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26 September 2013
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.
(Download Press Release )
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.
Six Individuals, Including Three Licensed Mortgage Brokers and A Real Estate Agent, Have Agreed to Pay Civil Penalties to the United States to Settle Civil Fraud ClaimsRead the Press Release
The Defendants Obtained Mortgage Loans Based On Falsified Mortgage Applications To Purchase Investment Properties In Charlotte’s Dilworth Neighborhood
CHARLOTTE, N.C. – Six individuals, including three licensed mortgage brokers and a real estate agent, have agreed to pay civil penalties ranging from $5,000 to $85,000 to the United States to resolve civil fraud allegations stemming from false statements they made in mortgage loan applications, announced Anne M. Tompkins, United States Attorney for the Western District of North Carolina.
In addition to the civil penalties, Kyle Frey, Adam Goulet, Roger Sterling Moore, William S. Nunemaker, Tyler P. Nunemaker and Daniel Brewton (Defendants) have also agreed to pay to the United States any profits from the sale of the real estate properties they purchased with those loans.
The civil complaints filed against the defendants pursuant to the Financial Institutions Reform, Recovery, and Enforcement Act, (“FIRREA”), allege that beginning in or about 2005 to in or about 2008, the defendants obtained mortgage loans from various financial institutions and purchased real estate properties as speculative investments in Charlotte’s Dilworth neighborhood. A federal investigation revealed that the loan applications the defendants submitted contained false statements. The civil complaints filed in U.S. District Court allege that the defendants falsified information on the mortgage applications, including the borrower’s income, assets, liabilities, and/or net worth.
According to court records, the defendants also falsely represented on the mortgage applications that they were buying the houses as their primary residences when, in fact, they had no intention of living in them. According to allegations contained in filed documents, the defendants purchased the properties with the intention of building new houses and then selling them quickly for a profit. By representing to the financial institutions that the mortgage loans were for primary residences, the defendants were able to obtain favorable “no recourse” loans, which typically means that if they defaulted on the mortgages, the lender’s only recourse would be against that one property bought and built with the loan and the defendants’ other assets would not be at risk. Under such circumstances, a borrower is attempting to use the bank’s money, risk free, to speculate in real estate development. The United States contends that through the false statements alleged in these actions, the defendants avoided having to obtain commercial loans which typically would have required larger down payments, personal guarantees, or the pledging of other assets, and further avoided the risk associated with being personally liable for the success of their real estate speculation.
The defendants were on notice of the requirement to provide truthful statements in mortgage applications as they were either licensed mortgage originators, licensed real estate agents, experienced real estate investors, or closely related to such persons. In addition, all of the misrepresentations were made on the mortgage applications, despite the fact that each loan application contained a warning against making false statements or misrepresentations on the form. The mortgage loans obtained based on the false applications were generally in the range of $775,000 to $890,000.
In the FIRREA civil actions filed by the U.S. Attorney’s Office, without admitting liability, the defendants have agreed to settle the cases by paying civil penalties ranging from $5,000 to $85,000 and to sell properties which the United States alleges were purchased with mortgages obtained by false statements. Also, pursuant to these settlements, the profits – if any – from the sale of these properties will be surrendered to the United States.
Congress enacted FIRREA in 1989 as part of a comprehensive legislative plan to reform and strengthen the banking system and the federal deposit insurance system that protects the public from bank failures. FIRREA also authorizes the Department of Justice to file civil actions to recover monetary penalties of up to $1 million per false statement made in transactions affecting financial institutions.
In making today’s announcement, U.S. Attorney Tompkins thanked the Charlotte Division of the FBI and the Enforcement Division of the North Carolina Office of the Commissioner of Banks for their assistance in investigating this case. The case is being handled by Special Assistant United States Attorney Allison Carroll, and Assistant United States Attorneys Paul Taylor and Mike Savage of the U.S. Attorney’s Office for the Western District of North Carolina. The investigation is ongoing.
Six Charged in Ohio with Operating an Illegal Gambling Business and Other Related OffensesRead the Press Release
The Justice Department and Internal Revenue Service (IRS) announced today that Reece Powers II, the former co-owner of R&J Partnership Ltd. doing business as Reece’s Las Vegas Supply (RLVS), a gambling supplies store located in Dayton, Ohio, was charged with illegal gambling, tax fraud and obstruction-of-justice-related offenses in an eight-count indictment unsealed today. Other defendants charged in the indictment are Douglas A. Sanders, Jason S. Pulaski, Michael E. Gedeon, Jennifer Williams and Walter F. Dyer.
The indictment, which was returned on Sept. 24, 2013, was unsealed following the arrests of Powers, Pulaski, Gedeon, Williams and Dyer. All six defendants were charged with one count each of conspiracy to operate an illegal gambling business, and one count each of operating an illegal gambling business. Additionally, Powers was charged with one count of conspiracy to defraud the United States by impeding and impairing the lawful functions of the IRS, and one count of witness tampering. Furthermore, Pulaski, Gedeon, Williams and Dyer were each charged with one count of obstruction of justice.
According to the indictment, between February 2004 and May 2011, Powers oversaw the recruitment of local charitable organizations to sponsor casino-like card games, such as Texas Hold’Em poker tournaments and live-action poker games (poker fundraisers), that were exempted from the general prohibition against games of chance under then-existing Ohio laws. The indictment alleges that Powers skimmed a portion of the money received from the poker fundraisers while providing false accountings of the money generated to the charitable organizations that they were meant to benefit. The indictment further alleges that Sanders, Pulaski, Gedeon, Williams, Dyer and other co-conspirators who worked as card dealers, cashiers, chip sellers, pit bosses, tournament directors and managers, received compensation for their roles in conducting the poker fundraisers in violation of Ohio law, at Powers’ direction. The indictment further alleges that each of the defendants claimed that they were uncompensated volunteers and that several of them deliberately misled investigators of the State of Ohio’s Attorney General’s Office and the IRS during the investigation.
According to the indictment, Powers further conspired with another individual to sell RLVS and its associated real estate so that it appeared as if the business was sold for an amount less than its actual sale price, in an effort by Powers to evade the payment of taxes. According to the indictment, Dyer, Pulaski, Gedeon, and Williams further committed obstruction of justice by testifying falsely before a federal grand jury investigating the poker scheme. Additionally, Powers is charged with tampering with a witness by allegedly instructing the witness to testify falsely to the federal grand jury.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. District Judge Timothy Black for the Southern District of Ohio will be presiding over the case after the arraignment of the defendants. If convicted, Powers faces a maximum sentence of 35 years in prison, a fine of $1,000,000, and five years of supervised release. If convicted, Pulaski, Gedeon, Williams and Dyer each face a maximum sentence of 20 years in prison, a fine of $750,000 and three years of supervised release. If convicted, Sanders faces a maximum sentence of ten years in prison, a fine of $500,000 and three years of supervised release.
This case was investigated by special agents of IRS - Criminal Investigation. The case is being prosecuted by Trial Attorneys Jorge Almonte and Stephen Descano of the Justice Department’s Tax Division.
Additional information about the Justice Department’s Tax Division and its enforcement efforts may be found at http://www.usdoj.gov/tax/ .
Sergio Alejandro Lopez 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 U.S. District Judge Dana L. Christensen, SERGIO ALEJANDRO LOPEZ, a 37-year-old resident of Portland, Oregon, was sentenced to a term of:
Prison: 130 months
Special Assessment: $200
Supervised Release: 5 years
LOPEZ was sentenced in connection with his guilty plea to (2) counts of distribution of methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Joseph E. Thaggard, the government stated it would have proved at trial the following:
In January 2011, a confidential informant (hereafter "the CI") in Great Falls worked under the direction and supervision of Central Montana Drug Task Force (CMDTF) agents to investigate drug trafficking in Great Falls;
In that capacity, the CI made several phone calls to LOPEZ, who was living outside the State of Montana. LOPEZ agreed to mail methamphetamine to the CI in Great Falls in exchange for the CI sending money to LOPEZ by Western Union.
As part of this plan, on January 19, 2011, the CI sent two Western Union wires to LOPEZ in the amounts of $500 and $600.
LOPEZ, or a person acting at his behest, then mailed a package to the CI in Great Falls. On January 20, 2011, agents seized approximately 31.2 grams of purported methamphetamine found in the package mailed to the CI.
Subsequently, the CI set up another postal delivery of methamphetamine by LOPEZ. On January 29, 2011, two Western Union wires in the amounts of $500 and $600 were sent to LOPEZ to purchase the methamphetamine. LOPEZ, or persons acting at his behest, then mailed a package of methamphetamine to the CI in Great Falls.
On January 31, 2011, agents seized approximately 34.8 grams of purported methamphetamine sent to the CI by LOPEZ, or persons working at his direction.
The substances seized on January 20 and January 31, 2011, were submitted to Drug Enforcement Administration's Western Region Laboratory for chemical analysis by a qualified forensic chemist. That analysis revealed each package contained five or more grams of actual (pure) methamphetamine, a Schedule II controlled substance.
The material in the packages seized on January 20 and 31, 2011, was also submitted to the DEA laboratory for latent fingerprint analysis by a qualified fingerprint examiner. The examination disclosed that a latent fingerprint lifted from material contained in the package seized on January 20, 2011, matched LOPEZ's known fingerprints.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that LOPEZ will likely serve all of the time imposed by the court. In the federal system, LOPEZ does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Federal Bureau of Investigation, the Montana Division of Criminal Investigation, and the Russell County Drug Task Force.
San Antonio Man Sentenced to Federal Prison for Downloading Child PornRead the Press Release
In San Antonio, 55-year-old Victor Zamarron, a former civilian contractor at Brooks Army Medical Center, was sentenced to 210 months in federal prison followed by 50 years of supervised release for downloading child pornography announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Armando Fernandez, San Antonio Division.
In September 2012, a routine information technology inspection revealed that Zamarron was downloading and viewing child pornography through the government computer system. A subsequent search warrant executed by FBI agents at the defendant’s residence resulted in the seizure of two computers. A forensics examination of those computers revealed the presence of more than 30,000 images depicting child pornography. On June 24, 2013, Zamarron pleaded guilty to one count of receipt of child pornography.
This investigation was conducted by the Federal Bureau of Investigation together with the U.S. Army Criminal Investigation Division at Fort Sam Houston in San Antonio. Assistant United States Attorney Tracy Thompson prosecuted this case on behalf of the government.Romanian Man Convicted on 33 Counts of Wire FraudRead the Press Release
VICTORIA, Texas - A federal jury sitting in Victoria has convicted Romanian national Doru Gabriel Trifu, 28, on all 33 counts as charged in an Internet fraud scheme, announced United States Attorney Kenneth Magidson. The jury returned its verdicts late yesterday following a four-day trial.
Trifu, a Romanian non-immigrant residing in Orangevale, Calif., was part of the fraudulent scheme in which consumer items were listed for sale over the Internet. Individuals attempting to make purchases were instructed to send money via MoneyGram to an escrow agent who would accept the funds, complete the transaction and deliver the item. However, after the buyer electronically transferred the money, the item would never be delivered.
During trial, the government presented videos and numerous surveillance photographs taken from Wal-Mart stores across Texas, Mississippi and Alabama where the fraudulent transactions occurred.
Testimony was provided by several victims who described how they were told they were purchasing the item from a U.S. serviceman who was about to deploy to the Middle East and were told to use a third party broker to complete the transaction.
