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17 October 2013
Convicted Felon Living in Fort Worth Is Sentenced to 78 Months in Federal Prison on Federal Firearm ConvictionRead the Press Release
AMARILLO, Texas — A Fort Worth, Texas, resident, Bounthieng Sommay, 39, was sentenced on Tuesday, October 15, 2013, by U.S. District Judge Mary Lou Robinson, to 78 months in federal prison following his guilty plea in August 2013 to one count of being a convicted felon in possession of a firearm, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Sommay, a Laotian immigrant in the U.S. illegally, has been in federal custody since May 15, 2013, when he was arrested in the Dallas/Fort Worth area on various charges outlined in a federal indictment.
According to the factual resume filed in the case, on March 5, 2013, FBI special agents executed a search warrant at Sommay’s residence, as well as at his relatives’ residence, both located on Cane River Road in Fort Worth. At Sommay’s residence, agents found a .45 caliber semi-automatic handgun and ammunition. At his relatives’ residence, agents found two firearms, one having an obliterated serial number. Sommay admitted he owned all of the firearms.
Sommay is a convicted felon, having been convicted in South Dakota in 2008 for possession with the intent to distribute controlled substances.
At the sentencing hearing, Judge Robinson also ordered that Sommay forfeit the firearms to the government.
The case was investigated by the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Potter County Attorney’s Office. Assistant U.S. Attorney Vicki Lamberson is in charge of the prosecution and Assistant U.S. Attorney John de la Garza is handling the forfeiture.
Concord Resident Pleads Guilty to Multiple Fraud ChargesRead the Press Release
CONCORD, N.H. – Betty Dugan, 54, of Concord, New Hampshire has pled guilty in United States District Court for the District of New Hampshire to charges that she knowingly used false information to obtain benefits from government programs that are solely intended to provide financial assistance to impoverished individuals and families, announced United States Attorney John P. Kacavas.
From January 2003 to April 2012, Dugan received benefits totaling more than $250,000 from the Social Security Administration’s Supplemental Income program, the United States Department of Housing and Urban Development’s Section 8 Housing program, the United States Department of Agriculture’s Food Stamp program, and the United States Department of Health and Human Services’ Financial Assistance to Needy Families and Aid to Permanently Disabled Persons programs.
Dugan admitted that she obtained the benefits by falsely reporting to the affected government agencies that her husband was not a member of her household and that he did not contribute any income to the household when, in fact, her husband was a member of the household and his annual salary ranged from $69,500 to $89,000.
Dugan is facing a up to 10 years in prison and a fine of up to $250,000. She is scheduled to be sentenced on January 21, 2014.
The case was investigated by the Social Security Administration, Office of Inspector General; the United States Department of Housing and Urban Development, Office of Inspector General; the United States Department of Agriculture, Office of Inspector General; the New Hampshire Housing and Finance Authority and; the New Hampshire Department of Health and Human Services. It is being prosecuted by Assistant United States Attorney Robert Kinsella.
Computer Technology Firm CEO Pleads Guilty to Bank Fraud, Money LaunderingRead the Press Release
PROVIDENCE, R.I. – Sojin Lim, 60, of East Greenwich, R.I., Chief Executive Officer and Vice President of General Technologies Corporation, d/b/a CompUtopia, pled guilty in U.S. District Court in Providence on October 15, 2103, to one count each of bank fraud and money laundering, having defrauded the Rockland Trust Company of more than $5 million dollars, announced United States Attorney Peter F. Neronha; John G. Collins, Acting Special Agent in Charge of the Boston office of the Internal Revenue Service Criminal Investigation; Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI; and Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Lim admitted that she devised a scheme to defraud Rockland Trust Company in order to satisfy a demand for repayment of a $5 million dollar line of credit with Citizens Bank. Lim admitted to the court that she falsified bank documents and overstated company revenues in order to secure funding from Rockland Trust to finance repayment of the line of credit.
According to information presented to the court, in the spring of 2011, Lim and CompUtopia were informed that their line of credit would no longer be carried by Citizens Bank and that CompUtopia was required to seek funding elsewhere. Lim admitted to the court that she devised a scheme to obtain the funding from Rockland Trust Company by providing false, fraudulent and fictitious information and documentation. Lim falsely stated CompUtopia’s accounts receivables as $7,066,268.04, when in fact CompUtopia’s accounts receivables were substantially less. In June 2011, based on the information and documents provided to Rockland Trust Company, the bank deposited $4,878,378.85 in an account which benefited CompUtopia. In April 2012, the Rockland Trust Company loan was increased to $5,350,000.
According to information presented to the court, in late June 2011, Lim paid Citizens Bank $5,342,997.72 from funds provided by Rockland Trust and from a $464,610.37 loan taken against personal assets. CompUtopia filed for receivership in June 2012.
At sentencing on January 14, 2014, Lim faces statutory penalties of up to 30 years in federal prison; a fine of $250,000; and 5 years supervised release for bank fraud; and up to 10 years in federal prison; a fine of $250,000; and 3 years supervised release for money laundering.
The case is being prosecuted by Assistant U.S. Attorneys John P. McAdams and Sandra R. Hebert.
The matter was investigated by Internal Revenue Service Criminal Investigation, the FBI and Rhode Island State Police.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. The President established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Columbia Sex Offender Pleads Guilty to Failure to RegisterRead the Press Release
On September 16, 2013, Devereaux L. Davis, a thirty-six year old Columbia, Illinois, man pled guilty in federal district court, in East St. Louis, for failure to register as a sex offender, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Davis is scheduled for sentencing on January 22, 2014, at which time he faces a prison term of up to ten (10) years, a fine up to $250,000, or both, a term of supervised release of five (5) years after his prison term, and a mandatory special assessment of $100.
The violation occurred in 2009, when Davis failed to register within three days of his move from Illinois to Missouri, as required under both Illinois law and the Sex Offender Registration and Notification Act. Davis had been previously convicted of Aggravated Criminal Sexual Abuse on September 15, 2005, in Monroe County, Illinois. He acknowledged that he understood the conditions of maintaining his sex offender registration requirements by signing an Illinois Sex Offender Registration Act Notification Form on August 14, 2008.
Davis first registered as a sex offender in the State of Missouri on June 25, 2009, only after his arrest on July 17, 2009, in Granite City, Illinois, for failure to register. Davis fled the bi-state area between 2010 and March, 2013. He returned to Missouri and was arrested in St. Louis in April, 2013, on a felony warrant out of Granite City, Illinois. In an interview conducted by the United States Marshal Service for non-compliance, Davis admitted to having lived in Missouri for approximately one year, after signing the Illinois registration notification form and moving out of the state when the violation occurred. Davis had not registered as a sex offender in Missouri, nor had he updated his sex offender registration form in Illinois.
Due to his failure to register in Missouri and his failure to update his registration in Illinois, the defendant was charged federally with Failure to Register as a Sex Offender pursuant to the Sex Offender Registration and Notification Act.
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 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.”
The case was investigated by the United States Marshal Service and is assigned to Assistant United States Attorney Daniel T. Kapsak for prosecution.
Columbia Business Operators Indicted in $2 Million Conspiracy to Distribute Synthetic DrugsRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the owner and operators of Bocomo Bay, a Columbia, Mo., retail business, have been indicted by a federal grand jury for their roles in a conspiracy to distribute more than $2 million of synthetic marijuana, commonly referred to as K2.
Kevin E. Bay, 44, and John Hawkins, 61, both residents of Columbia, were charged in a 21-count indictment returned under seal by a federal grand jury on Oct. 2, 2013. Bay is the owner of Bocomo Bay; Bay and Hawkins operate the business together. The indictment was unsealed and made public today following the initial court appearances of Bay and Hawkins, who self-surrendered to federal authorities this morning and were released on bond.
The federal indictment alleges that Bay and Hawkins participated in a conspiracy to distribute controlled substance analogues, also known as synthetic marijuana or K2, from March 1, 2011, to Oct. 2, 2013. K2 is a mixture of plant material that has been sprayed or mixed with a synthetic chemical compound similar to THC (tetrahydrocannabinol), the psychoactive ingredient in marijuana. K2 products are often labeled as “incense,” but in reality are intended for human consumption as a drug.
The indictment also alleges that Bay and Hawkins participated in a conspiracy to distribute drug paraphernalia from Nov. 1, 2008, to Oct. 2, 2013. Bay is also charged with participating in a money-laundering conspiracy from March 1, 2011, to Oct. 2, 2013. The indictment alleges that Bay conducted financial transactions that involved the proceeds of the illegal drug-trafficking conspiracy. Bay is also charged with seven counts of money laundering.
In addition to the conspiracies, Bay and Hawkins are charged together in four counts of distributing a controlled substance analogue, one count of possessing a controlled substance analogue with the intent to distribute and five counts of distributing drug paraphernalia.
Hawkins is also charged with one count of being a felon in possession of firearms. The indictment alleges that Hawkins, who has previously been convicted of a felony, was in possession of a Taurus 9mm pistol and a Taurus .22-caliber revolver on Aug. 29, 2011.
The federal indictment also contains forfeiture allegations, which would require Bay and Hawkins to forfeit to the government $2,068,686 (obtained from the drug-trafficking and drug paraphernalia conspiracies) as well as items that were seized by law enforcement officers from Bocomo Bay and from the residence shared by Bay and Hawkins: $638,202, four one-ounce platinum bars, five one-ounce palladium bars, five one-ounce gold bars, a ¼-ounce gold bar, a 10-ounce gold bar, 33 silver bars of various weights (up to 100 ounces), a counterfeit Rolex watch, 10 pieces of miscellaneous jewelry, 2,039 miscellaneous gold and silver coins, 76 firearms (including an Uzi submachine gun, handguns, rifles and shotguns) and miscellaneous ammunition.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Catherine Connelly. It was investigated by the Drug Enforcement Administration.
Synthetic Designer Drugs
Over the past several years, smokable herbal blends marketed as being “legal” and providing a marijuana-like high have become increasingly popular, particularly among teens and young adults, because they are easily available and, in many cases, they are more potent and dangerous than marijuana. These products consist of plant material that has been coated with dangerous psychoactive compounds that mimic THC, the active ingredient in marijuana. These synthetic cannabinoids are sold at a variety of retail outlets, in head shops and over the Internet. Brands such as K2, Spice, Blaze, and Red X Dawn are labeled as incense to mask their intended purpose. However, they have not been approved by the Food and Drug Administration (FDA) for human consumption or for medical use, and there is no oversight of the manufacturing process.
