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Monday 19 August 2013
White River Woman Convicted of Conspiracy to Distribute MarijuanaRead the Press Release
United States Attorney Brendan V. Johnson announced that Jo Ann White Buffalo, age 48, of White River, South Dakota, appeared before U.S. District Judge Roberto A. Lange on August 12, 2013, and pled guilty to a Superseding Information that charged her with conspiracy to distribute between 50 and 100 kilograms of marijuana.
Previously, as part of this same narcotics trafficking conspiracy, Phillip Stands, age 50, of Rosebud, Alfred Eagle Deer, Jr., a/k/a Alfred Eagle Deer, age 31, of Rosebud, and Joe Buck Colombe, age 34, of Mission, pled guilty to the same charge.
The maximum penalty upon conviction for White Buffalo and Eagle Deer is 20 years in custody, a $1,000,000 fine, or both; at least 3 years of supervised release; and a $100 assessment to the Federal Crime Victims Fund. The maximum penalty upon conviction for Colombe is 30 years in custody, a $2,000,000 fine, or both; at least 6 years of supervised release; and a $100 assessment to the Federal Crime Victims Fund.
Between October 2008 and August 2012, Abraham Romero-Perez obtained between 60 and 80 kilograms (132.28 to 176.37 pounds) of marijuana that had been transported into South Dakota. Romero-Perez then sold or “fronted” (a term for loaning controlled substance to an individual with the intent that the supplier will be paid for the substance after it has been sold) pound quantities of marijuana to other persons, including Gloria Barrera, Andrea Barrera, Colombe, and White Buffalo, knowing that they intended to further distribute the marijuana in South Dakota. Stands, and later Eagle Deer, assisted Gloria Barrera in redistributing the marijuana by helping her break pound quantities of marijuana into smaller quantities, and distributing some of it to marijuana users. Eagle Deer was fronted quantities of marijuana ranging from one ounce and upwards.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. The cases are being prosecuted by Assistant U.S. Attorney Jay Miller.
Presentence investigations were ordered, and sentencing dates were set for August 19, 2013, for Eagle Deer; October 7, 2013, for Colombe; and October 21, 2013, for White Buffalo. Stands was previously sentenced on August 12, 2013.
White Buffalo, Colombe, and Eagle Deer were released on bond pending sentencing.Waterbury Man Admits Robbing Banks in Waterbury and New BritainRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that VICTOR RAMOS, 31, of Waterbury, waived his right to indictment and pleaded guilty today before United States Magistrate Judge Donna F. Martinez in Hartford to one count of bank robbery.
According to court documents and statements made in court, on February 1, 2013, RAMOS, Jose Rivera and others committed an armed robbery of the TD Bank located on Hartford Road in New Britain, stealing approximately $24,480. On February 21, 2013, RAMOS, Rivera and others committed an armed robbery of the TD Bank located on North Main Street in Waterbury, stealing approximately $5,319.
In pleading guilty, RAMOS also admitted that he violently stole $100 from a small business in Waterbury on January 28, 2013.
RAMOS has been detained since his arrest on June 5, 2013.
Rivera, 41, of Waterbury, has been detained since his arrest on February 21, 2013. On August 7, 2013, he also pleaded guilty to one count of bank robbery.
RAMOS and Rivera are scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on November 7, 2013, at which time they face a maximum term of imprisonment of 25 years.
This matter is being investigated by the Federal Bureau of Investigation, the Waterbury Police Department and the New Britain Police Department. The case is being prosecuted by Assistant United States Attorney Douglas P. Morabito.
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[email protected]U.S. Attorney Paul J. Fishman Joins in Announcing New Anti-Carjacking Public Awareness CampaignRead the Press Release
NEWARK, N.J. – U.S. Attorney Paul J. Fishman joined Acting Essex County Prosecutor Carolyn A. Murray, Essex County Sheriff Armando Fontoura and Newark Police Director Samuel A. DeMaio today to announce the launch of a joint anti-carjacking public awareness campaign.
Aimed at raising awareness of the serious consequences carjackers face, the campaign will include billboards, bus placards and flyers. The message is that carjacking is a serious crime and those who engage in carjacking face severe consequences.
“Carjacking terrorizes victims and the communities in which they live and work,” U.S. Attorney Fishman said. “The penalty for these crimes is appropriately tough. Carjackers prosecuted federally can face decades in prison, far from home, in a system with no parole.”
“Carjacking is not the same as taking a stolen car for a joyride,” said Prosecutor Murray. “When you pull out a gun and demand someone’s vehicle that is a serious crime and the penalties are severe if you are convicted. We want to send that message to young people who sometimes seem to view carjacking as nothing more than a theft.”All of the billboards will be up by the end of the day. Three are up already in Newark just a short distance from the Leroy Smith Building at 50 West Market Street.
They are located at:- 4th Avenue and Broadway
- 61 Pennsylvania Avenue at the intersection of Parkhurst
- 97 Sussex Avenue
In the 1990s, Essex County led the nation in car theft. With advances in technology, increasingly vehicles are equipped with sophisticated anti-theft devices, making it almost impossible for an amateur to steal an unattended car. As a result, carjackings have been on the rise in Essex County.
For example, in 2009, Essex County had just over 200 carjackings. Every year that number has continued to climb. Recently, there have been more than 400 carjackings each year countywide. These crimes occur in the early morning hours and late at night. Sometimes they involve high-end cars, but very often modestly priced vehicles are targeted.
“Carjacking is the fastest growing and potentially the most dangerous of crimes against persons and property,” Sheriff Armando Fontoura pointed out. “This public education initiative was devised to warn that law enforcement has teamed up our anti-carjacking efforts and makes clear the serious and long-term consequences of committing such a crime.”
Newark Police Director DeMaio said, “The Newark Police Department has implemented several proactive and reactive initiatives to combat this plague including but not limited to joint task forces and specialized proactive units. In addition to educating our motorists on how to better protect themselves from would be carjackers, we are now endeavoring to educate the carjackers themselves. Lawmakers, prosecutors, and judges are taking these crimes very seriously and sending a message to criminals through stiff penalties for carjackings, some of which are prosecuted on the federal level.”
In response to the increase in incidents, a Carjacking Task Force was set up in 2010 by the U.S. Attorney Paul Fishman and then Acting Essex County Prosecutor Robert Laurino.
Since that time the Essex County Prosecutor’s Office has worked cooperatively with the U.S. Attorney’s Office; the Federal Bureau of Investigation; U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI); the Newark Police Department; the U.S. Immigration and Customs Enforcement; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; the New Jersey Attorney General’s Office; the New Jersey State Police; and the Essex County Sheriff’s Office.
Starting Aug. 1, East Orange, Belleville and Irvington Police Departments became a part of this initiative. Each department has sent officers to serve on the Carjacking Task Force. In addition, the Essex County Prosecutor’s Office continues to maintain a Special Prosecutions Unit. Three assistant prosecutors are assigned to that unit. It was established to seek swift justice in these cases.
In line with these efforts, the Essex County Prosecutor’s Office indicted eight defendants in recent weeks in carjacking cases. They include the following defendants:
Faquan Martin, 35, of Irvington, was indicted on 11 counts including conspiracy, carjacking, weapons possession, eluding and resisting arrest following an event on Nov. 20, 2012, in Newark. In addition to carjacking, Martin fled from the police causing a crash and creating a risk to the public.
Kalik Hollis, 19, and Andre Spencer, 19, both of East Orange, were both indicted in a seven-count indictment. Spencer is accused of carjacking someone in Belleville on Oct. 1, 2012. He is also accused of robbery. Hollis was indicted on knowingly receiving a 2006 Toyota Corolla. He is also charged with fleeing when the Belleville Police attempted to stop him.Terrell Walker, 19, of Irvington, and Malcolm Smith, 20, of Newark were indicted for a Nov. 26, 2012, carjacking in Newark. In addition to carjacking they are charged with aggravated assault and robbery. Walker is also charged with committing another carjacking in Newark on Dec. 19, 2012.
An 11-count indictment was returned charging Donald Moore, 19, of Newark, Messiah Arrington, 19, of Newark, and Magid Wheeler, 18, of Newark with various crimes related to a Jan. 6, 2013, carjacking. Wheeler and Arrington were involved in the carjacking of a 2013 Honda Accord. Three days later Moore fled in the same Honda, resulting in a police chase.
The U.S. Attorney’s Office has been working with investigators and prosecutors at the federal, state and local levels to select carjacking cases that are appropriate for federal prosecution. Since the formation of the anti-carjacking task force, the U.S. Attorney’s Office has prosecuted 37 defendants. Last month, the U.S. Attorney’s Office announced charges against five Essex County men for carjacking and related crimes.
Significant sentences arising out of federally prosecuted carjackings, and at which federal Bureau of Prisons facility those convicted are serving their time, include:
- Jahlil Thomas (who is featured on one of the billboards), 262 months; serving his sentence in Beaver, W.Va.
- Jerome Conover, 181 months; Ray Brook, N.Y.
- Taj Elliot, 147 months, Coleman, Fla.
- Amonra Jackson, 120 months, Beaumont, Texas.
- Alhakim Young, 130 months, Inez, Ky.
- Jermaine May, 118 months, Bruceton Mills, W. Va.
- Jirrod Parker, 150 months, Inez, Ky.
The federal charge of carjacking or attempted carjacking carries a maximum potential penalty of 15 years in prison; 25 years in prison if serious bodily injury results; and life in prison or the federal death penalty if death results. Using a firearm in furtherance of a crime of violence carries a minimum consecutive term of five years in prison if a firearm is possessed, seven years in prison if a firearm is brandished, 10 years in prison if a firearm is discharged and a maximum of life in prison. Each of these charges also carries a maximum $250,000 fine. There is no parole in the federal system.
“We are encouraged by this partnership of federal, state and local law enforcement to combat carjacking in our communities,” Murray said. “Our goal is to let carjackers know that we take these crimes very seriously and that the penalties they will face are considerable.”
“In addition to putting would-be criminals on notice, we want to alert the public to be cautious,” Prosecutor Murray said. “Don’t leave the keys in your car even to run in and drop the baby off at the babysitter’s. Don’t leave your doors unlocked as you drive around. Be alert. Be smart,” she added.13-343
Carjacking billboard - green cell
Carjacking Billboard - Parking Spot - Hallway
Carjacking Billboard - Seconds YearsTopeka Man Carried .40 Caliber Pistol in Furtherance of Drug TraffickingRead the Press Release
TOPEKA, KAN. – A Topeka man has pleaded guilty to a federal charge of carrying a .40 caliber pistol in furtherance of drug trafficking, U.S. Attorney Barry Grissom said today.
Malik T. Yates, 20, Topeka, Kan., pleaded guilty to one count of unlawful possession of a firearm in furtherance of drug trafficking. In his plea, he admitted that on March 1, 2013, members of the Kansas Bureau of Investigation Task Force served a search warrant at his residence in Topeka. They seized methamphetamine, a .40 caliber pistol and $3,000 cash.
He is set for sentencing Nov. 18. He faces a sentence of not less than five years and not more than life and a fine up to $250,000.
Grissom commended the Kansas Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Richard Hathaway for their work on the case.
State Trooper Charged in Civil Rights CaseRead the Press Release
PHILADELPHIA - Pennsylvania State Trooper Kelly Cruz, 43, of Oxford, Pennsylvania, was charged in a one count indictment, unsealed today, with deprivation of civil rights, announced United States Attorney Zane David Memeger.
The indictment alleges that on August 9, 2009, Cruz, while working as a State Trooper, kicked Z.B. in the back of the head as Z.B. was lying face down on the floor in handcuffs. As a result of the kick, Z.B. suffered bodily injury that required surgery to repair his teeth.
If convicted, the defendant face a maximum possible sentence of 10 years in prison.
The case was investigated by FBI-Newtown Square Office and is being prosecuted by Assistant United States Attorneys L.C. Wright and Maureen McCartney.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Six Men Sentenced for Unlawful Taking of Migratory Birds and Lacey Act ViolationsRead the Press Release
United States Attorney Brendan V. Johnson announced that five men from South Dakota and one man from Minnesota, convicted of Unlawful Taking of Migratory Birds and Lacey Act Violations, were sentenced by U.S. Magistrate Judge John E. Simko on August 19, 2013.
Eight men were originally charged in this case, with one sentence handed down on July 15, 2013, and the remaining sentence scheduled for August 28, 2013.
The individuals sentenced today include:
• Jaron Anderson, age 22, of Brookings, South Dakota, was sentenced to 3 years of probation; a $200 fine; $4,875 in restitution; and a $25 special assessment to the Federal Crime Victims Fund. Anderson’s hunting privileges are revoked for a period of 3 years.
• Aaron Eich, age 29, of Sioux Falls, South Dakota, was sentenced to 2 years of probation; a $200 fine; $4,875 in restitution; and a $25 special assessment to the Federal Crime Victims Fund. Eich’s hunting privileges are revoked for a period of 2 years.
• Christopher Paclik, age 22, of Brookings, South Dakota, was sentenced to 1 year of probation; a $200 fine; $4,050 in restitution; and a $25 special assessment to the Federal Crime Victims Fund. Paclik’s hunting privileges are revoked for a period of 1 year.
• Austin Lueck, age 21, of Lake Benton, Minnesota, was sentenced to probation until January 13, 2015; a $200 fine; $3,750 in restitution; and a $25 special assessment to the Federal Crime Victims Fund. Lueck’s hunting privileges will be revoked for 1 year starting on January 13, 2014.
• Scott Nenaber, age 33, of Alpena, South Dakota, was sentenced to 1 year of probation; a $200 fine; $2,175 in restitution; and a $25 special assessment to the Federal Crime Victims Fund. Nenaber’s hunting privileges are revoked for a period of 1 year.
• Ben Burgess, age 30, of Sioux Falls, South Dakota, was sentenced to 1 year of probation; a $200 fine; $825 in restitution; and a $25 special assessment to the Federal Crime Victims Fund. Burgess’ hunting privileges are revoked for a period of 1 year.
Nicholas Connor, age 21, of Winfred, South Dakota, will be sentenced on August 28, 2013.
Travis Vacek, age 34, of Sioux Falls, South Dakota, previously pled guilty to Unlawful Taking of Migratory Birds and a Lacey Act Violation, and was sentenced on July 15, 2013, to 1 year of probation; a $200 fine; $1,350 in restitution; and a $25 special assessment to the Federal Crime Victims Fund. Vacek’s hunting privileges are revoked for a period of 1 year.
The charges stem from a case wherein Anderson, Burgess, Connor, Eich, Lueck, Nenaber, Paclik and Vacek, a group of friends known as “Team Those Guys,” hunted between November 24, 2012 and November 29, 2012 in Miner County, South Dakota. In total, the hunters illegally killed 417 geese and 6 Canada geese using an electronic device. They all admitted they knew it was illegal to use said device while goose hunting during that time of year. After killing the geese, they were transported from the field to various locations in violation of federal law.
