fictitious Internet businesses. She then used her own credit cards, as well as credit cards belonging to her relatives and friends, to pretend to purchase goods and services in amounts ranging from $1,000 to $7,000 from the fictitious businesses. Paymate processed those payments.
After Paymate deposited funds from the fraudulent sales into the bank accounts associated with the fictitious businesses, Adams immediately withdrew the fraudulently-acquired funds from various automated teller machines in Pennsylvania. She then contacted the credit card companies and reported that she had not received the goods or services. Adams also instructed her friends and relatives to do the same. The credit card companies then initiated a “charge-back” and recovered the amounts fraudulently charged from Paymate. When Paymate attempted to reclaim the funds from the bank accounts associated with the fictitious businesses, there were insufficient funds in the bank accounts because Adams had already withdrawn all of the money from the purported sales.
Adams, was indicted on July 25, 2012. She was charged with five counts of wire fraud, in violation of 18 U.S.C. § 1343, and two counts of aggravated identity theft, in violation of 18 U.S.C. §§ 1028A(a)(1)(A) and 1028A(c)(5). Under the plea agreement, Adams pleaded guilty to one count of wire fraud and one count of aggravated identity theft.
The sentence was handed down by The Honorable Lucy H. Koh, U.S. District Court Judge. Adams was also sentenced to a three-year period of supervised release and ordered to pay $32,500 in restitution to Paymate. Adams will begin serving the sentence on January 24, 2014.
Susan Knight is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Tracey Andersen. The prosecution is the result of a one-year investigation by the Federal Bureau of Investigation.
(Adams indictment )
Philadelphia Man Charged with Bank FraudRead the Press Release
Robert Von Ryan, 37, of Philadelphia, was charged yesterday by information with one count of bank fraud, announced United States Attorney Zane David Memeger. According to the information, while guarding the cars of Philadelphia Eagles football players, the defendant took bank account information belonging to one of the players and used the bank information to transfer more than $225,000 from the account.
If convicted the defendant faces a maximum possible sentence of 30 years imprisonment, a $1,000,000 fine, five years of supervised release and a $100 special assessment.
The case was investigated by the United States Secret Service, and is being prosecuted by Assistant United States Attorney Linwood C. Wright, Jr.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Owners of Tax Preparation Business Arrested in Delaware, Charged with Filing Thousands of Phony Tax ReturnsRead the Press Release
TRENTON, N.J. – The two owners of a tax preparation business that claimed millions of dollars in fraudulent tax refunds on behalf of inmates at various New Jersey prisons were arrested this morning in Laurel, Del., U.S. Attorney Paul J. Fishman announced.
Special agents of the IRS-Criminal Investigations (IRS-CI) arrested Kamal J. James, aka “Bro Messiah Aziz El,” and Crystal G. Hawkins, aka “Sis. Crystal Gabri El,” at Hawkins’ residence on a criminal complaint charging them with one count of conspiracy to defraud the United States. The pair operated Release Refunds, a purported tax preparation business – previously based in Brick, N.J., and now in Seaford, Del. – through which they solicited New Jersey prison inmates as clients and then filed thousands of fraudulent tax returns on their behalf. James’ and Hawkins’ conduct allegedly resulted in hundreds of thousands of dollars in illicit profits and an actual tax loss of approximately $1.7 million.
James and Hawkins appeared in Trenton federal court this afternoon before U.S. Magistrate Judge Douglas E. Arpert. During the proceeding, the government alleged that marijuana plants and a firearm were found in the Laurel home during the arrests. James was detained following the proceeding and Hawkins is expected to be released on a $250,000 bond.
According to the complaint unsealed today:
Between October 2011 and October 2013, James and Hawkins conspired to defraud the United States out of millions of dollars by creating and filing income tax returns that were based on bogus income and withholding information. James and Hawkins used their purported tax preparation business as a vehicle to carry out the scheme.
To execute the scheme, James and Hawkins sent Release Refunds “promotional” flyers to inmates at various New Jersey prisons offering tax return preparation services. The pair asked inmates interested in Release Refunds’ services to provide basic identification information and to sign Income Tax Returns and other IRS documents, but not to include any information about their income or withholdings. James and Hawkins then filled in the missing income information on the return forms, fabricating the inmates’ earnings to trigger fraudulent and inflated refunds.
During the course of the investigation, an undercover IRS-CI agent posing as an inmate in a New Jersey prison submitted a completed Release Refunds form and sent it to James and Hawkins. They then sent the “inmate” blank income tax forms and other IRS documents and instructions to sign the documents. James and Hawkins did not request any financial information from the undercover agent before preparing three fraudulent tax returns – including false income information that James and Hawkins provided – to be filed on behalf of the agent for tax years 2010 through 2012. The fraudulent returns resulted in several thousand dollars in refunds and a $1,485 fee for the defendants.
In total, James and Hawkins caused approximately 2,432 fraudulent tax returns to be filed during the relevant time period, claiming approximately $4,402,288 in improper refunds, of which the United States paid approximately $1,779,910.16.