An agent with Homeland Security Investigations (HSI) also testified and identified a pattern of approximately 230 fraudulent transactions between March 2011 and February 2012 using two fake U.S. passport numbers. Over the course of the scheme, the amount of identified fraud totaled more than $567,000.
Senior U.S. District Judge John Rainey, who presided over the trial, has set sentencing for Dec. 2, 2013, at which time Trifu faces a maximum of 20 years of imprisonment and a possible $250,000 fine on each count. He has been in custody since his November arrest in California where he will remain pending that hearing.The case was investigated by HSI. Assistant U.S. Attorney Lance Watt is prosecuting.
Rochester Man Pleads Guilty to Defrauding Elderly in Telemarketing SchemeRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Ricky Miller, Sr., 55, of Rochester, N.Y., pleaded guilty to conspiracy to commit mail fraud in a telemarketing scheme before U.S. District Judge David G. Larimer. The charge carries a maximum penalty of 30 years in prison, a $250,000 fine, or both.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Miller worked with a group based in Jamaica that ran a bogus sweepstakes telemarketing scheme. The scheme, which targeted the elderly, involved calling victims with news that they had won a sweepstakes prize or lottery. The victims were then asked for money in order to release the purported winnings. The defendant agreed to act as a point of contact in the United States to receive money from the victims which he then forwarded to Jamaica after taking a substantial cut for himself. Victims sent approximately $300,000 to Miller during the course of the scheme.
The plea is the culmination of an investigation by the United States Postal Inspection Service, under the direction of Inspector In Charge Kevin Niland of the Boston Division.Previously Convicted Sex Offender Sentenced to 10 Years in Prison for Possessing Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Harold Michael Nicol, age 53, of Cumberland, Maryland, today to 10 years in prison, followed by lifetime supervised release, for possessing child pornography. Judge Garbis ordered that upon his release from prison, Nicol must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA). In 1997, Nicol was convicted of a sex offense in the Allegany County Circuit Court.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Cumberland Police Chief Charles H. Hinnant; and Allegany County State’s Attorney Michael O. Twigg.
According to the plea agreement, in November 2011, during an undercover internet investigation into a file sharing program, an undercover officer downloaded four files containing images of prepubescent minor engaging in sexually explicit conduct with adults. Additional investigation determined that the files were being made available for download by Nicol from his home computer. A search warrant was subsequently executed at Nicol’s residence in Cumberland. Computers and computer storage media were seized, along with a .270 caliber rifle and a .50 caliber muzzle loader rifle. Because of his previous felony conviction, Nicol is prohibited from possessing firearms. Nicol’s computers and storage media were forensically examined and revealed that Nicol possessed over 400 images of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
This investigation was part of Operation Predator, a nationwide HSI initiative to protect children from sexual predators, including those who travel overseas for sex with minors, Internet child pornographers, criminal alien sex offenders and child sex traffickers. HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-DHS-2ICE or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, the Maryland State Police, Cumberland Police Department and the Allegany County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.
Penn Hills Man Sentenced to Prison for Illegally Possessing PistolRead the Press Release
PITTSBURGH - A Pittsburgh-area resident has been sentenced in federal court to 21 months imprisonment followed by three years supervised release on his conviction of violating federal firearms laws, United States Attorney David J. Hickton announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on Norman Warren, 24.
According to information presented to the court, on or about Sept. 4, 2012, Warren, being a convicted felon as a result of a prior firearms conviction, illegally possessed a Hi-Point, .380 caliber pistol. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year to possess a firearm.
Assistant United States Attorney Charles A. Eberle prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Pittsburgh Bureau of Police and the Bureau of Alcohol, Tobacco, Firearms, & Explosives for the investigation leading to the successful prosecution of Warren. This case was prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
Pembroke Man Charged with Tax CrimesRead the Press Release
BOSTON - A Pembroke man has been charged with tax evasion and related offenses including sending documents to the Secretary of the Treasury demanding payment of $100 billion.
Theordore Hammond, Jr., 59, was indicted with two counts of tax evasion, seven counts of filing false tax returns, two counts of making false claims, and endeavoring to impede the IRS. The indictment was unsealed yesterday after Hammond was arrested.
The indictment alleges that Hammond was a self-employed carpenter for many years and, between 1998 and 2008, earned income of about $1.1 million. During that same period, Hammond failed to timely file federal income tax returns and, when he did file, reported zero income on most of the returns. Hammond also filed two returns for tax year 2008, falsely claiming he was owed refunds totaling more than $1.6 million. The indictment also alleges that, as the IRS attempted to collect the income taxes Hammond owed, Hammond took numerous steps to frustrate those collection efforts, including threatening to file improper liens against the Revenue Officer, refusing to provide records to the IRS, instructing an employer not to use Hammond’s Social Security Number on an IRS payment form, and sending documents to the then-Secretary of the Treasury demanding payment of $100 billion.
If convicted of the tax evasion or false claim counts, Hammond could serve a maximum penalty of five years in prison, three years of supervised release, and a $250,000 fine or twice the gross gain or loss, whichever is greater. If he is convicted of filing false tax returns or endeavoring to impede the IRS, he could a maximum penalty of three years in prison, one year of supervised release, and a $250,000 fine or twice the gross gain or loss, whichever is greater.
United States Attorney Carmen M. Ortiz and John G. Collins, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Christine Wichers of Ortiz’s Civil Division and Sandra S. Bower of the Economic Crimes Unit.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.
Paul Joseph Richter Found Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that on September 23, 2013, in Missoula, after a federal district court trial before U.S. District Judge Donald W. Molloy, PAUL JOSEPH RICHTER, a 50-year-old resident of Florence, was found guilty of being a felon-in-possession of a firearm. Sentencing is set for January 8, 2014. He is currently detained.
Assistant U.S. Attorney Paulette L. Stewart prosecuted the case for the United States.
RICHTER faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was a cooperative effort between the Montana Probation and Parole, the Missoula County Sheriff's Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Nixa Contractor Pleads Guilty to Stealing $73,000 from Elderly Tornado VictimsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Nixa, Mo., contractor who was hired to repair tornado damage at the Joplin residence of an elderly couple pleaded guilty in federal court today to a fraud scheme in which he stole more than $73,000.
Terry Alton Parker, 58, of Nixa, pleaded guilty before U.S. Magistrate Judge David P. Rush to bank fraud, wire fraud and money laundering.
Parker operated Alliance Contracting of Nixa, LLC, and was hired by a Joplin, Mo., resident to repair his house following the May 22, 2011, tornado. The victim, identified as “H.B.” in the federal indictment, was 84 years old at the time; he was caring for his 88-year-old wife, who required home care and nursing assistance.
After being hired, Parker was at H.B.’s home on a regular basis from June 2011 through February 2012. Parker befriended H.B. and soon began using his downstairs office area as his own office.
In November 2011, without H.B.’s knowledge or permission, Parker took a check from H.B.’s checkbook and wrote a check to himself for $38,640. Parker forged H.B.’s signature and deposited the check into his own bank account.
Parker persuaded H.B., who did not own a computer, to get Internet access at his home so Parker could order supplies online and conduct other business via the Internet. H.B. agreed to pay for the service. Parker set up an online banking account for H.B.’s checking account, without H.B.’s knowledge or permission, and directed all bank statements and other notifications from the bank to be delivered to an e-mail address that Parker set up in H.B.’s name (also without his knowledge). Parker established a PayPal account, without H.B.’s knowledge or permission, which was linked to H.B.’s checking account.
Parker initiated five wire transfers totaling $34,420 from H.B.’s checking account into the PayPal account from Dec. 31, 2011, to Feb. 22, 2012. Most of those funds ($32,545) were then transferred from H.B.’s PayPal account to Parker’s own PayPal account.
Under federal statutes, Parker is subject to a sentence of up to 70 years in federal prison without parole, plus a fine up to $1,750,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the FBI and the Joplin, Mo., Police Department.Nine Automobile Parts Manufacturers and Two Executives Agree to Plead Guilty to Fixing Prices on Automobile Parts Sold to U.S. Car Manufacturers and Installed in U.S. CarsRead the Press Release
Nine Japan-based companies and two executives have agreed to plead guilty and to pay a total of more than $740 million in criminal fines for their roles in separate conspiracies to fix the prices of more than 30 different products sold to U.S. car manufacturers and installed in cars sold in the United States and elsewhere, the Department of Justice announced today. The department said that price-fixed automobile parts were sold to Chrysler, Ford and General Motors, as well as to the U.S. subsidiaries of Honda, Mazda, Mitsubishi, Nissan, Toyota and Fuji Heavy Industries–more commonly known by its brand name, Subaru.
“These international price-fixing conspiracies affected more than $5 billion in automobile parts sold to U.S. car manufacturers, and more than 25 million cars purchased by American consumers were affected by the illegal conduct,” said Attorney General Eric Holder. “The Department of Justice will continue to crack down on cartel behavior that causes American consumers and businesses to pay higher prices for the products and services they rely upon in their everyday lives.”
“Some of the price-fixing conspiracies lasted for a decade or longer, and many car models were fitted with multiple parts that were fixed by the auto parts suppliers,” said Scott D. Hammond, Deputy Assistant Attorney General of the Antitrust Division’s criminal enforcement program. “The Antitrust Division has worked hand in hand with its international competition colleagues who have provided invaluable assistance to the Justice Department in breaking up these worldwide price-fixing cartels.”
“Today’s charges should send a message to companies who believe they don’t need to follow the rules,” said Ronald Hosko, Assistant Director of the FBI’s Criminal Division. “If you violate the laws of this country, the FBI will investigate and put a stop to the threat you pose to our commercial system. The integrity of our markets is a part of the foundation of a free society.”
Including those announced today, 20 companies and 21 executives have been charged in the Antitrust Division’s ongoing investigation into price fixing and bid rigging in the auto parts industry. All 20 companies have either pleaded guilty or have agreed to plead guilty and have agreed to pay more than $1.6 billion in criminal fines. Seventeen of the 21 executives have been sentenced to serve time in U.S. prisons or have entered into plea agreements calling for significant prison sentences.
Each of the companies and executives charged today has agreed to cooperate with the department’s ongoing antitrust investigation. The plea agreements are subject to court approval. The companies’ and executives’ agreed-upon fines and sentences are: • Hitachi Automotive Systems Ltd. to pay a $195 million criminal fine; • Jtekt Corporation to pay a $103.27 million criminal fine; • Mitsuba Corporation to pay a $135 million criminal fine; • Mitsubishi Electric Corporation (MELCO) to pay a $190 million criminal fine; • Mitsubishi Heavy Industries Ltd. to pay a $14.5 million criminal fine; • NSK Ltd. to pay a $68.2 million criminal fine; • T.RAD Co. Ltd. to pay a $13.75 million criminal fine; • Valeo Japan Co. Ltd. to pay a $13.6 million criminal fine; • Yamashita Rubber Co. Ltd. to pay a $11 million criminal fine; • Tetsuya Kunida, a Japanese citizen and former executive of a U.S. subsidiary of a Japan-based automotive anti-vibration rubber products supplier to serve 12 months and one day in a U.S. prison, and to pay a $20,000 criminal fine; and
• Gary Walker, a U.S. citizen and former executive of a U.S. subsidiary of a Japan-based automotive products supplier to serve 14 months in a U.S. prison, and to pay a $20,000 criminal fine.