While many of the designer drugs being marketed today are not specifically prohibited in the Controlled Substances Act, the Controlled Substance Analogue Enforcement Act allows these drugs to be treated as controlled substances if they are proven to be chemically and/or pharmacologically similar to a Schedule I or Schedule II controlled substance. This analogue provision specifically exists to combat these new and emerging designer drugs.Chester County Woman Charged in Fraud SchemeRead the Press Release
Barbara Stanley, 60, of Nottingham, Pennsylvania was charged by Indictment , filed October 15, 2013, with a scheme to defraud the government regarding worker compensation benefits, announced United States Attorney Zane D. Memeger. Stanley is charged with five counts of wire fraud, two counts of theft of Government funds, one count of false statements, and three counts of false or fraudulent statements regarding workers= compensation benefits. The indictment alleges that between July 2006 and December 2010, Stanley continued to collect workers= compensation payments from the Department Of Labor=s Office of Workers= Compensation Programs even after she had recovered from her alleged work related injury. Defendant=s misrepresentations resulted in the defendant receiving an overpayment of approximately $164,428.20, which she knew she was not entitled to receive.
The indictment further alleges that Stanley received $50,094 in Office of Personnel Management disability retirement benefits that she knew she was not entitled to receive. She wrongfully converted to her own use at least $37,639.64 of those funds, resulting in total losses to the government of approximately $202,067.84
If convicted of all charges, the defendant faces a maximum possible statutory sentence of more than 100 years in prison, a $2.75 million fine, and three years supervised release.
The case was investigated by the United States Postal Service Office of the Inspector General, the Department of Labor Office of the Inspector General, and the Office of Personnel Management Office of the Inspector General. It is being prosecuted by Special Assistant United States Attorney Thomas Moshang III.
Click here to view the indictment
An Indictment 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, 215-861-8525Camden County Man Sentenced to 63 Months in Prison for Illegal Sale of 14 GunsRead the Press Release
CAMDEN, N.J. – A Camden County, N.J., man was sentenced today to 63 months in prison for selling guns without a license and illegally possessing firearms, U.S. Attorney Paul J. Fishman announced.
Eric J. Reed, 45, of Pennsauken, N.J., previously pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging him with one count of dealing firearms without a license and one count of transferring a firearm to a previously convicted felon.
According to documents filed in this case and statements made in court:
Between May 2012 and August 15, 2012, Reed bought 14 firearms – five pistols, seven handguns and two rifles – from Pennsylvania gun shops and gun shows, which he then transferred for resale to his nephew, Ammie Steward, a/k/a “Beav,” a/k/a “B,” 38, of Pennsauken, a previously convicted felon who served a substantial prison term for manslaughter. Steward then resold the firearms.
Reed purchased the firearms in Pennsylvania after fraudulently obtaining a Pennsylvania driver’s license, then sold the weapons to a witness cooperating with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Reed also admitted to using a power tool to obliterate the serial numbers on the 14 guns. A number of the firearms were sold along with ammunition magazines and seven of the guns were sold along with high-capacity magazines. On at least one occasion, Reed purchased and gave to Steward for resale a firearm (a Kel Tec PLR-16 .223-cal. pistol) along with a box of ammunition. On a separate occasion, Reed purchased and then transferred to Steward for resale a rifle with a bayonet. All 14 weapons are now in the custody of law enforcement.
In addition to the prison term, Judge Bumb sentenced Reed to serve three years of supervised release. Steward has pleaded guilty to related charges and awaits sentencing.
U.S. Attorney Fishman credited special agents of the ATF, under the direction of Special Agent in Charge Thomas J. Cannon, with the investigation leading to today’s guilty plea. He also thanked the Pennsauken Police Department, under the direction of Chief John J. Coffey.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office in Camden.13-402
Defense counsel: Ralph Jacobs Esq., Philadelphia
Cahokia Woman Pleads Guilty to Health Care FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on October 16, 2013, Karashia A. Tabbs, 45, of Cahokia, Illinois, pled guilty to a one-count indictment charging that she engaged in a scheme to commit health care fraud. Sentencing has been set for January 23, 2014, in United States District Court in East St. Louis, Illinois. Tabbs will face up to 10 years in prison, a fine of up to $250,000, and up to 3 years of supervised release.
During her plea hearing, Tabbs admitted that she had submitted false and fraudulent bills in relation to her alleged performance of personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home. Tabbs admitted to falsely billing the program between June and November of 2012, when the person for whom she was supposed to be caring for was actually residing in the state of Texas.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General and the Illinois State Police’s Medicaid Fraud Control Bureau. The case is being prosecuted by Assistant United States Attorneys Ranley R. Killian and William E. Coonan.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General or you may call 800.447.8477.
Bucks County Lawyer Indicted on Tax and Identity Theft ChargesRead the Press Release
PHILADELPHIA - Randolph Scott, 70, of Doylestown, PA, an attorney whose practice included estate and probate matters, was charged by Indictment on October 3, 2013, with defrauding a client’s estate of more than $1.7 million. Scott maintained a law office – Randolph Scott Associates – in Warrington, PA. He is charged with one count of mail fraud, two counts of aggravated identity theft, one count of tax evasion, one count of attempting to interfere with administration of internal revenue laws and three counts of failure to file income tax returns.
According to the indictment, between December 2005 and October 2011, while representing the estate of John C. Bready, Scott diverted approximately $1,758,193 of estate funds to his law office accounts. Because the estate was valued at more than $6 million at the time of Bready’s death in 2005, federal law required that a federal estate tax return be filed which would have resulted in approximately $520,351 being paid to the Internal Revenue Service. The indictment alleges that Scott purposefully failed to file the required form in order to maintain sufficient money in the estate to pay its beneficiaries and to avoid detection of the theft.
The indictment further alleges that after the estate’s executor died in 2009, Scott failed to disclose the death so that the investment account manager would continue to send the executor’s checks to Scott’s law firm. Scott would then allegedly forge the executor’s signature and deposit the checks into his law firm’s account. It is further alleged that Scott has the successor executor sign a document renouncing the position of successor executor so that Scott could continue to forge the signature of the deceased executor and divert money belonging to the estate. In addition to the charges, the indictment contains a notice of forfeiture seeking $1,758,193.
If convicted of all charges, Scott faces a mandatory minimum of two years in prison, consecutive to any other term of imprisonment imposed on the mail fraud count, resulting in 31 years maximum incarceration, possible restitution to the IRS in the amount of $520,351, possible restitution to the estate in the amount of $1,758,193, three years of supervised release, a $1.4million fine, and a $500 special assessment.
The case was investigated by the IRS Criminal Investigations and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Judy G. Smith.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Bristol Man Who Admitted to Stealing More Than A Dozen Firearms Sentenced to 10 Years in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – David Welch, 42, of Bristol, who admitted to a federal court judge that he stole more than a dozen firearms from a Rhode Island residence, was sentenced on October 1, 2013, to 120 months in federal prison for being a felon in possession of a firearm, announced United States Attorney Peter F. Neronha.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Welch to serve 3 years of supervised release upon completion of his prison term. In July, Welch pled guilty to being a felon in possession of a firearm, admitting to the court that in December 2012 he broke into a Portsmouth, R.I., home and stole more than a dozen firearms.
At the time of his guilty plea, Welch admitted that five firearms, a revolver and four semi-automatic handguns, seized by law enforcement from his residence during a court authorized search on December 27, 2012, were among the firearms stolen from the Portsmouth home. Welch admitted that he stole the firearms for the purpose of selling some or all of them. Welch admitted that prior to his arrest he had already sold or transferred several of the stolen firearms. Two of those firearms were later recovered by law enforcement.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
The matter was investigated by the Portsmouth, Bristol, Newport and North Kingstown Police Departments and agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Bridgeport, Illinois Mayor Sentenced on Charges of Mail Fraud and Obstruction of JusticeRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that on October 17, 2013, Max R. Schauf, 56, of Bridgeport, Illinois, was sentenced to 18 months in prison, a $5,000 fine and 3 years of supervised release, after pleading guilty to three counts of mail fraud and one count of obstruction of justice in United States District Court in Benton, Illinois. The court also ordered Schauf to pay $54,288.74 in restitution to the City of Bridgeport.
On November 6, 2012, Schauf, the then Mayor of the City of Bridgeport, in Lawrence County, Illinois, was indicted along with Paul R. Kramer, of Vincennes, Indiana. At his plea, Schauf admitted that from July of 2008 until March of 2011, he had engaged in a scheme to defraud the City of Bridgeport, as well as its residents by submitting false and fraudulent invoices, contracts and bills for services and equipment. Schauf also admitted that on November 10, 2011, he had obstructed justice by telling another person to give false and misleading information to the Federal Bureau of Investigation (FBI) regarding the investigation into his (Schauf’s) fraudulent activities.
Schauf’s co-defendant, Paul R. Kramer, pled guilty on March 20, 2013, to two counts of Making False Statements to the FBI and is scheduled to be sentenced in United States District Court on October 31, 2013. He faces up to 5 years of imprisonment, a $250,000 fine, and up to years of supervised release on each count.
The case was investigated by agents of the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Ranley R. Killian and William E. Coonan.
Boston Scientific and Subsidiaries to Pay $30 Million for Guidant’s Sale of Defective Heart Devices for Use in Medicare PatientsRead the Press Release
Boston Scientific Corp. and its subsidiaries, Guidant LLC, Guidant Sales LLC and Cardiac Pacemakers Inc. (Guidant), have agreed to pay $30 million to settle allegations that, between 2002 and 2005, Guidant knowingly sold defective heart devices to health care facilities that in turn implanted the devices into Medicare patients, the Justice Department announced today. Boston Scientific acquired Guidant, a medical device manufacturer, in 2006.
“Medicare patients who depend on cardiac defibrillators should not have to worry about whether their devices will work when they are needed,” said Stuart F. Delery, Assistant Attorney General for the Justice Department’s Civil Division. “This settlement, along with the prior criminal prosecution of Guidant, demonstrates that there will be significant consequences when companies engage in conduct that threatens health and safety and violates the law.”