The investigation was conducted by the U.S. Fish & Wildlife Service and the South Dakota Game, Fish & Parks. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Shands Healthcare to Pay $26 Million to Resolve Allegations<br /> Related to Inpatient Stays at Six Florida HospitalsRead the Press Release
Shands Teaching Hospital & Clinics Inc., Shands Jacksonville Medical Center Inc. and Shands Jacksonville Healthcare Inc. (collectively, Shands Healthcare), which operates a network of health care providers in Florida, will pay the government and the state of Florida a total of $26 million to settle allegations that six of its health care facilities submitted false claims to Medicare, Medicaid and other federal health care programs for inpatient procedures that should have been billed as outpatient services, the Justice Department announced today. The six Florida hospitals are: Shands at Jacksonville; Shands at Gainesville, also known as Shands at the University of Florida; Shands Alachua General Hospital; Shands at Lakeshore; Shands Starke and Shands Live Oak.
“The Department of Justice is committed to ensuring that Medicare funds are expended appropriately, based on the medical needs of patients rather than the desire of health care providers to maximize profits,” said Stuart F. Delery, Assistant Attorney General for the Civil Division. “Hospitals participating in Medicare must bill for their services accurately and honestly.”
Allegedly, from 2003 through 2008, the six hospitals knowingly submitted inpatient claims to Medicare, Medicaid and TRICARE for certain services and procedures that Shands Healthcare knew were correctly billable only as outpatient services or procedures.
“The public expects its medical professionals to operate with a high degree of integrity,” said A. Lee Bentley III, Acting U.S. Attorney for the Middle District of Florida. “When health care providers seek higher profits at the expense of their professional judgment, the public trust in the medical system is compromised.”
“Regardless of the complexity of these schemes to siphon off crucial health care dollars,” said Daniel R. Levinson, Inspector General of the U.S. Department of Health and Human Services, “our law enforcement officials will work tirelessly to seek justice.”The six Florida hospitals were named as defendants in a qui tam, or whistleblower, lawsuit brought under the False Claims Act, which permits private citizens to sue on behalf of the government and receive a portion of the proceeds of any settlement or judgment awarded against a defendant. The lawsuit was filed in federal district court in Jacksonville, Fla., by Terry Myers, the president of a healthcare consulting firm, YPRO Corp. Of the $26 million settlement, $25,170,400 will go to Medicare and other federal health care payors. The settlement also resolved allegations under the Florida False Claims Act; the state of Florida will receive $829,600. Myers’ portion of these recoveries has yet to be determined.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $14.8 billion through False Claims Act cases, with more than $10.8 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlement was the result of a coordinated effort among the U.S. Attorney’s Office for the Middle District of Florida, the Commercial Litigation Branch of the Justice Department’s Civil Division, the Department of Health and Human Services’ Office of Inspector General and Office of Counsel to the Inspector General, and the Florida Attorney General’s Office.
The claims resolved by these settlements are allegations only, and there has been no determination of liability. The lawsuit is captioned United States of America and the State of Florida ex rel. Terry L. Myers v. Shands Healthcare et al., Civil Action No. 3:08-cv-441-J-16HTS (M.D. Fla.).Seneca Falls Man Pleads Guilty in Child Pornography CaseRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Lawrence Higgins, 62, of Seneca Falls, N.Y., pleaded guilty to possession of child pornography and being a felon in possession of a firearm before the U.S. District Court Judge Charles J. Siragusa. As a result of a prior Seneca County conviction for sex abuse in the first degree, possession of child pornography carries a mandatory minimum penalty of 10 years, a maximum penalty of 20 years, and a fine of $250,000. Being a felon in possession of a firearm carries a maximum penalty of 10 years in prison and a fine of $250,000.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that the United States Postal Inspection Service received information that the defendant ordered DVD's depicting child pornography. From November 2008 to March 2011, Higgins made 11 purchases. The DVDs were delivered to an address located on State Street in Seneca Falls, N.Y. where a search warrant was executed on November 14, 2012. Higgins admitted to ordering the DVDs and possessing thousands of images of child pornography and hundreds of hours of videos of child pornography on his computers and digital storage media. The defendant also possessed a rifle and ammunition.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea is the culmination of an investigation on the part of the United States Postal Inspection Service, under the direction of Inspector in Charge, Kevin Niland, Boston Division.
Sentencing is scheduled for November 25, 2013, before Judge Siragusa.Sanostee, N.M., Man Sentenced to Five Years in Federal Prison for Aggravated Child Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Lorenzo Begay, 49, an enrolled member of the Navajo Nation who resides in Sanostee, N.M., was sentenced this afternoon to five years in prison followed by five years of supervised release for his aggravated sexual abuse conviction. Begay will be required to register as a sex offender after he completes his prison sentence.
Begay was arrested in Jan. 2012, on a criminal complaint alleging that he sexually abused a child under the age of 12 from July 2010 through June 2011, within the boundaries of the Navajo Nation Reservation. Begay subsequently was indicted on that same charge. According to court filings, the investigation into Begay was initiated after law enforcement authorities received a referral from the Navajo Nation Division of Social Services after the child victim disclosed the sexual abuse to a school social worker.
On May 15, 2013, Begay entered a guilty plea to a felony information charging him with aggravated sexual abuse and admitted sexually abusing the child victim. Begay was remanded into federal custody after entering his guilty plea.
This case was investigated by the Albuquerque and Farmington offices of the FBI and the Shiprock Office of the Navajo Nation Division of Public Safety. It was prosecuted by Assistant U.S. Attorney Jacob A. Wishard as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Sandusky Man Sentenced to Three Months Custody, Ordered to Pay $489,007 for False Distress Calls That Caused Lake Erie SearchRead the Press Release
A Sandusky man was sentenced to three months in federal custody and ordered to pay $489,007 in restitution after for making a false distress call that caused a massive search on Lake Erie, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Danik Shiv Kumar, 21, pleaded guilty earlier this year to one count of making a false distress calls.
On the evening of March 14, 2012, Kumar took off in a Cessna single-engine plane for a solo flight from Burke Lakefront Airport to Bowling Green State University. About 30 minutes into his flight, Kumar called the Cleveland-Hopkins Airport control tower and reported seeing a vessel “launching up flares,” according to court documents.Moments later, when asked for additional details about the vessel in distress, Kumar responded “a 25-foot fishing vessel I guess you could say. Everyone had a life jacket with a strobe light. I counted four of them,” according to court documents.
The information was relayed to the Coast Guard, which immediately dispatched two vessels. The crew of the Coast Guard Cutter Thunder Bay searched for 21 hours, while multiple boat crews from Coast Guard Station Lorain, Ohio, searched for about 16 hours. Rescue helicopter crews from Coast Guard Air Station Detroit joined in the search, as did a Canadian Coast Guard airplane crew from Joint Rescue Coordination Centre Trenton, Ontario, according to court documents.
More than a month later, Kumar admitted that he never saw flares or a boat in distress and there were never any people in need of help. He also admitted that when he landed at Bowling Green, he knew the USCG was searching with full force but chose not to report the truth, according to court documents.
The $489,007 restitution amount represents the cost of the search. The amount is comprised of the $277,257 expended by U.S. agencies and the $211,750 cost to the Canadian government. Kumar was also sentenced to 250 hours of community service and three years of supervised release.“I am concerned that there are people who are willing to risk the lives of other boaters who might be in legitimate need of rescue or assistance, as well as needlessly endanger response crews, by knowingly making a false distress calls,” said Capt. Eric Johnson, chief of the Coast Guard 9th District Incident Management Branch.
This case is being prosecuted by Assistant United States Attorney Michelle Baeppler and Coast Guard Lt. Michael Petta, who was designated Special Assistant United States Attorney. The case was investigated by the United States Coast Guard.
San Felipe Pueblo Man Pleads Guilty to Federal Child Sex Abuse ChargeRead the Press Release
ALBUQUERQUE – Orian P. Sandoval, 43, a member and resident of San Felipe Pueblo, pleaded guilty this morning to an indictment charging him with abusing sexual contact with a child between the age of 12 and 16 years. Sandoval entered his guilty plea without the benefit of a plea agreement.
Sandoval was indicted on an abusive sexual contact charge on June 26, 2013, and made his first appearance in federal court on July 11, 2013. According to the indictment, Sandoval engaged in sexual contact with a child between the age of 12 and 16 years on a date between Dec. 1, 2010 and Jan. 31, 2011, in Indian Country located in Sandoval County, N.M.
Today, Sandoval pleaded guilty to the indictment. Sandoval was remanded into the custody of the U.S. Marshals Service after entering his guilty plea and will remain in federal custody pending his sentencing hearing, which has yet to be scheduled. At sentencing, Sandoval faces a maximum penalty of two years in federal prison and a term of supervised release to be determined by the court. He will be required to register as a sex offender when he completes his prison sentence.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services. It is being prosecuted by Assistant U.S. Attorney Paul H. Spiers as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Richland County Man Sentenced on Methamphetamine Related ChargesRead the Press Release
A Richland County man was sentenced on August 15, 2013, to federal prison on methamphetamine related charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Brian Kelly Jenner, 50, of Olney, was sentenced to 120 months in prison, to be followed by four years supervised release, and fined $200. Jenner had previously pleaded guilty to a two count federal indictment. Count 1 charged that from April 2010, until on or about September 2012, in Richland County, Jenner conspired with others known and unknown to the grand jury to manufacture more than 50 grams of methamphetamine. Count 2 charged that from April 23, 2010, to September 13, 2012, in Richland County, Jenner possessed pseudoephedrine pills knowing and having reasonable cause to believe that the pills would be used to manufacture methamphetamine.
The investigation was conducted by the Richland County Sheriff’s Office.
The case is being handled by Assistant United States Attorney George Norwood.
Retired Educator Sentenced to Prison for FraudRead the Press Release
The Justice Department and Internal Revenue Service (IRS) announced that Gloria Donoghue was sentenced today in federal court in the Eastern District of New York to18 months in prison for using the mail in her tax refund scheme. Donoghue was also ordered to pay restitution of $320,621 to the IRS.
According to the superseding indictment, Donoghue was charged with making false claims against the United States, through the filing of three trust returns, each of which claimed false refunds of $300,000. She was also charged with causing Treasury checks for those years to be mailed to Roosevelt, N.Y. In April 2013, Donoghue pleaded guilty to one count of mail fraud. As part of her plea agreement, Donoghue agreed to the forfeiture of over $579,378.
This case was investigated by IRS-Criminal Investigation and prosecuted by Trial Attorneys Jennifer R. Laraia and Erin Pulice of the Justice Department's Tax Division.
Rapid City Man Sentenced for Illegally Possessing FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man convicted of Felon in Possession of a Firearm was sentenced on August 14, 2013, by Chief Judge Jeffrey L. Viken, U.S. District Court.
This case was investigated by the Bureau of Indian Affairs Office of Justice Services, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Daniel Thomas, age 31, was sentenced to 46 months of imprisonment, 2 years of supervised release, and was ordered to pay $100 to the Federal Crime Victims Fund.
On July 23, 2012, at Red Shirt, South Dakota, Thomas went to a residence with a .38 caliber Colt Cobra revolver, and when the person in the house got to the door, Thomas displayed the gun in his hand and asked where his “stuff” was. On that same date, Thomas kicked another individual and pointed the gun at that person. Thomas is prohibited from possessing firearms based on previous felony convictions, including possession of heroin, manufacturing or delivering a controlled substance, and taking a motor vehicle without permission.Pleasant Hill Man Sentenced to 15 Years for Distribution of Child PornographyRead the Press Release
OAKLAND – Laurence Pullen was sentenced today to 15 years in prison for distribution of child pornography, announced United States Attorney Melinda Haag.
Pullen, 60, of Pleasant Hill, was indicted by a federal grand jury on November 29, 2012. He pleaded guilty on April 22, 2013. According to the plea agreement, Pullen admitted to distributing over the Internet videos of minors engaged in sexually explicit conduct with adults.
The sentence was handed down by U.S. District Court Judge Claudia Wilken following a guilty plea on Count One of the Indictment in violation of 18 U.S.C. § 2252(a)(2). Judge Wilken also sentenced the defendant to a ten year period of supervised release and ordered him to register as a sex offender and to participate in a sex offender treatment program.
Rodney C. Villazor is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Vanessa Quant. The prosecution is the result of an investigation by Homeland Security Investigations.
Pierre Woman Convicted of Theft of Governement FundsRead the Press Release
United States Attorney Brendan V. Johnson announced that Brandis Rose Rose, age 37, from Pierre, South Dakota, appeared before U.S. District Judge Roberto A. Lange on August 14, 2013, and pled guilty to Theft of Government Funds.
The maximum penalty upon conviction is 10 years in custody, a $250,000 fine, or both; 3 years of supervised release; restitution; and $100 to the Federal Crime Victims Fund.
The conviction stems from incidents that occurred when Rose embezzled, stole, purloined or knowingly converted to her own use over $8,000 in Old Age, Survivors, and Disability Insurance (OASDI) and Supplemental Security Income (SSI) program funds to which she was not entitled.
South Dakota CARES (SD CARES) is a Social Security Administration (SSA) approved fee-for-service organizational payee that serves Social Security and SSI beneficiaries in South Dakota. Rose was an employee of SD CARES from July 6 through November 16, 2009. During that time, Rose handled the accounts for 14 beneficiaries that were under her care and control.SD CARES became concerned about the possibility of misappropriated funds in February 2010 and reported it to the SSA District Office in Huron. The SSA Office of Inspector General conducted an audit and interviewed the 14 beneficiaries under Rose’s care and control. They determined that Rose misappropriated $8,718.08 and converted it to her own use.
The investigation was conducted by the SSA Office of the Inspector General. The case is being prosecuted by Assistant U.S. Attorney Jay Miller.
A presentence investigation was ordered and a sentencing date was set for October 28, 2013. Rose was released on bond pending sentencing.Physician Sentenced to Prison in Million Dollar Power Wheelchair ScamRead the Press Release
United States Attorney Laura E. Duffy announced that Irving J. Schwartz, M.D. was sentenced today to 5 months in prison, followed by 5 months in a half-way house, for his involvement in a scheme to defraud the Medicare trust fund by writing hundreds of false and fraudulent prescriptions for costly medical equipment that was not medically necessary. Dr. Schwartz was also ordered to pay restitution of $593,429.81 to the Medicare trust fund, and to forfeit $55,800 in kickbacks that he received for his role in the fraudulent scheme.
The Medicare program is a federally-funded health insurance program that provides health care services and equipment — including power wheelchairs to qualifying individuals who cannot walk without assistance. Prior to receiving this expensive equipment, however, a medical doctor must write a prescription certifying that the Medicare beneficiary has a medical need for the power wheelchair. In this case, Dr. Schwartz abused his position as a licensed physician by writing prescriptions for pricey medical equipment without any regard for the wants or needs of his patients.
The scheme focused on the sale of fraudulent power wheelchair prescriptions, with the end-goal being to obtain reimbursements from Medicare for power wheelchairs that patients did not need. Dr. Schwartz and a Co-conspirator named Gloria Hernandez would travel to El Centro, California in search of elderly Medicare patients. Schwartz would then write the patients prescriptions for power wheelchairs, even though the patients did not need the equipment and could walk without assistance. Schwartz collected a $300 cash kickback in exchange for each power wheelchair prescription. Hernandez would then sell the power wheelchair prescriptions to a medical supply owner named Jose Melendez (another Co-Conspirator), charging him $1,000 per fraudulent prescription.
