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27 September 2013
Three Sentenced in Connection with 2011 New Year Day Robbery and Killing on Red Lake Indian ReservationRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, three individuals were sentenced for their roles in the murder of a couple on the Red Lake Indian Reservation on New Year’s Day 2011. United States District Judge Donovan W. Frank sentenced David John Martin, age 46, of Columbia Heights, to 160 months in prison on one count of robbery; and Kevin John Needham, age 21, of Red Lake, to 90 months in prison on one count of robbery. Yesterday, Terin Rene Stately, age 25, also of Red Lake, was sentenced to 40 months in prison on one count of aiding and abetting robbery.
On January 15, 2013, Martin and Needham were charged in a superseding indictment. Martin was convicted on March 12, 2013, and Needham pleaded guilty on February 26, 2013. Stately was indicted on August 16, 2012, and pleaded guilty on November 15, 2012.
On June 21, 2013, their co-defendant Geshik-O-Binese Martin, age 30, of Red Lake, was sentenced to life in prison on two counts of murder in the first degree, two counts of murder in the second degree, and one count of robbery. He was also convicted on March 12, 2013.The trial evidence proved that on January 1, 2011, Craig David Roy and Darla Ann Beaulieu were killed while money and illegal drugs were stolen from Roy’s reservation residence. The bodies of Beaulieu and Roy were found in the remains of the house, which was destroyed by fire on that same day. Autopsies determined that the victims were killed as a result of multiple stab wounds and not the fire itself.
In his plea agreement, Needham admitted that he agreed to travel with Stately, the Martins, and another co-defendant to Roy’s residence, the intention being to take money and cocaine by force. Among other things, Needham admittedly stood in the driveway of the Roy residence during the robbery.
In her plea agreement, Stately admitted driving the group to and from the Roy residence and waiting in the vehicle during the robbery. She also admittedly knew of the plan to rob Roy.
This case was the result of an investigation by the Federal Bureau of Investigation and the Red Lake Tribal Police Department, with assistance from the Minnesota Bureau of Criminal Apprehension and the State Fire Marshal. It was prosecuted by Assistant U.S. Attorneys Deidre Y. Aanstad and Nathan P. Petterson.
Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney’s Office.The Justice Department Awards $6.8 Million to Northern Ohio for Crime Enforcement and PreventionRead the Press Release
The U.S. Department of Justice gave more than $6.8 million to fight crime in Northern Ohio this month, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Today, in conjunction with the U.S. Department of Justice Office of Community Oriented Policing Services (COPS), Dettelbach announced funding awards for the Northern District of Ohio, to be used to hire additional police officers and school resource officers.
The grantees, the additional officers to be hired and the grant amount, which includes salary and benefits for officers to three years, are as follows:
Akron, 10 officers, $1.25 million.
Austintown, 2 officers, $250,000.
Canton, 7 officers. $851,949.
Cleveland, 10 officers. $1.25 million.
Cuyahoga Metropolitan Housing Authority, 4 officers, $499,000.
Lima, 1 officer, $125,000.
Mansfield, 4 officers, $849,844.
Toledo, 10 officers, $1.25 million.
Warren, 2 officers, $250,000.
Additionally, the Northern Ohio Violent Crime Consortium was awarded $500,000, which will be used for data analysts and improved technology. NOVCC is made up of the eight largest departments in Northern Ohio – Akron, Canton, Cleveland, Elyria, Lorain, Mansfield, Toledo and Youngstown – and are engaged in intelligence-led policing efforts.
Earlier this month, the Department also awarded $1 million to fund crime prevention and enforcement efforts in the Mt. Pleasant neighborhood on Cleveland’s southeast side. The money will be used over three years to pay for crime prevention programs, training for felons returning for prison, as well as the continuation V-GRIP gun suppression initiative, in which federal agents work with Cleveland police to arrest people who illegally possess firearms.
“Today, the Justice Department is proud to support the brave and innovative men and women fighting and preventing crime in Northern Ohio,” Dettelbach said. “For people listening to those who would indiscriminately shrink or simply shut down the federal government, today’s grants, which support cops on the street and crucial crime prevention, is a reminder of the valuable role the federal government plays.”
“In the wake of past tragedies, it's clear that we need to be willing to take all possible steps to ensure that our kids are safe when they go to school,” said Attorney General Eric Holder. “These critical investments represent the Justice Department's latest effort to strengthen key law enforcement capabilities, and to provide communities with the resources they need to protect our young people. Especially in a time of increased challenges and limited budgets, our top priority must always be the safety and well-being of our children.”
Overall the COPS Office funded awards to 263 cities and counties, aimed at creating 937 law enforcement positions. More than $125 million will be awarded nationally, including nearly $45 million to fund 356 new school resource officer positions.
The COPS Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides the salary and benefits for officer and deputy hires for three years.
Grantees for the 2013 hiring program were selected based on their fiscal needs, local crime rates, and their community policing plans. There was an additional focus this year on agencies requesting assistance in developing school safety programs that would include the hiring of a school resource officer. School resource officer positions funded by the COPS Office are sworn law enforcement positions that work within a school district or facility, interacting directly with school administrators and students.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
For the entire list of grantees and additional information about the 2013 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
Ten Indicted in $200 Million International Credit Card Fraud ConspiracyRead the Press Release
NEWARK, N.J. – Ten individuals who allegedly participated in one of the largest credit card fraud schemes ever charged by the Justice Department now face a 25-count indictment charging additional crimes, New Jersey U.S. Attorney Paul J. Fishman announced.
Nine of the defendants charged in the indictment unsealed today were previously charged by complaint in February 2013 in connection with the scheme, which allegedly caused more than $200 million in losses. A 10th defendant, Amar Singh, is charged for the first time in this indictment. The complaint charged 18 defendants with bank fraud conspiracy, alleging their participation in a scheme to fabricate more than 7,000 false identities to obtain tens of thousands of credit cards. Many of those defendants have since pleaded guilty to related charges. The indictment announced today adds wire fraud charges against seven of the defendants with pending cases.
The charged defendants are as follows:
Name
Age
Residence
Counts Charged
Status
59
Iselin, N.J.
1- bank fraud conspiracy
15,16, 22- wire fraud
detained
Ijaz Butt
54
Hicksville, N.Y.
1- bank fraud conspiracy
17,18,19- wire fraud
detained
Khawaja Ikram
40
Staten Island, N.Y.
1- bank fraud conspiracy
20, 21, 23- wire fraud
bailed
Azhar Ikram
40
Howard Beach, N.Y.
1- bank fraud conspiracy
14, 24, 25- wire fraud
detained
Vinod Dadlani
50
Lyndhurst, N.J.
1- bank fraud conspiracy
2, 3, 9,10- wire fraud
bailed
Vijay Verma
46
Iselin, N.J.
1- bank fraud conspiracy
4, 6, 11- wire fraud
bailed
Tarsem Lal
74
Iselin, N.J.
1- bank fraud conspiracy
5, 7, 8, 12,13- wire fraud
bailed
Habib Chaudhry
45
Valley Stream, N.Y.
1- bank fraud conspiracy
at large
Muhammad Naveed
36
Flushing, N.Y.
1- bank fraud conspiracy
at large
Amar Singh
62
Floral Park, N.Y.
1- bank fraud conspiracy
at large
According to documents filed in this case and statements made in court:
The scheme involved a three-step process. The defendants would make up a false identity by creating fraudulent identification documents and a fraudulent credit profile with the major credit bureaus. Then they would pump up the credit of the false identity by providing false information about that identity’s creditworthiness to those credit bureaus. Finally, they borrowed or spent as much as they could, based on the phony credit history, but did not repay the debts – causing more than $200 million in confirmed losses to businesses and financial institutions.
The scope of the criminal fraud enterprise required the conspirators to construct an elaborate network of false identities. Across the country, the conspirators maintained more than 1,800 “drop addresses,” including houses, apartments and post office boxes, which they used as the mailing addresses for the false identities.
The conspiracy to commit bank fraud charge, and each of the wire fraud charges, carries a maximum potential penalty of 30 years in prison and a $1 million fine.
U.S. Attorney Fishman praised special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Aaron T. Ford in Newark; postal inspectors, under the direction of Postal Inspector in Charge Maria L. Kelokates; and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola. He also thanked the U.S. Social Security Administration, Office of the Inspector General, for its role in the investigation.
The government is represented by Assistant U.S. Attorneys Daniel V. Shapiro and Zach Intrater of the U.S. Attorney’s Office Economic Crimes Unit and Barbara Ward of the office’s Asset Forfeiture Unit in Newark.The charges and allegations contained in the indictment are merely accusations and the defendants are considered innocent unless and until proven guilty.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
13-394
Defense counsel: Babar Qureshi: Samuel Deluca Esq., Jersey City, N.J.
Ijaz Butt: Kenneth Kayser Esq., Livingston, N.J.
Khawaja Ikram: Neil Duffy III Esq., Union, N.J.
Azhar Ikram: Steve Zissou Esq., Bayside, N.Y.
Vinod Dadlani: Patrick Papalia Esq., Hackensack, N.J.
Vijay Verma: Gerald Krovatin Esq., Newark, N.J.
Tarsem Lal: Paul Condon, Esq. Jersey City, N.J.Qureshi, Babar et al. Indictment
Teacher Sentenced for Receiving Child PornographyRead the Press Release
ATLANTA - William Villemez has been sentenced to five years in prison for receiving and possessing child pornography.
“Child pornography is a horrendous crime that involves the sexual abuse and exploitation of the most innocent members of society,” said United States Attorney Sally Quillian Yates. “It is particularly distressing when a teacher purchases and downloads child pornography. Thanks to the vigilance of our law enforcement partners, this teacher will no longer be around students but will be going to federal prison.”
“Postal Inspectors are charged with protecting the U.S. mail from illegal use. As long as criminals use the U.S. mail to exploit children, the Postal Inspection Service will continue to make these types of investigations a top priority,” said Keith Morris, Postal Inspector in Charge of the Atlanta Division.
“Crime against children continues to be a top priority for the Georgia Bureau of Investigation. We are committed to work with our federal law enforcement counterparts and bring to justice those who exploit children,” said Vernon M. Keenan, Georgia Bureau of Investigation Director.
According to United States Attorney Yates, the charges and other information presented in court: Between July 2008 and March 2011, Villemez ordered 32 DVD’s containing images of child pornography and child erotica from a website based outside the United States. He spent more than $750 for those DVD’s. Law enforcement traced those orders to Villemez’s home in Smyrna, Ga. During the execution of a search warrant in October 2012, agents found that Villemez had not only purchased the DVD’s but had also downloaded child pornography onto his computer. During the period that he was receiving DVD’s in the mail and downloading computer images of child pornography, Villemez taught drama and dance to middle-school students at Pace Academy in Atlanta.
Villemez, 30, of Acworth, Ga., has been sentenced to five years in prison to be followed by 10 years of supervised release. He was convicted on these charges on April 19, 2013, after he pleaded guilty.
This case is being investigated by the United States Postal Inspection Service with assistance from the Georgia Bureau of Investigation and Cobb County Police Department.
Assistant United States Attorneys Paul R. Jones and Brent A. Gray prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Swanton Man Indicted for Child Pornography OffensesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Timothy Keevan, 48, of Swanton, Vermont, was charged in a single-count indictment with accessing images of child pornography with the intent to view them, in violation of 18 U.S.C. § 2252(a)(4)(B). Keevan pleaded not guilty to the charge when arraigned on September 24, 2013. At that hearing, U.S. Magistrate Judge John M. Conroy denied the government’s motion for detention and released Keevan on conditions.
According to court records and proceedings, Keevan, an operations support technician with U.S. Citizen and Immigration Service who works in the shipping and receiving warehouse in St. Albans, Vermont, used a work-issued computer to access websites that displayed images of child pornography. Keevan’s activities were discovered because his computer, like all government issued computers, was continually monitored for non-work related or other inappropriate activity. The computer was confiscated and the images of child pornography were discovered on it.
If convicted of the child exploitation charge, Keevan faces a statutory maximum term of imprisonment of ten (10) years imprisonment, a mandatory minimum term of five (5) years, and up to a lifetime term, of supervised release, and a fine of up to $250,000. The actual sentence in the event of conviction would be determined by the court with reference to the advisory federal sentencing guidelines. United States Attorney Tristram J. Coffin stated that the indictment is an accusation only and that Keevan is presumed to be innocent unless and until proven guilty.