The Guidant devices at issue are implantable defibrillators, used in patients at risk of cardiac arrest due to an irregular heartbeat. The devices are surgically implanted into patients’ chests, and when the devices detect an irregular heartbeat, they send an electrical pulse to the heart to “shock” it back to its normal rhythm. The government’s complaint alleged that two lines of implantable cardiac devices manufactured and sold by Guidant, known as the Prizm 2 and the Renewal 1 and 2, contained a defect that resulted in “arcing.” Arcing occurs when the device detects the irregular heartbeat and delivers a shock, but instead of the current traveling to the heart, the current “arcs” back to the device itself. This causes the device to short circuit, rendering the device ineffective.
The government alleged that Guidant learned as early as April 2002 that the Prizm was defective, and as early as November 2003 that the Renewal 1 and 2 were similarly defective. Nevertheless, although Guidant took corrective action to fix the defects, the company continued to sell its remaining stock of the old, defective versions of the devices. The government alleged further that, as Guidant learned about the cause of the defect, it took steps to hide the problem from patients, doctors and the Food and Drug Administration (FDA). Instead of disclosing the problem, Guidant issued a misleading communication to doctors regarding the nature of the defect and did not fully disclose the problem with the devices to doctors and the FDA until May 2005, after first being contacted by a New York Times reporter. Subsequently, the company recalled the devices after a front-page article about the defects appeared in The New York Times.
“The United States is fortunate that innovative health care companies regularly develop and market remarkable medical devices that improve patients’ lives,” said John R. Marti, Acting U.S. Attorney for the District of Minnesota. “But in this case, Guidant valued profits more than patient safety by selling defective cardiac defibrillators. This office, along with several other components within the U.S. Department of Justice, will continue to vigorously investigate and take appropriate action against health care companies that place public safety at risk.”
In February 2010, Guidant pleaded guilty to criminal charges of misleading the FDA and failing to submit a labeling change to the FDA relating to the defective devices. In 2011, the government joined a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act by James Allen, who had received one of the defective devices. Under the Act, a private citizen, known as a “relator,” can sue on behalf of the government and share in any recovery. As part of the resolution, Allen will receive $2.25 million.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $16.7 billion through False Claims Act cases, with more than $11.9 billion of that amount recovered in cases involving fraud against federal health care programs.
This matter was handled by the Justice Department’s Civil Division, Commercial Litigation Branch and the U.S. Attorney’s Office for the District of Minnesota, with assistance from the Department of Health and Human Services’ Office of Inspector General and Office of General Counsel and the FDA’s Office of Criminal Investigations and Office of Chief Counsel.
Except for the conduct admitted in connection with the criminal plea, the claims resolved today are allegations only, and there has been no determination of liability. The civil case is United States ex rel. Allen v. Guidant LLC et al., No. 11-CV-22 (D. Minn.).
Associate of Former Moberly Correctional Center Inmate Sentenced on Federal Conspiracy ChargesRead the Press Release
St. Louis, MO –ANTHONY JOHNSON and his two associates referred to themselves as the "Hilton" family. Between July 2009 and March 2011, Johnson engaged in a conspiracy to steal identification information of unsuspecting victims, open new credit accounts using the stolen identities and use the fraudulent credit accounts to deposit money into the accounts of inmates at the Moberly Correctional Center (MCC). According to court documents, once they obtained credit accounts they wire transferred money into the accounts of inmates, which was then sent to Johnson's co-defendants and other people outside of MCC.
Co-defendant Timothy Moore, Memphis, TN, was sentenced October 16 to 37 months in prison for conspiracy to commit identity theft.
Anthony Johnson, was sentenced in May to 60 months in prison and ordered to pay restitution in excess of $80,000. Co-defendant Cedric Walton, Memphis, TN, was sentenced in August to 18 months in prison. All defendants were sentenced by United States District Judge Henry Autrey.
This case was investigated by the Postal Inspection Service, the Federal Bureau of Investigation, the Moberly, Missouri Police Department and the Missouri Department of Corrections. Assistant United States Attorney Reginald Harris handled the case for the U.S. Attorney's Office.
Armed Robber Exiled to 25 Years in PrisonRead the Press Release
Robbed An Armored Car Employee
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Alton May, age 49, of Washington, D.C., today to 25 years in prison, followed by five years of supervised release, for the robbery of an armored car employee. Judge Titus enhanced May’s sentence upon finding that he is a career offender based on previous drug and assault convictions.
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; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; and Chief Cathy L. Lanier of the Metropolitan Police Department.
According to May’s plea agreement, on May 3, 2011, he and a co-defendant, both armed with handguns, robbed an armored car employee at a convenience store in Glenarden, Maryland. The employee was at the convenience store to refill the ATM machine located in the store. The employee gave May and his co-defendant the money bag and one of the robbers also stole the employee’s handgun. The robbers fled on foot to an apartment complex behind the store where they got into May’s car and proceeded to his residence. On the way, they took the money from the bag and threw the bag in a dumpster. Once they arrived at May’s residence they located and destroyed a GPS tracking device which was in the money. May and his co-defendant threw the cash, three handguns and two baseball caps used in the robbery onto the roof of the building, then jumped out of the window. The GPS device allowed law enforcement to track the money from the convenience store to the dumpster and to May’s residence, where they recovered the cash, guns and hats from the roof. One of the guns recovered was the one stolen from the armored car employee. Officers also recovered pieces of the broken GPS tracker in May’s apartment and an individual in the area identified May as one of the people he saw jump out of the window of May’s apartment.
May initially fled to New York, but was arrested in Montgomery County on November 7, 2011, when he fled from officers who were attempting to perform a traffic stop on the car May was driving.
United States Attorney Rod J. Rosenstein commended the FBI, ATF, Prince George’s County Police Department, Montgomery County Police Department and Metropolitan Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Deborah A. Johnson and Leah J. Bressack, who prosecuted the case.
16 October 2013
New Castle Woman Gets Probation with Home Detention for Stealing Sons' Social Security BenefitsRead the Press Release
PITTSBURGH – A Lawrence County woman was sentenced today in federal court to three years probation with five months home detention on her conviction of theft of government property, United States Attorney David J. Hickton announced today.
Senior United States District Court Judge Donetta W. Ambrose imposed sentence upon Toni Ann Badger, 55, of New Castle, Pa.
According to information presented to the court, Badger converted to her own use the Supplemental Security Income benefits of her sons while acting as their representative payee. From July 1, 2005 to April 1, 2009, Badger converted benefits totaling $57,052.00, knowing that she was not entitled to such benefits.
Prior to imposing sentence, Judge Ambrose took into consideration the defendant's lack of criminal history and her acceptance of responsibility.
Assistant United States Attorney Mary McKeen Houghton prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Special Agents of the Social Security Administration, Office of Inspector General, who conducted the investigation that led to the successful prosecution of Badger.
Man Caught in Forged Check Scheme Also Evaded TaxesRead the Press Release
PITTSBURGH – A resident of Allegheny County pleaded guilty in federal court to charges of bank fraud and tax evasion, United States Attorney David J. Hickton announced today.
Kevin R. Gallagher pleaded guilty to two counts before United States District Court Judge Terrence F. McVerry.
In connection with the guilty plea, the court was advised that from November 2010, and continuing until January 2012, Gallagher knowingly executed a scheme to defraud First Niagra Bank. In connection with the scheme to defraud, Gallagher fraudulently obtained corporate checks of his employer, A&S Steel Buildings Corporation, made payable to subcontractors and forged the signatures of the subcontractor payees. It was a part of the scheme that Gallagher deposited the forged checks, which totaled $179,695, into his personal bank account at First Niagra Bank. Gallagher also willfully evaded income tax owed by him for tax year 2011. The total amount of tax loss to the federal government as a result of Gallagher's tax evasion is $53,151.
Judge McVerry scheduled sentencing for Jan. 23, 2014, at 9:30 a.m. The law provides for a maximum total sentence of not more than 35 years in prison, a fine of $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentence, the court released Gallagher on bond.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the United States Internal Revenue Service, Criminal Investigation, conducted the investigation that lead to the prosecution of Gallagher.
Former Financial Aid Advisor Sentenced for Stealing over $62,000 in Student Financial AidRead the Press Release
BOSTON – A former financial aid advisor at a Brockton training school was sentenced today for stealing $84,298 in student financial aid.
Ayana Bean, 39, of Hyde Park, was sentenced to 12 months and a day in prison for theft or bribery concerning programs receiving federal funds.
Sullivan and Cogliano Training Centers (SCTC) is a for-profit career training school that offers certificate programs in information technology and other careers. The office of Federal Student Aid within the U.S. Department of Education administers financial aid to eligible students attending educational institutions around the country. Whenever an educational institution, such as SCTC, disburses federal financial aid funds by crediting a student’s account, and the total amount of all federal financial aid funds credited exceeds the amount of tuition and fees, room and board, and other authorized charges, the institution must pay the resulting credit balance directly to the student, often in the form of what is known as a federal financial aid refund check.In July 2010, Bean was employed by SCTC as a financial aid advisor. As part of her responsibilities, Bean also had access to SCTC students’ federal financial aid refund checks. On Aug. 15, 2012, a SCTC student contacted SCTC about the status of her federal financial aid refund check. SCTC staff determined that Bean had stolen the student’s check, forged the student’s endorsement, and deposited the check into a personal bank account. A subsequent investigation revealed that Bean had mishandled and stolen approximately 100 federal financial aid refund checks between June 2011 and August 2012. ATM surveillance images show Bean depositing some of the checks into her personal bank accounts.
In December 2005, Bean was convicted in Suffolk Superior Court on multiple counts of uttering false and forged records and larceny. In that case, Bean stole just under $240,000 worth of federal financial aid refund checks from two local colleges. Bean was sentenced to two years in prison; she served six months of that sentence followed by three years of probation.
United States Attorney Carmen M. Ortiz; Brian Hickey, Special Agent in Charge of the U.S. Department of Education, Office of Inspector General; and Chief Emanuel Gomes of the Brockton Police Department, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Maxim Grinberg of Ortiz’s Major Crimes Unit.
Elizabeth, Pa., Man Sentenced to A Year in Prison for Making Counterfeit CurrencyRead the Press Release
PITTSBURGH - A resident of Elizabeth, Pa., has been sentenced in federal court to one year and one day on his conviction of conspiracy to make counterfeit United States currency and making counterfeit United States currency, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Justin S. Holliday, 29, of as the sole defendant.