Melendez, in turn, sold some of the power wheelchair prescriptions to other co-conspirators, charging an additional mark-up on each prescription. As the last step in the scheme, Melendez and the other co-conspirator owners of medical supply companies would submit the fraudulent prescriptions to Medicare for reimbursement, billing up to $5,865 for each power wheelchair.
In his plea agreement, Dr. Schwartz admitted that he wrote at least 186 fraudulent power wheelchair prescriptions for Medicare beneficiaries in exchange for more than $55,000 in bribes and kickbacks. Melendez, the owner and operator of Oceanside Medical Services, purchased these 186 fraudulent prescriptions and used them to submit over $830,000 in false claims to Medicare. In a related case, co-conspirators Aristeo and Laura Tavares admitted to submitting more than $250,000 in false claims, based on Dr. Schwartz’s fraudulent prescriptions. In total, the scheme resulted in more than $1 million in false claims to the Medicare trust fund.
During today’s hearing, prosecutors described Dr. Schwartz’s conduct as an egregious breach of trust and an abuse of his position as a medical doctor. In one case, Dr. Schwartz wrote two power wheelchair prescriptions for a husband and wife living in El Centro. Four years after Medicare paid for the expensive equipment, the power wheelchairs were still wrapped in the original plastic covering and sat unused in the couple’s home – except during Christmas when one wheelchair was used as a Christmas tree stand. The husband and wife were both able to walk without difficulty, and they told federal agents that they never asked for the costly equipment, never needed it, and never used it. United States District Court Judge Marilyn L. Huff chastised Dr. Schwartz in open court, remarking that “he should have known better,” and reminding Dr. Schwartz that these types of schemes take valuable government resources away from elderly patients who actually need expensive medical equipment.
United States Attorney Duffy said, “As a physician, Dr. Schwartz was licensed to operate in a system dependent on trust and honesty. He knew it was illegal to write false and fraudulent prescriptions, yet he purposefully engaged in criminal activity in order to line his own pockets at the expense of the Medicare program and the American taxpayer.”
DEFENDANTS CRIMINAL CASE NO. 12cr2599-H Irving Schwartz SUMMARY OF CHARGESCount 1: Conspiracy to Pay and Receive Health Care Kickbacks and Defraud -Title 18, United States Code, Section 371; Maximum Penalties: Five years in custody; $250,000 fine; 3 year of supervised release; and mandatory restitution
INVESTIGATING AGENCIESFederal Bureau of Investigation
Department of Health and Human Services, Office of Inspector GeneralParkersburg Pedophile Pleads Guilty to Federal Child Pornography OffenseRead the Press Release
Jeffrey Kesterson had more than 600 images of child pornography on two computers
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced that a Parkersburg pedophile faces up to 10 years in prison after pleading guilty today to a federal child pornography offense. Jeffrey E. Kesterson, 54, pleaded guilty to possession of child pornography today before Chief United States District Judge Robert C. Chambers in Huntington. On November 16, 2011, Kesterson possessed on his computers more than 600 pictures and videos of children having sex or performing sexual acts.
The child pornography was found on two of Kesterson’s computers after he downloaded it from the Internet. Kesterson received and shared child pornography using a peer-to-peer file sharing program called LimeWire, which allows Internet users to download files from other people’s computers around the world.
Kesterson is scheduled to be sentenced on November 18, 2013.
The West Virginia Internet Crimes Against Children Task Force and the Parkersburg Police Department conducted the investigation. Assistant United States Attorney Lisa Johnston is in charge of the prosecution.
This case is being brought as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
Omaha Man Sentenced in Spa Prostitution CaseRead the Press Release
United States Attorney Deborah R. Gilg announced that William Knox, age 64, was sentenced today in Omaha by Chief United States District Judge Laurie Smith Camp to 12 months plus 1 day in federal prison, followed by 2 years of supervised release following his convictions on two counts of violating federal law. He was also fined $50,000 for each count. Mr. Knox had previously pled guilty to one count of conspiracy to use facilities in interstate commerce in aid of a racketeering enterprise, that is, a business enterprise involving prostitution, and to induce travel in interstate commerce with intent to engage in prostitution, and one count of conspiracy to commit money laundering. Mr. Knox also forfeited a 2005 Ford Expedition, a 2004 Nissan Roadster and three bank accounts totaling $4,641.89. In addition, Mr. Knox paid $225,000.00 in satisfaction of a money judgment for proceeds of the offense.
Starting in the late 1990’s, and continuing to 2012, Mr. Knox owned and managed a “spa” in Omaha, Nebraska. The spa had different names over time, but was frequently referred to as the Ninety Third Street Spa.
Ninety Third Street Spa was, in fact, a front for prostitution. The majority of customers received sex acts from the workers, rather than legitimate spa services, in exchange for money. Some customers traveled to the spas from Iowa and from other states to obtain sex acts for money.
Mr. Knox generally hired someone to work at the front desk, take appointments, collect money and schedule workers. Customers paid a fee that varied by the length of the “session.” That fee was kept by Ninety Third Street Spa. Customers separately negotiated a “tip” with the worker, which the worker kept. Mr. Knox had “sessions” with workers, during which he obtained sex acts in exchange for money.Mr. Knox also negotiated agreements with others to buy Ninety Third Street Spa as an ongoing business and make payments to Mr. Knox over time. Mr. Knox never ultimately completed the sale of Ninety Third Street Spa.
Mr. Knox and others acting at his direction deposited revenue generated by the operation of Ninety Third Street Spa into a bank account which Mr. Knox opened and controlled, under the name NTS Spa, Ltd. dba Ninety Third Street Spa (“Spa Bank Account”). Mr. Knox wrote checks drawn on the Spa Bank Account for “management fees” and deposited them into another account he had opened, under the name Knox Contracting & Development, William R. Knox (“KCD Bank Account”). Mr. Knox wrote checks drawn on the KCD Bank Account for particular “pay periods” and deposited them into a personal checking account he had opened under his name.
Mr. Knox placed advertisements for Ninety Third Street Spa on the internet. Customers arranged appointments using cellular telephones and other facilities in interstate commerce.
During the time when Mr. Knox owned and managed Ninety Third Street Spa, there were five or more participants operating and managing it and an overall total of more than twenty workers providing commercial sex acts.
The investigation was conducted by the Federal Bureau of Investigation, the Omaha Police Department and the Internal Revenue Service, under the auspices of the Child Exploitation Task Force, which also includes the Council Bluffs Police Department, the Douglas County Sheriff’s Office, the La Vista Police Department, the Mills County Sheriff’s Office and the Nebraska State Patrol.
North Huntingdon Man Sentenced for Mail Fraud, Witness Tampering & False StatementsRead the Press Release
PITTSBURGH, Pa. - A resident of North Huntingdon, Pa. has been sentenced in federal court to three years of probation; eight months of home detention with electronic monitoring; restitution of $14,639.86, and he has been ordered to pay a fine of $10,000 on his conviction of mail fraud, witness tampering and false statements to the government, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerr y imposed the sentence on Danny A. Patel, 46.
According to information presented to the court, Patel managed a BP gas station in McKeesport, Pa. Patel submitted false insurance claims to Harleysville Insurance Company arising from a December 25, 2011 accident at the BP. Patel also admitted that he lied to FBI agents and obstructed justice by asking witnesses to lie to FBI agents.
Assistant United States Attorney Robert S. Cessar prosecuted this case on behalf of the government.
U. S. Attorney Hickton commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Patel.
Non-Native Man from Shiprock Pleads Guilty to Federal Child Sex Abuse Charge Involving Navajo ChildRead the Press Release
ALBUQUERQUE – Bruce Hamilton, 77, a non-Native who resides in Shiprock, N.M., pleaded guilty this morning to sexually abusing a minor. Under the terms of his plea agreement, Hamilton will be sentenced to a federal prison term within the range of two to five years followed by a term of supervised release to be determined by the court. Hamilton will be required to register as a sex offender when he completes his prison sentence.
Hamilton and co-defendants Herbert Ben, Sr., 63, and Rosabelle Ben, 58, both members of the Navajo Nation from Shiprock, were arrested in May 2012, based on a criminal complaint alleging child sex abuse offenses. All three subsequently were indicted and charged with sexual abuse of a child between the age of 12 and 16 years, and aiding and abetting the sexual abuse of a child.
Today, Hamilton pleaded guilty to sexual abuse of a ward or minor and admitted sexually abusing a Navajo child between the age of 12 and 15 years on a date between Aug. 2010 and Dec. 2011. Hamilton further admitted committing this crime in a building located within the Navajo Indian Reservation.
Co-defendant Ben, Sr., pleaded guilty on July 31, 2013, to sexual abuse of a minor and admitted that, on a day between Aug. 2010 and Dec. 2011, he sexually abused the victim at a location within the Navajo Reservation. Under the terms of his plea agreement, Ben, Sr., will be sentenced to a federal prison term within the range of two to five years followed by a term of supervised release to be determined by the court. Ben, Sr., also will be required to register as a sex offender.
Co-defendant Rosabelle Ben has entered a not guilty plea and is pending trial. The charges against Rosabelle Ben are merely accusations and she is presumed innocent unless found guilty beyond a reasonable doubt in a court of law.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. It is being prosecuted by Assistant U.S. Attorneys Jacob A. Wishard and Novaline D. Wilson as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Mull Sentenced to 37 Months in PrisonRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
Court also orders forfeiture of vehicles, payment of money judgment
WHEELING, WV – United States Attorney William J. Ihlenfeld, II, announced today that KYMBERLY MULL, 44 years of age of Wheeling, WV, was sentenced to 37 months in federal prison for her role in a drug trafficking conspiracy.
In June, MULL pleaded guilty to the offense of “Conspiracy to Distribute Schedule I and Schedule II Controlled Substances.” MULL agreed that between September of 2011 and February of 2012 she conspired with others to sell heroin, cocaine, and oxycodone pills. MULL admitted to delivering or aiding the delivery of these drugs to undercover officers and confidential informants on at least twelve occasions during a six month period.
The investigation leading to the charges included extensive surveillance, controlled purchases of narcotics, executions of search warrants, and seizures of narcotics, automobiles, and United States Currency. The source state for most of the heroin referenced in the Mull indictment was Pennsylvania, while the pain pills came from Pennsylvania, Ohio, and West Virginia.
As part of her sentence, MULL must make payment of $11,000 to the Ohio Valley Drug Task Force as reimbursement for funds that were paid to her during the controlled purchases of narcotics. She must also pay a money judgment of $50,000 to the United States of America as well as forfeit a 2011 Chevrolet Corvette, a 2005 Hummer H2, and a 2003 Dodge Ram 2500 Quad Cab. She will be placed onto three years of supervised release after she has served the prison sentence.
Assistant United States Attorney Randolph J. Bernard was the lead prosecutor and was assisted by Ihlenfeld. The matter was investigated by the Ohio Valley Drug Task Force, which includes officers and agents from the Wheeling Police Department, the Ohio County Sheriff’s Department, the West Virginia State Police, and the Drug Enforcement Administration. Substantial assistance was provided by the Hancock-Brooke -Weirton Drug Task Force, which includes Weirton Police Officers, Hancock County Sheriff’s Deputies, and DEA Agents. Assistance was also provided by the Pennsylvania State Police.
Mobridge Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mobridge, South Dakota, man has been charged by Criminal Complaint for Failure to Register as a Sex Offender.
Troy Justin Plenty Chief, age 31, was charged on August 8, 2013, and appeared before U.S. Magistrate Judge William D. Gerdes on August 15, 2013, and pled not guilty to the Complaint.
The maximum penalty upon conviction is up to 10 years of imprisonment, a $250,000 fine, a mandatory minimum term of 5 years of supervised release, an additional mandatory minimum of 5 years up to life of supervised release upon revocation, and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation, and Plenty Chief is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Plenty Chief was released on bond pending trial. A trial date has not been set.Marietta Man Sentenced to Federal Prison for Filing False Claims with the IRSRead the Press Release
ATLANTA - Arnold Tobias Gervais, has been sentenced for defrauding the IRS out of more than $3.4 million in federal income tax refunds while he was in state custody.
“Those who cheat the IRS take money away from everyone who pays his or her fair share of taxes,” said United States Attorney Sally Quillian Yates. “The United States Attorney’s Office and the IRS are on the lookout for tax cheats and will aggressively pursue those individuals who try to beat the system.”
“Today’s sentence hopefully reassures the public that individuals who attempt to enrich themselves at the expense of the United States Treasury will be held accountable.” stated Special Agent in Charge, Veronica Hyman-Pillot. “IRS Criminal Investigation will continue to aggressively pursue those individuals who utilize fraudulent methods to steal from the American taxpayer.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “It is hoped that today’s sentencing of Mr. Gervais, the second conviction for him on false tax filing related charges, will have a sufficient deterrent impact on him. The FBI will continue to work with its various law enforcement partners in investigating such matters involving income tax refund fraud.”
According to United States Attorney Yates, the charges and other information presented in court: Gervais was convicted in May 2008 and sentenced to five years in prison by the Superior Court of Cobb County, Ga., for theft by taking after he submitted a fraudulent tax return in an attempt to obtain a tax refund of more than $600,000 from the State of Georgia. Gervais was incarcerated on that charge from July 13, 2007, through February 26, 2010.
On March 16, 2009, while in state custody, Gervais caused his then wife to file a phony 2008 Form 1040 with the IRS. The tax return contained a claim for payment of an income tax refund in the amount of $811,073, which Gervais knew to be false, fictitious, and fraudulent.
In addition, Gervais filed, or caused to be filed, six more false claims for federal income tax refunds - five in his own name for tax years 2004, 2005, 2006, 2007, and 2009, and one in the name of an acquaintance for tax year 2009. All seven of the returns claimed false wages and federal tax withholding. And all seven of the returns falsely claimed that the taxpayer had earned a significant amount of wages from a fictitious company called “Safety Shoes & More, Inc.,” which was allegedly located in Rome, Ga. The returns also falsely claimed that the corporation had withheld from those wages a significant amount of federal income tax. The total amount of fraudulent tax refunds that Gervais sought from the IRS was $3,488,135. Of that amount, the IRS paid $2,832,268.
The United States Attorney’s Office filed two civil forfeiture actions, which resulted in the seizure of $2,232,012 from accounts controlled by Gervais, thereby reducing the out-of-pocket loss to the IRS.
Gervais, 34, of Marietta, Ga., was sentenced by United States District Judge Timothy C. Batten, Sr. to serve the statutory maximum of 5 years in prison. He was also ordered to serve 3 years on supervised release following his prison term and ordered to pay $2,832,268 in restitution to the IRS. On January 16, 2013, Gervais pleaded guilty to a Criminal Information charging him with filing false claims for income tax refunds.
This case was investigated by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation.
Assistant United States Attorneys Russell Phillips and Michael J. Brown prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.Man Admits Enticing Minor to Engage in Sexual ActivityRead the Press Release
Defendant Pleads Guilty on Friday; Trial Was to Have Begun Today
DALLAS, Texas — Phillip Amisano-Camillo, 42, a resident of Canada, pleaded guilty on Friday, before U.S. District Judge Jorge A. Solis, to one count of enticement of a minor. His trial, on a two-count indictment charging not only enticement, but also one count of traveling with intent to engage in sexual acts with a minor, was to have begun this morning in federal court in Dallas. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the plea agreement filed in the case, the parties agree that the appropriate term of imprisonment is not more than 480 months, if the court accepts the plea agreement. Sentencing is set for December 18, 2013, before Judge Solis.