If convicted, the defendants face a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the amount of the gain or loss from the offense.U.S. Attorney Fishman credited special agents of IRS-CI, under the direction of Special Agent in Charge Shantelle P. Kitchen, with the investigation.
The government is represented by Assistant U.S. Attorneys Nicholas P. Grippo and Jennifer Davenport of the U.S. Attorney’s Office Criminal Division in Trenton and Trial Attorney Tino Lisella of the Justice Department’s Tax Division. Assistant U.S. Attorney Sarah Wolfe represented the government at today’s proceeding.The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
13-411
Defense counsel:Kamal J. James: Bruce Throckmorton Esq., Trenton
Crystal G. Hawkins: Assistant Federal Public Defender Andrea Bergman Esq., Trenton
James, Kamal et al. Complaint
Owner, Executives and Physcians at Closed Sacred Heart Hospital Indicted in Alleged Medicare Referral Kickback ConspiracyRead the Press Release
CHICAGO ― The owner and three other executives of the now-closed Sacred Heart Hospital and four physicians affiliated with the former west side facility were indicted on federal charges alleging that they collectively paid and received hundreds of thousands of dollars in illegal kickbacks in exchange for the referral of hospital patients who were insured by Medicare and Medicaid. Sacred Heart allegedly paid physicians bribes and kickbacks to induce patient referrals and increase the patient census, which, in turn, increased hospital revenue.
Sacred Heart Hospital was a 119-bed acute care facility located at 3240 West Franklin Blvd., in Chicago. The hospital closed and filed for bankruptcy this summer after Medicare payments were suspended in the aftermath of criminal charges that were first filed in April. The indictment charges only conduct involved in the alleged kickback conspiracy while a broader investigation that was outlined in the earlier criminal complaint continues.
The eight defendants were charged in a 17-count indictment that was returned by a federal grand jury late yesterday and announced today by Zachary T. Fardon, United States Attorney for the Northern District of Illinois. Five of the eight defendants were charged and arrested on April 16 this year, while three new defendants were charged in the indictment for the first time. A fifth physician associated with Sacred Heart was indicted separately for illegally prescribing prescription medications. No new arrests occurred in connection with the indictments.
Mr. Fardon announced the charges with Lamont Pugh III, Special Agent-in-Charge of the Chicago Region of the U.S. Department of Health and Human Service Office of Inspector General, and Robert J. Shields, Jr., Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of investigation.
The five defendants charged previously in the conspiracy case are: EDWARD J. NOVAK, 58, of Park Ridge, Sacred Heart’s owner and chief executive officer; ROY M. PAYAWAL, 64, of Burr Ridge, executive vice president and chief financial officer; and Drs. PERCY CONRAD MAY, JR., 75, of Chicago, SUBIR MAITRA, 73, of Chicago, and SHANIN MOSHIRI, also known as “Shawni Moshiri,” 58, of Chicago. All five of these defendants remain free on various bonds after they were arrested in April.
The three new defendants are: Dr. RAJIV KANDALA, 41, of Chicago; ANTHONY J. PUORRO, 57, formerly of Chicago, who was Sacred Heart’s chief operating officer; and NOEMI VELGARA, 64, of Chicago, who was Sacred Heart’s vice president of geriatric services and was responsible for overseeing the Golden L.I.G.H.T. medical clinics, including managing employees responsible for marketing, and recruiting and transporting patients.
All eight defendants will be ordered to appear for arraignment in U.S. District Court.
Four defendants ― Novak, Payawal, Puorro, and Velgara ― were each charged with one count of conspiracy to violate the federal healthcare anti-kickback statute by offering and paying kickbacks and bribes, directly and indirectly, from Sacred Heart to Drs. May, Maitra, Moshiri, Kandala, and other physicians to induce them to refer patients to the hospital for services that would be reimbursed by Medicare and Medicaid. Sacred Heart’s chief operating officer before Puorro, identified as “Administrator A,” is named as an unindicted co-conspirator.
In addition, Novak and Payawal were each charged with eight substantive counts of paying kickbacks for patients, while Drs. May, Maitra, Moshiri, and Kandala were charged with two counts each of accepting kickbacks for patient referrals. The indictment also seeks forfeiture of illegal proceeds from Novak, Payawal, and the four physicians, including the unspecified total amount of Medicare and Medicaid reimbursements made on claims submitted on behalf of hospital patients whose referral involved kickbacks, and the total amount of kickbacks paid to the four physicians.
According to the indictment, Sacred Heart’s owner, executives and administrators conspired between 2004 and April 2013 to pay physicians bribes concealed as consulting, employment and personal services compensation, rent, and instructional stipends in return for referrals of Medicare and Medicaid patients. Although styled as payments for legitimate services, the payments actually contained disguised bribes paid to and for the benefit of Drs. May, Maitra, Moshiri, and Kandala in exchange for patient referrals.