According to information presented to the court, Holliday was charged with conspiracy and the making of counterfeit currency, during the period June 21, 2012, through June 24, 2012.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Secret Service for the investigation leading to the successful prosecution of Holliday.
Charleroi Man Admits Role in Stolen Credit Card SchemeRead the Press Release
PITTSBURGH - A Charleroi man has pleaded guilty in federal court to a charge of conspiracy, United States Attorney David J. Hickton announced today.
Jerome C. Pryor, Jr., 27, of Charleroi, Pa., pleaded guilty to one count before Senior United States District Judge Gustave Diamond.
In connection with the guilty plea, the court was advised that Pryor agreed with others to use stolen credit cards to purchase merchandise or to use at ATMs.
Judge Diamond scheduled the sentencing for Feb. 18, 2014. The law provides for a maximum total sentence of not more than five 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 Western Pennsylvania Financial Crimes Task Force (WPFCTF) conducted the investigation that led to the successful prosecution of Pryor. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
15 October 2013
Somerset County Man Conspired to Distribute CocaineRead the Press Release
JOHNSTOWN, Pa. - A resident of Windber, Pa., pleaded guilty in federal court to a charge of conspiracy to distribute cocaine, United States Attorney David J. Hickton announced today.
Peter Donato, 30, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that from Nov. 2011 to July 18, 2012, Donato conspired to distribute 500 grams or more of cocaine.
Judge Gibson scheduled sentencing for Feb. 13, 2014, at 11 a.m. The law provides for a total sentence of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Pending sentencing, the court continued Donato on bond.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Safe Streets Task Force initiative comprised of the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Pa. Attorney General's Office, the Blair County Drug Task Force, the Cambria County Drug Task Force, the Somerset County Drug Task Force, the Roaring Spring Borough Police Dept. and the Paint Township Police Dept. conducted the investigation that led to the prosecution of Donato.
Six Charged in Heroin Trafficking RingRead the Press Release
JOHNSTOWN, Pa. - Six residents of Cambria and Indiana Counties were indicted by a federal grand jury in Johnstown on Oct. 8, 2013, on charges of violating federal narcotics and firearms laws, United States Attorney David J. Hickton announced today.
The seven-count indictment named as defendants the following individuals:
Thomas K. Lighthill, 44, of Northern Cambria, Pa.; Deborah L. Lute, 34, of Carrolltown, Pa.; Douglas A. Lydic, 29, of Commodore, Pa.; Tiffany N. White, 24, of Indiana, Pa.; William S. Rounsley, 21, of Carrolltown, Pa.; and
Casey Lex, 28, of Northern Cambria, Pa.According to the indictment presented to the court, from April 2012 to March 8, 2013, the defendants conspired to distribute more than 100 grams of heroin, and on separate occasions during that time period Lydic, White, Rounsley and Lex each distributed less than 100 grams of heroin. In addition, on March 8, 2013, Lute and Rounsley possessed less than 100 grams of heroin with the intent to distribute it, and Lute possessed two Hi-Point pistols in furtherance of the drug trafficking.
The law provides for a maximum total sentence for Lighthill of 40 years in prison, a fine of $5,000,000 or both; for Lute of life in prison, a fine of $6,250,000 or both; for Lydic, White and Lex of 60 years in prison, a fine of $6,000,000, or both; and for Rounsley of 80 years in prison, a fine of $7,000,000, 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 John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Lighthill, Lute, Lydic, White, Rounsley and Lex.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Removed Alien Charged with Illegally Returning to United StatesRead the Press Release
PITTSBURGH - An alien found in Pittsburgh has been indicted by a federal grand jury on a charge of illegal re-entry after deportation, United States Attorney David J. Hickton announced today.
The one-count indictment named Jose Mariano Perez-Flores, 33, of Honduras, as the sole defendant.
According to the indictment presented to the court, Jose Mariano Perez-Flores, an alien, was formally removed from the United States by United States Immigration and Customs Enforcement on Aug. 17, 2007. Jose Mariano Perez-Flores was found to be illegally present in Pittsburgh, Pennsylvania, on Sept. 20, 2013.
The law provides for a maximum total sentence of 2 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 offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul E. Hull is prosecuting this case on behalf of the government.
The U.S. Department of Homeland Security, Immigration and Custom Enforcement conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Peptides Distributor Sentenced to Probation, Community ServiceRead the Press Release
PITTSBURGH - A resident of Palatine, Illinois, has been sentenced in federal court to three years probation and 100 hours of community service on his conviction of mail fraud, misbranding of drugs and money laundering, United States Attorney David J. Hickton announced today.
Senior United States District Judge Donetta W. Ambrose imposed the sentence on Adam F. Higdon, 41.
According to information presented to the court, Higdon maintained two websites for the illegal distribution of peptides - chemical compounds which require a prescription for dispensation, but which are illegitimately sought by body-builders for muscle enhancement. Higdon deceived the Internet service provider and the FDA by falsely representing on the websites that he was selling these substances "for research use only . . . not for human consumption." During the period from January 2010 until January 2011, Higdon allegedly paid $131,472.50 to acquire the substances from suppliers in the Peoples Republic of China; and he thereafter sold the peptides for $397,662.00.
Prior to imposing sentence, Judge Ambrose stated that she believed Mr. Higdon was sincere in his remorse and would not endanger the public in the future.
Assistant United States Attorney Leo M. Dillon prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the FDA Office of Criminal Investigations, IRS - Criminal Investigation and the DEA for the investigation leading to the successful prosecution of Higdon.
Mercer County Teen Charged with Federal Drug and Gun OffensesRead the Press Release
PITTSBURGH - A resident of Western Pennsylvania has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, United States Attorney David J. Hickton announced today.
The two-count indictment named Jashaad Coleman, 19, of Farrell, Pa.
According to the indictment, on or about July 31, 2012, Coleman aided and abetted the possession with the intent to distribute 28 grams or more of a mixture and substance containing a detectable amount of cocaine base, in the form commonly known as crack, a Schedule II controlled substance. The indictment further charges that he possessed, brandished and discharged a firearm in furtherance of that drug trafficking crime.
The law provides for a maximum total sentence of not less than 15 years and up to life in prison, a fine of up to $5,250,000, 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 Eric S. Rosen is prosecuting this case on behalf of the government.
The Pennsylvania State Police, the Southwest Mercer County Regional Police, the Mercer County District Attorney's Office, and the Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Massachusetts Resident Sentenced for Using Counterfeit Traveler's ChecksRead the Press Release
CONCORD, N.H. James Jones, 49, of Dorchester, Massachusetts, was sentenced in United States District Court for the District of New Hampshire to uttering and possessing counterfeit securities, announced United States Attorney John P. Kacavas.
On June 25, 2009, Jones attempted to use a counterfeit $100 American Express Traveler’s Check to buy a sandwich at a grocery store in Salem, New Hampshire. The cashier who received the check reported the matter to his supervisor. As the supervisor examined the check, Jones left the store and was arrested in the store’s parking lot by a Salem police officer.
After Jones was transported to the Salem Police Department, he admitted to a police officer and a Special Agent for the United States Secret Service that the check was counterfeit.
Jones was sentenced to time served and two years of supervised release.
The case was investigated by the Salem Police Department and the United States Secret Service and prosecuted by Assistant United States Attorney Robert Kinsella.
Man Pleads Guilty in Washington County Land Fraud CaseRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, pleaded guilty in federal court to one count of mail fraud, United States Attorney David J. Hickton announced today.
Derek A. Candelore, aka Dan Kun and Kevin Kelly, pleaded guilty before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that Candelore was employed by Penn Star Energy, LLC of Butler County (Penn Star) as a landman. Candelore worked at Penn Star with William Ray, who was another landman who previously pleaded guilty to related charges. A landman contacts mineral rights owners on behalf of natural gas production companies to arrange for leases of mineral interests for oil and gas production. Penn Star arranged for mineral rights leases on behalf of Range Resources Corporation. The mineral rights for four separate blocks of land in Washington County consisting of one hundred or more acres were stolen by Candelore using forged signatures, fake companies and forged notary signatures and stamps. These frauds began in February 2010 and ended in June 2012. During the scheme Candelore set up several post office boxes and bank accounts in the names of companies he created. He hired others to file deeds and other documents at the Washington County Recorder of Deeds Offices to make it appear that the true mineral rights owners had transferred their mineral rights to Candelore's fake companies. These deeds had forged signatures of several true owners and forged notary signatures and stamps. Candelore's companies thereafter leased and/or sold the mineral rights to others. Candelore used the names of Dan Kun and Kevin Kelly to shield his involvement in the fraud. The indictment seeks the forfeiture of $1,856,998.27 of proceeds from the scheme. Candelore received the proceeds from each of the four blocks of mineral rights, while Ray received proceeds from two of the four. The victims include Range Resources Corporation, several mineral rights owners, Pecos Bend Royalties, LP, of Midland, Texas, and Buffalo Royalties business entities in Texas. The schemes were discovered when a mineral rights owner discovered that her rights had been sold to Clark Lumber Company, a shell company owned by Candelore.
Judge Schwab scheduled sentencing for Jan. 31, 2014. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the and the criminal history, if any, of the defendant.
Pending sentencing, the court continued Candelore on bond.
Assistant United States Attorney Nelson P. Cohen is prosecuting this case on behalf of the government. The U.S. Postal Inspection Service conducted the investigation that led to the prosecution of Candelore.
Local Man Sentenced to Incarceration for Falsifying Federal Firearms FormsRead the Press Release
PITTSBURGH - A Pittsburgh man has been sentenced in federal court to six months incarceration at a community confinement center, followed by three years of supervised release, on his conviction of violating federal firearms laws, United States Attorney David J. Hickton announced today.
Senior United States District Judge Donetta W. Ambrose imposed the sentence on Charles Douglas Warner, 27.
According to information presented to the court, on or about July 19, 2009, and on or about October 9, 2009, Warner made false statements to a federal firearms licensee in connection with his purchase of two firearms. In addition, on those dates, Warner was a fugitive from justice, had pending felony drug and firearms charges, and was an unlawful user or addicted to controlled substances when he possessed those firearms.
