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27 September 2013
El Departamento de Justicia Realiza Acuerdo Conciliatorio con Plaza Home Mortgage, Inc. en Resolución de Alegatos de Discriminación en el Otorgamiento de Préstamos HipotecariosRead the Press Release
WASHINGTON - El Departamento de Justicia anunció hoy que Plaza Home Mortgage Inc. (Plaza) de San Diego pagará 3 millones de dólares a prestatarios agraviados como parte de un acuerdo conciliatorio en resolución de alegatos de que exhibió un patrón o una práctica de discriminación basada en raza y origen nacional.
El acuerdo conciliatorio también exige que Plaza establezca normas neutrales asociadas con la raza y el origen nacional para el cobro de honorarios de corredores, controle si sus préstamos hipotecarios mayoristas presentan posibles disparidades basadas en raza y origen nacional, lleve a cabo capacitación en el otorgamiento justo de préstamos y mantenga en marcha un programa de enriquecimiento comunitario diseñado para ocuparse del tema de la falta de viviendas económicas y productos crediticios en comunidades minoritarias y marginadas en todo el país.
El acuerdo conciliatorio, que está sujeto a aprobación del tribunal, fue presentado junto con la demanda del Departamento de Justicia en el Tribunal Federal de Distrito del Distrito Sur de California. La demanda alega que Plaza cobró a miles de prestatarios afroestadounidenses e hispanos cargos más altos que a prestatarios blancos en préstamos hipotecarios mayoristas, en violación de la Ley de Vivienda Justa [Fair Housing Act (FHA)] y la Ley de Igualdad de Oportunidades de Crédito [Equal Credit Opportunity Act (ECOA)]. Plaza cooperó plenamente con la investigación del Departamento de Justicia de sus prácticas de otorgamiento de préstamos y aceptó realizar este acuerdo sin litigio contencioso.
"El acuerdo conciliatorio de hoy demuestra que la División de Derechos Civiles se compromete a asegurar que todos los prestamistas, lo que incluye a los prestamistas mayoristas, cumplan con las leyes de otorgamiento justo de préstamos", señaló Jocelyn Samuels, Secretaria de Justicia Auxiliar Interina de la División de Derechos Civiles del Departamento de Justicia. "Felicitamos a Plaza por su colaboración con el Departamento de Justicia para lograr una resolución adecuada del caso".
La demanda se originó en una remisión de 2011 a la División de Derechos Civiles del Departamento de Justicia por parte de La Comisión Federal de Comercio [Federal Trade Commission (FTC)].
El producto del acuerdo conciliatorio se utilizará para indemnizar a las víctimas afroestadounidenses e hispanas de la supuesta discriminación por parte de Plaza. El acuerdo conciliatorio propuesto dispone que un administrador independiente se comunique con prestatarios identificados como víctimas por el Departamento de Justicia y distribuya a los mismos pagos de indemnización sin ningún costo. Los prestatarios que reúnan los requisitos para recibir compensación serán contactados por el administrador. El Departamento realizará un anuncio público y publicará información de contacto en su portal en Internet una vez que el administrador comience a comunicarse con las víctimas.
"Está claramente mal que una institución de préstamos exija que compradores de vivienda afroestadounidenses e hispanos paguen más por sus hipotecas que los prestatarios blancos", indicó Laura Duffy, Fiscal Federal para el Distrito Sur de California. "Nos complace poder corregir esto para las víctimas, y transmitir el mensaje de que protegeremos a personas de todas las razas y orígenes nacionales contra injusticias de cualquier tipo".
La coacción asociada a las leyes de otorgamiento justo de préstamos por parte del Departamento de Justicia es llevada a cabo por la Unidad de Préstamos Justos de la Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles. Desde que se estableció la Unidad de Préstamos Justos en febrero de 2010, ésta ha entablado o resuelto 27 casos de préstamos bajo la FHA, la ECOA y la Ley de Alivio Civil para los Miembros de las Fuerzas Armadas [Servicemembers Civil Relief Act]. Los acuerdos conciliatorios en estos casos proveen un mínimo de 660 millones de dólares en asistencia monetaria para comunidades impactadas y más de 300,000 prestatarios individuales. Los informes anuales del Secretario de Justicia de EE.UU. al Congreso acerca de ECOA destacan los logros del Departamento en el otorgamiento de préstamos justos y están disponibles en www.justice.gov/crt/publications/.
La División de Derechos Civiles, la Fiscalía Federal del Distrito Sur de California y la FTC son miembros de la Fuerza de Tarea de Coacción contra el Fraude Financiero. El Presidente Obama estableció la Fuerza de Tarea interagencial de Coacción contra el Fraude Financiero para llevar a cabo una iniciativa enérgica, coordinada y proactiva para investigar y enjuiciar los delitos financieros. La fuerza de tarea incluye a representantes de una amplia gama de dependencias federales, autoridades reguladoras, inspectores generales y miembros de las fuerzas del orden público estatales y locales, quienes, trabajando juntos, aprovechan un poderoso espectro de recursos de coacción penal y civil. La fuerza de tarea está trabajando para mejorar la labor en todo el poder ejecutivo federal, y con asociados estatales y locales, para investigar y enjuiciar los delitos financieros importantes, asegurar un castigo justo y eficaz para quienes cometan delitos financieros, combatir la discriminación en los mercados de préstamos y financieros, y recuperar fondos para las víctimas de delitos financieros. Para obtener más información sobre la fuerza de tarea, visite www.StopFraud.gov.
Para obtener una copia de la demanda, así como también información adicional sobre la labor del Departamento de Justicia para hacer valer las leyes de otorgamiento justo de préstamos, visite el portal del Departamento de Justicia en http://www.justice.gov/fairhousing.
East St. Louis Woman Pleads Guilty to Health Care FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on September 26, 2013, Sherri Goree, 36, of East St. Louis, IL, pled guilty to a one-count indictment charging that she engaged in a scheme to commit health care fraud. At her sentencing, Goree will face up to 10 years in prison, a fine of up to $250,000 and up to 3 years of supervised release. Sentencing has been set for January 31, 2014, at 11:00 a.m. in United States District Court in East St. Louis, Illinois.
During her plea hearing, Goree admitted that she had submitted, and caused to be submitted, false and fraudulent bills in regard to the providing of personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home. Goree admitted that she falsely billed the program for services that were supposed to have been provided for her by a family member; however, the family member was residing in Texas during times that the services were supposed to have been provided for Goree.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General; Illinois State Police; and the St. Clair County Sheriff’s Department. The case is being prosecuted by Assistant United States Attorneys Ranley R. Killian and William E. Coonan.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General or call 1-800-447-8477.
Dupo Woman Sentenced on 'Meth' CaseRead the Press Release
On September 24, 2013, Crystal D. Kellems, 38, of Dupo, Ill., was sentenced in United States District Court in Benton on a one-count superseding indictment charging conspiracy to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
Kellems, who had previously pled guilty to the methamphetamine offense, was sentenced to 130 months in prison, to be followed by 3 years of supervised release, and fined $200. The offense occurred between June 2012 and January 28, 2013, in Jackson and Randolph Counties. Evidence at the plea and sentencing hearings established that Kellems was involved with others in the manufacture of methamphetamine. During the conspiracy, Kellems obtained over 70 grams of pseudoephedrine for use in the manufacture of methamphetamine.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, and Randolph County Sheriff’s Office.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Department of Justice Awards Hiring Grants for Law Enforcement and School Safety OfficersRead the Press Release
The Department of Justice Office of Community Oriented Policing Services (COPS) today announced funding 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 list of this year’s grantees includes Oakland, Sacramento, and Alameda County, Calif.; Houston; Hartford, Conn.; Des Moines, Iowa; Milwaukee; Richland County and Charleston, S.C.; Louisville, Ky.; Akron, Ohio; Seattle, and more.
“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.”
“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 Administration put a focus on school safety at the start of this year and we’ve worked to coordinate a program that offers valuable resources to assist local law enforcement in these efforts and many others,” said Acting Director Ederheimer.
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.
Dacota Robert Rogers Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena, on September 27, 2013, before U.S. District Sam E. Haddon, DACOTA ROBERT ROGERS, pled guilty to distribution of Fentanyl. Sentencing has been set for February 21, 2014.
In an Offer of Proof filed by Assistant U.S. Attorney Bryan R. Whittaker, the government stated it would have proved at trial the following:
On December 8, 2013, Butte-Silverbow Law Enforcement officers were called to an address in Butte in relation to a male who was not breathing and unresponsive. Upon arrival at the scene they found a woman attempting to do CPR on the victim. The victim was then transported to the hospital, but emergency personnel were unable to revive him.
During the drive to the hospital, the woman stated that she believed that the victim had been smoking Fentanyl. She said she had been told this by an individual who had been with the victim earlier in the night.
The woman turned over a cellular telephone she stated belonged to the victim. Officers reviewed the phone to determine ownership and next of kin, etc., when they discovered text messages that appeared to be drug related. One of the texts was from an individual, identified here only as "XX," who in his text stated that whatever the victim had taken had caused him to start to drool immediately.
A short while later, the victim's phone began to ring. The officers answered the phone and the caller identified himself as "XX." During the conversation, "XX" stated that he had been at the victim's house at approximately 1:45 a.m. and had placed the victim's head on a pillow because he had been snoring.
Officers later searched the victim's house and found Fentanyl patches and drug paraphernalia.
When interviewed, "XX" stated that he had been with the victim the night he died. He said that the victim had been attempting to buy drugs and was able to make contact with a dealer identified as ROGERS. ROGERS had come to the victim's house while "XX" was present and sold the victim a Fentanyl patch for $35. The victim paid ROGERS $10 in cash, and then gave ROGERS his debit card to go to an ATM to withdraw the other $25 dollars he owed for the patch.
Following the interview, officers contacted the victim's father who gave them the victim's bank account information. With that information, officer's found an ATM video showing ROGERS withdrawing money from the victim's account the night of the victim's death.
When interviewed, ROGERS told investigators that he had in fact sold the victim the Fentanyl patch and had shown him how to ingest it. ROGERS further stated that he had received money from the victim for the patch and had used the victim's ATM card to get the money from the victim's account.
A State Medical Examiner performed a postmortem examination of the victim. His examination revealed that there were toxic levels of Fentanyl in the victim's body at the time of death. The examiner concluded that the victim died as a result of Fentanyl toxicity.
ROGERS faces possible penalties of 20 years in prison, a $1,000,000 fine and 3 years supervised release.
The investigation was conducted by the U.S. Department of Homeland Security - Homeland Security Investigations.
Corwin Dallas Four Star 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 Chief U.S. District Judge Dana L. Christensen, CORWIN DALLAS FOUR STAR, a 19-year-old resident of Wolf Point and an enrolled member of a federally-recognized tribe, was sentenced to a term of:
Prison: 120 months
Special Assessment: $100
Supervised Release: 10 years
FOUR STAR was sentenced in connection with his guilty plea to sexual abuse.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
In the early morning hours of March 4, 2012, FOUR STAR got on top of the victim as she was sleeping and choked her to the point that she lost consciousness. He then sexually abused her. When the victim regained consciousness, she started screaming and trying to push him off. FOUR STAR held her arms down and punched her in the face.
The offense occurred within the exterior boundaries of the Fort Peck Indian Reservation.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that FOUR STAR will likely serve all of the time imposed by the court. In the federal system, FOUR STAR 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 Fort Peck Tribes Criminal Investigation Division.
Columbia Man Sentenced to Life in Prison for Bank RobberiesRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was sentenced in federal court today for two bank robberies in Columbia.
Eddie Prince Roberts, 40, of Columbia, was sentenced by U.S. District Judge Nanette K. Laughrey to life in federal prison without parole. The court also ordered Roberts to pay $4,468 in restitution.
On Dec. 6, 2012, Roberts was found guilty at trial of two counts of bank robbery. Roberts has prior convictions for six earlier bank robberies.