The indictment alleges that Novak, Payawal, Puorro, and Administrator A caused Sacred Heart to pay May hundreds of thousands of dollars in bribes disguised as rent, and Moshiri more than $150,000 in bribes disguised as payments for purportedly teaching podiatric surgery residents. Novak, Payawal, and Puorro allegedly caused Sacred Heart to pay Maitra at least $68,000 in bribes disguised as payments for purportedly teaching medical students at the hospital; and Kandala at least $32,000 in bribes disguised as compensation for consulting and instructional services purportedly provided to the hospital and its staff.
Payawal, Puorro, and Velgara allegedly agreed to have Sacred Heart offer to pay bribes to the hospital’s transportation staff to recruit and refer patients to the hospital, and those three defendants, together with Novak, also caused Sacred Heart to pay individuals employed as “marketers” to recruit patients.
As part of the same investigation, a fifth physician associated with Sacred Heart was indicted separately this month for allegedly illegally prescribing hydrocodone or lorazepam to four different patients without having a valid license and registration to prescribe controlled substances. The defendant, Dr. KENNETH S. NAVE, 51, of Chicago, who also was arrested and charged last April, allegedly illegally used the Drug Enforcement Administration registration number of another physician when he prescribed the prescription narcotics between October and December 2012. Nave pleaded not guilty at his arraignment this week.
Each count in the eight-defendant Novak indictment carries a maximum penalty of five years in prison and a $250,000 fine and restitution is mandatory. Each count in the Nave indictment carries a maximum penalty of four years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant U.S. Attorneys Joel Hammerman, Ryan Hedges and Terra Reynolds.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The case falls under the umbrella of the Medicare Fraud Strike Force, which expanded operations to Chicago in February 2011, and is part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Justice Department and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Dozens of defendants have been charged in health care fraud cases since the strike force began operating in Chicago.
To report health care fraud to learn more about the Health Care Fraud Prevention & Enforcement Action Team (HEAT), go to: stopmedicarefraud.gov.
Indictment
Owner of Allied Components LLC Admits Transmitting Military Blueprints to India Without A LicenseRead the Press Release
Also Provided Faulty Aircraft Parts to Department of Defense
Grounded 47 F-15 FightersTRENTON, N.J. – The owner and general manager of Allied Components LLC, a Sparta, N.J., company that supplies defense hardware items to the U.S. Department of Defense (DoD), today admitted that he e-mailed to India sensitive military technical data and provided faulty aircraft parts to the DoD, U.S. Attorney Paul J. Fishman announced.
Robert Luba, 47, of Sparta, pleaded guilty today before U.S. District Judge Joel A. Pisano to an information charging him with one count of making a false claim upon the DoD by providing non-conforming “wing-pins,” manufactured in India, for the F-15 fighter aircraft, when he had contracted to provide a U.S.-made product. He also pleaded guilty to one count of violating the Arms Export Control Act for transmitting information about a component of a nuclear-powered submarine to India without the approval of the U.S. Department of State.
“The conduct admitted by Luba shows a callous disregard for the safety of our armed forces,” U.S. Attorney Fishman said. “By recklessly providing sub-standard parts for sophisticated weapons systems and sharing sensitive information with a foreign state, Luba not only jeopardized the lives of men and women on the front lines of our national defense, he put all Americans at risk, all in the name of making a buck.”“The Defense Criminal Investigative Service is committed to protecting the integrity of the Defense acquisition process from personal and corporate avarice,” Craig Rupert, Special Agent in Charge, DCIS Northeast Field Office, said. “Ensuring U.S. taxpayers’ dollars and preventing contract fraud is in our nations’ interest and remains a priority.”
“HSI takes the illegal export of defense items very seriously, as they are crucial to the protection of our national security,” Andrew McLees, special agent in charge of HSI Newark, said. “We will continue to work with DCIS and other federal partners to ensure the safety of our U.S. military and homeland.”
According to documents filed in the case and statements made in Court: Luba was the owner and general manager of Allied Components, which had contracts to supply the DoD with defense hardware items and spare parts. In July 2011, Luba signed a Military Critical Technical Data Agreement certifying that he acknowledged his responsibilities under applicable U.S. export control laws.
In October 2011, Luba began a business relationship with a company, One Source USA LLC. Luba used One Source USA as a source of defense hardware items and spare parts, which Allied Components would in turn provide to the DoD. Luba’s principle contact at One Source USA was Hannah Robert. Luba learned that Robert and One Source USA manufactured their defense hardware items and spare parts at a production facility in India. Luba admitted that he provided these foreign-made defense items to the DoD under contracts in which he had promised to supply American-made products.
On Feb. 7, 2012, Luba submitted a bid for a contract with the DoD to supply American-made wing pins for use in the F-15 combat aircraft and was awarded the contract. On April 2, 2012, Luba received an international Federal Express delivery of the wing pins from India at his Sparta residence. Despite knowing that the wing pins were made in India, Luba shipped these foreign-made wing-pins to the DoD and accepted payment for them.