Assistant United States Attorney Troy Rivetti prosecuted this case on behalf of the government. This case is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the City of Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Charles Douglas Warner.
Laurel Man Enters Guilty Plea in Environmental CaseRead the Press Release
Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Patrick Henry Procino, age sixty-six, of Laurel, Delaware, pled guilty today before United States District Court Judge Richard G. Andrews to one count of illegal storage of hazardous waste without a permit, punishable by five years incarceration, a $250,000 fine, and three years supervised release. As the owner/operator of Procino Plating, Inc., Patrick Procino also entered a guilty plea on behalf of that corporation to one count of violating the Clean Water Act, which subjects the corporation to a maximum fine of $500,000 and five years probation.
According to statements made at the plea hearing and documents filed in court, Patrick Procino owned and operated Procino Plating, Inc. (Athe facility@), at 901 South Market Street in Blades, Delaware. Until the fall of 2007, the facility was utilized for plating and electroplating-related operations.
The Resource Conservation and Recovery Act (RCRA) defines hazardous waste to include chemical waste which due to its chemical characteristics presents a hazard to human health or the environment. RCRA mandates that producers of hazardous wastes may not store such wastes without first obtaining a storage permit from the Environmental Protection Agency (EPA).From December 2007 through May 2010, Patrick Procino stored a tank containing approximately 450 gallons of liquid hazardous waste which originally had been used at the facility on its decorative chrome plating line. This chemical waste had a ph of 0.8 and, therefore, was a corrosive waste under RCRA.
As to Procino Plating, Inc. (Procino Plating), in the course of its operations it produced wastewater, and pursuant to a pretreatment industrial wastewater permit issued by Sussex County, Procino Plating was permitted to discharge its industrial wastewater to the Seaford, Delaware treatment plant which, in turn, discharges into the Nanticoke River. Pursuant to the Clean Water Act, the permit set limits on the amount of various pollutants that Procino Plating could discharge in its industrial waste water to the Seaford treatment plant, including limits on various metals.
On or about June 1, 2009, Sussex County modified Procino Plating=s industrial user permit to specifically prohibit the discharge of waste water generated as a result of electroplating operations, and any waste or bi-products of the electroplating processes then in storage at the facility. This modification was made based upon statements and representations by Procino Plating to Sussex County officials, indicating that the business has ceased electroplating-related operations at the facility. However, from June 2009 through March 2010, Procino Plating processed, through its wastewater treatment plant, stored drums of chemicals which were leftover from its former electroplating operations and, in violation of its Clean Water Act mandated permit, discharged resulting wastewater to the Seaford treatment plant.
United States District Court Judge Richard G. Andrews scheduled sentencing for February 27, 2014.
Following the guilty plea, Charles M. Oberly, III, United States Attorney for the District of Delaware, stated, AMy office will continue to prioritize the investigation and prosecution of those environmental offenses which present a present or potential hazard to human health or the environment.@
"For years the defendant knowingly disregarded federal and state environmental laws,” said David G. McLeod, Jr., Special Agent in Charge of EPA's criminal enforcement program for the Middle Atlantic States. "Improperly handling hazardous wastes and industrial pollutants can threaten the environment and put the public at serious risk. Today's guilty plea demonstrates our resolve to collaborate with our state and federal counterparts to vigorously investigate and prosecute any credible allegation that a company and its leaders treat our nation's environmental laws with contempt.”
“This case is another example of effective partnership between Delaware, EPA and the U.S. Attorney's Office to protect public health and the environment,” said DNREC Secretary Collin O=Mara. ADelaware companies demonstrate every day that they can be successful while complying with environmental standards, and DNREC works hard to assist the state's smaller businesses to achieve these goals. However, we have no tolerance for those who continually demonstrate a blatant disregard for the state’s hazardous waste regulations. We appreciate the great efforts of the U.S. Attorney’s Office and EPA in this matter.This case was investigated by the Environmental Protection Agency, Criminal Investigation Division, and the Department of Natural Resources and Environmental Control-Criminal Investigations. This case was prosecuted by Assistant United States Attorney Edmond Falgowski and Special Assistant United States Attorney Joseph Lisa.
Judges Sentences Man to Probation for Stealing His Deceased Mother-in-Law's Social Security BenefitsRead the Press Release
PITTSBURGH – A Pittsburgh resident was sentenced in federal court to five years probation on his conviction of theft of government property, United States Attorney David J. Hickton announced today.
Senior United States District Court Judge Donetta W. Ambrose imposed sentence upon Melvin P. McMillan, 67.
According to information presented to the court, McMillan received and used the Social Security Title II benefits that continued to be issued to his mother-in-law, Pauline Kasenic, after her death on Oct. 24, 1994. From November 3, 1994 to June 1, 2012, McMillan received $224,370.00 in Social Security Administration funds to which benefits he knew he was not entitled.
Prior to imposing sentence, Judge Ambrose took into consideration the defendant's lack of criminal history, his acceptance of responsibility and his military service.
Assistant United States Attorney Mary McKeen Houghton prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Special Agents of the Social Security Administration, Office of Inspector General, who conducted the investigation that led to the successful prosecution of McMillan.
Johnstown Woman Facing Federal Drug ChargesRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown was indicted on Oct. 8, 2013, by a federal grand jury in Johnstown on charges of violating various federal narcotics laws, United States Attorney David J. Hickton announced today.
The two-count indictment named Rukiya R. Smith, 34.
According to the indictment, Smith distributed less than 28 grams of cocaine base, commonly known as "crack," and less than 100 grams of heroin on March 5, 2013, and she possessed less than 100 grams of heroin on April 24, 2013, with the intent to distribute it.
The law provides for a maximum total sentence of 40 years in prison, a fine of $2,000,000 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 John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Homestead Man Charged with Illegally Possessing Firearms and AmmunitionRead the Press Release
PITTSBURGH - A resident of Homestead, Pa., has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, United States Attorney David J. Hickton announced today.
The one-count superseding indictment named Andre Dwayne Ruffin, 38.
According to the superseding indictment, on or about April 22, 2013, Ruffin, who has prior felony convictions, including violent felony offenses, possessed two firearms and ammunition. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
The law provides for a maximum total sentence for the offense of not less than 15 years and up to life in prison, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jonathan B. Ortiz is prosecuting this case on behalf of the government.
This case is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the West Mifflin Police Department and the Allegheny County Police, Homicide Section conducted the investigation leading to the superseding indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Oakdale Resident Facing Fraud ChargesRead the Press Release
PITTSBURGH - A former resident of Allegheny County has been indicted by a federal grand jury in Pittsburgh on charges of mail fraud, United States Attorney David J. Hickton announced today.
The seven-count indictment named Jason Sheppard, 32, as the sole defendant.
According to the indictment, Sheppard was doing business as Synergy Real Estate Solutions, which claimed to provide title insurance, settlement services, lead generation, and referral services to companies in the real estate industry, including appraisers. Sheppard generated a website which made it appear that Synergy had partnered with a variety of financial institutions, and then sent email solicitations to licensed appraisers claiming that Synergy had requests for appraisal orders. The email claimed that all the appraisers had to do was complete an appraiser application and pay a fee to Synergy and then they would be considered approved vendors and would receive a list of appraisal requests in their area. After receiving payment from the appraisers, Sheppard did not provide any of Synergy's advertised services, and he used the money to further the fraud scheme and to support his lifestyle.
The law provides for a maximum total sentence of 140 years in prison, a fine of $1,750,000, 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 Brendan T. Conway is prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former East Hills Man Charged with Drug and Gun Law ViolationsRead the Press Release
PITTSBURGH - A resident of Allegheny County has been indicted by a federal grand jury in Pittsburgh on charges of conspiracy to distribute 100 grams of more of heroin, attempt to possess with the intent to distribute heroin, and carrying, using, and discharging a firearm in relation to a drug trafficking crime and possession of a firearm in furtherance of a drug trafficking crime, United States Attorney David J. Hickton announced today.
The three-count second Superseding Indictment named Lamiere Thompson, 20, as the sole defendant.
According to the Second Superseding Indictment, from September 2011 to December 2011, Thompson conspired to distribute 100 grams or more of heroin. The second Superseding Indictment also charges that on or about Nov. 13, 2011, Thompson attempted to possess, with the intent to distribute, heroin, as well as used a firearm in furtherance of a drug trafficking crime.
The law provides for a maximum total sentence of not less than 15 years and up to life in prison, a fine of $6,250,000 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 Brendan T. Conway is prosecuting this case on behalf of the government.
The Greater Pittsburgh Safe Streets Task Force consisting of Pittsburgh Bureau of Police, Allegheny County Sheriff's Office, Wilkinsburg Police Department, Allegheny County Police Department, Oakdale Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration and the Federal Bureau of Investigation conducted the investigation leading to the second Superseding Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Army Officer Sentenced for Criminal Conflict of InterestRead the Press Release
A retired Lieutenant Colonel in the U.S. Army who served in Iraq as a contracting officer was sentenced in U.S. District Court in Tacoma on October 15, 2013 for criminal conflict of interest, announced U.S. Attorney Jenny A. Durkan. HAROLD L. BROEK, 49, served as Chief of Contracting at the Tikrit Regional Contracting Center in Tikrit, Iraq, and admitted in his plea agreement that he used his position of authority to benefit himself to the detriment of the United States. BROEK established a company, Global Motion, that received contracts from an Iraqi company to which he had awarded contracts. U.S. District Judge Benjamin H. Settle sentenced BROEK to three years of probation, with 60 days of home detention, 40 hours of community service and $52,400 in restitution. BROEK pleaded guilty July 23, 2013.
According to the records filed in the case, BROEK used his position of authority in the U.S. Army, his knowledge of government contracting, and his relationship with Rohit Goel and “Avalon International Limited” to contract with Goel and Avalon on government contracts. Before BROEK left Iraq in 2007, he directed his family in Washington State to form a company, Global Motion, for the purpose of receiving contracts from Goel and Avalon. While in Iraq, BROEK had entered into an illegal agreement with Goel whereby Goel would send certain government contracts, awarded by the United States to Goel and Avalon, to the new company formed by BROEK and his family. Pursuant to this arrangement, Goel agreed to award government contracts to BROEK’s new company, to pay BROEK’s new company 30% of the profit on such contracts, and to front necessary funds or finance any contract expenditures BROEK’s company would incur in purchasing goods to perform under the contracts.
Before leaving Iraq and returning to the United States, BROEK participated in awarding contracts to Avalon. Specifically, in July 2007, shortly before he left Iraq to return to Lacey, Washington, BROEK signed a waiver shortening the deadline on a contract for the purchase and delivery of line-of-sight radios. By shortening the deadline, BROEK decreased the chances that Avalon’s competitors might win the contract. Later in July 2007, one of BROEK’s subordinates in Iraq awarded a contract for line-of-sight radios, valued at $162,151, to Goel and Avalon. Goel, in turn, awarded the contract for line-of-sight radios to BROEK’s company, Global Motion.
In September 2007, Avalon fronted $99,978 to Global Motion to finance the purchase of the line-of-sight radios. To fill the line-of-sight radio contract, Global Motion spent $58,733 to purchase the radios and have them shipped to Iraq. Global Motion retained the balance of the funds from Avalon, making a profit of $29,871.90 on this deal.
According to tax returns, Global Motion made a profit in 2007 and 2008 of $52,400.16. Pursuant to the plea agreement, BROEK will make restitution payments to the United States in the amount of $52,400.16.
In sentencing documents, the United States argued that “it was clear that LTC Broek used his position and authority to enter into a business relationship with Avalon. Only LTC Broek had the contact with, experience with, and relationship with Rohit Goel to start or suggest a new business relationship. We also know that LTC Broek participated personally and substantially in his capacity as an Army Officer in at least one contract ultimately awarded to his family’s company, Global Motion. The many other contracts directed to Global Motion by Avalon, though awarded and directed after Broek left Iraq, also stink of fraud, corruption, and conflict. One has to ask why, and under what circumstances, a foreign contractor like Avalon would contract with Global Motion, a newly-formed company that had zero experience in contracting? In fact, the only reason Avalon contracted with Global Motion was because of LTC Broek.”
The case was investigated by the Special Inspector General for Iraq Reconstruction, Federal Bureau of Investigation, and Defense Criminal Investigative Service. The case was prosecuted by Assistant United States Attorneys David Reese Jennings and Marc Perez.
Deported Honduran Charged with Re-entering U.S. IllegallyRead the Press Release
PITTSBURGH - An alien found in Pittsburgh has been indicted by a federal grand jury on a charge of illegal re-entry after deportation, United States Attorney David J. Hickton announced today.
The one-count indictment named Pastor Gomez-Perez, 32, of Honduras, as the sole defendant.
According to the indictment presented to the court, Pastor Gomez-Perez, an alien, was formally removed from the United States by United States Immigration and Customs Enforcement on July 28, 2009. Pastor Gomez-Perez was found to be illegally present in Pittsburgh, Pennsylvania, on September 20, 2013.
The law provides for a maximum total sentence of 20 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 offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul E. Hull is prosecuting this case on behalf of the government.
The U.S. Department of Homeland Security, Immigration and Custom Enforcement conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Acting Post Office Head Misappropriated Funds, Stole from MailRead the Press Release
PITTSBURGH – A resident of Fayette County, Pa., pleaded guilty in federal court to charges of misappropriation of postal funds and theft of mail by a postal officer and employee, United States Attorney David J. Hickton announced today.
Jennifer M. Soltis, 38, of Smock, Pa., pleaded guilty to two felony counts before Senior United States District Court Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that from Oct. 8, 2012 to Jan. 9, 2013, Soltis, while employed as the Acting Officer in Charge with the United States Postal Service at the Smock, Pa., post office, converted to her own use, postal money orders, stamps and cash having a total value of $5,729.65. On Dec. 9, 2012, Soltis also embezzeled a Wal-Mart gift card from an item of mail.
Judge Ambrose scheduled sentencing for March 26, 2013, at 2:00 P.M. The law provides for a maximum total sentence of 15 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentence, the court released Soltis on bond.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The United States Postal Service, Office of Inspector General, conducted the investigation that lead to the prosecution of Soltis.
14 October 2013
Statement of U.S. Attorney Preet Bharara on the Transfer of Anas Al Liby to the Southern District of New YorkRead the Press Release
“Anas al Liby was transferred to law enforcement custody this weekend and was brought directly to the Southern District of New York where he has been under indictment for more than a decade. The Government expects that he will be presented before a judicial officer tomorrow.”
12 October 2013
Jacksonville Man Arrested for Recent Attacks on Power GridRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; and James Hendricks, Acting Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI); announced today that Jason Woodring, age 37, of Jacksonville, Arkansas, was arrested on a Criminal Complaint charging him with destruction of an energy facility.
The Affidavit filed with the Complaint alleges that Woodring is responsible for multiple acts of sabotage to the power grid in Central Arkansas. Yesterday, Lonoke County Sheriff’s Office deputies received multiple calls regarding an explosion on John Shelton Road in Jacksonville, Arkansas. Deputies and Entergy employees determined the explosion occurred under power lines near Woodring’s residence. Agents from the FBI and Joint Terrorism Task Force called to the scene, observed a type of blue hose similar to evidence found at another power grid sabotage scene. Interviews were conducted and information from these interviews was connected to previous power grid attacks resulting in the arrest of Woodring today. It is anticipated that an initial appearance in federal court will be scheduled for Tuesday.
“The citizens of Central Arkansas can rest a bit easier today with the arrest of Jason Woodring,” stated Thyer. “The power grid attacks had the potential to put many lives at risk. When we depend on electrical power not only for comfort and convenience, but also for safety, security and life-sustaining equipment, not knowing where the next attack would occur held the public hostage to an unknown attacker. I am extremely grateful to all the investigators from the FBI, Joint Terrorism Task Force, Bureau of Alcohol, Tobacco, Firearms and Explosives, Union Pacific Police, Entergy, First Electric, Lonoke County Sheriff’s Office, Cabot Police, Arkansas State Police, Conway Police Department, Little Rock Police Department and Arkansas Game and Fish Commission for their commitment to this investigation these past few months.”
"I am so proud of the collective team effort of all those who worked so diligently in investigating the attacks on our power grid," stated James Hendricks, Acting SAC for the FBI's Little Rock Office. "This dedicated team worked tirelessly to resolve this matter before anyone was hurt, for which we should all be especially thankful."
The power grid investigation began on August 21, 2013, with the sabotage of a high voltage power line support tower. Investigation of the 100-foot tower revealed that a shackle which holds a 500,000 volt power line was severed. Additionally, over 100 bolts securing the support tower had been removed leaving only five bolts to hold the tower and the power lines it carried in place. Due to the cut shackle, a power line fell on a nearby railroad track and was later struck by a passing train severing the power line causing a brief power outage in Cabot, Arkansas. Entergy was able to reroute power to mitigate the affect this outage had on its customers. Blue hose similar to that found at and near Woodring’s residence was found around this sabotage site.
A second attack on the power grid occurred September 29, 2013, at an Entergy Extremely High Voltage (EHV) switching station in Scott, Arkansas. According to the Affidavit, local authorities responding to notification that alarms were indicating multiple problems at the station found the EHV station on fire. A message in black marker at the entrance to the station read, “You should have expected U.S.” Entergy representatives estimate the damage to the switching station to be over two million dollars.
On October 6, 2013, a third incident was reported by First Electric Cooperative (FEC) which experienced a power outage in Jacksonville, Arkansas. This outage caused the loss of power to approximately 9,000 customers. An investigation by FEC and the FBI revealed two power poles had been cut and one pulled down causing the downing of a 115,000-volt transmission line. The tractor allegedly used to pull down the pole was stolen from a location directly across the street from Jason Woodring’s residence.
This investigation was conducted by the FBI, Joint Terrorism Task Force, Bureau of Alcohol, Tobacco, Firearms and Explosives, Union Pacific Police, Entergy, First Electric, Lonoke County Sheriff’s Office, Cabot Police, Arkansas State Police, Conway Police Department, Little Rock Police Department and Arkansas Game and Fish Commission. Assistant United States Attorney Michael Gordon is prosecuting this case for the United States.
The charges set forth in a Complaint are merely allegations. A federal Grand Jury will decide whether to indict on these charges. If indicted and convicted of this charge, Woodring faces a possible sentence of not more than 20 years imprisonment and/or a $250,000 fine followed by three years supervised release. Woodring is presumed innocent until proven guilty.
Claremont Woman Pleads Guilty to Wire FraudRead the Press Release
CONCORD, N.H. – Bonnie Johnson, 45, of Claremont, New Hampshire, entered a guilty plea in the United States District Court for the District of New Hampshire for fraudulently procuring more than $600,000 in funds from her employer, announced United States Attorney John P. Kacavas.
For more than two decades, Johnson was employed by the North Country Smokehouse in Claremont, New Hampshire, as an administrative assistant. In addition to her administrative responsibilities, Johnson had access to the company’s bank account and American Express corporate credit card, and was authorized to use those accounts and credit lines for business purposes in cases of financial exigency. Between July 1, 2005, and April 30, 2013, Johnson engaged in a scheme to fraudulently obtain money from North Country Smokehouse. To accomplish and carry out the scheme, Johnson fraudulently endorsed company checks made payable to herself, which she then deposited directly into her personal bank account. The funds, totaling $606,011.77 over the course of approximately eight years, were subsequently used by Johnson for various personal expenditures.
Johnson faces a maximum sentence of twenty years in prison and criminal fines of up to $250,000. Johnson will be released pending sentencing, which is presently scheduled for January 16, 2013.
Johnson’s prosecution arose from an investigation by the Claremont Police Department, the Internal Revenue Service’s Criminal Investigation office in Manchester, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Nick Abramson.
11 October 2013
U.S. Attorney John Walsh Issues Statement About Conviction of War Criminal "John Doe" Following Week Long Jury TrialRead the Press Release
“After a comprehensive investigation and an emotional jury trial, John Doe, a/k/a Kefelegn Alemu Worku, has been convicted of identity theft and lying to the United States government to gain entry and ultimately become a naturalized citizen. As the United States proved at trial, the defendant was in fact a war criminal, responsible for the persecution, torture and murder of defenseless people in the late 1970s in Ethiopia during the “Red Terror.” At trial, the United States presented as witnesses several of the victims the defendant had personally tortured. Their testimony was chilling, as was the fact that the defendant at trial sat with his back turned to them as they testified, until ordered by the Court to turn around so that his victims could identify him.
“Although no order of a U.S. Court can undo the crimes perpetrated by the defendant in Ethiopia, this trial offered Alemu Worku’s victims the opportunity to speak the truth bravely for all to hear and to see that a measure of justice would be done, at long last. As a result of defendant’s conviction, U.S. District Court Judge John L. Kane today immediately stripped Alemu Worku of his unlawfully obtained citizenship.
“I would like to recognize the outstanding work of Homeland Security Investigations Special Agent Jeff Lembke, Special Assistant U.S. Attorney Lily Alves, and lead prosecutor Assistant U.S. Attorney Brenda Taylor, who worked diligently and with great purpose and skill. In the end, their efforts and the courage of the victims who testified have ensured that Alemu Worku is no longer was able to hide ‘in plain sight’.”
John Walsh
United States Attorney, District of Colorado####
St. Tammany Coroner, Peter Galvan, Charged with Conspiracy to Steal Funds from Coroner’s OfficeRead the Press Release
PETER GALVAN, 54, a resident of St. Tammany Parish, and the elected St. Tammany Parish Coroner, was charged today in a bill of information with conspiring with two other individuals to steal money from the St. Tammany Coroner’s Office, announced U. S. Attorney Kenneth Allen Polite, Jr.
The bill of information charges that as an elected official, GALVAN did not earn annual or sick leave. However, with the assistance of another coroner’s office employee, GALVAN received yearly payments for unused annual and sick leave, totaling $111,376 over a five year period.
GALVAN, as a physician, individually contracted with the City of Slidell, Louisiana to provide medical services for inmates of the Slidell City Jail. The contract was not with the St. Tammany Parish Coroner’s Office, but with GALVAN personally. However, GALVAN conspired with another individual employed with the St. Tammany Parish Coroner’s Office to service this contract while the other individual was supposed to be working for and was being paid by the St. Tammany Parish Coroner’s Office. The Bill of Information charges that the Coroner’s Office employee was paid at least $50,000 in public funds to fulfill GALVAN’s personal contract.
Additionally, GALVAN conspired with an employee of the coroner’s office to purchase a $9,170 generator for GALVAN’s personal vessel, a life raft and life jackets for his personal vessel valued at $4,841, and a Global Positioning Satellite for his personal use valued at $2,395, all with St. Tammany Parish Coroner’s Office funds.
Finally, the Bill of Information alleges that GALVAN used his St. Tammany Parish Coroner’s Office credit card to make purchases of meals and other personal items with his public credit card totaling $15,606 which were unrelated to the office’s business.
If he is convicted, GALVAN faces a statutory maximum of five years in jail, a $250,000 fine and restitution.
U.S. Attorney Kenneth Allen Polite, Jr. reiterated that a Bill of Information is simply an allegation and that Dr. GALVAN is presumed to be innocent and he noted the investigation of the operation and personnel employed by the St. Tammany Coroner’s Office is continuing.
The case was investigated by the Federal Bureau of Investigation, Internal Revenue Service, Criminal Investigation Division, and the State of Louisiana Legislative Auditor. The case is being prosecuted by Assistant United States Attorneys Carter K. D. Guice, Jr. and Chandra Menon.
(Download Bill of Information )
Nooksack Tribal Member Sentenced to 23+Years in Prison for Ax MurderRead the Press Release
An enrolled member of the Nooksack Tribe was sentenced October 11, 2013 in U.S. District Court in Seattle to 280 months (23+ years) in prison for second degree murder, announced U.S. Attorney Jenny A. Durkan. LEVI EUGENE CHARLES, 26, admitted that he killed Sauk-Suiattle Tribal member Kenneth Joseph by striking him in the head and face with an ax. The murder occurred when 68-year-old Joseph awoke while CHARLES was burglarizing Joseph’s home on the Lummi reservation. Charles pleaded guilty on June 6, 2013. U.S. District Judge Richard A. Jones imposed five years of supervised release following the 23+ year prison term.
According to the plea agreement, CHARLES went to Joseph’s home the night of October 23, 2012. CHARLES knew Joseph and had been in the home. He admits he planned to break in and steal items to sell for cash. CHARLES picked up a miniature baseball bat outside the residence and carried it inside. Joseph heard the intruder and confronted him. CHARLES hit Joseph with the mini baseball bat multiple times and then grabbed an ax from near the front door of the house and hit the victim with that in the head and face. After killing Joseph, CHARLES threw a blanket over the body and hung blankets over the windows to conceal the crime scene. CHARLES stole an ATM card from Joseph’s wallet, and took a TV and other items from the house. CHARLES threw the small bat away in the woods and discarded the TV and other items at the end of the driveway. He used the ATM card a few hours later to take $420 from Joseph’s bank account.
CHARLES was arrested October 29, 2012 and was indicted December 19, 2012.
The case was investigated by the Lummi Police Department and the FBI. The case was prosecuted by Assistant United States Attorney Todd Greenberg.
Jerome Woman Indicted for Mail FraudRead the Press Release
BOISE — Celia Perez, 40, of Jerome, Idaho, turned herself in to federal authorities today on mail fraud charges, U.S. Attorney Wendy J. Olson announced. On October 8, 2013, a federal grand jury in Boise indicted Perez on the charges. An arraignment date has not been set.
The indictment charges Perez with devising a scheme to defraud victims by obtaining money by materially false and fraudulent pretenses through the use of the U.S. Postal Service. The indictment alleges Perez represented herself as an immigration attorney, and purported to assist aliens with filing immigration paperwork. Perez allegedly accepted money from the victims for fraudulent services, and fines and fees purportedly owed to the U.S. Government. As part of the scheme to defraud, Perez allegedly created fraudulent invoices for the fines and fees, and then had the victims mail their payments to her through the U.S. Postal Service. The indictment alleges Perez did not file any immigration petitions on behalf of the victims, and that she obtained approximately $30,000 from the victims as a result of the fraud scheme.
Mail fraud is punishable by up to 20 years in prison, a maximum fine of $250,000, and up to three years of supervised release.
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Postal Inspection Service, and U.S. Citizenship and Immigration Services (USCIS).
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Glen Carbon Man Sentenced for Receipt and Possession of Visual Depictions of Minors Engaged in Sexually Explicit ConductRead the Press Release
Arlynn Gene Georgeson, 54, of Glen Carbon, Il, was sentenced today after pleading guilty to an Information on June 17, 2013, charging, in Count 1, Receipt of Visual Depictions of Minors Engaged in Sexually Explicit Conduct; and, in Count 2, Possession of Visual Depictions of Minors Engaged in Sexually Explicit Conduct; the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Georgeson was sentenced to 97 months’ imprisonment on both counts, to run concurrently; 5 years’ supervised release on each count, also to run concurrently; and ordered to pay a special assessment of $200. The Court waived the fine. Georgeson was also ordered to pay, by consent of the parties, $1,000 in restitution to one of the victims portrayed in the images of child pornography in his possession. The Court also ordered that the computer used to commit the charged offenses be forfeited. Finally, upon his release from prison, Georgeson must register as a sex offender as a condition of his supervised release.
Evidence presented at sentencing was that, on September 27, 2011, during an undercover operation, two FBI agents in separate states were both able to download images of minors engaged in sexually explicit conduct from a computer that was later linked to the defendant. Both offices forwarded this information to the FBI’s Springfield Child Exploitation Task Force located in its Fairview Heights Office. Members of the task force subsequently obtained a search warrant for the defendant’s residence in Glen Carbon, Illinois.
One of the items seized during the execution of the search warrant was a Dell Studio Laptop Computer, Model 1555. A forensic examination of the Dell laptop revealed approximately 16,282 images and 512 videos of minors engaged in sexually explicit conduct. The majority of the images and/or videos of minors engaged in sexually explicit conduct that the defendant possessed were of minors between the age of 2 and 12. There were also images on the laptop of toddlers between the age of 2 and 5 being orally, vaginally, or anally penetrated, as well as images of bondage involving minors. Georgeson later admitted to law enforcement officers that he was the primary user of the laptop, and that he put the images of minors engaged in sexually explicit conduct on the computer (Count 2). The examination also revealed that several of the images of the minors engaged in sexually explicit conduct had been downloaded by the defendant, using a file sharing program, on December 28, 2011 (Count 1).
During the search of his residence, Georgeson agreed to provide a voluntary statement to law enforcement officers. Georgeson stated that he was the sole user of the file sharing program found on the Dell Studio laptop, and that he initially used the program to download music. Georgeson stated that he began to see images of minors engaged in sexually explicit conduct in some of the downloads, and subsequently started searching for such image and/or video files. Georgeson said that he viewed the “younger” images and that gender was not an issue for him. He described “younger” as being a prepubescent with no hip or breast development. He also admitted having some images involving infants saved to his laptop computer. Finally, Georgeson admitted saving the images and videos of minors engaged in sexually explicit conduct to the laptop computer, stating that he used the images for personal gratification and “research,” and that he downloaded the images and/or videos while his wife was at work.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 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.”
The case was investigated by the FBI’s New Orleans Office and the FBI’s Springfield Child Exploitation Task Force. The case was assigned to Assistant United States Attorney Angela Scott.
Foreign National Sentenced on Firearm, Immigration OffensesRead the Press Release
Antonio Rea-Fabela, age 36, a citizen of Mexico who most recently resided in St. Louis, MO, was sentenced on October 11, 2013, to ten months in federal prison, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Rea-Fabela had entered pleas of guilty on May 28, 2013, to Possession of a Firearm by an Illegal Alien; and Entry into the United States Without Inspection. In addition to the term of imprisonment, the Court ordered the forfeiture to the United States of the firearm possessed by the defendant. The Court also entered a Judicial Order of Removal, which requires that Rea-Fabela be deported from the United States following his term of imprisonment.
Evidence in support of the indictment in this case was obtained in an investigation which was the U.S. Immigration and Customs Enforcement Office of Homeland Security Investigations (ICE HSI), and the St. Clair County Sheriff’s Department. This case was assigned to Assistant United States Attorney Randy G. Massey for prosecution.