According to documents filed in the case, Camillo admits that he met John Doe in an Internet chat room in April 2012. In the days and weeks after he met Doe, who he knew was a 14-year-old minor, Camillo “chatted” online with him via Skype. Camillo admits that in May 2012 he traveled from Washington State to Dallas to meet John Doe for a sexual encounter. Camillo also admits that before and during his time in the Dallas/Fort Worth area, he enticed and persuaded John Doe to sneak out of his home and meet him to engage in unlawful sexual activity. Camillo admits that he took John Doe to a local hotel and engaged in sexual activity with him.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Irving Police Department. Assistant U.S. Attorney Lisa J. Miller is in charge of the prosecution.
Local Business Executive Pleads Guilty to Conspiracy to Defraud the United StatesRead the Press Release
The former Vice President of a Detroit based construction management firm entered a plea of guilty today as part of the ongoing federal investigation and prosecution involving the Garden View Estates public housing project in Detroit, Michigan, United States Attorney Barbara L. McQuade announced.
McQuade was joined in the announcement by Robert D. Foley, III, Special Agent In Charge of the Detroit Field Office of the Federal Bureau of Investigation (FBI), Randall Ashe, Special Agent in Charge of the U.S. Environmental Protection Agency, Criminal Investigation Division (EPA-CI), and Barry McLaughlin, Special Agent in Charge, U.S. Department of Housing and Urban Development - Office of Inspector General (HUD-OIG).
Calvin Hall, 45, of Detroit, entered the guilty plea in United States District Court before Judge David M. Lawson.
According to court documents, Hall and others prepared and submitted a proposal for XCEL Construction Services, Inc. which included false information. Based upon the false documents, XCEL Construction Services, Inc. was awarded a contract worth more than $11 million to act as the construction manager of the infrastructure phase of the Garden View Estates public housing project, which was funded by a $24 million grant from the U.S. Department of Housing and Urban Development. At the time, Hall was the Vice President of XCEL Construction Services.
During the plea hearing, Hall stated that he conspired with Michael Woodhouse, the President of XCEL Construction Services, Inc., and Bobby W. Ferguson, the founder and original owner of XCEL Construction Services, Inc.
United States Attorney McQuade stated, "We hope that this conviction will deter people from committing fraud against public housing programs, which are intended to provide housing to needy people in our community.”
FBI Special Agent in Charge Foley said, "Those who use false documents to receive millions of dollars in government contracts will face severe consequences for their illegal acts. The FBI will remain committed to pursuing and prosecuting such criminals."
HUD-OIG Special Agent in Charge McLaughlin said, The funds for this project were dedicated to improve the quality of life for Detroit’s neediest families. Working with our law enforcement partners, the Office of Inspector General for HUD will redouble our efforts to combat the fraud that limits that opportunity”.”
Under the plea agreement, Hall faces up to 18 months of imprisonment, as well as a fine of up to $40,000. In addition, Hall agreed to forfeit more than $2.2 million in assets, including multiple bank accounts and certificates of deposit seized from XCEL Construction Services, Inc. during the course of the federal investigation.
This case is being prosecuted by Assistant United States Attorneys J. Michael
Buckley, Bruce Judge and Rita Foley.Kansas City, Kan., Tax Preparer Pleads Guilty to Filing False Tax ReturnsRead the Press Release
KANSAS CITY, KAN. – A tax preparer from Kansas City, Kan., has pleaded guilty to preparing false federal income tax returns for other people, U.S. Attorney Barry Grissom said today.
Kelly N. Kittrell, 42, pleaded guilty to count two of an indictment charging her with preparing false income tax returns. The indictment alleged Kittrell prepared false tax returns for 13 clients. Count two alleged that on April 6, 2009, she submitted a form 1040A for tax year 2008 in which she falsely stated that a client had received $13,859 in wages and paid $2,698 in taxes. As a result of the falsely claimed wages and tax payments, the tax return prepared by Kittrell fraudulently demanded a refund of $9,226, to which her client was not entitled.
Sentencing is set for Feb. 10, 2014. She faces a penalty of not more than three years in federal prison and a fine up to $250,000. Grissom commended IRS - Criminal Investigation, Justice Department Tax Division Trial Attorney Matthew Kluge and Assistant U.S. Attorney Scott Rask for their work on the case.Justice Department Reaches Interim Olmstead Settlement with the State of TexasRead the Press Release
The Justice Department’s Civil Rights Division announced today that it has joined with private plaintiffs in entering an interim settlement agreement with the state of Texas intended to enable Texans with intellectual and other developmental disabilities to live in community settings rather than nursing facilities. The interim agreement calls for the state to begin expanding community alternatives to nursing facilities for thousands of persons with these types of disabilities, while the parties temporarily suspend their ongoing litigation and work to negotiate a comprehensive settlement of all remaining issues in the case.
The litigation involves claims that the state has not complied with the Americans with Disabilities Act (ADA), other federal statutes and the Supreme Court’s landmark decision in Olmstead v. L.C. in ways leading to the needless institutionalization of people with intellectual and other developmental disabilities in nursing facilities.
“We applaud the state’s commitment to initiate steps providing real options to Texans with intellectual and other developmental disabilities, so that they can live and engage in their own communities, rather than spend their lives in nursing facilities,” said Acting Assistant Attorney General for Civil Rights Jocelyn Samuels. “The Supreme Court made clear more than a decade ago that people with disabilities must be provided the same opportunities to participate in community life as those without disabilities. This agreement is an important step to making that promise a reality in Texas.”
The interim agreement offers meaningful improvement in the lives of people like plaintiff Eric Steward. After spending nearly a decade in a nursing facility, Mr. Steward recently moved to his own home in San Antonio and, for the first time, attended the city’s annual celebration and street festival. There are thousands of people who remain unnecessarily segregated, and the interim agreement will help ensure that they, like Mr. Steward, have opportunities to live their lives as they want.
The interim agreement calls for the state to identify people with developmental disabilities in nursing facilities, inform them about community options and help those who want to move to the community receive the services that they need there, instead of in a nursing facility. In addition, the state will establish a system to help divert people from avoidable nursing facility admission.
Private plaintiffs filed suit against the state in 2010, represented by Disability Rights Texas, the Center for Public Representation, and the law firm of Weil, Gotshal & Manges LLP. The Justice Department intervened in the case in 2012. The department and private plaintiffs subsequently entered into extensive settlement negotiations with the state, leading to this interim agreement. It is the Department of Justice’s first statewide settlement to vindicate the Olmstead rights of individuals in nursing facilities.
The Civil Rights Division enforces the ADA, which authorizes the Attorney General to investigate whether a state is serving individuals in the most integrated settings appropriate to their needs. Please visit http://www.justice.gov/crt and http://www.ada.gov to learn more about the ADA and other laws enforced by the Justice Department’s Civil Rights Division.
This agreement is due to the efforts of Alison Barkoff, Special Counsel for Olmstead Enforcement and the following staff members of the Civil Rights Division, Special Litigation Section: Jonathan Smith, Chief ; Benjamin Tayloe, Deputy Chief; Robert Koch, Regan Rush and Alexandra Shandell, Trial Attorneys; and Gary Graca, paralegal
Houston Man Gets Significant Sentence for Drug Trafficking Through Falfurrias CheckpointRead the Press Release
CORPUS CHRISTI, Texas - Luis Perez-Barocela, 38, has been ordered to prison for more than 24 years for his participation in a large drug trafficking conspiracy, United States Attorney Kenneth Magidson announced today. A federal jury in Corpus Christi found Perez-Barocela, of Houston, guilty after three days of trial and less than three hours of deliberation on Thursday, May 30, 2013.
Today, Senior U.S. District Judge John Rainey, who presided over the trial, handed Perez-Barocela a 292-month sentence for conspiracy to possess with the intent to distribute more than 1000 kilograms of marijuana from October 2011 until his arrest on Oct. 24, 2012. Perez-Barocela will also be required to serve a term of five years of supervised release following completion of the prison term.
Evidence at trial established that the organization moved large amounts of marijuana in tractor-trailers hauling produce through the Falfurrias Border Patrol checkpoint and on to other major cities within the United States. From October 2011 until April 2012, approximately 4,000 kilograms of marijuana was seized. Those seizure have, to date, resulted in the convictions of three tractor-trailer drivers, Jose Benitez, 46, of Houston, Ernesto Cabrera-Enriquez, 39, of Miami, Fla., Noe Galindo, 37, of Weslaco, as well as Oscar Quijano, 43, of Dallas.The government proved Perez-Barocela was responsible for recruiting drivers in the scheme. He and his co-defendants were also tasked with escorting the loads through the checkpoint while safely situated in other passenger vehicles and maintaining contact with the drivers by phone.
Drivers Benitez, Cabrera-Enriquez, Galindo and others provided testimony they were each recruited by Perez-Barocela and offered between $15,000 and $55,000 to drive approximately 700 pounds of marijuana through the checkpoint and on to various cities within the United States. However, they learned upon their arrest that they had actually been hauling between 1,200 and 2,800 pounds.
Agents with the Drug Enforcement Administration (DEA) and Homeland Security Investigations (HSI) testified as to photographs showing Perez-Barocela, his co-defendants and/or vehicles associated with the defendants passing through the checkpoint often within minutes of load vehicles. Additionally, the jury heard testimony regarding cellular telephone records that demonstrated contact between Perez-Barocela and the drivers in the days and weeks leading up to their arrest.
Perez-Barocela will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by DEA, HSI and Border Patrol. Assistant United States Attorney Jeffrey D. Preston is prosecuting the case.
Hogsett Announces Arrest of Eastern Indiana Man on Child Exploitation ChargesRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today that Derek Walton, age 31, of Liberty, has been charged with child exploitation. Hogsett said the filing of formal charges comes as his office has launched Operation Community Watch, a new effort which aims to reduce the abuse of Hoosier children through innovative investigative techniques and aggressive prosecution.
“These cases are always difficult, both as a prosecutor and as a parent,” Hogsett said. “They are even more troubling when the allegations involve a law enforcement official who was entrusted with protecting Hoosier communities. This is what Operation Community Watch was designed to do, however – hold accountable those who endanger our children, no matter who they are.”
According to a criminal complaint unsealed today, Walton has been employed as a reserve Sheriff’s Deputy at the Franklin County Sheriff’s Office since 2004, where he works as a jail officer. Walton has previously been employed by the Union County Sheriff’s Office as a reserve deputy and jail officer. Prior to that position, Walton was employed by the Richmond Police Department and served as a deputy marshal for the Laurel Police Department.
In 2011, federal law enforcement became aware of an individual allegedly sending images and videos of child pornography through an AOL email account. This account was shut down by AOL after a complaint was registered. A second email account was discovered by federal agents while investigating a sexual offender, who had exchanged child pornography with the account in question. These two email accounts, along with an additional account known to law enforcement agents, have been allegedly traced to Walton. This includes an account that was allegedly accessed repeatedly from the Franklin County Security Center.
As a result of this investigation, federal agents served a search warrant at Walton’s home on Friday, August 16. During the search, agents allegedly located a laptop, as well as a thumb drive that was hidden behind a mirror in the main bedroom of Walton’s home. That thumb drive was allegedly found to contain a number of pornographic images and videos depicting a minor female. In addition, agents found a small video camera hidden in a can in the living room. This camera was found to contain additional explicit materials showing a minor female.
According to Senior Litigation Counsel Steven D. DeBrota and Assistant U.S. Attorney Zachary A. Myers, who are prosecuting the case for the government, Walton faces decades in federal prison if he is found guilty of child exploitation. In addition, Walton also could be sentenced to years of supervised release, and lifetime registration as a sexual predator.
This arrest comes as Hogsett has announced a comprehensive crackdown on child exploitation in Indiana. Just last year, he launched “Operation Community Watch,” which will allow prosecutors and investigators to use cutting-edge techniques to identify and charge people in Hoosier communities who are engaged in the receipt and trafficking of child pornography materials. In this case, these efforts were facilitated by Federal Bureau of Investigation, the Indiana State Police, the Indianapolis Metropolitan Police Department, as well as the Franklin County Sheriff’s Department.
This case was brought as part of Project Safe Childhood, a larger nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Hogsett pointed out that in the last Project Safe Childhood reporting year, the Office prosecuted 52 defendants, an increase of 37% over the prior year, and 49 defendants were convicted and sentenced. These are all-time records for the Office. The Office conviction rate for PSC cases was 100%, a level it has been at since 1991.
The greatest measure of the PSC program’s impact, however, is the identification and rescue of child victims of sexual exploitation and abuse. Over the last year, the U.S. Attorney’s Office successfully identified more than 120 child victims, including minors in Indiana, numerous places in the United States, Canada, Switzerland, and other countries around the world.
Led nationally by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Informations, indictments, and criminal complaints are only a charge and are not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Guardian of Justice AwardRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two Kansas City, Mo., police detectives and an FBI agent have received the Guardian of Justice Award.
Kansas City Police Department Detectives Greg Harmon and Rebecca Mills and FBI Special Agent Jeffrey Atwood were honored on Thursday, Aug. 15, 2013, during the 11th Annual LECC Training Seminar in Springfield, Mo.
Greg Harmon & Rebecca Mills
Harmon and Mills were recognized for their singular work in the successful investigation and prosecution of Corey McKinney. McKinney pleaded guilty during the second day of his federal jury trial on Jan. 16, 2013, to child sex trafficking and producing child pornography. A sentencing hearing is scheduled for Sept. 10, 2013. Under federal statutes McKinney is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life in federal prison without parole.
The McKinney case originated from a walk-in complaint by a Kansas City man who said he was the victim of an extortion attempt by McKinney, who was threatening this man for having sex with his “16-year-old sister.” Harmon and Mills interviewed this man, and in the process uncovered an unseemly story involving an illicit Internet meet-up, surreptitious recordings of sexual activity, his serial exploitation of a minor, all wrapped up in an extortionate blackmail scheme. Their proactive work in this case enabled them to quickly identify McKinney, who was arrested in the midst of collecting money as part of his ill-conceived scheme.
These detectives collaborated with various law enforcement agencies (including the FBI and the Jackson County Prosecutor’s Office) and numerous private entities to ensure that federal prosecutors received all necessary and helpful evidence to build and prosecute this case. Harmon and Mills were wholly professional and diligent as this case progressed. At trial, Harmon served as the lead case agent and Mills provided expert testimony on human trafficking and victim issues that assisted the jury in putting the evidence introduced at trial within a human trafficking context.
This investigation and prosecution consumed much of their time and resources, but, despite this fact, they continued to generate a number of cases worthy of federal prosecution during the pendency of this prosecution.
Harmon and Mills have worked closely with the U.S. Attorney’s Office to develop human trafficking investigations. Their past and ongoing work has led to numerous successful prosecutions, many originating out of Operation Guardian Angel, a proactive human trafficking initiative that has been adapted as a model replicated numerous times in various districts across the nation.