On Oct. 10, 2012, the DoD contacted Luba with an urgent e-mail, reporting that the wing pins under this contract, and a second contract with Allied Components, were not of the hardness required under the contract. Luba e-mailed Robert requesting a certification of the materials used in the manufacture of the wing pins, as well as inspection records, to provide to the DoD. One Source USA sent Luba material certifications and inspection records for the wing pins, which listed only a New Jersey address for the company. On Oct. 12, 2012, Luba sent these false and misleading certifications and inspection records to a contracting officer at the DoD.
The U.S. Air Force ultimately grounded 47 F-15 fighter aircraft for inspection and repair as a result of the non-conforming wing pins, resulting in a loss to the government of about $166,000.Luba also admitted that he had a contact in India associated with One Source USA with whom he communicated in connection with Allied Components’ business with the DoD. Luba would e-mail this contact — identified in court papers only as “R.P.” — technical data for spare parts needed by the DoD so that R.P. and Robert could decide how much they would charge, and Luba could decide whether he could bid on the DoD contracts. The technical blueprints that Luba e-mailed to R.P. in India included technical data protected under the export control laws. Luba failed to obtain the necessary license from the U.S. Department of State in connection with these e-mails. These e-mails included a the technical drawing for a hardware item known as the “Torpedo Tube, Open Breech Door, Gagging Collar A,” for installation in a nuclear-powered military submarine.
Robert, the owner of One Source, was indicted on Oct. 10, 2013, by a federal grand jury on separate charges of conspiring to violate and violating the Arms Export Control Act. The indictment alleges that Robert used the password-protected website of a Camden County, N.J., church to transmit the blueprints for hundreds of defense hardware items to her conspirator in India, without the church’s knowledge. Robert’s arraignment on those charges will take place on Oct. 28, 2013, at 12:00 p.m., before Judge Pisano in Trenton. Robert is on home detention pending trial.
Count One of the information to which Luba pleaded guilty is punishable by a maximum penalty of five years in prison and a $250,000 fine. Count Two is punishable by a maximum penalty of 20 years in prison and a $1 million fine. As part of his plea agreement, Luba also agreed to pay back approximately $173,000 to the U.S. Department of Defense, which includes the cost of repair for the grounded F-15s. Sentencing is currently scheduled for Feb. 19, 2014. Luba was released on an unsecured appearance bond.
The Arms Export Control Act prohibits the export of defense articles and defense services without first obtaining a license from the U.S. Department of State and is one of the principal export control laws in the United States.
U.S. Attorney Fishman credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service Northeast Field Office, under the leadership of Special Agent in Charge Craig W. Rupert, and special agents of the Department of Homeland Security, Homeland Security Investigations, Counter Proliferation Investigations, under the supervision of Special Agent in Charge Andrew M. McLees, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney John E. Clabby of the U.S. Attorney’s Office Criminal Division in Trenton.
13-408
Defense counsel: John P. McDonald Esq., Somerville, N.J.Luba Information
Ocean County, N.J., Man Sentenced to 13 Years in Prison for Distributing Infant Child PornographyRead the Press Release
TRENTON, N.J. – An Ocean County, N.J., man was sentenced today to 13 years in prison for using a computer in his home to distribute images of child pornography, including images of infants, U.S. Attorney Paul J. Fishman announced.
Arthur Frazer Jr., 35, of Lanoka Harbor, N.J., previously pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to an information charging him with one count of distribution of child pornography.
According to documents filed in this case and statements made in court:
Frazer admitted distributing images of infant child pornography via email using a home computer in December 2010. He also admitted to possessing more than 600 images of child pornography on his computer and accessories, which were seized from his residence in February 2012. Frazer acknowledged that among the images of child pornography he possessed and distributed were images which depicted minors engaging in sexually explicit conduct with other minors and adults, including material portraying sadistic or masochistic conduct or other depictions of violence. Frazer was previously charged by complaint with distribution of child pornography in February 2012 and has been in custody since his arrest.
In addition to the prison term, Judge Pisano sentenced Frazer to seven years of supervised release and ordered him to pay restitution of $7,000.
U.S. Attorney Fishman credited special agents of the FBI’s Child Exploitation Task Force, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s sentencing.
The government is represented by SpecialAssistant U.S. Attorney Joseph Muoio of the U.S. Attorney’s Office Criminal Division in Trenton.
13-410
Defense Counsel: Andrea Bergman Esq., Assistant Federal Public Defender, Trenton
Oakland Man Pleads Guilty to Robbing and Attempting to Rob Multiple Banks in the East BayRead the Press Release
OAKLAND – Amanuel Moreno pleaded guilty in federal court in Oakland today to five counts of bank robbery and two counts of attempted bank robbery, announced United States Attorney Melinda Haag.