MELCO and Hitachi conspired with each other and other co-conspirator firms not charged today on sales of certain auto parts, including starter motors, alternators, and ignition coils, the department said. Mitsuba and Mitsubishi Electric conspired together and with other co-conspirators not charged today on certain sales of starter motors. Each of the other companies charged today colluded with other unnamed co-conspirators.
Generally, the companies, executives and co-conspirators engaged in the various price-fixing schemes by attending meetings and communicating by telephone in the United States and Japan to reach collusive agreements to rig bids, set prices and allocate the supply of auto parts sold to the car manufacturers. They took measures to keep their conduct secret by using code names and meeting in remote locations. Those charged also had further communications to monitor and enforce the collusive agreements.
The multiple conspiracies also harmed U.S. automobile plants in 14 states: Alabama; California; Georgia; Illinois; Indiana; Kansas; Kentucky; Michigan; Mississippi; Missouri; Ohio; Tennessee; Texas and Wisconsin, the department said.
The department has coordinated its investigation with the Japanese Fair Trade Commission, the European Commission, Canadian Competition Bureau, Korean Fair Trade Commission, Mexican Federal Economic Competition Commission and Australian Competition and Consumer Commission.
The following charges were filed today in U.S. District Court for the Eastern District of Michigan in Detroit: Hitachi Automotive Systems Ltd.
According to a one-count felony charge, Hitachi and co-conspirators engaged in a conspiracy, by agreeing during meetings and conversations, to rig bids for, and to fix, stabilize and maintain the prices of auto parts it sold to Ford, General Motors, Honda, Nissan and Toyota, in the United States and elsewhere. The affected auto parts include starter motors, alternators, air flow meters, valve timing control devices, fuel injection systems, electronic throttle bodies, ignition coils, inverters and motor generators. According to the charge, Hitachi and its co-conspirators carried out the conspiracy from at least as early as January 2000 until at least February 2010.
Hitachi manufactures and sells auto parts to automobile manufacturers throughout the world. The affected auto parts perform an array of functions in automobile engines, from regulating air and fuel flow to starting the engine to controlling the timing of engine valves.
Mitsuba Corporation
According to a two-count felony charge, Mitsuba and co-conspirators engaged in a conspiracy, by agreeing during meetings and conversations, to rig bids for, and to fix, stabilize and maintain the prices of windshield washer systems and components, windshield wiper systems and components, starter motors, power window motors, and fan motors it sold to Chrysler, Honda, Subaru, Nissan and Toyota in the United States and elsewhere. According to the charge, Mitsuba and its co-conspirators carried out the conspiracy from January 2000 until February 2010. Mitsuba also agreed to plead guilty to one count of obstruction of justice, because of the company’s efforts to destroy evidence ordered by a high-level U.S.-based executive after learning of the U.S. investigation of collusion in the auto parts industry.
Mitsuba manufactures and sells numerous automotive parts to automobile manufacturers throughout the world. The affected auto parts perform an array of functions in automobiles. Windshield washer and wiper systems include a number of components and are designed to clear water or snow from vehicle windows. Starter motors are small electric motors used in starting internal combustion engines. Power window motors are small electric motors used to raise and lower vehicle windows. Fan motors are small electric motors used to turn radiator cooling fans.
Mitsubishi Electric Corporation (MELCO)
According to a one-count felony charge, MELCO and co-conspirators engaged in a conspiracy, by agreeing during meetings and conversations, to rig bids for, and to fix, stabilize and maintain the prices of automotive parts, including starter motors, alternators and ignition coils, it sold to Chrysler, Ford, General Motors, Honda, Fuji Heavy Industries Ltd. (Subaru), Nissan, and certain of their subsidiaries in the United States and elsewhere. According to the charge, MELCO and its co-conspirators carried out the conspiracy from at least as early as January 2000 until at least February 2010.
MELCO manufactures and sells automotive parts, including starter motors, alternators, and ignition coils. Starter motors are small electric motors used in starting internal combustion engines. Alternators generate an electric current while the engine is in operation. Ignition coils are part of the fuel ignition system and release electric energy suddenly to ignite a fuel mixture.
Mitsubishi Heavy Industries Ltd.
According to a one-count felony charge, Mitsubishi Heavy Industries Ltd. (MHI) and co-conspirators engaged in a conspiracy, by agreeing during meetings and conversations, to rig bids for, and to fix, stabilize and maintain the prices of compressors and condensers it sold to General Motors and Mitsubishi Motors North America in the United States and elsewhere. According to the charge, MHI and its co-conspirators carried out the conspiracy from at least as early as January 2001 until at least February 2010.
MHI manufactures and sells compressors and condensers. A compressor produces and circulates highly pressurized refrigerant gas throughout the car air conditioning system. A condenser cools the engine by condensing the refrigerant gas into liquid and releasing heat.
T.RAD Co. Ltd.
According to a one-count felony charge, T.RAD Co. Ltd. and co-conspirators engaged in a conspiracy, by agreeing during meetings and conversations, to rig bids for, and to fix, stabilize and maintain the prices of radiators it sold to Toyota and Honda and the prices of automatic transmission fluid warmers (ATF warmers) sold to Toyota in the United States and elsewhere. According to the charge, T.RAD and its co-conspirators carried out the conspiracy from November 2002 until February 2010.
T.RAD manufactures and sells heat exchangers, including radiators and ATF Warmers. Radiators are devices located in the engine compartment of a vehicle that cool the engine. ATF warmers are devices located in the engine compartment of a vehicle that warm the automatic transmission fluid.
Valeo Japan Co. Ltd.
According to a one-count felony charge, Valeo Japan Co. Ltd. and co-conspirators engaged in a conspiracy, by agreeing during meetings and conversations, to allocate the supply of, rig bids for, and to fix, stabilize and maintain the prices of air conditioning systems it sold to Nissan North America Inc., Suzuki Motor Corporation and Subaru, in the United States and elsewhere. According to the charge, Valeo and its co-conspirators carried out the conspiracy from April 2006 until February 2010.
Valeo was engaged in the manufacture and sale of automotive air conditioning systems, which are systems that cool the interior environment of a vehicle. Air conditioning systems, whether sold together or separately, are defined as automotive compressors, condensers, HVAC units (typically consisting of a blower motor, actuators, flaps, evaporator, heater core, and filter embedded in a plastic housing), control panels, sensors and associated hoses and pipes.
Gary Walker
According to a one-count felony charge, Gary Walker, a U.S. citizen and former executive of a U.S. subsidiary of a Japan-based automotive products supplier, engaged in a conspiracy to rig bids for, and to fix, stabilize and maintain the prices of seatbelts sold to Honda, Mazda, Nissan, Subaru and Toyota in the United States and elsewhere. According to the charge, Walker and his co-conspirators carried out the conspiracy from at least Jan. 1, 2003 until at least February 2010.
The following charges were filed today in U.S. District Court for the Southern District of Ohio in Cincinnati: Jtekt Corporation
According to a two-count felony charge, Jtekt and co-conspirators engaged in a conspiracy, by agreeing during meetings and conversations, to allocate markets, to rig bids for, and to fix, stabilize and maintain the prices of bearings it sold to Toyota and electric powered steering assemblies it sold to Nissan, in the United States and elsewhere. According to the charge, Jtekt and its co-conspirators carried out the bearings conspiracy from 2000 until July 2011 and the steering assemblies conspiracy from 2005 until October 2011.
Jtekt manufactures and sells bearings and steering assemblies. Bearings are widely used in industry in numerous applications for many products. Bearings reduce friction and help components to roll smoothly past on another. Electric powered steering assemblies provide electric power to help the driver more easily steer the automobile. Electric powered steering assemblies link the steering wheel to the tires, and include the column, intermediate shaft and electronic control unit, among other parts, but do not include the steering wheel or tires.
NSK Ltd.
According to a one-count felony charge, NSK and co-conspirators engaged in a conspiracy, by agreeing during meetings and conversations, to allocate markets, to rig bids for, and to fix, stabilize and maintain the prices of bearings it sold to Toyota, in the United States and elsewhere. NSK manufactures and sells bearings. According to the charge, NSK and its co-conspirators carried out the conspiracy from 2000 until July 2011.
The following charges were filed today in U.S. District Court for the Northern District of Ohio in Toledo: Yamashita Rubber Co. Ltd.
According to a one-count felony charge, Yamashita Rubber Co. Ltd. and co-conspirators engaged in a conspiracy, by agreeing during meetings and conversations, to rig bids for, and to fix, raise, and maintain the prices of automotive anti-vibration rubber products it sold in the United States and elsewhere to Honda Motor Co. Ltd., American Honda Motor Company Inc. and Suzuki Motor Corporation. According to the charge, Yamashita Rubber Co. and its co-conspirators carried out the conspiracy from at least April 2003 until May 2012.
Automotive anti-vibration rubber products are comprised primarily of rubber and metal, and are installed in automobiles to reduce engine and road vibration.
Tetsuya Kunida
According to a one-count felony charge, Tetsuya Kunida, a former executive of a U.S. subsidiary of a Japan-based automotive anti-vibration rubber products supplier, engaged in a conspiracy, by agreeing during meetings and conversations, to rig bids for, and to fix, raise, and maintain the prices of automotive anti-vibration rubber products. The conspiracy affected sales of automotive anti-vibration rubber products to Toyota Motor Corporation and other automakers in the United States and elsewhere. ccording to the charge, Kunida and his co-conspirators carried out the conspiracy from at least November 2001 until May 2012.
DENSO Corporation, Nippon Seiki Ltd., Tokai Rika Co. Ltd., Furukawa Electric Co. Ltd, Yazaki Corp., G.S. Electech Inc., Fujikura Ltd., Autoliv Inc., TRW Deutschland Holding GmbH, Diamond Electric Mfg. Co. Ltd., and Panasonic Corporation have already pleaded guilty. Fifteen individuals have been sentenced to pay criminal fines and to serve prison sentences ranging from a year and a day to two years each.
The companies and individuals are charged with price fixing in violation of the Sherman Act, which carries maximum penalties of a $100 million criminal fine for corporations and a $1 million criminal fine and 10 years in prison for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine. Additionally, Mitsuba was also charged with obstruction of justice, which carries a maximum penalty of a $500,000 criminal fine.
The charges are the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charges were brought by the Antitrust Division’s Chicago Office, New York Office, the National Criminal Enforcement Section, and the FBI’s Cincinnati, Cleveland, Detroit, New York and Washington Field Offices, with the assistance of the FBI headquarters’ International Corruption Unit. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html. To report a crime to the FBI, go to www.fbi.gov and click on the “Report a Crime” tab.Related Materials:
Gary Walker Information
Hitachi Information
JTekt Information
Melco Information
MHI Information
Mitsuba Information
Yamashita Rubber Information
Valeo Japan Information
Tetsuya Kunida Information
T.RAD Information
NSK InformationNine Alleged Members of Hobos Street Gang Indicted in RICO Conspiracy for Murders and Other Violent Drug-Related CrimesRead the Press Release
CHICAGO — Nine defendants who allegedly directed or participated in a violent, drugtrafficking street gang known as the Hobos were charged today in a federal racketeering conspiracy (RICO) indictment with engaging in murders, attempted murders, robberies, and narcotics distribution. The five-count indictment returned by a federal grand jury alleges five murders, solicitation of a sixth murder, four attempted murders, three robberies, and the operation of “drug spots” and “drug lines” on the city’s south side among a pattern of criminal activity between 2004 and 2009.