Jeffrey Atwood
Atwood was recognized for his work investigating a cold case that led to the successful prosecution of a violent offender. Mark Joseph Morris pleaded guilty to some robbery charges contained in a federal indictment and was convicted at trial on the remaining charges (of using firearms to commit the robberies) on March 22, 2013. Morris faces at least 55 years in prison for using firearms to rob two Springfield banks and a drugstore in November 2008.
Atwood focused the investigation of the unsolved armed robberies in a new direction, laying the groundwork for the firearms convictions even though no gun was recovered in the robberies and no positive identification had been made of the suspect. Morris, the master of disguise, had terrorized two Springfield banks, a drug store, two grocery stores and left scores of victims traumatized from his gun wielding antics.
Atwood relied upon old-fashioned police work, which meant he got from behind his desk and pounded the pavement. He spoke with the Springfield police investigators to see if anything was missing out of their reports. He visited the witnesses and had them go over their statements to ensure accuracy, and asked questions that previous investigators did not ask. He crawled over crime scenes again to ponder motive and escape routes. Atwood repeatedly viewed the surveillance video until discovering the most miniscule of details that linked the suspect to two of the robberies.
During the trial, Atwood worked very closely with detectives from the Springfield Police Department to develop additional evidence, including statements that greatly assisted in the cross examination of the defendant. Whether he was asked to speak to witnesses, to explore a crime scene again, or to make the evidence available for the defense, Atwood worked tirelessly to fulfill that request. During trial, he expertly handled the audio-visual component of the bank and consumer store video presentation. His unwavering enthusiasm was an encouragement throughout the criminal prosecution process.
Ultimately, Atwood’s work led to the removal of a very dangerous, repeat felon from our community. Even though Morris had numerous violent felonies on his record, these federal convictions will ensure that he will not victimize any community again.
Atwood started his law enforcement career as street cop in the Kansas City, Mo., Police Department, rising through the ranks to become a detective before joining the FBI.
Guardian of Justice Award
The annual Guardian of Justice Award recognizes a state or local officer as well as a federal agent for investigative excellence, selfless collaboration, tireless trial support, commendable diligence and professionalism, and noteworthy assistance to prosecution. The prestigious law enforcement award is presented by the U.S. Attorney’s Office each year during the law enforcement training conference.Gang Member Is Fourteenth to Plead Guilty in Dodge City Racketeering CaseRead the Press Release
WICHITA, KAN. – A Dodge City gang member has pleaded guilty to a conspiracy charge in a federal racketeering case, U.S. Attorney Barry Grissom said today.
Eusebio Sierra-Medrano, 33, Dodge City, Kan., pleaded guilty to one count of conspiracy to commit crimes under the federal Racketeering Influenced and Corrupt Organizations Act. In his plea, he admitted that from 2008 to May 2012 he participated in a criminal conspiracy in Dodge City involving members of the Norteno street gang and their affiliates, the Diablos Viejos and Los Carnales Chingones. Sierra-Medrano was a member of the Diablos Viejos.
On March 29, 2010, he and fellow gang members assaulted a Sureno gang member named Jose Arreola. They encountered Arreola at a convenience store at 400 E. Wyatt Earp in Dodge City. After a fellow gang member attacked Arreola with the handle of a windshield wiper, Sierra-Medrano joined in with a knife. He stabbed Arreola multiple times. The stabbing was in retaliation for the prior stabbing of two Nortenos.
On the same day as the stabbing, Sierra-Medrano was found to be in possession with intent to distribute cocaine. In his plea, he admitted that during that time he was distributing cocaine he obtained from California. The stabbing and the drug trafficking helped him to maintain his position with the Norteno enterprise.
Sentencing is set for Nov. 4. He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000.
Sierra-Medrano was one of 23 Norteno members indicted in May 2012. It was only the second time a federal RICO Act indictment (Racketeer Influenced and Corrupt Organizations Act) had been filed in Kansas. Sierra-Medrano is the fourteenth defendant in the case to enter a guilty plea.Grissom commended the Dodge City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ford County Sheriff’s Office, the Kansas Bureau of Investigation, Assistant U.S. Attorney Lanny Welch and Assistant U.S. Attorney Aaron Smith for their work on the case.
Former Program Manager Pleads Guilty to Federal Charge in Connection with Diesel Fuel Theft at Military FacilityRead the Press Release
Matthew Brock illegally used a government-issued credit card to purchase thousands worth of fuel; sold an associate diesel belonging to Guard facility in Red House
HUNTINGTON, W.Va. – A former program manager pleaded guilty today in federal court in connection with a theft scheme that took thousands of dollars’ worth of diesel fuel from a military facility located in Putnam County, announced U.S. Attorney Booth Goodwin. Matthew Todd Brock, 42, of Hurricane, W.Va., pleaded guilty to theft of government property before United States District Judge Robert C. Chambers in Huntington.
Brock, who was hired in September 2010 as the program manager for the Naval Special Warfare Command (NSW) program in Red House, began using a government-issued credit card to make illegal fuel purchases. Beginning in February 2012 and continuing through March 2012, Brock illegally used the credit card to put fuel into his personal vehicle and family members’ vehicles. In total, Brock made approximately $5,619 in illegal fuel purchases using the credit card.
Additionally, beginning in May 2012, Brock began stealing diesel fuel from the NSW Ops Stock program in Red House and later sold the fuel to an acquaintance for $1 per gallon. Brock sold the stolen diesel fuel once or twice per week for approximately eight months. Over that time period, Brock illegally sold a total of nearly $15,000 in diesel fuel that he stole from the facility.
The NSW, a component of the U.S. Navy, contracted with the West Virginia National Guard to run its Operational Stock (Ops Stock) program to store and maintain equipment for naval operations at the Guard’s Combined Support Maintenance Shop facility in Red House. The equipment maintained by the National Guard as part of the Ops Stock program used diesel fuel.
In a related matter, Charles Raymond Franklin, 59, of Red House, W.Va., was charged in July in a three-count indictment for conspiring to steal and receive public property and conspiring to receive stolen government property. Franklin is alleged to have knowingly received approximately 196 gallons of diesel fuel that was stolen from the National Guard’s Combined Support Maintenance Shop on February 15, 2013.
Franklin faces up to five years on the receiving stolen property charge and up to 10 years in prison on each charge of conspiring to receive stolen government property, if convicted. Franklin also faces a $250,000 fine on each count.
Brock faces up to 20 years in federal prison and a $500,000 fine when he is sentenced on November 18, 2013.
The investigation was conducted by the FBI. Assistant United States Attorney Blaire Malkin is in charge of the prosecution.
Former Oregon Resident Pleads Guilty to FraudRead the Press Release
PORTLAND, Ore. – A former resident of Pacific City pleaded guilty in federal court today to stealing more than $70,000 from the Social Security Administration (SSA), the Oregon Department of Human Services (DHS), and Medicaid. Peter C. Byrne, 87, admitted before U.S. District Court Judge Garr M. King that between 1992 and 2012, he concealed from SSA and DHS his travels outside the United States and his compensation, while receiving Supplemental Security Income (SSI) and food stamps. Sentencing is scheduled for December 3, 2013, at 10:30 a.m.
According to documents filed by the government and Byrne’s admissions today, Byrne began receiving SSI in 1990 and was required to report to SSA certain travel outside the United States, as well as his income and compensation. Between 1992 and 2012, Byrne traveled outside the U.S. for more than 30 days at least 15 times, on some occasions remaining outside the U.S. for more than four months. Between 2009 and 2012, Byrne also maintained bank accounts with Barclays of England and Wells Fargo where he held more than $85,000 at one time, and failed to disclose these bank accounts to SSA and DHS. When Byrne was questioned by SSA and investigators in 2012, he failed to disclose all of his travels and assets. When SSA asked to see his passport, Byrne advised that he had accidentally destroyed his passport by running it through the washing machine.
The plea agreement requires Byrne to pay restitution to SSA, DHS, and Health and Human Services. Byrne has deposited $25,000 with the court to be applied towards restitution immediately following sentencing.
The case was investigated by the Social Security Administration Office of Inspector General, Office of Investigations. It is being prosecuted by Special Assistant United States Attorney Helen L. Cooper, as part of a partnership venture between the Social Security Administration Office of General Counsel and the United States Attorney’s Office.
Former LIRR Employee Pleads Guilty in Manhattan Federal Court in Connection with Disability Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that DONALD ALEVAS, a former director of shop equipment planning for the Long Island Railroad (“LIRR”), pled guilty today in Manhattan federal court to charges related to the allegedly massive fraud scheme in which LIRR workers claimed to be disabled upon early retirement so that they could receive disability benefits to which they were not entitled. ALEVAS pled guilty before U.S. Magistrate Judge Michael H. Dolinger. He is the 26th defendant to plead guilty in the case. Three other defendants were convicted after a jury trial in August 2013.
According to the Complaint, the Superseding Indictments, the Superseding Informations, and statements made in other public filings and court proceedings:
The Railroad Retirement Board (“RRB”) is an independent U.S. agency that administers benefit programs, including disability benefits, for the nation’s railroad workers and their families. A unique LIRR contract allowed employees to retire at the relatively young age of 50 – the age of eligibility has since changed to 55 – if they had been employed by the LIRR for at least 20 years. Eligible employees are entitled to receive an LIRR pension, which is a portion of the full retirement payment for which they are eligible at 65. In addition, at full retirement age (between age 60 and age 65 depending on years of service), they are eligible to receive an RRB retirement pension. For LIRR workers who retired at 50 with only an LIRR pension, they would receive less than their prior salary and substantially lower pension payments than those to which they would be entitled at full retirement age. However, LIRR employees who retired and claimed disability could receive a disability payment from the RRB on top of their LIRR pension, regardless of age. A retiree’s LIRR pension, in combination with RRB disability payments, can be roughly equivalent to the base salary earned during his or her career.
Hundreds of LIRR employees have allegedly exploited the overlap between the LIRR pension and the RRB disability program by pre-planning the date on which they would falsely declare themselves disabled so that it would coincide with their projected retirement date. These false statements, made under penalty of prosecution in disability applications, allowed LIRR employees to retire as early as age 50 with an LIRR pension, supplemented by the fraudulently obtained RRB disability annuity. From 1995 through 2011, more than 75% of LIRR employees stopped working and began receiving RRB disability benefits, whereas during this same period, only 25% of retiring Metro-North employees stopped working and began receiving RRB disability benefits. During the period 2004 through 2008, only three doctors were responsible for approximately 86% of the disability claims submitted by LIRR retirees. Of these three doctors, one is deceased; one, Dr. Peter J. Ajemian, pled guilty and was sentenced in May 2013 to eight years in prison; and the other, Dr. Peter Lesniewski, was convicted after a jury trial in August 2013 and awaits sentencing.
ALEVAS, a LIRR retiree who received disability benefits, made materially false statements about his ability to perform certain daily activities in his disability application submitted to the RRB.
ALEVAS, 54, of Patchogue, New York, pled guilty to one count of making false statements. He faces a maximum sentence of five years in prison and is scheduled to be sentenced by U.S. District Judge Kimba M. Wood on January 7, 2014, at 11:00 a.m.
Thirty-three people have been charged in connection with the LIRR disability fraud scheme; 26 have pled guilty and three have been convicted following trial. Of the 26 defendants who have pled guilty, four have been sentenced: Dr. Peter J. Ajemian received a sentence of eight years in prison; William McAleavey, a former conductor for the LIRR, received a sentence of 30 months in prison; Gary Satin, a former electrician for the LIRR, received a sentence of 20 months in prison; and Maria Rusin, who was Dr. Ajemian’s office manager, received a sentence of probation. The charges against the remaining defendants, Kevin Neville, Frederick Catalano, Jr., Thomas Coscetta, and Michael Costanza, are merely allegations, and they are all presumed innocent unless and until proven guilty.
Mr. Bharara praised the work of the RRB Office of the Inspector General, the Federal Bureau of Investigation, and the Office of the Inspector General of the Metropolitan Transportation Authority for their outstanding work in the investigation, which he noted is ongoing. He also acknowledged the previous investigation conducted by the New York State Attorney General’s Office into these pension fraud issues.
The case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Nicole Friedlander, Tatiana Martins, Edward Imperatore, Justin Weddle, and Daniel Tehrani are in charge of the prosecution.
U.S. v. Donald Alevas S6 Information
Former Ft. Lauderdale Executive Sentenced to 15 Years for Money Laundering and Obstruction of Justice in Connection with Mutual Benefits Corporation FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that on August 16, 2013, U.S. District Judge Kathleen M. Williams sentenced defendant Steven Steiner, a/k/a “Steven Steinger,” 61, to 15 years in prison (180 months) in connection with money laundering and obstruction of justice related to the use and concealment of more than $15 million dollars in proceeds derived from the Mutual Benefits Corporation (MBC) fraud.
Previously, on February 28, 2013, a federal jury in Miami convicted Steiner on 19 of 54 counts, including conspiracy to commit money laundering offenses, money laundering, conspiracy to commit offenses against the United States, and various obstruction of justice offenses. Steiner also was ordered to serve three-years supervised release upon the expiration of his prison sentence relating to Steiner’s participation in a scheme to launder and conceal proceeds from the MBC fraud, and Steiner’s obstruction of United States Securities and Exchange Commission (SEC), the court-appointed receiver for MBC, and the United States District Court, in their efforts to secure and recover assets traceable to the fraud. The jury acquitted Steiner’s co-defendant Henry Fecker, III, on all charges.
At trial the United States presented evidence that from approximately 1994 to May 2004, MBC purchased life insurance policies from persons suffering from AIDS, chronically ill, and elderly persons. Having purchased the life insurance policies, MBC sold fractionalized interests in the death benefits, known as “viatical settlements,” to approximately 30,000 investors. In promotional materials, MBC told investors that its viatical settlements offered a fixed rate of return with low risk, and that investors’ principal and returns were paid by the insurance companies. Evidence at trial established that MBC misrepresented various material facts relating to its viatical settlements, including: the estimated life expectancies of the insured persons, MBC’s title to certain life insurance policies, the risks associated with certain policies, the payment of premiums, and the source of funds used to pay investors. Witnesses testified that new investor money was used to pay premiums on life insurance policies purchased by earlier investors and to pay investors who requested their money back. The evidence established that as the fraud continued, investor money was required to prevent the MBC Ponzi-scheme from collapsing. Ultimately, investors lost more than $750 million.
Steiner was a founder, principal, and Vice President of MBC, and he received more than $15 million in proceeds from the MBC fraud through two shell corporations that he controlled: Camden Consulting, Inc., and SKS Consulting, Inc.
In May 2004, the SEC filed a civil enforcement action in the United States District Court for the Southern District of Florida, SEC v. Mutual Benefits Corp., et al., Case No. 04-60573-CIV-MORENO (the “SEC Fraud Action”), against MBC and various “relief defendants,” including Steiner’s shell corporations. On May 4, 2004, United States District Judge Federico A. Moreno entered an order appointing Coral Gables attorney Roberto Martinez as the receiver for MBC, with the mandate to identify, secure, trace, and recover the assets of MBC.