United States Attorney Coffin commended the efforts of the Department of Homeland Security Office of Inspector General, under the direction of Special Agent in Charge Gregory K. Null for the Northeast Region, the Vermont State Police, the United States Secret Service, and the Office of Immigration and Customs Enforcement, in conducting the investigation of Keevan.
The prosecution of Keevan is being handled by Assistant U.S. Attorney Barbara Masterson. Keevan is represented by David McColgin of the Federal Defender’s Office.
U.S. Attorney Coffin noted that this prosecution is part of the U.S. Department of Justice=s Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney=s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Sterling Husband and Wife Indicted for DMV Bribery SchemeRead the Press Release
ALEXANDRIA, Va. – Jose Calderon and Noemi Barboza, both 42 and of Sterling, Virginia, were indicted by a federal grand jury yesterday on conspiracy and bribery of an employee of a state agency receiving federal assistance.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement.
Calderon and Barboza face a maximum penalty of ten years if convicted.
According to the indictment, from September 2007 to July 2010, the defendants solicited cash payments from undocumented aliens in return for helping them secure DMV documents for which they were not eligible. After the defendants collected cash from ineligible applicants, they provided a DMV employee a portion of the money to induce her to falsely verify that the ineligible applicants had produced documentation necessary to establish eligibility for issuance of the requested DMV documents. The defendants also accompanied ineligible applicants to the DMV Service Center located at the Fair Oaks Mall and directed them to the DMV employee who had accepted bribes.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Rebeca H. Bellows is prosecuting the case on behalf of the United States.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
Any person who believes they may have information regarding public corruption in the Northern Virginia area is encouraged to call the FBI’s Northern Virginia Public Corruption Hotline at 703-686-6225.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Statement of Manhattan U.S. Attorney Preet Bharara on the Charges in U.S. V. Joseph Hunter, Et Al.Read the Press Release
“The bone-chilling allegations in today's Indictment read like they were ripped from the pages of a Tom Clancy novel. The charges tell a tale of an international band of mercenary marksmen who enlisted their elite military training to serve as hired guns for evil ends. Three of the defendants were ready, willing and eager to take cold hard cash to commit the cold-blooded murders of a DEA agent and an informant. Thanks to the determined, skillful and intrepid efforts of the DEA's Special Operations Division, an international hit team has been neutralized by agents working on four continents.”
Six Indicted for Arson, Insurance Fraud Scheme, Independence Couple also Charged with Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that six individuals have been indicted by a federal grand jury for their roles in an arson and insurance fraud conspiracy. One of the conspirators has also been indicted separately, along with his wife, in a conspiracy to illegally possess firearms.
USA v. Stamps, et al
Joshua Stamps, 26, of Independence, Mo., his mother, Randy Stamps, 55, John Stanley Wayne, 30, Michael Smith, 26, and Luis Esquivel, 48, all of Kansas City, Mo., and Roy Richard, 32, of Wichita, Kan., were charged in a 19-count indictment returned under seal by a federal grand jury on Wednesday, Sept. 25, 2013. That indictment was unsealed and made public today upon the arrests and initial court appearances of several defendants.
The federal indictment alleges Joshua Stamps led an arson and insurance fraud conspiracy between 2007 and 2013 in which he bought houses, insured them for more than they were worth, had them burned and made insurance claims on the burned houses. Stamps and his co-conspirators allegedly bought, insured, and burned five houses in Kansas City, Mo. The total actual loss to insurance companies in the scheme was $434,938, while the total intended loss was almost $1.2 million.
According to the indictment, Stamps bought houses costing from $6,500 to $15,000, using Randy Stamps and Smith as straw owners for three of the houses. Other co-conspirators helped commit the arsons and/or acted as tenants so the properties could be classified as rentals. Stamps and his co-conspirators then insured the houses for much more than the purchase price, the indictment says, in amounts from $88,000 to $307,000. Stamps and his co-conspirators allegedly made false statements on the insurance applications, claiming that the houses were rented and/or occupied, that there were valuable contents in the houses, and that the houses had been renovated. Stamps, Wayne, and other co-conspirators allegedly set fire to the houses. The listed owner of the house that burned would then claim a total loss with the applicable insurance company and would falsely claim they had no knowledge of, or involvement in, the fire.
In addition to the conspiracy, Joshua Stamps is charged with five counts of using fire to commit a federal crime, four counts of arson, four counts of mail fraud, one count of wire fraud and three counts of money laundering.
John Wayne is also charged with Joshua Stamps in two counts of using fire to commit a federal crime and two counts of arson. According to the indictment, Wayne’s pants were on fire as he ran from the arson at 4901 Agnes, so he took them off and left them in the street. Michael Smith is also charged with Joshua Stamps in one count of mail fraud and one count of wire fraud.
Richard is also charged with wire fraud. Randy Stamps is also charged with mail fraud. Luis Esquivel is also charged with wire fraud.
USA v. Stamps, Loyd
Joshua Stamps and his wife, Candice Loyd, 28, were charged in a separate and unrelated three-count indictment that was also returned under seal by a federal grand jury on Wednesday, Sept. 25, 2013.
The federal indictment alleges that Stamps and Loyd, who were not married at the time, participated in a conspiracy to illegally possess two firearms from June 2, 2008, to April 9,2013. The purpose of the conspiracy was for Loyd to obtain firearms for Stamps, who could not legally own firearms due to his felony conviction.
The indictment alleges that Loyd bought a Taurus 9mm pistol on June 2, 2008. When Kansas City police officers executed a search warrant at the residence of Stamps and Loyd, the indictment says, they found the Taurus 9mm pistol as well as a Ruger .40-caliber pistol inside a safe in the children’s bedroom. Loyd initially claimed to be the owner of the firearms, according to the indictment. Loyd did not have a combination to the safe, the indictment says, and eventually told police that Stamps had access to the safe and the combination to the safe. When officers forced the safe open, they recovered the two firearms and ammunition.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. In addition to the conspiracy, Stamps and Loyd are each charged in two counts of the indictment with aiding and abetting each other for Stamps, who has a prior felony conviction, to possess a firearm.
Dickinson cautioned that the charges contained in these indictments are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
These cases are being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. They were investigated by the Kansas City, Mo., Police Department.Sex Offender Sentenced to 37 Months in Federal Prison for Failing to Register in R.I.Read the Press Release
PROVIDENCE, R.I. – Jorge Mercado, 43, a convicted sex offender, was sentenced today to 37 months in federal prison, the maximum sentence under the advisory federal sentencing guidelines, for failing to register as a sex offender when he moved from Florida to Rhode Island in January 2012, announced United States Attorney Peter F. Neronha and United States Marshal Jamie A. Hainsworth.
At sentencing, U.S. District Court Judge William E. Smith also ordered Mercado to serve 5 years of supervised release following completion of his prison term. Mercado pleaded guilty on January 9, 2013, to violating the Sex Offender Registration and Notification Act (SORNA).
According to information presented to the court, in January 2002, Mercado pleaded guilty in Massachusetts state court to assaulting a child 14 or older. Based on the conviction, Mercado was obligated to register under SORNA and to keep his registration up-to-date, including any change of address in another state or jurisdiction.
According to information presented to the court, between July 2007 and August 2011, Mercado appropriately registered with the Florida Department of Law Enforcement, but failed to register with Rhode Island law enforcement when he moved to Rhode Island in January 2012. Mercado was arrested by the U.S. Marshals Sex Offender Task Force and Narragansett Police in November 2012.
The case was prosecuted by Assistant U.S. Attorney Richard W. Rose.
SORNA provides a comprehensive set of federal standards for sex offender registration and notification in the United States through the nationwide network of sex offender registration and notification programs. Additionally, SORNA requires registered sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school, and to make periodic in-person appearances to verify and update their registration information.
Contact: 401-709-5357
[email protected]San Angelo, Texas, Man Sentenced to 46 Months in Federal Prison on Federal Child Pornography ConvictionRead the Press Release
LUBBOCK, Texas — James Arthur Abney, 53, of San Angelo, Texas, was sentenced this morning, by U.S. District Judge Sam R. Cummings, to 46 months in federal prison and 10 years of supervised release, following his guilty plea in June 2013 to one count of possession of child pornography. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, while Abney resided in Ballinger, Texas, he used cell phones to search the Internet for images of child pornography. He saved images of child pornography on his cellphones and downloaded some of the images onto his computer’s hard drive.
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 investigation was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Ballinger Police Department and the Runnels County Sheriff’s Office. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Russell Leroy Miller Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on September 27, 2013, before U.S. District Judge Donald W. Molloy, RUSSELL LEROY MILLER, a 70-year-old resident of Big Fork, was sentenced to a term of:
Probation: 5 years
Special Assessment: $100
Restitution: $3,218
Fine: $10,000
MILLER was sentenced in connection with his guilty plea to possession of child pornography.
In an Offer of Proof filed by Assistant U.S. Attorney Cyndee L. Peterson, the government stated it would have proved at trial the following:
As part of an Internet Crimes Against Children Task Force (ICAC) investigation, the Department of Homeland Security Investigations obtained a search warrant for MILLER's residence in Big Fork.
On February 23, 2012, the search warrant was served. When interviewed, MILLER admitted using peer-to-peer file sharing programs. MILLER admitted he downloaded files containing child pornography. He also admitted that he saved the files to various CDs and external hard drives. He disclosed search terms which were indicative of search terms used to locate child pornography files.
MILLER's computers and media were forensically analyzed. The examiner located video and image files which depicted children engaged in sexually explicit conduct. The files were created between February 26, 2002, and February 22, 2012.
The investigation was conducted by the Montana Internet Crimes Against Children (ICAC) Task Force.
Rose City Dentist Arrested for Refusing to Pay His TaxesRead the Press Release
A Rose City dentist was arrested and arraigned yesterday in federal court on an indictment charging him with one count of evasion of payment of federal income taxes, one count of mail fraud and one count of making false statements to the IRS, United States Attorney Barbara McQuade announced today.
McQuade was joined in the announcement by Carolyn Weber, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation.
Arrested was Carter White Rae, of Rose City, Michigan.
According to court records, Rae refused to pay his United States and the State of Michigan taxes from 2001 to 2011. Rae sought to avoid paying taxes by various means, including using the employer identification number (EIN) of the former owner of the dental practice run by Rae. He also opened and used a business bank account using the name and the EIN of the former owner of the practice. He closed his personal bank account, and used the business bank account, cash and money orders to pay his personal expenses. Rae attempted to trick the IRS by characterizing payments to his wife as “payroll” expenses. His wife rarely worked for his dental business; in fact she lived in a different state. Rae further attempted to relieve himself of his tax burden by filing bankruptcy.
The defendant faces a maximum term of imprisonment of 5 years on both counts one and three, and a maximum term of up to 20 years on count two of the indictment. The defendant face fines of $250,000 on all counts. The actual sentence imposed, if convicted, would depend on a number of factors, including the advisory sentencing guidelines.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial at which it will be the government's burden to prove guilt beyond a reasonable doubt.
The case was investigated by special agents of the IRS-Criminal Investigation and is being prosecuted by the U.S. Attorney’s Office in Bay City.
Randolph County Man Sentenced on Methamphetamine ConspiracyRead the Press Release
On September 26, 2013, Joshua D. Kennedy, 22, of Chester, Ill., was sentenced in United States District Court in Benton on a one-count second superseding indictment charging conspiracy to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
Kennedy, who had previously pled guilty to the methamphetamine offense, was sentenced to 120 months in prison, to be followed by 5 years of supervised release, and fined $300. The offense occurred between January 2011, and January 2013, in Perry, Jackson, and Randolph Counties. Evidence at the plea and sentencing hearings established that Kennedy was involved with others in the manufacture of methamphetamine. During the conspiracy, Kennedy obtained over 95 grams of pseudoephedrine for use in the manufacture of methamphetamine. Others also provided Kennedy with pseudoephedrine pills to use to cook methamphetamine. Eight co-defendants have previously been sentenced for their role in the methamphetamine conspiracy. Five co-defendants have pled guilty and are awaiting sentencing.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Randolph County Sheriff’s Office, Perry County Sheriff’s Office, Percy Police Department, Murphysboro Police Department, Sparta Police Department, and Drug Enforcement Administration.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Philadelphia Man Sentenced for Bank Rip-OffRead the Press Release
PHILADELPHIA - Eric Young, 40, of Philadelphia, Pennsylvania, was sentenced today to three years in prison for conspiracy to commit bank fraud and bank fraud. Young and co-conspirator Calvin Johnson ran a scheme in which they hired individuals to open bank accounts, made phony deposits, and made withdrawals from the accounts knowing there were insufficient funds. The defendants defrauded the banks of more than $250,000 between December 2011 and August 2012.