In pleading guilty, Moreno admitted to robbing and attempting to rob the following banks:
DATE
BANK
LOCATION
STOLEN AMOUNT
06/29/2012
Bank of the West
24299 Southland Drive, Hayward
$25
12/06/2012
Bank of the West
4900 Telegraph Avenue, Oakland
$506
12/06/2012
Chase Bank
2270 Otis Drive, Alameda
Attempt
12/13/2012
Wells Fargo Bank
950 South Holland Drive, Hayward
$1,541
12/18/2012
Chase Bank
32101 Union Landing, Union City
Attempt
12/18/2013
U.S. Bank
1585 East 14th Street, San Leandro
$724
01/16/2013
Bank of the West
4900 Telegraph Avenue, Oakland
$3,321
Moreno, 21, of Oakland, was arrested on January 25, 2013, by local law enforcement and remained in local custody pursuant to a probation violation. He has been in federal custody since July 5, 2013. The superseding indictment charging Moreno with five counts of bank robbery and two counts of attempted bank robbery was filed on August 1, 2013. Under the plea agreement, Moreno pleaded guilty to all seven counts.
Moreno’s sentencing hearing is scheduled for February 6, 2014, before The Honorable Yvonne Gonzalez Rogers, U.S. District Judge, in Oakland. The maximum statutory penalty for each count of bank robbery and attempted bank robbery, in violation of 18 U.S.C. § 2113(a), is 20 years in prison. However, any sentence following this conviction will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Brian C. Lewis is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Janice Pagsanjan. The prosecution is the result of an investigation by the Federal Bureau of Investigation, the Oakland Police Department, the Hayward Police Department, the Alameda Police Department, the Union City Police Department, and the San Leandro Police Department.
(Moreno superseding indictment )
New London Heroin Dealer Sentenced to 70 Months in Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ORLANDO SANTIAGO, 38, of New London, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 70 months of imprisonment, followed by four years of supervised release, for distributing heroin. He was also ordered to pay a $1,000 fine.
In early 2012, Homeland Security Investigations (“HSI”), the U.S. Secret Service and the New London Police Department initiated an investigation to combat the large-scale trafficking of heroin and cocaine from the Dominican Republic and Puerto Rico into and around southeastern Connecticut.
According to court documents and statements made in court, on multiple occasions between October 2102 and February 2013, SANTIAGO was intercepted over a court-authorized wiretap ordering heroin from his drug supplier. Investigators also observed SANTIAGO after he traveled to a residence on Hawthorne Drive in New London to complete a number of these transactions.
SANTIAGO was arrested on April 3, 2013. On July 18, he pleaded guilty to one count of conspiracy to possess with the intent to distribute 100 grams or more of heroin.
More than 100 individuals have been charged with federal and state offenses as a result of this investigation.
This matter is being investigated by Homeland Security Investigations; U.S. Secret Service; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection, Office of Air and Marine; Connecticut State Police; New London Police Department, Norwich Police Department, Waterford Police Department, Groton Town Police Department, East Lyme Police Department and Putnam Police Department. The United States Marshals Service; ICE Enforcement and Removal Operations; Drug Enforcement Administration; HSI Assistant Attaché, Santo Domingo, Dominican Republic; HSI Arecibo, Puerto Rico Resident Office; Internal Revenue Service – Criminal Investigation; Connecticut Department of Correction, Parole and Community Services; and the Groton City, Willimantic, New Haven and Bristol Police Departments have provided valuable assistance to the investigation.
The federal case is being prosecuted by Assistant United States Attorneys Alina P. Reynolds, Sarah P. Karwan and Henry K. Kopel. The state cases are being prosecuted by the State’s Attorney for the New London Judicial District and Senior Assistant State’s Attorneys Paul Narducci and Stephen Carney.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]New Jersey Man Used Counterfeit Amex Card for Retail Shopping SpreeRead the Press Release
PITTSBURGH - A resident of Oaklyn, New Jersey, has pleaded guilty in federal court to a charge of access device fraud, United States Attorney David J. Hickton announced today.
Raymond Hasaan Matthews, 37, pleaded guilty to one count before United States District Judge Terrence F. McVerry.
In connection with the guilty plea, it was represented to the court that Matthews used a counterfeit American Express credit card in November 2011 at Casa D'Oro Jewelers to purchase two watches totaling approximately $15,605.00, as well as at other stores such as Dicks Sporting Goods and Home Depot where he purchased additional merchandise.
Judge McVerry scheduled the sentencing for January 24, 2014, at 1:30 p.m. The law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation leading to the indictment in this case.
Naturalized U.S. Citizen Charged with Immigration FraudFor Failing to Disclose Terrorism ConvictionRead the Press Release
A naturalized United States citizen, who was convicted in Israel for participating in a terrorist bombing, was charged with immigration fraud, U.S. Attorney Barbara L. McQuade announced today.
Joining McQuade in the announcement was William Hayes, Acting Special Agent in Charge of Immigration and Customs Enforcement, Homeland Security Investigations.
Special agents arrested Rasmieh Yousef Odeh, 66, at a Chicago-area residence after the unsealing of an indictment filed in federal court in Detroit. The indictment charges procurement of citizenship unlawfully. The indictment alleges that Odeh was convicted in Israel for her role in the 1969 bombings of a supermarket and the British Consulate in Jerusalem, which were carried out on behalf of the Popular Front for the Liberation of Palestine ("PFLP"), a designated terrorist organization.
According to the indictment, Odeh and others placed multiple bombs at the British Consulate and in a supermarket. One of the bombs placed at the supermarket detonated, killing two and injuring others. A bomb placed at the Consulate caused structural damage to the facility. Odeh was sentenced by Israeli military authorities to life imprisonment, but was released after ten years as part of a prisoner exchange, and she then returned to the West Bank.
The indictment alleges that in 1995, she immigrated to the United States, and naturalized as a citizen in 2004. In her immigration documents filed in the United States, the indictment alleges, Odeh omitted her arrest, conviction and imprisonment overseas, which were material facts for the United States government in determining whether to grant her citizenship.
“The United States will never be a safe haven for individuals seeking to distance themselves from their pasts,” said William Hayes, acting special agent in charge for HSI Detroit. “When individuals lie on immigration documents, the system is severely undermined and the security of our nation is put at risk.”
"An individual convicted of a terrorist bombing would not be admitted to the United States if that information was known at the time of arrival," McQuade said. "Upon discovery that someone convicted of a terrorist attack is in the United States illegally, we will seek to use our criminal justice system to remove that individual."
If convicted of the charge, Odeh will be stripped of her United States citizenship. She also faces a maximum sentence of 10 years for naturalization fraud.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in court.
This case was investigated by special agents of Immigration and Customs Enforcement, Homeland Security Investigations with the assistance of the Federal Bureau of Investigation.
Indictment Document- pdf
More Than 30 People Charged with Heroin Trafficking, Many Affiliated with Lakeshore Boyz GangRead the Press Release
Criminal charges were filed against 32 people for their roles in a ring that sold heroin on the Northeast Side of Cleveland and in Euclid, law enforcement officials announced today.
The indictments and arrests were announced by Cuyahoga County Prosecutor Timothy McGinty, United States Attorney Steven M. Dettelbach, Cleveland Mayor Frank G. Jackson, Euclid Mayor Bill Cervenik, FBI Assistant Special Agent in Charge Todd Wickerham and Cleveland Police Chief Michael McGrath.
The following people are indicted in federal court: Derek A. Warner, 20, of Cleveland; Willie James Lavel Dunning, 29, of Cleveland and Nassor M. Williams, 28, of East Cleveland. All three men are charged with multiple counts of distribution of heroin. Warner and Dunning are also charged with being felons in possession of firearms.
The following people are indicted in Cuyahoga County Common Pleas Court: Timothy B. Bennett, 23, of Euclid; Frederick Brown, 30, of Euclid; Calvin Burks, 25, of Cleveland; Kevin Carswell, 26, of Cleveland; George D. Chambliss, 22, of Euclid; William George, Jr., 25, of Euclid; Cassius D. Foster, 28, of Cleveland; Monte Glenn, 29, of Cleveland; Curtis Harris IV, 21, of Euclid; Derek Dion Jackson, 19, of Euclid; Edward M. Jewell, Jr., 22, of Cleveland; Chas D. Johnson, 25, of Euclid; Davaunte M. Livest, 20, of Cleveland; Gino D. Martin, 25, of Cleveland; Brandon D. McBee, 23, of Cleveland; Sir Kimberly McGraw, 36, of Cleveland; Ramel K. McHaney, 28, of Cleveland; Montel Spencer, 28, of Cleveland; Luke O. Stewart, 20, of Cleveland; Mose D. Stewart, 25, of Warren; Maurice Thornton, 22, of Euclid; Louis R. Tinker, 30, of Cleveland; Michael D. Walker, 27, of Cleveland; Antonio Welch, 31, of Cleveland; Byron R. White, 31, of Cleveland; Ronald A. White, Jr., 24, of Shaker Heights; Maurice A. Wilson, 25, of Cleveland; Perez D. Worley, 22, of Cleveland and Julius L. Wright, 29, of East Cleveland.
Some of those indicted and still at large are affiliated with the Lakeshore Boyz street gang. Anyone with information about their whereabouts is encouraged to call the FBI at 216.522.1400.
According to law enforcement officials, the 29 defendants who were indicted on state charges belonged to a loosely aligned group of retail-level heroin and cocaine dealers who operated mostly on Cleveland’s far Northeast Side and in the city of Euclid.
The sales targeted in the state’s indictments took place between February and August of this year. Many of the sales took place within 1,000 feet of a school, an additional violation that elevates each offense one felony level and will add to the severity of any sentences.
In addition to the trafficking, defendant Brandon McBee, aka “Slim,” was indicted for felonious assault. On August 13, during an undercover heroin buy in Cleveland that was to culminate with McBee’s arrest, he attempted to flee and rammed his car into a police vehicle. McBee’s vehicle was badly damaged and he required EMS treatment.
“These are the retailers of death and destruction to neighborhoods and families,” McGinty said. “Everyone will be better off with them in prison.”
“The arrests of the 32 individuals is testament to our commitment to the residents of our communities to get drug dealers off of our streets. Along with our law enforcement partners and the community we will continue to do our best to stop drug traffickers from selling their poison in our neighborhoods,” McGrath said.
“The heroin sales that have taken place throughout our communities will not be tolerated,” Cervenik said. “We have heard the calls from our residents who have asked us to get rid of the drug dealers. Today, I'm happy to say that they won't be on our streets; instead, they'll be spending time in our jails.”
“These arrests are a fine example of how the FBI and our law enforcement partners will aggressively pursue and bring to justice those individuals who place our community at risk,” Wickerham said.
“This case is a demonstration of law enforcement working together to improve neighborhoods in Northeast Ohio,” Dettelbach said.
The cases are the result of a yearlong investigation by the Northern Ohio Law Enforcement Task Force, which is jointly led by the FBI and Cleveland Division of Police and includes investigators from the FBI, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, Immigration and Customs Enforcement, Cleveland Division of Police, Cleveland Heights Police Department, Cuyahoga County Sheriff’s Office, Euclid Police Department, Regional Transit Authority Police Department, Strongsville Police Department, Westlake Police Department and Shaker Heights Police Department.
The federal cases are being prosecuted by Assistant United States Attorneys Adam Hollinsgworth and Edward Feran, while the state cases are being prosecuted by Assistant Cuyahoga County Prosecutor Deb Naiman.
An indictment is only a charge and not evidence of guilt. A defendant is entitled to a fair trial at which time it will be the government’s burden to prove guilt beyond a reasonable doubt.
McAllen Area Ambulance Company Owner and Former Biller Indicted on Multiple Health Care CrimesRead the Press Release
McALLEN, Texas ‐ Frank Gonzalez, 30, and Graciela Escamilla, 51, both of Mission, have been charged in a federal indictment for their alleged roles in a scheme to defraud Medicare and Texas Medicaid through fraudulent billings, announced United States Attorney Kenneth Magidson and Texas Attorney General Greg Abbott.
The indictment, returned Tuesday, Oct. 15, 2013, was unsealed following their arrests on Friday, Oct. 18, at which time they made their initial appearance in federal court. Today, both appeared for an arraignment and detention hearing and were permitted release upon posting a $50,000 bond. Trial is set for Dec. 3, 2013.
Gonzalez, the owner of River Valley Transport (dba Med-Alert EMS), and Escamilla, the owner of RioPlex Billing Solution, are both charged with one count of conspiracy to commit health care fraud, seven counts of health care fraud and one count of aggravated identity theft. Gonzalez is also charged with one count of mail fraud.
The indictment alleges that from June 2007 to February 2011, Gonzalez engaged in and directed a scheme to submit false and fraudulent claims to Medicare and Texas Medicaid for ambulance transportation services in the McAllen area that were not provided. Escamilla, acting as a biller for Gonzalez and Med-Alert EMS, allegedly participated in the scheme to defraud and conspired with and aided Gonzalez in the submission of false and fraudulent billings and theft of the identity of a beneficiary.
According to allegations in the indictment, from June 2007 to February 2011, Gonzalez and Escamilla sent or caused others to send approximately 1,524 false and fraudulent claims totaling approximately $638,090 to Medicare and Texas Medicaid for ambulance transportation services of dialysis patients allegedly provided to Medicare and Texas Medicaid beneficiaries. The billings were allegedly false and fraudulent because none of the patients were transported by ambulance as claimed. The indictment further alleges that Medicare and Texas Medicaid paid out more than $335,000 on the false and fraudulent claims.
The indictment also alleges that to conceal their fraud, phony ambulance transportation records were created, signatures of individuals were forged on documents and Gonzalez and Escamilla illegally used the identity of a patient on their unlawful billings.
Conspiracy to commit health care fraud and each of the seven counts of health care fraud carry a maximum punishment of 10 years in federal prison, while mail fraud carries a possible 20-year sentence. Those charges also carry as possible punishment a $250,000 fine. If convicted of aggravated identity theft, both defendants also face a mandatory two‐year additional prison term which must be served consecutive to any other prison sentence imposed.
The investigation leading to the charges was conducted by the U.S. Department of Health and Human Services‐Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit. Special Assistant United States Attorneys Michael Day and Rex Beasley are prosecuting the case.
A defendant is presumed innocent unless convicted through due process of law.Manhattan U.S. Attorney Announces Charges Against Owners of Three Pharmacies, Pharmacists, and Others for Illegal Distribution of Millions of Dollars Worth of Oxycodone and Other PainkillersRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Carl J. Kotowski, the Special Agent-in-Charge of the New Jersey Division of the U.S. Drug Enforcement Administration (“DEA”), today announced charges against nine individuals – PAUL WISEBERG, ROBERT KALABA, GERALD WISEBERG, STEPHANIE TOMASINI, LANA WISEBERG, EMMANUEL ANTONIO, and three pharmacists, DANIEL PODELL, HOWARD HIRSH, and LAWRENCE ZASLOW – for their alleged participation in a multi million-dollar oxycodone distribution ring. The alleged conspiracy involved the distribution of oxycodone and other controlled substances from three pharmacies in New York and New Jersey to customers in Florida who had no legitimate medical need for the drugs.