Four of the defendants are charged with personally shooting to death five victims between 2006 and 2009, including one victim who was allegedly killed because he was cooperating with law enforcement.
The indictment charges that the “Hobos Enterprise” allegedly used violence to enrich its members and their associates; to promote and enhance the criminal enterprise; to preserve and protect its power, territory, operations, and proceeds; to keep victims and witnesses in fear; and to prevent law enforcement from detecting its crimes.
“The indictment portrays a gang with virtually no restraint on its ruthless use of violence to further its goals,” said Gary S. Shapiro, United States Attorney for the Northern District of Illinois. “The gang’s alleged murders, robberies and drug dealing invited our employing the federal racketeering laws to prosecute the full scope of their crimes, some extending beyond the normal statute of limitations; and, if convicted, to bring the most severe federal sentences to bear for the terror that plagued the blocks and street corners they allegedly controlled.” The investigation is continuing, Mr. Shapiro added.
“This RICO indictment is the result of a long-term commitment we share with our law enforcement partners to address the dangerous threats facing our communities today. This investigation targeted an exceptionally violent group that used murder, threats, and intimidation to further their agenda. The charges demonstrate our focus and determination to strike at gangrelated criminal enterprises and to eliminate the terror these groups inflict on our neighborhoods,” said Robert J. Shields, Jr., Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
“Through the work of Chicago Police officers and our gang investigators, in close partnership with the FBI, IRS, and the U.S. Attorney’s Office, we are able to announce federal RICO charges against nine dangerous members of the Hobos gang,” said Chicago Police Superintendent Garry F. McCarthy. “Today’s announcement should serve as a warning ― we do not and we will not accept violence in our communities or in our neighborhoods. And we will do everything in our power to hold dangerous criminals accountable for the crimes they commit,” he added.
“Today’s indictment sends a loud message that we are committed to our law enforcement partners and the communities in which we live,” said James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago. “Gang activity and criminal enterprises thrive on financial gain and perpetuate criminal violence on our streets. IRS Criminal Investigation brings its financial expertise to an investigation and we are privileged to be working with the Chicago Police Department and other federal law enforcement partners to keep our communities safe.”
The Illinois Department of Corrections also participated in the investigation. The Chicago Police Department initiated the investigation, which the federal agencies joined later under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF) and the Chicago High Intensity Drug Task Force (HIDTA). The case is part of a sustained, coordinated effort by federal law enforcement agencies, working together with the Chicago Police and other state and local departments, to disrupt Chicago’s sophisticated, often violent, drug-trafficking organizations.
Law enforcement has identified the Hobos as a tight-knit, violent crew that originated in the former Robert Taylor Homes and banded together from factions of the much larger Gangster Disciples and Black Disciples street gangs. They allegedly targeted drug dealers and high-value targets to rob and relied upon each other to protect their drug territory, retaliate against rival gangs, and prevent witnesses from cooperating with law enforcement.
All nine defendants were charged with racketeering conspiracy and are currently in state or federal custody. They are: GREGORY CHESTER, ALSO KNOWN AS “Bowlegs,” “Big Homie,” “Pops,” and “Desjuar Anderson,” 36, of Richton Park, identified as the leader of the Hobos; ARNOLD COUNCIL, aka “Armstrong” and “Hobo,” 37; PARIS POE, aka “Poleroski,” 33; GABRIEL BUSH, aka “Louie,” 34; STANLEY VAUGHN, aka “Smiley,” 36; WILLIAM FORD, aka “Joe Buck,” 33; GARY CHESTER, aka “Chee,” 35, (Gregory Chester’s cousin); BYRON BROWN, aka “B-Rupt,” 28; and RODNEY JONES, aka “Milk,” 26, all of Chicago. Byron Brown’s deceased twin brother, Brandon Brown, is named as an unindicted coconspirator.
Poe, Council, Bush, and Byron Brown were each charged with one count of murder in aid of racketeering, and Council was charged with brandishing a firearm during a clothing store robbery. The indictment also seeks forfeiture of an unspecified amount of illegal proceeds.
All nine defendants will be arraigned on later dates in U.S. District Court.
According to the indictment, the murders committed by members and associates of the Hobos Enterprise included:
- Wilbert Moore, who was killed because he was cooperating with law enforcement, by Council and Poe on Jan. 19, 2006;
- Terrance Anderson by Bush and others on Sept. 1, 2007;
- Eddie Moss by Byron Brown and others on Dec. 14, 2007;
- Larry Tucker by Bush, the Brown brothers, and others on Jan. 20, 2008; and
- Kenneth Mosby by Byron Brown and others on May 12, 2008.
Gregory Chester allegedly solicited the murder of Antonio Bluitt, which occurred on Sept. 2, 2007.
The attempted murders included: Victim 1 by Council and Poe on June 11, 2006; Victims 2 and 3 by Bush and Ford on June 5, 2007; Victim 4 by Bush and Vaughn on June 27, 2007; and Victim 5 by Jones on Nov. 5, 2007.
The robberies included: Victim 1 by Council and Poe on June 11, 2006; the Collections Clothing Store by Council and others on Nov. 8, 2008; and Victims 6 and 7 by Poe, Gary Chester, and others on March 25, 2009.
The RICO conspiracy count further alleges that the Hobos and their associates operated drug spots and drug lines where they distributed user quantities of narcotics, at times using nicknames to identify their products. These locations included:
- the building and area located at 4429 South Federal, within the former Robert Taylor Homes, which was controlled and managed by Gregory Chester and Council and drugs were sold under the nicknames “Green Monster” and “Pink Panther;”
- the area around 47th Street and Vincennes Avenue, which was controlled by Bush and Vaughn and operated by Ford;
- the area around 51st Street and Calumet Avenue, which was managed by the Brown brothers and Jones; and
- the area around 51st Street and Martin Luther King Drive, which was controlled by Bush.
As part of the racketeering conspiracy, the defendants allegedly:
- used gang-related terminology, symbols, and gestures, including the slogan “Hobo or Nothing,” and a hand sign known as the “Hobo Horns;”
- shared the proceeds of robberies and the trafficking of narcotics;
- obtained, used, brandished, and discharged firearms in connection with the enterprise’s illegal activities;
- managed the procurement, transfer, use, concealment, and disposal of firearms and dangerous weapons within the enterprise to protect their interests and further their goals;
- monitored law enforcement radio frequencies and acquired radio equipment to detect and avoid law enforcement inquiry into their illegal activities;
- had nominees obtain rental vehicles to conceal their use while committing illegal activities;
- identified victims from whom they could obtain distribution quantities of controlled substances or large sums of money by robbing them;
- conducted surveillance of intended murder and robbery victims, a practice referred to as “lamping” and “doing homework;” and
- restrained and murdered victims and witnesses to prevent their escape, and to prevent identification of themselves and their associates.
The RICO conspiracy count carries a maximum sentence of 20 years in prison, or life for the four defendants charged with committing murders. Those four defendants ― Poe, Council, Bush, and Byron Brown ― also face a mandatory life sentence, or death, if convicted of murder in aid of racketeering. Only the Attorney General of the United States may decide later whether to seek the death penalty. The charge of brandishing a firearm against Council carries a mandatory consecutive sentence of seven years and a maximum of life in prison. If convicted, the Court must determine a reasonable sentence to impose under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant U.S. Attorneys Patrick Otlewski, Erika Csicsila, and Derek Owens.
An indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
New York Man Convicted of Sex Trafficking FemalesRead the Press Release
PHILADELPHIA - Justin Williams, a/k/a "New York Ice", a/k/a "Pimp Juice", 39, of
New York, NY, was convicted today of sex trafficking young women. Between November 2011 and January 2012, Williams recruited young females to work as prostitutes in his business who were advertised on the Internet for purchase, using locations such as "Backpage," for purposes of prostitution. Williams engaged in acts of physical violence to force the victims to remain in his business. The advertisements featured pictures of the victims, scantily clad, the price, and a phone number to call to arrange a meeting with a female. Williams forced the victims to engage in sex acts with clients.Williams exploited at least three females, ranging in age from 18 to 27. He moved them between Philadelphia, New York, Atlantic City, NJ, and Washington, DC, for purposes of prostitution. He was convicted of two counts of sex trafficking by force and one count of witness tampering for writing a letter to victim #2 to retract her statement prior to trial.
Williams faces a 15-year mandatory minimum prison sentence on the sex trafficking counts with a maximum sentence of life. U.S. District Court Judge J. Curtis Joyner scheduled a sentencing hearing for January 23, 2014.
This case was investigated by the Federal Bureau of Investigation, Arlington County Police Department (Arlington, VA), with assistance from the Philadelphia First Judicial Court Warrant Unit, and the New York City Police Department. It is being prosecuted by Assistant United States Attorney Michelle Morgan.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525New Haven Man Sentenced to 63 Months in Federal Prison for Distributing Heroin and Crack CocaineRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JESUS MORALES, also known as “Cano,” 41, of New Haven, was sentenced today by Senior U.S. District Judge Ellen Bree Burns in New Haven to 63 months of imprisonment, followed by three years of supervised release, for distributing heroin and crack cocaine.
MORALES is one of more than 100 individuals charged as a result of “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants and seizures of narcotics and firearms. The investigation revealed that MORALES conspired with others to purchase and redistribute heroin and cocaine base (“crack cocaine”).
MORALES has been detained since his arrest on May 21, 2012. On April 4, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin and cocaine base (“crack”).
MORALES’s criminal history includes five felony convictions for drug offenses and one felony conviction for robbery in the second degree.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant United States Attorneys S. Dave Vatti and Marc Silverman.
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(203) 821-3722 [email protected]New Bern Man Sentenced for Bankruptcy Fraud CrimesRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Terrence W. Boyle sentenced TODD ALLEN FULCHER , 49, to six months imprisonment, followed by three years of supervised release, and an order of restitution.
FULCHER was named in an Indictment filed on October 3, 2012, charging him with one count of Bankruptcy fraud and four counts of Concealment of assets, false oaths and claims, bribery, and one count of Destruction, alteration or falsification of records in relation to a bankruptcy case in the Eastern District of North Carolina. On April 10, 2013, FULCHER pled guilty to one count of Bankruptcy fraud in violation of Title 18, United States Code, Section 157(3) and one count of Destruction, alteration or falsification of records in violation of Title 18, United States Code, Section 1519.
According to the investigation, beginning on or about January 9, 2010, and continuing through November 2011, FULCHER, devised a scheme to defraud by means of materially false and fraudulent pretenses and representations as part of a bankruptcy proceeding. He knowingly made false statements on his bankruptcy Schedules and Statement of Financial Affairs; FULCHER also knowingly concealed bank account information; income information; real estate located in Trenton, North Carolina; three shotguns and two riles; and wood working hand tools with regard to his bankruptcy after filing for Chapter 13 relief under Title 11. Additionally, FULCHER fraudulently concealed personal property belonging to the estate, including a boat, firearms, and a motorcycle. Additionally, he knowingly concealed vehicles belonging to Fulcher Tire Sales & Service, Inc. which belonged to the corporation’s bankruptcy estate.
The United States Bankruptcy Court for the Eastern District of North Carolina previously had entered orders detaining FULCHER for contempt for his failure to attend creditors’ meetings and to abide by the orders of the court.Investigation of this case was conducted by the Federal Bureau of Investigation. Assistant United States Attorney S. Katherine Burnette prosecuted the case for the government.
More Than 50 People Indicted in Massive Fraud RingRead the Press Release
A massive case of organized tax and bank fraud culminated today with the unsealing of four federal grand jury indictments accusing 55 people of participating in one or more illicit schemes, including the theft of more than 2,000 identities that were used to claim more than $20 million in bogus IRS tax refunds. As a result the IRS paid out more than $7 million – even issuing payments in the names of dead people.
The charges are the result of a two year-long investigation by federal and local authorities in San Diego and Los Angeles. Twenty-two defendants were arrested this morning during sweeps in Los Angeles, San Diego, Las Vegas and Maryland. Hundreds of federal, state, and local law enforcement officers participated in the takedown. Thirty-three defendants remain at large, including 21 who are believed to be out of the country. During searches at 12 locations, authorities seized $13,000 in cash and four handguns, including three that were unregistered.
“This case is staggering in terms of the number of victims, its level of sophistication, its audacious methods and the callous disregard for victims,” said U.S. Attorney Laura Duffy. “These arrests are the first strike back on behalf of taxpayers and more than 2,000 victims who now have to reclaim their good names – a frustrating task that can take years. We will continue to make these cases a priority.”
“Individuals who commit refund fraud and identity theft of this magnitude and with this degree of dishonesty and deceit, deserve to be punished to the fullest extent of the law,” said Richard Weber, Chief, IRS Criminal Investigation. “IRS Criminal Investigation, along with our law enforcement partners and the United States Attorney's Office, remain vigilant in identifying, investigating and prosecuting individuals involved in these schemes.”
FBI Special Agent in Charge, Daphne Hearn, commented, “This investigation involved multiple complex fraudulent schemes resulting in significant losses to financial institutions and American taxpayers. Today's arrests...send a clear message to those involved in stealing money from American taxpayers. The FBI and our partners will aggressively pursue those involved in stealing precious taxpayer money through fraudulent schemes.”
Tax refund fraud involving the use of stolen identities has emerged as such a fast-growing crime category that it has earned an acronym – SIRF – for Stolen Identity Refund Fraud. The Department of Justice issued a new directive last year to coordinate, expedite and streamline the prosecutorial efforts of the Tax Division and U.S. Attorneys offices nationwide.
The various schemes are described in four separate indictments:
- The largest indictment – involving the identity theft and bogus tax refunds - charges 29 people and involved the alleged filing of about 2,000 fraudulent tax returns. The coconspirators filed two types of fraudulent returns – those that claimed refunds from fabricated gambling winnings and losses, and those based on made-up wages and withholdings. The returns sought $17 million in undeserved refunds.
This scheme involved the participation of scores of San Diego-based foreign nationals from former Soviet bloc countries - including Russia, Kazakhstan, and Turkmenistan - who were visiting San Diego using J-1 and F-1 visas. The visas allow foreigners to come to the United States for a short period of time to study, work, and travel.
However, instead of studying or working, the almost two dozen foreign nationals charged today allegedly worked primarily as foot soldiers for criminal organizations operating in Los Angeles and elsewhere. Leaders of the identity theft ring, many of whom are Armenian nationals or Armenian-American, exploited the popular student visa program in part because the visa holders would not be here long. In fact, many have since returned to their countries.
The alleged leaders of the stolen identity fraud schemes were Arthur Grigorian, Ernest Soloian and Hovhannes Harutyunyan. One of the defendants, Yvonne Mihailescu, used her position as an of Wells Fargo Bank to open bank accounts which were used to receive the fraudulent tax refunds launder the proceeds, according to the indictment.
While here, they rented apartments in San Diego and elsewhere, opened post office boxes and bank accounts at the San Diego branches of Bank of America and Wells Fargo, and collected fraudulent tax refunds through the receipt of refund checks and direct deposits from the U.S. Treasury. Some of the refund checks were mailed to apartments on University Avenue and El Cajon Boulevard in San Diego.
The indictment indicates that the coconspirators employed sophisticated methods to cover their tracks. For instance, they took steps to disguise their Internet Protocol (IP address) when filing tax returns electronically, making it difficult for law enforcement to determine the location. In addition, they used code language when communicating and referred to each other only by nicknames, such as “Anaconda” and “Blondie.” They used prepaid cell phones which they changed on a regular basis.
- A second indictment charges three people who are accused of filing more than 400 false returns using stolen identities which claimed more than $3 million in fraudulent refunds. Armen Eritsian and Hovhannes Harutyunyan are the alleged leaders of the scheme.
- A third indictment charges eight people, led by Hovakim Sogomonian and Harout Gevorgyan, and describes an elaborate ruse in which defendants obtained bank account and other personal information about wealthy Wells Fargo customers and then sent imposters to branches to withdraw large sums of money. The imposters altered their appearances with haircuts and new clothes and prepared by role-playing. In all they attempted to withdraw more than $3 million, and succeeded in obtaining $551,842, the indictment said. The imposters instructed tellers to wire large sums of money to the account of a gold dealer, and then they picked up gold coins from the dealer and delivered them to the other defendants.
- Finally, a fourth indictment charges 18 defendants, led by Karen Galstian and Vahag Stepanyan, with a scheme to defraud Bank of America of more than $600,000 by writing bad checks. This scheme also utilized stolen identities to further the fraud.
The FBI and IRS recommend that individuals take the following steps to minimize the chance of becoming a victim of identity theft:
Don’t carry your Social Security card or any document with your SSN on it.
Don’t give a business your SSN just because they ask. Give it only when required.
Protect your financial information.
Check your credit report every 12 months.
Secure personal information in your home.
Protect your personal computers by using firewalls, anti-spam/virus software, update security patches, and change passwords for Internet accounts.
Don’t give personal information over the phone, through the mail or on the Internet unless you have initiated the contact or you are sure you know who you are dealing with.All of the defendants arrested in today’s operation are expected to make their initial appearances in federal court either today or tomorrow in the district where they were arrested. Following the defendants’ initial appearances, the next scheduled court date is Oct. 3, 2013, at 2 p.m., before United States Magistrate Judge Mitchell D. Dembin.
*U.S. Attorney Duffy, the IRS’ Anthony J. Orlando and the FBI’s Darrell Foxworth will be available for interviews this afternoon. If you are interested, please contact Kelly Thornton at 619-546-9726.
DEFENDANTS Case Number: 13cr3479 *ARTHUR GRIGORIAN
*ERNEST SOLOIAN
*HAROUT GEVORGYAN
HOVHANNES HARUTYUNYAN
SUKHROB MUSAYEV
STANISLAV MELNIKOV
RENAT TALANOV
*YVONNE MIHAILESCU
MADLEN OSPANOVA
MERUYERT AKHMETOVA
INDIRA AKHMETOVA
*VYACHESLAV LAZAREV
YEVGENIY IVANOV
KARINA POLOZOVA
ZHASSULAN SHILIKBAY
SAGIT BATCHAEV
PATIMAT MAGALIYEV
KURBAN MAGALIYEV
ILYAS ABDRAKHAY
YERMEK DOSSYMBEKOV
VYACHESLAV TSOY
KONSTANTIN IVANOV
NURBEK AKHMADIYEV
ALISHER OMAROV
KSENIA CHABANOVA
*YELENA SKLYAROVA
ULAN ZAKIROV
TAIYR ZHURYN
YEVGENIY SOTNIKOV DEFENDANTS Case Number: 13cr3480 *ARMAN ERITSIAN
HOVHANNES HARUTYUNYAN
MARSAL MEDET DEFENDANTS Case Number: 13cr3481*KAREN GALSTIAN
DEFENDANTS Case Number: 13cr3482
*VAHAG STEPANYAN
*GEORGE KARAPETIAN
ARA ADAMYAN
*CHRISTOPHER BUCKELY
*CARLOS FERRUFINO, Jr.
*AKOP GALSTIAN
*FARBOB GOLHASSANI
PAUL T. GONNELLY, Jr.
*TATYANA KARBACHINSKAYA
MARIA KHARITONOVA
ALISA NOVIKOVA
*DAVID MEGUERIAN
*ASHOT MNATSAKAMYAN
SEDRAK MOVSESYAN
ROBERT T. RODRIGUEZ
*CHRISTOPHER RUIZ
*VARDGES VARDANYAN*HOVAKIM SOGOMONIAN
*HAROUT GEVORGYAN
*TIGRAN ERITSYAN
*EMIL STEPANYAN
SAGIT BATCHAEV
*KONSTANTIN YUGAY
*BAGDASAR BAGDASARYAN
*MAE BARBARA WEISSBERGER*In Custody
SUMMARY OF CHARGESThe following crimes are charged in at least one of the four indictments. For charges against each defendant, please see indictments.
Conspiracy – Title 18, U.S.C., Section 371
Maximum penalty: 5 years’ imprisonment and $250,000 fineMail Fraud – Title 18, U.S.C., Section 1341
Maximum penalty: 20 years’ imprisonment and $250,000 fineWire Fraud – Title 18, U.S.C., Section 1343
Maximum penalty: 5 years’ imprisonment and $250,000 fineMoney Laundering – Title 18, U.S.C. § 1956
Maximum penalty: 5 years’ imprisonment and $250,000 fineAggravated Identity Theft – Title 18, U.S.C., Section 1028A
Maximum penalty: 2 years’ imprisonment consecutive to underlying offenseConspiracy to Commit Bank Fraud – Title 18, U.S.C., Section 1349
Maximum penalty: 30 years’ imprisonment and $1,000,000 fineCriminal Forfeiture – Title 18, U.S.C., Section 981(a)(1)(C) and Title 28, U.S.C., Section 2461(c) Maximum penalty: Forfeiture of proceeds
AGENCIESFederal Bureau of Investigation
Internal Revenue Service Criminal Investigation
Los Angeles Police DepartmentAn indictment itself is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
Michael Thomas Bad Old Man Pleads Guilty in U.S. Federal 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 U.S. Magistrate Judge Keith Strong, MICHAEL THOMAS BAD OLD MAN, a 21-year-old resident of Browning and an enrolled member of the Blackfeet Tribe, pled guilty to burglary. Sentencing has been set for January 16, 2014. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Ryan G. Weldon, the government stated it would have proved at trial the following:
On October 18, 2011, BAD OLD MAN and another male individual, identified here as "X.X.," bumped into the female victim in Browning, which is within the exterior boundaries of the Blackfeet Indian Reservation.
BAD OLD MAN and the victim used to date each other. BAD OLD MAN and "X.X." went to a bar, but later decided to go confront the victim and her new boyfriend. After asking around, "X.X." and BAD OLD MAN kicked in the door and entered a home in Browning, which was where the victim was staying with her new boyfriend.
When interviewed by the FBI, BAD OLD MAN stated that he had wanted to fight the victim's new boyfriend when he entered the home. People had come out of various rooms in the house, and BAD OLD MAN admitted that he "tore into everybody that I seen [sic]." BAD OLD MAN stated that homeowner's boyfriend approached BAD OLD MAN. At that point, "X.X." jumped in and started to fight with the homeowner's boyfriend. BAD OLD MAN then went to the back of the residence and started using his fists to punch the victim's new boyfriend.
BAD OLD MAN faces possible penalties of 20 years in prison, a $50,000 fine and 3 years supervised release.
The investigation was conducted by the Federal Bureau of Investigation.
Miami Home Health Company Recruiter Pleads Guilty in $48 Million Health Care Fraud SchemeRead the Press Release
A patient recruiter of a Miami health care company pleaded guilty today for his participation in a $48 million home health Medicare fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office; and Special Agent in Charge Christopher Dennis of the HHS Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Emilio Amador, 46, pleaded guilty before U.S. District Judge Federico A. Moreno to one count of conspiracy to receive health care kickbacks and two counts of receiving health care kickbacks. He faces a maximum penalty of five years in prison for each count when he is sentenced on Dec. 4, 2013.
According to court documents, Amador was a patient recruiter who worked for Caring Nurse Home Health Care Corp. (Caring Nurse), a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries.
According to court documents, from approximately January 2006 through approximately June 2011, Amador would recruit patients for Caring Nurse, and in doing so would solicit and receive kickbacks and bribes from the owners and operators of Caring Nurse in return for allowing Caring Nurse to bill the Medicare program on behalf of the patients Amador had recruited. These Medicare beneficiaries were billed for home health care and therapy services that were medically unnecessary and/or not provided.
According to court documents, Amador also pleaded guilty to his involvement with fraudulent billings for Nation’s Best Care Home Health, Corp. (Nation’s Best) as relevant conduct. Amador was the owner, operator and president of Nation’s Best. The billings for Nation’s Best were approximately $30 million.
In a related case, on Feb. 27, 2013, Rogelio Rodriguez and Raymond Aday, the owners and operators of Caring Nurse and Good Quality Home Health Care, Inc. (Good Quality), another fraudulent home health care agency, were sentenced to 108 and 51 months in prison, respectively. Their sentencings followed their December 2012 guilty pleas to one count each of conspiracy to commit health care fraud charged in an October 2013 indictment. From in or around January 2006 through in or around June 2011, Caring Nurse and Good Quality submitted approximately $48 million in claims for home health services that were not medically necessary and/or not provided. Medicare paid approximately $33 million for these fraudulent claims.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section.
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,500 defendants who collectively have falsely billed the Medicare program for more than $5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.Miami Home Health Company Recruiter Pleads Guilty in $48 Million Health Care Fraud SchemeRead the Press Release
A patient recruiter of a Miami health care company pleaded guilty today for his participation in a $48 million home health Medicare fraud scheme.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office; and Special Agent in Charge Christopher Dennis of the HHS Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Emilio Amador, 46, pleaded guilty before U.S. District Judge Federico A. Moreno to one count of conspiracy to receive health care kickbacks and two counts of receiving health care kickbacks. He faces a maximum penalty of five years in prison for each count when he is sentenced on Dec. 4, 2013.
According to court documents, Amador was a patient recruiter who worked for Caring Nurse Home Health Care Corp. (Caring Nurse), a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries.
According to court documents, from approximately January 2006 through approximately June 2011, Amador would recruit patients for Caring Nurse, and in doing so would solicit and receive kickbacks and bribes from the owners and operators of Caring Nurse in return for allowing Caring Nurse to bill the Medicare program on behalf of the patients Amador had recruited. These Medicare beneficiaries were billed for home health care and therapy services that were medically unnecessary and/or not provided.
According to court documents, Amador also pleaded guilty to his involvement with fraudulent billings for Nation’s Best Care Home Health, Corp. (Nation’s Best) as relevant conduct. Amador was the owner, operator and president of Nation’s Best. The billings for Nation’s Best were approximately $30 million.
In a related case, on Feb. 27, 2013, Rogelio Rodriguez and Raymond Aday, the owners and operators of Caring Nurse and Good Quality Home Health Care, Inc. (Good Quality), another fraudulent home health care agency, were sentenced to 108 and 51 months in prison, respectively. Their sentencings followed their December 2012 guilty pleas to one count each of conspiracy to commit health care fraud charged in an October 2013 indictment. From in or around January 2006 through in or around June 2011, Caring Nurse and Good Quality submitted approximately $48 million in claims for home health services that were not medically necessary and/or not provided. Medicare paid approximately $33 million for these fraudulent claims.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section.
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,500 defendants who collectively have falsely billed the Medicare program for more than $5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican Man Pleads Guilty to Re-entering the United States After Having Been Previously RemovedRead the Press Release
Defendant Sentenced to Time Served
ALBANY, NEW YORK—IGNACIO HERNANDEZ-LOPEZ, age 39, a citizen of Mexico, pled guilty and was sentenced today in United States District Court in Albany before United States District Court Judge Mae A. D’Agostino to one count of re-entry by a previously removed alien, announced United States Attorney Richard S. Hartunian. HERNANDEZ-LOPEZ was sentenced to time served.
HERNANDEZ-LOPEZ, a citizen of Mexico, was involuntarily removed from the United States to Mexico on March 17, 2004. On August 16, 2013, HERNANDEZ-LOPEZ, who did not have permission to re-enter the United States, was encountered by Immigration and Customs Enforcement officers in Whitehall, New York.
This case was investigated by the Department of Homeland Security, Immigration and Customs Enforcement (ICE), Albany, New York.
Medina Man Sentenced to 14 Years in Prison for Child Pornography CrimesRead the Press Release
A Medina man was sentenced to 14 years in prison for crimes related to child pornography, law enforcement officials said today.
Richard J. Miezin, 48, was previously found guilty of receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, as well as making false statements and representations to the Federal Bureau of Investigation during their investigation.
Miezin knowingly distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct from April 27, 2010, through February 25, 2011, according to court documents.
“This sentence should send a message to those who would victimize children,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
“Victims of child pornography are repeatedly harmed when images of their abuse are distributed over the Internet,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office. “Individuals like Richard Miezin, who choose to engage in such despicable behavior, will be brought to justice.”
“Protecting our children from this type of exploitation is one of my highest priorities,” said Medina County Sheriff Tom Miller. “I remain committed to combating those who would seek to victimize the most innocent among us.”
This case is the result of was a joint effort of the Medina County Sheriff’s Office and the Akron Office of the FBI’s Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney Carol M. Skutnik.
Targeting child predators is a priority of this newly established task force with the Medina County Sheriff and FBI. This task force will utilize all available investigative, technical and community resources to protect the children in our communities.
Medical Clinic Owners and Patient Recruiters Charged in Miami for Role in $8 Million Health Care Fraud SchemeRead the Press Release
Several patient recruiters, including two medical clinic owners, have been arrested in connection with a health care fraud scheme involving defunct home health care company Flores Home Health Care Inc. (Flores Home Health).
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office; and Special Agent in Charge Christopher Dennis of the HHS Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
In an indictment returned on Sept. 24, 2013, and unsealed this afternoon, Isabel Medina, 49, and Lerida Labrada, 59, were charged with conspiracy to commit health care fraud, which carries a maximum penalty of 10 years in prison upon conviction. Together with Mayra Flores, 49, and German Martinez, 36, Medina and Labrada also face charges for allegedly conspiring to defraud the United States and to receive health care kickbacks as well as receipt of kickbacks in connection with a federal health care program, which carry a maximum penalty of five years in prison upon conviction.
According to the indictment, the defendants worked as patient recruiters for the owners and operators of Flores Home Health, a Miami home health care agency that purported to provide home health and physical therapy services to Medicare beneficiaries. Medina and Labrada were also the owners and operators of Miami medical clinics which allegedly provided fraudulent prescriptions to the owners and operators of Flores Home Health.
Flores Home Health was allegedly operated for the purpose of billing the Medicare program for, among other services, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.
From approximately October 2009 through approximately June 2012, Flores Home Health was paid approximately $8 million by Medicare for allegedly fraudulent claims for home health services.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by A. Brendan Stewart of the Criminal Division’s Fraud Section.
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,500 defendants who collectively have falsely billed the Medicare program for more than $5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted.
Medical Clinic Owners and Patient Recruiters Charged in Miami for Role in $8 Million Health Care Fraud SchemeRead the Press Release
Several patient recruiters, including two medical clinic owners, have been arrested in connection with a health care fraud scheme involving defunct home health care company Flores Home Health Care Inc. (Flores Home Health).
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office; and Special Agent in Charge Christopher Dennis of the HHS Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
In an indictment returned on Sept. 24, 2013, and unsealed this afternoon, Isabel Medina, 49, and Lerida Labrada, 59, were charged with conspiracy to commit health care fraud, which carries a maximum penalty of 10 years in prison upon conviction. Together with Mayra Flores, 49, and German Martinez, 36, Medina and Labrada also face charges for allegedly conspiring to defraud the United States and to receive health care kickbacks as well as receipt of kickbacks in connection with a federal health care program, which carry a maximum penalty of five years in prison upon conviction.
According to the indictment, the defendants worked as patient recruiters for the owners and operators of Flores Home Health, a Miami home health care agency that purported to provide home health and physical therapy services to Medicare beneficiaries. Medina and Labrada were also the owners and operators of Miami medical clinics which allegedly provided fraudulent prescriptions to the owners and operators of Flores Home Health.
Flores Home Health was allegedly operated for the purpose of billing the Medicare program for, among other services, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.
From approximately October 2009 through approximately June 2012, Flores Home Health was paid approximately $8 million by Medicare for allegedly fraudulent claims for home health services.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by A. Brendan Stewart of the Criminal Division’s Fraud Section.
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,500 defendants who collectively have falsely billed the Medicare program for more than $5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mechanicsburg Man Sentenced for Tax EvasionRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that Thomas C. Holloway, age 46, of Mechanicsburg, Pennsylvania, was sentenced today by Chief U.S. District Court Judge Christopher C. Conner for attempted income tax evasion for 2008. Holloway was sentenced to six months in prison, six months home confinement and one year of supervised release. Judge Conner further ordered that $80,000 in restitution be paid to the IRS.
According to United States Attorney Peter J. Smith, Holloway previously was employed by Spherion (an IT firm based in Mechanicsburg and formerly known as Intellimark and Technisource) between 2001 and 2009 and he embezzled company funds which were not reported on his income tax returns. Holloway previously was charged by local authorities with theft by deception in connection with the embezzlements and was sentenced in 2010 in state court to probation and ordered to pay $125,000 in restitution to Spherion. The current tax charges allege that the tax loss to the IRS was $80,000 for the years 2003-2009.
The case was investigated by the Criminal Investigation Division of the IRS and was prosecuted by Senior Litigation Counsel Bruce Brandler.
****Marshall County Man Charged with Sexual Exploitation of A MinorRead the Press Release
Peoria, Ill. — A federal grand jury has returned an indictment that charges Brian A. Miller, 35, of Varna, Ill., with 25 counts of sexual exploitation of a minor. The indictment, returned late yesterday, also seeks the criminal forfeiture of Miller’s cell phone and data storage device, alleging that said items were used in the commission of the alleged offenses and that the equipment was manufactured and transported in interstate and foreign commerce.
Miller was previously arrested and charged with one count of the same offense in a criminal complaint filed Aug. 29, 2013. At a hearing on Sept. 9, before U.S. Magistrate Judge John A. Gorman, Miller waived his detention hearing and was ordered to remain detained in the custody of the U.S. Marshals Service.
The affidavit filed in support of the criminal complaint alleges that Miller used a cell phone to take images of minors from a hole in the wall of his home while the minors were using a shower. The indictment returned today alleges that from about Jan. 1, 2010 through June 16, 2012, on 25 occasions, Miller used minors to produce images of child pornography.
If convicted, the statutory penalty for sexual exploitation of a minor in the production of child pornography is not less than 15 years in prison and up to 30 years in prison. The offense also carries a term of supervised release of up to life following any term of imprisonment.
The charge is the result of an investigation by the U.S. Secret Service; the Marshall County Sheriff’s Office, the Peoria County Sheriff’s Office and the Bloomington Police Department. Assistant U.S. Attorney Kirk D. Schoenbein is prosecuting the case.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Manhattan U.S. Attorney and FBI Announce Charges Against New York Accountant in Connection with the Fraud at Bernard L. Madoff Investment SecuritiesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Cheryl Garcia, the Acting Special Agent-in-Charge for the New York Regional Office of the U.S. Department of Labor’s Office of the Inspector General, Office of Labor Racketeering and Fraud Investigations (“DOL-OIG”), and Jonathan Kay, the Regional Director for the New York Regional Office of the United States Department of Labor, Employee Benefits Security Administration (“DOL-EBSA”) announced that PAUL J. KONIGSBERG was arrested today for his role in the scheme to falsify books and records at Bernard L. Madoff Investment Securities (“Madoff Securities”), through which Bernard L. Madoff ran his multibillion-dollar Ponzi scheme. KONIGSBERG was also charged in connection with his role in creating a fictitious, no-show job through which a co-conspirator received hundreds of thousands of dollars in compensation from Madoff. KONIGSBERG was presented in Manhattan federal court this afternoon.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Paul Konigsberg threw aside his ethical duties as an accountant in favor of his role as a false bookkeeper, which included allegedly participating in a scheme of back-dating client account statements to show fictitious trades and conjuring profits and losses of millions of dollars. With today’s indictment, he will be made to answer for his alleged conduct as yet another player on Madoff’s team.”
FBI Assistant Director-in-Charge George Venizelos said: “Sadly, as is often the case in a financial fraud, there was someone to help ‘cook the books’ in the Madoff scheme. Paul Konigsberg was arrested by FBI agents for his alleged role in the multibillion-dollar Ponzi scheme run by Bernard Madoff. Konigsberg allegedly falsified books and records and created a no-show job so a co-conspirator could receive thousands of dollars in compensation. The FBI will continue to investigate and arrest those involved with the Madoff scheme in an attempt to bring some justice to the victims of this devastating fraud.”
DOL-OIG Acting Special Agent-in-Charge Cheryl Garcia said: “Today’s arrest highlights our commitment to work with our law enforcement partners to investigate those who allegedly defraud employee benefit plans and seek to conceal their crimes by falsifying documents required by the Employee Retirement Income Security Act.”
DOL-EBSA New York Regional Director Jonathan Kay said: “Accurate reporting is an essential part of maintaining employee benefit plan integrity. EBSA’s efforts in this case exemplify our commitment to protecting employee benefits and working in coordination with fellow federal agencies.”
In a separate action, the United States Securities and Exchange Commission (“SEC”) announced civil charges against KONIGSBERG.
According to a superseding indictment unsealed today in Manhattan federal court:
KONIGSBERG, a lawyer and Certified Public Accountant, was the senior tax partner of Konigsberg Wolf & Co., P.C. (“Konigsberg Wolf”) and a minority shareholder of Madoff Securities International Limited (“Madoff International”), Madoff’s London-based affiliate. KONIGSBERG was the only person outside of the Madoff family to hold an ownership interest in either Madoff Securities or Madoff International.
Beginning in at least the early 1990s, Madoff began to steer many of his investors towards KONIGSBERG’s accounting practice, particularly certain long-time investors in whose accounts Madoff executed the most glaringly fraudulent transactions. By December 2008, when Madoff’s scheme collapsed, Konigsberg Wolf provided accounting services in connection with more than approximately 300 Madoff Securities accounts. As their accountant, KONIGSBERG typically received duplicate copies of his client’s Madoff Securities account statements, and sometimes the only copy.
After the death of one long-time Madoff client – who had recruited investors and had been promised by Madoff corresponding annual commission payments in the form of guaranteed returns – Madoff encouraged the client’s widow to use KONIGSBERG as her accountant. KONIGSBERG, Madoff, and Frank DiPascali, Jr. – who pled guilty for his role in the fraud and is cooperating with the Government – agreed on an investment “strategy” for the widow’s account. Under the “strategy,” the widow’s money would be “invested” in United States Treasury bonds and cash equivalents for the first 11 months of each year, and then in December, DiPascali would fabricate back-dated options trades in order to generate the promised returns. For instance, one of the widow’s accounts was invested in Treasuries and money market funds in January through November of 2003, resulting in net equity at the end of November 2003 of approximately $860,000. In January 2004, however, DiPascali back-dated fake options trades purportedly executed in December 2003 to generate an additional approximately $825,000, nearly doubling the value of the account. Each December, over the course of several years, KONIGSBERG spoke with DiPascali to ensure that DiPascali arranged for the back-dated trades necessary to ensure the widow’s promised returns.
Similarly, in May 2003, KONIGSBERG requested that another co-conspirator who worked at Madoff Securities (“CC-1”) create back-dated trades in a second client’s account, retroactive to December 2002, in order to generate losses for tax purposes. A Madoff Securities worksheet reflecting the specific composition of the back-dated trades bears the notation “Paul OK’d this,” and an associated note reads, “Jan losses were for 2002 Tax & were put on in May 2003.” The Madoff Securities computer system confirms that in May 2003, CC-1 back-dated the precise trades that “Paul OK’d” to December 2002.
From time to time, moreover, Madoff “amended” the holdings of certain of his oldest clients, replacing statements reflecting one set of securities with revised statements, for the exact same time period, reflecting entirely different holdings and values. Because the existence of multiple, vastly different account statements for the same time risked exposing the fraud, Madoff could only ask certain trusted clients to return their statements in favor of the “amended” ones. Because KONIGSBERG serviced many of Madoff’s most important accounts, he frequently returned statements in favor of the “amended” ones. For example, in late 2002 or early 2003, KONIGSBERG sent back an entire year’s worth of statements for one client in favor of new ones. The new statements reflected millions of dollars in additional profitable trading activity for the client. Likewise, in 2008, KONIGSBERG sent back several months’ worth of statements for a different client, in favor of new ones reflecting millions of dollars in losses.
In addition to being paid for his accounting services by the dozens of clients referred to him by Madoff, for over a decade, KONIGSBERG also received payments directly from Madoff Securities of approximately $15,000 to $25,000 per month for KONIGSBERG’S work in connection with one client in particular. That client, one of Madoff’s oldest and largest, deposited and withdrew tens of billions of dollars into Madoff Securities over the years, and Madoff executed glaringly fraudulent trades in his accounts, such as back-dating an entire year’s worth of statements into accounts that did not previously exist.
Beginning in approximately 1992, Madoff offered KONISBERG, the defendant, an additional cash payment of approximately $20,000 per year. Rather than receiving this money in the form of trading profits, KONIGSBERG instructed Madoff to pay a relative of KONIGSBERG’s (“CC-2”), who had previously worked at Madoff Securities. CC-2 received salary, health, and retirement benefits from Madoff Securities, despite the fact that in recent years CC-2 earned hundreds of thousands of dollars at an overseas hedge fund. Between approximately 1992 until December 2008, CC-2 received more than approximately $320,000 in cash compensation on account of CC-2’s “no show” job at Madoff Securities, plus health and retirement benefits to which CC-2 was not entitled.
KONIGSBERG, 77, was arrested in New York, New York. He is charged in two counts of conspiracy, one count of falsifying the books and records of a broker-dealer, one count of falsifying the books and records of an investment advisor, and one count of making false statements in a document required to be kept by ERISA. He faces a maximum sentence of 40 years in prison. He is also subject to mandatory restitution and criminal forfeiture, and faces criminal fines up to twice the gross gain or loss derived from the offense.
Mr. Bharara praised the work of the FBI, the DOL, and the Internal Revenue Service – Criminal Investigation. He also thanked the SEC.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which U.S. Attorney Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov .
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Matthew L. Schwartz, Randall W. Jackson, John T. Zach, and Christopher D. Frey are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Paul Konigsberg S11 Indictment
Local Chiropractor Pleads Guilty to Fraudulent Billing ClaimsRead the Press Release
Springfield, Ill. –Christopher Leone, owner of Leone Family Chiropractic, 1019 S. 6th Street, Springfield, Ill., today waived indictment and pleaded guilty to submitting fraudulent bills for services to private insurance companies and the Medicare program. Leone appeared today before U.S. Magistrate Judge Byron G. Cudmore. Sentencing is scheduled on Feb. 3, 2014, before U.S. District Judge Sue E. Myerscough. Leone has agreed to pay restitution in the amount of $48,624 on or before the sentencing hearing.
Leone, 41, is the owner of C.D. Leone Chiropractic, P.C., doing business as Leone Family Chiropractic. Leone was directly responsible and in control of the practice’s business aspects, including billing patients and the submission of claims for services to insurance companies, when the fraudulent claims were submitted. The business specializes in chiropractic treatment for the spine and nervous system and also offers other wellness treatments, including physical therapy.
Beginning in about 2005 to February 2011, Leone admitted he billed private insurance companies for a total of approximately $48,624 and the Medicare program for services specifically coded for physical therapy that required the physician or therapist have direct (one-on-one) patient contact. Leone admitted that neither he nor a therapist had direct patient contact, and in fact, the patients performed all physical therapy treatment on their own without any supervision by Leone or any other employee.
The Illinois State Police, Medicaid Fraud Control Bureau, and the Federal Bureau of Investigation conducted the investigation. The government is represented by Assistant U.S. Attorney Patrick D. Hansen.
For the offense of submitting false demands for payment against the United States of less than $1,000, the penalty is up to one year in prison and a fine of up to $100,000. The defendant may also be required to pay restitution to victims of the offense.
Justice Department Resolves Citizenship Status Discrimination <br /> Charge Against Pennsylvania Employer Huber NurseriesRead the Press Release
The Justice Department announced today that it has reached a settlement agreement with Huber Nurseries, based in Manheim, Pa., resolving allegations that Huber engaged in citizenship status discrimination by preferring to hire temporary visa holders over recent lawful permanent residents from Nepal. The underlying charge was filed by Philadelphia Legal Assistance on behalf of the lawful permanent residents.
The Department of Justice investigation was initiated on Aug. 15, 2012 when six lawful permanent residents from Nepal were denied employment by the Pennsylvania nursery. The department concluded that Huber unlawfully preferred to hire twelve foreign national workers under the H-2A visa program and subjected the U.S. workers to different selection standards and increased scrutiny. The H-2A temporary agricultural program allows agricultural employers who anticipate a shortage of domestic workers to bring nonimmigrant foreign workers to the U.S. to perform temporary agricultural work. The Immigration and Nationality Act (INA) generally prohibits employers from refusing to hire protected workers, including U.S. citizens, certain lawful permanent residents, refugees and asylees, based on their citizenship status.
Under the terms of the settlement, Huber has agreed to pay $2,250 in civil penalties to the United States and $59,617 in back pay to the six injured parties, who are former refugees. Huber has also agreed to provide its human resources personnel with training on the anti-discrimination requirements of the INA, adopt nondiscrimination policies with respect to recruitment and hiring and maintain and submit records to the Department of Justice for the one-year term of the agreement. Trial Attorney Richard Crespo represented the Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) in this matter.
“Work-authorized individuals should not be denied access to jobs because of unlawful discrimination on the basis of immigration status or national origin," said Jocelyn Samuels, Acting Assistant Attorney General for the Justice Department’s Civil Rights Division. "We are pleased to have reached a settlement with Huber and look forward to continuing to work with employers to educate them about anti-discrimination protections and employer obligations under the law."
OSC is responsible for enforcing the anti-discrimination provision of the INA. For more information about protections against employment discrimination under the immigration laws, or to report a possible violation, call the OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired), call the OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired), sign up for a free webinar at www.justice.gov/about/osc/webinars.php , email [email protected] or visit the website at www.justice.gov/crt/about/osc .
Justice Department Reaches Settlement with Southport Bank to Resolve Allegations of Mortgage Lending DiscriminationRead the Press Release
The Justice Department announced today that Southport Bank of Kenosha, Wis., will pay $687,000 to African-American and Hispanic wholesale mortgage borrowers as part of a settlement to resolve allegations that it engaged in a pattern or practice of discrimination on the basis of race and national origin.
The settlement, which is subject to court approval, was filed in conjunction with the Department’s complaint in the U.S. District Court for the Eastern District of Wisconsin. The complaint alleges that Southport charged hundreds of African-American and Hispanic borrowers higher fees than white borrowers on wholesale mortgage loans in violation of the Fair Housing Act (FHA) and Equal Credit Opportunity Act (ECOA). Southport cooperated fully with the Department’s investigation into its lending practices and agreed to settle this matter without contested litigation.
The lawsuit originated from a 2012 referral by the Federal Deposit Insurance Corporation (FDIC) to the Justice Department’s Civil Rights Division. Southport is regulated by the FDIC.
The proceeds of the settlement will be used to compensate the African-American and Hispanic victims of Southport’s alleged discrimination. Under the proposed settlement, a list of individual victims will be identified by the United States. The settlement requires borrowers who are eligible for compensation to be notified by the bank and provides for monitoring of the compensation process by the department.
Southport is not currently engaged in the business of wholesale home mortgage lending, but the settlement provides that if it re-enters that business, the bank will implement policies, practices and monitoring designed to prevent and detect potential fair lending violations.
“Discrimination on the basis of race and national origin in the extension of credit, including by wholesale lenders, must be eliminated,” said Jocelyn Samuels, Acting Assistant Attorney General for the Justice Department’s Civil Rights Division. “We commend Southport for working cooperatively with the Justice Department in reaching an appropriate resolution of this case.”
“The United States Department of Justice, through both the Civil Rights Division and my office, remains steadfast in its commitment to identifying, investigating, and addressing patterns and practices of racial and national origin bias in the extension and management of mortgage loans” said James L. Santelle, U.S. Attorney for the Eastern District of Wisconsin. “ As reflected by today’s settlement, we are animated not only by the all-important mandates of the Fair Housing Act and the Equal Credit Opportunity Act but also by our much-related interest in ensuring that all Americans are afforded economic opportunities and financial options in this most basic aspect of life—housing. I join the Assistant Attorney General in recognizing the leadership of the Southport Bank of Kenosha for their cooperation in accomplishing this settlement that compensates members of our African-American and Hispanic communities for the discrimination that they suffered.”
The Justice Department’s enforcement of fair lending laws is conducted by the Fair Lending Unit of the Housing and Civil Enforcement Section in the Civil Rights Division. Since the Fair Lending Unit was established in February 2010, it has filed or resolved 26 lending matters under the FHA, ECOA and the Servicemembers Civil Relief Act. The settlements in these matters provide for a minimum of $660 million in monetary relief for impacted communities and more than 300,000 individual borrowers. The Attorney General’s annual reports to Congress subject to ECOA highlight the department’s accomplishments in fair lending and are available at www.justice.gov/crt/publications/ .
The Civil Rights Division, the U.S. Attorney’s Office for the Eastern District of Wisconsin, and the FDIC are members of the Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information on the task force, visit http://www.stopfraud.gov/ .
A copy of the complaint, as well as additional information about fair lending enforcement by the Justice Department, can be obtained from the Justice Department’s website at http://www.justice.gov/fairhousing.
Justice Department Grant Awarded to Continue Anti-Violence Efforts in SeattleRead the Press Release
An innovative partnership led by the U.S. Attorney’s Office was awarded nearly $500,000 from the Department of Justice to continue efforts to combat gun violence in Seattle, announced U.S. Attorney Jenny A. Durkan. The two-year Project Safe Neighborhoods grant will support a comprehensive strategy to reduce gun crimes, work with at-risk youth, bolster re-entry efforts, and improve data gathering in the East and Southeast police precincts. The U.S. Attorney’s Office will lead a partnership of the King County Prosecuting Attorney’s Office, Seattle Police Department (SPD), Seattle Neighborhood Group, South Seattle Community College, Washington Association of Sheriffs and Police Chiefs, and research partner Michelle Maike.
“We must join together and use all tools to reduce gun violence in neighborhoods that have experienced far too much of it,” said U.S. Attorney Durkan. “That means supporting prevention efforts for at-risk youth, giving those re-entering our neighborhoods skills and support, and continuing our emphasis on prosecuting gun-related crimes. We are moving forward with proven community strategies, critical law enforcement support and extensive data gathering to keep our communities safe.”
The grant funding announced today will continue to fund a Senior Deputy King County Prosecutor to act as a Special Assistant U.S. Attorney, reviewing and prosecuting firearms-related cases. The grant also provides $90,000 for four youth prevention and intervention programs developed by Seattle Neighborhood Group. The programs include a chess club run by SPD Detective Denise “Cookie” Bouldin, a youth-run record label, an urban writing project for teens, and a boxing program developed by a former gang member. The grant also provides $90,000 to South Seattle Community College to provide life skills training, workforce development and other education programs to ex-offenders returning to the target neighborhoods.
Additional funding is aimed at gathering data on the programs and evaluating which strategies are working. SPD will receive $20,000 for its crime analysis unit to purchase new equipment and gather data for the program. An experienced researcher, Michelle Maike, will receive $100,000 to analyze the data and help develop new strategies to combat gun violence. Additionally, $30,000 is targeted towards raising public awareness of the anti-crime efforts in impacted neighborhoods. The Washington Association of Sheriffs and Police Chiefs will help administer the grant.
Jury Convicts Defendant in $25 Million Fraud SchemeRead the Press Release
Defendant Claimed to be a Fortune Teller and Spiritual Adviser
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation, (IRS-CI), Frank Adderly, Chief, Fort Lauderdale Police Department, and Paula Reid, Special Agent in Charge, U.S. Secret Service, Miami Field Office, announce that a Fort Lauderdale federal jury found Rose Marks, 62, of Fort Lauderdale, Florida and New York, New York, guilty of all counts charged in connection with a $25 million fraud scheme.
More specifically, after a month-long trial, the jury convicted Rose Marks of all 14 counts in an indictment which charged conspiracy to commit mail fraud and wire fraud (18 U.S.C. ' 1349), mail fraud (18 U.S.C. ' 1341), wire fraud (18 U.S.C. ' 1343), conspiracy to commit money laundering and money laundering (18 U.S.C. ' 1956 and 1957), and filing false income tax returns (26 U.S.C. ' 7206). At sentencing, the defendant faces a maximum statutory term of 20 years in prison for each of the mail, wire fraud and conspiracy counts, 10 years for the money laundering counts and three years in prison for each of the tax counts, as well as mandatory restitution and possible fines.
Rose Marks was taken into custody after the verdict was returned. Sentencing is scheduled for December 9, 2013 at 3:30 p.m. before U.S. District Judge Kenneth A. Marra in West Palm Beach.
On August 16, 2011, a multi-count indictment was unsealed charging Rose Marks and nine other defendants with conspiracy to commit mail fraud and wire fraud (18 U.S.C. ' 1349), mail fraud (18 U.S.C. ' 1341), wire fraud (18 U.S.C. ' 1343), and money laundering conspiracy (18 U.S.C. ' 1956). The indictment, the result of “Operation Crystal Ball,” focused on a group of individuals, all family members, claiming to be fortune tellers, psychic readers and spiritual advisors. In reality, however, these individuals defrauded more than twenty victims out of $25 million.
According to the evidence at trial, Rose Marks and her co-conspirators held themselves out as fortune tellers, clairvoyants and spiritual advisers. In this way, they falsely represented to their victims that they could remove purported curses or negativity from their lives or that of their loved ones. Rose Marks and her co-conspirators claimed that these curses were the cause of illnesses, family problems, marital and relationship issues and other difficulties faced by their victims.
The evidence and testimony presented at trial showed that to execute the scheme, Rose Marks and her co-conspirators used magic tricks and false statements to induce their victims to give them large sums of money and other valuables, including jewelry and gold coins, to be “sacrificed” and “cleansed” of negativity. The defendants told victims that the money would be used for the “work”, which included meditation and prayer, and that they and their family would continue to suffer terrible consequences, unless the money and valuables was “cleansed.” Although the defendants promised to return the victims’ money and valuables when the “work” was completed, the defendants deposited the victims’ funds into bank accounts they controlled and used the money to pay for their personal expenses and promote their lifestyle.
The following defendants have entered guilty pleas and are awaiting sentencing in connection with the August 16, 2011, Indictment:
Vivian Marks, of Fort Lauderdale, Florida; pled guilty on 2/8/2013; Sentencing is set for 10/7/2013 at 1:30 p.m. in West Palm Beach, Florida.
Ricky Marks, of Fort Lauderdale, Florida and New York, New York; pled guilty on 3/12/2013; sentencing is set for 10/7/2013 1:30 p.m. in West Palm Beach, Florida.
Michael Marks, of Fort Lauderdale, Florida; pled guilty on 11/28/2012; sentencing is set for 10/7/2013 at 1:30 p.m. in West Palm Beach, Florida.
Victoria Eli, of Fort Lauderdale, Florida and Secaucus, New Jersey; pled guilty on 3/15/2013; sentencing is set for 11/4/2013 at 1:30 p.m. in West Palm Beach, Florida.
Nancy Marks, of Fort Lauderdale, Florida and New York, New York; pled guilty on 3/14/2013; sentencing is set for 12/2/2013 at 10:00 a.m. in West Palm Beach, Florida.
Rosie Marks, of Fort Lauderdale, Florida; pled guilty on 2/8/2013; sentencing is set for 12/2/2013 at 10:00 a.m. in West Palm Beach, Florida.
Cynthia Miller, of Fort Lauderdale, Florida; pled guilty on 3/15/2013; sentencing is set for 12/2/2013 at 10:00 a.m. in West Palm Beach, Florida.
Donnie Eli, of Fort Lauderdale, Florida and New York, New York; pled guilty on 2/08/2013; sentencing is set for 12/2/2013 at 10:00 a.m. in West Palm Beach, Florida.Mr. Ferrer commended the investigative efforts of IRS-CI, the Fort Lauderdale Police Department and U.S. Secret Service. This case is being handled by Assistant U.S. Attorneys Roger Stefin and Laurence Bardfeld.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.