Foreign National Pleads Guilty to Role in Drug Trafficking OrganizationRead the Press Release
Jesus Orlando Mendez-Velasquez, 33, a citizen of Mexico who most recently resided in Salt Lake City, Utah, entered a plea of guilty on April 11, 2013, to Conspiracy to Distribute and Possess With the Intent to Distribute Cocaine (Count 1), the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Mendez-Velasquez had been charged on August 22, 2012, in an eleven count indictment charging a total of ten individuals with being members of a large drug trafficking organization. Mendez-Velasquez is currently scheduled to be sentenced at 9:00 a.m., on January 13, 2014, at which time he faces a mandatory minimum sentence of twenty (20) years imprisonment up to a potential maximum sentence of life imprisonment, followed by a term of supervised release of not less than ten years, a $10,000,000 fine, and a $100 special assessment. Although he entered a guilty plea as to Count 1 of the Indictment, he persisted in his “not guilty” pleas as to Count 2 (Conspiracy to Distribute and Possess With the Intent to Distribute Methamphetamine) and Count 11 (Interstate Travel in Support of Racketeering) and is currently scheduled for trial on those counts on November 4, 2013. The Defendant is presumed innocent of those two counts because an indictment is only a formal charge against him. 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 Defendant was given notice prior to his plea, that the United States intended to seek a Judicial Order of Removal, which would require his deportation following the service of any term of imprisonment.
According to the Stipulation of Facts which was filed with the Court at the time of the plea, Mendez-Velasquez was the leader of the organization charged in the Indictment, which was responsible for importing cocaine from Mexico into the United States, where it was eventually taken to Salt Lake City, Utah. From Salt Lake City, the cocaine was transported by members of the conspiracy to the St. Louis Metropolitan area where it was distributed by various members of the organization, including some who operated within the Southern District of Illinois. Proceeds for the sales of the cocaine were then transported back to the leaders of the conspiracy in Salt Lake City.
Of the nine individuals named in the indictment with Mendez-Velasquez, seven others have entered pleas of guilty; one other has been arrested and is awaiting trial; one is a fugitive. Those not yet convicted are presumed innocent for the reason set forth in the first paragraph, above.
Evidence in support of the indictment in this case was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Participating agencies include the Drug Enforcement Administration (DEA), Internal Revenue Service, Criminal Investigations, the U.S. Immigration and Customs Enforcement Office of Homeland Security Investigations (ICE HSI), U.S. Marshal Service, the Granite City Police Department, Fairview Heights Police Department, the Collinsville Police Department, the St. Louis Metropolitan Police Department, the St. Louis County (Missouri) Police Department, the St. Charles County (Missouri) Sheriff's Department, and the Nebraska State Patrol.
This case is assigned to Assistant United States Attorney Randy G. Massey for prosecution.
10 October 2013
Wyoming Man Charged with Felony Child AbuseRead the Press Release
U.S. Attorney for the District of Wyoming Christopher A. Crofts announced that on September 26, 2013, Robert Felter Jr., a 22-year-old Northern Arapaho Tribal Member, was charged in an Indictment with one count of felony child abuse in Indian Country, in violation of 18 U.S.C. § 1153 and W.S. § 6-2-503. The charge draws from an incident that occurred on June 20, 2013. Mr. Felter is facing a potential five (5) year term of imprisonment, and could be ordered to pay restitution, a fine, and special assessment. This case is being investigated by the Bureau of Indian Affairs with the assistance of the Federal Bureau of Investigation.
An Indictment is only an accusation. In every criminal case, the accused is presumed to be innocent until proven guilty, and the government always has the burden of proving guilt beyond a reasonable doubt.
Vallejo Woman Sentenced to 27 Months in Prison for Bankruptcy and Mortgage Fraud SchemeRead the Press Release
SAN JOSE, CA — Myra Holmes was sentenced on October 7, 2013 to 27 months’ imprisonment and ordered to pay over $196,000 in restitution on bankruptcy and mortgage fraud related changes, United States Attorney Melinda Haag announced.
Following a three-week trial, on March 19, 2013, a federal jury convicted Myra Holmes, 56, of Vallejo, California, of one count of U.S.C. § 152(5)-bankruptcy fraud/concealment of assets, one count of 18 U.S.C. § 1344-bank fraud, and three counts of 18 U.S.C. 1014-making a false statement to a bank. The jury acquitted Holmes on two other false statement counts. Evidence at trial showed that Holmes enriched herself by knowingly receiving from her father his half-interest in a Vallejo residence in which she lived. Holmes knew at the time she received this property that her father had previously declared bankruptcy and that, as a result, his half-interest in the Vallejo property now belonged to his Chapter 7 bankruptcy estate. Holmes took this half-interest in the Vallejo property without paying anything to the bankruptcy estate and also without notifying or obtaining the permission of the United States Bankruptcy Court or the bankruptcy trustee. After Holmes received her father’s half-interest in the Vallejo property, she drained the equity from the property through a fraudulent refinancing mortgage loan application. The jury found that Holmes falsely told World Savings Bank in her refinancing mortgage applications: (1) that she earned $15,000 a month; (2) that she had a bank account balance of $15,000; and (3) that she was not a party to a lawsuit. Evidence at trial showed that Holmes knew at the time she filed her refinancing mortgage applications that she was overstating her monthly income and account balance and also knew that the bankruptcy trustee had recently filed a lawsuit against her seeking to recover the bankruptcy estate’s half-interest in the Vallejo property.
As a result of her bankruptcy fraud and mortgage fraud, Holmes received approximately $147,000 directly and arranged for personal debts to be paid (including her debts to Neiman Marcus, Lord & Taylor, Macy’s, and Spiegel). By the end of April 2006, Holmes had spent on personal expenses (including gambling and shopping) all of the approximately $147,000 that she had fraudulently received as a result of the November 2005 refinancing of the Vallejo property. To date, Holmes has not repaid the bankruptcy estate for the funds she took out of the Vallejo property in the November 2005 refinancing.
The Honorable Edward J. Davila, United States District Court Judge, handed down the 27-month sentence. Judge Davila also ordered Holmes to pay over $196,000 in restitution and to serve a three-year term of supervised release. Judge Davila denied Holmes' motion for bail pending appeal and ordered her to self-surrender by January 7, 2014 to begin serving her sentence.
Assistant U.S. Attorney Joseph Fazioli prosecuted the case with the assistance of Lakisha Holliman and Laurie Worthen. This prosecution is the result of a multi-year investigation by the Federal Bureau of Investigation.
(Holmes second superseding indictment )
U.S. Attorney's Office in Second Week of FurloughRead the Press Release
LAFAYETTE/SHREVEPORT/MONROE/ALEXANDRIA/LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced today that operations of the Office of the U.S. Attorney for the Western District of Louisiana, all divisions - Lafayette, Shreveport, Monroe, Alexandria and Lake Charles continue to suffer from the effects of the partial shutdown that started at midnight on October 1, 2013.
The office as a whole is operating with 54 percent of its original staff. Most civil litigation has stopped. Because of the partial shutdown, the majority of the office’s staff working on civil litigation continues to be furloughed. The few remaining employees in the Civil Division have been left to monitor hundreds of civil matters to ensure the interests of the United States are protected. Administrative and criminal support staff have also been furloughed, but criminal litigation is ongoing, as these activities are deemed essential to the safety of human life and the protection of property. The U.S. Attorney’s Office continues to work with federal, state and local law enforcement on criminal matters.
Because of the effects of the appropriations lapse on activities of the U.S. Department of Justice, the U.S. Attorney’s Office has not been able to readily respond to media inquiries. Press releases are being limited to urgent matters involving public safety. The office’s website is not being actively updated during the shutdown. The district will continue to receive communications from the public via mail, email and/or telephone. For additional information concerning the effects of the appropriations lapse and partial shutdown, visit www.justice.gov/jmd/publications/doj-contingency-plan.pdf or www.justice.gov/usao/law.
Twelve Men Charged with Alien Smuggling in the Florida KeysRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Rear Admiral John H. Korn, Commander, 7th Coast Guard District, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Miami Field Office, announce the indictment of twelve defendants for their alleged participation in the smuggling of Cubans to the United States.
Two indictments, with a combined 126 counts, charge the defendants with conspiracy to encourage and induce aliens to enter the United States, in violation of Title 8, United States Code, Section 1324(a)(1)(A)(v)(I); encouraging and inducing aliens to enter the United States, in violation of Title 8, United States Code, Section 1324(a)(1)(A)(iv); alien smuggling for private financial gain, in violation of Title 8, United States Code, Section 1324(a)(2)(B)(ii); bringing an aggravated felon into the United States, in violation of Title 8, United States Code, Section 1327; and illegal reentry into the United States by an aggravated felon, in violation of Title 8, United States Code, Section 1326(a) and (b)(2). The indictments charge the following twelve individuals:
Antonio Comin, 56, of Miami-Dade County
Arial Arias, 42, of Miami-Dade County
Severo Tapanes, 41, of Miami-Dade County
Jose Valdes Diaz, 37, of Miami-Dade County
Oreste Chavez Torres, 22, of Miami-Dade County
Alexander Aznay-Gonzalez, 23, of Miami-Dade County
Oylver Aguilar, 40 of Miami-Dade County
Juan Blanco, 20 of Miami Dade County
Rogelio Martin-Hernandez, 73, of Miami-Dade County
Eduardo Rodriguez, 42 of Miami-Dade County
Daniel Rochela, 42 of Monroe County
Mario Valdez, 53, of Monroe CountyAccording to the indictments, the defendants are alleged to have engaged in three separate ventures to smuggle a total of sixty-nine aliens. The indictments further allege that the smuggling of fifty of those aliens was for profit. Four defendants remain at large. The other defendants had their initial appearances before U.S. Magistrate Judge Lurana S. Snow in Key West, Florida.
If convicted, defendants Tapanes, Martin-Hernandez, and Rodriguez are facing a maximum possible sentence of twenty years in prison; defendants Arias, Valdes Diaz, Chavez Torres, Aznay-Gonzalez, Aguilar, and Blanco are facing a sentence of fifteen years in prison; and defendants Rochela and Valdez are facing a possible maximum sentence of ten years in prison. Defendant Comin is charged with 102 counts, including fifty counts of alien smuggling for profit, and could face a higher sentence.
Mr. Ferrer commended the investigative efforts of ICE-HSI and the U.S. Coast Guard. This case is being prosecuted by Special Assistant U.S. Attorney Kelly Blackburn.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.