In addition to the prison term, U.S. District Court Judge Eduardo Robreno ordered Young to pay restitution to TD Bank in the amount of $268,656.56, serve three years of supervised release, and pay a $200 special assessment. Johnson is awaiting sentencing. Both defendants pleaded guilty.
The case was investigated by the Bensalem Police Department and the United States Secret Service. It is being prosecuted by Assistant United States Attorney Patrick J. Murray.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Ohio Man Pleads Guilty to Criminal Charge Related to the Kensington Towers ProjectRead the Press Release
BUFFALO, N.Y.– U.S. Attorney William J. Hochul announced today that Chris Coseglia, 27, from Ohio, pleaded guilty before U.S. District Court Judge Richard J. Arcara, to one charge of being an accessory after the fact to a false statement under the Clean Air Act. The charge carries a maximum penalty of one year in prison, a fine of $125,000 or both.
Assistant U. S. Attorney Aaron J. Mango, who is handling the case, stated that the defendant was employed by JMD Environmental, Inc. (JMD) as an air sampling technician and a project monitor, and was certified by the New York State Department of Health to conduct asbestos project monitor and air sampling duties. From June 9, 2009 to January 11, 2010, co-defendants Johnson Contracting of WNY, Inc. (Johnson Contracting), Ernest Johnson, and Rai Johnson, conducted asbestos abatement activities at six buildings at the Kensington Towers Apartment Complex in Buffalo. During the abatement process, co-defendant Rai Johnson created daily project logs to document the progress at Kensington Towers. The logs are documents required to be maintained under the Clean Air Act.
At the conclusion of the abatement for building B-2 by Johnson Contracting, Rai Johnson wrote in his daily project log that all material containing asbestos had been removed from the boiler room, when in truth, all asbestos had not been removed. Thereafter, on August 25, 2009, the defendant conducted a visual inspection of the boiler room at building B-2 and issued a satisfactory visual inspection, when in truth, the defendant was aware that all asbestos had not been removed. In doing so, the defendant acted as an accessory after the fact to the false statement made by the Johnson defendants.
This is the second defendant to plead guilty as part of the Kensington Towers asbestos abatement project. In addition to Ernest and Rai Johnson, other charged defendants include JMD project monitors Evan Harnden, and Brian Scott; and current and former public officials responsible for certifying the project’s compliance with applicable laws and regulations, including Donald Grzebielucha, William Manuszewski, and Theodore Lehmann. The defendants are expected to go on trial October 22, 2013 before U.S. District Court Judge Richard J. Arcara. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation on the part of Special Agents of the U.S. Environmental Protection Agency - Criminal Investigation Division, under the direction of Acting Special Agent-In-Charge, Vernesa Jones-Allen; Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent-In-Charge Brian P. Boetig; Special Agents of the U.S. Department of Housing and Urban Development - Office of Inspector General, under the direction of Special Agent-In-Charge Cary Rubenstein; and Investigators of the New York State Department of Environmental Conservation Police, BECI, under the direction of Captain David Bennett. Additional assistance was provided by the New York State Department of Labor, Asbestos Control Bureau.Sentencing is scheduled for February 13, 2014 at 12:30 p.m. before Judge Arcara.
Oakland, California, Man Pleads Guilty to Marijuana Conspiracy and Money LaunderingRead the Press Release
Alfonso Hayden, 44, of Oakland, California, pled guilty in federal district court, in East St. Louis, to conspiracy to distribute and possession with intent to distribute marijuana and attempted money laundering, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Hayden is scheduled for sentencing on January 15, 2014. He faces a potential sentence of 5 years in prison for marijuana conspiracy and a fine of up to $250,000, not more than 2 years of supervised release after his prison term, and a mandatory special assessment of $100. He also faces a potential sentence of 20 years in prison for attempted money laundering, a fine of up to $500,000, not more than 3 years of supervised release after his prison term, and a mandatory assessment of $100.
Court proceedings revealed in April 2010, DEA agents began investigating Hayden as the supply source of marijuana and cocaine between December 2009 and June 2010 for a drug distribution business in operation since the early 2000s, in Eagle Park, in Madison County, Illinois. To date, twenty-eight other members of the organization have been convicted and sentenced.
Evidence in support of the indictment was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Participating agencies include the Drug Enforcement Administration (DEA), Internal Revenue Service, Criminal Investigations, the U.S. Immigration and Customs Enforcement Office of Homeland Security Investigations (ICE HSI), Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), U.S. Marshal Service, the Granite City Police Department, Fairmount City Police Department, Collinsville Police Department, Pontoon Beach Police Department, Park Hills (Missouri) Police Department, the St. Clair County Sheriff’s Department, and the Illinois State Police. This case is assigned to Assistant United States Attorney Daniel T. Kapsak.
Northern Michigan Residents Charged in Drug Trafficking ConspiracyRead the Press Release
Four residents of northern Michigan have been charged with participating in a drug trafficking organization, U.S. Attorney Barbara L. McQuade announced today.
A ten-count indictment was returned by a federal grand jury in Bay City on Wednesday, charging four individuals with conspiracy to distribute cocaine, crack and heroin along with related charges.
Named in the indictment were:
Tradvis Demarr Williams, 33, of Cheboygan, Paul Allen Anderson, 31, Rachel Lee Winslow, 29, of Cheboygan, and
Kimberly Ann Turcott, 26, of Charlevoix.The charges follow an investigation conducted during the past several months by the Michigan State Police Straits Area Narcotics Enforcement ("MSP SANE") team and the Drug Enforcement Administration. On Thursday, the MSP SANE team executed arrest warrants and search warrants at several locations.
Members of the conspiracy are alleged to have transported or arranged for the transportation of kilogram quantities of cocaine, crack and heroin from Detroit to the Cheboygan County area over the course of the conspiracy, where they delivered the drugs to other distributors and end-users in northern Michigan. Members of the conspiracy are also charged with wiring drug proceeds to individuals in Detroit for the purchase of additional drugs.
The case is being prosecuted by the Bay City branch of the United States Attorney's Office for the Eastern District of Michigan.
The charges contained in the indictment are merely allegations, and the defendants are presumed innocent unless proven guilty.
New Jersey U.S. Attorney Paul J. Fishman Announces Hiring Grants for Law Enforcement and School Safety OfficersRead the Press Release
Funds Will Hire School Resource Officers and Fund Critical Law Enforcement Positions
NEWARK, N.J. – U.S. Attorney Paul J. Fishman, in conjunction with the U.S. Department of Justice Office of Community Oriented Policing Services (COPS), today announced funding awards for the District of New Jersey.
The grantees and amount awarded include:
Recipient
Total Officers Awarded
Estimated Award Amount
5
$625,000
Bridgeton, City of
3
$375,000
Camden County Police Department
10
$2,262,950
Paterson, City of
10
$1,672,510
Westampton, Township of
1
$125,000
“In the wake of past tragedies, it's clear that we need to be willing to take all possible steps to ensure that our kids are safe when they go to school,” said Attorney General Eric Holder. “These critical investments represent the Justice Department’s latest effort to strengthen key law enforcement capabilities, and to provide communities with the resources they need to protect our young people. Especially in a time of increased challenges and limited budgets, our top priority must always be the safety and well-being of our children.”
Overall the COPS Office funded awards to 263 cities and counties, aimed at creating 937 law enforcement positions. More than $125 million will be awarded nationally, including nearly $45 million to fund 356 new school resource officer positions.
“In a time of diminished resources, it is more important than ever that we do all we can to ensure public safety,” said U.S. Attorney Fishman. “Local law enforcement often is required to hold the front line while taking the most painful cuts. I am pleased to join in announcing the Justice Department’s support of these departments and the admirable job their officers are doing to protect our communities.”
“The COPS Office is pleased to assist local law enforcement agencies throughout the country address their most critical public safety issues,” said Joshua Ederheimer, Acting Director of the COPS Office. “Funding from this year’s program will allow many cities and counties to apply new sworn personnel to issues related to violent crime, property crime, and school safety.”The COPS Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides the salary and benefits for officer and deputy hires for three years.
Grantees for the 2013 hiring program were selected based on their fiscal needs, local crime rates, and their community policing plans. There was an additional focus this year on agencies requesting assistance in developing school safety programs that would include the hiring of a school resource officer. School resource officer positions funded by the COPS Office are sworn law enforcement positions that work within a school district or facility, interacting directly with school administrators and students.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
For the entire list of grantees and additional information about the 2013 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
13-395
New Guidance Supports Voluntary Use of Race to Achieve Diversity in Higher EducationRead the Press Release
Today, the U.S. Departments of Justice and Education released new guidance that provides colleges and universities with information about the ruling in Fisher v. University of Texas-Austin, and reiterates the Departments’ position on the voluntary use of race to achieve diversity in higher education. The guidance is the first time the Departments have provided policy clarification on the use of race in higher education since the U.S. Supreme Court decision in June.
The guidance explains that the court preserved the well-established legal principle that colleges and universities have a compelling interest in achieving the educational benefits that flow from a racially and ethnically diverse student body and can pursue that interest in their admissions programs if they do so in lawful ways. The educational benefits of diversity, long recognized by the court and affirmed in research and practice, include cross-racial understanding and dialogue, the reduction of racial isolation and the breaking down of racial stereotypes.
“The educational benefits of diversity are critically important to the future of this nation,” U.S. Attorney General Eric Holder said in response to the Supreme Court ruling in June. “As the Court has repeatedly recognized, diverse student enrollment promotes understanding, helps to break down racial stereotypes, enables students to better understand people of different races, and prepares all students to succeed in, and eventually lead, an increasingly diverse workforce and society.”
“As the Court has repeatedly recognized, a diverse student enrollment promotes cross-racial understanding and dialogue, reduces racial isolation, and helps to break down stereotypes,” U.S. Secretary of Education Arne Duncan said in response to the Supreme Court ruling in June. “This is critical for the future of our country because racially diverse educational environments help to prepare students to succeed in an increasingly diverse workforce and society.”
The Departments of Justice and Education strongly support diversity in higher education. Racially diverse educational environments help to prepare students to succeed in our increasingly diverse nation. The future workforce of America must be able to transcend the boundaries of race, language and culture as our economy becomes more globally interconnected.
In 2011, the Departments issued “Guidance on the Voluntary Use of Race to Achieve Diversity in Postsecondary Education” and the related “Guidance on the Voluntary Use of Race to Achieve Diversity and Avoid Racial Isolation in Elementary and Secondary Schools.” Both guidance documents remain in effect after the Fisher decision and are available at www.ed.gov and www.usdoj.gov .
At a panel discussion this morning at the U.S. Department of Justice, higher education leaders will join Catherine E. Lhamon, Assistant Secretary for Civil Rights for the U.S. Department of Education, and Jocelyn Samuels, Acting Assistant Attorney General for Civil Rights for the U.S. Department of Justice, to discuss the new guidance, the importance of creating and supporting diversity on college campuses, and the parameters for using race in admissions as stated by the U.S. Supreme Court in Fisher v. University of Texas at Austin.
For more information about the Department of Education's Office for Civil Rights, please visit http://www2.ed.gov/about/offices/list/ocr/index.html . For more information about the Educational Opportunities Section of the Department of Justice's Civil Rights Division, please visit http://www.justice.gov/crt/edo/ .
Minnetonka Man Pleads Guilty to Distributing Child PornographyRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 36-year-old Minnetonka man pleaded guilty to distributing child pornography. Jonathan Charles Otto pleaded guilty to one count of distribution of child pornography. Otto, who was indicted on July 23, 2013, entered his plea before United States District Judge Richard H. Kyle.
In his plea agreement, Otto admitted that on December 27, 2010, he distributed images and videos containing visual depictions of minors engaging in sexually explicit conduct. In addition, Otto admitted that he possessed more than 45,000 images and more than 3,800 videos of similar material. Some of the images and videos portrayed sadistic or masochistic conduct or other depictions of violence.