As the jury found, following the closure of MBC and the appointment of the MBC receiver, Steiner engaged in money laundering transactions designed to conceal the source, location, ownership, and control of his proceeds from the MBC fraud. At the same time, Steiner acted to obstruct the SEC, the MBC receiver, and the United States District Court.
Evidence at trial disclosed that in 2006 and early 2007, Steiner submitted false and misleading financial disclosure documents to the SEC to persuade the SEC to agree to a favorable settlement of the SEC claims against him and his shell corporations Camden Consulting and SKS Consulting, in the SEC Fraud Action. Based upon Steiner’s fraudulent financial disclosure, the SEC agreed to a reduced penalty of $3.9 million, and on April 10, 2007, the District Court entered a Final Judgment in the SEC Fraud Action ordering Steiner, SKS and Camden to pay $3.9 million to the court-appointed receiver for MBC. Evidence at trial established that Steiner acted to thwart the MBC receiver’s efforts to trace and recover MBC assets and recover on the final judgment. Among other things, Steiner repeatedly lied under oath during depositions and physically concealed documents, including checks representing proceeds from the MBC fraud.
Steiner is currently awaiting trial in two related cases in the Southern District of Florida. In United States v. Joel Steinger, et al., Case No. 08-21158-CR-Scola, Steiner and co-defendants Joel Steinger and Anthony Livoti are charged with conspiracy to commit mail and wire fraud and money laundering, in relation to the MBC fraud scheme. In United States v. Joel Steinger et al., Case No. 12-20123-CR-Rosenbaum, Steiner, Joel Steinger, and Henry Fecker III are charged with engaging in a multi-million dollar scheme to defraud insurance companies.
Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. This case was prosecuted by Assistant United States Attorneys Jerrob Duffy and Dwayne E. Williams.
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.
Former Franklin, Tennessee Business Owner Sentenced to 31 Years in Prison for Fraud SchemeRead the Press Release
Richard Olive Also Ordered to Pay Over $5.9 Million in Restitution to 190 Victims
Richard Olive, 49, of Vero Beach, Florida, formerly of Nashville, was sentenced today to serve 31 years in prison and ordered to pay $5,992,181.24 in restitution to approximately 190 victims for crimes related to his operation of National Foundation of America (“NFOA”), announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee. Olive was convicted by a federal jury on March 7, 2013, on charges of mail fraud, wire fraud, and money laundering.
“The sentence imposed by the Court today should send a strong message to those who would attempt to engage in any scheme sophisticated or otherwise, which may be designed to defraud elderly persons and others who are particularly vulnerable,” said Acting U.S. Attorney, David Rivera. “The U.S. Attorney’s Office and our law enforcement partners simply will not stand for such schemes to continue and will devote whatever resources are necessary to protect the elderly from such financial predators and bring them to justice.”
The evidence at trial showed that from January 2006 through May 2007, Olive represented that NFOA, which was headquartered in Franklin, Tennessee, was a charitable organization that had been recognized by the IRS as a 501(c)(3) organization. During the scheme, Olive solicited assets, including annuities and real estate, of over $30 million from elderly individuals and promised that, in return, the individuals would receive an “installment bargain contract” issued by NFOA that would give them a “guaranteed payout over a guaranteed period of time,” as well as a “generous tax deduction.”
Olive promised clients that in exchange for an NFOA “installment bargain contract,” they would receive a fixed payment for a number of years. However, the evidence at trial demonstrated that NFOA never had sufficient assets to meet these obligations. The majority of assets which Olive solicited were annuities, which incurred high penalties on their surrender. When Olive received these annuities, he surrendered them, incurring penalties, so that he could access the cash. He then used the cash to fund his lavish lifestyle, including paying for $153,000 of personal expenses on credit cards, funding a trip to New Orleans on a private jet with his family, settling a lawsuit against him for $250,000, and purchasing several properties with cash, including a $690,000 condominium in Las Vegas.
"Illegal activity involving the investment industry has brought financial ruin to many Americans,” stated Christopher A. Henry, Special Agent in Charge of the IRS-Criminal Investigation. “IRS-Criminal Investigation is committed to unraveling complex financial transactions and money laundering schemes where individuals attempt to conceal the true source of their money. We are proud to work with our law enforcement partners by lending our expertise in these complex financial investigations.”
“Today’s sentence sends a strong message to those who would use investment schemes to devastate the financial standing of innocent victims and their families,” said A. Todd McCall, Special Agent-in-Charge of the Memphis Division of the Federal Bureau of Investigation. “It is especially cruel when frauds like these target senior citizens. In today’s challenging economic conditions, the FBI and its law enforcement partners will continue to target those who abuse vulnerable citizens in our community.”
Other evidence at trial showed that Olive made a series of misrepresentations about NFOA during the scheme. For example, in February 2006, just days after NFOA had been incorporated, he sent fabricated financial statements to a financial advisor that falsely represented NFOA had been in operation in 2003 and 2004 and held significant assets. In May 2006 Olive represented to a different financial advisor that the company had $35 million in assets, although the charitable tax returns he filed with the State of Tennessee indicated that from its inception to June 2006, NFOA had received only $2.8 million in revenue.Although Olive held NFOA out to be a “charitable organization,” he donated to charity only approximately $108,000 – less than ½ of 1% of the $23.6 million NFOA received.
Further, throughout the scheme, Olive repeatedly represented that his organization had been recognized by the IRS under Section 501(c)(3) of the Internal Revenue Code, although the evidence at trial demonstrated that this statement was false. Olive continued to make this false representation even after his attorney told him on at least two occasions to stop.
Five states issued cease-and-desist orders during the scheme, based in part on their findings that Olive was misrepresenting NFOA’s 501(c)(3) status, and ordered him to stop selling NFOA’s product in those states. The company was seized and ultimately liquidated by the Tennessee Department of Commerce and Insurance in May 2007.
At sentencing, the District Court found and applied sentencing enhancements based on the large loss amount, Olive’s leadership role, the fact that he misrepresented that he was acting on behalf of a charitable organization, the sophisticated nature of the scheme, and the large number of vulnerable victims. Olive has remained in federal custody since the jury’s verdict on March 7, 2013.
The case was investigated by the FBI and the IRS– Criminal Investigation Division. Assistant United States Attorneys Kathryn B. Ward and Darryl A. Stewart represented the government.
Former Country Club Hills Police Chief Pleads Guilty to Obstruction of JusticeRead the Press Release
SPRINGFIELD, Ill. – Regina R. Evans, former police chief for Country Club Hills., Ill., appeared in federal court in Springfield again today to enter pleas of guilty to obstruction of justice, witness tampering, and conspiracy to obstruct justice and witness tampering in the federal investigation of her role in a grant fraud scheme. Evans, 50, previously pled guilty, on June 17, 2013, to charges of fraud related to a $1.25 million state grant awarded in 2009 to We Are Our Brother’s Keeper, a not-for-profit program that Evans owned with her husband, Ronald W. Evans, Jr. Ronald Evans has also pleaded guilty to the fraud scheme and is scheduled to be sentenced on Dec. 2, 2013.
Regina Evans appeared this morning before U.S. District Judge Sue E. Myerscough and entered an open plea of guilty to one count each of obstruction of justice, witness tampering, and conspiracy to obstruct justice and witness tampering. Sentencing in this case is scheduled on Oct. 15, 2013, the same date of sentencing in Regina Evans’ fraud case. Regina Evans remains in the custody of the U.S. Marshals Service.
Regina Evans was charged in this case in March 2013, along with her brother, Ricky McCoy, 52, of Chicago. The next court date for the case against McCoy is scheduled for status conference on Aug. 28, 2013. In addition to the charges with his sister, McCoy is also charged with three counts of money laundering. According to the indictment, McCoy assisted the Evanses in the management of We Are Our Brother’s Keeper.
In today’s court hearing and according to court documents, Regina Evans conspired with others to have a person identified as Individual A create a false story for law enforcement, the grand jury, and as a witness in a court proceeding, to falsely represent that the individual performed actual work under the grant awarded to We Are Our Brother’s Keeper. In fact, Individual A performed no such work and the checks issued to Individual A were merely a means to conceal grant funds converted to cash and returned to the benefit of the Evanses. The false story created for Individual A falsely represented that Individual A worked as a teacher under the grant, and instructed students on “soft skills,” to include manners, how to dress for an interview, how to groom themselves, how to behave in interviews and how to write a resume, when in fact, Regina Evans knew the story was false and intended to obstruct the investigation of the grant fraud.
Members of the public are reminded that the indictment charging McCoy remains as merely an accusation; the defendant is presumed innocent unless proven guilty.Assistant U.S. Attorney Timothy A. Bass is prosecuting the case on behalf of the U.S. Attorney’s Office for the Central District of Illinois. The ongoing investigation is being conducted by participating agencies of the Central District of Illinois’ U.S. Attorney’s Office’s Public Corruption Task Force including the U.S. Postal Inspection Service, Chicago Division; the Internal Revenue Service Criminal Investigations; and, the Illinois Secretary of State Office of Inspector General. Individuals who wish to provide information to law enforcement regarding matters of public corruption are urged to call the U.S. Attorney’s Office at 217-492-4450.
The maximum statutory penalty for each count of the offenses charged is as follows: obstruction of justice – up to 10 years in prison; witness tampering – up to 20 years in prison; conspiracy to obstruct justice and witness tampering – up to five years in prison; and for money laundering - up to 20 years in prison. Regina Evans faces additional penalties of up to 10 years in prison to be served consecutive to any sentence ordered for the underlying offenses because the offenses were committed while the defendant was on pre-trial release.
Ferriday Funeral Home Director Sentenced to 70 Months in Prison for Receiving Child PornographyRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced today that funeral home director John Casey Young, 45, of Vidalia, La., was sentenced before U.S. District Judge Dee D. Drell to 70 months in prison and 9 years of supervised release for knowingly receiving child pornography on his computer. He was also ordered to pay a $16, 750 fine and will be required to register as a sex offender.
According to evidence presented at the guilty plea, the FBI discovered that Young used his work computer to search for child pornography on the internet. Young pleaded guilty on March 15, 2013.
“Mr. Young’s actions furthered the abuse of children and contributed to a worldwide trade of such material,” Finley stated. “Our office will continue to prosecute cases such as this as part of our ongoing effort to protect child victims.”
“This investigation should serve as yet another reminder to the community of the strong and continuous commitment of the FBI and its law enforcement partners to expend all our available resources to protect children from such despicable conduct,” said Michael J. Anderson, FBI Special Agent in Charge, New Orleans Division.
The FBI and the Rapides Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Earl M. Campbell and John Luke Walker prosecuted the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice launched nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Those concerned may leave also tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Alexandria FBI office number is (318) 443-5097.
Federal Court Permanently Bars Indiana Instant Tax Service Franchisee from Tax PreparationRead the Press Release
A federal court in Indianapolis permanently barred David Franklin and his company, Instant Refund Tax Service (IRTS), from preparing tax returns and from operating a tax-preparation business, the Justice Department announced today. The government alleged that IRTS, which Franklin wholly owns, operated as a franchisee of Instant Tax Service, a large national tax-preparation franchisor operated by ITS Financial LLC, based in Dayton, Ohio. The order follows an earlier preliminary injunction against the defendants. In a separate case, a federal court in Ohio preliminarily enjoined the Dayton-based franchisor last November. The defendants in both cases consented to entry of the preliminary injunctions without admitting the allegations against them.
The Indiana permanent injunction order was signed by Judge Sarah Evans Barker of the U.S. District Court for the Southern District of Indiana. The government complaint in the case alleged that Franklin owned and operated 22 Instant Tax Service locations that prepared and filed false and fraudulent income tax returns for customers, fabricated income for phony businesses to obtain larger tax credits, forged W-2 forms, filed returns improperly based on paycheck stubs rather than W-2 forms, claimed false education tax credits and reported false filing statuses for customers. The government also accused Franklin’s offices of filing tax returns without customers’ authorization and selling false and deceptive loan products to customers.
The case is one of five similar civil actions that the Justice Department brought against Instant Tax Service franchises and the corporate franchisor, ITS Financial, which claims to be the fourth-largest tax-preparation firm in the nation. The court recently conducted a two-week trial in the Ohio case, in connection with the government’s request to permanently enjoin the Instant Tax Service franchisor. A decision has not yet been issued.
For more information on the earlier preliminary injunction against Franklin and IRTS visit www.justice.gov/tax/2013/txdv13129.htm and for more information on actions brought against the Instant Tax Service franchise visit www.justice.gov/tax/2012/txdv121304.htm. In the past decade, the Justice Department’s Tax Division has obtained hundreds of injunctions to stop tax-fraud promoters. More information about those cases is available on the Justice Department website.
United States v. David R. Franklin, et al.
Stipulated Order for Permanent Injunction Against David Ray Franklin and Instant Refund Tax Service, Inc. (PDF)Fargo Scrap Metal Dealer Sentenced for Failing to File an Income Tax ReturnRead the Press Release
FARGO – U.S. Attorney Timothy Q. Purdon announced that on Aug. 19, 2013, Hamzo Omerovic of Fargo, N.D., was sentenced before U.S. Magistrate Judge Karen K. Klein for willfully failing to file an income tax return for calendar year 2006. Omerovic pleaded guilty to the Class A Misdemeanor on March 25, 2013.
U.S. Attorney Timothy Q. Purdon said, “Failure to file tax returns is a serious crime which can result in prosecutions like this one. Those who criminally evade their duty to file and pay federal taxes unfairly shift their tax burden on to the backs of hard-working Americans who comply with the tax laws.”
"The term voluntary compliance means that each of us is responsible for filing a tax return when required and for paying the correct amount of tax," according to Special Agent in Charge Kelly R. Jackson of the St. Paul Field Office IRS Criminal Investigation. "That responsibility should not be taken lightly. Tax crimes have erroneously been referred to as victimless, but that position could not be more wrong since we all end up paying when someone attempts to evade our tax system."
Judge Klein sentenced Omerovic to five years of probation under the supervision of the U.S. Probation Office, including standard and special conditions of probation. Omerovic was ordered to pay restitution to the United States as determined pursuant to a civil tax audit for tax years 2006, 2007, and 2008. The audit will be conducted by the examination division of the Internal Revenue Service (IRS). Omerovic was also ordered to pay a $25 special assessment.Omerovic, 27, a self-employed scrap metal dealer, in 2006 purchased and obtained scrap metal in Fargo and the surrounding area, which he then sold to a number of scrap metal dealers, primarily in North Dakota and Minnesota. The investigation conducted by the IRS - Criminal Investigation Division, showed that Omerovic’s gross receipts for the year totaled in excess of $152,000, with an estimated tax loss, for sentencing purposes, of more than $30,000.
Omerovic admitted, in the plea agreement and in court, that he had willfully failed to file a 2006 income tax return with the IRS, even though he had earned sufficient gross income and knew he was required to file a return no later than April 17, 2007.
The case was investigated by the IRS - Criminal Investigation Division.
Assistant U.S. Attorney Scott S. Schneider is prosecuting the case.
Enoch B. Morelock AwardRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that Sgt. Shannon Jeffries, an investigator with the Callaway County, Mo., Sheriff’s Department, has received the 2013 Enoch B. Morelock Award.