Evidence introduced during the trial indicated that Roberts stole $8,260 from Landmark Bank in Columbia on May 8, 2012. During the robbery, Roberts – who had both hands in his pockets – threatened to shoot a bank employee and ordered the employee to take him to the vault. When the employee was unable to open the vault, Roberts began punching him in the face. Roberts then ran to another teller, jumped onto the counter, and took all the money she had. As he was leaving the bank, a customer tried to stop him and Roberts punched him in the face.
Roberts’s truck was found a short time later, stuck by the river after attempting to elude the police. Officers pursued on foot; Roberts resisted arrest and fought with one of the officers. During the struggle, the officer’s firearm was discharged and Roberts was wounded.
Evidence also indicated that Roberts stole $4,468 from Boone County National Bank in Columbia on April 23, 2012. During that robbery, Roberts ordered a teller to give him all of the money in her drawer. Roberts jumped on the counter and rifled through the teller drawers, putting money into a black trash bag. Surveillance video from nearby businesses captured images of Roberts leaving the bank in the same black Ram pickup that he used a couple of weeks later to rob Landmark Bank.
Roberts was convicted of bank robbery in Kansas in 1993 and, in a separate case in Kansas in 1993, of four bank robberies. Roberts was also convicted of bank robbery in Missouri in 2000.
This case was prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the FBI, the Columbia, Mo., Police Department, the Miller County, Mo., Sheriff’s Department, the Cooper County, Mo., Sheriff’s Department, the Missouri State Highway Patrol and the Boonville, Mo., Police Department.Columbia Man Sentenced to 20 Years for Distributing Heroin Resulting in DeathRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Columbia, Mo., man has been sentenced in federal court for distributing heroin, which resulted in the death of another Columbia man last year.
Ellison Lee Hutchison, Jr., also known as “Lucky,” 37, of Columbia, was sentenced by U.S. District Judge Beth Phillips on Thursday, Sept. 26, 2013, to 20 years in federal prison without parole. The court also ordered Hutchison to pay $1,699 in restitution for the funeral costs of his victim.
On April 25, 2013, Hutchison pleaded guilty to distributing heroin to Maximillion Shackelford, who died as a result of using that heroin.
Columbia police officers were called to the apartment where Shackelford lived with his mother on Jan. 23, 2012. Shackelford was deceased when officers arrived at his apartment. Officers found two syringes lying with Shackelford on the bed, and two recent injection sites were visible on his right wrist. An autopsy was conducted and the medical examiner declared the cause of death to be an overdose of heroin.
Officers examined Shackelford’s cell phone and learned that he had made arrangements earlier that evening to meet Hutchison. Shackelford’s brother told investigators that Hutchison was a heroin dealer with whom he and the victim had prior dealings. Investigators also interviewed the person who drove Shackelford to the location where the drug transaction occurred.
Columbia police officers and Boone County, Mo., sheriff’s deputies executed a search warrant at Hutchison’s residence on Jan. 25, 2012. Hutchison, who was arrested, was in possession of two cell phones, $3,892 in cash and a small baggie of marijuana. A search of Hutchison’s residence resulted in a number of items being seized, including a surveillance system, an electronic scale, two containers of Dormin (a common cutting agent for heroin), a large number of plastic baggies with the corners removed (consistent with having been used to package drugs) and $17,740 in cash. The electronic scale was later sent to the Missouri State Highway Patrol Crime Lab and found to have residue of heroin, cocaine and THC (the active ingredient in marijuana). Investigators examined the cell phones and found text messages between Shackelford and Hutchison, apparently referencing prior drug deals.
Hutchison was questioned and eventually admitted that he sold Shackelford a quarter gram of heroin for $45.
This case was prosecuted by Special Assistant U.S. Attorney Steven R. Berry, Special Assistant U.S. Attorney Stephanie Morrell (an assistant prosecutor for the Boone County Prosecutor’s office who was appointed for this case) and Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the Columbia, Mo., Police Department, the Drug Enforcement Administration, the Boone County, Mo., Prosecuting Attorney’s Office, the Boone County, Mo., Sheriff’s Department and the Boone County, Mo., Medical Examiner’s Office.Collinsville Woman Pleads Guilty to Drug and Health Care OffensesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on September 26, 2013, Julia Clymer, 48, of Collinsville, IL, pled guilty to a two-count information charging in count one that she engaged in a scheme to commit health care fraud and in count two that she had obtained controlled substances, including hydrocodone, through fraud and misrepresentation. At her sentencing Clymer will face up to 14 years in prison, a fine of up to $500,000 and up to 3 years of supervised release. Sentencing has been set for January 31, 2014, at 10:00 a.m. in United States District Court in East St. Louis, Illinois.
During her plea hearing, Clymer admitted that she had obtained Hydrocodone by fraud by creating false and fraudulent prescriptions and then using those prescriptions at various pharmacies to obtain the controlled substances. Clymer also admitted that from September of 2012 through December of 2012, she had executed a scheme to commit healthcare fraud and obtain controlled substances by fraud when she caused Medicaid to be billed for the fraudulent prescriptions that she had used to obtain some of the controlled substances she diverted.
The investigation was conducted by the St. Louis Diversion Group of the Drug Enforcement Administration, the U.S. Department of Health and Human Services, Office of Inspector General, and the Fairview Heights, Swansea and Belleville Illinois Police Departments. The case is being prosecuted by Assistant United States Attorney Ranley R. Killian.
Cleveland Doctor Indicted for Fraud and Money LaunderingRead the Press Release
CHATTANOOGA, Tenn. – On Sept. 24, 2013, a federal grand jury in Chattanooga returned a 35-count indictment against Dr. Raymond Sean Brown, 44, of McDonald, Tenn., for wire fraud, mail fraud, health care fraud and money laundering. Brown’s initial appearance and arraignment is scheduled for 2:00 p.m., Oct. 1, 2013, before U.S. Magistrate Judge Susan K. Lee, U.S. District Court, Chattanooga.
The indictment alleges that from May 2008 until December 2012, Brown fraudulently billed Medicare for Botox injections he did not give and received $7,482,968 in reimbursement from Medicare for these injections. Between 2008 and 2012, Brown allegedly purchased only 254 vials of non-FDA approved Botox, purchased no FDA approved Botox, and billed Medicare for 17,766 vials. Brown allegedly submitted claims for reimbursement electronically and received payment by checks mailed to his office. According to the indictment, the money received from Medicare for the fraudulent claims was deposited into an Athens Federal Community Bank account from which Brown made a transfer of $35,000 to a Tennessee Valley Federal Credit Union account. Brown allegedly also made payments of $58,519 and $78,851 to two different car dealerships from the Tennessee Valley Federal Credit Union account.
If convicted, Brown faces a term of up to 20 years in prison for each count of wire and mail fraud and up to 10 years in prison for each count of health care fraud and money laundering. Each count also provides for a fine of up to $250,000 and a supervised release term of up to three years. The indictment sets out forfeiture allegations which indicate that, if convicted, Brown may forfeit his interest in the $186,091 in the Tennessee Valley Federal Credit Union account and the $6,579,517 in the Athens Federal Community Bank account. He may also be subject to a money judgment of not less than $7,400,000 if convicted.
This indictment is the result of an investigation by the U.S. Food and Drug Administration- Office of Criminal Investigations and U.S. Department of Health and Human Services- Office of Inspector General. Assistant U.S. Attorney Terra L. Bay will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
Charging Document: U.S. V. Joseph Hunter Et Al.Read the Press Release
U.S. v. Joseph Hunter et al. S7 Indictment
Career Criminal Lenny Cain Sentenced to over 13 Years in Prison in Oxycodone ConspiracyRead the Press Release
Criminal Will Only Stop Committing Crimes When He is in Prison
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Lenny Cain, age 36, of Baltimore, Maryland, late yesterday to 160 months in prison followed by three years of supervised release for conspiracy to distribute and possess with intent to distribute oxycodone, and for possession with intent to distribute oxycodone. Cain previously has been convicted of handgun crimes, cocaine distribution, assault, conspiracy and identity fraud. He was released from federal prison in February 2010 and returned almost immediately to a life of crime, although he was supervised by a federal probation officer under the authority of a federal judge. Cain is expected to have a hearing on the violation of his supervised release before U.S. District Judge Richard D. Bennett, but no date has been set for the hearing.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Anne Arundel County Police Chief Kevin Davis; and Howard County Police Chief William McMahon.“Lenny Cain is the sort of criminal who has demonstrated that he will only stop committing crimes while he is in prison, so we need to keep him there,” said U.S. Attorney Rod J. Rosenstein.
“The sentence that Mr. Cain received today should send a strong message to other individuals engaged in the illicit distribution of prescription drugs,” stated Gary Tuggle, Assistant Special Agent in Charge of the Drug Enforcement Administration, Baltimore District Office. “Individuals like Cain, who engage in the distribution of illicit prescription drugs, are drug dealers; just like the drug dealers you see on the street. This type of illegal conduct will not be tolerated and will be investigated vigorously by our DEA Tactical Diversion Squad, ” stated Tuggle.
According to the testimony at his two week trial, beginning in 2010, Cain and the other leaders of the conspiracy, including Joseph Church, recruited women working in doctors’ offices to assist them in obtaining and verifying fraudulent prescriptions for oxycodone, also known as Oxycontin and Percocet. The leaders also recruited individuals, called “runners,” to fill the fraudulent prescriptions at pharmacies in the Baltimore area. Evidence presented at trial showed that Cain’s fingerprints were on at least 14 fraudulent prescriptions. Cain was also captured on surveillance video at two pharmacies – one where he attempted to get a fraudulent prescription filled in the name of another individual; and another where he followed one of the “runners,” who was attempting to fill a fraudulent prescription, into the pharmacy.Joseph Church, age 41, of Baltimore, previously pleaded guilty to his role in the conspiracy and was sentenced to 51 months in prison. Co-conspirators Bruce Breland, age 56, and Charles Fell, age 27, both of Baltimore, were sentenced to 27 months and to two years in prison, respectively. Four other defendants have pleaded guilty and were sentenced to between seven and 60 months in prison.
United States Attorney Rod J. Rosenstein praised the DEA, HHS Office of Inspector General and the Anne Arundel and Howard County Police Departments for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Kenneth S. Clark, Clinton J. Fuchs and Mushtaq Gunja, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Captain and Company Sentenced in Fatal Parasailing AccidentRead the Press Release
St. Thomas, USVI – District Court Judge Curtis V. Gomez on Friday sentenced the captain of a vessel that was involved in a fatal parasailing accident just outside of the Charlotte Amalie Harbor in 2011 to six months home confinement, announced United States Attorney Ronald W. Sharpe, United States Coast Guard Sector San Juan Commander Captain Drew W. Pearson, and Coast Guard South East Region Criminal Investigative Services Special Agent in Charge Jonathan Sall.
Captain Kyle Coleman, 33, also was ordered to serve one year of supervised release, 150 hours of community service with the United States Coast Guard, and pay restitution in the amount of $1,350,663.18 to the victims of the parasailing accident, joint and several with CWS Tours Inc., LLC.
CWS Tours also was sentenced to one year of supervised probation and 150 hours of community service with the United States Coast Guard.
On June 10, 2013, Coleman pleaded guilty to operating the motor vessel, Turtle, in a negligent manner, thereby causing the death of a passenger while on a parasailing excursion. The owner of CWS Tours, which owned the vessel, pleaded no contest and acknowledged that it was negligent with respect to the vessel, and as a result someone’s life was destroyed.
According to the plea documents filed in court, Coleman was the captain of the Turtle at the time it was conducting parasailing excursions on November 15, 2011, when a passenger, Bernice G. Kraftcheck, was killed. Kraftcheck and her daughter, Danielle Haese, were hoisted into the air for the parasail ride as wind conditions were deteriorating. The strong winds and a weak towline caused the towline to break, resulting in the parasail separating from the vessel and the two women falling into the water. The wind then propelled the parasail, with the women still attached, at a very high rate of speed causing the death of Kraftcheck and serious injuries to Haese.
This case was investigated by the United States Coast Guard, and prosecuted by Assistant United States Attorney Everard E. Potter.