For his crime, Otto faces a potential maximum penalty of 20 years in prison, with a mandatory minimum penalty of five years. Judge Kyle will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the Minnesota Child Exploitation Task Force, sponsored by the Federal Bureau of Investigation, with cooperation from the Minnetonka Police Department and the London Metropolitan Police Service. It is being prosecuted by Assistant U.S. Attorney Manda M. Sertich.
Distribution and possession of child pornography is against the law. In addition to prosecuting these cases, the Justice Department is funding a study focused on the correlation between involvement in child pornography and hands-on sexual abuse of children. A 2008 study (The Butner Study) published in the Journal of Family Violence found that up to 80 percent of federal inmates incarcerated for possession, receipt, or distribution of child pornography also admitted to hands-on sexual abuse of children, ranging from touching to rape.
This case was brought as part of Project Safe Childhood (“PSC”), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney offices and the Justice Department’s Criminal Division, Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”Michigan Man Sentenced for Illegally Transporting ElkRead the Press Release
United States Attorney Brendan V. Johnson announced that a Michigan man charged with Unlawful Transportation of Wildlife in Interstate Commerce pled guilty and was sentenced on September 25, 2013, by U.S. Magistrate Judge Veronica L. Duffy.
Jerry P. Londo, age 66, was sentenced to 25 months of probation and ordered to pay a $1,000 fine, $5,000 in restitution, and a $25 special assessment to the Federal Crime Victims Fund.
The conviction stems from an incident that took place in October 2011 in Pennington County, South Dakota, when Londo illegally tagged an elk with a Wyoming tag, even though it had been shot and killed in South Dakota. Londo then transported the illegally tagged elk to Wyoming.
This case was investigated by the South Dakota Game, Fish and Parks and the U.S. Fish and Wildlife Service. Assistant U.S. Attorney Eric Kelderman prosecuted the case.Mexican National to Serve 20 Years in Prison for Possession of Meth with Intent to DistributeRead the Press Release
Oklahoma City, Oklahoma – ELIAS VEGA AMADO, 33, a Mexican national, was sentenced by United States Chief District Judge Joe Heaton to serve 240 months in federal prison for possession with intent to distribute methamphetamine, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to court records, Amado was indicted by a federal grand jury on March 20, 2013, and charged with five counts: (1) possession with intent to distribute 50 grams or more of methamphetamine, (2) being a felon in possession of eight firearms, (3) being an illegal alien in possession of firearms, (4) possession of firearms in furtherance of a drug trafficking crime, and (5) illegal reentry into the United States after he had been previously deported. Amado pled guilty on May 29, 2013, to counts one and five and he agreed to forfeit all of the firearms.
This case was the result of an investigation conducted by the Oklahoma City Police Department, the Federal Bureau of Investigation, and IRS Criminal Investigation. The case was prosecuted by Assistant U.S. Attorney David P. Petermann.
Metropolitan Police Department Receives $1.25 Million Grant from Department of Justice for Hiring 10 Police OfficersU.S. Attorney Machen and Department of Justice Announce Award; Officers to Focus on Violent CrimeRead the Press Release
WASHINGTON – The Department of Justice Office of Community Oriented Policing Services (COPS) has awarded the Metropolitan Police Department (MPD) a grant of $1.25 million for the hiring of 10 police officers to address violent crime, U.S. Attorney Ronald C. Machen Jr. and the Department of Justice announced today.
Overall, the COPS Office today announced the funding of awards to 263 cities and counties, aimed at creating 937 law enforcement positions nationwide. More than $125 million will be awarded nationally, including nearly $45 million to fund 356 new school resource officer positions. The grant for the Metropolitan Police Department, effective this month, is to be used to address street crime, specifically, robberies involving electronics.
Last year, MPD received $625,000 under the COPS hiring program.
“In the wake of past tragedies, it's clear that we need to be willing to take all possible steps to ensure that our kids are safe when they go to school,” said Attorney General Eric Holder. “These critical investments represent the Justice Department's latest effort to strengthen key law enforcement capabilities, and to provide communities with the resources they need to protect our young people. Especially in a time of increased challenges and limited budgets, our top priority must always be the safety and well-being of our children.”
“While we have made dramatic progress in fighting violent crime in the District of Columbia over the past decade, we have seen a troubling increase in street robberies targeting smartphones and other electronics,” said U.S. Attorney Machen. “This $1.25 million grant will allow our partners at the Metropolitan Police Department to more effectively confront this threat with 10 additional police officers. This year’s grant doubles what MPD received last year and demonstrates the Justice Department’s commitment to protecting the people of the District of Columbia from violent crime.”
“In cities around the country, criminals are focused on the robbery and theft of small personal electronics, which are almost as good as cash,” said Cathy L. Lanier, Chief of the Metropolitan Police Department. “The Obama Administration has already provided critical support in our effort to get cellular service providers to change their practices to discourage the easy resale of stolen phones. This COPS grant will be invaluable in helping us to put more officers on the street to address this crime that all too often turns violent.”
“The COPS Office is pleased to assist local law enforcement agencies throughout the country address their most critical public safety issues,” said Joshua Ederheimer, Acting Director of the COPS Office. “Funding from this year’s program will allow many cities and counties to apply new sworn personnel to issues related to violent crime, property crime, and school safety.”
The COPS Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides the salary and benefits for officer and deputy hires for three years.
Grantees for the 2013 hiring program were selected based on their fiscal needs, local crime rates, and their community policing plans. There was an additional focus this year on agencies requesting assistance in developing school safety programs that would include the hiring of a school resource officer. School resource officer positions funded by the COPS Office are sworn law enforcement positions that work within a school district or facility, interacting directly with school administrators and students.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
For the entire list of grantees and additional information about the 2013 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
13-340Member of Violent, Multi-Million Dollar Jewelry Theft Ring Sentenced to More Than Eight YearsRead the Press Release
NEWPORT NEWS, Va. – Luis Carlos Muchado, 34, of Richmond, Va., was sentenced today to 97 months in prison for his participation in a violent and highly sophisticated jewelry theft ring that operated out of Richmond.
Dana J. Boente, Acting U.S. Attorney for the Eastern District of Virginia; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; and Carl J. Vasilko, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement following the sentencing by District Court Judge Arenda L. Wright Allen.
According to court documents, co-defendant Alexander Cuadros-Garcia, 37, from Colombia, led the organized criminal group that stole more than $4.6 million in jewelry from victims in Virginia and at least four other states, including New York, New Jersey, North Carolina and Maryland. In March 2012, Cuadros-Garcia and Muchado were charged along with six other members of the Richmond-based ring. Members regularly conducted lengthy surveillance on jewelry stores to identify vulnerable individuals and then follow their targets back to the individuals’ hotel or home.
In most of the robberies, several men would suddenly appear as the victims approached or entered their car, punch out the car’s windows, threaten the victims at knife-point and steal the victims’ merchandise. In addition, the robbers would puncture the victims’ car tires and steal their cell phone to reduce the chance of pursuit or apprehension. After a successful robbery, members of the ring would travel to New York to sell the merchandise to businessmen, who coordinated re-selling the stolen property or melting it down for future use. Members of the ring then laundered the proceeds through bank accounts and businesses.
Co-defendants Cuadros-Garcia, Leonardo Ortiz, Lucesita Argueta, Raul Antonio Escobar-Martinez, William Leandro Herrera-Bohorquez, Jose Alfredo Rivero-Garcia, and Juanita Diaz previously pleaded guilty for their roles in the theft ring. Escobar-Martinez and Herrera-Bohorquez were sentenced on March 7 and March 14, 2013, respectively, to serve 87 months in prison. Rivero-Garcia was sentenced on July 24, 2013, to 37 months in prison. Argueta was sentenced on September 18, 2013, to 108 months in prison. Diaz was sentenced on September 18, 2013, to serve 12 months of home confinement.
The investigation of this case was led by the ATF’s Washington Field Division, with the assistance of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the police departments in Williamsburg, Virginia Beach, Henrico County, Chesterfield, Prince William County and Fairfax County in Virginia, along with the Virginia State Police; the Baltimore County, Md., Police Department; the Port Authority of New York and New Jersey; the New York City Police Department; and the police departments in Rutherford, N.J., and Gwinnett County, Ga.; and the Morris County, N.J. Prosecutor’s Office.
Assistant U.S. Attorney Eric M. Hurt of the Eastern District of Virginia and Trial Attorney Jerome M. Maiatico of the Criminal Division’s Organized Crime and Gang Section prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Manhattan U.S. Attorney Announces Arrests of Two Former U.S. Soldiers and One Former German Soldier for Conspiracy to Murder A DEA AgentRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Michele M. Leonhart, the Administrator of the United States Drug Enforcement Administration (“DEA”), today announced the arrests of three defendants – JOSEPH MANUEL HUNTER and TIMOTHY VAMVAKIAS, both citizens of the United States, and DENNIS GOGEL, a citizen of Germany. HUNTER is expected to arrive in the Southern District of New York this evening and will be presented before a U.S. Magistrate Judge in Manhattan federal court tomorrow. VAMVAKIAS and GOGEL arrived in the Southern District of New York yesterday and were presented in U.S. Magistrate Court yesterday afternoon. As part of the same case, SLAWOMIR SOBORSKI and MICHAEL FILTER, citizens of Poland and Germany, respectively, were arrested in Estonia at the request of the United States on September 25, 2013.
HUNTER, VAMVAKIAS, and GOGEL are charged in five separate counts with conspiracy to import cocaine into the United States; conspiracy to murder a law enforcement agent and a person assisting a law enforcement agent; conspiracy to kill a person to prevent communications to law enforcement agents; conspiracy to possess a firearm in furtherance of a crime of violence; and conspiracy to distribute cocaine on board an aircraft. SOBORSKI and FILTER are charged with conspiracy to import cocaine into the United States and conspiracy to distribute cocaine on board an aircraft.
On September 25, 2013, the DEA’s Special Operations Division (SOD), Bilateral Investigative Unit (BIU) Narco-Terrorism Group (NTG), concluded a long-standing undercover operation conducted in Asia, Africa, the Caribbean, Europe and elsewhere. HUNTER was arrested in Thailand; VAMVAKIAS and GOGEL were arrested in Liberia and all three subsequently were expelled to the United States. SOBORSKI and FILTER were arrested in Estonia, where they remain, pending extradition to the United States.
Manhattan U.S. Attorney Preet Bharara said: “The bone-chilling allegations in today's Indictment read like they were ripped from the pages of a Tom Clancy novel. The charges tell a tale of an international band of mercenary marksmen who enlisted their elite military training to serve as hired guns for evil ends. Three of the defendants were ready, willing and eager to take cold hard cash to commit the cold-blooded murders of a DEA agent and an informant. Thanks to the determined, skillful and intrepid efforts of the DEA's Special Operations Division, an international hit team has been neutralized by agents working on four continents.”
DEA Administrator Michele M. Leonhart said: “The targets of this investigation were hardened global criminals involved in everything from drug and arms trafficking to contract assassinations. Besides being international cocaine traffickers, members of this criminal organization conspired in an elaborate scheme to murder a DEA Special Agent and an informant for a six figure payday. Their intent was to commit the most serious and ruthless crime that can be directed against any law enforcement officer, and one which has our highest investigative priority. I wish to thank our foreign law enforcement partners for their outstanding efforts and partnership in completely dismantling this sophisticated and dangerous international criminal enterprise.”
According to the Indictment against HUNTER, VAMVAKIAS, GOGEL, SOBORSKI, and FILTER unsealed today:
All five defendants have previously served in the armed forces of their respective nations. HUNTER and VAMVAKIAS served in the U.S. Army until 2004; GOGEL and FILTER served in the German armed forces until 2010 and 2009, respectively, and SOBORSKI served in the Polish armed forces until 2011. HUNTER served as a sniper instructor and a senior drill sergeant, training other soldiers in marksmanship and tactics; VAMVAKIAS attained the rank of sergeant and served both as an infantryman and a military police officer; GOGEL, SOBORSKI and FILTER were trained as snipers.
Since leaving the U.S. Army in 2004, HUNTER has acted as a “contract killer” and successfully arranged for the murder of a number of people.
During meetings in Asia, Africa, and the Caribbean, beginning in January 2013 and continuing through late September 2013, HUNTER communicated with two confidential sources (the “CSs”) working with the DEA, who purported to be Colombian narcotics traffickers. HUNTER agreed to serve as the head of security for the CSs’ purported narcotics trafficking organization, and assembled a “security team” consisting of VAMVAKIAS, GOGEL, FILTER, and SOBORSKI. HUNTER also told the CSs that he had previously been involved in contract killings – referred to as “bonus jobs” – and that some team members wanted to do as much “bonus work” as possible.
HUNTER and his co-defendants thereafter agreed, in meetings and communications with the CSs, to provide security and surveillance services to the narcotics trafficking organization. Furthermore, HUNTER, VAMVAKIAS, and GOGEL agreed to commit murder-for-hire in Liberia by assassinating both a Special Agent of the DEA and a person who purportedly was providing information to the DEA about the CSs’ narcotics trafficking organization. In exchange for the murders, HUNTER, VAMVAKIAS, and GOGEL were together to be paid approximately $700,000, and HUNTER was to receive an additional $100,000 for his leadership role. Communications between the defendants and the CSs occurred by telephone, over e-mail, and in a series of surreptitiously audio-recorded and videotaped meetings over an approximately nine-month period.
HUNTER and his four co-defendants provided a variety of services to the CSs’ purported narcotics organization. In late March 2013, in Thailand, at HUNTER’s direction, GOGEL, FILTER, and SOBORSKI surveilled a vessel on behalf of the CSs’ purported narcotics trafficking organization. In April 2013, in Mauritius, at the direction of the CSs, GOGEL, FILTER, and SOBORSKI provided security for a meeting at which the participants discussed the distribution of illegal narcotics to the United States. In late June 2013, in the Bahamas, VAMVAKIAS, GOGEL, FILTER, and SOBORSKI conducted surveillance of a purported U.S.-registered aircraft at the direction of a third CS (“CS-3”) working with the DEA, who posed as a member of the CSs’ narcotics trafficking organization. CS-3 informed the defendants that the aircraft was to be loaded with 300 kilograms of cocaine to be shipped to New York.
With respect to the murder-for-hire scheme, in mid-May 2013, at a meeting with the three CSs in Thailand, HUNTER,
VAMVAKIAS, GOGEL, and SOBORSKI were told that a “bonus job” – that is, a contract killing – was in the offing, due to a leak within the CSs’ narcotics trafficking organization. In late May 2013, in e-mail communications, HUNTER confirmed that his team would be willing to murder both a U.S. law enforcement agent and a source (a boat captain) who was providing information to U.S. law enforcement authorities. HUNTER confirmed by e-mail that his team would kill both the DEA agent and the informant who was providing information to law enforcement about the CSs’ narcotics trafficking organization. At a meeting in late June 2013, in the Bahamas, CS-3 explained to VAMVAKIAS and GOGEL that “the job is to kill a U.S. DEA agent and a source with the DEA,” who would be located in Liberia. VAMVAKIAS and GOGEL discussed the weapons that could be used and masks to be worn for the murders, and VAMVAKIAS stated that it would be better to “hit the agent first” and then “the snitch.” In early July 2013, HUNTER sent via e-mail a list of the items needed for the murders, including “[t]wo Submachine Guns with silencers . . .[t]wo .22 pistols with Silencers.”
In mid-August 2013, at a meeting in Thailand, HUNTER told CS-3 that VAMVAKIAS and GOGEL would commit the murders. HUNTER, VAMVAKIAS, and GOGEL discussed in detail the weapons that would be used and the possibility of entering Liberia without having their passports stamped. They suggested that CS-3 fly them out of the country via private plane following the murders. VAMVAKIAS stated that among other weapons, a sub-machine gun and two .22 caliber pistols would be needed for the murders, and CS-3 agreed to deliver the weapons to Liberia. The next day, at a meeting with GOGEL, CS-3 confirmed that an order for the requested weapons had been made. Later that same day, GOGEL met again with CS-3 and provided CS-3 with two highly sophisticated latex facemasks, which can make the wearer appear to be of another race, for CS-3 to transport to Liberia.
In late September 2013, GOGEL and VAMVAKIAS arrived in Liberia to commit the planned murders-for-hire.
HUNTER, 48, VAMVAKIAS, 42, GOGEL, 27, FILTER, 29, and SOBORSKI, 40, have each been charged with conspiracy to import cocaine into the United States (Count One). HUNTER, VAMVAKIAS, and GOGEL are also charged with conspiracy to murder a law enforcement agent and a person assisting a law enforcement agent (Count Two); conspiracy to kill a person to prevent communications to law enforcement agents (Count Three); and conspiracy to possess a firearm in furtherance of a crime of violence (Count Four). VAMVAKIAS, GOGEL, FILTER, and SOBORSKI are also charged with conspiracy to distribute cocaine on board an aircraft (Count Five). Each count carries a maximum penalty of life imprisonment. The case is assigned to U.S. District Judge Laura Taylor Swain.
The arrests and transfers of the defendants were the result of the close cooperative efforts of the United States Attorney’s Office for the Southern District of New York; DEA’s SOD; DEA’s Bangkok, Ghana, Pretoria, Bucharest, Manila, Nassau and Copenhagen Offices; the Royal Thai Police Narcotics Suppression Bureau and Crime Suppression Division; Royal Thai Immigration; the Royal Thai Attorney General's Office; Republic of Liberia’s National Security Agency; the Republic of Liberia’s Attorney General's Office; the Estonian Police and Border Guard; the Estonian National Criminal Police, Investigative Bureau; the Estonian State Prosecutor’s Office; the Royal Bahamas Police Force and Drug Enforcement Unit; the Romanian National Police; Interpol; and the U.S. Department of Justice Office of International Affairs.
This prosecution is being handled by the Office's Terrorism and International Narcotics Unit. Assistant United States Attorneys Michael Lockard, Aimee Hector and Anna Skotko are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Joseph Hunter, et al S7 Indictment
Loan Officer and Straw Purchaser Admit Roles in Multimillion-Dollar Mortgage FraudRead the Press Release
CAMDEN, N.J. – A loan officer and a straw purchaser today admitted they conspired to defraud financial institutions as part of a multimillion-dollar mortgage fraud scam to make illegal profits on over-developed condominiums in the Wildwood, N.J., area, U.S. Attorney Paul J. Fishman announced.
Michelle Martinez, 49, of Brick, N.J., and Dana Rummerfield, 47, of Los Angeles, Calif., each pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court. Martinez pleaded guilty to an information charging her with conspiracy to commit wire fraud. Rummerfield pleaded guilty to an information charging him with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering.
According to documents filed in this case and statements made in court:
Conspirators identified homes in Wildwood and Wildwood Crest, N.J., and recruited straw buyers to purchase those properties at inflated rates. The straw buyers had good credit scores, but lacked the financial resources to qualify for mortgage loans. Martinez created fraudulent loan applications that contained false information about the straw buyers’ employment, income, assets and intended use of the properties. Martinez’s actions were designed to make the straw buyers appear more creditworthy than they actually were in order to induce the lenders to make the loans.
Martinez and her conspirators caused fraudulent mortgage loan applications in the name of the straw buyers, including the supporting documents, to be submitted to mortgage brokers that the brokers knew were false. Once the loans were approved and the mortgage lenders sent the loan proceeds in connection with real estate closings, Martinez’ conspirators took a portion of the proceeds, having funds wired or checks deposited into various accounts they controlled from the fraudulent mortgage loans and/or lines of credit on several properties. They also distributed a portion of the proceeds to other members of the conspiracy for their respective roles.
Rummerfield and others falsified his loan application with respect to his employment, income, and assets in order to cause the lender to make a loan to Rummerfield for a property he was purchasing in Wildwood Crest, N.J. Rummerfield took a portion of the fraudulent mortgage proceeds by having a check totaling $100,000 deposited into an account for Hot House Properties, a company he controlled.
The wire fraud conspiracy charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. The money laundering conspiracy carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Martinez and Rummerfield are scheduled to be sentenced on March 12, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and IRS – Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, Newark field office, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Jacqueline M. Carle of the U.S. Attorney’s Office Criminal Division in Camden.
13-369
Defense counsel: Michelle Martinez: Paul A. Sarmousakis Esq., Avalon, N.J.
Dana Rummerfield: David Shapiro Esq., PhiladelphiaMartinez Information
Rummerfield InformationLas Vegas Escrow Officer Convicted in Mortgage Fraud ConspiracyRead the Press Release
LAS VEGAS, Nev. – Following a two-week jury trial, a Las Vegas real estate escrow officer was convicted today of conspiracy and fraud charges for her involvement in a mortgage fraud scheme that caused millions of dollars in losses to the lenders and financial institutions, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Theresa Marcianti, 60, of Las Vegas, was convicted of one count of conspiracy to commit bank, mail, and wire fraud, two counts of bank fraud, and one count of wire fraud, and is scheduled to be sentenced on Dec. 10, 2013, at 10:00 a.m. She faces up to 20 years in prison and a $250,000 fine on the conspiracy count, and up to 30 years in prison and a $1 million fine on each bank fraud and wire fraud count.
“Over the last five years, we have made the prosecution of mortgage fraud cases a priority,” said U.S. Attorney Bogden. “This type of fraud was a catalyst to the real estate crisis in Nevada. Punishing those criminals for their actions should send a strong message to others who are looking to profit from the misfortune of others.”
According to the indictment and evidence presented to the jury during the trial, from about 2003 to 2008, Marcianti, a real estate escrow officer who worked for Lawyer’s Title and National Alliance Title, conspired with others to trick lenders into making home loans through the use of false statements. The conspirators cheated lenders by using straw buyers to buy homes, submitting false information to lenders to make it appear that the straw buyers qualified for the loans, and taking a portion of the loans for their personal gain. Marcianti helped the co-conspirators submit the false information to the lenders to obtain the mortgage loans.
The conspirators in the scheme obtained control of approximately 227 properties which had a total purchase price of more than $100 million. The exact number of fraudulent transactions in which Marcianti was involved and the losses for which she is responsible will be determined at sentencing in December.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorneys Daniel R. Schiess and Kimberly M. Frayn.
This case was handled in connection with the President's Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.Lake Mills Man Pleads Guilty to Distributing and Receiving Child PornographyRead the Press Release
A man who distributed and received child pornography pled guilty on September 25, 2013, in federal court in Sioux City.
Daniel Mines, age 39, from Lake Mills, was convicted of one count of distribution of child pornography and one count of receipt of child pornography.
At the plea hearing, Mines admitted that, between October 2010 and March 2011, he distributed and received child pornography. In a plea agreement, Mines admitted he used cell phones to trade child pornography with others.Sentencing before United States District Court Judge Mark W. Bennett will be set after a presentence report is prepared. Mines was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Mines faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 40 years’ imprisonment, a $500,000 fine, a $200 special assessment, and supervised release for 5 years to life following his imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation and the Federal Bureau of Investigation.This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 13-3017.
Kyle Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Kyle, South Dakota, man convicted of Assault by Striking, Beating and Wounding and Simple Assault was sentenced on September 16, 2013, by Chief Judge Jeffrey L. Viken, U.S. District Court.
William Lawrence Montileaux, a/k/a Bill Montileaux, age 39, was sentenced to 2 years of probation and a $20 special assessment to the Federal Crime Victims Fund.
On December 2, 2012, near Kyle, Montileaux chased the victim around the victim’s residence and assaulted him by firing at him with a shotgun. The victim sustained several wounds as a result of the assault and pellets from the shotgun. Montileaux pled guilty to the charges on July 1, 2013.
This case was investigated by the Bureau of Indian Affairs Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Special Assistant U.S. Attorney Laura A. Shattuck prosecuted the case.Kyle Bradley Anderson Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on September 27, 2013, before U.S. District Judge Donald W. Molloy, KYLE BRADLEY ANDERSON, a 23-year-old resident of Missoula, was sentenced to a term of:
Prison: 41 months
Special Assessment: $100
Supervised Release: 5 years
ANDERSON was sentenced in connection with his guilty plea to conspiracy to distribute heroin.
In an Offer of Proof filed by Assistant U.S. Attorney Tara J. Elliott, the government stated it would have proved at trial the following:
In June 2012, a Confidential Informant (CI) provided law enforcement with specific information regarding ANDERSON. The CI would have testified that ANDERSON boasted about his ability to obtain large amounts of cocaine and heroin. ANDERSON also asked the CI if he would be willing to be a courier in his drug trafficking organization.
The CI would have testified ANDERSON informed the CI he routinely received approximately 30 ounces of cocaine every two weeks from his supplier in San Diego. ANDERSON had five to six dealers who he would distribute the rest of the cocaine to in the Missoula area. ANDERSON also told the CI that on his most recent delivery, he received $17,000 worth of heroin along with 30 ounces of cocaine.
An FBI Undercover Agent (UCA)) who was introduced to ANDERSON would have testified that ANDERSON advised the UCA of his operation and that his supplier resided in San Diego and had a direct connect to an unidentified Mexican Cartel in California.
On September 4, 2012, a controlled purchase of 32 grams of heroin for $5,000 was made from ANDERSON in Missoula. The 32 grams of heroin was collected as FBI evidence. The heroin field tested positive and was submitted to the DEA lab for further analysis.
A second CI would have testified that he supplied ANDERSON with over one kilogram of heroin from approximately December 2010 through November of 2012 and that ANDERSON distributed that heroin to several other individuals.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that ANDERSON will likely serve all of the time imposed by the court. In the federal system, ANDERSON does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
Justice Department Settles Immigration-related Discrimination Claim Against Staffing CompanyRead the Press Release
The Justice Department announced today that it has reached an agreement with Paramount Staffing, a staffing company based in Northbrook, Ill., resolving an allegation that the company violated the anti-discrimination provision of the Immigration and Nationality Act (INA) by requesting more or different documents from individuals during the employment eligibility verification processes based on the individuals’ citizenship status.
The department’s investigation concluded that Paramount Staffing’s Hanover Park, Ill., branch routinely required specific, DHS-issued documentation from lawful permanent residents for the employment eligibility verification processes (Form I-9 and E-Verify) while not making similar demands of U.S. citizens. The anti-discrimination provision of the INA prohibits employers from using discriminatory documentary policies, procedures or requirements based on citizenship status or national origin when initially determining or subsequently re-verifying an employee’s authorization for employment.
Paramount Staffing cooperated with the department’s investigation and has agreed to pay $21,100 in civil penalties to the United States, undergo Justice Department training on the anti-discrimination provision of the INA, and be subject to monitoring of its employment eligibility verification practices for a period of 18 months. The case settled prior to the filing of a complaint.
“The INA’s anti-discrimination provision requires employers to treat individuals in a nondiscriminatory manner during the employment eligibility verification processes,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights. “We commend Paramount Staffing for taking immediate steps to rectify the issues raised in the department’s investigation.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. For more information about protections against employment discrimination under the immigration laws, call the OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired), call the OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired), sign up for a free webinar at www.justice.gov/about/osc/webinars.php , email [email protected] or visit the website at www.justice.gov/crt/about/osc
Justice Department Settles Citizenship Status Discrimination Claim Against IBMRead the Press Release
The Justice Department announced today that it reached an agreement yesterday with International Business Machines Corporation (IBM) resolving allegations that the company violated the anti-discrimination provision of the Immigration and Nationality Act (INA) when it placed online job postings for application and software developers that contained citizenship status preferences for F-1 and H-1B temporary visa holders. F-1 visas are issued to foreign students studying in the United States, and H-1B visas are issued to foreign nationals with technical expertise in specialized fields.
Under the INA, employers may not discriminate on the basis of citizenship status unless required to comply with law, regulation, executive order or government contract. Although IBM’s job postings were for positions that would ultimately require the successful candidate to relocate overseas, the anti-discrimination provision of the INA does not permit employers to express or imply a preference for temporary visa holders over U.S. workers, such as U.S. citizens and lawful permanent residents, for any employment opportunity in the United States.
Under the settlement agreement, IBM has agreed to pay $44,400 in civil penalties to the United States. IBM further agreed to revise its hiring and recruiting procedures and train its human resources personnel to ensure compliance with the INA, and to be subject to reporting requirements for a period of two years.
“Employers must give all eligible candidates the equal opportunity to compete for employment,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “The department is committed to ensuring employers do not unlawfully discriminate against U.S. citizens and other work-authorized individuals based on their citizenship status.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. For more information about protections against employment discrimination under the immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2525, TTY for hearing impaired), call OSC’s employer hotline at 1-800-255-8155 (1-800-362-2735, TTY for hearing impaired), sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php ; email [email protected] ; or visit OSC’s website at www.justice.gov/crt/about/osc .
Justice Department Reaches Settlement with Plaza Home Mortgage Inc. to Resolve Allegations of Mortgage Lending DiscriminationRead the Press Release
The Justice Department announced today that Plaza Home Mortgage Inc. (Plaza) of San Diego will pay $3 million to aggrieved borrowers as part of a settlement to resolve allegations that it engaged in a pattern or practice of discrimination on the basis of race and national origin.
The settlement also requires Plaza to establish race- and national origin-neutral standards for the assessment of broker fees, monitor its wholesale mortgage loans for potential disparities based on race and national origin, conduct fair lending training and continue to operate a community enrichment program designed to address the lack of affordable housing and lending products in minority and underserved communities nationwide.
The settlement, which is subject to court approval, was filed in conjunction with the Justice Department’s complaint in the U.S. District Court for the Southern District of California. The complaint alleges that Plaza charged thousands of African-American and Hispanic borrowers higher fees than white borrowers on wholesale mortgage loans in violation of the Fair Housing Act (FHA) and Equal Credit Opportunity Act (ECOA). Plaza cooperated fully with the Justice Department’s investigation into its lending practices and agreed to settle this matter without contested litigation.
“Today’s settlement demonstrates that the Civil Rights Division is committed to ensuring that all lenders, including wholesale lenders, comply with the fair lending laws,” said Jocelyn Samuels, Acting Assistant Attorney General for the Justice Department’s Civil Rights Division. “We commend Plaza for working cooperatively with the Justice Department in reaching an appropriate resolution of this case.”
The lawsuit originated from a 2011 referral by the Federal Trade Commission (FTC) to the Justice Department’s Civil Rights Division.
The proceeds of the settlement will be used to compensate the African-American and Hispanic victims of Plaza’s alleged discrimination. The proposed settlement provides for an independent administrator to contact and distribute payments at no cost to borrowers whom the Justice Department identifies as victims. Borrowers who are eligible for compensation will be contacted by the administrator. The department will make a public announcement and post contact information on its website once the administrator begins contacting victims.
“It is patently wrong for a lending institution to require African-American and Hispanic homebuyers to pay more for their mortgages than white borrowers,” said Laura Duffy, U.S. Attorney for the Southern District of California. “We are happy to be able to make this right for the victims, and to send a message that we will protect people of all races and national origins from injustice of any kind.”
The Justice Department’s enforcement of fair lending laws is conducted by the Fair Lending Unit of the Housing and Civil Enforcement Section in the Civil Rights Division. Since the Fair Lending Unit was established in February 2010, it has filed or resolved 27 lending matters under the FHA, ECOA and the Servicemembers Civil Relief Act. The settlements in these matters provide for a minimum of $660 million in monetary relief for impacted communities and more than 300,000 individual borrowers. The Attorney General’s annual reports to Congress subject to ECOA highlight the department’s accomplishments in fair lending and are available at www.justice.gov/crt/publications/
The Civil Rights Division, the U.S. Attorney’s Office for the Southern District of California, and the FTC are members of the Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information on the task force, visit www.StopFraud.gov
A copy of the complaint, as well as additional information about fair lending enforcement by the Justice Department, can be obtained from the Justice Department’s website at www.justice.gov/fairhousing.
Jackson County Man Sentenced on Methamphetamine ConspiracyRead the Press Release
On September 27, 2013, Anthony R. Renth, 46, of Murphysboro, Ill., was sentenced in United States District Court in Benton on a one-count indictment charging conspiracy to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
Renth, who had previously pled guilty to the methamphetamine offense, was sentenced to 204 months in prison, to be followed by 6 years of supervised release, and fined $300. The offense occurred between June 2012, and November 1, 2012, in Jackson and Union Counties. Evidence at the plea and sentencing hearings established that Renth provided approximately 144 grams of pseudoephedrine to others to use during the manufacture of methamphetamine. Renth received an enhanced sentence based on his classification as a Career Offender.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Union County Sheriff’s Office, Murphysboro Police Department, and Drug Enforcement Administration.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Irving Spotted Eagle, Jr. Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on September 26, 2013, before Chief U.S. District Judge Dana L. Christensen, IRVING SPOTTED EAGLE, JR., a 27-year-old resident of Billings and an enrolled member of the Blackfeet Tribe of Indians, was sentenced to a term of:
Prison: 21 months
Special Assessment: $100
Supervised Release: 3 years
SPOTTED EAGLE was sentenced in connection with his guilty plea to assault resulting in serious bodily injury.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
On November 12, 2011, SPOTTED EAGLE was so angry that S.T. would not return his amorous advances that he pinned her against a wall in his house and repeatedly punched her until his knuckles started to bleed. As she tried to flee the house, SPOTTED EAGLE grabbed S.T. by the hair and continued assaulting her. He did not stop until a neighbor began yelling at him to stop. S.T. was transported to the hospital, where she was treated for a concussion, nasal bone fracture, and blunt force trauma to her face.
The assault occurred within the exterior boundaries of the Blackfeet Indian Reservation.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that he will likely serve all of the time imposed by the court. In the federal system, he does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Federal Bureau of Investigation and the Blackfeet Law Enforcement.
Inmate Pleads Guilty to Escaping from Marion Prison Camp 13 Years AgoRead the Press Release
Donald E. Bruce, 75, of Elberfeld, Indiana, pled guilty today in United States District Court in Benton on an indictment charging him with escaping from the Federal Prison Camp at Marion, Illinois, 13 years ago, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The indictment, returned by a Federal Grand Jury on July 9th, alleged that the offense occurred on October 6, 2000. At that time, a Criminal Complaint was filed and an arrest warrant issued for Bruce. He was arrested on that warrant on June 28, 2013, in Indiana by an officer of the Oakland City, Indiana, Police Department after a warrant check revealed the existence of the federal arrest warrant.
At the time of his escape, Bruce was serving a 135 month sentence for conspiring to possess with intent to distribute methamphetamine and had over 9 years of that sentence left to serve. Bruce now faces an additional 5 years in prison, a $250,000 fine, and 3 years of supervised release to follow his incarceration.
Bruce was again remanded to the custody of the United States Marshal to await sentencing which was set for November 18th at 10:00 a.m. at the United States Courthouse in Benton.
The case was investigated by the United States Marshal’s Service and is being prosecuted by Assistant United States Attorney James M. Cutchin.
Informational: Federal Court Initial AppearancesRead the Press Release
The United States Attorney(s Office announced that during a federal court session in Missoula, on September 27, 2013, before U.S. Magistrate Judge Jeremiah C. Lynch, the following individuals were arraigned:
PHILLIP MORRIS, a 42-year-old resident of Jeffersonville, Indiana, and JEFFREY WOOLLEY, a 53-year-old resident of Nicholasville, Kentucky, appeared on charges of child exploitation enterprise and conspiracy to advertise child pornography. They are currently detained. If convicted of these charges, they each face possible penalties of a mandatory minimum of 20 years in prison and could be sentenced to life, a $250,000 fine, and lifetime supervision. Assistant U.S. Attorney Cyndee L. Peterson is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
The defendants pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Indictment: Restaurant Manager in Ottawa, Kan. Harbored Undocumented WorkersRead the Press Release
KANSAS CITY, KAN. - The manager of a restaurant in Ottawa, Kan., has been charged with harboring undocumented workers, U.S. Attorney Barry Grissom said today.
Alex Sanchez, Jr., 33, manager of El Mezcal Mexican Restaurant in Ottawa, Kan., is charged with four counts of harboring undocumented aliens for financial gain and five counts of encouraging undocumented aliens to reside in the United States for financial gain. The crimes are alleged to have occurred at various times from Sept. 7, 2011, to June 14, 2013, in Franklin County, Kan.
The indictment alleges the investigation began in June 2011 when the Department of Homeland Security received information that El Mezcal was not completing I-9 Employment Eligibility Verification forms as required. A DHS agent reviewed the restaurant’s reports and discovered the restaurant did not have I-9 forms for 14 employees. On Nov. 29, 2011, DHS served a final order on Sanchez requiring him to cease violations and pay a fine.
Sanchez continued to employee persons who were not lawfully in the United States. He provided housing for undocumented employees of the El Mezcal Restaurant in Ottawa and other restaurants affiliated with Tequila, Inc. He paid undocumented workers in cash.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count. Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Identity Thief Who Burglarized Locked Mailboxes Sentenced to 3+ Years in PrisonRead the Press Release
A mail thief who broke into locked mailboxes to steal checks and identities was sentenced today in U.S. District Court in Seattle to 44 months in prison and four years of supervised release, announced U.S. Attorney Jenny A. Durkan. WILFREDO BERMUDEZ, 40, of Seattle, was arrested in November 2012 after 13 months of breaking into mailboxes in the Puget Sound region. BERMUDEZ stole mail in three different counties, including checks, driver’s licenses, and other items by breaking into victims’ mailboxes. He often threw away or destroyed the remainder of victims’ mail, and left the mailbox damaged or unusable in the process. At sentencing U.S. District Judge Richard A. Jones noted the many victims who had mail stolen and their bank accounts violated saying, “It may seem like it is just the theft of one check, but it can be a disaster in that person’s life.”
According to records filed in the case, BERMUDEZ cashed or attempted to cash checks from 27 different victims, including a church. The loss amount in this case is nearly $80,000. After stealing the mail, BERMUDEZ would alter the payee and the amount of the stolen checks and cash them at various banks. Sometimes he made the checks payable to his own name, and on other occasions he used a stolen driver’s license and forged checks to be made payable to that identity. In some instances, he even wore a costume to make his fraud more convincing; in early November 2012, he cashed and attempted to cash forged checks referencing “heat and cold system replacement” while wearing a plumber’s outfit. BERMUDEZ was captured on surveillance video breaking in to the locked mailbox at a business plaza. The red Hummer he purchased with the proceeds of his crimes is visible in the video.
In asking for a sentence of more than four years in prison, prosecutors noted that many victims had their lives disrupted by the thefts, forcing them to make time consuming changes to various accounts, cancel vacations and change the way they use the mails. Employees of a victimized church had their paychecks delayed while the church changed bank accounts. One victim, a recent immigrant to the U.S., was pestered by creditors because BERMUDEZ had used his identity to run up big debts. BERMUDEZ has two prior state convictions for identity theft.
The lead investigative agency on the case is the U.S. Postal Inspection Service (USPIS), which was assisted by many local police agencies who responded to reports of mailbox thefts in King, Pierce and Thurston counties.
The case was prosecuted by Assistant United States Attorney Ehren Reynolds.
Houston Woman Sent to Prison for College Station Area Identity TheftRead the Press Release
HOUSTON – Tiffany Margaret Taylor, 33, has been sentenced to more than four years in federal prison following her convictions of conspiracy, bank fraud and aggravated identity theft, announced United States Attorney Kenneth Magidson.
Today, U.S. District Judge Keith Ellison sentenced Taylor to a 27-month-term for the conspiracy and bank fraud charges and a consecutive 24 months for aggravated identity theft for a total sentence of 51months. She was further ordered to serve a three-year-term of supervised release following completion of that prison term and to pay $21,640.40 in restitution.
The investigation began when the U.S. Postal Inspection Service (USPIS) started receiving multiple complaints from individuals residing in the College Station area regarding stolen mail, credit cards, checks and other items containing personal identifiers. Many of the credit card charges took place in College Station.
Agents were able to obtain surveillance videos and talk to eye witnesses who saw Taylor and her co-conspirator, Joshua Lee Miller, using victims’ credit cards at the Post Oak Mall in College Station. Taylor and Miller were subsequently arrested and their vehicle was searched, at which time they were found to be in possession of credit cards, fake identities, merchandise purchased with various victim’s credit cards and methamphetamine.
Miller, 32, remains in custody pending sentencing next month.
The investigation leading to the charges in this case was conducted by the USPIS. Assistant United States Attorney Julie Searle prosecuted the case.
Grand Junction Man Found Guilty of Sending Interstate Threatening CommunicationsRead the Press Release
Defendant threatened to kill children, police officers and their families
DENVER – Kenneth Royal Wheeler, age 32, of Grand Junction, Colorado, was found guilty yesterday following a four-day jury trial before U.S. District Court Judge William J. Martinez of two counts of sending interstate threatening communications, U.S. Attorney John Walsh and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Kumar Kibble announced. The jury deliberated for 75 minutes before reaching a verdict. Wheeler is scheduled to be sentenced by Judge Martinez on January 15, 2014.
Wheeler was first charged by Criminal Complaint on March 20, 2012. He was indicted by a federal grand jury in Denver on March 22, 2012. A superseding indictment was obtained on May 21, 2013. The jury trial began on September 23, 2013. The verdict was handed down on September 26, 2013.
According to court documents, as well as facts presented to the jury during trial, a person called the Grand Junction Police Department to report threatening Facebook posts. The Grand Junction Police Department, working with Homeland Security Investigations, conducted an investigation and determined that the threatening posts were made by Wheeler. It was also determined the Wheeler was in Rome, Italy when he made the posts. In fact, one of the posts stated that Wheeler believed he could post anything he wanted and not be prosecuted because he was not physically in the United States.
Among Wheeler’s posts were instructions for people to kill children at a local Daycare. He also told his “followers” to kill specific police officers, as well as their families and children. In one post Wheeler said: “the americans cant punish me for what i say here in rome italy on facebook. so. kill cops. drown them in the blood of their children, hunt them down and kill their entire blood lines.”
Assistant U.S. Attorney Colleen Covell said during her closing arguments to the jury: “Ladies and gentlemen, the First Amendment allows you to burn a flag in protest of the government, but it doesn’t allow you to threaten to burn the faces of the children of the Grand Junction Police Department.”
Wheeler was arrested at the Grand Junction Airport once he returned to the United States from Rome.
The defendant faces not more than 5 years in federal prison, and up to a $250,000 fine, per count, for each of the two counts of sending interstate threatening communications.
This case was investigated by Homeland Security Investigations and the Grand Junction Police Department.
The jury trial was handled by Assistant U.S. Attorneys Colleen Covell and David Tonini. Assistant U.S. Attorney Michelle Heldmyer in the U.S. Attorney’s Grand Junction branch office provided substantial assistance during the investigation and pendency of the case.
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Gaithersburg Man Sentenced to Five Years in Prison for Armed Bank RobberyRead the Press Release
Robbery Committed While Defendant Was on Supervised Release for a Previous Bank Robbery
Baltimore, Maryland – U.S. District Judge U.S. District Judge J. Frederick Motz sentenced Ashref Abil Bannaga, age 32, of Gaithersburg, Maryland today to five years in prison, followed by five years of supervised release, for the December 7, 2011, armed bank robbery of the Capitol One Bank in Frederick, Maryland. At the time of the robbery, Bannaga was on federal supervised release after serving a sentence of 70 months for a 2006 Virginia bank robbery.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Captain Thomas J. Ledwell, Chief of the Frederick Police Department.
According to his plea agreement, on December 7, 2011, Bannaga entered the Capitol One Bank located at 1305 W. 7th Street in Frederick, Maryland, with a mask and a hood covering his face. Bannaga, brandishing what appeared to be a firearm, ordered the employees and customers into one general area, then demanded that the branch manager open the safe. When the branch manager could not open the safe, Bannaga, still brandishing the gun, opened a teller drawer, stole approximately $5,995 and left the bank.A witness walked into the bank as Bannaga was exiting. Bannaga showed the witness his gun and warned the witness not to do anything “stupid.” The witness saw Bannaga get into a black truck and reported the partial front tag, the fact that there were no rear tags, and a plate description to law enforcement, who located the truck in an adjacent parking lot. The rear tag of the truck was hanging on by one screw, as though it had just been reattached.
Investigation revealed that the truck had been rented by Bannaga the day before. Bannaga was employed at the time of the robbery to do construction work at the supermarket located in the same strip mall as the bank. Law enforcement recovered the clothing, mask, hat, and gloves worn by the robber, as well as most of the bank money, and the gun (a replica BB-type gun) on the construction site where Bannaga worked. Bannaga’s DNA was on the mask and the hat used during the robbery.
United States Attorney Rod J. Rosenstein praised the FBI and Frederick Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Rachel M. Yasser, who prosecuted the case.Former Union City Firefighter Sentenced for Receiving Child PornographyRead the Press Release
NEWNAN, Ga. - Justin D. Corley was sentenced today to serve five years in federal prison for receiving child pornography.
“This defendant collected a large number of horrible images and videos portraying the sexual abuse of young children. The fact that he apparently traded some of these images with other collectors while he was on duty as a municipal firefighter is particularly troubling,” said United States Attorney Sally Quillian Yates. “Mr. Corley has justly earned a significant sentence for his role in victimizing these children and by violating his public position.”
According to United States Attorney Yates, the charges and other information presented in court: In November 2011, the United States Department of Homeland Security/Homeland Security Investigations (DHS/HSI) initiated a peer-to-peer file sharing operation in an effort to identify people in the Atlanta area who were involved in receiving or distributing child pornography via the internet. HSI investigators determined that Justin Corley made child pornography files available to other collectors using a wireless internet protocol address assigned to the Union City (Ga.) Fire Department. On January 19, 2012, a federal agent downloaded files containing child pornography from Corley who was then using an internet protocol address associated with a family member.
On February 7, 2012, federal agents executed a search warrant at Corley’s home in Newnan, Ga., and seized his laptop computer. A forensic examination of Corley’s computer revealed more than 9,000 images of child pornography in the form of photographs and videos.
Corley, 31, of Newnan, Ga., has been sentenced by United States District Judge Timothy C. Batten, Sr., to five years in prison to be followed by 15 years of supervised release, and ordered to pay restitution in the amount of $1,000. Corley was convicted on these charges on July 9, 2013, after he pleaded guilty.
This case is being investigated by Special Agents from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations
Assistant United States Attorney Brent Alan Gray prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Former Rochester Resident Sentenced for Receipt of Child PornographyRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Gordon J. Plugh, 42, of Wayland, N.Y., formerly of Rochester, N.Y., who was convicted of receipt of child pornography, was sentenced to 60 months in prison and 30 years supervised release by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that in May 2005, the FBI received information that the website of the Great Plains Child Care Resource and Referral (GPCCRR) Center had been hacked and was used as a repository site for the distribution of child pornography. GPCCRR Center provided web logs which showed the visitors to particular areas of the website. The investigation into Internet Protocol addresses that had visited the hacked website led agents to interview the defendant at his residence in July 2005. Plugh voluntarily gave consent to the FBI agents to search two hard drives in his possession. Forensics performed on the hard drives revealed that they contained numerous images of child pornography.
The defendant obtained over 600 images of child pornography using the file-sharing software KaZaa during the period between May 2003 and July 2005.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig.Former EPA Senior Policy Advisor Pleads Guilty to Theft in Scheme That Cost Government Nearly $900,000-Admits Collecting Pay for Hundreds of Days He Wasn’t Working-Read the Press Release
WASHINGTON – John C. Beale, a former senior policy advisor for the U.S. Environmental Protection Agency, pled guilty today to a federal charge stemming from a long-running scheme in which he cheated the government of nearly $900,000 in pay and expenses.
The guilty plea, in the U.S. District Court for the District of Columbia, was announced by U.S. Attorney Ronald C. Machen Jr. and Arthur A. Elkins, Jr., Inspector General for the EPA.
Among other things, Beale admitted today that he kept collecting pay from the EPA after claiming he was working on a project for the CIA’s Directorate of Operations and on other efforts that kept him out of the office. In fact, Beale was not working for the CIA or for the EPA on the many days he was away. All told, between January 2000 and April 2013, Beale was absent from his duties at the EPA for about 2 ½ years in which he was drawing a salary and benefits.
For more than a dozen years, Beale engaged in a pattern and scheme of deception during which he lied to the U.S. government, his supervisors, friends, and his family to avoid performing his job at the EPA.
Beale, 64, of New York, N.Y., pled guilty to theft of government property, which carries a statutory maximum of 10 years in prison, a fine of up to $250,000, and other penalties. The parties have agreed that, under federal sentencing guidelines, the likely range is a prison sentence of 30 to 37 months and a fine of up to $60,000. In addition, Beale has agreed to pay a total of $886,186 to the EPA in restitution and to a forfeiture money judgment of another $507,207.
The plea took place before the Honorable Magistrate Judge John M. Facciola. Beale is to appear Oct. 9, 2013 for a status hearing before the Honorable Ellen S. Huvelle. A sentencing date has not yet been set.
“John Beale stole from the government for more than a decade by telling lies of outlandish proportions,” said U.S. Attorney Machen. “He dodged his work at the EPA for extended periods by claiming that he was away working on operations for the CIA. He even got a parking space for three years by falsely claiming that he had malaria. Today’s guilty plea is proof positive that lies do catch up with you and that eventually fraudsters will be held accountable for ripping off the American taxpayer.”
“The details of this remarkable story are unfathomable -- and yet they happened. An absence of even basic internal controls at the EPA allowed an individual to commit multiple frauds over a long period of time,” said Inspector General Elkins. “Thanks to the diligence of the special agents on this case, monetary restitution finally will be paid to the taxpayers. Hopefully, exposing the lax agency practices that enabled Mr. Beale to construct and prosper from a web of lies also will lead to swift reforms so such abuses can never recur.”
According to a statement of offense, signed by the defendant as well as the government, Beale was employed by the EPA from 1989 until April 30, 2013. He was assigned to the Office of Air and Radiation, a division responsible for the development of national programs, policies and regulations designed to control air pollution and radiation exposure. For much of his time at the EPA, Beale was a senior policy advisor. His duties included assisting in the planning, policy implementation, direction, and control of EPA programs. He also attended and participated in several international conferences regarding air quality issues, many in foreign countries.
In August 2000, Beale was promoted to a senior-level employee, making him among the highest-paid non-elected federal government employees.
According to the statement of offense, Beale collected $886,186 that he was not entitled to receive in various ways:
Unauthorized Absences:
From in or around 2000, continuing until April 30, 2013, Beale failed to report to work for extended periods of time and failed to submit required requests for leave for these absences. Rather, Beale falsely claimed that he was working on a project at the CIA and other matters.
According to the statement of offense, starting in approximately 2000 until in or around June 2008, Beale took about 102 days off under the auspices of his work with the CIA. From 2005 to 2007, Beale claimed to be working on a research project for the EPA. For example, the statement of offense details payments of $57,235 in travel expenses for five trips to the Los Angeles area. Beale did not need to travel to California, where he visited family members, and could have done the research work at home or at his EPA office. In fact, he never produced any written work regarding the research project, which was never completed.
Starting in June 2008, Beale failed to report to the EPA offices for about six months, either claiming to be working on the research project or spending time working for “Langley.” He never submitted a leave request for this time and continued to receive his EPA salary.
From in or around January 2010 until in or around May 2011, Beale failed to report to work at the EPA for approximately nine days, claiming he was working with the CIA. He never submitted a leave request for these days, but was paid his salary from the EPA.
In or around May 2011, Beale announced that he was retiring from the EPA. In September 2011, he and two other long-term EPA employees celebrated a retirement party on a dinner cruise on the Potomac River. Following the party, an EPA manager believed that Beale had actually retired, and the manager did not see him at the EPA offices afterward.
However, in November 2012, the manager discovered that Beale was still receiving a paycheck.
Retention Incentive Bonus:
In or around June 2000, Beale was awarded a 25 percent retention incentive bonus for three years. The purpose of the bonus was to ensure that Beale remained with the EPA, rather than leave the federal government and seek employment elsewhere. It was supposed to expire after 2003, but Beale continued to receive it through 2013.
Fraudulently Obtained Parking Benefits:
In or around January 2002, Beale claimed that, because he had contracted malaria while serving in the U.S. Army in Vietnam, he needed a parking space for work. He was awarded a parking spot, and the EPA subsidized payment for it at a rate of about $200 a month. In fact, Beale never served in Vietnam and never contracted malaria. He held onto and used the parking spot until about June 2005, at a cost of about $8,000 to the EPA.
In announcing the plea, U.S. Attorney Machen and Inspector General Elkins praised the work of those who investigated the case from the EPA Office of the Inspector General. They also acknowledged the work of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialist Donna Galindo. Finally, they commended the work of Assistant U.S. Attorney James E. Smith, who is prosecuting the case, and Assistant U.S. Attorney Catherine K. Connelly, who is assisting with forfeiture aspects of the investigation.
13-339Former Centreville Assistant Police Chief SentencedRead the Press Release
The former Centreville, Illinois, assistant chief of police was sentenced in Federal District Court on September 27, 2013, for making false statements to federal investigators, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Corey Allen, 32, was sentenced to 24 months in prison, a $100 special assessment, a $250 fine, and one year of supervised release following his prison sentence. Allen pled guilty on April 25, 2012.
Evidence presented at the sentencing hearing established that on May 3, 2012, that Corey Allen sold a .45 caliber semi-automatic pistol, along with two magazines, for $100 to Individual #1 - a registered sex offender who had previously been convicted of Aggravated Criminal Sexual Abuse.
“Corey Allen is a bright young man who has a lot going for him. It is a shame that his greed overcame his good sense when he supplied a weapon to a felon. As I have noted, I will not tolerate police misconduct in any form. While 99% of our officers are hard-working men and women who stand ready to protect us, those who abuse their oaths will be found and prosecuted.” noted United States Attorney Wigginton.
On October 11, 2012, federal investigators and Allen (who was then an officer) responded to the scene of a chase where Individual #1 had reportedly fled from the police. The federal agents advised Allen that they suspected that Individual #1 had thrown a gun while he was running and asked Allen to interview Individual #1 while the federal agents continued to search for the item that was believed to have been thrown. Unbeknownst to Allen, agents utilized recording devices to capture the conversation. Allen was recorded discussing the gun and concocting a false explanation for Individual #1 to explain why he fled. After speaking to Individual #1, Allen rejoined federal agents and lied about his conversation with Individual #1.
Allen was formally interviewed on November 30, 2012. He was told that Individual #1 said that he had obtained the gun from Allen prior to his arrest on October 11, 2012. The federal agents asked Allen whether he had provided Individual #1 with the firearm. Allen falsely stated that he did not supply the gun to Individual #1, claiming that he had no idea where Individual #1 had gotten the gun. Allen further stated that prior to October 11, 2012, he had never seen the gun before, when in truth and in fact, Allen had previously possessed the firearm and had sold the firearm to Individual #1 for $100 on May 3, 2012.
Allen was convicted of a felony offense for making false statements. However, his sentence was determined under the more serious law applicable for selling a firearm to a felon.
The investigation was conducted through the Metro East Public Corruption Task Force by agents from the Internal Revenue Service and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
Flandreau Man Indicted for Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that a Flandreau, South Dakota, man has been indicted by a federal grand jury for Failure to Pay Child Support.
Michael L. VanBeek, Jr., age 43, was indicted on September 10, 2013, for failing to pay over $28,608.00 in past due child support to three separate custodial parents. He appeared before U.S. Magistrate Judge John E. Simko on September 25, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 2 years' imprisonment and/or a $250,000 fine, 1 year of supervised release and 1 additional year upon revocation, a $100.00 assessment fee to the Federal Crime Victims Fund, and child support restitution amount owing at the time of sentencing.
The charge is merely an accusation and VanBeek is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Thomas J. Wright is prosecuting the case.
VanBeek was released on bond pending trial. A trial date has not been set.Ferriday Man Sentenced to Life, Another 275 Months in Prison for Transporting MethRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced today that Maurice T. Smith, 32, and Chavo T. Thomas, 30, both of Ferriday, were sentenced by U.S. District Judge Dee D. Drell. Smith received lifetime in prison, and Thomas received 275 months in prison and 10 years of supervised release for conspiracy to possess with the intent to distribute methamphetamine. A jury found the defendants guilty May 31, 2013.
According to evidence and testimony presented at trial, the defendants were found to have conspired to deliver methamphetamine from California to Ferriday. Smith organized the trip, and Thomas traveled to California to purchase and bring back the illegal drugs. Thomas was arrested on Oct. 28, 2011, at a Brookhaven, Miss., train station with two pounds of pure methamphetamine. Smith was arrested later in Ferriday.
“We commend the work of the law enforcement agencies who investigated this case,” Finley stated. “They were able to stop this shipment of illegal drugs before it could be sold in the Western District of Louisiana. I also want to thank the prosecutors who tried this case. My office will continue to prosecute these types of cases to the fullest extent of the law.”
“This investigation clearly demonstrates the growing strength of the Central Louisiana OCDETF partnership and its significant impact on the methamphetamine threat to our communities,” stated Michael J. Anderson, Federal Bureau of Investigation Special Agent in Charge, New Orleans Division.
Smith and Thomas were arrested as part of an Organized Crime Drug Enforcement Task Force (OCDETF) Operation “Delta Blues” investigation. The FBI-Central Louisiana Safe Streets Task Force, which is composed of the Louisiana State Police, Louisiana Department of Probation and Parole, Rapides Parish Sheriff’s Office and the Alexandria Police Department, participated in the investigation. The U.S. Marshals and the Concordia Parish Sheriff’s Office also participated in the investigation. The Southwest Mississippi Narcotics Task Force, Brookhaven (Mississippi) Police Department and the Lincoln County (Mississippi) Sheriff’s Office assisted in the defendants’ arrest.
The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Assistant U.S. Attorney James G. Cowles Jr. prosecuted the case.Fenton Man Pleads Guilty to Federal Child Sexual Exploitation OffensesRead the Press Release
A man who enticed a minor to engage in sexual activity and possessed child pornography pled guilty on September 26, 2013, in federal court in Sioux City.
Timothy Koenck, age 54, from Fenton, was convicted of one count of enticing a minor to engage in criminal sexual activity, one count of committing a felony offense involving a minor by a person required by federal and Iowa law to register as a sex offender, and two counts of possession of child pornography after having been convicted of an offense relating to sexual abuse or abusive sexual conduct involving a minor.At the plea hearing, Koenck admitted that, between 2010 and 2012, he used a cell phone and the Internet to entice a minor to engage in sexual activity and possessed child pornography. Koenck previously had been convicted of enticement of a minor and possession of child pornography in 2001-2002.
Sentencing before United States District Court Judge Mark W. Bennett will be set after a presentence report is prepared. Koenck remains in custody of the United States Marshal pending sentencing. Koenck faces a mandatory minimum sentence of 20 years’ imprisonment and a possible maximum sentence of life imprisonment, a $1,000,000 fine, a $400 special assessment, and supervised release for 5 years to life following his imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Federal Bureau of Investigation, the Iowa Division of Criminal Investigation, the Kossuth County Sheriff’s Office, and the Mower County, Minnesota, Sheriff’s Office.This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 13-3016.
Fairbanks Women sentenced in drug and money laundering conspiracyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that two women from Fairbanks, Alaska, were sentenced in federal court in Fairbanks for their role in a Fairbanks drug and money laundering conspiracy.
Fabienne Clerc, 22, and Cynthia “Cindy” Hawks, 45, from Fairbanks, Alaska, were sentenced today by Chief U.S. District Court Judge Ralph R. Beistline. Clerc was sentenced to 24 months in prison and 3 years of supervised release. Clerc had previously pled guilty to count two of an indictment charging her with money laundering conspiracy. Hawks received a sentence of 32 months in prison and 3 years of supervised release. Hawks had previously pled guilty to counts one and two in an indictment charging her with drug and money laundering conspiracy.
Clerc is the girlfriend of her co-defendant, Nathan Jackson, and Hawks is Nathan Jackson’s mother.
Clerc accompanied Jackson on heroin sales in Fairbanks and conducted financial transactions with drug proceeds on Jackson’s behalf in order to conceal the nature, location, source, or ownership of the drug proceeds. Hawks conducted heroin sales in Fairbanks, and conducted financial transactions with drug proceeds on Jackson’s behalf in order to conceal the nature, location, source, or ownership of the drug proceeds.During the investigation, law enforcement officers seized over $350,000 in cash proceeds from Jackson and his co-conspirators, as well as a 1995 Chevrolet Tahoe, 2001 Toyota 4-Runner, two 2003 Sea-Doo Personal Watercraft, and an accompanying trailer. As part of their sentence, Clerc and Hawks forfeited any ownership interest they may have had in these items.
Nathan Jackson has pled guilty in this drug and money laundering conspiracy and is scheduled to be sentenced in November 2013, for his role in the conspiracy. Hailey Jelinek, Jackson’s sister, has pled guilty in this money laundering conspiracy and is scheduled to be sentenced in October 2013, for her role in the conspiracy.
Ms. Loeffler commended the Internal Revenue Service Criminal Investigation Division, the Drug Enforcement Administration, and the Alaska State Troopers for the investigation leading to the successful prosecutions of Clerc and Hawks.