The Enoch B. Morelock Award is an annual recognition of outstanding moral character, service to law enforcement and service to the community. The prestigious law enforcement award, presented annually by the U.S. Attorney’s Office, is named in honor of Sullivan County Sheriff Enoch B. Morelock, who was the first recorded line of duty death in the Western District of Missouri on Dec. 19, 1847.
Jeffries, coordinator of MUSTANG (the Mid-Missouri Unified Strike Team and Narcotics Group), was honored for his commitment to public service both on and off duty during the 11th Annual LECC Training Seminar in Springfield, Mo., on Thursday, Aug. 15, 2013.
Jeffries has served as the coordinator for MUSTANG for three years, a MUSTANG narcotics officer for 12 years and Sergeant/Investigator for the Callaway County Sheriff's Department for 17 years. He also serves as the Certified Firearms Instructor and Certified Active Shooter Instructor for the sheriff's department. The MUSTANG Drug Task Force Board can attest to the excellent statistics of the task force he coordinates, his display of leadership, honorable moral character and unrelenting drive to serve and give back to his community and department in his duties assigned, which are many.
A substantial amount of illicit drugs and currency have been seized and numerous convictions made due to the coordination of the MUSTANG Drug Task Force. MUSTANG includes the sheriff’s departments in Callaway, Cole, and Boone counties, the police departments of Jefferson City, Columbia, Fulton and Boonville and the Missouri State Highway Patrol.
Jeffries unselfishly gives back to the community in other ways by participating in a youth mentor program within the Jefferson City School District, which entails meeting with a grade school child on a weekly basis. He also coaches youth sport programs, is active in the neighborhood watch program and provides informative presentations to area schools and to other law enforcement agencies in order to enhance their knowledge of drugs and public safety.
Today's law enforcement community calls on officers and leaders capable of working well with others, collaboration, exhibiting effective interpersonal communication, innovation, inspiration and the ability to contribute without dominating any task. It is these skills that Jeffries brings to every case/situation and administrative decision he makes. His extraordinary poise and the environment he inspires derive the very best from his officers of the MUSTANG Drug Task Force and colleagues of the sheriff's department.
Enoch B. Morelock Award
Sullivan County Sheriff Enoch B. Morelock was the first recorded line of duty death in the Western District of Missouri on Dec. 19, 1847, in Sullivan County. Sheriff Morelock was shot and killed during a court-ordered sale of the accused=s property. The accused killer, Patrick McIntry, was charged with 1st Degree Murder but was later acquitted. Within a year Mr. McIntry was found shot to death on the banks of a local river.
The annual Enoch B. Morelock Award recognizes individuals with outstanding moral
character, service to law enforcement and to the community outside of law enforcement. Recipients may include officers from local police departments, sheriffs= offices, state agencies, or federal agencies as well as investigators from prosecutors' offices.District Man Sentenced to Nearly 14 Years in PrisonRead the Press Release
For Series of Attacks Against Taxicab Drivers
-He and Others Posed as Passengers at Union Station, Other Places-WASHINGTON - Tony Copeland, 22, of Washington, D.C., has been sentenced to nearly 14 years in prison on charges stemming from a series of attacks against taxicab drivers, U.S. Attorney Ronald C. Machen Jr. announced today.
Copeland pled guilty in May 2013 in the Superior Court of the District of Columbia to one count each of carjacking and robbery. He was sentenced on Aug. 16, 2013 by the Honorable Heidi M. Pasichow to 13 years and 360 days of incarceration.
The charges were filed in a series of cases involving the carjacking, assault, and robbery of taxicab drivers that took place in October and November of 2011. The government alleged that Copeland was the ringleader behind several incidents in which he and others went to the Union Station taxicab line posing as paying customers, soliciting cab fares to the area of 44th Street NE. Once at the destination, Copeland and his accomplices would choke the drivers from behind, or simply demand money. Among the items stolen from the several victims were hundreds of dollars in cash, cell phones, GPS devices, and a Rolex watch.
The carjacking charge stemmed from a crime that took place on Nov. 14, 2011. That day, at about 3:45 p.m., Copeland and three others solicited a taxicab from Union Station. Copeland asked the driver to take them to the 4600 block of Grant Street NE. When the driver arrived at the destination, Copeland reached around from the rear driver’s side seat and choked the driver from behind by placing his arms around the driver’s throat. Meanwhile, the two other individuals went through the driver’s belongings, stealing cash, credit cards, a cell phone, and a blank check filled out in the amount of $180. Copeland and the others ordered the cabdriver out of the taxi. One of the individuals, a juvenile, got into the driver’s seat and drove away with the cab. Copeland and the remaining individual ran from the scene. The victim was able to flag down a neighbor, who gave the victim a cellphone to call 911. The taxicab was recovered days later by the Metropolitan Police Department (MPD), in the area near Copeland’s residence.
The robbery charge stemmed from an incident on Nov. 20, 2011, this time starting at the Greyhound bus station on First Street NE. Copeland and another accomplice arrived at the station at about 11:30 a.m. and stood outside waiting for a cab. They solicited a taxicab ride and asked the driver to take them to the area of the 4600 block of Brooks Street NE. Once there, the accomplice put the driver in a choke-hold. Copeland and the accomplice stole about $100 in cash, a cellphone, car keys and a brown leather jacket in the attack.
In announcing the sentence, U.S. Attorney Machen praised the work of those who investigated the case from the Metropolitan Police Department. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Antoinette Sakamsa and Tony Griffith, Victim/Witness Advocate Jim Brennan, and Assistant U.S. Attorney Richard E. DiZinno, who prosecuted the matter.
13-287District Man Pleads Guilty to Sexually Attacking 9-Year-Old GirlRead the Press Release
In Broad Daylight on Northeast Washington Street
-Accosted Girl After She Left a Store-WASHINGTON - Demetrick Littlejohn, 27, of Washington, D.C., has pled guilty to a charge stemming from a recent attack on a nine-year old girl that took place in broad daylight in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced today.
Littlejohn pled guilty on Aug. 16, 2013 in the Superior Court of the District of Columbia to one count of attempted second-degree child sexual abuse in an Alford plea. Under such a plea, the defendant does not admit the allegations but agrees that the government has enough evidence to secure a conviction. Littlejohn is scheduled to be sentenced by the Honorable Russell F. Canan on Oct. 18, 2013. He faces up to five years in prison. In addition, Littlejohn will be required to register as a sex offender for ten years.
According to the government’s factual proffer, on July 26, 2013, at about 1:15 p.m., Littlejohn grabbed a nine-year-old girl who had just come out of a store with her godmother on H Street NE, near Seventh Street. After whispering in her ear that he wanted to have sex with the girl, Littlejohn threw her to the ground and engaged in sexual contact with her until another man pulled him away. Littlejohn walked away but was apprehended and arrested a short time later. Littlejohn told the police that, at the time of the attack, he was high on PCP and recalled none of what had happened. The police also thought Littlejohn was on PCP at the time, and subsequent drug testing of Littlejohn resulted in positive results for PCP.
In announcing the plea, U.S. Attorney Machen praised the work of the members of the Metropolitan Police Department’s Youth Division, who investigated the case. He also expressed appreciation for those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Jason Manuel, Victim/Witness Advocate Lezlie Richardson, and Assistant U.S. Attorney Peter V. Taylor, who investigated and prosecuted the matter.
13-286Consultant to Former New Mexico Secretary of State Sentenced to Ten Years in Prison for Conviction for Theft of Federal “Help America Vote Act” (Hava) Funds and Related Obstruction of Justice and Money Laundering ChargesRead the Press Release
ALBUQUERQUE – This afternoon U.S. District Judge William P. Johnson sentenced Armando C. Gutierrez, 65, of Corpus Christi, Texas, to ten years in federal prison followed by three years of supervised release for his convictions for conspiracy, theft of government property, obstruction of justice and money laundering. Gutierrez was ordered to pay $2,500,483 in restitution to the State of New Mexico, including $746,375 which is to be paid jointly with co-defendant Joseph C. Kupfer, 50, of Rio Rancho, N.M. The court previously entered an order requiring Gutierrez to forfeit $2,500,483, including his interest in his Corpus Christi residence, to the United States.
Gutierrez’s sentence was announced by Acting U.S. Attorney Steven C. Yarbrough, New Mexico Attorney General Gary K. King, Dawn Mertz, Special Agent in Charge of the Phoenix Division of the IRS Criminal Investigation, and Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI.
In announcing the sentence, Acting U.S. Attorney Steven C. Yarbrough said, “Those who do business with the government must be held to the same high standards as government officials. When private citizens enter into contracts to provide services paid for with taxpayers’ monies, they become duty bound to provide honest services for the monies they receive. The sentence imposed on Armando Gutierrez today appropriately penalizes him for violating that duty when he stole more than $2,500,000 in taxpayers’ monies and failed to provide any services for that money. When individuals – whether public officials or government contractors – abuse the public’s trust in this way, they corrupt the system and erode the public’s confidence in their government. I commend the New Mexico Attorney General's Office for initiating the investigation of this case, and the IRS and FBI for undertaking the comprehensive and complex investigation that permits us to hold Mr. Gutierrez responsible for stealing from the public he contracted to serve.”
New Mexico Attorney General Gary King said, “I am pleased that the fruits of our investigation were used to help secure convictions against those who violated the public trust. I highly commend our AG investigators for their hard work in tracking down the misuse of public funds that led to this prosecution. I very much appreciate the cooperation extended to my office by the U.S. Attorney’s Office.”
“A lengthy prison sentence is what happens when individuals steal federal funds then obstruct and conceal their crimes. In this case, Mr. Gutierrez misappropriated voter education funds and used the money for his own benefit. IRS Criminal Investigation, along with our law enforcement partners, will continue to aggressively investigate the theft of taxpayer dollars,” stated IRS Criminal Investigation Special Agent in Charge Dawn Mertz.
“Those of us in government entrusted with taxpayer’s hard earned funds have an obligation to see that money is properly spent,” said FBI Special Agent in Charge Carol K.O. Lee. “In this situation, money that was designated to promote a fundamental right and civic obligation was instead stolen by greedy and unscrupulous individuals more concerned with their own comfort and wealth. The FBI appreciates the efforts of its Special Agents, as well as the IRS Criminal Investigation and the New Mexico Attorney General’s Office, to bring these people to justice.”
This case was initiated in Dec. 2010, by the filing of a three-count indictment charging Kupfer and his wife, Elizabeth D. Kupfer, 51, with failing to report at least $768,333 in taxable income during tax years 2004 through 2006, and evading $286,175 in federal taxes. An eleven-count superseding indictment was filed in July 2011, adding Gutierrez as a defendant and five counts charging Gutierrez and Kupfer with conspiracy and theft of government property relating to federal HAVA funds administered by former New Mexico Secretary of State (NMSOS) Rebecca Vigil-Giron. The superseding indictment also charged Gutierrez with two counts of obstruction of justice relating to a federal audit and investigation into the misuse of federal HAVA funds and one count of laundering unlawfully obtained proceeds, and retained the original tax evasion charges against the Kupfers. At the time of the events described in the superseding indictment, Gutierrez and Kupfer were providing consulting services to the NMSOS under HAVA contracts, and Mrs. Kupfer was an employee of the New Mexico Attorney General’s Office (NMAGO) who had been detailed to work for the NMSOS.
The court severed the three tax evasion counts from the other eight counts in the superseding indictment for purposes of trial, and scheduled separate trials for the Kupfers on the three tax evasion charges (the tax trial), and for Gutierrez and Kupfer on the conspiracy, theft, obstruction of justice and money laundering charges (the HAVA trial).
The tax trial commenced on Aug. 13, 2012, and concluded on Aug. 17, 2012, when the jury returned a guilty verdict against the Kupfers on all three tax evasion charges. The evidence established that, during the years 2004 through 2006, Kupfer received income including federal HAVA funds, from Kupfer Consulting (KC), a business owned and operated by Kupfer, and the Kupfers reported income from KC in their joint personal tax returns. During those three years, the Kupfers received $1,304,421 in revenue from KC but reported only $502,541 in their tax returns. The Kupfers concealed approximately $768,333 in income by providing incomplete information to their tax preparer and thus avoided paying taxes on that money.
The HAVA trial began on Jan. 22, 2012 and ended on Jan. 31, 2013, when the jury returned guilty verdicts against Gutierrez and Kupfer on the conspiracy and theft of government property charges, and against Gutierrez on the obstruction of justice and money laundering charges. In summary, the evidence established that, between April 2003 and Dec. 2006, the NMSOS administered almost $20 million in federal HAVA funds, which were designated for voter education, increasing voter registration, and meeting new standards for election administration and voting systems, through a number of contracts. The contracts included a multi-million dollar contract for voting-related advertising awarded to A. Gutierrez and Associates, Inc. (AGA), which was owned and operated by Gutierrez, and three small contracts for increasing voting accessibility for the disabled that were awarded to KC, Kupfer’s business.
According to the evidence, Gutierrez and Kupfer conspired together to defraud the United States by stealing federal HAVA funds and converting the funds to their own use. Between Sept. 2004 and Oct. 2006, AGA received a total of $6,271,810 in federal HAVA funds from the State of New Mexico but Gutierrez submitted documentation supporting only $3,385,151 in services and costs, resulting in an overpayment of $2,500,483 to which AGA was not entitled. In addition to the three small contracts totaling $70,000 which were awarded to KC by the NMSOS, AGA made nine payments totaling $746,375 in federal HAVA funds to Kupfer between Oct. 2004 and Nov. 2006, which far exceeded the value of any work that Kupfer ever actually performed for AGA under the HAVA contract.
In early 2007, the Election Assistance Commission began an audit into the use of federal HAVA funds by the NMSOS. The AGA HAVA contract immediately became the primary focus of the audit because AGA could not provide documentation to support the federal HAVA funds AGA received. In an effort to provide documentation for the federal HAVA funds AGA received, AGA provided 187 fraudulent invoices totaling $1,137,000 that purported to represent payment to media vendors when in fact AGA never paid any vendors based on these invoices. Subsequent to the EAC audit and in response to federal grand jury subpoenas, AGA and KC submitted fraudulent invoices that purported to support the nine payments totaling $746,375 that KC received from AGA between Oct. 2004 and Nov. 2006. Three of these invoices sought payments in the aggregate amount of $236,605 for production of a poll worker training video that was actually produced by another subcontractor at the cost of $75,000.
On May 14, 2013, Mrs. Kupfer was sentenced on her tax evasion conviction to three years in prison followed by three years of supervised release. Mrs. Kupfer also was ordered to pay $288,339 in restitution to the IRS.
Kupfer’s sentencing hearing is scheduled for Sept. 11, 2013. At sentencing, Kupfer faces a maximum penalty of five years in prison on the conspiracy charge, and a maximum penalty of ten years in prison on each of the theft of government property charges. He also may be fined up to $250,000 on each count of conviction.
The case was investigated by the IRS Criminal Investigation and the Albuquerque office of the FBI, with assistance from the New Mexico Attorney General’s Office. The case was prosecuted by Assistant U.S. Attorneys Tara C. Neda, Jeremy Peña and Cynthia L. Weisman.Citizen of Romania Admits Role in Atm Skimming SchemeRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that IONUT-IULIAN VLAD, 29, a citizen of Romania, pleaded guilty today before United States Magistrate Judge Joan G. Margolis in New Haven to one count of conspiracy to commit bank fraud stemming from his role in an ATM “skimming” scheme.