Burbank-based Diagnostic Labs Agrees to Pay $17.5 Million to Resolve Illegal Kickback AllegationsRead the Press Release
LOS ANGELES – Kan-Di-Ki, LLC, doing business as Diagnostic Laboratories and Radiology (Diagnostic Labs), has agreed to pay $17.5 million to resolve allegations that it submitted false claims to Medicare and Medi-Cal (the State of California’s Medicaid program) that were tainted by a kickback scheme.
Diagnostic Labs, which is headquartered in Burbank, provides lab and x-ray services to patients at skilled nursing facilities (SNFs) in Southern California. SNFs, commonly known as nursing homes, are a healthcare option for senior citizens who are in need of constant medical attention.
Diagnostic Labs allegedly charged SNFs below cost rates for Medicare Part A business, in exchange for the facilities’ provision of Medicare Part B and Medi-Cal business back to Diagnostic Labs. This scheme is alleged to have violated the federal Anti-Kickback Act (42 U.S.C. § 1320a-7b(b)(2)(A)) and the federal and state False Claims Acts.
“When medical facility owners illegally offer discounts to customers to generate business, it results in inflated claims to government health care programs and increases costs for all taxpayers,” said Glenn R. Ferry, Special Agent in Charge for the Los Angeles Region of the Department of Health and Human Services’ Office of Inspector General. “This $17.5 million settlement demonstrates OIG’s ongoing commitment to safeguarding federal health care programs and taxpayer dollars against all types of fraudulent activities.”
The United States will receive $12.95 million of the settlement amount, and California will receive $4.55 million.
This settlement resolves a lawsuit filed under the qui tam, or “whistleblower,” provisions of the federal and state False Claims Acts, which allow private citizens with knowledge of fraud to bring civil actions on behalf of the federal and state governments and share in any recovery. The case was filed in 2010 in federal court in Los Angeles by two former Diagnostic Labs employees, and is titled United States and State of California ex rel. Pasqua et al. v. Kan-Di-Ki, LLC, Civil Action No. CV10-0965 JST (RZx) (C.D. Cal.). The two men who filed the lawsuit, Jon Pasqua and Jeff Hauser, will collectively receive $3,755,500 as their share of the federal recovery. Their share of the state recovery has not yet been determined.
The United States Attorney’s Office for the Central District of California, the Justice Department’s Civil Division, and the California Attorney General’s Office handled the civil settlement. This matter was investigated by the U.S. Department of Health and Human Services, Office of Inspector General.
Release No. 13-120
Budget Cuts to Law Enforcement Are Penny Wise and Pound FoolishRead the Press Release
The mandatory federal budget cuts to law enforcement known as sequestration can best be described as penny wise and pound foolish. Sequestration slashed funding to U.S. Attorneys’ offices without regard to the cost to public safety and the government’s bottom line. The current budget logic forgets that U.S. Attorney’s offices not only protect the public, but also collect more money on behalf of the American taxpayer than they spend.
Our nation’s U.S. Attorneys’ offices combat terrorism, organized crime, public corruption, fraud, violent crime, child predators and many other harms. For example, the South Dakota U.S. Attorney’s Office recently prosecuted some of the most dangerous child predators and methamphetamine traffickers in our region. Today, South Dakota leads the nation in the percentage of sex offenders and violent predators under active federal supervision. We also lead the nation in the number of individuals convicted for failing to pay child support. We have done all of this while never exceeding our budget. We have upheld the public trust.
The Justice Department includes the FBI, DEA, ATF, U.S. Marshals Service and federal prisons, as well as 94 U.S. Attorneys’ offices nationwide. Sequestration cut $1.5 billion from the Department of Justice budget for the 2013 fiscal year and will cut $2.1 billion for 2014. Since a hiring freeze was imposed in January 2011, DOJ has lost more than 3,200 employees due to budget constraints. To make ends meet, DOJ faces potential unpaid furlough days for its employees in 2014. Furloughs were avoided in 2013 by depleting reserve funds and repurposing money designated for training. Now that money is gone and cannot be used to prevent furloughs in 2014.
These dramatic cuts reduce our capability to handle complex cases and to secure collections on behalf of the taxpayers. Nationwide, U.S. Attorneys collected $13.1 billion in criminal and civil actions during 2012, more than six times the appropriated budget of the combined 94 offices for that year. With fewer lawyers and support personnel, our ability to collect fines and restitution for crime victims will be hampered.
By cutting the Department of Justice budget, sequestration is effectively reducing government revenue.
In addition to the financial impact, these across-the-board budget cuts also impede our ability to protect citizens and hold criminals accountable. With fewer employees, we will necessarily see an impact on criminal cases. The reductions are particularly problematic as we tackle resource-intensive and increasingly complex matters involving national security, cybercrime, corporate fraud, public corruption, health care fraud, organized crime and child exploitation. In South Dakota, we will soon be losing several of our most experienced federal law enforcement agents. Those are positions we won’t likely fill because of sequestration. In my office alone, the employee vacancy rate will soon be approaching 20%. Even if sequestration ended immediately, it would take us several years to replace the talent that has been lost by these blanket budget cuts.
I appreciate that budget cuts in many areas are often both necessary and valuable. But dramatically cutting law enforcement resources in South Dakota will reduce federal revenue and damage public safety. That type of cut is not wise or effective.
Blytheville Drug Dealer Appears in Court for Second Time in Six Months on Federal Drug ChargesRead the Press Release
LITTLE ROCK - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas announced today that Ricky Thompson, age 33, of Blytheville, made his initial appearance before United States Magistrate Judge Joe J. Volpe on a Criminal Complaint charging him with distribution of a controlled substance and conspiracy to distribute a controlled substance.
Thompson was indicted on March 13, 2013, along with 18 others from Blytheville in a High Intensity Trafficking Suppression (H.I.T.S.) Operation. In that Indictment Thompson was charged with conspiracy to possess with intent to distribute cocaine base and four counts of distribution of cocaine base. According to the arrest affidavit filed with the Criminal Complaint on September 20, 2013, Thompson was on pre-trial release in the custody of his mother pending those charges. Following a lead that Thompson was continuing to distribute narcotics, the Bureau of Alcohol, Tobacco, Firearms and Explosives assigned an agent to confirm this information. Several controlled purchases of methamphetamine were arranged through a confidential informant from September 4, 2013 to September 20, 2013. Subsequently an arrest warrant was issued last Friday, September 20,2013. Thompson surrendered to authorities on Thursday, September 26, 2013. Thompson remains in custody after his appearance today.
This investigation was conducted by the Bureau of Alcohol, Tobacco, and Firearms – Little Rock Field Office. Assistant United States Attorney Cameron McCree is prosecuting this case for the United States.
The charges set forth in a Complaint are merely allegations. A federal Grand Jury will decide whether to indict on these charges. The defendant is presumed innocent until proven guilty.
Big Island Marijuana "Ministry" Operator Pleads Guilty to Drug and Tax OffensesRead the Press Release
HONOLULU – Defendants Roger Cusick Christie (age: 64) and Sherryanne L. Christie (age: 62), husband and wife, pled guilty today in U.S. District Court before U.S. Magistrate Judge Richard L. Puglisi to marijuana trafficking and tax offenses. Roger Christie pled guilty to conspiring to manufacture, distribute, and possess with intent to distribute marijuana, involving 100 or more marijuana plants and two separate tax counts for failure to file federal income tax returns for calendar years 2008 and 2009. Sherryanne Christie pled guilty to conspiring to manufacture, distribute, and possess with intent to distribute marijuana, involving 50 or more marijuana plants. Their sentencings have been set on January 22 (Roger Christie) and January 27, 2014 (Shierryanne Christie), before United States District Judge Leslie E. Kobayashi.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said, “this prosecution demonstrated the effectiveness of cooperative efforts among federal, state, and local law enforcement authorities in addressing persistent, significant illegal drug trafficking activity.” According to information produced to the court:
- From at least about 2000 up through July 8, 2010, the Christies operated the “THC Cannabis Ministry” in Hilo, Hawaii. In 2008, an undercover law enforcement officer was introduced to Roger Christie and on three separate occasions at the Ministry, Christie sold quantities of marijuana to him (the largest being one-half pound).
- Thereafter, a court-authorized wiretap on three telephone lines used by Roger Christie from April – July 2009 resulted in the interception and recording of numerous telephone conversations involving Roger and Sherryanne Christie, Ministry employees, and other persons.
- In 2009, the Ministry was open three days a week from 2:00 – 5:00 p.m. During this three hour period, there were up to 70 customers served, and the Christies sold over one-half pound of marijuana “sacrament,” making about $1,000 or more in profit. They estimated that about 90 percent of the customers were Ministry members, while the remaining ten percent had state medical marijuana cards.
- In order to join the Ministry, prospective members were supposed to sit through an orientation session with Roger Christie. However, Roger Christie said he scheduled membership sessions with passengers on visiting cruise ships who were in Hilo for one day, and one could also join by ordering a Ministry “sanctuary kit” by mail for a $250 donation.
- The Christies instituted an “express” procedure in early 2009, which made it unnecessary for prospective members to meet with the Christies or to receive any spiritual blessing/advice from them in order to receive their marijuana “sacrament.” Rather, as long as the customer could pay the full amount of the “donation” price and had someone’s membership card or state medical marijuana card, that person could acquire “sacrament.”
- There were “suggested donation” prices such as $50 for one-eighth ounce, $100 for one-quarter ounce, and $400 for one ounce. When one customer complained during an intercepted call that the quoted “donation price” of $400 an ounce was rather high, Roger Christie justified this amount, stating “It’s retail”, and “Normal retail. You know, we buy it, you know, at forty-five hundred, five grand a pound, so….”
- On July 8, 2010, both Christies and 12 other defendants were arrested in this case. As a result of Roger Christie’s arrest and his ensuing court-ordered pretrial detention without bond, the Ministry was effectively shut down in Hilo and it has not re-opened since that time.
- Both Christies admitted in their respective plea agreements to being leaders and organizers of the charged marijuana trafficking activities.
At the time of sentencing, Roger Christie faces up to 20 years imprisonment on the marijuana charge, with a mandatory minimum term of five years. The maximum term of imprisonment on each tax offense is one year. Sherryanne Christie can receive up to 20 years imprisonment. The Christies also agreed to forfeit to the United States $21,494.00 in U.S. currency (proceeds from their marijuana distribution activities), and a condominium apartment in Hilo owned by Roger Christie (which was used to facilitate their marijuana trafficking activities).
Under the terms of the plea agreement, both Christies have reserved their right to seek appellate review of the District Court’s denial of four pretrial motions, including one asking the Court to find that enforcement of marijuana trafficking laws against them constituted a violation of the Religious Freedom Restoration Act (RFRA). District Judge Kobayashi denied all four of the Christies’ pretrial motions, ruling that enforcement of federal marijuana trafficking laws against the Christies was not a violation of RFRA. The court ordered Roger Christie’s continued detention pending sentencing; Sherryanne Christie remained released on bond.
The prosecution resulted from the combined efforts from 2008-2010 of the Drug Enforcement Administration; the Internal Revenue Service - Criminal Investigations; Homeland Security Investigations; the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Postal Inspection Service; the U.S. Marshals Service; the National Park Service; the Sheriff’s Office, Department of Public Safety; the Hawaii Police Department; and the Honolulu Police Department. The case was prosecuted by Assistant U.S. Attorney Michael K. Kawahara.
Bank Robber Caught with Help of Crime Stoppers Tip Sent to PrisonRead the Press Release
McALLEN, Texas – Palmview resident Erick Lee Chiu, 22, has been ordered to federal prison following his conviction of robbing the International Bank of Commerce in McAllen, announced United States Attorney Kenneth Magidson. Chiu entered a plea of guilty March 5, 2013.
Today, Chief United States District Judge Ricardo H. Hinojosa, who accepted the guilty plea, handed Chiu a sentence of 92 months and was ordered to pay restitution. At the hearing, the IBC Bank representative advised that the teller from whom Chiu demanded the money was so traumatized from the robbery that she had to leave her position with the bank. Chiu will be required to serve a term of three years of supervised release following completion of the prison term.
On Sept. 16, 2012, Chiu, trying to conceal his identity, walked into the International Bank of Commerce wearing a wig and handed the teller a note demanding money. The note threatened that he had a gun, but that no one would be hurt as long as they did not call the police. Bank tellers handed Chiu the money and he fled the bank before law enforcement arrived.
Through a McAllen Crime Stoppers Tip the following day, police were able to identify Chiu as the bank robber. He was subsequently arrested and the money was recovered.
He has been in custody since Nov. 17, 2012, and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI investigated the case along with the McAllen Police Department. Assistant U.S. Attorney Kristen J. Rees is prosecuting the case.
Attorney General Eric Holder, Justice Department <br /> and Other Officials, Cities Work to Break Cycle of ViolenceRead the Press Release
Justice Department officials along with other senior officials from the Administration yesterday convened the third annual National Summit on Preventing Youth Violence to share strategies on how to prevent and reduce violence and gang activity and improve opportunities for young people.
The summit brings together teams of mayors, police chiefs, educators, public health officials and youth from the 10 cities of the National Forum on Youth Violence Prevention. Representatives from the faith-based and philanthropic community and other communities involved in federal youth violence initiatives were also in attendance at the two-day summit, which is convened regularly as part of the ongoing work of the National Forum on Youth Violence.
“As a father, it is heartbreaking to know that the majority of America’s children – more than 60 percent of them – have been exposed to crime, violence, or abuse as victims or as witnesses. Far too many young people continue the cycle of violence by harming others,” said Attorney General Eric Holder. “That’s why the Obama Administration, led in part by this Justice Department, launched the National Summit on Preventing Youth Violence. Together, in each of our Forum cities, we are rallying local stakeholders to improve law enforcement, increase support for violence prevention efforts and expand access to family and social services.”
The forum’s 10 participating cities, Boston; Camden, N.J.; Chicago; Detroit; Memphis, Tenn.; Minneapolis; New Orleans; Philadelphia; Salinas, Calif. and San Jose, Calif., will receive more than $2 million total from the Departments of Justice and Education to continue implementing their comprehensive youth violence prevention strategies. In addition, the Justice Department is providing almost $16 million to reduce the impact of violence on child victims and witnesses and to implement other community violence prevention programs.
“Early exposure to violence can have a devastating impact on our children, and its consequences are felt by all of us, in higher healthcare and criminal justice costs, broken families, distressed communities and the potential loss of a future generation of leaders,” said Assistant Attorney General Karol V. Mason. “We are using research to counter the effects of violence and working closely with our federal and local partners to get kids into safe and supportive environments and back on track developmentally.”
Teams from Camden, Minneapolis, New Orleans and Philadelphia unveiled their comprehensive plans to address youth violence using not only enforcement but also prevention, intervention and reentry strategies. The summit agenda included panel discussions on the roles of public health and media in youth violence prevention, as well as a series of breakout sessions on a range of topics such as youth employment, street outreach programs, youth mental health services, law enforcement responses to children exposed to violence and community partnerships.
The forum was launched in 2010 at the direction of President Obama, with the Department of Justice, under Attorney General Holder, providing key support. The Departments of Justice, Education, Health and Human Services, Housing and Urban Development and Labor and the White House Office of National Drug Control Policy collaborate to support the forum's participating cities, which were selected on the basis of need, geographic diversity, and willingness and capacity to explore new strategies.
For more information on the cities’ plans and progress, please visit: www.findyouthinfo.gov/youthviolence.
The forum is administered by the Office of Justice Programs’ Office of Juvenile Justice and Delinquency Prevention (OJJDP), which works to bring about a nation where children are healthy, educated and free from violence and where youth contact with the juvenile justice system is rare, fair and beneficial. For more information on OJJDP, please visit: www.ojjdp.gov.
The Office of Justice Programs (OJP), headed by Assistant Attorney General Karol V. Mason, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice, and assist victims. OJP has six components: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking. For more information on OJP, please visit: www.ojp.gov.
Attorney General Eric Holder Announces Funding for School Resource Officers in Newtown, Conn.Read the Press Release
Attorney General Eric Holder announced today that the Justice Department’s Bureau of Justice Assistance (BJA) will provide $150,000 in Fiscal Year 2013 funding to Newtown, Conn., to fund two positions to ensure school safety, such as school resource officers.
“This grant funding will help to offer critical support for law enforcement and essential services to the community as Newtown comes back from a heartbreaking tragedy,” said Attorney General Holder. “Just over nine months after the senseless mass shooting at Sandy Hook, we remain committed to providing every resource we can to ensure that the children of Newtown can feel safe and secure at school and elsewhere. And as we hold lost loved ones in our thoughts and prayers, we resolve to continue to support and protect this community – and to help them heal together.”
Today’s grant is just the latest assistance that the Justice Department has provided to Newtown. In August 2013, BJA provided $2.5 million in funding to the Connecticut State Police, the Newtown Police Department and their partner agencies that provided assistance in response to the shootings at Sandy Hook Elementary School last year. The funding compensated the agencies and jurisdictions for costs related to overtime, forensics and security in the aftermath of the crime.
The Bureau of Justice Assistance is one of six components of the Office of Justice Programs (OJP), which is headed by Assistant Attorney General Karol V. Mason. OJP provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP’s six components include: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking.
For more information about OJP, please visit: www.ojp.gov.
Attempted Robbery of Traveling Jewelry Salesman Results in Significant Prison TimeRead the Press Release
HOUSTON – A Colombian national claiming the name Santos Diaz-Soto, 27, been ordered to federal prison for 21 years for his involvement in the attempted robbery of a jewelry salesman and his guard, announced United States Attorney Kenneth Magidson. Diaz-Soto, who resided in Houston and Atlanta, Ga., entered a plea of guilty April 5, 2013, to conspiracy, interference of commerce by robbery and brandishing of a firearm in furtherance of a violent crime.
Today, U.S. District Judge Melinda Harmon handed him a total sentence of 252 months in federal prison - 168 months for the conspiracy and robbery charges and a consecutive 84 months for the use of the firearm. At the hearing today, additional testimony was presented including the fact that he was in fact a Colombian national with several aliases such as Jason Lerma-Mejia, Juan Carlos-Mejia, Christian Jolian Morales, Luis Angel and many more. In handing down the sentence, Judge Harmon noted this was a sophisticated robbery of a traveling jeweler, that he was in fact a leader/organizer and that his actions mimicked another robbery he had previously committed. The court also noted that he had obstructed justice by claiming he was shot by others when, in fact, he was shot by the salesman’s guard, by feeling to Mexico after initial apprehension as well as falsely identifying himself as a Puerto-Rican national known as Santos Diaz-Soto.
Further testimony today revealed that his name had come up on similar investigations around the country. Diaz-Soto was further ordered to pay in restitution and will serve three years of supervised release.
The victimized guard also provided testimony today as to the impact the robbery has had on his life, the pain and discomfort he had and is still experiencing, including daily reminders about the attack, as well as the terror his wife felt when she heard about the incident.
According to court records, in the fall of 2009, a jewelry salesman traveled from Louisiana to Houston to meet with local jewelers. On Sept. 11, 2009, he and his guard - an off-duty Texas Alcohol and Beverage Commission (TABC) officer - were approached in their car by two Hispanic males – Diaz-Soto and Gabriel Ocampo-Mayorquin, 28, of Colombia. Diaz-Soto had a firearm and Ocampo-Mayorquin had a glass punch which was used to break a window. The guard fired several shots and wounded both men. During the robbery, Hugo Ortiz, 29, Juan Carlos Valencia, 30, and Osorio Pemberthy, 26, all also of Colombia, acted as lookouts and get-away drivers.
Immediately after the robbery, witnesses observed three vehicles race into the back parking lot of an apartment complex located across the street from the robbery scene. Several men were seen entering and exiting the vehicles and removing temporary license plates from at least one vehicle. Through further investigation, including a visit to an area hospital, task force officers ultimately identified all five charged in the case.
Ortiz, Valencia and Pemberthy all pleaded guilty and were sentenced to federal prison.
Ocampo-Mayorquin is a fugitive and a warrant remains outstanding for his arrest. Anyone having information regarding his whereabouts is urged to contact the Houston office of the FBI at (713) 693-5000 or their local FBI office.
Diaz-Soto will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This matter was investigated by members of the FBI’s Houston Violent Crimes Task Force which includes officers of the Houston Police Department. The Department of Homeland Security – Immigration and Customs Enforcement also provided invaluable assistance. The case is being prosecuted by Assistant U.S. Attorneys Kebharu H. Smith, Suzanne Elmilady and Joe Magliolo.
Arizona Man Pleads Not Guilty to 1997 Escape ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that an Arizona man, who has been on the run for more than 15 years, was captured by authorities in Arizona on September 10, 2013.
The investigation is being conducted by the U.S. Marshals Service. Durant was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Steven C. Durant, age 57, was originally indicted by a federal grand jury on April 9, 1997, for Escape. The Indictment stemmed from Durant allegedly leaving the Community Alternatives of the Black Hills on March 21, 1997. Following the April 1997 Indictment, Durant went missing for several years until his recent capture.
Durant appeared before U.S. Magistrate Judge Veronica L. Duffy on September 24, 2013, and pled not guilty to the 1997 Indictment.
The maximum penalty upon conviction is 5 years of imprisonment and a $250,000 fine. The charge is merely an accusation and Durant is presumed innocent until and unless proven guilty.Alleged International Terrorist Arraigned Today in Brooklyn Federal Court, Following Extradition from NigeriaRead the Press Release
Lawal Olaniyi Babafemi, a Nigerian citizen charged with providing material support to al-Qaeda in the Arabian Peninsula (“AQAP”), a designated foreign terrorist organization, and using firearms in furtherance of that crime, was arraigned today before United States District Judge John Gleeson at the federal courthouse in Brooklyn, New York. At this initial appearance in court in the United States after his extradition from Nigeria, Babafemi was ordered held without bail.
The charges and arraignment were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; John Carlin, Acting Assistant Attorney General for the National Security Division; and George Venizelos, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation.
“As alleged in the indictment, the defendant was a member of a violent terrorist organization bent on doing harm to the United States and its allies. The defendant threw his efforts behind al-Qaeda in the Arabian Peninsula’s media, recruitment, and weapons training campaigns in an effort to strengthen the terrorist group’s grip on the region and extend its reach throughout the world. We will use every tool at our disposal to combat al-Qaeda and other terrorist groups in a manner consistent with our laws,” stated United States Attorney Lynch. Ms. Lynch also expressed her grateful appreciation to the government of Nigeria for its assistance and cooperation in this extradition.
“As alleged, the defendant trained with al-Qaeda, assisted in its propaganda efforts, and actively recruited others to join its demented cause. We will continue to work with our international partners to mitigate the global terrorist threat,” stated FBI Assistant Director-in-Charge Venizelos.
According to court documents and the record of today’s proceeding, between approximately January 2010 and August 2011, the defendant traveled twice from Nigeria to Yemen to meet and train with leaders of AQAP, the Yemen-based branch of al-Qaeda. Babafemi assisted in AQAP’s English-language media operations, which include the publication of the magazine “Inspire.” At the direction of the now-deceased senior AQAP commander Anwar al-Aulaqi, Babafemi was provided by AQAP leadership with the equivalent of almost $9,000 in cash to recruit other English-speakers from Nigeria to join that group. While in Yemen, Babafemi also received weapons training from AQAP.
On February 21, 2013, a grand jury in the Eastern District of New York returned a sealed indictment charging the defendant with one count of conspiracy to provide material support to AQAP, in violation of Title 18, United States Code, Section 2339B; one count of providing and attempting to provide material support to AQAP, in violation of Title 18, United States Code, Section 2339B; one count of unlawful use of machineguns, in violation of Title 18, United States Code, Section 924(c); and one count of conspiracy to unlawfully use machineguns, in violation of Title 18, United States Code, Section 924(o). At the request of the United States, the Nigerian government thereafter commenced extradition proceedings against the defendant in July 2013, and he was ordered extradited in September 2013.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
If convicted, the defendant faces up to 15 years in prison on each of the material support charges and up to life on each of the firearms charges.
The government’s case is being prosecuted by Assistant United States Attorneys Zainab Ahmad and Hilary Jager, with assistance from Trial Attorney William M. Narus of the Justice Department’s Counterterrorism Section and the Justice Department’s Office of International Affairs.
The Defendant:
LAWAL OLANIYI BABAFEMI
Age: 33Alleged Gang Leader Arrested in Connection with Camden Drug Trafficking OperationRead the Press Release
CAMDEN, N.J. – Special agents of the Drug Enforcement Administration Camden High Intensity Drug Trafficking Areas (HIDTA) Task Force arrested an alleged gang leader in Camden this morning for his charged involvement with an illegal drug trafficking operation, U.S. Attorney Paul J. Fishman announced.
Tyrone Tyson, 38, is charged by criminal complaint with knowingly and intentionally distributing, and possessing with the intent to distribute, 100 grams or more of a mixture or substance containing heroin. He is expected to appear this afternoon before U.S. Magistrate Judge Joel Schneider in Camden federal court.
According to the complaint unsealed today:
In late July 2013, members of the Camden HIDTA Task Force conducted an investigation into Tyson’s drug trafficking activities – using surveillance, undercover officers, confidential informants, audio recordings and controlled drug purchases – which revealed Tyson was selling heroin in the area of 153 North 32nd Street in Camden. During the investigation, Tyson sold heroin to an undercover law enforcement agent on two occasions.
Tyson is a leader of the “Fruit Town Brims” set of the Bloods street gang and controls the gang’s activities in New Jersey.
The count with which Tyson is charged carries a minimum potential penalty of five years in prison and a maximum potential penalty of 40 years in prison and a $5 million fine, subject to enhancements based on criminal history and other factors.
U.S. Attorney Fishman credited special agents of the New Jersey DEA, under the direction of Special Agent in Charge Carl J. Kotowski; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees; the Camden County Prosecutor’s Office, under the direction of Prosecutor Warren W. Faulk; the Gloucester County Prosecutor’s Office, under the direction of Prosecutor Sean F. Daulton; and the Burlington County Prosecutor’s Office, under the direction of Prosecutor Robert D. Bernardi, with the investigation leading to today’s arrest.
He also thanked officers of the Camden County Sheriff’s Department, the Delaware River Port Authority Police, the Gloucester City Police Department, the Westampton New Jersey Police Department, the Monroe Township Police Department and the Washington Township Police Department for taking part in the investigation and the arrest.The government is represented by Special Assistant U.S. Attorney Ira Slovin of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
This case was developed through the work of the Camden Collaborative Crime Commission (C-4). Every federal, state and local law enforcement agency and prosecutor’s office responsible for combating drug trafficking, gang activity and violent crime in Camden has come together in one location to share intelligence, develop investigative strategies and support the investigative and prosecutorial efforts of its partners. C-4 has merged the individual missions of the various law enforcement agencies into a single strategic attack on drug trafficking and drug-related violent crime. Such intense coordination greatly enhances the law enforcement community’s ability to correctly identify and successfully prosecute the most dangerous criminals in one of our nation’s most dangerous cities.
13-393Defense counsel: Assistant Federal Public Defender Lisa M. Koch Esq., Camden
Tyson Complaint
Acting U.S. Attorney Steven C. Yarbrough Announces Hiring Grants for Law Enforcement and School Safety OfficersRead the Press Release
ALBUQUERQUE – Acting U.S. Attorney Steven C. Yarbrough, 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 Mexico.
The grantees and amount awarded include: $250,000 for the Los Lunas Police Department, $125,000 for the Raton Police Department, and $375,000 for the Rio Rancho Department of Public Safety.
“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.
“Keeping our children safe when they go to school is of critical importance and I am pleased to join the Attorney General and the COPS Office in announcing these grants which will help provide our communities with the resources needed to accomplish this vital mission,” said Acting U.S. Attorney Steven C. Yarbrough.
“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.
Acting U.S. Attorney A. Lee Bentley, III Announces Hiring Grants for Law Enforcement and School Safety OfficersRead the Press Release
Funds Will Hire School Resource Officers and Critical Law Enforcement Positions
Tampa – Acting U.S. Attorney A. Lee Bentley, III in conjunction with the U.S. Department of Justice Office of Community Oriented Policing Services (COPS), today announced funding awards for the Middle District of Florida.
The grantees and amount awarded include: Collier County Sheriff’s Office - $500,000, Hendry County Sheriff’s Office - $904,895, Hillsborough County Sheriff’s Office - $1,250,000, and Pasco County Sheriff’s Office - $1,250,000.
“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.
“Keeping our children safe when they go to school is of critical importance and I am pleased to join the Attorney General and the COPS Office in announcing these grants which will help provide our communities with the resources needed to accomplish this vital mission,” said Acting U.S. Attorney Bentley.“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.
26 September 2013
York Man Charged with Impersonating FBI AgentRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that Brandon H. Schnetzka, 40, of York, Pennsylvania, was indicted Wednesday by a federal grand jury in Harrisburg. The indictment charges Schnetzka with one count of Impersonating an Officer or Employee of the United States.
According to United States Attorney Peter J. Smith, the charge against Schnetzka is a result of allegations that in March 2013, he falsely represented himself as a Special Agent of the Federal Bureau of Investigation in connection with obtaining a “loaner” motor vehicle from a Mechanicsburg auto dealer.
The case was investigated by the Federal Bureau of Investigation and the Silver Spring Township Police Department. The case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is three years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Worcester Businessman Charged with Attempted BriberyRead the Press Release
BOSTON – A Worcester man was charged today in U.S. District Court in Worcester with trying to bribe a federal safety investigator in order to avoid negative findings on a safety review of his motor carrier company.
Irfan Dushku, 43, was charged in a one-count Information with bribery of a public official.
The Information alleges that Dushku paid $1,000 to a Federal Motor Carrier Safety Administration (FMCSA) Safety Investigator in May 2013 to influence the safety investigator to produce a false compliance review of Dushku’s motor carrier company, Korca Enterprises, Inc.
The FMCSA is a separate administration within the United States Department of Transportation. The responsibilities of the FMCSA include the development and enforcement of federal regulations that promote motor carrier safety, and the establishment of safe operating requirements for commercial drivers, carriers, vehicles and vehicle equipment.
If convicted, Dushku faces a maximum sentence of 15 years in prison, three years of supervised release and a fine equal to the greater of $250,000 or three times the value of the bribe.
United States Attorney Carmen M. Ortiz and Theodore L. Doherty, III, Special Agent in Charge of the U.S. Department of Transportation, Office of Inspector General, Office of Investigations made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kristina E. Barclay of Ortiz’s Public Corruption and Special Prosecutions Unit.The details contained in the Information are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Woman Indicted for Stealing Money from Unity Health SystemRead the Press Release
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Rochester has returned a two-count indictment charging Barbara Tripi, 62, of Lyndhurst, Ohio, with interstate transportation of money taken by fraud and theft in connection with health care benefit program. The charges carry a maximum p[enalty of 20 years in prison and a $500,000 fine.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that Tripi worked at Unity Health System as a director and was responsible for account oversight beginning in 2008. Sometime around February 2009, the defendant created and submitted fraudulent invoices to Unity Health System for purported coding work performed by a “Barbie Treple,” knowing that Barbie Treple did not exist and that the medical coding services listed on the invoices had never been performed. Tripi approved the payments made to Barbie Treple. Between February 2009 and August 2011, Unity Health System issued approximately 57 checks totaling approximately $268,800, all made payable to Barbie Treple. The defendant picked up the checks from the Unity Health System cashier in Greece, N.Y. and transported the checks back to the State of Ohio and deposited the checks in a U.S. Bank account she held in Ohio.
The indictment 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.
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.Williamsburg Couple Sentenced for Committing Series of Bank RobberiesRead the Press Release
LONDON, KY - A Williamsburg, KY., couple was sentenced today for robbing numerous banks in eastern Kentucky and Tennessee.
U.S. District Judge Gregory Van Tatenhove sentenced 32 year-old Jason Fox, aka “The Bad Hair Bandit,” to 20 years, for seven separate counts of bank robbery and armed bank robbery. His wife, Tasha Fox, 28, was sentenced to 10 years, for aiding and abetting in several of those robberies. Both defendants will also be on supervised release for five years, after their prison terms are completed. Judge Van Tatenhove also ordered Jason Fox to pay $80,028.30 in restitution; Tasha Fox is jointly and severally responsible for $57,956.88 of that restitution amount.
In a guilty plea earlier this year, Jason Fox admitted that, in 2011, he robbed a total of seven banks located in Barbourville, KY., Corbin, KY., Pine Knot, KY., Williamsburg, KY., Jellico, Tenn., and LaFollette, Tenn. In five of those robberies, he possessed a semi-automatic handgun; Fox sometimes brandished or pointed the gun at bank tellers as he demanded money.
The banks Fox robbed include: Commercial Bank, in Barbourville, on June 17, 2011; Bank of McCreary County, in Pine Knot, on July 5, 2011; Forcht Bank, in Barbourville, on August 19, 2011; Hometown Bank, in Corbin, on October 25, 2011; the Wal-Mart branch of the L&N Federal Credit Union, in Williamsburg, on December 1, 2011; First Volunteer Bank, in Jellico, Tenn., on June 9, 2011; and the Y-12 Federal Credit Union, in LaFollette, Tenn., on October 28, 2011.
In four of these bank robberies, Tasha Fox drove the “getaway” car for her husband. She also pleaded guilty earlier this year.
Under federal law, both defendants will have to serve at least 85 percent of their respective prison sentence.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, William C. Killian, U.S. Attorney for the Eastern District of Tennessee, and Perrye Turner, Special Agent in Charge, FBI, jointly announced the sentence today.
The investigation was conducted by the FBI. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorney Sam Dotson.
William Szudera 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, WILLIAM SZUDERA, a 76-year-old resident of Havre, was sentenced to a term of:
Probation: 4 years
Special Assessment: $500
Restitution: $83,700.59
Fine: $3,000
SZUDERA was sentenced in connection with his guilty plea to mail fraud.
In an Offer of Proof filed by Assistant U.S. Attorney Chad C. Spraker, the government stated it would have proved at trial the following:
From 2001 to 2012, SZUDERA collected workers compensation benefit payments based on his annual representations to the Department of Labor that he was not working and earned no income.
In fact, beginning in1977, SZUDERA was operating a shooting supply business, which made him ineligible for approximately $277,484 in benefits he received from 2001 through 2012.
From 1970 to 1978 SZUDERA was employed by the Bureau of Reclamation and the Western Area Power Administration, which was absorbed into the Bureau of Reclamation in 1977. SZUDERA was injured on the job in 1970. He returned to work in 1971 and received compensation for a partial disability.
In 1984, SZUDERA was added to the Department of Labor's permanent rolls and started receiving workers compensation checks for his wage loss due to his injury. In 1992, the Department of Labor adjusted SZUDERA's compensation after determining that he was able to earn a limited wage. Under that status, SZUDERA collected workers compensation payments based on the limited wage earning capacity of a cashier. In fact, SZUDERA owned and operated a shooting supply business, B&G Shooting Supply since at least 2000.
In a May 2000 application for a Wells Fargo credit card, SZUDERA stated under the job information section that he is self-employed as an owner of a business with a gross monthly salary of $12,500. SZUDERA's tax returns from 2002 to 2010 show that B&G Shooting had gross receipts ranging from approximately $500,000 to $750,000. The returns indicate a profit for every year with the exception of 2006.
Nevertheless, from 2002 to 2011, SZUDERA filled out annual certifications stating that he was unemployed and did not receive any outside income. The annual certifications asked SZUDERA to report all self-employment or involvement in business enterprises, including a family business, even if the activity was part-time or intermittent. Moreover, the certifications asked SZUDERA to report any work or ownership interest in a business enterprise even if the business lost money.
Agents of the Department of Energy interviewed SZUDERA in October 2011. SZUDERA stated that he knew he had to report any additional income he received each year on the annual certification. When asked whether he knowingly received income yet did not report it on the annual certification, SZUDERA answered "yes." SZUDERA's inflated workers compensation benefit checks were mailed from the U.S. Treasury to SZUDERA's home in Havre.
The investigation was a cooperative effort between the U.S. Department of Energy - Office of Inspector General and the U.S. Department of Labor - Office of Inspector General.
Waterloo Man Arraigned on Meth ChargesRead the Press Release
On September 25, 2013, Shawn Buckley, 31, from Waterloo, IL, was arraigned in East St. Louis, Illinois, on a federal indictment charging him with one count of Conspiracy to Distribute 500 grams or more of Methamphetamine and one count of Distribution of 5 grams or more of Methamphetamine, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. A detention hearing is set for September 27, 2013. A jury trial is set for November 25, 2013. If convicted, Buckley faces 10 years to life in prison on the conspiracy charge and 5 to 40 years on the distribution charge. Buckley also faces fines of up to $10,000,000.
An indictment is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
Evidence in support of the indictment in this case was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Participating agencies include the Drug Enforcement Administration (DEA) and the Internal Revenue Service-Criminal Investigation Division. This case is assigned to Assistant United States Attorney Donald S. Boyce for prosecution.
Wade SentencingRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Walt Green announced today that CHRISTOPHER BERNARD WADE, age 42, of Houston, Texas, was sentenced today by Chief U.S. District Judge Brian A. Jackson to serve 138 months in federal prison and five years of supervised release following his release from imprisonment. The sentence results from WADE’S conviction for possession with the intent to distribute five kilograms or more of cocaine, in violation of Title 21, United States Code, Section 841.
On May 3, 2012, WADE was stopped for a traffic violation on Interstate 10 near Grosse Tete, Louisiana. During a search of WADE’s vehicle, an Iberville Parish Sheriff’s Deputy located more than 15 kilograms of cocaine inside of the trunk. Special Agents with the U.S. Department of Homeland Security-Homeland Security Investigations were notified of the large drug seizure and assisted in the subsequent investigation. WADE later admitted that he intended to distribute the 15 kilograms of cocaine in New Orleans, Louisiana. At today’s sentencing, Chief Judge Jackson observed that although WADE had prior convictions involving drug and firearms offenses, he had “entered the big leagues” by trafficking more than 15 kilograms of cocaine.
“Today’s sentencing shows how effective the ongoing cooperation between Homeland Security Investigations and local law enforcement is in identifying and intercepting significant shipments of illegal drugs before they reach our streets,” said Raymond R. Parmer, Jr., Special Agent-in-Charge of HIS-New Orleans. “The Iberville Parish Sheriff’s Office and its Interstate Patrol Division were vital to this case, and criminals should be on notice that HSI will continue to work with its law enforcement partners to identify and seek prosecution of drug crimes.”
This investigation was conducted by the Iberville Parish Sheriff’s Office-Interstate Patrol Division and the U.S. Department of Homeland Security-Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney Chris Dippel.
Utica Man Convicted of Drug Charges Following Trial in Federal CourtRead the Press Release
SYRACUSE, NEW YORK – A jury convicted a Utica, New York resident of federal drug felony charges following a four day jury trial, announced United States Attorney Richard S. Hartunian.
Dean A. Steppello, 43, of Utica, New York was convicted of two counts of Possession of Cocaine With Intent to Distribute. The jury also found he possessed over 500 grams of cocaine, requiring a mandatory minimum sentence of five years imprisonment and a maximum sentence of up to twenty years imprisonment. Sentencing is scheduled for January 30, 2014 in United States District Court in Syracuse.
The case followed the arrest of the defendant on June 25, 2008 by members of the New York State Police Community Narcotics Enforcement Team (“CNET”) in Utica as he attempted to deliver four ounces of cocaine. A subsequent search of the defendant’s residence resulted in the recovery of an additional pound and three quarters of cocaine, drug paraphernalia, a shotgun and four thousand dollars in cash.
The case was investigated by the New York State Police Community Narcotics Enforcement Team and was prosecuted by Assistant U.S. Attorneys Richard R. Southwick and Tamara B. Thomson.
U.S. Attorney General Recognizes New Jersey U.S. Attorney’s Office with Two Director’s AwardsRead the Press Release
NEWARK, N.J. – New Jersey U.S. Attorney Paul J. Fishman announced today that Assistant U.S. Attorney Norman J. Gross and Health Care and Government Fraud Unit Chief Jacob T. Elberg are two of 154 Department of Justice members recognized by Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director H. Marshall Jarrett with a 2013 Director’s Award.
The New Jersey recipients were awarded at a ceremony this afternoon in the U.S. Attorney’s Office in Newark.
“I am proud to celebrate these extremely talented members of our staff,” said U.S. Attorney Fishman. “And I’m delighted that the Department of Justice recognizes the important contributions our Office makes to law enforcement nationwide.”
In a personalized letter to the recipients, Attorney General Holder thanked the recipients for their “exceptional efforts to promote the fair and impartial administration of justice for all Americans.”
“Each day the members of the US Attorneys’ community go to work for the citizens of this country with one goal in mind – to do everything they can to protect the rights of all Americans,” said EOUSA Director Jarrett. “I am continually humbled by their resiliency, dedication and unparalleled work ethic to accomplish this noble mission. Today’s awardees exemplify what it truly means to be a patriot and it is an honor to recognize them for their extraordinary service.”Gross was honored with the Director’s Award for Superior Performance as an Assistant United States Attorney – Appellate for his outstanding appellate advocacy in United States v. Duka. Among many issues argued in this high profile terrorism appeal was the constitutionality of the Foreign Intelligence Surveillance Act (FISA), as amended by the Patriot Act. This first impression issue, heard before U.S Court of Appeals for the Third Circuit, was critical to the Department’s continued efforts to protect against terrorism.
As a result of Gross’ work, defendants’ convictions were affirmed, FISA was upheld, and the Third Circuit established favorable precedent that Department of Justice attorneys will rely on for years to come. Gross’s advocacy was commended at oral argument by the Honorable Theodore H McKee, Chief Judge of the U.S. Court of Appeals for the Third Circuit, who praised him for acting “in the best spirit of professionalism…in representing the government as its attorney.”
Elberg was honored with the Director’s Award for Superior Performance as an Assistant United States Attorney - Criminal. Over the course of three years, Elberg worked tirelessly to investigate and prosecute Maxim Healthcare Services, Inc., resulting in a Deferred Prosecution Agreement and the recovery of more than $150 million on behalf of Medicaid programs nationwide – the largest settlement ever for home health care fraud. His efforts also led to the felony conviction of nine individuals – including three senior executives – in six states.
As a result of Elberg’s synthesis of scores of witnesses and tens of thousands of documents, as well as his remarkable coordination of the nationwide investigation, Elberg and his law enforcement partners were able to take a complaint alleging fraud by individuals at a single office in New Jersey and reveal a nationwide healthcare fraud scheme involving hundreds of offices and a more than $61 million fraud.
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Two Sentenced in HUD Mortgage Fraud CaseRead the Press Release
Defendants Each Agree to Pay Nearly $43,000 in Restitution
POCATELLO – Darin John Henecke, 37, of Pocatello, and Karen DeWall Shaw, 60, of Chubbuck, Idaho, were sentenced yesterday to five years of probation for making false statements to the Department of Housing and Urban Development (HUD), a misdemeanor, U.S. Attorney Wendy J. Olson announced. U.S. Magistrate Judge Ronald E. Bush ordered each defendant to also pay $42,905 in restitution.
According to plea agreements filed in the case, on March 13, 2009, Henecke obtained a residential loan to finance the purchase of a residence in Eagle, Idaho. The loan application submitted in support of Henecke’s loan falsely represented that his co-borrower had employment income of $2,400 per month, when in fact she had no income. The lender relied upon this information to fund the loan, which was guaranteed by HUD. Shortly after the loan was funded, it went into default and foreclosure, causing HUD to sustain a loss. When interviewed by investigators, Henecke admitted that he knew false employment information was submitted to obtain the loan.
Shaw admitted during an interview with investigators in April 2011, that she assisted in the fraud by providing false employment information in order for the borrowers to qualify for the loan. According to the plea agreement, false documents included payroll checks, check stubs, a general employment contract, and employee confidentiality agreement.
The case was investigated by the U.S. Department of Housing and Urban Development Office of Inspector General (HUD-OIG).
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 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 more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Two Pocatello Men Plead Guilty in Drug CaseRead the Press Release
POCATELLO – John D. Heim, 40, of Pocatello, pleaded guilty today in United States District Court to a superseding indictment charging him with conspiracy to launder money, U.S. Attorney Wendy J. Olson announced. Heim’s co-defendant, William Ray Carringer, 23, also of Pocatello, pleaded guilty to possession with intent to distribute marijuana.
According to the plea agreement, between March 1 and September 14, 2013, Heim owned and operated Heim, Inc., a business engaged in the sale of “spice,” a smokeable material containing a Schedule I controlled substance analogue. Heim admitted that he, along with other individuals, engaged in monetary transactions in excess of $10,000 from funds derived from the illegal sale and distribution of spice. Heim admitted the total amount of funds derived from the unlawful activity are $163,534. He faces up to 20 years in prison, a maximum fine of $500,000, and up to five years of supervised release. The government is seeking forfeiture of assets derived from the criminal offenses. As a result of the conviction, Heim will also forfeit to the government property he owns at 354 S. 5th, in Pocatello, and 572 Fort Hall Ave., American Falls, Idaho.
Carringer admitted in court that on May 18, 2012, he attempted to retrieve a FedEx package addressed to him that contained in excess of five pounds of marijuana. According to the plea agreement, Carringer knew the package contained the marijuana and he intended to distribute it to another individual. He faces up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Heim and Carringer are scheduled to be sentenced on December 17, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case is the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Bannock County Sheriff’s Office, with assistance from the Drug Enforcement Administration (DEA), Internal Revenue Service-Criminal Investigation, Pocatello Police Department, Bingham County Sheriff’s Office, Blackfoot Police Department, and Idaho State Police. Other federal agencies participating in the OCEDTF program include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Federal Bureau of Investigation (FBI), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and U.S. Marshals Service.
The OCDETF program is a federal, multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Two Plead Guilty to Robbing Hebron Gun StoreRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Charles H. Morrison III, 25, of Columbus, Ohio and James Allen Banks, 23, of Marion, Ohio have pleaded guilty in U.S. District Court to burglarizing a gun store in Hebron, Ohioand stealing 18 guns on March 20, 2013.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Christopher J. Hyman, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Hebron Police Chief D. James Dean announced the pleas entered before U.S. Magistrate Judge Elizabeth Preston Deavers. Morrison pleaded guilty today; Banks pleaded guilty Monday, September 23.
Each man pleaded guilty to one count of possession of a firearm by a convicted felon and possession of stolen firearms, crimes that are punishable by up to ten years in prison. Each man also pleaded guilty to one count of possession of three firearms with obliterated serial numbers and unlawful burglary of a licensed firearm dealer. Those two crimes are punishable by up to five years in prison.
According to court documents, Morrison and Banks went into Buckeye Outdoors in Hebron on March 20, 2013. Morrison attempted to hide in the ceiling, but left the store after an employee saw him. Morrison later broke the back glass door to gain entry to the store. ATF agents and Hebron police officers reviewed surveillance video and obtained search warrants for two residences used by Morrison and Bank’s residence. They recovered three of the firearms, ammunition, and tools that could be used to obliterate serial numbers on firearms.
ATF agents arrested both men on April 30, 2013. Both have been in custody since their arrests.
Judge Smith will set a date for sentencing following pre-sentence investigation conducted by the court.
U.S. Attorney Stewart commended the cooperative investigation by federal and local law enforcement agencies, as well as Assistant U.S. Attorney J. Michael Marous, who is prosecuting the case.
Two Indicted for Operating $700,000 "Payday Loan" Tax SchemeRead the Press Release
The managers of two Instant Tax Service offices in Toledo were indicted on several charges related to a $700,000 “payday loan” tax-refund scheme, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
“These defendants preyed upon clients who were in some cases desperate and in other cases not financially experienced,” Dettelbach said. “We will continue to work with the IRS to prosecute those who would abuse tax laws.”
IRS Criminal Investigation Special Agent in Charge Kathy A. Enstrom said: “Individuals who commit refund fraud and identity theft of this magnitude and with this degree of trickery, dishonesty and deceit, deserve to be punished to the fullest extent of the law. Be assured that IRS Criminal Investigation, together with our partners at the U.S. Attorney's Office, will hold those who engage in similar behavior fully accountable."
Adonay Mehreteab, age 27, of Fort Wayne, Indiana and Miranda Parr, age 32, of Heath, Ohio, are charged with conspiracy, wire fraud and making false, fictitious, or fraudulent claims to the Internal Revenue Service for tax year 2011. Parr faces an additional charge of aggravated identity theft.
Mehreteab owned and operated two Instant Tax Service franchise offices, one on Monroe Street and the other on Airport Highway. Mehreteab and Parr managed the offices, according to the indictment.
Mehreteab and Parr prepared and submitted tax returns claiming refund amounts in excess of what the taxpayers were entitled to. Mehreteab and Parr’s conspiracy resulted in at least 114 false, fictitious and fraudulent claims to be filed, causing a total refund of $700,974 and a loss to the government of $265,510, according to the indictment.As part of the conspiracy, Corporate ITS advertised “$1,000 holiday loans” to potential clients at the end of 2011. While ITS advertised $1,000 loans, most were in the range of $50 to $100, according to the indictment.
Mehreteab required clients applying for an ITS loan to provide information including their name, Social Security number, address, paystub, names of dependants and their Social Security numbers. Mehreteab indicated the loan would be a partial advance on their estimated 2011 tax return, according to the indictment.
Mehreteab, Parr, and others both known and unknown to the Grand Jury, then used personal and employment information of the loan clients to file 2011 individual income tax returns of behalf of loan clients, sometimes without their knowledge or authorization, according to the indictment.
Sometimes Mehreteab and Parr prepared correct returns when the client was present but later added false items to the return, such as false wages or incorrect dependants, to increase the refund amount. They also added false credits and deductions without verification and, in some instances, without authorization, according to the indictment.
ITS also charged exorbitant fees, typically $500 to $1,000, which were deducted from the clients’ refunds without disclosing to the taxpayer clients the fee amount prior to the return being filed, according to the indictment.
If convicted, the defendants’ sentence will be determined by the Court after reviewing factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Internal Revenue Service Criminal Investigation, Toledo, Ohio. The case is being handled by Assistant United States Attorney Joseph R. Wilson.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two Co-Defendants Plead Guilty to Meth ChargesRead the Press Release
POCATELLO – Jaime Meza-Gonzalez, 47, and Saul Arellano-Alvarado, 41, both of Idaho Falls, pleaded guilty yesterday in United States District Court to federal drug charges, U.S. Attorney Wendy J. Olson announced. Meza-Gonzalez pleaded guilty to possession with intent to distribute methamphetamine, aiding and abetting; Arellano-Alvarado pleaded guilty to distributing five grams or more of methamphetamine.
Meza-Gonzalez faces up to 20 years in prison, a maximum fine of $1 million, and at least three years of supervised release. Arellano-Alvarado faces a minimum term of 10 years up to life in prison, a maximum fine of $10 million, and at least five years of supervised release.
According to the plea agreements, on November 16, 2010, an individual contacted Meza-Gonzalez for the purpose of purchasing methamphetamine. Meza-Gonzalez directed the individual to Arellano-Alvarado. On November 17, Arellano-Alvarado made arrangements to distribute methamphetamine to the individual at a parking lot in Idaho Falls, and subsequently sold the individual in excess of five grams of methamphetamine.
Arellano-Alvarado and Meza-Gonzalez are scheduled to be sentenced on December 17, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The third defendant, Roberto Carlos Camarena, 25, of Sugar City, Idaho, is a fugitive. A warrant has been issued for his arrest.
The charges are the result of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), including the Federal Bureau of Investigation (FBI), Idaho State Police, Bonneville County Sheriff's Office, Idaho Falls Police Department, Madison County Sheriff's Office, Rexburg Police Department, Bingham County Sheriff’s Office, Fremont County Sheriff’s Office, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Other federal agencies participating in the OCDETF program include the Drug Enforcement Administration and the U.S. Marshals Service.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Two Charged in Federal Court with Armed Robbery of Belleville Liquor StoreRead the Press Release
On September 17, 2013, a federal grand jury sitting in East St. Louis indicted Roderick L. Taylor, 22, and Charmonequette Reynolds, 21, with Interference with Commerce by Robbery, which is a violation of the Hobbs Act, as well as with a charge of Use of a Firearm During a Crime of Violence, in connection with the armed robbery of Arena Liquor that occurred in Belleville on July 12, 2013, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois announced today. Following a hearing held today, both defendants were ordered detained pending trial, that is, held without bond. Trial is scheduled for November 25, 2013.
If convicted of a violation of the Hobbs Act, the defendants each face a term in prison of up to 20 years, a fine of up to $250,000, or both, and a term of supervised release of up to 3 years. If convicted of the offense of Use of a Firearm During a Crime of Violence, both defendants face a minimum term in prison of 7 years up to a maximum term of Life, consecutive to, meaning in addition to, any term of imprisonment imposed on the Hobbs Act violation, as well as a fine of up to $250,000 and a term of supervised release of up to 5 years.
An indictment is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
This case is being investigated by the Belleville Police Department and the Federal Bureau of Investigation as part of the Metro East Armed Robbery Initiative recently announced by United States Attorney Wigginton. The case is assigned to Assistant United States Attorney Ali Summers for prosecution.
Toledo Man Charged Wtih Failing to Register as Sex OffenderRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced an information was filed against Keith A. Prather, age 25, of Toledo. The charge relates to the failure to register as a sex offender under the Sexual Offender Registration and Notification Act.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the United States Marshals Service, Toledo, Ohio. The case is being handled by Assistant United States Attorney Alissa M. Sterling
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Iowa Restaurant Owners Convicted and Sentenced for Harboring Illegal Aliens and Filing False Tax ReturnsRead the Press Release
DES MOINES, IA— United States Attorney Nicholas A. Klinefeldt announced today that the last of three Iowa restaurant owners and operators was sentenced for harboring illegal aliens and for filing false statements on the restaurant’s tax returns by not listing the illegal aliens as employees.
On September 20, 2013, Chief Judge James E. Gritzner sentenced Ali Bayram to two years of probation, restitution to the IRS of $15,986.00, a $10,000 fine, and a $200 special assessment payable to the Crime Victim Fund. Chief Judge Gritzner sentenced Fikret Bayram on August 15, 2013, to two years of probation, restitution of $15,788.64 due to the IRS, a $10,000 fine, and a $200 special assessment payable to the Crime Victim Fund. Judge Ronald E. Longstaff sentenced Ali Sengul on August 9, 2013, to two years of probation, restitution of $15,313.00 due to the IRS, and a $200 special assessment to the Crime Victims Fund.
Ali Bayram, 60, Oskaloosa, Iowa, ran the Oskaloosa Family Restaurant in Oskaloosa, Iowa. Fikret Bayram, 59, Monmouth, Illinois, also operated the Oskaloosa Family Restaurant. Ali Sengul, 44, Pella, operated the Tulip Garden Restaurant in Pella, Iowa. All three men hired illegal aliens knowing the individuals were not in the country legally and had no permission to work. The men also provided housing to the illegal workers. Each signed tax forms for the restaurants which failed to report the illegal aliens as employees.
These cases were the result of a two-year investigation conducted by Homeland Security Investigations and IRS Criminal Investigation. The cases were prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Three Charged with Fradulent Conduct Related to the Upper Cumberland Development DistrictRead the Press Release
Wendy Askins, 53, of Cookeville, Tenn., Larry Gene Webb, 64, of Smithville, Tenn. and Billy Michael Foster, 66, of Smithville, Tenn., were indicted yesterday by a federal grand jury and charged with various federal offenses related to theft and fraud from the Upper Cumberland Development District (UCCD), announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee. UCCD is a quasi-governmental economic development resource for the fourteen counties in the Upper Cumberland Region that was established by the Tennessee General Assembly and was funded in part by state and federal grants.
Askins and Webb were charged with conspiring to commit various federal offenses as well as six counts of theft and conversion of government property in excess of $1,000; four counts of bank fraud; three counts of money laundering; and a single count of concealing a material fact within the jurisdiction of the United States. Additionally, Askins and Foster were charged with a single count of making a false statement regarding a matter within the jurisdiction of the United States.
“Once again, we will reiterate that those who seek to profit by defrauding the taxpaying public and misusing government funds will be held accountable,” said Acting U.S. Attorney David Rivera. “The personal gain and lavish lifestyles gained by fraudulent schemes will eventually come to an end. Public corruption remains a top priority of the U.S. Attorney’s Office and our partner law enforcement agencies.”
According to the indictment, Askins, who was the Executive Director of the UCDD, and Webb, who was the Deputy Director of UCDD, perpetrated a scheme from February 2010 through February 2012 to convert over $670,000 of government funds intended for UCDD and its related agencies to the use of the “Living the Dream” property, which was owned by Askins and Webb. Askins and Webb incorporated Living the Dream in their own names and caused money to be transferred from UCDD to Living the Dream without seeking the approval of the UCDD Board of Directors. Askins and Webb also obtained bank loans and lines of credit in excess of $1,000,000 to renovate the Living the Dream property by using UCDD bank accounts and property as collateral for the loans.
In order to cover up the illegal activity, Askins and Webb directed other individuals to alter the official minutes of the UCDD board meeting that occurred on February 16, 2010, and to delete audio recordings of all UCDD meetings. Askins prepared a false statement, which was read by Foster, who at the time was the chairman of the UCDD Executive Committee and Board of Directors, at a UCDD board meeting on January 19, 2012. Foster knew the statement was false when he read it.
“This indictment should send a signal to those who would seek to take advantage of a position of trust for personal gain,“ said A. Todd McCall, Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation. “The FBI and our law enforcement partners place a priority on investigating these crimes, and will continue to work to ensure that those who violate the law are held accountable.”
Christopher A. Henry, Special Agent in Charge, IRS Criminal Investigation, Nashville Field Office, said, “IRS Criminal Investigation is committed to investigating and prosecuting those who defraud state and federal grant programs and sending a clear message that these violations are serious crimes against the American public. Our special agents provide the financial expertise in following the money.”
“This is a prime example of a combined investigative effort, successfully exposing grant fraud and protecting taxpayer monies,” said Todd Zinser, Inspector General for the U.S. Department of Commerce- OIG.
If convicted, Askins faces up to two hundred and twenty-five years in prison and a $6,750,000 fine as well as forfeiture of property derived from or used in the bank fraud and money laundering offenses charged. Webb faces up to two hundred and twenty years in prison and a $6,500,000 fine, as well as forfeiture of property derived from or used in the bank fraud and money laundering offenses charged, and Foster faces up to five years in prison and a $250,000 fine.The case was investigated by agents with the U.S. Department of Health and Human Services, Office of the Inspector General, the U.S. Department of Commerce, Office of Inspector General, the IRS- Criminal Investigations and the FBI, with assistance from the U.S. Department of Housing and Urban Development- Office of Inspector General. The United States is represented by Assistant U.S. Attorneys Darryl Stewart and Scarlett Singleton.
An indictment is merely an accusation and is not evidence of guilt. Defendants are presumed innocent unless and until proven guilty in a court of law.
Thompson SentencingRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Walt Green announced that ADRIAN K. THOMPSON, age 35, of Baton Rouge, Louisiana, was sentenced today by U.S. District Court Judge James J. Brady to serve 84 months in federal prison and three years of supervised release after imprisonment. The sentence results from THOMPSON’S convictions for possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922, and possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924.
On November 29, 2011, Baton Rouge Police Officers responded to a complaint of shots fired near THOMPSON’S residence on Belfair Drive in Baton Rouge, Louisiana. After canvassing the neighborhood and speaking with witnesses, officers searched THOMPSON’S residence where they seized an AK-47 rifle, along with marijuana, cocaine, and illegal prescription drugs. Upon further investigation, Baton Rouge Police and Task Force Agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives determined that THOMPSON had been involved in a drug trafficking-related argument with another individual, and during the course of the dispute, THOMPSON fired his AK-47 rifle at least eleven times. At least two of the bullets THOMPSON fired struck an occupied home nearby.
This matter was investigated by the Baton Rouge Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant United States Attorney Chris Dippel.
Talladega County Man Agrees to Plead Guilty to Murder for HireRead the Press Release
BIRMINGHAM -- Federal prosecutors today charged a Talladega County man in connection with his efforts to hire a member of the Ku Klux Klan to murder a man he suspected of raping his wife, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
In a one-count information filed in U.S. District Court, the U.S. Attorney's Office charged ALLEN WAYNE DENSEN MORGAN, 29, of Munford, with using and causing someone else to use interstate facilities and travel -- a telephone and a motor vehicle -- with the intent to commit a murder-for hire. Morgan has agreed to plead guilty to the charge.
Federal officials arrested Morgan in August after he told undercover officers, whom he believed to be members of the KKK, that he would pay them to murder a black neighbor who Morgan's wife had accused of raping her, according to Morgan's plea agreement with the government. Morgan offered a watch, a necklace and a gun as payment for the murder and gave explicit details for the man's torture and murder, according to the plea agreement.
Morgan's efforts to arrange the paid murder of his neighbor unfolded as follows, according to his plea agreement:
Morgan talked to an undercover FBI agent by telephone on Aug. 22, who identified himself as a KKK member. The men arranged to meet three days later at an Oxford motel to discuss payment for the murder. In that phone conversation, Morgan used a racial slur to describe the man he wanted killed and bragged that he had just fired several shots toward the man to intimidate him. Morgan also described, in detail, how he wanted the man "hung from a tree like a deer and gutted," to have body parts cut off, and to "die a slow, painful death."
Morgan faces a maximum penalty of 10 years in prison and a $250,000 fine.
The FBI investigated the case, which Assistant U.S. Attorneys Pat Meadows and John B. Felton are prosecuting.
St. Joseph Woman Sentenced to 3.5 Years for Role in Scheme to Fraudulently Obtain Licenses for more than 100 Illegal AliensRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a St. Joseph, Mo., woman was sentenced in federal court to her role in a conspiracy to provide false identity documents so that more than 100 illegal immigrants could fraudulently obtain driver’s and non-driver’s licenses from the license office in St. Joseph, which is operated by a contractor for the Missouri Department of Revenue.
Isabel Ramirez Mendoza, 62, of St. Joseph, was sentenced by U.S. District Judge Brian C. Wimes on Thursday, Sep. 26, 2013, to a total of 42 months of imprisonment. The court also ordered Mendoza to pay a $125,000 money judgment to the government. Prior to the sentencing, the defendant had already forfeited several vehicles that were seized by the government because they were used to transport illegal aliens and to further the conspiracy, including a 2004 Chevrolet Silverado, a 2009 Dodge Ram and a 2005 Dodge Durango.
On Feb. 28, 2013, Mendoza pleaded guilty to participating in a conspiracy to unlawfully produce identification documents, to unlawfully transfer the means of identification of another person and to commit Social Security fraud. Mendoza also pleaded guilty to aggravated identity theft.
Illegal aliens traveled across the United States to obtain licenses at the St. Joseph license office by using unlawfully obtained birth certificates and Social Security cards. It is estimated that well over 100 Missouri licenses have been unlawfully issued to illegal aliens as part of this conspiracy.
Mendoza admitted that she assisted well over 100 illegal aliens in fraudulently obtaining Missouri driver’s and non-driver’s licenses from July 2010 until Jan. 10, 2012. Mendoza and others (including family members, such as her minor son) escorted illegal aliens into the St. Joseph license office under the guise of serving as translators.
Mendoza charged a fee, typically $100, for assisting the illegal aliens to obtain a Missouri driver’s or non-driver’s license that was in the name of another person who was listed on unlawfully obtained birth certificates and Social Security cards. Mendoza also referred illegal aliens to co-conspirators who could assist them in obtaining identification documents that could be used to fraudulently obtain Missouri non-driver’s licenses. The illegal aliens were usually charged between $500 and $950 for the document sets and the Missouri driver’s and non-driver’s licenses.
Mendoza assisted illegal aliens in preparing for potential questions from the license office employees, such as learning the names on the birth certificates, the names of the parents on the birth certificates, the dates of birth, and the Social Security numbers.
Mendoza knew the vast majority, if not all, of the illegal aliens she helped had stolen the identity of American citizens to fraudulently obtain Missouri non-driver’s licenses. Illegal aliens could later use these fraudulently obtained Missouri non-driver’s licenses as evidence of authorized stay or employment in the United States. The illegal aliens could also potentially use these identification documents to fraudulently obtain credit in the name of another person or to further other fraudulent schemes.
Sometime between June 22, 2009, and Nov. 2, 2011, Mendoza approached co-defendant Thomas Richard McNamara III, 26, of St. Joseph, who was an employee at the St. Joseph license office. She asked McNamara to accept identification documents he was not supposed to accept and issue Missouri driver’s or non-driver’s licenses to individuals who were escorted by her and others. In exchange, she offered to pay McNamara a fee of approximately $50 to $100 for each time he issued a license he was not supposed to issue due to the inadequate documentation of their true identity.
McNamara pleaded guilty on Dec. 11, 2012 to his role in the conspiracy. According to McNamara, it was common knowledge among the employees at the license office that co-conspirators were assisting illegal aliens to obtain licenses.
McNamara admitted that he accepted improper documents approximately two to three times a week, but he didn’t do this every week. Mendoza often called McNamara before bringing aliens to the license office to make sure he would be working and to let him know they were bringing in clients. McNamara then met with Mendoza on numerous occasions during non-work hours at locations
Mendoza is the first defendant to be sentenced in this case. All of the other defendants in this case have pled guilty and are awaiting sentencing. Hector Juarez Mendoza, Sr., 54, a citizen of Mexico who is a lawful permanent resident of the United States, Pedro Pablo-Solis, 28, a citizen of Guatemala residing in Liberal, Kan., Thomas Richard McNamara III, 26, formerly an employee at the St. Joseph license office, Domingo Ajanel-Castro, 33, a citizen of Guatemala residing in St. Joseph, have pleaded guilty to their roles in a conspiracy to unlawfully produce identification documents, unlawfully transfer the means of identification of another person and commit Social Security fraud and to aggravated identity theft. Ajanel-Castro also pleaded guilty to possessing false or fraudulently obtained identification documents.
This case is being prosecuted by Special Assistant U.S. Attorney Trey Alford. It was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations, the Buchanan County, Mo., Sheriff’s Department, the St. Joseph, Mo., Police Department, the Platte County, Mo., Sheriff’s Department, the Missouri State Highway Patrol, the Missouri Department of Revenue Investigation Bureau, the Social Security Administration Office of Inspector General, and the U.S. Postal Inspection Service.St. Croix Brothers Sentenced to Prison for Carjacking and Related OffensesRead the Press Release
St. Croix, USVI - District Court Chief Judge Wilma A. Lewis on Tuesday sentenced one St. Croix man to 22 years in prison, and his twin brother to 11 years for carjacking, robbery and other related offenses, announced United States Attorney Ronald W. Sharpe and Virgin Islands Police Commissioner Rodney Querrard.
Kareem Louis, 22, was sentenced to 121 months in prison for carjacking; 84 months for using and carrying a firearm during a crime of violence; 120 months for robbery; 180 months for unauthorized possession of a firearm during a violent crime, a mandatory minimum sentence; 180 months for unauthorized possession of a firearm; and 60 months for unauthorized use of a vehicle. All of the sentences are to be served concurrently, except the 84 months for using and carrying a firearm during a crime of violence, which will be served consecutively.
Raheem Louis, 22, was sentenced to 140 months for carjacking, 120 months for robbery, and 60 months for unauthorized use of a vehicle, all to be served concurrently. The Louis brothers also were ordered to pay $150 in restitution to the victim.
Kareem Louis was convicted on December 14, 2012 and Raheem Louis was convicted on December 19, 2011. Evidence presented at both trials established that on August 19, 2011, Kareem and Raheem Louis approached the victim after she had just unloaded a donation to the flea market in the Richmond area of St Croix. Kareem Louis pointed a long-barreled gun at the victim’s head and demanded the keys to her car. The defendants then sped off in her 2010 blue Jeep Compass. Evidence presented at trial also established that the brothers drove the stolen car to their minor siblings’ residence and used the vehicle to take their minor siblings to the Catherine’s Rest Supermarket on three occasions. On their third trip to the store, police apprehended Kareem Louis as he exited the Jeep Compass. He was ordered to stop and did so briefly before running to the side of the shop. As he was running, police observed him reach to his waist and observed a firearm in his hand. A long-barreled handgun was found behind a dumpster in the area where Kareem Louis was observed. Raheem Louis sped off in the vehicle and led the police on a high-speed chase. He abandoned the vehicle in the bushes near the Catherine’s Rest Road and Southside Road intersection. Raheem Louis was arrested pursuant to a warrant on September 1, 2011.
U.S. Attorney Sharpe commended the efforts of the Virgin Islands Police Department, which investigated this case. The case was prosecuted by Assistant U.S. Attorneys Rhonda Williams-Henry and Alphonso Andrews.
St. Charles Woman Pleads Guilty to Fraud ChargesRead the Press Release
St. Louis, MO – DANIELA SPIRIDON pled guilty to a real estate scheme related to the purchase or sale of properties.
According to court documents, Spiridon was affiliated with several businesses from an office in Chesterfield, Missouri, which included A & AD Investments, LLC; CDRS ESC Investments; Sentrix Loan Production Office and others. As part of the scheme, Spiridon fraudulently offered to assist buyers in the purchases of properties that were acquired by lenders through foreclosure and held in inventory, known as Real Estate Owned (REO) properties. She offered to broker purchases or arrange for financing related to the purchase or sale of the REO properties. She had potential buyers place deposits on the properties, which she was to put into an escrow account, but she actually put the monies in a non-escrow account in one of her own companies. She often used buyers’ funds for personal expenses and to reimburse other buyers who demanded their funds be returned rather than to secure real property or financing.Spiridon, St. Charles, MO, pled guilty to six felony counts of wire fraud before United States District Judge John A. Ross. Sentencing has been set for January 9, 2014.
Each count of wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. Restitution is mandatory.
Additionally, with her plea, Spiridon has agreed to the forfeiture of money and property derived from the illegal activity.
This case was investigated by the Federal Bureau of Investigation, Postal Inspection Service and Federal Housing Finance Agency-Office of Inspector General. Assistant United States Attorney Rob Livergood is handling the case for the U.S. Attorney's Office.Springfield Man Indicted on Federal Firearms ChargesRead the Press Release
BOSTON – A Springfield man was charged today in U.S. District Court in Springfield with possession of a firearm and ammunition as a convicted felon.
Randy Rivera, 34, formerly of Springfield, was indicted with being a convicted felon in possession of a firearm.
The indictment alleges that on January 4, 2013, Rivera, who is a convicted felon, possessed a Smith & Wesson, model M&P 9C, 9mm pistol, and17 rounds of 9mm ammunition.
If convicted, Rivera faces a mandatory sentence of 15 years in prison, five years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and John Arvanitis, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kevin O’Regan of Ortiz’s Springfield Branch Office.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.