All the defendants were arrested this morning. KALABA, PODELL, HIRSH, and ZASLOW will be presented in Manhattan federal court later today. PAUL WISEBERG, GERALD WISEBERG, LANA WISEBERG, TOMASINI, and ANTONIO will appear in the Southern District of Florida later today. In addition to the arrests, multiple search warrants were executed and bank accounts restrained in connection with today’s charges.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, these nine defendants, including three licensed pharmacists, created and operated a ring for the illegitimate distribution of prescription painkillers on the East Coast. Prescription drug abuse is our nation’s fastest-growing drug epidemic, and it is especially egregious when, as alleged in this Indictment, health care professionals perpetuate this danger to society.”
DEA Special Agent-in-Charge Carl J. Kotowski said: “Today, DEA and its law enforcement partners delivered another blow to alleged rogue pharmacists who choose to sacrifice their ethics for the almighty dollar. They will now have to deal with the consequences of their alleged decisions.”
According to the Indictment unsealed today in Manhattan federal court:
From at least November 2011 up to and including October 2013, PAUL WISEBERG, LANA WISEBERG, and KALABA, none of whom is a medical professional, purchased and operated pharmacies in New York and New Jersey (the “Pharmacies”), through which they ordered bulk quantities of highly addictive painkillers such as oxycodone, hydromorphone, and morphine sulfate. PAUL WISEBERG and KALABA then sold and distributed those pain killers via a mail order program at significantly marked-up prices to individuals, mostly in Florida, who had no legitimate medical need for the painkillers.
On average, the Pharmacies would charge from approximately $6 to $9 per pill of oxycodone. A 28-day prescription for oxycodone, which could contain approximately 158 pills, could cost a patient between $948 and $1,400. The same prescription at a retail pharmacy would typically cost less than $200.
PAUL WISEBERG, LANA WISEBERG, and KALABA are not registered with the DEA, and as such, could not themselves obtain oxycodone and other controlled substances from distributors. They relied on ANTONIO and PODELL to obtain hundreds of thousands of oxycodone pills and other controlled substances from distributors. PODELL, a licensed pharmacist, signed the necessary forms, and ANTONIO interacted with the distributors to arrange for the shipments of bulk quantities of painkillers to the Pharmacies.
GERALD WISEBERG and TOMASINI recruited pain clinics in Florida that had patients who were willing to pay substantially marked-up prices for the painkillers, and that would thereafter have the prescriptions sent directly to the Pharmacies. At one of the Florida pain clinics, patients were told to mail the prescriptions enclosing money orders and that no insurance or checks would be accepted. They were further instructed not to call or visit the Pharmacies.
PODELL, HIRSH, and ZASLOW, all licensed pharmacists, filled prescriptions for hundreds of thousands of highly addictive painkillers, knowing that the prescriptions were not issued for a legitimate medical purpose. The drugs were then mailed to the customers in Florida. In several instances, prescription drugs were mailed to addresses different from those set forth in the prescriptions. In addition, prescriptions for multiple people were also sometimes sent to the same address.
The Indictment also alleges that PAUL WISEBERG, KALABA, GERALD WISEBERG, TOMASINI, and ANTONIO conspired to launder the proceeds of the narcotics conspiracy by both concealing the nature and source of the proceeds, and promoting the distribution of the narcotics.
Mr. Bharara praised the investigative work of the DEA New Jersey Division’s Tactical Diversion Squad, which consists of DEA Agents, Diversion Investigators, and Task Force Officers from the Elizabeth Police Department, Essex County Sheriff’s Office, Toms River Police Department, Clinton Township Police Department, Marlboro Township Police Department, and West Orange Police Department, and the DEA New Jersey Division Diversion Group I. Mr. Bharara also thanked the Internal Revenue Service-Criminal Investigation, participating in the investigation as a member of the El Dorado Task Force, the DEA West Palm Beach Tactical Diversion Squad, the DEA Baltimore Tactical Diversion Squad, and the New Jersey Division of Consumer Affairs, which is part of the New Jersey Office of the Attorney General.
The prosecution is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Carolina A. Fornos and Daniel Tehrani are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Paul Wiseberg et al. Indictment
Luzerne County Man Pleads Guilty to Receiving and Distributing Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 38-year-old Luzerne County resident pleaded guilty today to receiving and distributing child pornography before U.S. District Court Judge Malachy E. Mannion.
According to United States Attorney Peter J. Smith, the defendant, Michael Shaw, of Luzerne, Pennsylvania, admitted to using a computer to download and trade images of child pornography during 2012 through June 5, 2013.
The charge against Shaw resulted from an investigation by special agents and task force officers of the Federal Bureau of Investigation, investigators from the Pennsylvania State Police, detectives from the Luzerne County District Attorney’s Office, and local police.
Shaw faces a mandatory minimum sentence of five years in prison and a possible maximum sentence of 20 years in prison, and a fine of $250,000. Judge Mannion ordered that Shaw remain in custody pending his sentencing.
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 internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.