According to court documents and statements made in court, VLAD and others conspired to install “skimming” devices on automated teller machines (“ATMs”) at Bank of America locations in Connecticut. The devices were able to capture the information encoded on the magnetic strips of bank cards used by ATM customers. The co-conspirators also placed devices on the ATMs that contained hidden pinhole cameras, which recorded the personal identification numbers that bank customers keyed into the ATMs to gain access to their accounts. The co-conspirators used the stolen information captured by the skimming devices and pinhole cameras to create counterfeit bank cards that allowed them to withdraw more than $100,000 in funds from the customers’ accounts.
In February 2013, surveillance video captured VLAD removing skimming devices and pinhole cameras from Bank of America ATMs in Wallingford and Greenwich.
VLAD has been detained since his arrest by the Stamford Police Department on March 2, 2013. At the time of his arrest, VLAD possessed ATM skimming tools and double-sided tape.
VLAD is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton on November 8, 2013, at which time he faces a maximum term of imprisonment of 30 years, a fine of up to $1 million and an order of restitution.
This investigation is being conducted by the Connecticut Financial Crimes Task Force, which includes members of the United States Secret Service, United States Postal Inspection Service, United States Department of State, Bureau of Diplomatic Security, Internal Revenue Service – Criminal Investigation, Connecticut State Police, and the Greenwich, Hartford, Stamford, Shelton and Stratford Police Departments. Acting U.S. Attorney Daly specifically recognized the efforts of the Greenwich and Stamford Police Departments for their assistance in the investigation and prosecution of this matter.
This case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Chinese National Pleads Guilty to Attempting to Illegally Export Aerospace-Grade Carbon Fiber to ChinaRead the Press Release
Today, at the federal courthouse in Brooklyn, New York, Ming Suan Zhang, a citizen of the People’s Republic of China, pled guilty to violating the International Emergency Economic Powers Act by attempting to export massive quantities of aerospace-grade carbon fiber from the United States to China. According to court filings, Zhang was arrested after trying to acquire a sample of the specialized carbon fiber, a high-tech material used frequently in the military, defense and aerospace industries, which is closely regulated by the United States Department of Commerce to combat nuclear proliferation and terrorism.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; James T. Hayes, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York; and Sidney Simon, Special Agent-in-Charge, U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, New York Field Office. The plea took place before United States District Judge Nicholas G. Garaufis.
“Zhang crossed the ocean to obtain massive quantities of restricted American technology for the stated purpose of assisting the Chinese military. He was actively working to circumvent laws that protect our national security by preventing specialized technologies from falling into the wrong hands,” stated U.S. Attorney Lynch. “We will use every tool at our disposal to protect our nation against those who would seek to export valuable defense technology from the United States.” Ms. Lynch expressed her grateful appreciation to the DOC and HSI, which worked closely together to investigate the case and bring the defendant to justice, and noted that the government’s investigation is ongoing.
According to court documents and statements in court today, Zhang came to the attention of federal authorities last year after two Taiwanese accomplices attempted to locate large quantities of the specialized carbon fiber via remote Internet contacts. Zhang told an undercover law enforcement agent that he had an urgent need for the carbon fiber in connection with the scheduled test flight of a Chinese fighter plane. Zhang then arranged a meeting in the United States with an undercover agent to take possession of a carbon fiber sample, which was to be shipped to China and analyzed to verify its authenticity. Zhang was placed under arrest after he arrived for the meeting. The scheme was aimed at obtaining thousands of pounds of the high-grade fiber.
The regulation of carbon fiber falls under the jurisdiction of the Department of Commerce, which reviews and controls the export of certain goods and technology from the United States to foreign countries. In particular, the Commerce Department has placed restrictions on the export of goods and technology that it has determined could make a significant contribution to the military potential or nuclear proliferation of other nations, or that could be detrimental to the foreign policy or national security of the United States.
Carbon fiber composites of the type allegedly pursued by Zhang and his accomplices are ideally suited to applications where strength, stiffness, lower weight, and outstanding fatigue characteristics are critical requirements. These composites also can be used in applications where high temperature, chemical inertness and high damping are important. The two main applications of carbon fiber are in specialized technology, particularly in the fields of aerospace and nuclear engineering, and in general engineering and transportation. In addition, certain carbon fiber-based composites, such as the material sought by the defendant, are used in military aircraft.
At sentencing on November 15, 2013, Zhang faces up to 20 years in prison and a fine of up to $1,000,000.
The government’s case is being prosecuted by Assistant United States Attorneys Seth DuCharme and David Sarratt, with assistance from Trial Attorney David Recker of the Department of Justice Counterespionage Section. Assistance was also provided by Trial Attorney Dan E. Stigall of the Department of Justice Office of International Affairs.
The Defendants
MING SUAN ZHANG
Age: 41California Man Sentenced to Federal Prison for Fraudulent Cellphone SchemeRead the Press Release
ALBUQUERQUE – A California man was sentenced late Friday afternoon for his role in a scheme to fraudulently obtain high-value cellular phones from retail stores in California, Arizona and New Mexico and to resell the cellular phones for profit. Joshua Ferdman, 25, of Woodland Hills, Cal., was sentenced to 15 months in federal prison followed by three years of supervised release. Ferdman also was ordered to pay $45,715.59 restitution to the victims of the criminal scheme.
Ferdman’s sentence was announced by Acting U.S. Attorney Steven C. Yarbrough, Resident Agent in Charge Richard Ferretti of Albuquerque Resident Office of the U.S. Secret Service, and Chief Allen Banks of the Albuquerque Police Department.
Ferdman and his three co-defendants, Jeffrey Contella, 28, and Joseph Cohen, 26, both of Los Angeles, Cal., and Amir Meir Levi, 36, of Sherman Oaks, Cal., were indicted in Feb. 2012, and charged with (1) conspiracy to transport stolen property and commit access device fraud and (2) access device fraud. Contella, Cohen and Levi entered guilty pleas to the indictment without the benefit of any plea agreement in Jan. 2013. Ferdman entered a similar guilty plea in Feb. 2013.
In entering their guilty pleas, the defendants admitted that, in May 2011, they engaged in a scheme to fraudulently obtain high-value cellphones, including smartphones, from Sprint stores, and resell the cellphones in a Van Nuys, Cal., store owned by Cohen and through an on-line store hosted by EBay. The defendants traveled to Sprint stores throughout California, Arizona and New Mexico and fraudulently obtained significant quantities of cellphones by impersonating Sprint customers and the unauthorized use of the customers’ account numbers. They obtained the phones free of cost by instructing store clerks to bill the cost of the phones to the accounts of the unwitting Sprint customers.
According to court filings, from May 10, 2011 through May 16, 2011, Ferdman and Levi traveled to Sprint stores in California, including stores in Fullerton, Los Angeles, Hollywood, San Francisco, Sacramento and Folsom, to perpetuate their fraudulent scheme. From May 21, 2011 to May 24, 2011, Ferdman and Contella traveled to Sprint stores in Arizona and New Mexico for that same purpose. During this period, Levi wired cash to Ferdman and Contella; Ferdman sent cellphones to Levi via Federal Express; Levi delivered the cellphones to Cohen; and Cohen sold the cellphones. On May 25, 2011, Ferdman, Contella and Levi fraudulently obtained 13 smartphones from a Sprint store in Albuquerque through the unauthorized use of a Sprint customer’s account number. That same day, Ferdman, Contella and Levi attempted to purchase an additional six smartphones from a Sprint store in Albuquerque.
Cohen’s sentencing hearing is scheduled on Sept. 6, 2013 and Levi’s sentencing hearing is set for Aug. 26, 2013. Contella’s sentencing hearing has yet to be scheduled. At sentencing, each faces a maximum penalty of five years in prison and a $250,000 fine on the conspiracy charge, and ten years in prison and a $250,000 fine on the access device fraud charge.
In announcing Ferdman’s sentence, Richard Ferretti, Resident Agent in Charge of the Albuquerque office of the Secret Service, said, “The results of this investigation are an example of the strategic partnerships between the Secret Service, Albuquerque Police Department, United States Attorney’s Office, and our private sector partners. We continue to prioritize investigative cases, focusing on electronic and financial crimes which have a significant community impact in New Mexico.”
The case was investigated by the U.S. Secret Service and the Albuquerque Police Department’s Organized Crime Unit, and is being prosecuted by Assistant U.S. Attorney John C. Anderson.17 Defendants Convicted on Federal Charges Marks Successful Conclusion of Savannah Anti-Gang InitiativeRead the Press Release
Operation Ruffian targeted drug and gun crimes committed in
Savannah high-crime areasSAVANNAH, GA - United States Attorney Edward J. Tarver today announced the successful completion of a joint federal and state anti-gang/violent crime initiative dubbed “Operation Ruffian,” which targeted offenders in the Cuyler-Brownsville and Carver Heights neighborhoods of Savannah. The investigation was spearheaded by the Savannah Area Regional Gun Enforcement Task Force (SARGE) which was jointly led by the ATF and the Savannah Chatham Metropolitan Police Department (SCMPD).
A total of 40 individuals were targeted for prosecution in the operation. 23 of these defendants are being prosecuted by the Chatham County District Attorney’s Office. The following 17 individuals were convicted and sentenced in the United States District Court for the Southern District of Georgia:Samuel A. Graham, 36, of Savannah, Georgia was convicted of drug trafficking. Graham was sentenced on October 12, 2011 to 151 months imprisonment.
Antwan L. Cross, 35, of Savannah, Georgia was convicted of possessing a firearm in furtherance of drug trafficking. Cross was sentenced on July 27, 2011 to 60 months imprisonment.
Brian R. Fallon, Jr., 25, of Savannah, Georgia was convicted of possessing an unregistered firearm. Fallon was sentenced on November 18, 2011 to 20 months imprisonment.
Johnny J. Early, 34, of Savannah, Georgia was convicted of drug trafficking and for possessing a firearm as a felon. Early was sentenced on May 9, 2012 to 50 months imprisonment.
Kewan G. Roberson, 23, of Savannah, Georgia was convicted of drug trafficking and for possessing a firearm as a felon. Roberson was sentenced on May 23, 2012 to 49 months imprisonment.
Randy M. Lewis, 25, of Savannah, Georgia was convicted of drug trafficking and for possessing a firearm as a felon. Lewis was sentenced on May 7, 2012 to 54 months imprisonment.
Marco O. Washington, 34, of Savannah, Georgia was convicted of drug trafficking. Washington was sentenced on March 22, 2013 to 60 months imprisonment.
Leearnell J. White, Jr., a.k.a. “Scrootney,” 31, of Savannah, Georgia was convicted of drug trafficking. White was sentenced on November 7, 2012 to 48 months imprisonment.
Edward B. Cone, 33, of Savannah, Georgia was convicted of possessing a firearm as a felon. Cone was sentenced on October 17, 2012 to 66 months imprisonment.
Linwood A. Brown, 53, of Savannah, Georgia was convicted of drug trafficking. Brown was sentenced on November 28, 2012 to 114 months imprisonment.
Eric L. McPherson, 41, of Savannah, Georgia was convicted of drug trafficking. McPherson was sentenced on October 31, 2012 to 160 months imprisonment.
Dominique A. Bostic, 19, of Savannah, Georgia was convicted of drug trafficking and a related firearm offense. Bostic was sentenced on October 12, 2011 to 151 months imprisonment.
Willie L. Smith, 30, of Savannah, Georgia was convicted of drug trafficking and for possessing a firearm as a felon. Smith was sentenced on April 11, 2013 to 72 months imprisonment.
Edward D. Singleton, 31, of Savannah, Georgia was convicted of drug trafficking. Singleton was sentenced on May 13, 2013 to 151 months imprisonment.
Michael P. Griffin, 23, of Savannah, Georgia was convicted of two separate federal firearm offenses. Griffin was sentenced on July 24, 2013 to 154 months imprisonment.
Travis L. Young, 19, of Savannah, Georgia was convicted of two separate federal firearm offenses. Young was sentenced on July 25, 2013 to 180 months imprisonment.
Cedric Reynolds, 24, of Savannah, Georgia for possessing a firearm as a prohibited person. Reynolds was sentenced on June 21, 2013 to 188 months imprisonment.
According to statistics kept by the SCMPD and evidence presented during numerous guilty plea and sentencing hearings, the individuals charged in the course of this operation were responsible for distributing cocaine and other street drugs valued at over $188,000. During the operation, investigators executed 14 search warrants and recovered 43 firearms, including 11 stolen firearms, which were used in the commission of crimes.
United States Attorney Tarver made several observations about the significance of the operation: “The persons indicted in this operation were responsible for a consistent pattern of drug dealing and firearms violations in these Savannah neighborhoods. The criminal acts which they engaged in made it difficult and dangerous for law-abiding residents to go about their daily routines. As a result of this investigation, 40 offenders have been removed from the two neighborhoods, including 17 convicted of federal offenses in the United States District Court. The disruption of two local gangs and the incarceration of numerous dangerous criminals should send a firm message to those who would plague our neighborhoods that federal, state, and local authorities are committed to keeping our streets safe from violent drug dealers and gun traffickers.”
The investigative agencies which took part in Operation Ruffian included SCMPD’s Central Precinct Crime Suppression Unit, the Savannah Area Regional Intelligence Center, the Georgia Bureau of Investigation, K9 units of the Chatham County Sheriff’s Office and SCMPD, the SCMPD S.W.A.T. team, the United States Marshal’s Service, the FBI, and the Chatham County District Attorney’s Office. The operation was led by ATF Special Agent Toby Taylor and SCMPD Detective Kevin Grogan.
The cases presented in United States District Court were prosecuted by Assistant United States Attorneys Karl Knoche, Shane Mayes, Jennifer Solari, and Greg Gilluly. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Sunday 18 August 2013
Grimes Woman Sentenced in Connection with Mortgage FraudRead the Press Release
Des Moines, Iowa – Bobbi Jo Wojewoda, age 46, of Grimes, Iowa, was sentenced by United States District Court Chief Judge James E. Gritzner to 18 months in prison for conspiracy to commit bank fraud, announced United States Attorney Nicholas A. Klinefeldt. Judge Gritzner also sentenced Wojewoda to serve 60 months of supervised release following the completion of her prison term.
In an earlier hearing, Wojewoda admitted she used her position as an apprentice appraiser to prepare appraisals with inflated values to help herself, and others qualify for mortgage loans. Wojewoda also failed to disclose material conflicts of interest to the mortgage lender when she performed appraisals on her own home and homes where she was the real estate agent.
In a related matter, Wojewoda’s husband, Wade Charles Wojewoda, age 45, pled guilty to receipt of proceeds obtained under false pretenses, related to the purchase of the Wojewoda’s home in 2003. Wade Wojewoda admitted he received loan proceeds knowing, or he was aware of a high probability, that the proceeds had been obtained under false pretenses. Specifically, he knew, or deliberately closed his eyes to the fact that a false document had been submitted to a bank to secure the loan proceeds. Wade Wojewoda was sentenced to three years probation on July 31, 2013.
This case was investigated by the Federal Bureau of Investigation, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )